Do you want to invest a part of your salary in financial instruments? However, before that, have you considered investing in term insurance plans? If no, then you should seriously give it a thought.

A term insurance plan lays the foundation of any successful investment portfolio. Many young professionals refrain from investing in life insurance, as they have little or no responsibility on their shoulders. If you are one of them, then you are making a big mistake. There are numerous advantages of investing in term plans from an early phase of life. These include:

• Straightforward insurance policy

Term plans are easy-to-understand. They are a simple type of life insurance plan, as they purely provide life protection for a specific duration at an affordable premium. As there is no investment component involved in a term plan, it becomes easier for you to understand its terms and conditions. A term insurance plan secures your family’s financial future against the uncertainties of life. In the case of an untoward incident during the policy tenure, the insurer is liable to pay the death benefit (sum assured) to your family members. Here, there are no maturity benefits unless you have purchased term insurance with a return of premium (TROP). Another plus point of a term plan is that one can buy it at the young age of 18, and the maximum age limit is 65.

• Economical premium

A term plan comes at a pocket-friendly cost. When compared to any other type of insurance policy, the term insurance premium is the lowest. Besides this, when you invest in a term plan at a younger age, you get it at a nominal rate viz-a-viz an older policyholder. It is because during this phase of life you are healthy, and the risk of mortality is significantly low. Also, there is a lower probability of having life-threatening diseases like diabetes, high blood pressure, and cardiovascular diseases. Additionally, the term plan’s premium remains the same throughout the period of the policy. So, if you start at an early age, you can save a large sum on the premium in the long run.

• Tax exemptions

The term insurance tax benefit is another reason why you should invest in it. Here, you can get a deduction of up to INR 1.5 lakh per annum for the premium you pay towards your term plan under Section 80C of the Income Tax Act, 1961. So, you must invest in a policy when you are young to avail of this term insurance tax benefit for a longer duration. Moreover, the sum assured that your family members receive in case of an unfortunate event is tax-free as per Section 10(10D) of the Act.

• Availability of riders

Term plans offer various riders like critical illness cover, accidental death benefit, income rider, the waiver of premium, and permanent disability, among others to widen the scope of your coverage. Though you have to pay supplementary charges for these riders, they are worth every penny. Therefore, it becomes crucial to opt for riders that can meet your needs.

Today, it is quite convenient to buy a term plan. You can purchase it online from the comfort of your home. By opting for this mode, you end up paying a much cheaper premium compared to buying a policy through an agent. This is because the insurer eliminates the agent’s commission and passes on this benefit to you in the form of a discounted premium. If you are looking for an ideal term plan, you can take the assistance of an online term insurance calculator. It enables you to compare the premiums of various plans based on the factors like your age, tenure, and the sum assured.

Now that you have understood the importance of having a term plan, invest in it without any further delay. By making this decision, you will ensure that your family has a large sum assured when you are not there to take care of them.

 

The person who can spend more time in the trading field chooses day trading. Here, people get the chance to make more money, but this is also risky. Investors should learn to control their emotions as they are required to make a quick decision. In the trading field, if you are unable to understand the situation, it is not possible to make a quick decision. There are four steps for becoming a day trader which are being discussed here.

Prepare Yourself

Every trader should invest time in preparing themselves. When the person will be able to improve the necessary abilities, it will be possible to become successful. Investors should try to focus on developing the necessary traits to gain the rewards, Most of the time, the investors cannot be able to recognize the trends because of the lack of knowledge. The person should know about the technical analysis to operate the trading activity properly. If you cannot be able to allocate the time properly for the activities, it is not possible to take good preparation. When the person is prepared enough, he will not face any problems to a swift decision.

The self-learning process will help to improve trading performance. To do this, people should focus on developing a good routine which will help to maintain regularity. People can gain knowledge from books and some online resources. But, it is necessary to check the authenticity of the information.

Implement the Strategy Properly

Investors should learn to implement the strategy. When the person will be able to stick to the plan, it will be easy to carry out the trading process properly. The plan will help to determine the appropriate entry and exit points. People should open and close the position at the correct time to make money. If you do not be able to maintain the discipline, there are no benefits of making a fruitful plan. Always try to learn from the experienced traders at Saxo Bank group. It will definitely help you to formulate your trading strategy.

People should give proper concentration on developing a better plan and increase the discipline level. Investors should trail the plan in the virtual field if they want to sure about this. Without ensuring affordability, it will be the wrong decision to apply the plan in the real market. If the strategy provides a better result in the market, it will be applicable in the real field. This will also help to build the confidence level and do a better performance.

Control Emotions

Without controlling the emotions, it is not possible to make a better decision. People should take some necessary steps for controlling emotions. When the person will be able to deal with the negative sentimental issues, it will be easy to control the situation. In day trading, people try to do overtrading. So, when the person will fall into the trap of overtrading, it is not possible to secure the money. That’s why the investors should determine how many trades they will do every day and they should not cross the limit. Because of excessive greed, people make mistakes in day trading. Investors should remove this from the mind.

