Can you pay up a universal life policy?

Hey there! Today, let's delve into the world of Universal Life Insurance policies in Canada. If you're wondering whether you can pay up a universal life policy, you're in for a treat. We'll break down the nitty-gritty in a way that's easy to grasp, like having a chat with a friend over coffee.

Understanding Universal Life Insurance Policies

First things first – what's a Universal Life Insurance policy? It's like a financial Swiss army knife that combines life insurance with a savings component. The idea is to give you flexibility, making it possible for you to adjust your premiums and death benefits as life unfolds.

Now, the burning question: Can you pay up a universal life policy? Absolutely! "Paying up" essentially means completing your premium payments early, and it's akin to finishing your mortgage before the agreed term. It's a fantastic option for those who want to settle their policy sooner rather than later.

Also Know: Universal Life Insurance Benefits

Making Sense of Premium Payments

Premiums are the money you pay to keep your universal life policy alive. Here's the cool part – you have the flexibility to pay more than the required amount. If your budget allows, you can contribute extra funds to the policy, giving it a boost.

So, how do you go about this? It's straightforward. You can make extra payments on top of your regular premiums, essentially accelerating the process of paying up your universal life policy. Picture it like making extra payments on your car loan to own it outright sooner – same concept!

Benefits of Paying Up

So, you've heard about paying up your universal life policy, but what's in it for you? It turns out quite a bit! Let's break down the benefits in a nifty listicle, making it as easy to understand as your favourite to-do list.

• No More Premium Payments: Imagine that you've met your required payments, and now your universal life policy stays in force without the need for further premiums. It's like reaching the end of your mortgage – no more monthly payments, just the joy of ownership.

• Peace of Mind, Like a Fully Paid-Off Car: Picture owning a car outright, no more loan payments. Similarly, once you've paid up your universal life policy, it's yours to keep, and you can enjoy the peace of mind that comes with it. It's like driving your car without worrying about monthly bills – pure financial tranquillity.

• Building a Solid Cash Value: Paying up early means you've been diligent in meeting your premium commitments, resulting in a significant cash value buildup within your policy. This cash value is like a financial treasure chest that can be accessed in the future for various needs. It's your own little savings account attached to your insurance – talk about a win-win!

• Financial Safety Net for Future Needs: The cash value you've accumulated by paying up becomes a versatile financial safety net. Need some extra funds for unexpected expenses, your child's education, or even that dream vacation? Your paid-up universal life policy has got your back. It's like having a savings account you can dip into when life throws surprises your way.

• Flexibility in Financial Planning: With a paid-up universal life policy, you gain flexibility in your financial planning. No more worrying about budgeting for insurance premiums. It's like having an extra layer of financial freedom – you decide how to allocate those funds for your future goals and aspirations.

• Long-Term Financial Security: As you pay up your policy, you're not just meeting short-term commitments; you're setting the stage for long-term financial security. The cash value and the assurance that your policy remains in force without additional premiums contribute to a robust financial foundation.

• Savings Account with Growth Potential: Think of the cash value within your paid-up policy as a savings account with growth potential. The longer you keep it, the more it grows, offering you a valuable asset that aligns with your financial goals.

In conclusion, paying up your universal life policy in Canada is a strategic move with a myriad of benefits. It's not just about fulfilling obligations; it's about unlocking financial possibilities and ensuring a secure future. And hey, exploring a Universal Life Insurance quote online is the first step towards understanding how this tailored insurance can fit seamlessly into your financial plan. Your financial journey just became a whole lot easier!

Exploring Universal Life Insurance Quote Online

Now, let's dive into the exciting world of exploring a Universal Life Insurance quote online – think of it as your virtual menu for financial security. Just like you'd check out the offerings before choosing a restaurant, getting a quote online lets you see what's on the table in terms of a Universal Life Insurance policy.

Consider it a sneak peek into the universe of possibilities. Getting a Universal Life Insurance quote online is a breeze, and it's akin to browsing through your favourite online store. Here's the lowdown on why this step is crucial in your insurance journey.

When you're contemplating a Universal Life Insurance policy, the online quote is your starting point. It's like window shopping but for financial protection. With a few clicks, you input some basic details – your age, health status, and the coverage you're eyeing. It's as simple as customizing an order at your go-to online store, tailored precisely to your preferences.

Picture it like this: you're deciding on the features you want, much like choosing the toppings for your pizza. Your age helps determine the baseline cost, your health status ensures the quote aligns with your unique needs, and specifying the coverage is like deciding whether you want a regular or extra-large portion.

The best part? It's a no-pressure situation. This quote is like the appetizer before the main course – you get a taste of what's available without committing to anything. Feel free to explore different quotes online, just like you'd explore different sections of a menu until you find the perfect fit for your appetite.

And here's the kicker – it's all about transparency. You get to see the costs and benefits laid out, helping you make an informed decision. Once you've taken this step, you'll have a clearer understanding of what a Universal Life Insurance policy entails and how it aligns with your financial goals.

So, whether you're an experienced online shopper or just starting out, exploring a Universal Life Insurance quote online is your passport to a well-informed decision. It's your chance to navigate the world of insurance at your own pace, ensuring that the policy you choose is as tailored and comfortable as your favourite online order. Happy quoting!

Concluding Words

So, there you have it – the scoop on paying up a universal life policy in Canada. It's a smart move if you're looking for financial freedom and flexibility. And hey, exploring a Universal Life Insurance quote online is your ticket to understanding the costs and benefits. It's your financial journey – let's make it a breeze! Get in touch with insurance experts for more knowledge on it.

Savings Through Taxable Income: Proven Recipe of Millionaires

The tax system is complex and keeps on raising questions for many entrepreneurs. Starting with the question of which types of taxes are relevant for you and your company, through various tax obligations and deadlines that must be observed, to the question of how you, as a self-employed person, can save taxes.

More money through depreciation and lump sums

In order to properly save or reduce business expenses, it is first important to understand what it is all about. Depreciation is a decrease in value that ultimately helps you lower your tax burden. Business people show the depreciation of larger purchases; this loss lowers the company's profit and can thus lower the tax liability. The extent to which objects can be written off depends on the respective asset.

