Money matters and yes, it really does. The expenses are rising high and now you have to spend on things that you never included in your list. It is absolutely normal as responsibilities increase with age. At the same time, the society is moving towards such an age where time is scarce and everything can be bought with money except love. In such a scenario it is difficult to make a decision, to save money or save time. Investment plans are made for creating money and tax saving investments are there to save money while making it grow. But, how can you same money in your day-to-day life? Check the following options. Take note of your spending: The first step of saving money is to know where you are spending. In order to do so, take a note of your spending, and make sure you miss none. Make a notebook for the spending calculation and you will know exactly how much you spend. This book will be helpful in the long run. Make a budget: Once you have the expenditure jotted down in your book, you can make a budget for the month. Make sure that the budget includes some extra expenditure that cannot be planned. When you have a budget in hand, you can limit over spending and you will know how much money is allocated for each head. Categorize the expenditure in such a way that it will be easy for you to check. Make savings plan: Give yourself a target to save money every month. While the amount may vary each month, make sure that the total savings for the year is kept constant. If you had an expensive month make sure that the next month is not that expensive. Savings plan will include investment plans that are worthy to check out for long lasting savings. Choose your priorities: It is very important to know your priorities to make proper savings plan. For example, expenditure on your kids’ education will be more important than taking them to the recreational park. However, both are required but you need to know the frequency that you can afford. If you have a tendency of spending unnecessarily whenever you stop at a food station while driving, make sure to take break at other places. This will decrease your expenditure. Have an easy savings account: It is also quite important to accumulate the fund in one account, preferably a bank savings account. There are several accounts available to the user but one that has easy transfer option will be the best. Keep the saved money in just one account so that you can understand how much money is saved. This will definitely help you calculate for the investment plans. Make your money grow: Your responsibility does not end with saving money in an account. You shall definitely invest in tax saving investments so that you can save on tax and at the same time, make your money grow. It is good to see your investment growing and thus investment plans with good return will be an addition to your savings. It is very important to understand that life insurance is full of surprises and enjoy. While saving is quite important for a good living in the long run, you shall not save too hard that you miss the joy of today. Make sure to have leisure time with family and friends whenever possible but you shall also keep a check on the expenditure. It is good to let loose but save tight. The savings you make today will be your support and back up for tomorrow.
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With the e-generation setting in, LIC has also joined the bandwagon recently. One of the oldest life insurer around, it has initiated its online innings by starting an e term plan. This is sure to bring about a revolution in the industry with LIC being a household name.
Another positive to the tech-edged plan is that it is almost 35% cheaper than the offline term plan of the company. But this still keeps it a little costlier than the other online plans already floating on the internet. Considering the goodwill of the brand and popularity of LIC plans, the online plan is likely to be a hit besides being a little pricey option. The online segment is bound to grow to new heights with a leading insurance company making an entry into the new territory. It will increase the awareness of the customers in regard to the available LIC policies and plans. While some private companies believe that price is the deciding factor in the success of any plan or policy, the truth is that for a huge class of customers the name LIC life insurance is everything that matters. For such customers the trust and confidence associated with the brand is much more important than the premium they might have to pay. Like in most of the online offers, buyers in this case also doubt that there might be hidden costs in the plan or that there might be a catch in it that will prevent the company from paying the claim. The low premium in the online plans is one such concern. This can be easily brushed away as a misconception since there are reasons for such low premiums in an online plan-
The above factors reduce the risk and thus a reduced premium too. Facts and Figures: The company has not become a household name without a reason. The trust and confidence associated with the brand comes with a price. In 2012-13, the LIC has successfully paid out 97.73% of the total claims that it received. Such a high percentage of claim settlement only stands to prove the integrity of the company in paying out all the genuine claims. This is all what a buyer is looking for. To draw a comparison, only five private insurance companies- ICICI Prudential Life, SBI Life, HDFC Life, Kotak life and Max life have successfully settled 90% of claims in the same period of time. As per the experts, any insurance company that has completed 10 years of its operations in the field should have a record of settling 90% of the claims. It would also not be wrong to say that the claim settlement ratio cannot be a decisive factor since there are no significant reasons to decline a claim if all the declarations of the customer are genuine. The LIC life insurance is an age old name in the industry and the trust in LIC policies and LIC plans, immense. The company’s decision of entering the online segment will definitely be taken positively by the educated and aware class of its clients. The process of buying a plan will not only become smoother for them but also low premiums will be the game changer. |
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