#MoneyArth

The young, educated, healthy well-off and non-smokers get better term covers than older, less educated, low-earning and smokers Buy term. You must have read this a million times in these pages. If you are looking for a life insurance policy to protect your family against your untimely death, then the only product type to buy is a term insurance plan. But it may not be that easy to buy it. There are three possibilities that may play out when you try to: you may have to undergo additional medical tests or submit more documents, you may have to pay a higher premium, or in the worst case be denied insurance altogether. Several things determine your experience of buying a term policy. The important ones can be broadly categorized under health, income, educational qualifications and occupation. We tell you how you are assessed on these parameters. Your health status Insurance is the business of covering risks and for that the insurers charge a premium. To do this, it's i...

The only way to go about insuring oneself is to calculate how much cover you need and then find a good, low-cost, term insurance that covers you for that amount When faced with the prospect of figuring out how much insurance to buy, most people pluck a figure out of the air--something that just seems adequate. Or another most common practice is to rely on insurance agents to decide a policy and sum assured. This is obviously not the way to make this important decision. The only reasonable way of making this decision is to unemotionally create a financial plan that your family should follow if you die suddenly. Families also have to consider the impact of both parents passing away in an accident. The impact of such a tragedy could be greater than just the sum of two deaths occurring separately. Here are some heads to consider. Time left to retirement:  Before buying any term insurance plan, an individual must assess time left to retire and a sufficient sum assured. Time r...

Pradhan Mantri Vaya Vandana Yojana is Pension plan for Senior citizen announced by Government of India. This plan is government subsidized pension scheme which will avail guaranteed 8% return in monthly mode and 8.3% return in yearly mode. This plan plan can be purchased from LIC up to 03-05-2018. Plan Parameters Age at Entry 60 Years (Completed)  Maximum Age at Entry No Limit Policy Term 10 Years (Fixed) Pension Receiving Mode Monthly, Quarterly, Half Yearly or Yearly Pension benefit Pensioner will receive pension amount as per selected mode. Pension will be available on completion of selected mode, for example, in case of monthly mode, pension will be paid on completion of month. This plan can be purchsed on payment of single one time amount, the minimum and maximum limit of one time lumpsum amount is given in the following table Mode Minimum Maximum Amount Pension Amount Pension Yearly 1,44,578 12,000 7,22,892 60,000 Half Yearly 1,47,601 6,000 7,3...

Why investing is good for you? In today’s world just earning money is not enough and investments play a very important role in how you’re planning to shape your future. While an individual may be working hard to earn money but that might not be adequate to lead a comfortable lifestyle or fulfill dreams in future if there is no growth of the money earned. Thus, to achieve your dreams and make your money work for you, you invest. What is the difference between saving and investing? We have always heard the proverb “a penny saved is a penny earned”. These words ideally define saving money. Saving allows you to cut down on expenses that are irrelevant and put that money to use for a later purpose. Typically, people tend to save money to pay hefty educational expenses of their children or for a planned vacation or new automobiles etc. While saving money can undoubtedly allow you to achieve your goal but one thing that is not paid too much heed is that “ In saving, an indivi...

RBI maintains status quo; surprise with a downward revision of inflation The Monetary Policy Committee (MPC) of the Reserve Bank of India, in its first bi-monthly policy meeting of fiscal 2018-19, kept the repo rate unchanged at 6 percent. While five out of six members supported the decision, one voted for a 25 bps hike. The decision was in line with the neutral stance of the policy with the objective to control inflation (marked by consumer price index (CPI)) at 4% within a band of +/- 2% and equally supporting growth. The decision of maintaining status quo was based on the uncertainty surrounded around the inflation trajectory due to 1) revision in minimum support price (MSP), 2) revision in house rent allowance (HRA), 3) fiscal slippages and monsoon. The decision of MPC was in line with the street expectation, however, the RBI left the participants with a surprise when it downward revised its inflation outlook for fiscal 2018. The downward revision in inflation was supp...

What is Rule 72? In personal finance, if you divide the number 72 by the rate of interest, you get to know the number of years it will take for you to double the money.. Eg: if the rate of interest is 9%, simply divide the number 72 by 9% and the answer is 8. Thus it will take 8 years to double your money if you invest at 9% p.a. rate of interest. INTEREST: We can use this rule in reverse to know the rate of interest needed to double your money to achieve your set goal. Eg: If you have 250k today and you need 500k in 5 years. Just divide the number 72 by 5, the answer is 14.41%. Thus you need a type of investment avenue, where you earn at least 14.41% p.a. as rate of interest/returns to double your investment amount in 5 years. INFLATION: This 'Rule 72' helps you to understand about inflation also. It helps you to calculate the amount of time it will take for inflation to make the real value of money half. Let's say present inflation is 5.5%. When you divide ...