In addition to depreciation, lump sums offer you another option to reduce your taxable income regardless of the actual amount of the costs. Some of these so-called allowances or deductions are paid directly by the tax office. You have to have others in your own tax declaration specifications. In order to claim a flat rate, no evidence is usually required. Supporting documents are only used if the actual costs are higher than the flat rate. In this case you can claim these costs additionally.

Reduction of business expenses from tax

Business expenses play an important role as far as tax deductions are concerned. You are not referring to advertising in the sense of marketing but at the expense of working people in the course of their work and their profit diminish. This also includes contributions to professional associations and profession-specific insurance companies.

You can claim advertising expenses with the help of the flat rate. This is currently $ 1,000 per year. Married couples who are jointly assessed can use this even though one of the partners does not even reach the flat rate. For example, if one partner has advertising expenses of $ 800 and the other advertising expenses of $ 1,500, they can claim a total of $ 2,500, as in this case both partners are entitled to the full flat-rate advertising expenses.

The advertising costs include, among other things:

● Customer service,

● Application costs,

● Telephone costs,

● Account management fees,

● Training costs.

Deduct company cars from tax

Please note: The company car can also be tax-deductible. With a commercial use of 90 percent or more, you can save as much as possible, since all relevant expenses such as fuel and insurance for the vehicle can be deducted as advertising costs. In order to deduct travel expenses, it is mandatory to keep a logbook.

Deduct work equipment from the tax

The self-employed can also state work equipment as business expenses. It is important that at least 90 percent of these are also used commercially to be able to deduct them for tax services.

Work equipment includes:

● Office furniture,

● Mobile,

● Computers and laptops,

● Software,

● Professional support,

● Specialist literature.

Regulations for study and rent

Usually home expenses are not deductible. Under certain circumstances, however, the legislature still allows the removal of a private study. There are two prerequisites for this:

● If there is no other workplace available to you, you can deduct up to $ 1,250 per year as operating costs. This category includes, for example, people who work from home because their employer does not provide them with an individual workplace.

● If your study is the focus of your activity, the entire costs can be deducted. This is especially true for freelancers such as writers or freelance journalists.

So, you can save not only on rent, but also on energy, cleaning or renovation costs as well as the property tax with your home insurance.

Deduct company outings from the tax

On a joint excursion with the company, some costs come together: admission tickets, bills, trainers, or tickets make for extraordinary expenses. Here, you have to know that there are also tax exemptions: With up to two excursions per year, expenses of less than 110 euros per participant are tax-free. Further excursions must be taxed in full. If employees bring relatives to the company outing, the costs incurred will be charged to the respective employee.

As a result, the allowance is quickly exceeded. If the expenses exceed the amount of the exemption, they are considered a pecuniary benefit and must be taxed. Alternatively, the difference between the tax exemption and the costs actually incurred can be in the form of flat-rate wage taxis paid by the employer to the tax office. This is currently 25 percent.

Handicrafts and household services

Expenses for craftsmen, household help or gardeners do not reduce the taxable income, but can be deducted directly from the tax liability. Handicraft services related to the household, such as renovation or maintenance work, can almost always be deducted. The prerequisite is that the work is done in your own household.

In order for you to benefit from tax breaks for household-related services, it must be a marginal part of the job. It is also important that you participate in the so-called household check procedure and register your domestic help. You can only take advantage of this tax reduction if you receive an invoice or the contribution to be paid has been transferred. Cash payments are not accepted.

Special expenses: Tax deductible donations and health insurance

Special expenses include all expenses that do not fall into the category of business expenses or advertising expenses. From pension expenses to church tax, there are a number of expenses that can be deducted as special expenses. Here is an overview of possible special editions:

Deduct health insurance from tax

With the introduction of the Citizens Relief Act in 2010, the self-employed have the opportunity to deduct health and long-term care insurance contributions from tax. The contributions to statutory health insurance and long-term care insurance can be almost completely deducted. Note that there is also a maximum limit for pension expenses. If this is exceeded, only the contributions that exist within the framework of the basic benefits can be taken into account. Optional tariffs and additional services are not deductible.

For privately insured persons, somewhat different regulations apply, which are usually somewhat more complicated, as various, non-deductible additional benefits are often involved.

Donations in the tax return

Those who donate are doing good and can save taxes at the same time. As a self-employed person, you can state donations as special expenses in your income tax return. Companies consider this category under business expenses. In order for donations to be actually recognized as such, the following requirements must be met:

● They support charitable, charitable or church purposes.

● The donations do not constitute payment for something in return.

● They take place for voluntary and unselfish reasons.

● The recipient is from a tax office recognized as non-profit.

In order for the tax office to accept donations in your tax return, you must also provide evidence. For donations of up to $ 200, the deposit slip or a bank statement is sufficient. If the sum exceeds this amount, an officially recognized donation receipt must be presented.

Save on church tax

Anyone who lives in the USA and is a member of a religious community who is entitled to the collection of church tax must pay church tax. The amount depends on the respective place of residence and is divided into two percentages. For example, in some states, you pay 8 percent and 9 percent in other states. The church tax can also be indicated in the special expenses. Those who leave the church are accordingly exempt from church tax liability.

Tax deduction from private schools

The young have a right to education – and in private schools this right is expensive compared to state schools. If you send your child to a private school, you can also deduct part of the school fees for tax purposes. A maximum of 30 percent of the costs may be claimed, but may not exceed $ 5,000 per child. If the child attends a foreign school, this must be recognized by the State authorities in order to claim the costs.

Deduct maintenance from tax

Anyone who is obliged to pay maintenance can regularly deduct this from tax. The maximum amount here is $ 9,000 per calendar year. If the payments are specified as special expenses, one speaks of real splitting. This is where the tax performance principle comes into play. This means that the maintenance payments reduce the performance of the payer and increase that of the recipient. Ultimately, this leads to a reduction in your tax burden when you have to make maintenance payments. For this principle to take effect, the maintenance recipient must be on the income tax return sign.

Extraordinary burdens in the event of unexpected events

In order to avoid cases of hardship due to extraordinary burdens, these can also be claimed as special expenses. The limit up to which you can claim these expenses is determined individually by the tax office and is based on factors such as marital status and number of children.

