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Individuals often believe that they do not need a mediclaim cover when they are in the pink of health. However, a medical condition or a disease may be contracted at any given time, resulting in huge out-of-pocket expenses. Therefore, it is necessary to seek coverage to remain financially protected at all times. By doing so, you may focus on receiving quality treatment without any financial burden.

There are numerous aspects to keep in mind while choosing from among various health insurance plans such as premium cost, offered features, co-pay amount, and co-insurance, among others. One of the most important aspects to take into consideration is whether your insurance provider will offer you coverage for pre-existing diseases.

Understanding pre-existing diseases

As the name suggests, a pre-existing disease is one that exists before purchasing a mediclaim cover. This may include any health issue such as asthma, diabetes, high cholesterol, and high blood pressure, among others.

You may note that some health insurance providers are reluctant to offer coverage to those with pre-existing diseases. Such individuals are in greater need of medical assistance. They, therefore, are considered as high-risk individuals, who tend to increase the liability of the insurance provider.

The good news, however, is that some insurers do offer health insurance plans to those with pre-existing diseases. Some even provide services of wellness coaches to help you combat the disease. They guide you on a path to better health by offering suggestions that fit your lifestyle. Besides, such plans also provide cover for numerous medical expenses such as diagnostic tests, pharmacy costs, and medical consultation expenses, among others.

You may keep the following four points in mind while buying health insurance plans against pre-existing conditions.

1. Difference in insurance plans

Various insurers have their own eligibility criteria while deciding whether or not to provide coverage to individuals suffering from pre-existing conditions. While some health insurers take into consideration an individual’s entire medical history, some only take the past few years into account. You may, therefore, do your research and request medical insurance quotes from those insurers offering health coverage for pre-existing illnesses.

2. Nature of the disease

Insurance providers often look out for diseases that are chronic in nature, i.e. those which have a long-term effect. Hence, minor conditions like cold, fever, and cough are not considered as pre-existing illnesses as they do not have major side effects.

3. Failure to disclose a pre-existing condition

Many individuals fail to disclose the nature of their ailment to the insurance provider at the time of purchase of the policy. It is important to note that insurance providers may reject the insurance claim if you require treatment for such a condition.

4. Waiting period

While some insurance providers may offer insurance for those with pre-existing diseases, it comes with a certain waiting period. This is the timeframe that you must wait for before beginning to enjoy the benefits of the insurance policy. While some insurance providers have a waiting period of four years, some have a period of 30/90 days from the start of the policy date. You may, therefore, identify such insurers and opt for those health insurance plans that offer the lowest waiting period.

In case you suffer from any pre-existing medical condition, fret not. With numerous insurance providers offering coverage towards the same, you may choose from a plethora of options. You may either visit your nearest branch or buy health insurance online. By doing so, you may enjoy financial security and remain protected at all times.


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With exams around the corner, it is likely that you are worried about your child’s preparation. You disapprove of the last-minute studying and even admonish your child for starting to prepare in the last minute. But before you lecture your child for not having studied throughout the year, ask yourself whether you are responsible for such behavior? Is it possible that your child is learning to procrastinate from you? For instance, can you honestly say that your financial planning or planning for long-term goals such as retirement is on track? You may have dilly-dallied similarly, a habit that may have derailed or delayed your financial planning. So, why just berate your child and instead look to set an example.

The cost of delay in investing

As youngsters, most people think that we do not earn enough to save. According to anecdotal evidence stated by financial planners, most salaried individuals do not consider investing for retirement in the first five years of their career. The numbers don’t improve later either. In fact, a Reserve Bank of India (RBI) household survey found that less than a quarter of our population planned for retirement in 2016.

This can prove to be a big mistake in your later years. A lot of people realize that they should have started their retirement planning when they were young and had few responsibilities.

Let’s understand this with a hypothetical example. Ajay begins an SIP of Rs 5,000 in an equity fund at the age of 25. Assuming that the scheme delivers returns of 12% annually, Ajay would accumulate Rs 1.77 crore over a period of 30 years. However, if he delays his investment till he turns 28, his corpus by the end of 30 years would reduce to Rs 1.21 crore. Even if he enhances his savings by 10% each year, he will not be able to make up for the notional loss he incurs at the beginning of his career. This example is proof of the fact that what you invest in the first ten years of your career will account for nearly 25% of your retirement corpus.

Impact of delay in tax planning

Now let’s get to another aspect of financial planning: tax planning. Has your kid seen you breaking out into a sweat at the fag end of a financial year trying to collect investment proofs to deduct your taxable income? Does he or she often witness you making frantic phone calls to make last-minute investments? If so, you are indeed setting a poor example!

Last-minute investments can be risky

Delay in tax planning can cost you dearly as well. For instance, you can make a last-minute investment in an equity-linked savings scheme (ELSS) to get tax deductions up to Rs 1.5 lakh under Section 80C. In such a scenario, you will have to make an investment in a lump sum. But investing a lump sum amount can backfire. That’s because if you make a hurried investment in a month where the markets are volatile or on an uncertain trajectory, there are chances of you losing money.

On the other hand, if you choose to make periodic investments in an ELSS through the systematic investment plan (SIP) route, you stand to benefit on two counts.

Firstly, you average out your costs by buying lesser units when markets are high and a larger number of units when markets are low. This will help you weather the risks of volatility.

Secondly, an ELSS investment can help you meet long-term financial goals such as higher education of your children or building a retirement corpus. This is because ELSS helps in wealth creation and tax saving.

The same holds true if you buy an insurance plan towards the end of the financial year. While it is a good idea to augment one’s insurance cover, a last-minute investment just to save taxes may not work out. It’s always better to take time and research before you fortify your health cover. It’s also ideal to integrate tax planning with your financial plan at the beginning of a financial year to avoid exposure to unnecessary risks.

Lead by example

So, if you want your child to be proactive and not reactive, maybe it’s time to relook your financial behavior and set the right example by not procrastinating. By making timely financial planning decisions, you can not only gain control of your financial future but also impart a lesson or two to your child.


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As you begin trading in futures, there are some know-hows you must take care of. Talking about those considerations one by one, let us begin with selecting a broker.

