Money Multiplying News
Dated: 16-31 Dec 2022 Redg. No. RNI 21891/70 Vol. 53 No. 10/Delhi
INSURE YOUR FAMILY’S FUTURE WITH THE MOST ADVANCED TERM INSURANCE PLAN
Does buying a Term Insurance Plan a necessity, especially when you are the breadwinner of the family or you have dependents? Yes, is the answer to this question. But why is this so critical? Let’s understand this with an example. Taking an example of a family of four, where both kids are studying, the mother is a homemaker, and the father is the sole breadwinner of the family with an income of Rs. 20 Lac per annum at age 35.In case an unfortunate unaccepted incident befalls the breadwinner of the family then the dependents, or family is stuck with some important questions which will decide the future of the family.
Q1. Will the family/dependents be able to continue with the same lifestyle?
Q2. Will the family/dependents continue to stay in the same accommodation?
Q3. Will the children of the family receive the same level of education that their father had dreamt off?
If the answer to any of the above questions is no, then you immediately need a ‘Term Insurance Plan’ to safeguard the family.
Life Insurance
LIFE IS UNCERTAIN AND THERE ARE SOME HARD TRUTHS OF LIFE THAT CAN STRIKE AT ANY TIME!
1. Anyone can buy Term insurance as it is the most affordable form of life insurance and the premiums are quite inexpensive, as low as Rs. 19 per day for coverage of Rs. 1 Crore. T&C Apply.
2. After Buying a Term Insurance Plan, you can have a good night's sleep every night, with the comfort of a Term Plan filling in as income replacement and helping your family to live a comfortable and dignified life in the future.
WHAT’S NEW IN THE ADVANCED TERM INSURANCE PLAN? MONEY MULTIPLYING NEWS
1. Anyone can buy Term insurance as it is the most affordable form of life insurance and the premiums are quite inexpensive, as low as Rs. 19 per day for coverage of Rs. 1 Crore. T&C Apply.
2. After Buying a Term Insurance Plan, you can have a good night's sleep every night, with the comfort of a Term Plan filling in as income replacement and helping your family to live a comfortable and dignified life in the future.
Presenting HDFC Life Click 2 Protect Super – A Non-Participating Individual Term Plan
1. Flexibility to vary life cover
2. Upgrade your coverage with Life Stage Option as your responsibilities upgrade!
3. Comprehensive Life + Health Benefits
4. Smart Exit Option – Get your 100% Paid Premiums back
5. Renewability at Maturity?
HDFC LIFE CLICK 2 PROTECT SUPER PLAN OPTIONS
1. Life Option
(a) Level Cover- Life Cover +Accelerated Terminal Illness Cover.
(b) Level Increasing Cover- Equal to 100% during the first 5 policy years and then a simple increase of 10% after every 5 years, subject to a cap of 200%.
(c) Level Increasing Cover- Equal to 100% in the first policy year and then a simple increase of 5% every subsequent year, subject to a cap of 200%.
2. Life Plus Option
Life Cover + Accidental Death Cover + Accelerated Terminal Illness Benefit and ROP at Maturity.
3. Life Goal Option
Varying Life Cover, up to 60 sum assured is 100%, and after that it starts reducing with 10% on every subsequent year.
Important- Smart exit benefit, Renewability at maturity, Life stage option & adding riders can be exercised with the above options.?
Mutual Fund?
Investors look for investment opportunities that can help them generate wealth, get regular returns, and/ or save taxes. While numerous investment schemes are available in the market, most offer returns taxed according to Income Tax rules. This is where ELSS funds step in. Equity Linked Savings Schemes or ELSS Funds are tax-saving equity mutual funds. Here, we shall explore ELSS Tax Saving Mutual Funds and its aspects.
WHAT IS ELSS FUND??
ELSS funds are equity funds that invest a major portion of their corpus into equity or equity-related instruments. ELSS funds are also called tax saving schemes since they offer tax exemption of up to Rs. 150,000 from annual taxable income under Section 80C of the Income Tax Act. Further, the income that is earned under this scheme at the end of the three-year tenure will bet considered as Long-Term Capital Gain (LTCG) and will be taxed at 10% (if the income is above Rs. 1 lakh).