Some examples of such extraordinary burdens are:

● Allergies: Medicines and therapies can be deducted as medical expenses. If you make permanent use of a drug, it is best to submit a permanent prescription to the tax office.

● Alternative medicine: These are costs that arise for homeopathy or herbal medicine. If a doctor has prescribed the treatments, an official medical certificate is not necessary.

● Funeral costs: If the estate is insufficient to cover the costs of a funeral, relatives can claim them for tax purposes. This includes costs for the coffin, flowers and wreaths as well as obituaries.

● Treatment costs: The health insurance does not always cover all costs incurred for a spa treatment or therapeutic treatment. Costs borne by yourself for accommodation or travel can be deducted from tax.

● Care costs: Age-related accommodation in a retirement home is not tax-deductible. However, if this occurs for reasons of illness, this is also one of the extraordinary burdens.

Punctuality and order pay off

It is helpful to deal with the unavoidable tax return not only when it is due, but for the entire financial year. Keeping your documents tidy and keeping your invoices and receipts carefully and orderly saves you a lot of work and time.

In addition, a separate business account of personal and professional income and expenses as well as the corresponding evidence to the tax office. In addition, you can easily keep an eye on your professional expenses.

Five reasons why life insurance is a great sector to invest in

Insurance is made now and then. It is good to keep investing in different types of organisations that give safety in the future. Investments help in the protection of financial losses. They also act as risk management for the future. These insurance are available by different insurance organisations. There are a lot of insurance companies that offer different types of insurance,and the investor can choose amongst their choice. Consumersadvocate.org are an excellent resource of online reviews of providers. Usually, these companies pool in clients risk and make payments that are affordable by the insurer. These policies are brought on an agreement between the client and the insurer.

What is life insurance?

It is important to learn about the life insurance policy before buying it especially if you are new at buying this policy. Any insurance policy you buy is a contract with the insurance company. The insurance policy holder can bring these policies according to their needs and goals. These policies protect for a specific period. There is also another set of insurance of whole and universal life,and this provides the lifetime coverage. Varieties under life insurance are a lot. The three major life insurance policies are;

1. Term life insurance:

The online term insurance plan provides financial protection for a specific period like suppose 10 to 20 years. Under the traditional insurance policy, the premium is paid,and the amount is the same for coverage and specific period that is selected by you. After that period these policies offer to continue coverage mainly at the substantially higher premium rate. Usually, the term life insurance is less expensive than permanent life insurance. It helps in meeting the needs of income under potential years during working years. It helps in paying the mortgage, college fees and helps in running the business. The life insurance is paid at once in a lump sum but not as regular payments as cheques.

2. Universal life insurance:

These types of life insurance are permanent life insurance. They are designed in a way that it can support life coverage. These insurance policies are flexible and can be monitored with higher or lower premium paid or coverage amount throughout the lifetime. These insurance tend to have higher insurance premium paid than the term life insurance. The usage of the universal life insurance policy is made for estate planning. They also focus on death coverage and in building the cash value. They also provide guaranteed death benefit coverage.

3. Whole life insurance:

This is a type of permanent life insurance that provides lifetime benefits. They also tend to have higher premium rates yet again they can be used for estate management tool or to preserve the income that is generated.

One can choose amongst the categories and take the best deal that suits them. These life insurance policies come with their benefits and can be altered with your respective choices. The life insurance policies are brought by the insurers to stay secured in the future and make a better life after retirement. All of us may have different motto behind buying these policies.

We have heard a lot about investment under life insurance policies,but no one knows the real benefits of investing under the life insurance policies. Any investment made is taken as an advantage because of insurance help in saving the future. It helps in keeping the money safe and using it later on when required. In this article, we will discuss the benefits of life insurance policies and why is it beneficial to invest in life insurance policies.

Five reasons why life insurance is a great sector to invest in?

There are many reasons why one invests in insurance policies. Some do it for an easy life after retirement, some do it to pay off their loans, and others make a financial investment to keep the money safe. All our needs vary from time to time and person to person. No single individual on planet earth is same and no investment made is ever wasted. There are a few of us who do it for our families; there is other who makes investments for an easy life,and there are many of us who see investments as a lifetime investment.

It has been now and then discussed about the life insurance,and they have given many points about the goodness in investing. We will provide you with the bets five benefits of life insurance policies.

Here are the top 5 reasons why one must invest in life insurance policies and why is it a great sector for investments.

1. Life insurance provides security and assurance:

Life insurance policies act as security for you and your family. It is safe to have a life insurance policy for you and your loved ones. This can also act beneficial for you in the long run. This is on amongst the important aspects that one might consider before investing into the policies. It gives an assurance mentally that there is enough security for you and your family during the tough times. These insurance policies help you feel safe and sound in tough times. Even if you die, your family is safe.

2. Helps with debt issues and acts as a retirement plan:

Life insurance policies will help you if at all you are in debts. If you are under debts, then the life insurance policy will make sure that your debts are cleared. This is because we do not want to see our families in debts or under pressure after we die. This gives your family the financial liability and will also make sure that your family is financially stable in tough times. It ensures that debts and such days never come to your family.

Life insurance, it also acts as a retirement plan when you get retired. After retirement, it becomes very difficult for you to sustain yourself and your family. Life insurance will help you let go off all your worries and help you live a peaceful life during your old age. At the end of this life insurance plans, you can make sure that you enjoy the fruits of your investments and have a good life.

3. Helps with long-term plans, dreams and gives mental peace:

If you want to have a huge business and have always dreamt about it, then it is the time that you invest in life insurance policies. They will help you in accomplishing your dreams and plans in the future. There are a lot of us who want to expand the business of our parents,and such investments will help you do so in the future. They can help you achieve your long-term goals.

Life is unpredictable,and it is important to keep your loved ones safe and sound. Your side always surrounds unexpected tragedies like life and deathand hence it is important to keep sound and safe. Life insurance can provide you mental as well as financial benefit. It helps in providing with financial stability, security and helps with the best cure in difficult times. These will bring satisfaction as an when you grow old.

4. Helps in business and tax savings:

Other than that it will also benefit your family and personal plans in the future. It helps in a great way to boost your business. There are various kinds of best life insurance plans,and one can save on these policies depending on their choice of investment and usage in the future. These let you have fixed income and paid benefits even if you are dead at one point in life.