Select a broker or brokerage firm: To trade futures, you need to create an account with a brokerage firm. Your broker must grant you the access to all the futures. You can also select a broker that specializes in the futures trading. To select your broker, the things to know are his commission rates, margin, trades he handles, service provided, customer service, etc. It is your choice to go for a full-service broker or a discount broker. A full-service broker will provide you an expansive service and advice and may charge a higher fee, whereas a discount broker will ask you to do most of the things and will obviously charge lesser.

Type of Futures Market: Almost all the futures contracts are same, but you should be aware of the broad groupings. The main categories of futures contracts are:

• Equity Index
• Agriculture
• Interest Rates
• Energy
• Metals
• Currency, etc.

You can choose what to trade. You may also continue with what you were doing before. Like if you are habitual in trading in stocks, you can do futures trading in equity indexes.

The type of Trade: A novice can begin trading with the buying and selling a futures contract. If you have a long-term vision, you start expecting to earn profits from the market. The losses ate limited because the price cannot go lower than the $0 even if the trade does not favor you.

Trading short is also active trading as it permits you to get the benefit of both the rising and the falling markets. You can also go for spread trading. With this kind of trading, you can enter a long and short position in the futures contracts simultaneously. This way you can get profit from the price difference between the two. You can also hedge against the risk this way. Another strategy of you is hedging. Here you can sell a futures contract to balance your position in the cash market.

Trading Nifty50 Futures: The advantage of trading futures is that the traders have access to any major stock index or currency in the futures markets. NIFTY50 futures provides a variety of options. Since India stands as a leading and an emerging market, the NIFTY50 futures contracts have become a fabulous trading instrument. Before you start trading the NIFTY50 futures markets, you must know these things:

• The NIFTY50 index is a leading stock market index for the Indian equity markets on NSE. Until 2013, it was known as S&P CNX Nifty Index.

• The NIFTY50 futures contract is priced in dollars, while the NIFTY50 index is priced in rupees.

• Trading on the NIFTY50 futures is similar to the trading hours from Monday to Friday. The timing is from 4pm of the previous day will 5pm on the present day.

• It has a low trading volume and low trading hours.


Forthcoming IPO Stocks to Keep a Watch For

by Vinaya HS on March 8, 2018

in Finance

The following post is a sponsored post.

Initial Public Offering is open to the public when a company sells its shares first time on the exchange. The stocks are bought by the investors and public. Then, they become the shareholders in the company. The investors and people invest in an upcoming IPO because they are able to buy the stock when it is underpriced and they don’t pay for the brokerages also. Forthcoming IPO stocks IPO stocks to keep watch for are:

Barbeque Nation Hospitality IPO: Heard of the most famous live Barbeque hotel chain? It is one of the most successful ventures in India. It is coming for a fresh issue and an offer to sell (OFS). The size of the issue is being approximated as more than 6500 Cr. Though the issue price is yet to be disclosed, this is the IPO worth watching. Their latest prospectus and financial performance are yet to arrive. This IPO can come anytime in December or next year. As per the Securities and Exchange Board of India, it is kept in abeyance pending the regulatory actions for the past violations. IIFL Holdings is the Book running leading manager (BRLM) for this IPO.

Reliance General Insurance IPO: This non-life insurance company is a part of Reliance capital. This company had filed for an IPO ion 10th Oct’17. It is coming for a fresh issue and an offer to sell (OFS). The size of the issue and the exact issue price is yet to be disclosed. This IPO will get listed on the Bombay Stock Exchange or National Stock Exchange. Their latest update on prospectus and financial data is yet to come. This IPO can come anytime in December. Motilal Oswal is the Book running leading manager (BRLM) for this IPO.

Hindustan Aeronautics: This IPO is coming for a fresh issue and an offer to sell (OFS). The size of the issue and the exact issue price is not known. This IPO can come anytime in December. SBI Capital is the Book running leading manager (BRLM) for this IPO.

Amber Enterprises: Amber IPO is coming for a fresh issue and an offer to sell (OFS). The size of the issue and the exact issue price is not updated as yet. Edelweiss Financial is the Book running leading manager (BRLM) for this IPO.

Gandhar Oil Refinery: Its IPO is coming for a fresh issue and an offer to sell (OFS). The size of the issue and the exact issue price is not updated as yet. This IPO will get listed on the Bombay Stock Exchange or the National Stock Exchange. This IPO can come anytime in December. SBI Capital is the Book running leading manager (BRLM) for this IPO.

Lemon Tree Hotels: Its IPO is coming for a fresh issue and an offer to sell (OFS). This IPO will get listed on the Bombay Stock Exchange or the National Stock Exchange. This IPO can come anytime in December. Kotak Capital is the Book running leading manager (BRLM) for this IPO.


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How to invest in stock market? How to get started? These questions can be rather scary for you, isn’t it? How much money you should put in stocks, stocks to buy today, which mistakes to avoid, etc. must be kept in mind. Here are a few pointers to help you invest in stock market and decide which stock to buy.

A beginning investor should ideally not start with the individual stocks. Buying a single stock is kind of riskier than buying a mutual fund that has a large group of stocks. But, if you already have a diversified portfolio of mutual funds and equity funds then you can have a few individual stocks because individual stocks may give you better returns. Also, if you build your portfolio by collecting stocks on your own, you will save a lot of money as you don’t have to pay to a fund manager.

How much to invest?
There is no fixed amount, but you can invest more when you are young and if you are close to your retirement, you should reduce your risk to ensure not to play with your capital. Take your age, subtract it from 110, and the percentage that comes should be what is invested in the stocks. Do know your appetite for risk.

How many different stocks to buy?

For investing in stocks, buy at least 15 different stocks in different industries to have a diversified portfolio. If you are a beginner, start with a lesser number of stocks.

How to choose a stock?

  • Start with a company that you are aware of, because at times a lot of investors buy stocks without understanding how these companies make money, and in such cases, they may have losses
  • Consider price and valuation. Investors often buy stocks that are cheap or lesser in value. But cheap is not always good, and expensive is not always bad. This is measured by the stock’s price-to-earnings ratio or P/E. P/E below about 15 is cheap and a P/E above 20 is expensive.
  • Compare a company’s P/E to other companies in the same industry. This will help you notice if it is cheaper or is more expensive than its peers.
  • Measure the financial health of the company. Study the company’s financial reports. The public companies release their quarterly and annual reports. Do go through the Investor Relations section of their portal.
  • Find out the revenue growth. In the long run, the stock prices increase when companies are making more money. This translates into growing revenue.
  • Check the company’s profit margin. A company that has a growing revenue and also has a reduced cost, will also have expanding margins.
  • Does the company have debt? Do know the company’s balance sheet. The stock price of a company having more debt will be more volatile.
  • Find a dividend or a cash payout to stock investors. It may not be a regular income for you, but a guarantee of good health of the company.


