Term Insurance Plan - Pure Life Insurance

What is Pure Life Insurance Plan? Best answer is Term Insurance Plan. What is the right time to get Term Insurance Plan? The short answer would be, “as early as possible.” But that doesn’t mean a child should also buy a term plan. There are various term & conditions that define the right time for anyone to buy a term insurance life cover. First of all, it is important that you understand ‘what is term plan after all? And what makes it important enough for such consideration?’

What is Term Plan?

Term plan or term insurance plan is a pure life insurance cover. The name term insurance (or term plan) refers to an insurance contract where an insurer agrees to compensate your nominee(s) for a specific premium cost.

Why Term Plan?

The purpose of insurance is to minimize the financial stress on the family or insured in case a specific loss occurs. For example, in case of life insurance, the insurer pays the sum assured to the family of the insured, in the event of the untimely demise of the insured. Thus, the family is saved from the financial problem after the death of that insured person.

The term insurance cover sustains the family’s financial stability in the worst circumstances.

Also Read : Term Insurance Plan Good or Bad Decision

How Will Term Cover Work?

Nowadays, insurers offer multiple pay-out options to make dependents life easier after the claim. Following are the most prominently offered pay-out options:

·         Lump-sum

·         Regular Income

·         Growing Regular Income

·         Lump-sum with regular income (fixed or growing)

The fourth option is quite useful if you think from your dependents’ perspective who may not want to manage a large investment. The lump-sum amount is useful in meeting the immediate financial needs, liabilities, etc. and regular income for future.

What is the Ideal Age to Buy Term Plan?

Most term plans consider 18 years of age as the minimum eligible age for availing a term cover. However, the ideal age for a term cover is defined by the income earning potential of the individual. For example, a 40 years old person who is not employed and financially dependent on another may not be eligible for a term cover, though at 20-year-old person earning Rs. 300,000 p.a. would be eligible.

Thus, whether your age is ideal for a term cover or not will depend on:

·         If you are above 18 years of age

·         Your annual income

Benefits of Buying Term Cover Early

The premium on term insurance cover is quite affordable, especially for younger buyers, since age is one of the major factors in premium estimates. Also, since the premiums will remain the same, early buyers may enjoy a very low term premium later in life.

How Much Life Cover You Need?

Since the purpose of term insurance is to meet your dependents financial needs, it is better that you choose a sum assured that is large enough for that. Usually, you can avail approximately 20 to 25 times of your annual income as maximum sum assured.

Example: Suppose Pradip had the annual income of Rs. 500,000 p.a. at the age of 30, thus maximum sum assured he could choose was about Rs. 25 to 30 Lakh. He can, however, increase the sum assured as his income increases or based on certain life events.

Term Insurance and Life Events

The life insurance need is not static throughout your life. It changes with your income, lifestyle, the number of dependents and other factors. After retirement, when you start earning out of your own savings from your working years, and your liabilities are over, your life insurance need could be zero.

Following life stages should make you revisit your term life cover:

·         Marriage

·         Addition of a life (Child birth)

·         Lifestyle changes/upgrades

·         Income increase/Job changes

Whatever your age at this moment, if you have not considered a term insurance so far, perhaps it is the right time to start.

Call me at 9958781151 or whatsapp to know more or book a term plan.

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Income Tax Slab Rates for the F Y 2017-18 (A Y 2018-19)

Income Tax rate are decided in budget in every year. Some time it come with some change in tax slab rate or some time some other levy of exemptions.