Start Small

If you try to make a large profit instantly, you will face failure. People should focus on making small profits in the initial stage. When they will be experienced, they should try to expand their portfolio. People should aware of co-related assets. Without gaining proper experience, it is not possible to handle a critical situation. If the person is unable to secure the account balance, he will fail to go in the long run. In day trading, the cost is high. So, people should contemplate this fact before opening a new position.

Day traders should not ignore fundamental analysis as it is necessary to up to date with the market. The person is also required to choose the right broker for doing the transaction process smoothly which will help to become successful.

 

February is the depth of winter for most people. So if you’re spending the cold month inside, staving off boredom, why not get your financial affairs in order. Below are a few tips to help you get through the harsh weather and figure out your finances.

Get An Early Jump On Your Taxes

Most tax experts suggest filing early. One of the main benefits to that is if you’re owed a refund, you’ll receive it earlier. Of course the other benefit is also a bit of a drawback; if you owe the IRS money and you file your taxes early, you still have to pay the IRS. However, you will have the maximum amount of time to figure out how to pay them. Because there have been many tax law changes in the recent past and because this past year in particular will be tricky to navigate, it’s recommended to use a professional. If you don’t have an accountant, check in with your financial planner Orlando for some high quality recommendations.

Pay Down Holiday Debt

Interest rates are on the rise again so it’s becoming more expensive to carry credit card debt. If you haven’t paid off your holiday gifts yet, you should do so quickly. If you struggle with debt like this in general, try to make multiple monthly payments on your cards. Many people don’t realize that credit card companies will accept more than just one payment a month. Secondly, look for a lower interest rate. Most companies offer a 0% transfer rate which means it won’t cost anything to move your debt to a new card with a lower interest rate. A strategic move like that could wind up saving you a bundle.

Check Your Credit Report

Now, nationwide credit reporting companies are required by law to provide you with a free copy of your credit score, upon request, once a year. It is often suggested to order a credit report from a different major credit bureau once a quarter. This will allow you to monitor your credit multiple times per year, for free. Your credit card affects your interest rates on your largest purchases, so it’s very important you track your score and know where you stand.

Spend Some Money

Spend some money–some being the operative word though. We are always so focused on saving money, but spending money wisely is almost just as good. According to Consumer Report experts, February is the month that tends to have the lowest prices on thousands of items. If you’re able to shop in “off-seasons” like February, you will find you’ll have everything you need and you will have saved money acquiring those goods, as well.

Strengthen your financial habits in february, and create a good healthy financial start to your year.

 

Investing in a life insurance policy is the most common way to provide financial security to your family in your absence. Life insurance pays the policy benefits to your nominees if an unfortunate event occurs during its duration.

Traditional life insurance policies offer maturity or survival benefits. However, the premium for such policies is high and expensive for most people. Insurers also offer term plans, which are pure life covers available at an economical premium.

What is a term insurance plan?

It is a straightforward life plan that pays the benefits to your nominees if something untoward happens to you during the policy duration. Most term plans do not pay any survival or maturity benefits. So, the premium is lower compared to traditional life insurance policies.

Some term insurance policies offer a return of premium option. When you buy term insurance with return of premium, the insurer pays the entire amount paid at the end of the policy duration. However, the premium for these plans is higher than the amount paid for a regular term policy.

Differences between term insurance and traditional life insurance policies

Although both term and regular life insurance policies ensure financial security for your family in your absence, there are certain distinguishing factors between these two options. Here are three such points of comparison:

• Policy benefits

Your nominees get the term insurance benefits only in your absence during the policy duration. If you survive the policy period, most term plans do not pay any maturity or survival benefits.

On the other hand, regular life insurance policies pay the sum assured (SA) to your nominees if an untoward incident occurs during its duration. If you survive the policy period, you will receive the maturity benefits as per the terms and conditions of the plan.

• Premium cost

There are no term insurance benefits on maturity. As these plans are pure life covers, the premium is more affordable. This allows you to avail of a higher coverage at a lower premium, ensuring that your family is financially secured in your absence. You can easily opt for a higher SA based on their requirements and future financial goals, ensuring they do not face any liquidity constraints when you are not there to look after them.

In comparison, traditional life policies are costlier, and you may be unable to afford a higher SA. This may limit the benefits your family will receive if a tragic event occurs during the policy tenure.

An important consideration is that the premium of a term plan increases if you opt for a longer duration and age. However, the amount remains constant during the entire duration irrespective of the age and tenure when you buy a traditional life insurance policy.

• Policy duration

You can choose the term policy period based on your age and current and future monetary objectives. On the other hand, most traditional life policies have a minimum duration of five years and provide coverage for a longer period.

Things to consider while choosing the right life insurance policy

When you consider buying a life insurance policy, you must not simply think of it as an investment avenue or as a means to achieve your financial objectives or to save tax. You need to keep several other factors in mind. These include:

• Premium
• Maximum coverage
• Current liabilities
• Present financial situation
• Future financial objectives

There are several plus points of buying an online term plan, which includes lower premium, convenience, and quick process. Additionally, you can procure comprehensive coverage through riders, such as waiver of premium, permanent disability, critical illness, and accidental death benefits at a nominal cost.