A businessperson can avail tax benefits by investing in life insurance policies. There are various exemptions on tax and other benefits under the IT Department that can be availed by business or the person investing. People usually prefer to invest under the life insurance policy so that they can save up on taxes.

5. Begin as early as possible and also acts as a savings tool:

Please start investing as early as possible because it gives you a better deal and a good time to make the investment and avail better deals. With growing age, a man declines and hence it is important to start as early as possible. When younger, you might get better and cheaper deals. Hence it is convincing to invest in life insurance policies.

Undoubtedly, life insurance policy acts as a saving tool hugely. They help in saving money and grow in the future. This can act as your real life piggy bank where you are saving and using the money in future. There are policies that you can decide and invest in when you choose for life insurance policy as a saving tool.

Conclusion:

It is good to make investments and so are life insurance investments. It is a good idea to keep investing to get safer and sounder in the future. The conclusions can be drawn by the end of the investment and by making your life better.

How to Compare and Choose the Right ULIP Plan

A ULIP is an investment product launched by a few eminent insurance providers as compared to the more generalized form of insurance policies developed by others. It’s actually an integrated plan that creates both the opportunities of coverage and investment for the policyholder simultaneously.

The life coverage that you enjoy will claim a portion of your premium. The remaining portion is invested in a preferred fund so that you achieve a safety-shield for protecting the entire household financially. A ULIP plan yields great returns on the vested amount even in the event of any untoward incident. ULIP plans have always been preferred over other forms of insurance due to their lucrative features.

Things to consider while choosing ULIP plans:

Multiple funding options – When it comes to asset allocation, a plethora of options is created by the best ULIP plans in the industry. Compared to investing your entire savings in just a couple of funds, you may consider picking a ULIP plan with multiple funding options that offer a more diversified allocation in equities. A ULIP will help you gain a few additional investment options or an appropriate plan besides curbing your investment risks.

Choosinga plan online – These days, it has become a lot easier to choose an online ULIP plan due to their lucrative options. You may pick the right plan that matches your financial situation. It’s much easier to compare all ULIP plans online as you can check their features simultaneously.

The cost factor – You must pick a ULIP plan that seems more feasible in order to avoid the financial burden of meeting your premium. Your policy might lapse in case you’re unable to meet the cost of the premium. This isn’t a good thing for your financial situation.

Opportunity to switch – There are a few ULIP plans that yield the facility of switching between each of your funds. You’ll gain the flexibility to restrict investing in a certain fund and opt for another suitable fund of your choice.

Facility of redirecting premium – Choose a ULIP plan that comes with the advantage of premium redirection. It enables you to choose the right investment fund and percentage of premium that you wish to pay for it. You’ll even gain the flexibility of lowering and increasing the percentage depending on your changing financial needs.

You must ensure that your ULIP policy yields all the right features that other similar plans provide for. You must have the facility of transferring the accumulated investment from the current fund to a better one within your preferred time. It’s in your best interest to gain an opportunity for redirecting the premium in your chosen funds.

Gaining access to your wealth by way of partial withdrawal and loans is even important. You may also need to explore the option of paying your premium within a specified period while enjoying insurance protection and wealth accumulation for a longer duration. Besides that, you must also achieve tax benefits as per the Sections 10D and 80C of the Income Tax Act, 1961.

Benefits that come with a Child Insurance Plan – Find them out

A number of responsibilities and joys mark the beginning of a unique journey for a new parent. Parenting remains shrouded by challenges and at times it seems to be an uphill task. Successful parenting is all about nurturing the child and bringing him up to be a responsible and honest individual.

A parent is always concerned about brightening the future of their child. Security is one word that remains associated with your love for the little one. Right through the initial stages of growth, a child needs financial security. That’s one reason why financial planning is so necessary for securing your child’s future. You must identify the financial needs pertaining to your child’s education when the time is right and you actually feel the need to plan things. You’ll even need to allocate a portion of your savings for his college fees, professional courses and boarding charges among other things. It’s truly crucial for you to make your investments on a timely basis. A number of child education plans are now being rolled out by some of the most eminent insurance providers in their attempt to retain policyholders. A child education plan is also a good way of luring investors that keep an eye on the tax exemptions.

Child Education Plans Offer Benefits that Secure the Future of a Child:

Paying off College Expenses with the Maturity Benefit

Parents often want their children to grow up as successful professionals in the field of medicine, law, architecture, and engineering. In order to become a successful professional, it’s necessary for your children to pursue some professional courses in any of these areas. However, it has become increasingly difficult for you to meet all the expensive course fees for a long duration. You may even be compelled to apply for a children’s educational loan that meets the needs of fulfilling your child’s higher studies. The college fees may be inflated but the investment corpus accumulated during the maturity of a child insurance policy can be substantial if you aren’t wasting any opportunity of investing in such plans.

Escaping Deduction of Capital

The return on investments tends to vary with the fluctuating marketing conditions. You must consider adopting some dynamic allocation strategy for funds if you wish to make the most of your vested amount and keep capital erosion at bay. Certain privileges are offered under child plans in the form of Systematic Transfer Plans and Fund Selection benefits. These benefits enable you to make an investment planning according to your expected outcome through the various stages of your life. With an STP, you can even make the most of market fluctuations by transferring all of your fund units automatically.

Choosing Optional Riders

With some plans, the nominee of the insured person is entitled to achieve a waiver for the entire premium that’s to be met during the coverage tenure. Likewise, certain riders are developed to cover the insured if he suffers from a severe injury or ceases to exist during the policy period.

Meeting the School Fees

About 10% of the sum assured is to be paid by the insurance provider as soon as the parent opting for a child plan passes away. Again, till the end of the policy period, 10% worth the sum assured is supposed to be paid out towards the child’s education periodically every year.

Alongside a lucrative maturity benefit, certain comprehensive life coverage benefits are also offered under a child education plan. Compared to a few distinctive investment plans, there are a few unique advantages of investing in child education plans. While applying for a child insurance plan, you must check out if it yields adequate returns for securing the future of your child. Once you narrow down your choices, there’s nothing restricting you from securing your child’s future.

