Term Life vs Traditional Life Insurance Plans: Which Option is Better for You?

The best term insurance plans | Value Research

When it comes to securing the future of loved ones and family members, two options come to mind: term life insurance and life insurance plans. However, people still prefer life insurance plans to term insurance because of traditional beliefs. The approaches behind selecting each one of them differ from individual to individual.

The needs, requirements, financial capacity, risk appetite, etc., of people are not the same. Thus, before coming to any consensus, it is important to get an in-depth insight about both term life as well as traditional life insurance plans.

What are Traditional Life Insurance Plans and Term Plans?

  • Traditional Life Insurance Plans:

Traditional life insurance plans provide the insured and the nominees with complete financial coverage in an emergency. It helps to manage the risk to a great extent. There is no specific term period specified in the traditional life insurance policy.

  • Term Plans:

With term life insurance, the policyholder’s nominees will get complete financial coverage regarding death benefits. There is a specific period with term life insurance.

Traditional life insurance policy includes the maturity benefit with a death benefit. However, Term life insurance includes death benefits. There is no maturity benefit with it. The premium on the term life insurance is quite affordable and reasonable. Traditional and term life insurance comes in tax exemption under section 80C of the Income Tax Act, 1961. Hence, both term vs life insurance have their set of pros and cons.

Which Option is Better – Term Insurance vs Life Insurance?

Each of them holds its respective benefits. For example, some prefer to choose the benefits of term life insurance over traditional life insurance or vice-versa. Here are some factors that will help you select one among both.

  • Flexibility

One can easily surrender the term insurance plan. Instead, policyholders can convert the term plan into an endowment plan. Here, they just need to increase the regular premium to do so. However, if you have a traditional life insurance plan and you didn’t pay the premium, then you will lose the maturity benefit with all policy benefits. Hence you need to choose the policy considerably.

  • Tenure

The criteria followed by insurance companies to provide a term insurance plan are quite different. It is based on the individual’s age, income, financial responsibilities, and loans. A policyholder can choose a maximum term period in term insurance as specified by the insurer. With traditional life insurance, one can opt for a longer term period, which comes with death benefits as well.

  • Death Benefit

Traditional life insurance pays maturity benefits, and beneficiaries will get the death benefit in case of a policyholder’s demise. However, term life insurance pays death benefits in case of the policyholder’s demise. There is no maturity benefit with term insurance. This implies if the policyholder outlives the term period (specified in the insurance contract), then there will be no payout.

  • Premium

This is also the major factor which you must consider. If we consider the term insurance plan, then the regular premium is relatively cheap and affordable. However, the premium in a traditional life insurance policy will be comparatively higher. In addition, there will be additional charges in case you skip paying individual premiums. Hence make a choice considering the premium of both policies.

Conclusion

The concept of both traditional as well as term life insurance policies has been well explained. The readers have a complete idea about it, so they can accordingly opt for it. There are several insurance companies providing both the plans – traditional life insurance and term insurance policies.

You can check the website of insurance companies and then choose the policy that best fits your requirements, budgets, etc. For example, you can choose a Tata AIA Life Insurance policy as per your needs from the website of the insurer. Do not miss to consider tenure, age and premium amount. You can use the term life insurance calculator as well to make the correct estimate.

3 Major Investment Plans Helps You Achieve Your Life’s Big Goal

Goal Setting - Investing for your Life Goals - ICICI Blog

Investment plans are the go-to resources to accumulate money for future requirements. Several people benefit from investment plans that aim to provide higher returns than a regular savings plan. You, too, can benefit from the best long-term investment plans for an upcoming life goal. But if you are unaware of the best methods capable of providing higher returns, don’t worry. Here you will get detailed information on those investment plans.

Top 3 Best Long Term Investment Plans in India

The basic characteristic of a great investment plan is that it can provide a much higher return than any other plan for the same investment amount. But when several plans can provide such returns, it becomes tough to select the best among them all. So, here is a list of three investment plans capable of providing much higher returns than any other plan for ready reference.

Life Insurance Plans

A life insurance policy is one of the most invested plans in India. Even though there might be people unaware of other investment modes, there won’t be a single person who never heard of life insurance. This popularity is due to the great benefits that life insurance policies can provide.