SO LET'S LOOK AT SOME OF THE FEATURES OF ELSS MUTUAL FUNDS:
? A minimum of 80% of the total investible corpus is invested in equity and equity-related instruments
? The fund invests in equity in a diversified manner – across different market capitalizations, themes, and sectors.
? There is no maximum tenure of investment. However, there is a lock-in period of three years.
? Tax exemption on the invested amount under Section 80C of the Income Tax Act.
? Income is treated as LTCG and taxed according to the prevalent tax rules.
WHAT ARE THE TAX BENEFITS OFFERED BY ELSS MUTUAL FUNDS?
As mentioned above, Section 80C of the Income Tax Act offers tax deduction benefits on the principal invested in an ELSS scheme. Further, these schemes have a mandatory lock-in period of 3 years. Therefore, on redeeming the units, you receive Long-Term Capital Gains or LTCG. These gains are not taxable up to Rs. 1 lakh in one financial year. Any LTCG above this limit is taxed at 10% of the gains exceeding Rs. 1 lakh without indexation.
WHY SHOULD WE INVEST IN ELSS TAX SAVING MUTUAL FUNDS?
ELSS TAX SAVING FUNDS OFFER A WIDE RANGE OF BENEFITS, INCLUDING:
? Diversification – Most ELSS funds invest across a diverse group of companies ranging from smallcap to large-cap and across various sectors. This assists in adding the element of diversification to the investment portfolio.
? Low minimum amount – Most ELSS schemes allow investors to start investing with as low as Rs.500.
? Additionally, there is no upper limit on investment amount, but you can grab the tax benefits as limited by Section 80C of the Income Tax Act. Also, redeeming the units after completing the mandatory lock-in of 3 years is not mandatory. The investment can be allowed to continue.
Factors to consider before investing in ELSS Funds
A scheme’s performance over the past decade should be considered before investing in ELSS funds.
Investment + Tax Planning
Being the only type of mutual fund, which invests in the equity market and offers tax benefits, many investors look at ELSS funds only for tax planning purposes. If saving tax is the sole purpose, then there are several options available under Section 80C of the Income Tax Act. Before investing in ELSS, it should be ensured that wealth is created in addition to tax savings to assist in achieving the financial goals. This plan will naturally include tax planning. ELSS funds can be used to achieve long-term goals.
FOLLOWING ARE SOME OF THE ELSS SCHEMES?
General Insurance?
Disclaimer: Bajaj Capital Limited (‘BCL’) has taken due care and caution in presenting factually correct data contained herein above. While BCL has made every effort to ensure that the information/data being provided is accurate. BCL does not guarantee the accuracy, adequacy or completeness of any data/information in the publication and the same is meant for the use of the recipient and not for circulation. Readers are advised to satisfy themselves about the merits and details of each investment scheme, before taking any investment decision. BCL shall not be held liable for any consequences, legal or otherwise, arising out of use of any such information/ data and further states that it has no financial liability whatsoever to the recipient/ readers of this publication. Neither BCL nor any of its directors/ employees/ representatives accept any liability for any direct or consequential loss arising from the use of data/ information contained in the publication or any information/ data generated from the publication. Nothing contained in this publication shall constitute or be deemed to constitute a recommendation or an invitation or solicitation for any product or services. Any dispute arising in future shall be, subject to the Court(S) at Delhi. Views given in the articles are the personal views of the contributors and not that of the company. Readers are advised to go through the respective product brochure/ offer documents before making any investment decisions. Disclaimer: The rates of interest are applicable as on the data mentioned here in above. The rate may be revised at the sole discretion of the respective companies inviting the Fixed Deposits without further notice. Printed by, Rajiv Wadehra, Published By, Raji Wadehra on behalf of Bajaj Capital Investment Centre Limited, Bajaj House, 97 Nehru Place, New Delhi - 110019, and Printed at Sundeep press C-105/2, Naraina, Industrial Area Phase - , New Delhi - 110028, and Published at Bajaj House,97 Nehru Place, New Delhi - 110019, Editor-Rajiv Wadehra (CIN: U0000DL1988PLC039417))