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Information provided on this newsletter has been independently obtained from sources believed to be reliable. However, such information may include inaccuracies, errors or omissions. and its affiliates, information providers or content providers, shall have no liability to you or third parties for the accuracy, completeness, timeliness or correct sequencing of information available on this newsletter, or for any decision made or action taken by you in reliance upon such information, or for the delay or interruption of such information., its affiliates, information providers and content providers shall have no liability for investment decisions or other actions taken or made by you based on the information provided on this newsletter.
Life insurance is one of the pillars of personal finance, deserving of consideration by every household. Yet, despite its nearly universal applicability, there remains a great deal of confusion, and even skepticism, regarding life insurance.

To Help, Here Are Things You Absolutely Need To Know About Life Insurance:

If anyone relies on you financially, you need life insurance:
It’s virtually obligatory if you are a spouse or the parent of dependent children. But you may also require life insurance if you are a life partner, a child of dependent parents, the sibling of a dependent adult, an employee, an employer or a business partner. You may, consider using life insurance as a strategic financial tool.

Life insurance does not simply apply a monetary value to someone’s life:
Instead, it helps compensate for the inevitable financial consequences that accompany the loss of life. Strategically, it helps those left behind cover the costs of final expenses, outstanding debts and mortgages, planned educational expenses and lost income. But most importantly, in the aftermath of an unexpected death, life insurance can lessen financial burdens at a time when surviving family members are dealing with the loss of a loved one.

Life insurance is a contract (called a policy):
A policy is a contract between a life insurance company and someone (or occasionally something, like a trust) who has a financial interest in the life and livelihood of someone else. The insurance company pools the premiums of policyholders and pays out claims—called a death benefit—in the event of a death. 

There are four primary players, or roles, in a life insurance policy:
These roles belong to the insurer, the owner, the insured and the beneficiary. The insurer is the insurance company, responsible for paying out claims in the case of a death. The owner of the policy is responsible for premium payments to the insurance company. The insured is the person upon whose life the policy is based. The beneficiary is the person, trust or other entity due to receive the life insurance claim

Determining the optimal life insurance policy for you doesn’t have to be complicated:
While we could get really granular with a detailed life insurance needs analysis, it’s more important to get set up with something you can comprehend than it is to push off an important decision due to life insurance’s intimidating complexity. In the vast majority of situations, a household would be well cared for simply by buying enough life insurance to replicate all or most of the insured’s income for a term as long as the household expects to need that income.

Consider using a live person to help in your death planning:
There are many online tools that can help give you an idea of how much money you should pay for the policy you need. But once you get to that point, it is recommend to get in touch with a real, live insurance agent who can walk you through the application and underwriting process.


The payments landscape in the country is changing with the launch of multiple payment options for individuals and merchants. The government’s push towards digital payments, coupled with National Payment Corp. of India’s (NPCI) payment railroads such as Immediate Payment Service (IMPS) and Unified Payments Interface (UPI), have led to innovations in payment products. After demonetization, the major push has been towards enabling person-to-merchant transactions. Here is a look at some of the products that will change the way you pay when you shop.

If you have an Aadhaar number, you should be able to pay with your fingerprint. This facility moved one step closer towards reality on 14 April when the government launched Bhim-Aadhaar Pay, focusing on merchant payments. For this service, merchants have to download the Bhim-Aadhaar Pay app to a smartphone and register themselves on it. They also need to have a bank account linked to Aadhaar, where the money can be collected.

Merchants will also need a smart phone-compatible biometric scanner to scan fingerprints and accept payments. The customers need to have a bank account linked to their Aadhaar. To make a payment, you will just have to authenticate the transaction with your fingerprint and the money will be automatically debited from your account and credited to the merchant’s account. Since the underlying infrastructure runs on IMPS, money is credited immediately. Earlier too, in 2016, IDFC Bank had launched IDFC Aadhaar Pay, where a customer could enter her bank’s name and authenticate with Aadhaar number and fingerprint.

Scan and pay
Since 2015, banks and fintech companies have started working on payment products that allow you to scan a quick response code (QR code) and make payments. Though the concept is relatively old, this payment mode is set to pickup pace since the government has rolled out a standard option called the Bharat QR code. So far, the QR system worked in closed loop. To make a payment, a customer needed a smartphone, a QR code-enabled app, and a virtual debit card in the app.