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While term plans are the simplest life insurance plans, buying one blindly may lead to untoward losses. A term insurance is a very important financial investment as it helps secure the financial future of your loved ones. However, if you buy a policy which is not aligned with your needs, you will be stuck with a policy that will not give you the expected benefits. Therefore, it is very important to make a well informed purchase when it comes to term insurance policies. So if you want to buy the right term plan for your loved ones, make sure you avoid these common mistakes:

Buying a Term Plan with Insufficient Cover

The main purpose of buying a term plan is to cover the expenses of a family in the event of the untimely death of the policyholder. However, if the sum assured is inadequate, the family members will end up struggling for their survival despite the insurance. Hence, it is very important to ensure that the sum assured in enough to sustain the current lifestyle of your family. Ideally, a term plan sum insured should be at least 10 times your annual income. While this amount doesn’t guarantee complete financial protection, it will at least provide some buffer time to your family to decide the next course of action.


Most people don’t think about insurance when they are young and healthy. Ironically, the best time to buy a term plan is when you are healthy and young. So ideally, you should buy a life insurance plan as soon as you begin earning. However, most people end up procrastinating until they have reached the middle age. Delaying insurance purchase will be a problem as the premiums will be significantly higher when you get older. Hence you will be unable to buy sufficient coverage when you need it the most.

Choosing a Term Plan for Short Terms

This is perhaps the most common term insurance buying mistake. Many individuals opt for cheap or short-term plans in order to save some money on the premium. However, in the long run, this will end up costing them more. For instance, if you buy a policy at the age of 25 for a term of 10 years, you will need a new plan at the age of 35. However, by this time, the premium will shoot up considerably. Moreover, if your health declines due to some unfortunate reason, insurance may be denied altogether.

Withholding or Misrepresenting Information

When you buy a term insurance policy, disclosing all information correctly is very important. Withholding or misrepresenting information of any kind will lead to dire consequences. An insurance company may declare the policy null and void if it learns of any undisclosed or misinterpreted information.


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If you are in favor of investing in risk-free products like fixed deposits or government securities, think again. When you look at the rate of inflation, these fixed-income securities often deliver lower than inflation returns.

Historically, when you look at any long-term investment, equities seem inevitable. The opportunity to earn greater returns through higher risks favors equity investments. Having understood that equity investing is inevitable to build wealth over the long-term, the question is how to start your investments.

This becomes more difficult if you have never invested in stocks before. You may find it tough to determine where and how to commence. Equity investing may be done in two ways.

  • Direct investing in individual stocks
  • Through equity mutual funds

Although the primary objective of both these strategies is to earn higher returns, these are completely different strategies.

Direct investing

If you are not an expert with a thorough understanding of how stock markets work, direct investing may not be the best strategy. However, the lack of experience and expertise does not necessarily mean you cannot succeed. The possibility of making exceedingly high returns is limited.

It is also possible that you will achieve success only after facing several failures. On the other hand, there may be a situation when you are disheartened by your failures and may quit before you are able to make profits. Additionally, you need to stay abreast of all the market news and price movements to know exactly when to enter and exit your investments. Timing the market correctly is almost impossible even for the experts, which means you may not be able to get it right, as you are a relatively new investor.

Equity mutual funds

A better option to invest in stocks is through equity schemes offered by the various asset management companies (AMCs).One of the biggest benefits of investing in such funds is the inbuilt diversification. Experienced fund managers choose different stocks to invest the fund corpus, which provides portfolio diversification.

Here are three benefits of investing through equity funds.

  1. Regulatory framework: Certain investment principles and pre-specified philosophies guide every scheme. This allows you to choose a mutual fund that most appropriately suits your personal needs and financial objectives.
  2. Smaller investments: This is one of the most beneficial features of these funds. You may invest through Systematic Investment Plans (SIPs), which do not cause financial distress. An amount of as low as INR 500 may be invested in these plans. In addition, you may choose to invest a specific amount on a certain date in your chosen funds. SIP investments give you the flexibility to increase or decrease the investment amount. You may also start and stop such plans at any time without any difficulties.
  3. Taxation: When you frequently trade in stocks, you may have to pay tax on your profits. However, the fund managers buy and sell shares, which ensure you do not pay any tax on such trading.

Choosing between direct stocks or equity funds through an SIP depends on your personal need and financial goals. It is important you consider all aspects before making your choice.


SIP – A Wiser Substitute to EMI

by Vinaya HS on February 23, 2018

in Finance

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The increasing number of loan options, including two-wheeler loans and personal loans, has made it easier for individuals to purchase a house, car, or start a business. Banks and financial institutions offer loans for short to long tenures, which may be repaid in equal monthly installments (EMIs). Considering the hassle-free loan procedure and its quick approval, most individuals choose loan as a convenient option.

However, not many are aware of the fact that an EMI may turn out to be a costly option, especially if it is a personal loan EMI. With an in-depth knowledge and market research, individuals may avoid the additional expense, which is incurred in the form of interest on the loan.

In order to repay the monthly installment, you might have to compromise on other expenses. Since the EMIs cannot be repaid within a short period, you will have to deal with the monthly outflows for a long tenure. Every expense you incur in a month will be calculated according to the EMI you are required to pay. This amount, if invested in an asset, could lead to maximization of your wealth. A systematic investment plan (SIP) in mutual funds may be an ideal alternative to EMIs. With financial discipline, you may ensure a monthly contribution in the scheme, which gives regular returns and has low risk.

Why an SIP is better than EMI

There are a number of reasons why it is better to invest in mutual funds via SIP before instead of applying for a loan at a later stage and paying the EMIs.

EMI is a huge expense

If you are paying an EMI in order to buy an asset which will give you a higher return in the long run, it is a wise choice. This may be for the purchase of a house. Further, if you are paying EMIs for the purchase of a mobile phone or for a car, then it does not make sense because the value of the asset will only decline and you will end up paying a huge sum as interest over and above the principal amount.

