PolicyTray

Insurance Blog

How to surrender a LIC Policy

If you hold a LIC policy, for which you had already completed paying 3 full year premium, you shall surrender the policy and take back the surrender value amount. You shall calculate the estimated surrender value of your policy here. It is not always recommended to surrender a LIC policy, as the surrender value will be at times even less than the total premium you have paid till date.

Below are the documents required to surrender a LIC policy:

1.       Original LIC policy bond

2.       Cancelled bank cheque leaf with your name printed on the cheque or bank passbook photocopy. Cancelled cheque is required, as LIC will credit the money directly to your bank account.

3.       LIC’s NEFT form which shall be downloaded here.

4.       Original and a photocopy of your identity proof.

You shall reach out to the home branch of your LIC policy and request for a surrender form (LIC Form No - 5074). Your policy can only be surrendered at your home branch. You shall fill up the surrender form and submit it along with the above mentioned documents. The surrender of your policy will be processed and the surrender value would be credited to your bank account in 5 – 20 working days.

All you need to know about H-1B visa and new H-1B visa bills in a gist


H-1B is a non-immigrant visa that allows employers in the US to find foreigners to fill the job positions for which the employers couldn’t solicit any Americans with the required skill. 

Few key points to note about H-1B visa:

·         H-1B visa has a minimum salary cap of $60,000 and petitions of the employers offering salary above the minimum limit is only considered.

·         This visa allows the employee to stay 3 years in the US and the duration can be extended to another 3 years.

·         The employee can buy or sell a place, buy and win lottery and even apply for green card upon arrival to the US

·         H-1B visa holders can bring along their family under H-4 visa.

·         If the H-1B visa holder quits or is dismissed from the job, he/she should find another job or transfer to another non-immigrant status in order to stay in the US

·         Employers can apply for H-1B visa from April 1st every year.

·         Employers need get labor clearance and submit H-1B petition to United States Citizenship Immigration Services (USCIS).

·         USCIS can accept only 65,000 applicants in regular H-1B quota and additional 20,000 applicants in H-1B master’s degree quota.

What are the proposed changes in the H-1B visa?

There are three bills proposed that aim at changing the existing H-1B visa. The bills proposed are given below:

·         High-skilled Integrity and Fairness Act of 2017 – The minimum salary cap is increased from $60,000 to $130,000 for H-1B visa. It also prioritizes small and startup employers’ annual H1B petitions to big companies and removes the per country cap for immigrant visas each fiscal year.

·         H-1B and L1 visas Reform Act of 2017 – This bill aims to reform the Immigration and Nationality Act to reduce fraud and abuse in certain visa programs for foreigners working temporarily in the US.

·         100k bill – This bill removes the master’s degree cap on the number of visas available and also requires the annual salary threshold to rise from $60,000 to $100,000.

These bills have just been introduced in January, 2017 and still have a long way to go before they become the law.

No service tax on IRCTC e-bookings


E-tickets are now almost the same price as the tickets bought in old-fashioned, standing-in-a-long queue way, albeit the service charges of Rs. 10 charged by your bank for the e-service.

On February 1, 2017, Finance Minister announced the Union Budget for the year 2017. Surprisingly, the Railway Budget was also announced along with the Union Budget this time. Among other things, Finance Minister Arun Jaitley announced that service tax levied on the e-tickets booked online through IRCTC is to be withdrawn.

Union Budget – IRCTC

Finance Minister has announced that the service tax levied on the e-tickets will be removed soon.

When one books an e-ticket on IRCTC platform, certain amount of service tax is levied for the booking. Currently IRCTC levies a service charge of Rs. 20 plus service tax for second/sleeper class and Rs.40 plus service tax for all the other class such as First, second and third class AC, Chair Car, 3E and First class, irrespective of the number of passenger booked on an e-ticket.

What is the extra amount you pay for the e-tickets?

When you book a train ticket online in IRCTC, you pay certain amount of extra charge for the service provided. Let’s consider an example for a clear understanding.   

EXAMPLE: Anil wants to book a train ticket from Chennai to Bangalore in second class sleeper. He finds that there is availability on IRCTC online platform and the e-ticket costs Rs. 150. When he books the e-ticket, the cost comes to Rs.180.23 (150+20+10+1.23). What is this extra amount?

The extra Rs. 20 is the service charge and Rs.1.23 is the service tax levied by the Indian Railway, Rs. 10 is the service charge levied by your bank for the e-service provided and. In case of cancellation, this extra amount (31.23 in Anil’s case) is not refunded hitherto.