Here i come with Income Tax Slab Rates for the Financial Year 2017-18 (relevant to Assessment Year 2018-19)

INCOME TAX SLAB FOR INDIVIDUAL & HUF (Less Than 60 Years)

INCOME TAX SLAB	TAX RATE
Income Upto 2,50,000	NIL
Income from 2,50,000 - 5,00,000	5%
Income from 5,00,000 - 10,00,000	20%
Income above 10,00,000	30%

INCOME TAX SLAB FOR SENIOR CITIZEN ( 60 Year Or More but Less Than 80 Year)

INCOME TAX SLAB	TAX RATE
Income Upto 3,00,000	NIL
Income from 3,00,000 - 5,00,000	5%
Income from 5,00,000 - 10,00,000	20%
Income above 10,00,000	30%

INCOME TAX SLAB FOR SUPER SENIOR CITIZEN ( 80 Year Or More )

INCOME TAX SLAB	TAX RATE
Income Upto 5,00,000	NIL
Income from 5,00,000 - 10,00,000	20%
Income above 10,00,000	30%

Surcharge : 10% of Income Tax, where total income exceeds Rs.50, Lakh upto Rs.1 Crore.
                 : 15% of Income Tax, where the total income exceeds Rs.1 Crore.

Higher Education and Secondary Cess : 3% of Income Tax

# Rebate of Income Tax in case of Certain Individuals (Section 87A)

You can claim the rebate if you satisfy both the following conditions:

·   You are a Resident Individual; and

·  Your Total Income Less Deductions (under Section 80) is equal to or less than Rs 3,50,000. (Rs. 5,00,000 up to AY 2017-18)

The rebate is limited to Rs 2,500. (Rs. 5,000 till AY 2017-18) Which means if the total tax payable is lower than Rs 2,500, such lower amount of tax will be the rebate under section 87A. This rebate is applied on total tax before adding Education Cess.
# Penalty for Late Filing of Return [Section 234 F]

This change is one of the most notable changes done in Income Tax. There had been no late fee or penalty for delayed filing of Returns. Income Tax Department was quiet lenient in this regard.

If a person who is compulsorily required to file Income Tax Return (ITR) doesn’t file return on time then he is liable to a penalty as follows

Amount Of Penalty

For person with Total Income of more than Rs. 5,00,000

1. If ITR is filed after due date but on or before 31st December 5,000

2. If ITR is filed after 31st December but upto 31^st March 10,000

3. No Return Filing is possible after 31^st March of AY.

For person with Total Income of less  than Rs. 5,00,000 – Rs. 1,000 (up to Mar 31^st of AY)

Penalty is not applicable if ITR is filed before due date but verification is done after the due date.

In addition to the penalty interest under Section 234A is also levied on late filing of Income Tax Return.

# Insertion of Section 269ST

PROVISION OF SECTION 269ST	No person shall receive an amount of two lakh rupees or more— (a) in aggregate from a person in a day; or (b) in respect of a single transaction; or (c) in respect of transactions relating to one event or occasion from a person, otherwise than by an account payee cheque or an account payee bank draft or use of electronic clearing system through a bank account.
EXCEPTIONS	(a) Government; (b) any banking company, post office savings bank or co-operative bank; (c) transactions of the nature referred to in section 269SS; (d) Such other persons or class of persons or receipts, which the Central Government may, by notification in the Official Gazette, specify.
PENALTY FOR NON COMPLIANCE SECTION 271DA	If a person receives any sum in contravention of the provisions of section 269ST, he shall be liable to pay, by way of penalty, a sum equal to the amount of such receipt Any penalty imposable under sub-section (1) shall be imposed by the Joint Commissioner.

Section 269ST is introduced by Finance Act, 2017 with effect from 01.04.2017 and put a limit on Cash Transaction to put a check on Black Money and Tax Theft. Section is much talked about section as it provides penalty for any cash transaction above the value of Rs. 2 Lakh, equal to the Transaction amount.

Most of us would have heard this section as this was one of the highly discussed topic after the Budget Speech of 2017.

This section applies on the person receiving payment in excess of Rs. 2,00,000.