SIP helps create wealth

Both SIP and EMI require long-term commitments. In the case of an EMI, if you default in the repayment of the amount, you might lose possession of the asset. Instead, if you commit the same amount and invest in SIP, you will actually end up building a fund for yourself.

SIP generates long-term profits

An investment in real estate will only generate returns in the future. Any other asset will only decline in value with the passage of time. Hence, a loan taken for the purchase of any asset other than a property will show negative returns. On the other hand, mutual fund returns over the years will increase and you may avail of the benefit of compounding interest. With EMI, your outflow will remain constant and there will not be an increase in the long-term returns whereas with an SIP, the returns show an increase in the long term.

EMI remains a fixed monthly outflow

There is no escape from the culture of EMI. It is a debt trap you get yourself into. Once you have committed to pay an EMI, your expenses will be guarded by them. Every decision you make will have to include the aspect of EMIs until the time you have repaid the entire loan amount. This could take more than seven to ten years. Remember, an EMI will only get you an asset; an SIP will help you build a fund to purchase an asset without a debt.

SIP helps save on high interest rates

If you are planning to purchase something in the future, you may start saving early and invest in SIPs. This way, you may avoid a loan and save on the interest payment as well. There is no point complaining about a surge in interest rates; they are not going to fall. There could be a minor adjustment in the same, but not a significant decline. In case of SIPs, you may invest an amount as low as INR 500 and eventually increase the sum. With every investment, your fund will be growing and based on your long-term goals, you will be able to build a corpus. You may easily invest in SIP online and let the fund grow.

Angel Wealth offers a user-friendly mobile application that runs on an ARQ investment engine. The engine is free of human intervention and runs on algorithms that provide personalized investment recommendations to you. Based on your investment criteria, the mobile app will offer recommendations that will help you invest in SIP online and maximize your wealth.

Download the app today and invest anywhere, anytime.


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In order to achieve wealth maximization, it is important to chalk out your long-term financial goals. The decision to invest across different avenues should be based on these goals and the tenure within which you want to achieve them. Prioritize the goals before you make an investment decision and choose assets that offer a higher return with low risk.

One of the most important principles of investment is to remain focused. Analysts suggest that constant stressing or daily valuation of the portfolio leads to irrational decisions and does not allow the investment to grow.

Importance of long-term investment in equity

Investors choose to invest in mutual funds for the diversification it offers. Additionally, it ensures that the risk is low and the returns generated are high. Mutual funds are managed by fund managers who invest in equity and debt options. It has been noted that stocks have shown higher returns as compared to any other asset class, although they are high-risk investment instruments. But the key to investment in equity is patience. Many investors do not have the patience to wait for a period longer than three years and they end up withdrawing the fund in case there is a fall in the market. Further, investors are impacted by the ups and downs of the market due to which they take irrational decisions and withdraw from a fund when it is not performing well.

It is always recommended that investors should invest in mutual funds for the long term. But it is not possible to remain invested for long, if you are short on liquidity or have an uncertain financial expenditure to cover. With equity funds, there is a benefit of opting for a Systematic Investment Plan (SIP). Depending on your financial goals, you may save and invest each month into one of the mutual funds. The SIP is ideal for long-term investment and investors should not stop their SIPs when the markets are low. In addition, with an SIP, you may take advantage of rupee cost averaging when the market is bearish. In other words, it means that when the market is down, with the same fixed sum of money, you will be able to purchase funds at a lower Net Asset Value (NAV), which will eventually reduce your transaction cost.

It is a clear fact that the longer you remain invested in an asset, the higher are your returns. This is primarily because the risk associated with an investment in equity smoothens out over a long duration. With mutual funds, the risk may be reduced to a minimum with diversification of funds. Irrespective of the ups and downs in the market, which may lead to an uncertainty in returns, you need to remain invested throughout the period. If you remain invested for a duration of ten years or more, you will notice that through all the market volatility, the corpus has only grown.

Most investors do not see any investment period exceeding three to five years; this is not enough to maximize wealth. Do not sell the stock when you see that the market is crashing; this way you will end up selling low. Some investors do not make any profits even when the market is at the highest, while some others make profits with average market volatility. You may deal with the volatility of the market as long as you are not making losses.

Invest in mutual funds to maintain a low risk throughout your period of investment. Successful investors make the choice after a thorough research of the market and do not make irrational entry and exit decisions. The purpose of any mutual fund is to allow systematic investment and to avail of the benefit of compounding of interest. Study the performance of the funds in the last ten years and compare the returns before making an investment. Avoid the noise in the market; let it not concern you. Also, do not follow every market move. Keep saving and investing on a regular basis. The investment will grow in the long term and help you maximize your wealth.

At Angel Wealth, you will be able to achieve your financial goals with customized investment recommendations. Download the user-friendly mobile app, which runs on an ARQ investment engine. It is free of human intervention and offers customized recommendations using algorithms. With the app, you will be able to make the right investment decisions and gain insights into different funds and their performance.


Benefits of Zero Balance Savings Account

by Vinaya HS on February 23, 2018

in Finance

The following post is a sponsored post.

Many banks have begun offering zero balance savings account to increase their customer base. Not many are aware that the zero balance savings account is actually the latest avatar of the no-frills account. The motivation behind the launch of this product is quite interesting.

People who belong to the low-income strata may not be able to keep a minimum average balance in their account for various reasons. Many of them are daily wage workers or earn a low salary. Until now, banks were not very keen to offer banking products to these people since the average balance they brought to the bank was low.

The launch of the Pradhan Mantri Jan Dhan Yojana and the magnitude of deposits that the scheme brought in changed the equation. Banks woke up to the fact that maybe the low-income group might be an attractive customer base after all. However, banks are not the only ones who benefit from such accounts. There are many incentives to customers who buy into these products as well. We’ll see some of them now.

These accounts have no minimum average balance requirement

A typical savings bank account requires the account holders to maintain a certain sum in their account every month, also called minimum average balance or MAB. But there is no such requirement in zero balance savings account, which makes it attractive to those who can’t afford to keep a minimum balance in their account each month.

No penalties if a minimum average balance is not maintained

In a typical savings bank account, if you don’t maintain a MAB in your account, you will most likely be penalized. The penalty will depend on the difference between your account balance and the MAB. This penalty is often steep which can be very expensive for someone who belongs to the low-income strata. With zero balance savings account, there is no such penalty.

