The Premiums You Pay Actually Save Your Money – Know-How!

As a contract between the insurance company and the insured, these life insurance plans contain a valid consideration to be enforceable by law. Paying off premiums forms the base of the contract, which makes it complete.

The decision to choose a policy is often influenced by the premium rates and the affordability of the plan. However, we ought to not sacrifice the policy coverage to save on insurance premium payments.

Bringing that compromise would defeat the purpose of the insurance plan, which is to secure financial security for our loved ones when we are gone. Financial risk management requires the use of life insurance.

how premiums lead to better returns in long run

Regardless, two people of the same age living in different locations will be offered a different level of coverage or a different premium if they have different medical conditions and income-earning capacities.

It is advantageous to purchase a life insurance policy at a young age, such as 28 or 30. Life insurance plans that are purchased at a young age are cost-effective. The more you age, the more responsibilities you face, and, at that stage, a life insurance policy becomes a necessity and, due to the increased age, the premium increases.

Do life insurance premiums come in different types? How often do you have to make premium payments? What are the rules concerning tax benefits for life insurance premiums paid in your name or the name of specified family members? You should know these basic rules.

Discounts Offered On Life Insurance Premiums

Many insurance companies offer discounts on premium rates depending upon the sum assured and the modes of premium payment. This is precisely what the term rebates means.

1. Rebate for periodicity of premium

Insurance policies usually require periodic premium payments, and depending on one’s cash flow, annual, semiannual, quarterly, or monthly payment schedules can be chosen. If the company collects premiums more frequently, the costs of handling them (collection, processing, and administrative expenses) tend to increase.

The company has access to the funds longer (for investment) if the premium is paid at once for the entire year as opposed to monthly. The company can use those funds for investing and offer you cheaper rates.

2. Rebate for online payment

In general, the company’s servicing cost for online premium payments is lower than for physical payments. Also, the company saves money by not paying agents’ commissions when physical policies are sold.

Accordingly, various companies may already have given a rebate before quoting the rates for online premium payments. The premium rates quoted should already include the rebate, else the rebates offered will be higher than those offered with a physical payment.

3. Extra Premium

The normal premium tables apply to people whose lives have no additional risk, which is known as ‘standard lives’ in the insurance industry. Ordinary premium rates apply to people with standard lives. Occasionally, the insurer may charge extra premiums for people with health issues such as diabetes or heart disease or who work in hazardous occupations.

Additionally, insurance covers are also charged extra if they are purchased alongside the base policy (known as ‘Add Ons’ in insurance jargon).

4. Level premium

The term level premium describes insurance policies in which the premium remains the same throughout the contract. In this case, the premium level is guaranteed and the company cannot change it at a later date.

In most cases, life insurance plans, except for life insurance plans that pay level premiums, this is advantageous to the life assured and the insurance company. The term level premium describes insurance policies in which the premium remains the same throughout the contract.

Here, the company is guaranteed to keep premium levels and cannot change them at a later date. Both the life assured and the insurance company benefit from the level premium payment process, and thus most life insurance plans, except for some term insurance plans, are level premium payment plans.

5. Increasing and decreasing premium

Term plans with increasing premiums (as explained above) are typical examples. An increasing premium applies to mortgage redemption policies in which the premium drops as the policy holder’s outstanding loan balance decreases.

6. Single premium

Single premium policies are typically only available to people with higher incomes or who have idle funds.

7. Non-payment and late payment

A “grace period” is usually outlined in most policy contracts, which allows the policyholder an extension to pay the premium after the due date. The policy will continue to be in effect during this period if he pays the premiums without incurring any additional fees.

Best Life Insurance Policy in India

If your life insurance policy is for something other than term insurance, the grace period for monthly payments is generally 15 days, and for other frequencies of payments (quarterly, half-yearly, yearly) it will be one month but not less than 30 days. Term insurance policies usually have a grace period of 15 days.

8. Tax Benefits on Premiums

Tax-deductible life insurance premiums paid by the policyholders for themselves, their spouses, or their children may be deducted from taxable income under section 80C of the Income Tax Act. Section 80C can’t be applied to premiums paid for policies owned by other third parties (other than a spouse or children) such as parents (fathers, mothers, or both) or in-laws. These are not applicable as a new tax slab taxpayer.

