5 major insurance mistakes you must avoid

It is important to know the right details about your insurance policies while avoiding these mistakes, says Harjot Singh Narula.

Delaying your decision :

Deferring your insurance buying decision is the biggest mistake. The life insurance premium is directly proportional to the age of the applicant.

As your age advances, the premium you pay also increases because the risk in the life aggravates with the increase in age. Many of us think at the younger age, we don’t need a life insurance policy; it is for people who are older.

Life insurance policy bought at younger age offers you a financial protection along with lowest premium price. Also, the policy bought at an early stage provides you enhanced coverage for a longer duration at the same cost.

Therefore, it is prudent to buy a policy once you start earning and take a wise step towards financial planning. Delaying the decision will keep your loved ones exposed to the financial loss in the event of your untimely demise.

Starting early will also help you achieve your future financial goals with systematic payouts in terms of premium towards the life insurance policy.

Delaying your decision may prove to be an expensive gesture for you and your family members.

Assuming insurance is an expensive proposition

It is a mistake to assume that buying life insurance is not an affordable financial safety net. There are multiple categories of life insurance plans to meet specific needs and budgets, like term plans, child plans, unit linked insurance plans, retirement plans, etc.

The premium varies as per the benefits offered under each of these plans. If we talk about the pure form of life insurance product which is a term plan, it is the best cost effective plan which costs you premium equal to a cup of tea on a per day basis.

Term plan premiums are the cheapest as it offers death benefit only during the policy term and there is no maturity benefit if the policyholder survives the policy term.

You may take an initial step of buying a life insurance as per your budget and later increase your life cover with increase in income and considering your financial needs.

Focusing on price alone

Price or premium for buying a life insurance company certainly impacts your buying decision the most. But focusing on the price alone is another big mistake done by many.

There are other aspects like key features, key benefits, inbuilt benefits, terms & conditions, exclusions, brand value of the company, claim settlement ratio, additional benefits (riders), etc. which should also be considered before making a final decision.

Ignoring other parameters may give you inadequate coverage, which may not be sufficient to financially cover the loss in the event of a claim.

You may also compare the selected plans to find the best suited life insurance product for your family.

Relying solely on thumb rules

You must have heard about various thumb rules to determine your ideal sum assured which you should buy under the life insurance policy. It is usually said that one should buy sum assured equal to 10 to 12 times of your annual income. But different individuals having same annual income might have different sum assured requirement on the basis of following factors:

• Household expenses
• Number of dependants
• Future financial goals like accumulating funds for kids’ higher education or marriage, buying a house, retirement planning, etc.
• Assets which can be liquidated easily like gold, fixed deposits, cash reserves, etc.
• Existing loans and debts
• Existing life insurance coverage, if any, etc

Buying an inappropriate cover is also a big mistake: either it is being categorised as under-insured (buying a policy that pays less sum assured than required) or being over-insured (buying a policy that pays more sum assured than required).

You may also take help of various online calculators to reach the appropriate sum assured figure.

Not reading the fine print

Not reading the fine print of the policy before buying is another blunder people usually commit. Simply relying on what your agent told you about the policy is not correct.

It is important to read the terms and conditions of the policy before you make a final payment. Life insurance policy is a legal contract and is a long term financial instrument. The insurance company gives you free look period to assess your policy and if you are not satisfied with the policy, then you may get it cancelled during the free look period.

But cancelling a policy beyond the free look period is not possible.

So it is imperative to study the details of the policy through policy wordings or plan brochure. You may take help of financial experts to understand the nitty-gritty about the policy.

Conclusion

Buying a life insurance policy is an important financial decision. It is important to avoid the mistakes mentioned and buy the most suitable life insurance plan for your loved ones.

Buying a life insurance policy merely to save income tax will only serve your short run goal but in long run unsuitable policy will not serve any purpose. So don’t delay the important decision of buying a life insurance policy and secure your family for a bright financial tomorrow.