You continue to enjoy interest on your account balance

When it comes to interest accrual, the zero balance savings account is no different from a typical savings account. You will continue to enjoy interest on your balance. Some private banks, like Kotak Mahindra Bank, offer as much as 6% interest on savings accounts. But please check with your bank to confirm the interest rate.

Free online funds transfer

Many people like to use net banking (NEFT/IMPS/RTGS) for its various benefits. You will be happy to learn that you can continue to use net banking on your zero balance savings accounts too. But please note, in most cases, you will be charged for conducting fund transfers through a bank branch.

Free passbook, cheque book and ATM/Debit card

Some banks, especially public sector banks provide their zero balance savings account customers with a free passbook, cheque book and ATM/Debit card. Other banks (most private banks) will charge a nominal fee for these services. But these fees are usually low because the bank is mindful of the low-income base of the customer, as well.

Zero balances savings accounts are here to stay. You will appreciate this fact better when you realize that as of December 7, 2017, India’s banks have cumulatively opened more than 30 crores Jan Dhan or zero balance accounts, including more than 18 crore accounts in rural and semi-urban areas. So go ahead and open a zero balance savings account.


Loan Against Credit Card

by Vinaya HS on February 17, 2018

in Finance

The following post is a sponsored post.

There is an increasing use of plastic money in the economy, which has made it easier for individuals to apply for a loan. Applying for a personal loan is a simple and hassle-free procedure, which is approved in a couple of days. A loan on a credit card is similar to a personal loan.

What is a loan against a credit card?

A credit card is issued by the bank, which allows you to borrow money for your immediate use and pay the same amount gradually in the future. Every card has a credit limit and if your requirement of cash is higher than the withdrawal limit, you may apply for a loan on the card.

Such a loan has an instant approval process. It is the quickest option to raise finance and is a type of unsecured loan. In addition, it does not require any documentation because the banks already collect your documents, including an address proof, an identity proof, and an income proof, when you apply for a card.

The loan may be repaid in monthly installments and it usually carries a maximum tenure of 24 months. The two important factors that make you eligible for a loan against a credit card are as follows:

1. It is important to have a credit card account in order to avail of the loan. (Certain banks offer loans to existing customers only, while a few banks offer loans to new customers as well.)

2. Once you have started using the card of a particular bank, ensure you maintain a high credit score.

When do you need a loan against your credit card?

A loan against the card is ideal in times of emergency when you require immediate access to funds. The banks will provide a loan against your card and charge a lower rate of interest than the interest charged on cash withdrawals. When you apply for a loan, the withdrawal limit will not exceed. It will remain the same, but you will avail of funds against your card. Banks usually transfer the amount directly to your account.

One important thing to note is that it is important to repay the loan and its interest amount within the due date in order to maintain a strong credit history. Also, a loan on your card should not be your only go-to option every time you require additional funds. Consider it as a last resort in case of an emergency, when you need instant funds in your account.


How to Use Derivatives to Hedge Risks?

by Vinaya HS on February 17, 2018

in Finance

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A hedge is a type of financial transaction which eliminates or reduces associated risks with another transaction. Similarly, derivatives are used in financial risk management by hedging a position to avert the risk of an adverse move in an asset. Derivatives are a financial instrument which is valued depending on the price of its underlying asset. Derivatives also constitute a contractual agreement between two parties that specifies which party has the right to sell or buy an underlying asset. Derivative contracts are generally categorized as swaps, futures & options. Financial derivatives are widely used to deal with multiple risks such as market, credit and operational risks. They are becoming increasingly important as options trading is used to hedge against price movements.

Hedging is done by taking an offset position for a related security, which in turn mitigates the adverse price movements. Derivatives have been used as a tool for risk management by most of the financial institutions as it is capable of breaking down the risks into smaller elements. Subsequently, these elements can be bought or sold according to one’s risk management objectives. Hence the original purpose of derivatives is to hedge and spread risks. In other words, hedging risks allows an investor to attain the desired risk profile.

For instance, an investor holding stock of a certain company may be concerned about the fall in its prices. However, he may still hold on to the shares for three more months due to tax issues. In case the investor decides to sell these shares at exactly the same price after three months, he can fully eliminate the risk associated with holding the shares. Therefore, he mitigated the risks by hedging the shares to his friend. On the other hand, hedging may not always be a good idea as the investor also ends up eliminating the risk of potential profit. If the investor’s shares would have appreciated significantly over the next three months, locking in the current price may turn out to be a bad decision.

Derivative trading has revolutionized risk management in the realm of finance. It allows investors to sell off unwanted risks which leads to effective risk management. In case of financial derivatives, specific risks can be dealt with and targeted and used for hedging against unwanted risks. As a result, market efficiency improves because the risks are sold off to other parties who are willing to accept them. However, derivative trading should be used with caution or they may turn out to be a financial threat.


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Life insurance is an important aspect of personal finance. It can be useful not only in providing a cover in case of emergency situations but also in maximizing the retirement benefits.

Three ways in which a life insurance can help you in your retirement plans are as follows:

1. Risk management

A life cover provides for the medical insurgencies and also take care of the required income in the old age. It can supplement the retirement needs by withdrawal or policy loans. Many banks and non-banking financial companies (NBFCs) provide a loan against a life insurance policy. Some policies provide long-term benefits in the form of medical cover and investments, which could be used in the later years of your life.

If the policy is structured correctly keeping in mind the long-term needs, it can cater to multiple needs during the old age. This would shield you against the medical risk and risk of running out of money after retirement.

2. Alternative pension

In case of the policyholder’s demise, a life cover would provide for the income for the surviving spouse. Although traditional insurance schemes mainly provide death benefit, there are a number of life insurance plans that cover the income during the later years of life.

The policy would supplement your income during the golden years. It would cover for your medical expenses and at the same time provide with the money required to sustain. There are a number of pension plans which also provide of life cover.

3. Transfer of legacy

Such insurance plans have tax benefits. A life cover can be used to transfer a sum of money to the next generation. This would be a tax-free asset for the beneficiary.

Some policies can also be used to pay estate taxes and ensure continuity in the family income.