Final Words

The purpose of this article is to help people understand how premiums lead to better returns in long run. Instead of being frustrated as you pay premiums or your life insurance plans, you switch your mindset into a positive one by understanding that the money paid as a premium is not wasted. It will bring countless benefits for you in the years to come.

The BIG News of Income Tax on Cryptocurrency Gains in 2022

Didn’t see that coming, did you? Well, a lot of investors, traders & other participants in the crypto industry were taken off guard when the conclusive statement was made by the finance minister of India regarding the tax regime on ethereum trader app. The union budget of 2022 was filled with dynamic changes & announcements regarding the prevalence of digital currency in the country. Considering the rampant increase in the users of cryptocurrency across the world, the governments around the world had their respective takes on this prominent topic. Some embraced it with open arms while others remained firm in preventing their citizens from cryptocurrency to curb the illegal activities being conducted under its pretence.

Income Tax on Cryptocurrency Gains in India

Bitcoin Era explores the intricate details around the taxation system that has been newly introduced in the country. The taxation on crypto gains was inevitable and it is only logical to do what the Indian Government did. Not giving in to the latest trends and maintaining a firm stance against the cryptocurrency’s prevalence, government officials don’t shy away from warning people of the prevailing risks of such unregulated currencies. What does the future of cryptocurrency hold in countries like India where significant taxation on capital gains is a reality? It has become a highly debatable topic in current times.

Capital Gains and Taxation

The process of taxation is still quite ambiguous since it doesn’t clarify some of the predominant areas. But, there is one thing to be kept in mind the process of taxation will be levied according to an individual’s activity along with the treatment that has been embraced by a particular taxpayer. The tax rate will remain unaffected if the income that is generated through an exclusive cryptocurrency transfer is a business income. The recent rates in terms of capital gains are 20% if the capital gain is of long-term nature i.e., 36 months or longer.

On the other hand, the rates will be levied as per each individual if the security is held for less than 36 months. So, it has to be kept in mind before making buying any security and the rates will fluctuate as per individual so that’s another thing to be kept in mind.

Finance Minister Declaration

The Government of India has also proposed that a tax of 30% will be levied on the transfer of digital currency or any cryptocurrency asset. Moreover, the deduction will not be allowed apart from the acquisition cost. However, the government has started to acknowledge cryptocurrency as an asset class along with bringing crypto trading under the purview of legal activity in the country.

In addition to this, such clarification made by the finance minister will hook more people to the government-autopsied crypto trading which will provide a necessary impetus to the overall growth of the industry in the country. This will also facilitate a precise environment for crypto trading that was being conducted on illegal terms earlier.

There is one big shortcoming, however, that the possibility of taking forward the transaction loss in the subsequent financial year will not be entertained by the government. Considering the highly volatile nature of cryptocurrency, it is a quite favorable move for investors. Such announcements were being highly anticipated because the prospects of earning income and registering growth through cryptocurrency are a big deal for the population now.

bitcoin cash

Will crypto prominence be faded by the tax dominance?

Digital assets have gained significant traction in the country and their popularity continues to sail past consecutive milestones effortlessly. The overall volume of trading has also proliferated significantly over the years. All the efforts that have been channelized to put a firm bridle on the pace that cryptocurrency operates with in the country seem to come with full effect. The government is constantly working towards eliminating all the possible facets that serve as a crypto-magnet for the people. This also comes in the form of a 30% slab of tax rate which will undeniably deter a lot of people from transferring any sort of cryptocurrency in the future.

So watch out for the latest trends to stay updated with the dynamic changes that are inevitable in this landscape.

6 Reasons Solar Is Your Best Investment In the Future

It’s no secret that solar power is the future. There are solar panels on rooftops worldwide, and solar panel installation has gone from being a niche energy option to one that many experts predict will be used in most places by 2050.

reasons why solar is your best investment

Why is solar power so popular in Australia?

There are a few reasons why solar power is such a big hit in Australia.

  • For one, the cost of solar panels has come down in recent years, making them more affordable for homeowners and businesses.
  • Additionally, Australia has a lot of sunshine, making it an ideal place for solar energy.
  • And finally, Australians are increasingly interested in renewable energy sources, and solar power is one of the most popular forms of renewable energy.

How can solar power contribute to restoring our natural environment?