5 Personal Savings Tips to Put Your Savings on Auto Pilot

Putting money into savings is always a smart decision, but it's not always clear how to work that into the budget. After all, having the money sitting there in your checking just opens up the possibly of making unnecessary and impulse purchases. To take care of your hard-earned money, tese five tips will help you go from becoming a chronic spender to a chronic saver, all without having to change your habits directly.

Set Up Regular Automatic Withdrawals

Automated deposits are fast and easy because they happen without you having to worry about them. You should always have a comfortable emergency buffer in savings to help deal with any unforeseen expenses, preferably around six months of your usual salary. Automatically depositing a percentage of your earnings before you account for everything else is like paying your future self to save both time and stress. Set this up immediately if you haven't implemented a savings policy yet as it is the main thing that will help you start saving more.If you work hourly and can't figure out how to set up an automated savings schedule that works with your budget, consider small savings apps like Acorns and Digit that will round out all of your purchases and store the savings in an account for later use. You'd be surprised how much those little savings bits can add up!

Split Your Direct Deposit When Submitting to Tour Employer

Most employers pay by using direct deposit, but you don't have to have all of your funds deposited into one account. You can set up a percentage split with most employers that will see a portion of your income going directly into savings. You're less likely to pull it out of savings and spend it than you are if you leave it sitting in your checking account.

Switch to a Bank or Credit Union that Pays Interest on Savings

Stop banking with an institution that doesn't pay you a dividend on the money you're saving with them. Most standard big corporate banks like US Bank and Bank of America pay paltry interest rates on their savings accounts and charge account maintenance fees on top of that. If you're paying your bank to hold an account, then you're losing money you could otherwise be saving.Online-only banks like Ally and Capital One 360 offer competitive 1.80% APY on their savings accounts and often have multiple options that can be tailored to suit your needs, depending on the amount of money you're saving.

Consider Using a Cash-Back Credit Card for Daily Purchases

Instead of using your debit card for all of your necessary daily purchases, consider putting them on a cash back credit card that will give you a percentage of the purchase price in rewards. Currently, the PayPal Rewards Master card offers 5% cashback on every single purchase, with no rotating rewards categories.If you pay the card off each month and do not carry a balance, that's like getting 5% of what you would have spent back for more savings or to help with those everyday purchases further down the line.

Consider Shopping Around for Your Insurance Needs

If you've been with the same insurance provider for a while, chances are you've seen small rate increases on your bill over the years. These rate increases can account for a significant rise in your budget if you're not careful, so it pays to shop around for both car and house insurance periodically. Shopping around helps to ensure that insurance rates do not increase beyond your means and keeps insurance companies competitive for your business. For car insurance, you will need to have a spotless driving record and be comfortable haggling for rates, but you can always net a more effective rate by talking with your insurance company. Just tell them you're considering switching to a competitor who has a better offer. 9 times out of 10 they want to keep your business and will offer you the competitor’s rate if you stay.

What is funeral insurance — and is it right for me?

Your funeral is a final farewell and celebration of your life. Naturally your family would like it to be special. At the same time, you and they may worry about the price tag. According to the Funeral Directors Association of New Zealand, the average funeral may cost anywhere from $4,000 to $15,000, but can be even higher in some cases. This could be a huge financial burden for your family.

Funeral insurance is one way to help pay for your final expenses. But what is it, and how does it differ from other types of insurance? Let’s take a look:

Funeral cover vs. life insurance

Though they are different products, there are some similarities between funeral insurance and life insurance. Both types of policies generally have the same structure, but typically vary in their details.

Both funeral cover and life insurance pay a lump sum in the event of your death. This benefit can be paid either to a beneficiary of your choosing, or to your estate if you haven’t nominated a beneficiary. Usually, you must continue to pay premiums on your policy to be eligible to receive the benefit payout.

Each type of policy may also offer optional extras to “boost” the benefit amount in certain cases, such as if you were to suffer a serious injury or pass away due to an accident. Funeral and life insurance policies are not savings plans, so the premiums you pay generally cannot be refunded if you decide to cancel your policy.

How funeral cover is different

Life and funeral insurance may be similar on a high level, but they often serve two different purposes. Essentially, these differences are summed up by each product’s name.

Though life insurance policies are typically paid when a loved one dies, they are really designed to help those left behind carry on with their lives. The benefit amount chosen may be quite large (often starting at $100,000 and going up to $1 million or more). This is to help cover ongoing expenses such as making mortgage payments, paying school fees or allowing the surviving partner to take time off work whilst the family grieves.

Compare this to funeral insurance, which is designed to help pay for funeral and other final expenses. Benefit amounts on these policies are typically lower than what life insurance policies offer. Whilst funerals can be expensive, they are thankfully not an ongoing expense, hence the lower cover amounts.

Though these policies are sold as funeral cover, the benefit amount can really be used for anything. Loved ones could also use this money to pay final debts or day-to-day household expenses, giving them one less thing to worry about during what is often a difficult time.

Who might want funeral insurance?

Funeral cover is available for most adults, but it may not fit everyone’s insurance needs. Like with any insurance product, you may want to review your financial situation and requirements when weighing your options.

Many funeral cover policies are what’s known as “guaranteed acceptance,” meaning anyone can buy a policy if they meet certain criteria (typically residency and age requirements apply). Because of this, policies are usually easy and quick to purchase. You typically won’t need to fill out complicated paperwork or answer any questions about your medical history.

This may be ideal for some people, particularly if they’re unable to take out a life insurance policy due to their age. However, others may find that life insurance better fits their family’s needs. If you’re relatively young and don’t mind providing a more detailed medical history, some life policies may offer better protection and lower premiums.

Providing your family peace of mind

Thinking about your own funeral is not the happiest topic to consider. However, putting some thought into your funeral service may help the loved ones you’ll one day leave behind. A funeral insurance policy may be a good option to help them cover the expense of your service, and could remove some of the worry or stress they may experience during this time. 

About Author: Momentum Life is a leading provider of life insurance and funeral insurance products in New Zealand.

ULIPs Yield Great Tax Saving Investment Options – Find Out

Several investment options in India have been affected by demonetization and our own spending habits. On the other hand, most of the fixed deposit rates have been lowered by banks post this demonetization drive. Chances are here that the FD rates might drop even further. This is a situation where in all investors are preferring life insurance over other investment options.