How It Works

An insurance agency provides several life insurance policies which a potential customer can choose depending on their requirements. The customer becomes a policyholder upon purchasing a plan from the insurer in return for a premium amount. The premium is payable through different monthly, semi-yearly, or yearly modes.

The plan is valid for a fixed-term duration and sometimes can have the return of premium and even interest on the premium. If the policyholder meets an untimely demise, the nominee of the policy will get death benefits from the insurer.

Mode of Purchasing

A potential policyholder can directly contact the insurer to purchase a plan. They can buy an insurance plan online through the website or offline mode through an authorized insurance agent.

Benefits

The major benefit of an insurance policy is that the family or dependents get funds from the policy in case of the sad demise of the policyholder. If the policyholder were the family’s sole breadwinner, the funds would keep them financially safe from debts and provide livelihood till they find some other source of income.

Fixed Deposits

Usually, banks and financial institutions provide fixed deposits schemes. Fixed deposits are the second most popular investment mode in India. And most people prefer it for the reliability that only banks can provide.

How It Works

The customer has to pay a large amount and keep it as a deposit with the bank for an extended time. With the increase in the deposit duration, the interest rate also increases. The bank deposits the amount with the earned interest into a bank account at the maturity date.

Mode Of Purchasing

Anyone can purchase a fixed deposit plan from a bank with an active account.

Benefits

The major benefit of a fixed deposit is the guaranteed return of money and high interest at maturity.

Systematic Investment Plans

Systematic Investment Plan or SIP is an investment planning methodology applicable to share market investment and similar securities-based investments. IT involves keeping aside a fixed amount of money every month for the sole purpose of investment.

How It Works

In a SIP, a person invests a fixed amount of money every month into shares, equities, bonds, mutual funds, commodities, gold, or other market-dependent investments. As the investment is systematic, there are no effects of the market position while investing money. It is because, through the years, these market fluctuations of ups and downs at the time investing will cancel each other out. And as the market value of every product mostly tends to increase over time, they can receive a hefty profit when they sell the purchased products after a few years.

Mode Of Purchasing

A person can purchase such securities through banks and financial institutions.

Benefits

The major benefit of SIP is the highest returns not seen in any other plan. But it comes with its own higher risks.

Conclusion

These three investment plans will prove to be the best long-term investment plans that you could ever choose. Through these, you can save a huge amount for any big goal in your life. Out of these three, life insurance is the most beneficial plan with assured returns and an added benefit of protection for life. A good method to ensure that the life insurance policy you select does not go in vain is to choose plans from a reputed insurance company.

The Information which Tax Accountant Must Be Aware

Income Tax Return or ITR for FY20 Can Be Filed Till May 31. Know Details

A tax consultant, often known as a tax accountant, assists individuals and businesses in completing their tax returns each year. This may entail extracting and analyzing data from their financial documents, such as wage, job, and mortgage accounts, as well as investment statements. In addition, a tax consultant must travel to meet with customers. Tax Accountant California might work for themselves, for the government, or a company. Their pay is also determined by their educational background.

People with a commerce degree will have an advantage over their peers. It would also be fantastic if they could gain professional degrees and courses to increase their qualifications and talents. The main professional courses and degrees that can be pursued to become a consultant are listed below:

  • CA, ICWAI, or MBA.
  • Tax Consultancy is a course that teaches anyone how to be a tax consultant
  • Course on personal development.

The rules used to generate tax assets and liabilities in a corporation or individual’s accounting records are known as tax accounting. Rather than one of the accounting systems, tax accounting is taken from the Internal Revenue Code. Tax accounting may result in a taxable income figure that differs from the income figure stated on the income statement of an organization. Because tax restrictions can speed up or slow down the recognition of some expenses that would normally be recognized in a reporting period, the disparity exists. These discrepancies are just transitory because the assets will eventually be recovered and the liabilities will be settled, and the discrepancies will be resolved.