Solar power is a renewable energy source that doesn’t pollute the air like burning coal and other fossil fuels. It also reduces our reliance on greenhouse gas-emitting power plants, which helps to mitigate climate change. Solar panels installed on your home or business can help Australia reach its emissions targets set by the Paris Agreement. Other countries like Germany are already touted as renewable energy leaders!

But what does this mean for you? Should you invest in solar panels now or wait until they’re more mainstream?

Here are six reasons why solar is your best investment in the future!

1. Solar energy is a renewable resource that won’t run out

Unlike fossil fuels, solar energy is a renewable resource you can harness indefinitely. As long as the sun continues to shine, you’ll be able to use solar power to generate electricity and heat. The fact that solar power is renewable makes it a more sustainable option than other forms of energy generation.

2. Solar energy is environmentally friendly and doesn’t produce harmful emissions

Did you know? Solar energy accounts for only 0.01% of global greenhouse gas emissions!

Compare this to coal, which accounts for 41% of global greenhouse gas emissions!

Fewer emissions are excellent news for the environment – and there’s even better news for your wallet since solar is becoming increasingly affordable.

3. Solar energy is becoming more and more affordable as technology improves

Yes, there has never been a better time to go solar!

Solar technology is advancing rapidly, and solar panels are becoming more efficient at converting solar energy into electricity. More efficient solar technology means solar will continue to get cheaper as time goes on.

One of the most popular solar technologies available today – thin-film solar – has dropped in price by 50% since 2009!

The cost of solar power installation per watt currently averages between $0.60-$0.70/watt in Australia (depending on where you live). In some areas, it’s even less than this! That’s a fraction of the cost that people paid just a few years ago for solar installations. And there are still significant solar incentive programs run by governments designed to reduce costs further if you choose to install a solar system yourself or through an installer.

4. Solar panels can be installed on most roofs, regardless of their shape or size

Think you can’t install solar panels on your roof? Think again! Solar panels can be installed on most roofs, regardless of their shape or size. This versatility makes solar a viable option for both residential and commercial properties.

Plus, the technology is constantly evolving, with new solar panel designs and materials developed all the time. So even if you’ve already got solar panels installed on your roof, there’s a good chance that you could upgrade to newer, more efficient models and see an increase in your solar energy output!

The future of solar power in Australia is looking brighter than ever – so make sure you get on board now and start enjoying the savings!

5. Installing solar panels can increase your home’s value by up to 20%

Installing solar panels not only saves money on costly electricity but also adds to the value of your home.

When homeowners install solar panels, they can bank on a minimum of 20% increase in the value of their property. That’s because solar panels improve your house’s energy efficiency and curb any concerns potential buyers might have about high electricity bills as well!

energy efficient technologies

So if you’re looking to cash out when it comes time for selling your home – an investment in solar is one that will pay off right away!

Whether you decide to sell or not after purchasing solar power equipment, some people want proof that they’ll be able to save money on monthly utility bills – but how do you know this? One way is by getting quotes from multiple companies; comparing estimates with similar hardware/solar panel brands and sizes (capacity).

6. You can sell excess solar energy back to the grid for a profit

Want to make some extra cash? If you produce more solar energy than you need, you can sell the excess back to your local utility company! This process is called net metering, and it’s a great way to make some extra money each month.

All of these are excellent reasons to consider making the switch to solar power – but remember, not every home is a good candidate for solar. Contact a solar specialist in your area to see if your home is suitable for installation – they’ll be more than happy to help!

Start benefiting from free electricity

If you’re considering the idea of a solar panel installation for your home but are afraid it’s too expensive or that it won’t work in a few years – think again. Solar power is an investment in your future and is affordable for everyone! As experts in solar energy, we have seen firsthand how solar energy can change lives by helping families live more comfortably while reducing their utility bills.

Contact a solar specialist for a free on-site consultation so you can get all of your questions answered before deciding on going green with sustainable solar electricity from the sun.

Do you have a solar panel installation at your home? Have you ever had an issue with having solar panels on your roof? Let us know what you think about solar panels in the comments section below.

Benefits of Using Online Lenders Help: Fast Loans From Your Home

Nowadays most of humanity resorts to online lending. And the reason for the popularity is absolutely clear. The Internet today is an indispensable part of everyday life for everyone. The global info space certainly makes people’s lives easier and provides many amenities.