Shekhar's Tech -Nifty intraday 02/12/2016

			T1	T2	T-3	T-4	T-5
Buy at/above	8167.6	Targets:	8186.2	8208.8	8231.4	8254.1	8276.9
Stoploss Buy:	8145.1
			T-1	T-2	T-3	T-4	T-5
Sell at/below:	8145.1	Targets:	8126.6	8104.1	8081.6	8059.1	8036.7
Stoploss Sell:	8167.6

For latest update visit : https://www.facebook.com/ShekharTechnical/

Short 1st DONE

Long  1-DONE

Shekhar's Tech -Nifty intraday 01/12/2016

			T1	T2	T-3	T-4	T-5
Buy at/above	8281.0	Targets:	8299.6	8322.4	8345.2	8368.1	8390.9
Stoploss Buy:	8258.3
			T-1	T-2	T-3	T-4	T-5
Sell at/below:	8258.3	Targets:	8239.7	8217.0	8194.3	8171.7	8149.1
Stoploss Sell:	8281.0

For latest update visit : https://www.facebook.com/ShekharTechnical/

Short  1-DONE

Shekhar's Tech -Nifty intraday 30/11/2016

			T1	T2	T-3	T-4	T-5
Buy at/above	8190.3	Targets:	8208.8	8231.4	8254.1	8276.9	8299.6
Stoploss Buy:	8167.6
			T-1	T-2	T-3	T-4	T-5
Sell at/below:	8167.6	Targets:	8149.1	8126.6	8104.1	8081.6	8059.1
Stoploss Sell:	8190.3

For latest update visit : https://www.facebook.com/ShekharTechnical/

Long  1-DONE

Shekhar's Tech -Nifty intraday 29/11/2016

			T1	T2	T-3	T-4	T-5
Buy at/above	8190.3	Targets:	8208.8	8231.4	8254.1	8276.9	8299.6
Stoploss Buy:	8167.6
			T-1	T-2	T-3	T-4	T-5
Sell at/below:	8167.6	Targets:	8149.1	8126.6	8104.1	8081.6	8059.1
Stoploss Sell:	8190.3

For latest update visit : https://www.facebook.com/ShekharTechnical/

Long  1-DONE

Shekhar's Tech -Nifty intraday 01/12/2016

			T1	T2	T-3	T-4	T-5
Buy at/above	8579.4	Targets:	8598.3	8621.5	8644.7	8667.9	8691.2
Stoploss Buy:	8556.3
			T-1	T-2	T-3	T-4	T-5
Sell at/below:	8556.3	Targets:	8537.4	8514.3	8491.3	8468.2	8445.2
Stoploss Sell:	8579.4

For latest update visit : https://www.facebook.com/ShekharTechnical/

Short  1-DONE
2nd target DONE

Traders Thoughts most of time times :

Proud on OUR PM !!

Why FIIs want short-term capital gains to be scrapped

FIIs fear short-term capital gains would give rise to tax uncertainty and make their operations difficult, reports Pavan Burugula from Mumbai.

Abolishing the tax on short-term capital gains may provide a boost to capital markets and, in turn, help attract investment. Photograph: PTI Photo.

Foreign institutional investors (FIIs) have written to the finance ministry and the Securities and Exchange Board of India (Sebi) demanding that short-term capital gains be scrapped.

Instead, the FIIs want the government to impose higher securities transaction tax (STT) on their trades.

FIIs fear tax changes such as the re-negotiated double-tax avoidance agreement (DTAA) with Mauritius and implementation of general anti-avoidance rules (GAAR) -- both of which come into effect from April 1, 2017 -- could complicate things for them.

In their letter, reviewed by Business Standard, the FIIs said short-term capital gains would give rise to tax uncertainty and make their operations difficult. Although overseas investors based out of tax-friendly jurisdictions can still avoid short-term capital gains, legal experts say the wide reach of GAAR could still bring taxmen’s lens on such transactions.

The letter written by FII lobby Asia Securities Industry and Financial Markets Association (Asifma) has warned that such tax uncertainty could lead to a ‘significant drop’ in FII flows and also lower the revenue for the government arising out of STT.

According to the letter, foreign investors in India have been availing the benefits of DTAA. “Currently, there is no clarity on how GAAR will apply to FPIs (foreign portfolio investors) availing DTAA benefits. The potential for GAAR to be invoked to override the provisions of a DTAA and impose short-term capital gains, interest and penalties of up to 200 per cent causes uncertainty for FPIs and impacts the ease of doing business in India.”

A committee set up by the government on GAAR headed by Parthasarathi Shome had made a similar suggestion in its report submitted in 2012.

“Currently, the revenue on account of capital gains taxation under Section 111A is very small compared to the overall direct taxes collection. On the other hand, such a measure -- abolishing the tax on short-term capital gains -- may provide a boost to capital markets and, in turn, help attracting investment.”

Legal experts say the apprehension of FIIs over capital gains tax is understandable. “Current taxation laws treat FPIs as a single taxpayer as all their trades are done through a single demat account. However, a majority of FPIs are not funds themselves but asset managers or pooling vehicles for numerous investors. Hence, transferring the tax liability to the end beneficiary becomes complicated for FIIs,” said a source.