INCOME TAX SLAB FOR DOMESTIC COMPANIES

TURNOVER PARTICULARS	TAX RATE
Gross Turnover up to 50 Cr. in the Previous Year	25%
Gross Turnover Exceeding 50 Cr. in the Previous year	30%

In addition cess and surcharge is levied as follows :
Cess : 3% of Corporate tax
Surcharge : Taxable Income is more than 1 Cr. but less than 10 Cr. - 7%
                   Taxable income is more than 10 Cr. - 12%

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LIC Maturity Claim Process

Mostly person before taking life insurance they think that how to claim maturity benefits from life insurance policies? Or What are the maturity claim procedure? How in my absence my dependents or spouse or nominee can take maturity claim?

Every insured person is entitled to claim the maturity benefits only when the policy is in force and all premiums have been duly paid. In life insurance policy with maturity benefits, the insured person will be entitled to claim maturity benefits if they have fulfill the term of the policy. A maturity claim is one of the simplest claim procedures with minimal paperwork require.

Normally the insurance company sends a Policy Discharge form about ninety days (3 month) before the maturity date of the insurance policy along with maturity intimation at insured persons address mentioned in policy. All instructions regarding the documents & procedures are advised their.

First of all, insured person should visit nearest LIC branch and understand the procedures.  Following list of documents require in Maturity claim process:

* Original Policy Bond
* Copy of Identity Proof
* Copy of Address Proof
* Bank Mandate Form with bank details
* A Cancelled Cheque leaf

Arrange all documents require to take maturity claim. The Policy Discharge Form (LIC Maturity Form No.3825) must be duly filed by the policyholder. The Maturity form needs to be signed by Policy holder along with two witness. 
The duly completed form with required documents must reach the insurance company at least one week before the maturity date of the policy for a seamless maturity claim settlement.

Once the documents are reach to the insurance company, they do verification and after that insurance company will process the maturity claim and make the payment to the policyholder. The maturity amount will be credited directly to the bank accounts of the policy holder after the policy maturity date.

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How To Check Form 26AS?

We are near to year end, now complete your exercise regarding tax saving investment  and income tax planning. People who pays us some times are liable to deduct TDS on our payment if crosses threshold limits as prescribed for deduction of TDS.

Before filing Income Tax Return it is necessary to obtain & match all income details. Now question is how to get Form 26AS?. What are the procedure to get form 26AS?

There are two procedure to obtain Form 26AS :

1) Directly login on TRACES Website by giving User ID And Password.

                         

2) Login on Income Tax eFiling Website. 

After login on efiling website go to My Account. Click on View Form 26AS (Tax Credit), user will be redirected to TDS-CPC Portal (i.e. TRACES website). Here you can view Form 26AS by selecting related Assessment Year from drop down menu. You will be asked to select report format type i.e. html, text, PDF then write captcha code in the given box and your statement are ready to view. If you have selected PDF format then you need password to open that downloaded file. 

Password to Open Form 26AS is Date of Birth/ Date of Incorporation (in ddmmyyyy format)

Form 26AS is act like a passbook. Following details have been provided in Form 26AS :

statement Advance tax, Self-Assessment Tax and Regular Assessment Tax paid by self·         Tax paid through Tax Deducted at Source (TDS) or  Tax Collected at Source (TCS) on behalf of users own presence·  Refund issued by the Department to self

·        Information received from various agencies on high value transaction carried by self.

This statement is presented yearly, which reflects the transaction of the concerned year. Any person/company who deduct TDS and deposited it against our PAN are reflects here with following details, 

1. Name of Deductor

2. TAN of Deductor

3. Total Amount Paid / Collected

4. Total Tax Deducted

5. Total TDS Deposited.

Form 26AS are divided mainly into Seven Parts i.e. A - G. These parts are :

a) Part A   : Details of Tax Deducted at Source

b) Part A1 :  Details of Tax Deducted at Source for Form 15G/ 15H

c) Part A2 : Details of Tax Deducted at Source on Sale of Immovable Property 

                 U/s.194IA/ TDS on rent  of Property U/s 194IB (For Seller /Landlord 

                 of Property)