Thanks to the internet, you can make many things easy and instantly: here and now. So fast loans online are very convenient.

For example, you urgently need medicines at night, but you don’t have the sum that you need to make a purchase. The online loan app can become an amazing solution!

Benefits of Using Online Lenders

The process of getting money is quite fast, you don’t need to go somewhere to get your loan and a big amount of documents is unnecessary! But there are disadvantages too. Let’s acquaint all the details!

You need to use a computer or an app on your mobile device to start. Firstly the process can be tricky if you’re not familiar with the technology, but after acquainting with it everything becomes easier.

Online loans should be chosen for situations where you need:

  • a small amount
  • for a short period
  • immediately – when the issue needs to be resolved within half an hour
  • without trips and meetings with the creditor
  • during non-working hours/day – for example, at night or on weekends.

Since the advent of online loans, people have had mixed opinions about them. Some consider them bad and try to bypass them. Others periodically use them and treat them very positively. Both of them are right. Such loans can both help out in difficult times and lead to considerable extra expenses. Let’s understand when it is not necessary, when it makes sense to take an online loan, and how to choose the best one.

Online Lenders Advantages

If we talk about the advantages of online lending, the first of them is efficiency. Most often, you can get money on a card from the moment you apply for it in 15-20 minutes. Among the advantages there are also:

  • Loyalty: All consumers can get a positive response after the application, regardless of credit history, job, and position. The service is also available to students. However, the borrower must be of legal age. Some companies significantly expand the age limits. So, sometimes, loans are issued to consumers up to 75 years of age.
  • The minimum amount of documents: To get an online loan, you do not have to collect a whole pile of papers. It is enough to have a passport and a TIN code.
  • Transparency: By borrowing money online, you will be able to know exactly in advance the entire sum that you will need to pay off. To do this, you can use the convenient service calculator on the lender’s website.
  • Versatility: No one checks exactly where the money was spent. An application is simply made, and money is withdrawn from the card for any needs.
  • Benefit: An online application for a loan will help you not only to save time but also quickly select a loan program that is beneficial to each client.
  • Mobility: Imagine the following situation: your car has broken down, cash is not enough to fix it, there is no one way to borrow from, but there is mobile Internet. You go to the service website and order a loan online.

But think twice before taking a loan, because according to Federal Reserve total household debt became $14,600,000,000,000 in 2021!!! (It is $14,6 trillion)

online lenders

Pitfalls You Can Face

There are not many, but it is better to know about all the pitfalls before applying:

  • Limit: If you need a large amount, it is better to make it with help of a bank. The Internet loan is limited, and you cannot get a quite large amount.
  • Interest: The interest rate in credit apps is much higher than in a conventional bank. Therefore, delaying regular payments is highly discouraged – there is a risk to get a fine. This is a big overpayment.
  • Short term: It is not possible to take out such a loan for a long period of time. On average, microloans are issued to the consumer for a month. In addition, the faster the loan is repaid, the lower the overpayment. Although it is possible to agree on an extension.
  • You must carefully choose a company to get fast loans online to avoid facing scammers.

We also would acquaint you with Jane’s history:

« I have never taken out a loan before. Everyone said it’s not reliable. But I have changed my opinion about it recently. I needed to take my dog to the vet immediately. But the sum in my wallet didn’t allow me to do this. I called my friends and family to borrow money, but nobody couldn’t help me. One friend advised me to take an online loan. Firstly I even hadn’t thought about it, but my beloved pet needed urgent help. I found the safe app and took not a big amount. It’s really helped me out. I still take fast online loans if I don’t have enough money before the payday advance and most importantly that I don’t disturb loved ones.

I even improved my credit score, by making payments on time.»

The online form of lending is convenient, prompt, and guaranteed receipt of the required amount on the card. However, it is worth remembering about repayment periods and the cost of interest payments, and also you mustn’t forget about scammers.

To avoid large overpayments and the risks of meeting scammers, it is better to choose a large company with a reputation proven by time and clients. Reliable financial Internet companies are enough today. In many institutions, it is possible to get a loan without collateral. That is why you should not be afraid to make money this way because if you choose the right online credit company, there will not be unnecessary problems.