Recently, Sebi had come up with the proposal to allow FPIs hold multiple demat accounts to address such tax computation concerns. However, the proposal was shot down by the government as it was in conflict with certain tax laws.

Shekhar's Tech -Nifty intraday 28/11/2016

			T1	T2	T-3	T-4	T-5
Buy at/above	8122.5	Targets:	8141.0	8163.6	8186.2	8208.8	8231.4
Stoploss Buy:	8100.0
			T-1	T-2	T-3	T-4	T-5
Sell at/below:	8100.0	Targets:	8081.6	8059.1	8036.7	8014.3	7991.9
Stoploss Sell:	8122.5
For latest update visit : https://www.facebook.com/ShekharTechnical/ Long 1- 2nd target DONE

Get Your Bank Mini Statements on Your Mobile Without the Internet

No need to stand in LINE to know your balance and mini statement 👍

Get Your Bank Mini Statements on Your Mobile Without the Internet

Dial * 99# to do basic Banking instantly. One can check balance for accounts, mini statement where the mobile number is registered & no internet required. Below are the direct codes for banks:

* 99* 41#-State Bank of India
* 99* 42#- Punjab National Bank
* 99* 43#-HDFC Bank
* 99* 44#-ICICI Bank
* 99* 45#-AXIS Bank
* 99* 46#-Canara Bank
* 99* 47#- Bank Of India
* 99* 48#-Bank of Baroda
* 99* 49#-IDBI Bank
* 99* 50#-Union Bank of India
* 99* 51#-Central Bank of India
* 99* 52#-India Overseas Bank
* 99* 53#-Oriental Bank of Commerce
* 99* 54#-Allahabad Bank
* 99* 55#-Syndicate Bank
* 99* 56#-UCO Bank
* 99* 57#-Corporation Bank
* 99* 58#- Indian Bank
* 99* 59#-Andhra Bank
* 99* 60#- State Bank Of Hyderabad
* 99* 61#- Bank of Maharashtra
* 99* 62#- State Bank of Patiala
* 99* 63#- United Bank of India
* 99* 64#-Vijaya Bank
* 99* 65#-Dena Bank
* 99* 66#-Yes Bank
* 99* 67#-State Bank of Travancore
* 99* 68#-Kotak Mahindra Bank
* 99* 69#-IndusInd Bank
* 99* 70#- State Bank of Bikaner and Jaipur
* 99* 71#- Punjab and Sind Bank
* 99* 72#-Federal Bank
* 99* 73#-State Bank of Mysore
* 99* 74#-South Indian Bank
* 99* 75#-Karur Vysya Bank
* 99* 76#-Karnataka Bank
* 99* 77#-Tamilnad Mercantile Bank
* 99* 78#-DCB Bank
* 99* 79#- Ratnakar Bank
* 99* 80#-Nainital Bank
* 99* 81#-Janata Sahakari Bank
* 99* 82#-Mehsana Urban Co-Operative Bank
* 99* 83#-NKGSB Bank
* 99* 84#-Saraswat Bank
* 99* 85#-Apna Sahakari Bank
* 99* 86#-Bhartiya Mahila Bank
* 99* 87#- Abhyudaya Co-Operative Bank
* 99* 88#-Punjab & Maharashtra Co-operative Bank
* 99* 89#-Hasti Co-Operative Bank
* 99* 90#- Gujarat State Co-Operative Bank
* 99* 91#- Kalupur Commercial Co-Operative Bank.

Also, u can dial * 99* 99# to know your Aadhaar linking and Over Draft Status.

☝🏼 Most useful message..

Shekhar's Tech -Nifty intraday 25/11/2016

			T1	T2	T-3	T-4	T-5
Buy at/above	8032.6	Targets:	8051.0	8073.5	8096.0	8118.5	8141.0
Stoploss Buy:	8010.3
			T-1	T-2	T-3	T-4	T-5
Sell at/below:	8010.3	Targets:	7991.9	7969.5	7947.2	7925.0	7902.7
Stoploss Sell:	8032.6

For latest update visit : https://www.facebook.com/ShekharTechnical/

Long 1-
2nd target DONE

Shekhar's Tech -Nifty intraday 24/11/2016

			T1	T2	T-3	T-4	T-5
Buy at/above	7987.9	Targets:	8006.2	8028.6	8051.0	8073.5	8096.0
Stoploss Buy:	7965.6
			T-1	T-2	T-3	T-4	T-5
Sell at/below:	7965.6	Targets:	7947.2	7925.0	7902.7	7880.5	7858.3
Stoploss Sell:	7987.9

For latest update visit : https://www.facebook.com/ShekharTechnical/

Short 1st target DONE

Long 1st target DONE

Shekhar Sinha :Finance Market

What does FAIL & WINNER DO ...?

