Always Check Settlement Record Before Purchasing A Cover

The majority people ask over concerning returns, premiums, guaranteed or otherwise, tax breaks before purchasing a life insurance policy. Because for most of the people, the main reason of purchasing life insurance policy during the first 3 months yearly is an exercise in planning of the tax, it fits the bill in that perspective.

Hardly ever, do people really bother to inquire whether the insurance firm can be trusted to make a claim. Sarcastically, this is the most significant feature of an insurance company’s products. However, that is the main role of a life insurance plan - providing financial safety to the dependents of the policy owner on, if the policy owner dies.

Know The Claim Track Record 

To be reasonable, very few know the parameter to be used to determine the insurance company's reliability when it comes to approving claims. Furthermore, it is very improbable that your agent will help you by sharing these details, except his insurance company has a stupendous track record of settling claims.

Hence, how do you attain your hands about this key parameter? Well, for starters, you can consult with the annual report of Insurance Regulatory and Development Authority (IRDA) for the tenure of 2010-11, which was released recently. The IRDA has also put the annual report of 2010-11 on its website. So, you can also browse the details from IRDA website. The report lists claim repudiation, pending ratios and settlement for all life insurers, every year.

Though a systematic research would require studying these ratios for a longer time-period, yet data of a year, is not bad to start with. The statistics sheet may look complex, but all you need to do is concentrate on the mentioned, percentages in brackets, for every company. For example, Life Insurance Corporation's claim settlement ratio is more than 97%.

Life Insurance Corporation's track record can be said to be very excellent, especially because the public sector giant processed more than 7 Lakh claims in a particular year. Several private sector firms, in comparison, have a dismal ratio of around 50 percent, in spite of managing just a few hundred claims.

The Sole Criterion

The easiest way to select a plan seems to be to purchase one from the firm that has the best, or at least sky-scraping, claim settlement ratio. Though, it may not be completely accurate to go blindly by this statistics point alone.

Go Deeper Than Mere Numbers 

Subsequently, of course, there are additional parameters that relate to the policy owner themselves that are to be considered. Let us illustrate through an example, comprehensiveness of the insurance policy cover, its cost-effectiveness and, if it features an investment element, the returns track record too.

An 'Acceptable' Ratio 

These days, it is rather feasible that upon analysis, you discover that the firm with the best claim settlement track record does not provide a product that suits your requirements. Otherwise, it is also possible, that the premiums charged merely do not fit into your financial plan.

In this situation, can an insurance seeker search for an insurance firm with a claim settlement ratio of more than 80%? Or can 90% be the least amount threshold intensity for the purpose? The solution, then, may be to hit a balance and search for the best possible option.

Factor In Claims Pending Ratio 

In addition to the repudiation ratios and claim settlement, claim pending ratio is also to be taken into consideration. The statistic comes as an outcome after deducting settled claims, written back as well as discarded from the overall claims filed.

Moreover, the firms age could be more relevant here than on the claim dismissal. In short, you would do well to implement a holistic approach and analyze all criteria before taking a final resolution.

The Best Way to Get a Personal Loan In India

Are you are interested in availing a "personal loan" ? Personal loans are easy to get. Moreover, they are offered at a highly competitive rate, and you can use these loans for almost any purpose like traveling, going for a vacation, wedding, gifting etc. Here, you will find the basic guidelines regarding personal loans.

First thing you need to decide is the amount of money that you will require to fulfill your needs. That is, you need to plan your budget. The loan can be availed in two ways. It can be an availed as an “Unsecured Loan” or as a 'Secured Loan”.

Secured loan is highly recommended because it offers you the best deal on a reasonable rate of interest. If you have some precious asset, you can put it as mortgage and go for a secured loan. If you are sure that you can pay the loan extremely easily, it would be wise to keep some asset as a mortgage and avail a secured loan.

However, if you are going to opt for an unsecured loan, rate of interest can be higher than a secured loan. This type of loan is best suited for people who do not have anything to keep as a mortgage. The other situation where this type of loan is the best for you is when you do not require an unusually large amount.