ULIPs (Unit-linked Life Insurance Policies) have gained much presence in the investment market as they’re considered to be a much safer means of creating wealth in the long run. Reasons behind the increasing popularity of these ULIPs comprise of their lucrative returns besides their tax saving and protective nature. Out of all the features of a unit-linked insurance plan or ULIP, the most important one seems to be its capacity to invest an individual’s premiums into equity funds as well as mixed debts in different proportions. It doesn’t even yield any tax liability for enacting transfers between separate funds.Besides yielding extra tax-saving advantages for the investors, ULIPs act as a financial tool that links multiple investment options.

Few of the ULIP advantages have been mentioned below:

Deductible premiums

The premiums that are paid for a coverage plan like ULIP get invested with certain financial instruments, debt, and equity. The premium that goes out towards this policy is shown as a deduction under section 80C of IT Act. ULIP premiums may be considered as a deduction from the taxable income up to a certain limit under section 80C. In addition, a ULIP enables the policyholder to pick an asset class and contribute towards his investment planning accordingly. The risk-tolerance of a young investor is much higher and it enables him to follow the more-risk more-return equity investment strategy. To lower your market risks and fetch quality returns, you may pick a mix of financial market instruments, debt, and equity.

Flexibility to change asset classes

A ULIP investor can switch over to a new asset class from the existing one or may even get the funding proportion modified for his current investment in financial instruments, debt or equity.

Non-taxable withdrawals

Apart from the benefits mentioned before, ULIPs may come with great tax saving opportunities against withdrawals. These benefits aren’t meant for the mutual fund investors. Withdrawals may occur when the policyholder needs to withdraw a portion of his investment, when the policy gets maturity or when the policyholder passes away. Death benefit offered by your ULIP isn’t taxable at all. ULIPs show a close similarity to any traditional insurance plan that yields guaranteed financial protection for the dependents of the insured.

Extended coverage

Periodic top-ups offered under ULIPs are a good investment option for individuals possessing excess cash. In a favorable situation, an investor is likely to gain certain tax saving advantages, guaranteed protection, and great returns through different modes of investment like that of mutual funds and life insurance policies. However, it’s quite tough and challenging to strike the right balance between various investment options.

That’s one reason why so many of the modern investors are opting for ULIP and similar combination products. This is certainly an effective option to get your life coverage benefits trebled. Without experiencing any complication and risk of suffering losses, you’ll now be able to enjoy these tax saving options and high ROIs.

Tips for Hiring the Right Insurance Agent

If you are in the market for insurance of any kind, it’s important that you know how to find the right agent to help you out. A good insurance agent will be able to find you the best coverage for a reasonable price. Since there are so many different agents to choose from, you will need to do some research before deciding on one in particular.

In this article, you will learn about some of the more helpful tips that will allow you to narrow down your options when it comes to choosing the right insurance agent to meet your needs.

Utilize the Internet

You will find that many banks, such as BB&T, have pages on their websites that are dedicated to helping people find a trustworthy insurance agent in their area. It is important that you look into some of these websites so that you can make finding the perfect agent as easy as possible. With BB&T bank, all you have to do is simply enter your location and the type of insurance you are interested in getting.

Which Insurance Products Are You Looking For?

The type of insurance products you are interested in will play a crucial role in determining which agent you should hire. If you are looking for home insurance, you will need to look for an agent that has access to this particular product. Make sure that you find out what each agent can offer you before making a final decision.

Knowledge and Credentials

It’s crucial that you find an insurance agent that is very knowledgeable with all the right credentials, so you can trust them to provide you with the help you need. You should take the time to ask each agent some questions that will provide you with a better idea as to how experienced they really are. It’s also a good idea to ask these agents for their credentials, so you can make sure they are legitimate professionals.

Reviewing Your Quotes

The insurance agent you hire will provide you with a number of quotes for the type of insurance you need. You will need to spend as much time as necessary looking over these quotes and comparing them, so you can get the best possible deal. One of the biggest mistakes people make when buying insurance is to neglect the quotes they are given by their insurance agent.

Know How Much Coverage You Need

It’s always a good idea for you to know exactly how much coverage you require when going about hiring someone to find the right insurance policy for you. You will need to convey this information to the agent before they start researching policies on your behalf.

When you need to get insurance of any kind, it is important that you think about hiring an agent to help with this process. A good insurance agent will be able to save you a lot of time and effort as well as money, so it’s something that’s worth considering.

5 Ways to Save Tax for Salaried Employees

It is the duty of every citizen of India to pay taxes. As a diligent taxpayer, it is imperative to know about the various deductions and exemptions allowed under various sections of the Income Tax Act, 1961. Besides, there are numerous other methods to reduce your tax liability largely.

Following are five most popular and common ways to save tax for salaried employees in India.

1. Submit medical bills to your employer on time

Most salaried individuals are eligible to receive medical reimbursement of INR 15000 as part of their Cost ToCompany (CTC). Therefore, you may claim a tax deduction for all your medical expenses up to this amount. For this purpose, you may submit all your medical bills, medical reports, lab test bills, or doctor’s consultation bills to your employer. It is important to note that such a tax benefit may be claimed only through your employer, and hence you may submit such bills to your employer on a timely basis.

2. Save tax through House Rent Allowance

House Rent Allowance (HRA) is a common component for many salaried individuals. The rules of tax deduction on HRA are stated in Section 10 (13A), Income Tax Act. The amount that may be claimed as exemption is a minimum of –

a) Actual HRA amount received

b) 50% of the salary in case you live in a metropolitan city or 40% for a non-metropolitan region

c) Excess of rent paid annually above 10% of your salary.

In order to claim deductions on House Rent Allowance, you may submit rent receipts to your employer.

3. Claim deductions under Section 10(14)

The good news for salaried individuals is that they may avail of numerous deductions as per Section 10(14) of the Income Tax Act. You may avail of deduction on children’s education allowance up to a maximum amount of INR 100 a month, per child, up to two children. Besides, you may seek deduction on hostel expenditure allowance of INR 300 a month per child up to two children. You may also claim an exemption on helper or assistant allowance as well as uniform allowance up to the amount of expenses incurred.