A taxable temporary difference results in a taxable amount in a later period, whereas a deductible temporary difference results in a deductible amount in a later period. Here are some examples of transitory discrepancies:

  • Taxable revenues or gains that are recognized in the financial accounts either before or after they are taxed.
  • Tax-deductible expenses or losses that occur before or after they are recorded in the financial accounts.
  • Investment tax credits reduce the tax base of assets.

The necessity to recognize two elements, which are as follows, is the source of essential tax accounting:

  • Current year – Based on the expected amount of income taxes payable or refundable for the current year, a tax obligation or tax asset is recognized.
  • Future years – Recognizing a deferred tax liability or asset based on the expected impacts of carryforwards and transitory variations in future years.

The general accounting for income taxes is as follows, based on the preceding points:

  • Create a tax liability for expected taxes due and a tax asset for tax refunds for the current and previous years.
  • Create a deferred tax obligation for projected future taxes due, and/or a deferred tax asset for estimated future tax refunds, if transitory differences and carryforwards are involved.
  • Calculate the total tax liability for the period.

Tax accounting is a requirement for all entities. Individuals, companies, sole proprietorships, partnerships, and any variants of these entity ideas are included. Even nonprofit organizations are required to file annual informational reports with the IRS so that the IRS may decide whether they are following the rules for tax-exempt organizations.

What You Have to Know About Cryptocurrency?

Cryptocurrency and Taxes: What You Need to Know

Even the monetary world is undergoing digitalization. People began to make good use of cryptocurrencies. This technology ensures that the information and transactions you process on the internet are secure. It is difficult for users unless they are aware of the aim and role of the application. Start checking the Cryptocurrency news to remain up to date with the latest information.

Cryptocurrency exists in a variety of formats, with the stored value being the most straightforward. This currency allows you to lend, purchase, sell, and borrow money effortlessly, and you don’t need a credit score, a bank account, or identification cards to do so. Some coins can be used to transfer value more quickly and cheaply than traditional credit cards.

How Does It Get Processed?

When a coin has been developed previously, it usually employs decentralized procedures. Each currency relies on a distributed ledger, which is usually a blockchain, to handle financial transactions. Bitcoin was well-known, and it was first released as an open-source project. Some tokens are exchanged straight, and it has a complete record that ensures that digital data may be easily edited and copied, but bitcoin is incapable of doing so. It operates on a peer-to-peer basis with no middleman, resulting in low transaction costs.

A storage space, such as Coinbase, is required for the creation of a wallet for buying and selling bitcoins. If you want to begin investing, you will need to make the right exchanges. The task and its records are managed using blockchain technology. Only two different parties (sender and receiver) are necessary for the transaction that is employed while sending and receiving in the decentralized. You can also seek help from brokers who are knowledgeable about the subject. They will show you how to process and deal with this cryptocurrency for the first time when you use it.

Benefits Of Cryptocurrency

If you use cryptocurrencies, you will have the opportunity to receive all the perks listed below as a user.

  • It provides the best inflation protection. As demand grows, the value of the product rises steadily until it reaches its peak.
  • You don’t want to devote any more work or attention to keeping track of its transaction data.
  • It operates in a decentralized manner, with most of them being managed by developers.
  • This strategy is regarded as the most cost-effective method for completing a smooth exchange.
  • You will be given a private wallet to store the cryptocurrency that you earn there.
  • The transaction fees used to carry out this will be minimal. Beginners will find it simple to begin learning while working.
  • All the details will be kept private, and there will be no need for a middleman to access or operate them.

After you have learned everything, you will be able to use crypto-based currencies efficiently. You can stay up with the latest Cryptocurrency news if you are interested in learning about the rise and fall of the crypto industry. It will inform you of the current value of the coin you are working with and you can get a better understanding of your excellent investment.