A life insurance trust could also be established to avoid estate tax. This would reap benefits to the grandchildren.

These are the three ways in which a life cover helps you in the later years of your life. A comprehensive insurance plan keeping in mind the needs of your later years may give significant benefits. Thus, it is advisable to avail of a life cover and protect yourself from the unknown insurgencies that may arise in the future years.


Repaid your loan? Here is what you should do next.

by Vinaya HS on January 29, 2018

in Finance

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There’s a broad smile on your face now that you have repaid your loan. And why not. It is an achievement of sorts. You have withstood the test of time, discipline and patience to repay your loan. Your first instinct is to reward yourself with the money that no longer gets sucked out of your account every month as EMIs. But if you can overcome this initial temptation and redirect this amount for financial goal planning, you can end up increasing your money. The ideal way to do so is by using that amount to invest in a mutual fund through a systematic investment plan (SIP).

Why go with mutual funds?

You are already used to not seeing your so-called EMI amount. So, why fritter that money away when you have no loan to pay? Why not invest that amount instead? Investing can only help you increase your money. There are many investing options that can help you build wealth. There is equity, debt and there is mutual fund.

While equity can be quite risky, debt investments yield low returns. Mutual funds, meanwhile, sit somewhere between them. This is because your money is put in several sectors of the economy, which is known as diversification. This helps in reducing the risk factor and at the same time, have the potential to provide high returns.

You might ask how diversification helps in cutting down risk? Let’s go with a generic example. Say, you have put money on stocks and gold. The stock investment goes awry but the money you put on gold yields high returns. That means your stock losses are offset by high gold returns.

Even the most grizzled of advisors will tell you to diversify your investment as they help minimise risk.

There are many types of mutual funds available. Some of them are:

Equity fund: You can invest in several company stocks. You don’t have to invest in just one particular stock. The returns are high too. There is another advantage. There are professional fund managers who invest the money for you. They are specialists who can invest on your behalf. You don’t have to be a stock market savant. Hand over the money to them and they’ll do the rest. But do some research. Check which equity funds are performing well. Don’t invest in them blind-folded.

Debt fund: These invest in debt instruments, such as government bonds, treasury bills and corporate bonds. While equity funds can be a tad risky, these funds provide you a sense of stability. The returns may be lower compared to their equity counterpart. But they are not affected by market volatility. These funds are ideal for low-risk investors, especially those who are planning to invest in fixed deposits (FDs) or keep their money in savings accounts. Just a rich aside, debt funds can provide higher returns than FDs and savings account. But again, do your research before investing in one.

Balanced funds: Also known as hybrid funds. They are a blend of equity and debt. They provide the best of both worlds: reasonable high returns and stability.

You might think they’d be expensive to invest in. After all, investing in individual stocks or debt can knock you back a bit, financially speaking. But that’s not the case with mutual funds. You can invest as little as Rs 500 every month. Plus, you have your ‘EMI money’ too. You won’t have to twist your knickers to invest in mutual funds – an investment option that can help your money grow. Remember that the more you invest, the larger your final kitty will be. The war-chest can be used for your wedding, child’s education or even retirement.

Now, let’s talk about how you can invest every month. As mentioned previously, there’s something called systematic investment plan, also called SIP. You can use SIP to invest in mutual funds.

The advantages of SIP investment

Open ended – There are many investment options like Unit Linked Insurance Plans or Public Provident Fund that have a long lock-in period, ranging from one year to 15 years. This means you can’t withdraw your investment before the policy matures. You can but you’d need to pay a penalty. This is not the case with SIP investment. You can redeem it whenever you want. However, it is advisable to invest for the long run. Mutual funds flourish if you keep your money for longer periods.

Flexibility – You can choose your investment amount. You can also increase or decrease your SIP amount.

Rupee cost averaging – This is a way in which you can buy more units of the scheme when markets are low and lesser units when markets are high. To put it simply, SIPs buy more when the market is low and buy less when the market is high.

Power of compounding – Simply put, this means that the returns from your investments are reinvested into the principal amount. Thus, the longer you remain invested in a SIP, the more you stand to gain.

Tax benefit – If tax-saving is your primary objective, you can consider rerouting the EMI amount into a mutual fund known as ELSS, also called equity-linked savings scheme. Investment of up to Rs 1.5 lakhs in an ELSS scheme qualifies under tax exemption under Section 80C of the Income Tax Act of India. An ELSS, therefore, offers the dual benefit of capital appreciation and tax benefits.

The last word

Why not use your ‘loan amount’ to invest? You may be smiling now (and you should) because if you have repaid your loan. But that can soon fade away if you spend the money needlessly. That’s why it is ideal to look at investment opportunities. And right now, mutual funds are one of the best investing options. So, why wait? Take use of SIPs to start building a mini-fortune.

Franklin Templeton is a fund house that offers a plethora of mutual funds. You can click here to know more about the different funds on offer.


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The stock market has always been a preferred investment avenue for many. Considering the higher returns and market volatility, investors choose to invest in stocks for tax benefits and faster wealth maximization. Investors were issued physical certificates by companies in the past and the same has changed into dematerialized certificates where the securities are credited and debited from the trading account held by the investor in a bank.

It is important to note that the sale and purchase of shares can only be carried out through a demat account opened with a bank. If you have multiple accounts for some reason, you can close the inactive accounts and transfer the stocks to the one active account you hold. The benefit of closing inactive accounts it that you will save on the annual fees and charges that are payable to the bank.

How to consolidate multiple demat accounts

The entire procedure of consolidation of multiple accounts is quick and hassle-free. You can follow the below-mentioned steps in order to consolidate different accounts.

Transfer of securities

You can simply transfer your securities from one demat account to another by filling a delivery instruction slip. The slip requires information of the securities which are to be transferred. The slip should be marked as off-market transaction and the same should be submitted to the Depositary Participant (DP). In case of a joint account, you will have to submit the slip with the sign of both the account holders. If the target account also has the same account holders, the transaction will be processed. You and your joint account holder will be retained as the owners but the DP ID and the account details will be modified. After the completion of the transfer, the account with zero securities can be closed.

Securities with a lock-in

Certain bonds and funds come with a lock-in period and such securities cannot be transferred to the demat account. However, it is possible to transfer the securities. In order to do the same will have to rematerialize the securities. This means, the securities will have to be converted into physical certificates which can be held by you or they can again be dematerialized into a different demat account.


