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Information provided on this newsletter has been independently obtained from sources believed to be reliable. However, such information may include inaccuracies, errors or omissions. suriseetaram.com and its affiliates, information providers or content providers, shall have no liability to you or third parties for the accuracy, completeness, timeliness or correct sequencing of information available on this newsletter, or for any decision made or action taken by you in reliance upon such information, or for the delay or interruption of such information. suriseetaram.com, its affiliates, information providers and content providers shall have no liability for investment decisions or other actions taken or made by you based on the information provided on this newsletter.
If you are one of those who have recently got your first credit card, or have had a credit card for some time but started using it recently, here is how you need to read your card:

Payment due date: The most important element in your credit card is the payment due date. If you don’t pay your credit card bills on the due date, you will have to pay an interest on the balance amount in your credit card. You will also have to pay a late payment fee. Credit cards usually come with a 45-days interest free period. This means, if you pay on time, you don’t have to pay any interest on your credit card spends. But after this limit, if you don’t repay then you will have to pay an interest that can range between 22% and 44% per annum.

Minimum amount due: Credit card companies give you an option to pay a minimum due amount. If you pay only this minimum amount, you will not be charged a late payment fee. The late payment fee is usually a flat fee of between Rs100 and Rs1,000 and depends on the amount and your credit card provider. However, you will still have to pay interest on the balance amount in your card.

Limits: There are three kinds of limits mentioned on your credit card statement: credit limit, available credit limit and available cash limit. Credit limit is always higher than your cash limit. If you have a credit limit of Rs3 lakh, the cash limit could be around Rs1.2 lakh. Credit limit is the amount you can use by swiping your card, while cash limit is the amount you can withdraw from an ATM. While you get an interest-free period for credit card spends, the interest on cash withdrawals kicks in immediately.

Account summary: The account summary gives you a break-up of your opening balance, when the billing cycle started, the last payment you made, the amount you spent in that billing cycle and any previous financing charges. It also gives you details of your past dues of even over 3 months.

Important information: This section tells you about things such as change in interest rates, change in the rate of tax or any revision in the features of your credit card. Read this section carefully to ensure that you use your credit card accordingly.

Transaction description: This section of your credit card statement will give you details of all the transactions during the billing cycling including: date and place of transaction, and its amount. In case of a discrepancy, alert the bank immediately.

Reward points: Many credit cards offer benefits such as rewards for using your credit card. The reward points table gives you details of how many points you have collected so far, how many reward points you earned in the billing month, lapsed point and the total points.

Source:http://www.livemint.com

Insurance is the small price one pays for his peace of mind. With right insurance in place, one can take risks and achieve financial freedom.

In today’s world, how you manage your money can prove to be the difference between your success and failure. We spend our everyday life in planning so many aspects of it, yet many of us fail to have a proper long-term financial plan for achieving financial freedom. One of the most important aspects of having peace of mind and a sound financial plan is to have good insurance. Many working people think the insurance provided by their employer is quite good enough and do not bother to look further. This is a huge mistake as such insurance plans often don’t cover all necessary aspects and might not provide the necessary financial cover when required. Hence, let’s understand the importance of insurance in your journey towards achieving financial freedom.

Cover for bad times
Life is uncertain. One day it can be all going your way and the next minute you might suddenly be in deep trouble. Insurance makes sailing on the rough waves on the sea of life a bit smoother and safer. Hospitalization costs can eat away a huge chunk of your savings and leave your financial plans in ruins. A proper integrated shield plan from an insurer makes sure that in the event of death, permanent disability or critical illness your family’s life does not stop.

One way to make sure that your insurance plan provides enough financial cover is to make sure you have enough life insurance to cover ten times your income if you have children less than 10 years of age and five times if you have children above that age. Also, one must make sure it provides enough protection to pay off debts like loans and mortgages.

Business and domestic stability
It is a must for any business owner to have proper insurance or the business might not be successful. Liability insurance and property insurance are two must-haves that safeguard you in the case your company damages a third party, or your company is a victim of some horrific accident. It is important to get data breach insurance if your firm deals with sensitive information and Workers Compensation insurance should your employees get injured on the job. You can save money by buying a Business Owner’s Policy (BOP) which would usually have all the insurances a typical business owner needs.