All you need to know about international bond markets

The international bond market market can be defined as a market where domestic as well as international participants buy and sell bonds. A bond market is much larger in comparison to Equity markets in terms of investment. Just like other investment tools, bonds too have risks, indices, returns and volatility factors. The international bond market is expanding as companies find this to be the cheapest way of borrowing money. A company is able to reach more investors by issuing debts on an international scale. The two fundamental factors that are responsible for the growth of the international bond market are: The flow of capital which takes place due to international trading and second the agents that vary the terms such as the currency of denomination, on which they borrow and invest. There are three categories of international bonds:

  1. Domestic bonds : Domestic bonds are bonds that are traded in local currency. The trade regulations are also followed in the borrower’s country.
  2. Foreign bonds : Foreign bonds are defined as bonds that are issued in a domestic country by a foreign company and they use the regulations and currency of the domestic country. Foreign bonds usually have some special characteristics such as : a) Issuers are usually  governments of the foreign countries and private sector utilities. b) It’s a common practice to underwrite and organize underwriting the risks
  3. Eurobond : Eurobonds are bonds that are underwritten by an international company using domestic currency and then traded outside the country’s  domestic market. They are not sold in any specific national bond market and are usually issued by a group of multinational banks. The place where your Eurobonds are traded is known as the Euromarket. An Eurbond in the US dollar would not be sold in the United States.

The risks associated with bonds are similar to  those of equity or other money markets. We are often lured by the fact that by investing in foregn bonds we will be collecting interest income in multiple currencies. However investing in foregn bonds can be extremely risky for novice investors.One of the biggest risk associated with foregn currencies is currency risk.Currency risk means you are subjectected to potential losses which can be caused due to fluctuations in the exchange rates between the currency you hold and the currency you wish to invest in. If not considered this can turn your entire profit into loss. Also do not forget to go through the regulations of investments of the country you’re about to begin investing in. Hence it is always good to take help of brokers/traders for financial advice before you begin investing in international markets.They will guide you correctly regarding the pitfalls that come with investing in the bond market and hence you can take an informed decision.

Smartest Solutions for the Sales Tax Solutions

In this situation, it is advisable for the company to opt for the real normal Sales tax regime or the mini-real regime, which will allow you to quickly recover the Sales tax on investments. However, one surely needs to know how to calculate sales tax.

How to choose the company’s Sales tax regime?

The choice of Sales tax regime is materialized on:

  • The declaration of incorporation or M0 form, in the context of the creation of a company.
  • The declaration of creation of a sole proprietorship or form P0, in the address of the creation of an activity in own name.
  • In addition, following the creation of your company, the tax service sends you a letter which summarizes your tax choices.

Your company is subject to many tax deadlines related to your legal status and your tax regime: taxation of your profits, Sales tax, CET, payroll taxes, etc. It is important to know the taxes and duties that concern you in order to forecast your tax charges and anticipate your reporting and payment obligations.

Taxation of profits

All businesses are taxed on their profits. Depending on your legal status (sole proprietorship or companies), you will be subject to income tax (IR) or corporation tax (IS).

Sole proprietorship (craftsmen, traders), liberal professions and EURL (sole proprietorship with limited liability) are automatically subject to the IR (certain companies, such as SARL, SAS or SA, may fall under the IR optional). To determine the tax base, the actual costs of the business are deducted from the turnover (businesses subject to the micro-business regime benefit from a standard allowance). The profit is then integrated into the income of the tax household of the entrepreneur.

Companies (SARL, SAS, SA, etc.) are automatically subject to IS (EURL and EIRL can be subject to IS on option). The tax base is determined after deduction of the real costs of the company. It is the company that is liable for the corporate tax . The directors or partners are not personally taxed, for income tax purposes, except on the remuneration or dividends paid to them.

Companies collect Sales tax on behalf of the State: they invoice it to their customers and then pay it back to the State, after deduction of the Sales tax which they have paid themselves during purchases or investments.

The Sales tax tax regime is determined according to your activity and your turnover:

The basic franchise regime

The company is not liable for Sales tax. It has no declarative obligation to fulfill. It invoices its customers free of Sales tax and has no Sales tax to pay back to the State on its sales. In return, it cannot deduct the Sales tax paid on its purchases or investments. This plan is available to companies whose turnover does not exceed € 85,800 for purchase-resale activities and € 34,400 for service provision activities;

Want to buy Cryptocurrency – Go for Tezos coins

Today we live in a digital world where the trend of digital currencies is increasing day by day. There are different types of coins which the person can buy. If you talk about the best cryptocurrency, then the answer is straightforward. Buying Tezos Cryptocurrency is the best step of putting money into a good source. When you pay the amount, you get coins in return. The value of the currency is reflected in your Tezbox Wallet. If you want to make any payment in abroad, then you can use your Wallet. The best part about creating an international transaction is that you need not spend extra time converting your money.