As Finance Minister has announced, this service charge and the service tax (Rs.21.23 in Anil’s case) will soon be removed for the e-tickets booked. Hence while booking and upon cancellation, you save a significant amount. This move is in tandem with encouraging people to move towards a cashless economy. 

Best price comparison Apps in India


About a decade ago, a cost-conscious customer should search a variety of newspapers to find out which retail store offered the best price for the same exact product. But this is not the scenario today. Equipped with a smartphone, you can compare the price of a desired product not just in your local retail stores but worldwide as well – all literally at your fingertip. With the price comparison apps, you can shop smart and get the best price for the products you want to purchase. Here’s a list of Indian price comparison apps that can make your shopping way easier and cheaper. All the apps listed below have been downloaded more than a million times.


MySmartPrice

MySmartPrice was founded in 2010. It’s available as both website and mobile app. With this app you compare a range of products from electronics to personal care. Its pride includes being the only gadget price comparison website to make it to the list of top 100 Indian start-ups. 

Buyhatke

Founded in 2012, this app gives you price comparison, coupons, deals, price drop alerts. This price discovery service app was developed by three youngsters from IIT-KGP – who after their own pangs of frustration on trying to find the best deals on iPod, invented this app. The team members have grown to 11 now and this app scans upto 50 websites including gaints like Amazon, Myntra, etc. 

Voodoo

Voodoo was founded in 2015. Voodoo is a digital assistant. This app integrates with all the other apps and when you are set to purchase an item from your phone Voodoo suggests the best deals available for that item, without any extra effort from the user.

Junglee

Junglee was founded in 1996 and was acquired by Amazon in 1998. This app helps customers find and compare wide range of products for purchase.  Junglee.com website was launched in India in 2012. One can even post products which can be sold in one’s locality.

Add / Enroll new LIC policies to your existing LIC online account

If you hold one or more policies of LIC either on your name or for your family members, you shall maintain all the policies into a single LIC online account. Having an online LIC account would be helpful for you to pay the premium of those polices, check the next due dates, get the premium paid receipt anytime, etc.

If you already have a LIC online account, you shall add the further policies of yourself / your spouse / children into the same account by following the below given steps.

If you hold a policy and if you do not hold an online account, you shall create one by clicking here and then you shall follow the below steps to add the further policies to your newly created account.

1.       To add your own policies to your account:

If you had already created your online LIC account with one of your policies and now if you would like to add one or more policies of yourself, you shall login to your account by clicking here.

Once logged in, you shall click on the e-Services Tools -> Enroll Polices menu on the left side bottom of your home page. The Enrolled polices list would appear and you will be able to find a link at the bottom – Click to Enroll New Policies as shown in the below image.


You shall click on the link to enroll new polices and you shall select the number of polices to be enrolled now. Then, you will be asked to enter Policy No and Premium. Enter the premium without Service Tax and exactly as per your policy receipt. Your Name will be available by default. After entering the details, and clicking on Enroll Your polices, your policy would be successfully enrolled and will be added to the list of enrolled polices.

 

2.       To add the polices of your Spouse & Children:

To add the policies of your spouse or your children to your LIC account, you have to update your profile with the details of your spouse and children. To update your profile, got to e-Services Tools -> Update Profile.


Under Marital Status Information, Select – Married

(Even if it has been already selected as Married, Select Married option once again so that you will get the options to fill your spouse and Children details.)

Once the details like Name, Date of Birth and Working Status are entered, you shall click on Submit to save your details.

After successful updation of your profile, you shall follow the steps given in Step – 1 to enroll the policies of either your Spouse or Children

Bursting the myths about insurance


There are several myths shrouded around insurance that it is difficult to peel off these myths even today and people often shy away from insurance because of the misconceptions and prejudices that are either non-existent or may once have plagued insurance field but not in the present digital world.

“No one wants to think about dying or how it will affect your loved ones, but a policy could mean that no one else ends up encumbered with your debt,” Feldman says.

We understand that insurance may not be the most exciting financial topic and few people who have all their financial needs sorted out may not need insurance, but this post is to make sure that your decision on insurance is a well-informed one and not based off a myth about insurance. Below are some of the common myths about insurance:

1.      I’m single as pringle. Why would I need insurance?

If you’re single and don’t have any mortgages to leave unpaid if the worst happens to you, you probably won’t need insurance. Even if that is the case, putting together a simple funeral may cost a lot, given that even a coffin costs anywhere from 3,000 to 30,000 rupees. You may also want to consider the credit cards debts and unsecured loans that might fall on your next of kin’s shoulders if you’re not around to pay them back. Besides, it may be wise to purchase insurance when you’re young, when it’s easy and affordable, rather than getting insured when you’re old when it becomes pricier and sometimes uninsurable due to medical issues.

