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Tax Savings And Products From Life Insurance Companies


wealthymattersInsurance companies provide insurance and that’s very important in itself. But long after some people have met their safety needs and perhaps even accumulated so much wealth and secured it in a way that makes life insurance plans to provide for bereaved dependents superfluous, you find them still opting for investments in products from life insurance companies….Ever wonder why ?The answer is that, never mind what most run-of-the-mill financial advisors say, a FEW of these plans do provide excellent returns, and help create wealth,  provided a person is wealthy enough to be able to wait the decades to realize the benefits of these returns or better still think in multi-generational terms. Further, intelligently played , these products offer a way of mitigating the risk of falling interest rates on savings that all of us face. Next factor in tax and the numerous tax advantages products from life insurance companies offer and you start seeing the wisdom in what these wealthy people do.

Aegon Life has published a tax guide on it’s website to help you explain all things related to taxes and tax-planning.

However, if you’d like to educate yourself in peace before dealing with any sales pitches, here’s what you need to know: Read more of this post

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Managing Your Health Insurance Premium Costs


wealthymattersA more equitable health insurance market is leading to a heavier burden on younger ,healthier policyholders.Many health insurance policyholders have seen their premiums go up 15-35% in this financial year, as insurance companies, including public sector firms, revise their premium rates.

The new health insurance regulations implemented by the IRDA in October last year,including the abolition of claim-based loading and the introduction of the lifelong renewability clause,are some of the main reasons why premiums have risen sharply.The first refers to the practice of increasing subsequent premiums for those who make claims. The lifelong renewability clause  is to ensure that older people with health issues  continue have access to health insurance.Apart from this, the new health insurance guidelines also allow insurance companies to raise premiums only when a policyholder moves to a new age band. Moving away from claim-based loading and mandating lifelong renewability means that younger people pay more. There is some cross-subsidisation otherwise it becomes impossible for senior citizens to afford health insurance.Most claims come in the age group above 60 years but companies cannot load premium beyond a point for this age group. Read more of this post

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