The money is automatically transferred into respective currency, which means that if you are interested in making the payment in the United States, your money will automatically be transferred into dollars. Nowadays, the study of cryptocurrency is provided in many universities so that youngsters can learn more about them.

Amazing benefits of making payment through digital wallets

The introduction of the cashless system means that you need not make payment in cash. The use of electronic wallets has reduced the use of physical notes and coins. You can easily download the Tezbox wallet on your mobile phone to make payments. You can also receive payments from any part of the world, even if you are sitting at home. It means that electronic wallets are a rich source of making worldwide payments. Some people think that investing money into cryptocurrency is a wastage of money, but let me correct you that cryptocurrency will give you excellent profits in upcoming years. The education regarding cryptocurrency is minimal; that’s why the persons are not aware of it.

-Easy to use: The best part about using electronic Wallets is that they are easy to operate. Anyone can download digital wallets on their mobile phones and can use them by transferring money. You need not study any additional knowledge of using e-wallets. The apps are designed in such a manner that the person can easily make or receive payment. Every Wallet has a help center that helps the person to solve their doubts. When the person downloads the application, they get instructions that they need to follow while using Wallet. The person can run a single wallet account even if they are dealing in multiple cryptocurrencies.

Ensures safety: Safety feature plays a crucial role in attracting customers. The investment sources do not provide security; then, nobody will invest their money into them. There are many sources of spending money, so people choose only those safe sources. Cryptocurrencies are the most reliable mode of investing money as the cash is kept into wallets. It would be best if you had a username and password for opening your account. If you need to keep your account safe, you should update your account regularly to put high-level security. Never compromise with safety and security measures as they are the essential factors.

Why Bitcoin is a safety net for investors

While there are many cryptocurrencies available on the market today, Bitcoin is the most favored cryptocurrency. This is largely due to the fact that it was the first to be introduced in the market and has seen exponential growth over the years. But perhaps one factor that has led the bitcoin price to be so attractive is the safety net offered by the currency. In recent times, many people have been unable to access their money due to bank blockades. Greece is a good example of a country where people had very limited access to the money they had saved with their respective banks.

The bank blockades in recent years led to many people looking for alternative ways of saving with Bitcoin being a safety option. In addition, when certain organizations face sanctions from the international community, the only way in which the organizations can continue to receive funds is through bitcoins. In addition to bank blockades, the collapse of stock markets in different countries has also contributed to the wide acceptance of bitcoins. According to bitcoin news, investors who lost money in the stock market since 2008 have in one way or another invested in bitcoin as a safety net for their money.

In an economic crisis, it is common for the government of the day to employ various stimulus programs, which tend to devalue national currencies. Since investors only invest in a commodity that has some value, they are more likely to invest in bitcoin because its value has continued to appreciate over the years. Currently, many people view bitcoin as the best cryptocurrency to invest in because of the safety net it provides. This means that even in a financial downturn, the value of one Bitcoin will still be high and the price will spike just like it was the case of gold in the financial crisis of 2008.

Preparing For a Home Purchase after College

Future home buyers must create a plan to buy a home and stick with the steps. College students aspire to find the perfect home for starting their new life after graduation. Creating a plan to buy a home helps the students prepare ahead of time and avoid common mistakes.

Establishing Credit As Soon As Possible

Establishing credit as soon as possible improves the borrower’s chances of getting a mortgage after college. Typically, students get loans to pay for college and have the opportunity to set up lines of credit through a variety of credit card companies. It is necessary for the borrower to establish credit and maintain high scores. The borrower shouldn’t overextend themselves when establishing credit and must keep all their payments current. It is vital for the consumer to establish higher-than-average credit scores to qualify for better mortgages.

Managing Student Loan Debt

Managing student loan debt helps the consumer avoid higher-than-average income-to-debt ratios. Paying off a portion of their debt while they attend college makes taking care of debt easier when they graduate. The student should pay at least a quarter of their annual debt, if possible, each semester or quarter to keep the debt amount lower. When reviewing the consumer’s debt volume, the lender calculates their income-to-debt ratio to determine if the borrower can afford the mortgage with their existing monthly obligations. Lowering the amount of student loan debts helps the graduate increase their mortgage amount based on affordability.