If you want a fast processing, you should find the lenders online. Many related websites like www.dialabank.com provide useful information regarding personal loans. On the internet, you can get the best deal due to high competition in the market and it saves your money and time, as well.

To conclude, whatever type of loan you decide to go for, try to do a market survey before taking the final decision. Shopping for rates is essential and will help you in taking an intelligent decision.

Tax-Saving Season-Choose The Best Infrastructure Bonds

Infrastructure bonds are making a splash these days just in time before the end of the tax-saving season in March. At present, issues are opened for subscription from Infrastructure Finance Corporation of India (IFCI), Rural Electrification Corporation (REC), PTC India Financial Services and SREI Infrastructure Finance. IDFC has already lifted up Rs. 533 Crore through its issue of infrastructure bonds that stopped up for subscription in Dec, 2011.

The company is expected to come up with its next tranche of these bonds soon. You can put in up to Rs 20,000 in these bonds and claim deduction in tax under Section-80CCF. You can save as much as Rs. 6,180 by making investment in these bonds, if you are in the uppermost tax bracket.

"The Rs. 20,000 limit for investment in infrastructure bonds is in addition to the 1 Lakh tax deduction limit available under Section-80C and hence, merits investment. You can choose an issuer of these bonds based on the credit rating, interest rates offered and the financial credentials of the company", says K. Ramalingam, Director and Chief financial planner at Holistic Investment Planners.

The General Essentials

All issues have time-period of 10 to 15 years. There is an alternative of buy-back, at the end of 5 years from the date of allocation, and liquidity will also be accessible by listing the bonds on the stock exchange once the obligatory lock-in time-period of five years is over. Though the buy-back option for the 10 year bonds is after 5 years, for the 15-year facility, it comes after a period of 7 years. All of them offer yearly and growing options of interest payment for both maturity periods.

You can select to apply for only the 10 year bonds or only the 15 year bonds or a blend of the two. You can apply in the demat mode, if you have a demat account, besides you can even prefer for physical certificates. You should offer information of your demat account all along with a photocopy of your Permanent Account Number (PAN) card and a cheque, If you are applying in the demat mode. But, if you are going to invest in physical form, you should affix a photocopy of your residence proof, as well.

The face value of a single bond is Rs. 5,000 and an individual have to make an application of one bond and in multiple of one bond afterward. There is no upper-limit on the sum of the amount that you can invest. The face value is Rs. 1,000, only in the case of SREI Infra and an individual can apply for at least one bond.

Selecting One Over The Other

The issues on proposal vary in rates of interest, ratings and buy-back alternatives subsequent to the lock-in period. IFCI pays the maximum interest among all of them. For a period of 10 years, IFCI pays 9.09 percent whereas REC pays 8.95 percent, PTC India Financial pays 8.93 percent and SREI Infra Finance pays 8.9 percent. For the period of 15 years, IFCI pays 9.16 percent whereas all others pay 9.15 percent. Although REC and IFCI are possessed by the government, PTC India Financial Services parent - PTC, is a government supported public private enterprise and SREI Infra is a private player.

In terms of rankings, REC scores as it has an AAA rating that shows maximum degree of protection in terms of timely refund of principal and interest. IFCI, PTC India Financial Services and SREI Infra have a lesser rating as compared to REC.

IFCI bonds benefits from 'CARE A+' by CARE, 'LA' by Icra and 'BWR AA-' by Brickwork Ratings. PTC India Financial Services has been given an 'A+' ranking by CARE and ICRA. SREI infra bonds benefits from a ranking of CARE 'AA'.

Since REC and IFCI are owned by the government, the margin of safety is high. Investors could choose from either of the two. For individuals who are all set to divide the amount in 2 issues, there is a different approach. "If you want the best of high rates as well as high rating, invest Rs. 10,000 in the 10 year option of IFCI at 9.09 percent, and Rs. 10,000 in the 15 year option of REC at 9.15 percent.

Though, not all monetary planners would recommend you to divide investments as the amount of Rs. 20,000 is small and would make it hard to track over a five year time-period.

Finally, even if you are going through a shortage of finances and cannot invest at this time, do not lose optimism as you can also invest in any of the multiple issues till the end of the financial year.