Indian Currency vs other currencies

Is rupee really depreciated??????
Eye opening data....
I can say in last two years two major strong  economy in this era were usa and india....

In August 2013, when rupee was at its worst...
1 USD = ₹ 67
1 EUR = ₹ 88
1 CAD = ₹ 63
1 AUD = ₹ 61
1 SGD = ₹ 53

Today, November 2016,
1 USD = ₹ 69
1 EUR = ₹ 72
1 CAD = ₹ 51
1 AUD = ₹ 51
1 SGD = ₹ 48

Except the USD, our Indian Rupee has very strongly APRECIATED against all major currencies in the world since 2014. Then why is media always saying Rupee is getting weaker day by day ?? Doesn't the above data mean that Rupee is getting stronger, but the USD is getting even more stronger ???

10 arguments on demonetisation I am fed up of

In all the time he has spent in bank and ATM queues, these 10 arguments were being thrown at him constantly by those supporting demonetisation, says Syed Firdaus Ashraf.

Two weeks after Prime Minister Narendra Modi announced the demonetisation of Rs 500 and Rs 1000 notes, I am tired of running from one bank to another or in search of an ATM that will spew out cash.

Apart from the fatigue caused by all this physical activity, my ears are also weary. For the last fortnight all one has been hearing have been these 10 things from Modi's supporters waiting alongside me in queues at different banks and ATMs.

• WAR ON BIG NOTES

1. 'Takleef hoti hai par thik hai (It is tough, yeah, but it's okay)'

I really admire such people who are willing to stoically bear the inconvenience caused by Modi's call for the larger good.

Prime Minister, you are truly blessed because 80% of those I met agree with you on the need for demonetisation, never mind their own suffering.

The PM said Indians would have to bear the brunt for 50 days, but looking at the grim ground situation, one hopes this deadline is not extended.

2. 'Corruption will be eradicated'

Are you serious?

Does it mean one will never pay a bribe to corrupt babus?

Does it mean educational institutions that charge hefty capitation fees will stop the practice?

Does it mean the traffic cop won't demand a bribe if you are caught jumping a signal?

I hope all this happens post December 30. If not earlier.

3. 'Black money will disappear'

Sigh!

Does it mean jewelers won't accept payment in cash?

Does it mean automobile showrooms won't accept cash payments to give you a discount on fancy cars?

Does it mean we will never again read in newspapers that some bureaucrat was caught with crores and crores of black money stashed at home?

4. 'Our soldiers are standing at the border, why can't you stand in queues?'

Over 55 people, it is said, have died standing in bank queues in the last 15 days, but demonetisation's cheer leaders haven't stopped throwing this line at all and sundry.

If you counter this argument, you've had it.

It's possible a defamation case will be filed against you and you could even be charged with sedition, so my advice is, turn a Beethoven's ear to this argument.

• Why was the government not prepared?'

5. 'If not Modi, who is the option? Pappu?'

I am tired of hearing the Congress vice0-president being referred to as Pappu.

Whoever coined the term for him has done a real disservice to all those named Pappu.

Whoever is saying that should go in 2019?

Airing a genuine complaint that his vision has not been properly implemented on the ground doesn't need to be countered with this argument, surely.

6. 'Check the scams under Congress and then talk against demonetisation'

Those who oppose demonetisation must look at scams during Congress rule, and the reference here is not just to the 10 years under the UPA.

This list begins right from the jeep scam of 1948, the Mundhra scandal of the 1950s to Bofors and everything else in between till the 2G and CWG scams.

But what about the scams under BJP governments, did you say, like the Vyapam scam in Madhya Pradesh, the PDS scam in Chhattisgarh, or why Dushyant Singh, MP, Rajasthan Chief Minister Vasundhara Raje's son, allegedly took a loan from Lalit Modi? Well...