There will be nominal charges for the transfer of securities from one account to another. The charges vary from bank to bank.

Tax implication
There is no tax implication on the transfer of shares from one account to another.

You can easily transfer your securities from one demat account to another and save on the annual fees. Additionally, holding a single account will allow you to keep a track of your investments with ease. It does not make sense to hold multiple accounts that have securities scattered in each one of them. A single account will make trading easier and will make sure that the investments are organized in one place only.


Is Term Insurance a Smart Investment Option?

by Vinaya HS on January 17, 2018

in Finance

The following post is a sponsored post.

Individuals invest for a variety of reasons. While some make investments to meet their child’s future educational goals, others do so to meet their retirement needs. Some individuals invest to seek coverage against uncertainties in life. One of the best ways to protect yourself and your loved ones in case of an unfortunate event such as death is by investing in a term plan.

Understanding term plans

Term insurance plans are policies specifically designed to provide protection against unforeseen circumstances. It is a pure protection plan that offers coverage for a fixed period. In case of an untimely death during the term of the policy, your loved ones are entitled to receive the death benefit. The received amount may be used to meet financial obligations and to live a comfortable life even when you are not around.

Benefits of term plans

Many have a pre-conceived notion that investing in a term plan is not a wise decision. This is not true. Though term plans do not offer any maturity benefit in case you survive the term of the policy, it ensures financial security in case the worse was to happen. Hence, a term plan is one of the best life insurance options that you may consider while developing a financial plan.

To understand the importance of investing in a term plan, take a look at the following four advantages.

1. High sum assured

This is the greatest benefit of a term insurance policy. Insurance providers offer a high level of coverage at lowest premium rates. You may, therefore, choose a sizeable sum assured that will help to meet your family’s lifestyle expenses in your absence.

2. Income replacement

Term plans are a must for those who are the sole breadwinners in the family. As your income will cease to exist in case of an unfortunate death, your family will be financially burdened in your absence. They may find it difficult to make ends meet. A term plan, however, ensures that your family does not have to face such a dilemma. The death benefit provided in a term plan acts as an income replacement, thus offering financial protection to your family.

3. Provision of riders

Most insurance providers offer the option of riders along with term plans. Such riders provide additional coverage at an affordable cost. Some available riders are accidental death benefit rider, critical illness rider, and permanent disability benefit rider, among others. You may compare the various riders and enjoy enhanced coverage based on your needs and requirements.

4. Tax benefit

Premiums paid towards a term plan are eligible for tax benefits under Section 80C of the Income Tax Act, 1961. Besides, such policies also offer tax-free income on the death benefit amount. You may, therefore, invest in a term plan and reduce your tax liability to a great extent.

A term plan has its own benefits. It offers maximum coverage to those looking to protect their loved ones in case of an untimely death. Such a plan provides peace of mind, knowing that your family’s needs would be taken care of when you are no longer around. It is, therefore, important to remember that a term policy is an essential part of a good financial investment plan.


NIFTY Futures and Options Trends

by Vinaya HS on January 15, 2018

in Finance

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Talking about the Indian derivatives market, the Nifty Futures is closely followed and is very much popular. The Nifty Futures and Options is not only the most traded instrument, but also the most liquid contract too. Nifty Futures contract boasts of being one of the top index futures contracts that are traded in the whole world.

As you would be aware that derivative contract derives its value from an underlying asset, similarly in Nifty futures, the Index is the underlying here. So, the Nifty Futures derives its value from the Nifty Index. When the value of Nifty Index rises, then the value of Nifty futures contract also rises. And, when the value of Nifty Index decreases, the value if Nifty futures also decreases.

As of now, in the month of december’17, the Nifty Future contract (10505.45) is currently trending bullish. The trend is strong bull with low volatility In Dec series Nifty future shed 4.31 lakh position in OI. This means -2.43 % of Total OI in Dec series.

In the options segment, the activity is chiefly limited to the lesser puts even when the put call ratio is at a high. As per the recent trend, the activity is mostly inclined to the call option, though the ratio is still increasing. It can also be said that the Nifty call option is trading at discount, this has made market sentiment at an increased level and people seem cautious. The Nifty Put option is trading at premium so market is hopeful of bearishness.

Recently, the Nifty Put option added 1084.3 lakh position and Nifty call option added 681.19 lakh position in OI on cumulative basis. Talking in terms of value, Nifty Put option added Rs 6457.94 crore and Nifty call option has shed Rs -6046.38 crore on cumulative basis.

The recent trend can be understood with the help of this table:

Nifty call put data:


All You Need To Know About Put-Call Ratio

by Vinaya HS on January 15, 2018

in Finance

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The put-call ratio is a famous and much-talked-about tool. It helps the individual investors to determine the market sentiment.

What is put-call ratio?

As the name says, this ratio is calculated by dividing the number of traded put options by the number of traded call options. Generally, the Put-Call Ratio is calculated on the basis of the trading volume, but sometimes it is also calculated using the OI or open interest volume or total dollar value. One can calculate weekly or monthly values and moving averages to smoothen the short term daily figures.

Interpreting the put call ratio

You can never get the average value for the put-call ratio as 1 because the equity options traders and investors mostly purchase more calls as compared to the puts option. Most of the time, the average put call ratio is less than 1. It is usually around 0.7 for stock options.

When you see that the ratio is nearing 1 or is greater than 1, it indicates a bearish sentiment of the market. When the put-call ratio rises, it indicates that the investors are preferring to put their money in the put options and not in the call options. This also means that the investors believe that the market is moving lower or they are beginning to hedge their portfolios in the sell-off case.

So, a higher than average number means more puts are bought by the investors as compared to the calls. This way, the traders are betting against the underlying. When the ratio is near 0.5 or lesser than 0.5, it means a bullish sentiment.

The fund managers also use a popular strategy in which they purchase the index put options to protect their portfolios. As a consequence, the put call ratio for index options is higher than that for equity options. Hence, equity put call ratio is more used as a better signal of the market sentiment and the sentiment of the speculative crowd.

A higher ratio means that the investors are going towards the instruments that gain when the prices decline. The call is the denominator in the put call ratio, a decrease in the number of calls will lead to the increase in the value of the ratio. This again means that the stock market is signally towards the start to reduce its bullish sentiment.

