Monthly Archives: July 2014

Benefits of buying Term Insurance Plan online


There are a huge number of insurance policies available in the market. Also, there are numerous platforms to bring them to the consumers. However, the combination of term insurance plan and online platform is the most successful one. We bring to you some of the advantages of buying a term insurance plan online.

term insurance

Cost

Cost, in terms of premium and amount assured, plays a major deciding factor to buy a term insurance. The online platform is considered to be cheaper than the offline counterpart by 50-70%. The reasons are quite obvious, one as there is no mediator therefore, the customer directly deals with the company. The only drawback is the competitive rates various insurance companies offer online. For instance, there are cases where customers have  purchased a term insurance plan at a certain price but, now the same plan is available at much less price with same amount of tenure and amount assured.

Flexibility

The online mode of buying insurance definitely comes with a lot of flexibility in terms of the kind of term insurance plan you would want to buy. One has to also conduct some research before buying a policy online as there is no agent to guide you with the right processes. However, it is much of a blessing in disguise as we often tend to buy policy under a laid back attitude in presence of an agent.

Claims Settlement

The only reason people are still apprehensive to buy an insurance policy through the online platform is the claim settlement process. The concern is justified also as there is no data to back-up the number of claims settled for the policies purchased online. The companies usually put up a compiled report of both online and offline claims settled data therefore, not giving a clear picture on this agenda.

Sum Assured

The sum assured in a term insurance plan through the online mode is higher than its offline counterpart. One reason as mentioned is the low cost involved in the entire process. Also, the marketing tactic can be given credit for it. The constant pop-ups online with lucrative lines such as “One crore term for just Rs 500 a month or Rs 17 a day” definitely lures you as opposed to an agent trying to convince you for a certain policy.

Home Loan Tax Exemption Changes to Rs. 2 Lakh


It seems that the Union Budget report of 2014-15 has sprung a pleasant surprise on home loan borrowers, by hiking the deduction on home loan interest under Section 24 from Rs 1, 50, 000 to Rs 2, 00,000. This will enable purchasers to save an additional amount of almost Rs 15,450 from their tax liability. Enhancement of Section 80C’s limit is also positive for those, paying large EMIs but are still not getting full tax benefits on the repayment.

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The hike is also expected to lower the interest rates for home loans. So in case someone is planning to take a housing loan of about Rs 25,00,000 at a 10% rate of interest, for a period of 20 years, the EMI will be around Rs 24,125, which adds up to almost Rs 2, 89,500 annually. Also Post-Budget, the buyers can avail a deduction of about Rs 2,00,000 from their taxable income. This will enable the buyers to save around Rs 61,800 from tax liability but only if their income comes in the tax bracket of 30.9%.

Experts believe that buyers in big metros like Delhi, Mumbai and Bangalore, where most flats cost more than Rs. 1 Crore, would not be affected by this reform. However, this will be an incremental difference in case of homes within the price range of Rs. 25 lakh to Rs. 50 lakh, which may or may not be located in the metropolitan cities.

It is said that the benefit of this hike will be more in case of the salaried class, compared to the rest to some extent. Flat buyers in case smaller cities where prices are expected to be comparatively lower are expected to fee the real difference of the hike.

Tax-saving

Many property experts also believe that the current relaxation existent in the FDI norms for real estate are also expected to open up a new stream of cheaper money for developers, with the tax hike. They also say that the tax pass through status for Real Estate Investment Trusts (REITs) to avoid double taxation will bring in more investments into the property development sector.