d) Part B  : Details of Tax Collected at Source

e) Part C  : Details of Tax Paid (Other Than TDS or TCS) i.e. ADVANCE TAX

f) Part D   : Details of Paid Refund

g) Part E  : Details of AIR Transaction

h) Part F  : Details of Tax Deducted at Source on Sale of Immovable Property 

                U/s.194IA/ TDS on Rent  of Property U/s 194IB (For Buyer /Tenant

                 of Property)

i) Part G : TDS Defaults 

So, Analyse all details given in Form 26AS. If any discrepancy get noticed then contact the concerned person. Disclose all income atleast as per Form 26AS and take credit of all TDS/Advance tax given in Form 26AS.

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Why We Need Health Insurance ?

Mostly people asks when a insurance agent offer health insurance policy to a person that why they need health insurance policy for him or their family members.

Here I shall discuss, Why health insurance is very important for everyone even if they are financially strong?

Answer are very simple, every one knows it though they like to ignore, like if we close our eyes, problem can not find us. 

Few points are here : 

• People are saving money for their Future Goals, 

• Savings do not happen in a day or in a month, It takes YEARS, 

• Life is very UNCERTAIN and DISEASES are a part of that uncertainty.

When DISEASE comes, it spoils all FUTURE PLANNING because it COSTS HIGH especially Critical illnesses like,  

•  Cancer: 5 Lakh and more 

•  Heart Ailments : 3 Lakh to 8 Lakh or more, 

• Kidney Issues: 5 Lakh to 15 Lakh or more, 

• Liver Failure: 5 Lakh to 15 Lakh or more,

These diseases are DANGEROUSLY increasing in India now a days due air pollution, living habits, diet we take are infected. 

Remember every People are not that much FINANCIALLY STRONG to spend 5 Lakh to 15 Lakhs easily at a go...

Mostly during illness people might have to sell their PROPERTY, GOLD and OTHER VALUABLES or dig deep into their savings to meet these medical needs.

People also end up BORROWING money from others, sometime at higher Rate of Interest.

But HEALTH INSURANCE helps to SAVE hard earned money by just paying some REASONABLE PREMIUM,

BUY  HEALTH INSURANCE STAY CONFIDENT and PROTECT YOUR WEALTH.

Because There's nothing more important than a good health. That's our principal Capital Asset.

Doctor Saves Life...... And We (health insurance providers) ....... Saves your Lifestyle.

Understand, Why we need health insurance, then call me @ 9958781151

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Submission of Investment Proof

Third quarter of this current financial year 2017-18 is near to end. All employees who earn more than taxable limits has to submit their investment/expenses proof, which makes them eligible to get benefit of tax saving option provided by Income Tax Department, to their Employer / HR department for the year 2017-18.

Since the Income Tax Department made it very clear to all employer to verify the geniuses of each claim made by their employee  (vide Circular No.01/2017). This submission is subject to TDS deduction on Salary. Employers have right to act as per guidelines in accordance with the income tax rules to safeguard the interest of the organisation.

Here some list of document pertaining to Expenses/Investment proof needs to submit with employers for the TDS purpose.