4. Invest in medical insurance

You may claim health insurance tax benefits on your health plan. A medical insurance plan is indeed an integral part of financial planning. Besides providing a great degree of financial security during a medical contingency, it also provides tax benefits. You may seek health insurance tax benefits on the premium paid towards your policy. You may claim health insurance tax exemptions on premiums paid for yourself, spouse, parents, and dependent children. According to Section 80D, medical insurancepremiums are exempted up to a maximum of INR 25000. In an event that you or any of the covered members are senior citizens, you may enjoy a higher limit of INR 30000. You may, therefore, avail of such health insurance tax exemptions and reduce your tax liability.

5. Maximize utilization under Section 80C

Section 80C of the Income Tax Act allows a maximum deduction of INR 1.5 lakh. You may claim a deduction on investments made in various financial vehicles such as Public Provident Fund (PPF), Unit-Linked Insurance Plans (ULIPs),National Savings Certificate (NSC), andEquity-Linked Savings Scheme, among others. You may also avail of this section to reduce your taxable income through premiums paid on life insurance plans. Besides, you may claim deductions on tuition fees paid for the education of two children.

The Income Tax Act allows for numerous such deductions and exemptions for salaried individuals. You may, therefore, avail of health insurance tax exemption, numerous investment vehicles, and HRA component of your salary, among numerous others. You may take advantage of them and lower the amount paid towards income tax.

Importance and Benefits of Cashless Policies

Earlier, insurance providers used to provide reimbursement for all the expenses borne by the insured. However, these days, most insurers offer the benefit of cashless settlement of claims. According to this arrangement, the insurance providers settle all the expenses with their network providers. You, therefore, do not have to make any out-of-pocket expenses towards the huge medical bills.

It is important to note that in order to avail of the benefit of cashless insurance, it is necessary to visit any of the providers in the insurer’s network. You may view the Third Party Administrator’s (TPAs) website to identify the comprehensive list of hospitals or garage networks, in the case of cashless car insurance.

Cashless policies entail a lot of importance. Following are the three major benefits of cashless policies.

1. Prevents financial strain

The major benefit of a cashless insurance policy is that it prevents financial burden. You do not have to bear any out-of-pocket expenses. This ensures that you do not have to run around arranging funds. Besides, there is no need to liquidate any long-term investments such as mutual funds. Additionally, you do not have to deplete your lifetime savings to meet your expenses. Since the insurance provider settles your bills you may enjoy a great degree of financial freedom.

2. Ensures that you receive quality treatment

In an event of a medical crisis, a cashless mediclaim policy helps you receive the best treatment. You may avail of excellent healthcare facilities without having to pay for any hospital-related expenses, such as domiciliary treatment costs, in-patient care expenses, alternative treatment cost, and ambulance charges, among others. All you have to do is display your health insurance card at the network hospital and fill in the pre-authorization form. The hospital will then forward the application to the TPA. Once the cashless health insurance application is approved successfully, you may receive treatment from the network hospital without making a single payment.

3. Provides value-added services

Greater the annual payouts by the insurance provider to the network companies, higher will be the negotiation power for discounts and offers. This benefit may be directly passed on to the customers. You may save a certain amount on your sum insured and utilize the same towards any subsequent event in the future.

The popularity of cashless insurance has indeed grown. You too may invest in such an insurance policy and avail of the numerous benefits it has to offer. In case you wish to opt for cashless benefit, you may buy insurance online or visit your local branch. By doing so, you may safeguard your financial well-being and have peace of mind knowing that you do not have to bear any financial burden.

10 Financial Services You May Not Know You Need

When it comes to your finances, it’s safe to say that you usually know what you’re doing. Most of us know how much money we earn, and roughly how much our bills come to each month - even if it’s just because we tend to know what we have left to spend each month. Either way, it’s relatively easy to know where you’re at with your money without being a financial expert.

But if we were to take that idea one step further, and say that you’re generally incredible with your cash and you even have systems in place to make sure you do stay on top of things, you may consider yourself to be a bit of a financial pro. So much so that you don’t really need much help with how you handle things. But if that’s how you think, you’re more than likely wrong. Because most of us may require some kind of financial service without really knowing it.

Sometimes, the financial services we need are things that we could implement now just to make life much easier, and sometimes they’re going to be things for the future. And sometimes, they’re even things that could come in handy, despite never really knowing that we may need them. So, if you want to make your financial life even more efficient, here are the financial services you should consider taking on board.

An Accountant

When it comes to accountants, you’ll often find that people are all for them, or they’d rather do without. Even if you tend to fall in the latter camp, it may do you some good to realize that actually, an accountant is going to make your life much easier. When it comes to filing your tax return, it may take you hours and hours to do each year. Whereas hiring an accountant could be quicker and most-cost effective for you, as you can get on with other things as they do it.

A Financial Advisor

Next up, you may also want to consider taking on some financial advice. Again, this isn’t going to be for everybody, but it could prove invaluable to you. You may think that you know what you’re doing with your money, savings, and investments, but you may not be getting the most out of your money. With a skilled financial advisor, you’ll be able to maximize your savings and ensure that you’re getting the best return.

An Assistant

If you’re self-employed, you may also want to think about taking on an assistant. Because it doesn’t make a lot of sense for you to be spending all of your time working on your financials when you have other work to be doing. So, it will often pay for you to hire an assistant to handle, chase, track, and manage your finances for you, freeing you up to get on with your work.

Specialist Finance

Lots of people will require different kinds of finances in life, you’ve probably had a loan or mortgage in the past. But what about specialist finance? From working with a bail bond company to a business investor, you may not know it now, but they could be essential for your future. Because you may not always have access to the money you need for specific ventures.

Realtor

Then, there’s also a realtor to think about. And before you say that technically they’re not a financial service, they are there to help you sell your house and they want to help you make as much money as possible. There are many benefits of working with a real estate agent, but their expertise is always one of them. Not only will they help to maximize your properties worth, but they can also manage any rental property you own which can make it more efficient for you.

Insurance Broker

Next, there’s also an insurance broker. This is going to be a particular service you should take advantage of if you have lots of different insurance needs. From health to home to business to car, and more, you may find that having an insurance broker to handle the policies for you means that you can get them cheaper overall.