Although insurance is largely personal, it is important to have your loved ones insured to ensure long-term domestic stability. A proper policy would help pay off debts and make sure your family has a roof over their head if something happens to you. Often overlooked, it is important one gets Disability insurance because one of your most important assets is your ability to work and earn.

Long-term financial security
Once you have regularly paid your premiums over the years, you have long-term financial security because you can access those funds in various ways. Not only can you cash in the policy for a guaranteed income, you can access some of the monetary value and continue to protect your family for decades. The ability to fall back on the cash reserves you have accumulated over your lifetime gives you long-term financial security and can help you go through a bad period in life. Even if you don’t have any such emergency you can access the life insurance money through withdrawals or policy loans and spend it on education or opportunities you deem rare and valuable. It is important to determine one’s desired duration of coverage and buy a level-premium policy as surprise increases in premium can leave you panicking.

Protection for the common man
We live in uncertain times – a risk gone wrong or some tragic accident can wreak havoc if you are one of the “small guys” in your industry. Thankfully, insurance has come as a boon for the common man or the average middle-class individual. The truth is that rich and powerful people can afford to take risks since one wrong financial decision will not harm them but most of us can’t take financial risks (unless you are insured). However, insurance allows small guys to take risks that can pay off in the long run and saves the market from becoming a monopoly dominated by a few powerful players. Though a lot has been written about them earlier, it is difficult to explain how helpful life and health insurance policies are for the common man.

Peace of mind
Lenders require insurance because when financial risks go wrong – such plans can act as a safety net and help a person from going bankrupt. So, insurance can provide you with something very rare in the modern world, peace of mind. In fact, many have said insurance is the price you pay for getting peace in life. Ask yourself, “Would my death cause financial problems for someone?” If the answer is yes, you must immediately get life insurance – a product that can save your financial future from catastrophic effects of illness and death.

Retirement
Everyone wants to retire in peace. Although plans exist for insuring you against chronic illnesses and disabilities, there are many problems health insurance policies overlook. Such plans might not cover adult day care services, nursing homes and assisted living. You never know what life holds and it is important to get a plan that will take care of you as you get older. You might have a well-paying job, a happy family and be in the pink of your health but a sudden untoward incident can take it all away since the only thing predictable about life is that it is very unpredictable. Insurance can take charge of your financial life and ensure you or your loved ones are not in trouble when something unfortunate happens.

Source: http://www.moneycontrol.com

Your life insurance policy can be your lifeline if you avoid these mistakes…

Having adequate life insurance cover in your portfolio is a must. Life insurance is bought for many reasons which may not only include protection purpose but also to meet various financial goals of your life like child marriage, wedding planning and so on. Therefore, it becomes necessary to understand the main motive behind every life insurance policy. Here are few mistakes one should avoid while buying a life insurance for themselves:

Not Knowing The Purpose - Many of us buy insurance only to save ignoring the fact that life insurance is mainly bought for protection purpose. Life insurance policy helps in securing your dependents and your future liabilities if something happens to you. Providing you tax benefit is not a primary objective of any insurance policy. It is an additional benefit which every individual enjoys once they buy a life cover to protect their family.

Not Knowing The Premium Paying Term - For every insurance plan you have to pay a certain amount of premium. Every plan has different-different premium paying terms (PPT’s) as per the policy. Knowing the PPT will let you know the exact amount you are going to pay for that particular insurance cover. Also, you can calculate returns which you may get on your survival if it’s a non-term plan.

Not Knowing the Policy You Need - Do you need a ULIP plan? Or, do you need a term insurance to protect your long-term liabilities? It becomes very important to know which policy you need so as to cover your financial liabilities well. ULIP is a combination of insurance and investment basically giving dual benefit of growth and protection. On the other hand, Endowment plans invest in low risk instruments and offer guaranteed maturity benefits.