Tax Section	Guidelines
Rent Payments	Monthly rental receipts Following information is mandatory in the rent receipt. Landlord’s name and address, signature of the Landlord. Landlord’s PAN or a self-declaration, in case the annual rent amount is greater than 1.0 lakh. Revenue stamp to be affixed for the cash payments.
Insurance Premium/ULIP/ Pension scheme.	Premium receipts paid during current financial year, in name of self, spouse, children.
Children Tuition Fees.	Copy of Tuition Fees paid to educational institution. Payment in nature of Donations, Capitation fees, Uniform fee, Sports fee, Van Fees, Shoes & Sock etc., are not allowed.
Public Provident Fund- PPF	Copy of the stamped deposit receipt, paid during current financial year or Copy of the Passbook with clear mention as PPF Account
National Saving Certificate (NSC) And Interest accrued on  NSC deposited in the earlier FYs.	Copy of NSC certificate in the name of employee. Copy of the NSC’s purchased in the previous FYs. Interest accrued will be considered as other income too.
MEDICLAIM – Deduction U/S 80 D – including preventive health checkup. Employee, spouse, dependent children, and parents	Copy of premium receipt paid during the FY. Receipt of payment of preventive health check-up of the employee or family
Tax Saving Mutual Funds	Copy of investment certificate with the employee name, Investment Date, Amount, Type of Investment. Only the investments made under Tax Saving Fund / Plan will be considered
ELSS (Equity Linked Saving Scheme)	Copy of investment certificate with the employee name, Investment Date, Amount, Type of Investment. Only the investments made under Tax Saving Fund / Plan will be considered.
Income / Loss from House Property- Let out Property	Detailed calculation of Let out house property's income/loss.
Principal & Interest Repayment of Housing Loan	Interest certificate from the bank/financial institution with the total interest and principal paid/due for the FY.
Post Office –Term Deposit with more than 5 year term.	Copy of deposit receipt
Tax Saving Fixed Deposits with Scheduled Banks.	Copy of Deposit Receipt invested during current financial year, qualified benefit under Sec 80C of the Income Tax Act
Medical Treatment on Handicapped Dependent – Deduction U/S 80DD	Proof of a. Expenditure incurred towards medical treatment, training and rehabilitation of a handicapped dependent ., or b. Amount paid or deposited under any scheme framed in this behalf by the LIC or UTI or any other insurer and approved by the Board for the maintenance of the handicapped dependent c. Form 10-IA
Medical Treatment Expenses for the specified disease  – Deduction U/S 80DDB	Medical Bills / expenditure incurred by way of medical treatment for a specified disease along with a certificate from a hospital in the prescribed form. Form 10-I
Interest paid on Higher Education Loan – Deduction U/S 80 E	Copy of Bank certificate stating that the loan and interest has been paid and amount payable during the financial year
Additional Deduction in respect of housing loan interest for the first house property acquired in FY 16-17 U/s 80EE	Maximum deduction u/s 80EE is allowed Rs. 50000/-. The deduction shall be subject to the following conditions: 1. Loan should be sanctioned during the Financial Year 2016-17 2. The amount of loan sanctioned for acquisition of the residential house property does not exceed 35 lakh rupees; 3. The value of the residential house property does not exceed 50 lakh rupees; 4. The assesse does not own any residential house property on the date of sanction of the loan. All proofs should be provided, as applicable for loss on house property.
Donations eligible U/s 80G	Employers may not consider all the Donations for taxation, hence employees have to consider the same at the time of filing their personal returns and have to claim the tax refund
For Self – Permanent Disability – Deduction U/s 80 U	Any Individual suffering from a permanent physical disability (including blindness) or is subject to mental retardation, on the production of medical certificate from Government Hospital in the prescribed form and manner, along with a Return of Income, shall be allowed a deduction of Rs.75000/-. Where such assessee is a person with severe disability, a deduction of Rs.125,000/- can be claimed. (Photocopy of certificate (Form – 10 IA) issued by the competent medical authority specifying the % of disability)
For Self – Permanent Disability – Deduction U/s 80 U	Form 10 I-A
NPS – 80CCD(1B)	Copy of the stamped deposit receipt, paid during current financial year and copy of the Passbook with clear mention as NPS Account

SUGGESTION TO EMPLOYEE ON TAX SAVING INVESTMENT/EXPENSES 

Please review your tax liability of the year in start of the financial year. 

Keep copy of all investment/ expenses related with year. This habit helps you and your employer to clear off tax liability and saves you from interest / penalty factor for less tax payment.

This habit also helps you to assess your options to invest in right investment scheme which are eligible under section 80C.

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How To Link Aadhar No. With Insurance Policies ?