Specialist Dealer

Again, we have another service here that isn’t quite a financial service as such, but it’s there to make you money - so we’re going with it. And it’s the service of a specialist dealer. Should you be interested in collecting things like art or jewelry, you may wish to sell certain pieces at some stage, and this is where the specialist will come in. As they will have the expertise and connections that will allow you to get the most money for your sale.

International Bank Account

From here, it’s the on to the idea of your international financial affairs. Because if you work overseas, or have some international interests, then you may find that you won’t be getting the most out of your money by constantly transferring between currencies. So, you may want to work with an international bank for this exact reason. With an international account, you won’t have to keep losing funds when exchange rates are poor.

Cryptocurrency Advisor

With talk of international transactions, it then leads us nicely to the idea of cryptocurrency - which is taking the world by storm. It’s proving essential for international transfers due to the lack of fees. But, if you want to get involved with cryptocurrency, and you have no idea what you’re doing, or you just don’t have the time, you may want to consider working with a cryptocurrency advisor.

Financial Software

Finally, you may also want to consider taking up the use of financial software. Staying on track with your finances is only easy if you’re organized and you stick at it. But we don’t always have the time to do this ourselves. And while you may not want to hire someone as point three suggested, you may choose to work with a software service instead. This could streamline your financial life and make it so much easier to manage.

Don't Let Healthcare Haunt Your Finances

It’s sad to live somewhere that makes healthcare one of the most expensive parts of your life. So many other countries have affordable healthcare options for everyone, meaning they worry less when a problem happens. Here, if we get a serious illness or injury, it costs thousands of dollars to pay for the treatment. There are even some tragic stories of people fighting cancer and being forced to admit defeat because they can’t afford the medical treatment.

The reality is, for the majority of the population, healthcare haunts our finances. As a consequence, we need to do everything in our power to make any healthcare costs as cheap as possible. What options do you have? There are some, and I’ll talk you through them in the points below. 

Purchase An Affordable Insurance Plan

Health insurance is pretty much essential for people nowadays. You need to have some type of insurance plan if you want to avoid paying through the nose for medical bills. With insurance, certain treatments might be covered, meaning you won’t have to pay for them. The amount you pay for your insurance can often be a lot cheaper than the treatments you have to pay for, which is why it makes sense to take out a plan. Different people are best suited to different health insurance plans, so there isn’t a one solution fits all option here. You need to do the research and find the right one for you.

Always Think About What Caused Your Health Problem

There are plenty of health problems that just happen over time because of the way your body is, or they’re down to genetics. Then, you have problems that might have been caused by other circumstances. Great examples that come to mind include breaking your bones and getting severely injured because you were involved in an accident of some kind, or ending up with health issues thanks to exposure to things like asbestos. In both scenarios, you end up in hospital, with high medical bills, thanks to circumstances out of your control. You don’t have to be a personal injury lawyer to know you’re entitled to compensation if you get hurt in accidents that weren’t your fault. Likewise, if you’ve been exposed to dangerous things at work - like asbestos - you could sue your company. My point is, by looking at what caused your problem, you might find that you’ve got a chance to earn compensation to help cover the medical bills and save money. 

Take Care Of Your Health

Finally, this seems like a silly point, but it’s definitely something that can save money. If you take care of your health, you will avoid being subjected to a lot of different health problems. Eating a healthy diet and being active prevents so many problems such as heart disease, obesity, and lots more. This makes you less likely to end up in hospital needing specialist treatment for certain health issues. It’s a clever way of tackling some health problems that can easily be prevented.

As you can see, there are ways you can try and cut down on your medical expenses throughout life. Otherwise, healthcare will haunt your finances forever, and cost a lot of money in your lifetime.

Choosing the Right Medicare Health Plan

Medicare health insurance may or may not be the only type of health coverage you invest in, but it is often wise to make it at least a part of your overall health-protection plan. And today, you can consolidate your coverage with a Medicare Part C Plan, that integrates private and government based insurance, instead of only having the A & B “original” Medicare as an option.

To be an informed health care shopper in today’s marketplace, you should at least be aware of the basics on what different Medicare plans have to offer. Here is some help to get you started in choosing the plan that is best for you.

What Does Medicare A Cover?

The “original” version of Medicare includes just A & B. Part A is your hospital insurance coverage. It will only cover those medical services considered “medically necessary” to treat a specific disease/condition you are suffering from; but neither is it limited to hospitalizations only, as the term “hospital insurance” might seem to imply.

Beyond hospital expenses, Part A can also cover home health & hospice services, nursing home care, and skilled nursing facility expenses. But again, covered care must be a medical necessity to qualify, and that’s where you’ll need to dig deeper into the details of Medicare’s many rules as you continue your research.

What Does Medicare B Cover?

Part B is Medicare’s “medical insurance.” This covers the diagnosis and treatment of health conditions, when medically necessary. It includes reasonable preventative care as well as treatments.

Here are some examples of what Part B will help you with: ambulatory care and transport, certain pieces of medical equipment like oxygen tanks and blood-sugar monitors for diabetics, doctor’s visits, mental health services, and to a rather limited degree, prescription drugs.

And What About Medicare Part C?

It’s true you can actually add prescription drug coverage to your Medicare via Part D, but one of the best ways to cover your pills and drugs is through Part C. Part C will give you all that Parts A & B will, only more.

The beauty of Medicare Part C plans is that they allow your private insurer to manage and distribute to you your Medicare benefits, which creates competition (always good for getting a better deal as a consumer!)

Plus, you bring all your health insurance elements (hospital, medical, and drugs) under a single comprehensive plan, which can still be customized to your exact needs and budget. You may be able, for example, to create a plan that cover Limitless Pill Alternatives or all of the prescription drugs you currently take or foresee you may need down the road. The possibilities are “multitudinous” if not quite “endless.”

What to Do Next

So you decide you want Medicare coverage or you want to switch over to a Part C plan from your current Medicare? Now what? It’s time to dig down into the details by talking with a Medicare health insurance expert. 

They can help you see the benefits of a Medicare Advantage Plan (Part C) more clearly and help you optimally customize your plan. Ask any Medicare-related question you like, and your agent will be able to get you the answer and help you make a truly informed decision.