How to Accumulate a Down Payment

One option for accumulating the down payment is to save up all extra money acquired through disbursements. At the end of each semester or quarter, the students receive a stipend check for any amount of financial aid that wasn’t used for college tuition or books. The student receives the stipend check and has the right to spend the money however they wish. If the student deposits the money in a savings account, they generate interest each month. Once they accumulate a substantial amount of money, the student can place the funds in a CD and generate a higher volume of interest.

Does the Borrower Want to Buy a New Home or Renovate?

When approaching a lender, it is best to know if the borrower wants to buy a new home or renovate an existing property. The choice will help the borrower determine what mortgage is best. For example, if they want to renovate, there are mortgages that offer additional funds for repairs and renovations. Buyers who want to explore their options can look at NRIA now.

Assessing Insurance Requirements

Assessing insurance requirements helps the borrower calculate the cost of monthly premiums. Standard requirements are homeowner’s insurance and, possibly, mortgage coverage.

College students create a plan for buying a home after graduation and complete each milestone while attending college. Student loan debt can derail the buying process and could lead to a higher income-to-debt ratio. Keeping and maintaining high credit scores helps the consumer qualify for better mortgages, too. College students who want to review their options are encouraged to contact a lender now.

4 ways to avoid losing money at trading

Losing money is a very common problem in the trading business. People start to trade with a great level of enthusiasm soon they lose confidence after dealing with few losing trades. Rookies often stop the trading search of the Holy Grail. But there is no such thing which can help you to avoid the losing trades. All the successful traders are making a profit by dealing with the losses. To protect your capital, you have to follow a safe approach to trading. Forget about taking an aggressive approach and try to create a unique method by which you can earn money even after losing trades.

Let’s explore four unique methods you can use to protect our trading capital. Follow the tips of this article if you want to become a successful trader.

Analyze the daily time frame

You must learn to analyze the daily time frame or else you are going to face many false signals. The rookie is always concerned about the high-frequency trade execution process. They are trying to earn more money by pushing themselves to the extreme limit. If you want to survive in trading, never forget the fact, lower time frame trading strategy generates false signals. Though the daily time frame analysis is a boring task, it can help you to find the best signals. Before you start looking for the trade setup, you should analyze the direction of the trend. Trading with the major trend is one of the most efficient ways by which you can save your investment.

Learn from the experts

The experienced traders can show you the path to become a skilled trader. If you break the rules and try to earn more money without learning from the experts, you should never try to become a fulltime trader. Use the copy trading in Australia term in the Google search bar and find some professional traders. Connect to a demo account and see how the professionals are executing trades in this market. Once you learn to deal with frequent losing trades, you can easily change your life and push yourself to the extreme limit. Remember the fact, trading is more like pushing yourself to the extreme limit. If you can succeed at trading, you won’t have to think about the losing trades. Be a smart trader and trade the market with discipline.

Learn to use a simple strategy

You must use a simple strategy to make consistent profit from this market. Those are using the complicated trading method are always losing money since they don’t have the skills to deal with too many variables. Instead of making things overly complicated, you should rely on simple logic. Forget about the traditional approach or readymade trading strategy. Open a demo account with Rakuten and start trading with the virtual dollar. Losing or winning should not be your main concern. Just use the practice account to curate a perfect trading method. Once you feel confident in your strategy, start dealing with things in the real market. Never break the rules of real-life trading as it can cost you your trading capital.

Aim for high risk to reward ratio

You should always try to trade the market with a high risk to reward ratio trade setup. Sadly, the naive traders are placing the trades by using the traditional 1:1 or even negative risk to reward ratio. But by doing so, they increase the risk exposure and blow up the account. But if you can trade the market with discipline, you can start making some serious cash. Forget about the complicated trading method and try to develop a strategic approach so that you don’t have to lose too many trades. Try to act like a smart investor who knows how to manage the risks. Unless you can recover your loss in trading, you should not be trading the market.