Shekhar's Tech -Nifty intraday 23/11/2016

			T1	T2	T-3	T-4	T-5
Buy at/above	8235.6	Targets:	8254.1	8276.9	8299.6	8322.4	8345.2
Stoploss Buy:	8212.9
			T-1	T-2	T-3	T-4	T-5
Sell at/below:	8212.9	Targets:	8194.3	8171.7	8149.1	8126.6	8104.1
Stoploss Sell:	8235.6

For latest update visit : https://www.facebook.com/ShekharTechnical/

Short 1st-2nd  target DONE

Long exit cost 2cost

Shekhar's Tech -Nifty intraday 21/11/2016

			T1	T2	T-3	T-4	T-5
Buy at/above	8077.5	Targets:	8096.0	8118.5	8141.0	8163.6	8186.2
Stoploss Buy:	8055.1
			T-1	T-2	T-3	T-4	T-5
Sell at/below:	8055.1	Targets:	8036.7	8014.3	7991.9	7969.5	7947.2
Stoploss Sell:	8077.5

For latest update visit : https://www.facebook.com/ShekharTechnical/

Short 1st target DONE
2nd DONE
3-4 and 5th ALL DONE

Shekhar's Tech -Nifty intraday 18/11/2016

			T1	T2	T-3	T-4	T-5
Buy at/above	8100.0	Targets:	8118.5	8141.0	8163.6	8186.2	8208.8
Stoploss Buy:	8077.5
			T-1	T-2	T-3	T-4	T-5
Sell at/below:	8077.5	Targets:	8059.1	8036.7	8014.3	7991.9	7969.5
Stoploss Sell:	8100.0

For latest update visit : https://www.facebook.com/ShekharTechnical/ Long 1st target DONE 2nd DONE Short 1st target DONE

Where should I invest to get assured pension?

            

            I am due for retirement in a year. I have got some money invested in various fixed deposits and a few other places. I want to consolidate and invest it all in a reliable and dependent pension fund where I can get an assured pension on monthly basis.

Can you suggest any such pension funds?

Chandrakant

There are a limited number of investment options that can provide an assured pension. These typically include annuity plans and fixed deposits.

The returns from such instruments tend to be low (being assured in nature), may not beat inflation consistently and are taxable. Hence, one may not be able to meet one's investment objectives (or spending requirements which increase due to inflation) consistently unless one invests a significant amount of money, which would compensate for the low return potential.

On the other hand, there are a few pension or retirement funds available on the mutual fund platform. Some of these funds also provide tax benefits under Section 80C of the Income Tax Act with a deduction of up to Rs 150,000 per financial year on investments.

These funds invest in a mix of equity and debt in proportions ranging from 30 per cent to 100 per cent in equity and the remainder in debt, during the pre-retirement phase and typically up to 40 per cent in equity during the post-retirement phase.

Post–retirement, one can withdraw from such funds through a Systematic Withdrawal Plan, or SWP, either at a monthly, quarterly, semi-annual or annual frequency.

The SWP amount can be fixed at the time of retirement (which could typically be based on your spending requirements) and would continue till the investment corpus is exhausted.

Since the corpus is invested in market linked instruments it could fluctuate based on the market value of the underlying holdings. But the partial allocation to equity would provide the potential for generating returns that are consistently higher than inflation over the longer term.

Based on one's risk appetite other hybrid funds like Monthly Income Plans, or MIPs, can also be considered, wherein the allocation to equity ranges from 5 per cent to 30 per cent.

If a lumpsum investment is made, an SWP could start after 3 years to avoid higher debt taxation. Tax benefits outlined above are not available for investments in MIPs or other hybrid funds.

One could select to invest from the above options (or a mix of the options) based on one's risk appetite and investment objectives/spending requirements.

Shekhar's Tech -Nifty intraday 07/11/2016

			T1	T2	T-3	T-4	T-5
Buy at/above	8533.1	Targets:	8552.0	8575.1	8598.3	8621.5	8644.7
Stoploss Buy:	8510.1
			T-1	T-2	T-3	T-4	T-5
Sell at/below:	8510.1	Targets:	8491.3	8468.2	8445.2	8422.3	8399.3
Stoploss Sell:	8533.1

Shekhar's Tech -Nifty intraday 04/11/2016

			T1	T2	T-3	T-4	T-5
Buy at/above	8510.1	Targets:	8528.9	8552.0	8575.1	8598.3	8621.5
Stoploss Buy:	8487.0
			T-1	T-2	T-3	T-4	T-5
Sell at/below:	8487.0	Targets:	8468.2	8445.2	8422.3	8399.3	8376.4
Stoploss Sell:	8510.1

Shekhar's Tech -Nifty intraday 03/11/2016

			T1	T2	T-3	T-4	T-5
Buy at/above	8533.1	Targets:	8552.0	8575.1	8598.3	8621.5	8644.7
Stoploss Buy:	8510.1
			T-1	T-2	T-3	T-4	T-5
Sell at/below:	8510.1	Targets:	8491.3	8468.2	8445.2	8422.3	8399.3
Stoploss Sell:	8533.1

For latest update visit : https://www.facebook.com/ShekharTechnical/

Long 1st target DONE