To the contrarian investor, the put call ratio helps to decide when the investors are going either too bullish or too bearish. As we have discussed above, a high put call ratio means a bullish signal as it indicates over-bearish crowd and vice versa. The traders use this put-call ratio as a contrarian indicator when the values go to the extreme levels. Many traders will find a large ratio as an indicator of buying opportunity because the market is bearish and soon it will re-bounce. The traders foresee this by witnessing extremes of the ratio.

Check out live put call ratio values on BloombergQuint.


5 Successful Indian Share Market Investors

by Vinaya HS on January 15, 2018

in Finance

The following post is a sponsored post.

Having an inspirational figure in mind helps us excel in our respective professional fields as we try to follow them. The investors have their inspirational heroes too. Not only the international faces like Warren Buffett and Philip Fisher, but many Indian share market investors are also the dream hero of many.

Not talking about the short-term fake stock marketers like Harshad Mehta and Ketan Parekh, but some Indian fund managers have been able to create a unique way of investing, making them the star performers. Let’s talk about some successful investors in India.

Rakesh Jhunjhunwala

The first name that comes to our mind as we talk about the famous Indian investor is undoubtedly Rakesh Jhunjhunwala. Also known as, India’s Warren Buffet, he is a CA and the best fund manager in India. He is also a Film Producer and a trader. Rakesh Jhunjhunwala’s updated holding value is more than Rs 10,000 crore. The name of the investment firm of Rakesh Jhunjhunwala is Rare Enterprise. Since the beginning of his career, he has a risk and reward taking ability. He has a far-sighted imagination which has heled him earn huge profits.

Ramesh Damani

The net worth of Ramesh Damani is around 800 Crores. He is the Founder of Ramesh Damani Finance Pvt Ltd. Ramesh Damani is also called as the investment guru and is followed by many people. He began started his career in 1990 as a stock broker when Sensex was as low as on 600 points. Stock investing runs in his blood, as his father was also a successful Indian share market player. He has got 100 times return on his investment in Infosys.

Nimesh Shah

Nimesh Shah is the founder of the broking firm Enam. When the Indian stock market talks about a well-researched investor, his name tops the chart. He is a follower of the bottom-up approach to invest. He also researches all about the company and its competitors before he puts his bet. He is the one who is attributed to bailing Infosys when the IPO of the company has fallen flat.

Radhakishan Damani

Another god of investing is Radhakishan Damani. He became famous when his company DMart, one of the most successful retail, launched its initial public offering or an IPO. He is a silent investor in the stock market and keeps away from the lime light. Like Nimesh Shah, RK Damani also follows the bottom-up approach. He researches every company minutely. He has been investing in almost all the blue-chip companies of the country.

Ramdeo Agrawal

Ramdeo Agrawal is best known as a co-promoter of Motilal Oswal, one of the largest Indian broking firm. Warren Buffett is his idol, and he follows a similar strategy in investing his stocks. He prefers a concentrated approach to investing and invests when the stock has a strong performance track record. Another feather on the cap of Agrawal is that he had managed one of the most successful PMS in the country before it was given to an asset management company led by him.

For more business news, stay tuned with BloombergQuint.


Impact of GST on Health Insurance

by Vinaya HS on January 12, 2018

in Finance

The following post is a sponsored post.

The Government of India is introducing numerous reforms to bring out development in the country. One such initiative, the introduction of Goods and Services Tax (GST) was implemented to create a single comprehensive tax structure for the entire country. GST was launched on 1st July 2017 and was the biggest tax reform since independence.

All indirect taxes such as service tax, excise duty, octroi, value added tax (VAT), and central sales tax, were replaced by a single tax. The implementation of GST is expected to reap numerous benefits, such as removal of cascading effect, easy compliance, and simple administration, besides many others.

Impact of GST on health insurance

The implementation of GST has had an impact on numerous industries. The health insurance sector is no exception. Prior to the implementation of GST, the applicable service tax rate was 15 percent. This 15 percent comprised 14 percent basic service tax, 0.5 percent Swachh Bharat Cess, and 0.5 percent Krishi Kalyan Cess.

With the implementation of GST, the service tax became a part of GST. This had a direct impact on the health insurance industry. With the application of GST, the cost of medical insurance premiums has increased as they are largely affected by service tax.

The rate of tax levied on medical insurance plans has increased from 15 percent to 18 percent. This hike is applicable to both individual health insurance plans and family floater health plans. The increase of 3 percent indicates that health policies have become costlier. This will affect both existing and new policyholders.

You may understand the impact of GST on the health insurance industry with the help of an example. Assume you used to pay INR 10,000 (excluding service tax of 15 percent) towards your medical insurance policy premium. A service tax of 15 percent on INR 10,000 amounts to INR 1500, which sums up to a total of INR 11,500. However, the implementation of 18 percent GST would result in a levy of INR 1800 tax. This is an increase of INR 300, thus indicating that premiums got costlier.

Benefit of investing in a health insurance plan post GST

Though the launch of GST has made medical plans costlier, you need to think of a health insurance policy as an investment instead of an expense. Following are three major benefits of health plans.

1. Coverage against medical expenses

Such plans provide coverage against the ever-increasing medical inflation. In case of a medical emergency, the insurance provider covers hospitalization expenses, as well as pre-hospitalization and post-hospitalization charges. This would prevent you from making huge expenses from your personal resources.

2. Lower premium cost due to digitalization

You may benefit from lower premiums if you buy health insurance online. Due to lack of intermediaries and lower paperwork expenses, insurance providers pass on the benefit of lower costs to their customers.

3. Tax benefit

Another advantage of such plans is tax deductions under Section 80D of the Income Tax Act, 1961. You may avail of health insurance tax benefit on the premium amount paid. You may claim tax deduction of INR 25,000 on premiums paid for self, spouse, children or dependent parents. This extends to INR 30,000 in case your parents are 60 years old or above.

A health insurance policy has manifold benefits. It is, therefore, necessary to invest in such a plan, even if the implementation of GST has made it costlier. The good news is that insurance providers may lower the prices in order to attract potential customers. Insurers may cut down on expenses related to policy-issue and other charges to attract customers. Some providers may enhance their level of service and customer-buying experience. This will benefit customers to a great extent and help them avail of the benefits health plans have to offer.