Not Knowing The Claim Settlement Ratio - One of the important factors to choose the insurer is knowing the company’s claim settlement ratio. Claim settlement ratio is the ratio of approved claims to the total number of claims filed. Therefore if you know the claim settlement ratio, you can make a better decision.

Source: http://www.moneycontrol.com
As one of the top insurance providers in India, Life Insurance Corporation offers a wide range of insurance products that suit the various demands of the insurance seekers. With the annual increase in the salary of an individual, the amount of income tax he/she must pay also increases. Tax planning plays a significant role to save your hard-earned money.


If you want to save on taxes, then there are numerous life insurance policies that provide an opportunity to save bundles on taxes. Moreover, it also enables you to save and invest your hard-earned money in order to reap the maximum benefits.

Tax benefits on various LIC insurance policies
According to the needs and suitability of the customers, LIC offers an array of different insurance policies. For the knowledge of our customers, here we have provided a list of all applicable tax benefit that people can avail if they own LIC policies.

The tax benefits provided on the payment of LIC premium comes under section 80C of Income Tax Act, 1961.

1.  Tax exemption offered under section 80C on life insurance policies from LIC:
  • If you have purchased a life insurance policy on or before 31st March 2012 in your own name or in the name of spouse or child, then up to 20% of tax deduction can be availed on the premium paid towards life insurance policy
  • In case, the life insurance policy is purchased after 1st April 2012 in the name of self/child/spouse, then the premium paid towards life insurance policy is eligible for the tax benefit of up to 10% of the sum assured
  • The premiums paid towards deferred annuity are eligible for tax deduction under section 80C of Income Tax Act

2.  Tax exemption offered under section 80CCC on life insurance policies from LIC:
  • Tax benefit under Section 80CCC is provided to the policyholders who pay the premium towards any annuity plan that guarantees pension payment in the later year, from their taxable income
  • Tax benefit under section 80C and 80CCC can be availed by the individual assessee and HUF assessee
  • If the premium paid in a financial year exceeds 20% of the actual capital sum assured, then tax benefit will be applicable only for the premium up to 20% of the sum assured
  • Under section 80CCC, the maximum amount of deduction that can be claimed is limited to Rs.1,50,000/-

3. Tax exemptions on LIC policies under section 80D: 
  • Under section 80D tax exemption is allowed for people who deposit a certain amount of money with the LIC for the support of a handicapped person. Generally, Rs50,000 is the limit for this deduction. If the handicapped person suffers severe disability then the limit increases to Rs1,00,000
  • Tax benefit under section 80D can be availed by individual assessee and Hindu Undivided Family (HUF)
  • The qualifying amount under section 80D is up to Rs15,000 and additional deduction up to Rs15,000 is applicable for the parents. If the parents are senior citizens, then up to Rs20,000 is permitted for the tax deduction. Within the tenure of the policy, the policyholder is allowed to make any payment of up to Rs.5,000 on account of preventive health checkups

4. Tax deduction on LIC policies under section 10(10D): 

Under section 10(10D) of income tax act, the death claim and maturity benefit received by the insured person are eligible for tax benefit. However, this section includes some possibilities like- 
  • Primarily, this tax benefit is applicable only if the main insurance policy is not issued under section 80DD or as a key man policy
  • Any benefit as sum assured received under a life insurance policy including the bonus amount is exempted from the tax deduction
  • Up to 20% of the actual sum assured is tax deductible for policies issued on or after 1st April 2013
  • Up to 10% of the actual sum assured is tax deductible for policies issued on or after 1st April 2012




Source: www.policybazaar.com
Please do not reply back to this mail. This is sent from an unattended mail box. Please mark all your queries / responses to suri@suriseetaram.com.
Information provided on this newsletter has been independently obtained from sources believed to be reliable. However, such information may include inaccuracies, errors or omissions. suriseetaram.com and its affiliates, information providers or content providers, shall have no liability to you or third parties for the accuracy, completeness, timeliness or correct sequencing of information available on this newsletter, or for any decision made or action taken by you in reliance upon such information, or for the delay or interruption of such information. suriseetaram.com, its affiliates, information providers and content providers shall have no liability for investment decisions or other actions taken or made by you based on the information provided on this newsletter.