On 08th November 2017, IRDA (Insurance Regulatory And Development Authority of India) issued a Circular No.IRDAI/SDD/MISC/CIR/248/11/2017  that linking your Aadhar No. and PAN is mandatory with all your insurance policies. Read this Circular is as below :

"Central Government vide gazette notification dated 1^st June 2017 notified the Prevention of Money-laundering (Maintenance of Records) Second Amendment Rules, 2017 making Aaadhar and PAN/Form 60 mandatory for availing financial services including Insurance and also for linking the existing policies with the same.

The Authority clarifies that, linkage of Aadhaar number to Insurance Policies is mandatory under the Prevention of Money-laundering (Maintenance of Records) Second Amendment Rules, 2017.

These Rules have statutory force and, as such, Life and General Insurers (Including Standalone Health Insurers) have to implement them without awaiting further instructions".

Why it is became so important to all policy holder? It is just to save your investment from any future fraud. We have to understand the importance to link Aadhar to LIC Policies and Linking of PAN to all insurance policies you are having. 

However the question is, How to link Aadhar No. to LIC Policies? Neither IRDA nor LIC company provided any facility to link their policies with Aadhar. Though there are two ways that you can link your Aadhar no with your insurance policies.

1. Link Aadhar / PAN while buying New Policy:

If you are planning to buy any new insurance policy then there are facility to link your Aadhar No. along with your PAN by providing a self attested copy with new proposal form. 

Therefore who are buying new LIC products should no need to bother now. The process will be completed by LIC itself before issuing a new policy to you.

2. Link Aadhar / PAN to existing LIC Policies:

As I told you, as of now LIC did not came up any online linking facility to existing policies. However you can visit your branch and link Aadhar & PAN to LIC Policies. Do remember to get an acknowledgement of the same.

LIC has the main problem that they don' have any centralized system to manage all policies and customer. It will be little problematic if you have policies from different branch but if it is from same branch then it will be easy.

You can make a list of all your policies with other details like Insured Person Detail, Premium (without tax) along with a letter and self attested Aadhar copy along with PAN/Form 60 (If not provided earlier) and put request to the concerned authority/ LIC agent to do the same.

It is clearly stated in this circular that every person/entities has to link their Aadhar with all kind of insurance policies including Group Policies.

Aadhaar Number has to be captured for both Customer and Proposer.

In case where the Aadhaar number has not been assigned to a client, the client shall furnish proof of application of enrollment for Aadhaar.

The various entities and whose Aadhaar Number has to be captured is clarified as follows,

a.       Individual : The Aadhaar Number of the Individual.

b.      Company / Partnership / Trust :Aadhaar Number issued to the person holding an attorney to transact on the Company’s/Partnership’s/Trust’s behalf.

Click here to link your Aadhaar with LIC Policies

Or  

if you want to link process manually/self by visiting branch, here is the Annexure (Application Format) 

What is Form 60? 

Form 60 is a self declaration provided as per requirement & filled by those individuals or person who does not have a PAN ( Permanent Account Number) and who enters into any transaction specified in Rule114B.

Who Require to provide Form 60?

Some person who have insurance policies but they do not earn as per Income Tax threshold limit then they can provide Form 60. 

Before signing the declaration, this declarant should satisfy himself that the information furnished in this form is True, Correct and Complete in all respects. Any person making a false statement in the declaration shall be liable to prosecution under section 277 of the income tax act,1961 and on conviction be punishable.

HOW TO LINK STAR HEALTH INSURANCE POLICY WITH AADHAR NO.?

Here providing you the link. Click here. You will be asked for Policy No., fill up and submit it. 

An OTP will be sent on your registered email ID and your registered Mobile No., fill OTP and submit.

Now provide your Aadhaar No. and PAN no. and submit.

A massage will prompt for successfully submission of PAN And Aadhaar No.


Don't go with any spurious  call to help to link your Aadhaar with Policy. 

Don't Share your personal details with any unknown person.

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