2.      Insurance is expensive!

Expensive is a relative term. What might be affordable to you, can be expensive to many. So, depending upon your income, you are sure to find an affordable insurance from the numerous options available. There’s no one-size-fits-all insurance. You can skim through the dozens of insurances available and choose the one that cater to your needs at policytray.com.

3.      Choices, choices everywhere!!

One could easily get baffled at the sheer number of options available. One might not have the time and expertise to read through all the insurance ever available and choose the perfect one. Instead you can opt for platforms such as CoverNest which makes your job easy and gives you the best options for you.

4.      It is difficult to claim insurance

Unless you’re making a fraudulent claim, you’ve nothing to worry about when it comes to insurance claims.

5.      Old people won’t need insurance

The primary purpose of life insurance is to replace the future income of a primary breadwinner. Two groups most likely to need it are middle-aged couples saving for retirement and parents of minor children - Forbes

Probability of dying is even greater when you’re old and insurance is almost vital when you’re an aging primary breadwinner of the family. Also, with increase in age, you’re more susceptible to health problems.

6.      I am a stay-at-home parent. Why would I need insurance?

A stay-at-home parent plays multiple role at home, serving as housekeeping, cook, laundry and grocery shopping – in short functioning as CEO at home. It can be very easy to overlook the financial contributions of a work-at-home spouse—that is, until the person is gone.  If you or your spouse decides to remain at home to take care for your children, don't forget that the contribution of the stay-at-home spouse can equal tens of thousands of dollars a year. The loss of value that accompanies upon losing a parent is irrevocable, but the financial hardship that entails the loss can be prevented by purchasing insurance.

7.      Investing is better than insurance

Some of the benefits of getting insured over investing are: you get a tax deferred growth; you can borrow against the cash value to buy a house or marry off your kids, without paying taxes; you will be covered in case you fall terminally ill; you will be covered till your death or as long as you pay the premiums.

8.    Insurance coverage at work is enough. Don’t need no more!

You may not be satisfied with the employment coverage due to many reasons: the plan may not cover your spouse enough, you may have had an increment which doesn’t carry on with the insurance or you may want a much higher or a cheaper insurance than the one that is being currently provided. Most importantly, it is wiser to go for an individual insurance over employment coverage as you’ll lose the insurance once you employment situation changes.   

How to get 8% interest rates on your investment post demonetization?


Demonetization brought forth a challenge for all the investors. The share market went down drastically and the interest rates of banks are expected to go down due to the huge inflow of money into the banks. Is there any investment in the near by future where the interest rates are not volatile to the changing economy?

The investment plans like FD and RD gives us the opportunity for getting returns at the interest rates during the time of our deposit. Let’s look into the interest rates provided by the SBI on Term deposits.

In the year 2012 we can see the interest rates provided by SBI in the below table.

 Likewise we can see the rates for the year 2015. From these tables we can say that the interest rates are not constant and are liable to change at any period of a month.



Currently the interest rates provided by SBI are given in the above table. This was updated in November 2016. From these tables we can say that the rates are decreasing year by year. Is there a way to get interest rates above 8% by investing now? Yes.

LIC provides an investment plan where you can get higher returns. Hurry! Now is the time to apply or enquire about the NEW ENDOWMENT POLICY. Let’s see what is this Endowment policy? What are the benefits of the policy?

NEW ENDOWMENT PLAN is a pure investment plan with high bonus and liquidity facility incorporated. The Sum Assured along with accrued Bonus and Final Additional bonus (if any) will be paid at the end of the policy term. The policy term is from 12 years to 35 years. You can choose term for investment say 16 years or 20 years. The policy term depends on the age of the person taking the policy.

Let’s say you are planning an investment of Rs. 10,00,000 over a span of 16 years. For this plan, you will be required to pay a premium of approximately 65,000 (inclusive of tax) per year or a half yearly premium of Rs. 33,000 or you can pay quarterly or monthly payment also. Now at the end of 16 years you will be paid a lump sum of around 17,32,000 to 20,04,000.

The perks of this policy apart from yielding high interest are

1.     Tax exemption for the premium paid.

2.     Tax free Maturity benefit: Basic sum with bonus + Final addition bonus (for policies with term above 15)

3.     Loan facility

4.     Accidental death and disability benefit rider available.