Both term plans and traditional life insurance policies offer flexibility to pay the premium. You have the facility to pay it either monthly, quarterly, semi-annually, or annually according to your financial condition.

Mutual fund investments have taken a special place in investors hearts, especially those who are new to the investing world. This is because mutual funds are an excellent and convenient way of investing your money. These investment vehicles have proved time and again that they have the potential to generate significantly higher returns. This article serves as a mutual fund investment guide for all investors – new and old. Let’s start with the basics.

What are mutual funds?

A mutual fund is an investment vehicle where an AMC (asset management company) pools the capital of several investors. The pooled money is further invested in different securities such as stocks, bonds, money market instruments, etc. A fund manager professionally manages the fund and invests it in a myriad of investment options according to your financial portfolio. These fund managers are mutual fund experts that hold an in-depth understanding and knowledge of the volatile markets. In return, the fund houses charge a minimal expense ratio i.e., the annual maintenance fee to manage your mutual fund investments.

How to invest in mutual funds in a way that it best suits your financial needs?

Following are some of the points to be considered before you decide to invest in mutual funds online:

1. Investment goals
   Before deciding to invest, you need to evaluate your financial goals, risk appetite, and the investment tenure for which you desire to stay invested. An investment objective aids in determining the macro-level assortment of mutual fund schemes. Your investment tenure has the potential to have a contributory impact on your investment decisions.
2. Performance of the mutual fund scheme against a benchmark
   A benchmark index is a standard against which the performance and stock allocation of a particular mutual fund scheme is compared. It guides the investment philosophy of the scheme. Hence, the asset allocation of a benchmark index must match with the investment objective of the mutual fund.
3. Consistent returns
   An ideal mutual fund is the one that harvests, desirable, consistent, and significantly high returns over a period and not just whirlwind gains. It must be able to offer decent and consistent returns in both bullish and bearish markets.
4. Expense ratios
   An expense ratio is an important factor to consider as they have the potential to take away a considerable chunk of your earnings. A reasonable expense ratio is anywhere between 0.5 – 1.5%. Anything above 1.5% is usually considered as a high expense ratio. As a thumb rule of investing in mutual funds, the higher the asset under management (AUM), the lower will be the expense ratio, and higher will be the take home earnings.
5. Fund manager’s experience and expertise
   A fund manager plays a vital role in the performance of your mutual fund scheme. Although investing in mutual funds is a process-oriented approach, the fund manager has the final say. As a result, their view counts and experience should be accounted as well.

With different types of mutual funds available to individuals, you must remember that no single scheme or a set of schemes is suitable for everyone. So invest in mutual funds that best complement your portfolio. Happy investing!

 

You may think that the term plan that suits your friend or relative would work for you too. But your friend’s health and age may not be the same as you. And these crucial factors affect the policy’s cost. For you, the best plan would be the one that offers you the highest amount while charging you the lowest. Apart from that, there should be additional benefits like critical illness cover, waiver of premium, accidental death, income benefit, etc.

Because you have to keep so many things in mind, choosing a term plan could be challenging for you. However, if you are the only earning member of your family, have small children, and have loans to pay, investing in a term insurance plan would be beneficial. Below are the things you should consider before buying the term insurance.

What Should Be My Policy’s Term?

If you are in your late 20s or early 30s right now, buying a term plan for 50 years can be unnecessary. Ideally, you should invest in policy until retirement. This is because as you advance towards retirement, your family would be less dependent on you. By the time you turn 60, your kid would settle down, you would pay the loans, and may also have a few assets in your name. You can choose a decreasing term plan in this case, where you will have to pay a significantly low premium amount as the sum insured decreases with time.

Advertisements Show Per Day Premium, What Are They?

You would have seen numerous advertisements talking about per day premium, which could be as low as Rs. 25 per day for 1 crore sum insured. But you should know that these numbers are specific to certain age group, health conditions and policy’s tenure. This policy could be tailored for a person in 20s without any medical condition like blood sugar, blood pressure, etc. whose policy term is 40 years. So, you should know that your policy amount and premium are affected by your health, age, and tenure of the policy.

When Is The Right Time To Buy A Term Insurance Policy?

After you turn 18, you can buy a term plan at any age you wish to because there is no maximum limit. But it is advisable to invest in a policy early because you would get a pocket-friendly deal. Not only your sum insured would be high but also your premium would below. Also, when you are in your 20s or 30s, you have more responsibilities as compared to when you are in your 50s and above. A 30-year-old is likely to have a family of their own as well as loans on their head. They would require a large cover so that the future of their kids is secure. But that would not be the case with a 50-year-old person.

The Bottom Line

Before buying a term plan, you should be aware of how term insurance policies work and what factors affect your plan. This way, you would be able to take maximum advantage of the policy.