Since Bharat QR code is standardized, it will work seamlessly across network providers. However, it needs to be customized based on the merchant, say, a restaurant, hospital or grocery store. Both fintech companies and banks are currently working on building customized products on the Bharat QR railroad. “We are building products around two technologies—Bharat QR and UPI. Bharat QR works on the debit card payment infrastructure. Banks provide raw APIs (application programming interfaces), which are customized for individual merchants,” said Vivek Lohcheb , co-founder, Trupay, a digital payments solution provider. 

Quick links
Merchants can allow you to make payments through links sent over an email or SMS. To use this facility, you don’t need to download apps or link your Aadhaar to a bank account. Merchants have to first register with a fintech company or bank that provides this service. Banks such as ICICI Bank Ltd and fintech companies such as Instamojo provide this facility. To on-board, a merchant needs to register with her details, Permanent Account Number (PAN) and bank account details (account number, IFSC and bank name) where she needs the money to be credited.

Once registered, the merchant can create payment links, which include product descriptions and the amount. As a consumer, say, you want to pay your child’s tuition fee. The school administration (the merchant in this case) will send you a link which will have details such as the month and amount of fee, through an SMS or email. You just need to click on the link, see if the details are correct and click to make the payment. You can choose the mode of payment you find convenient.

“It can work both on mobiles and desktops. The link carries information about your purchases and services. You can make payments through your card details, Net banking, e-wallet and UPI,” said Sampad Swain, chief executive officer and co-founder, Instamojo Technologies Pvt. Ltd. Several educational institutions and home-based businesses have started using this facility.

What it means for you
All financial services institutions, which have a presence in the payments space, are increasingly focusing on building an electronic payment infrastructure, thanks to the government’s digital push. “When there is a call from the government, and the Prime Minister wants all PSU banks to drive it... we are focusing on it. Currently, there is a lot of confusion in the form of machines, settlements, disputes and cyber security when it comes to payments,” said Shyam Sundar Banik, general manager (alternate delivery channels), Bank of India. In fact, many banks are looking at customizing digital payment instruments to merchants’ needs. So, the next time you shop, you may have multiple digital payment options. It is still too early to say which mode of payment will work best. However, be careful while making any transaction. Check the provider's details carefully. Don’t disclose any sensitive information such as one-time password or personal identification.

Source: LiveMint

When most of the top 19 financial planners of India point to some common investor mistakes, it’s a good idea to listen. Here are some investing mistakes people commonly make. These are money traps that you would do well to avoid.

Being underinsured
Eight of 19 financial planners said they find plenty of life insurance policies in portfolios but very little cover. Shyam Sekhar, founder, ithought, a mutual fund advisory, gave the example of a client who had five life insurance policies with a total annual premium of Rs75,000 and sum assured of Rs25 lakh. The person actually needed a cover of Rs2.50 crore. “The sole purpose of life insurance is to provide for your family in your absence,” said Sekhar. How much cover you need must be calculated taking into account the dent in your household income if you are not there. “Many investors are under-insured or overly allocate funds to insurance. For example, we often see a bread-earner and spouse both insured for similar amounts. These decisions are often made emotionally rather than pragmatically,” said Roopali Prabhu, head-investment products, Sanctum Wealth, a boutique advisory. Advisers recommend a cover equal to 12-15 times your annual expenses or 8-10 times your annual income. And stick to buying a term plan.

Excessive or expensive loans
Often people take loans when their income levels or existing investments are not sufficient to fund a so-called unavoidable expense. And with most of us carrying at least one credit card—financial planners swear some clients have half a dozen credit cards—you don’t really need to go through the process of visiting a bank to borrow money. Many of those who use credit cards tend to pay not the full amount that is due but only the minimum amount and simply roll over the rest. Eight of the 19 financial planners said that most first-time clients have excessive and expensive loans. According to an EMI calculator of loan portal, the EMI for a personal loan of Rs5 lakh would be around Rs12,100 if you wish to repay in 5 years. But just the total interest outgo would be Rs2.29 lakh, which would be in addition to the Rs5 lakh principal.

Excessive property and physical investments
Real estate and gold are dominant in of investors’ portfolios, said eight out of 19 planners. Budget 2017 has further limited the level of set-off of losses to Rs2 lakh under the ‘income from property’ head. This can be set off against other sources of income, but only till Rs2 lakh. Additional losses can be carried forward for 8 consecutive years, but can be set-off only against income from house property to the extent of mentioned limit. Earlier, there was no limit, which incentivised many to buy a second or even a third house and pay for loans. Now, if you take a home loan to buy a second house for the purpose of renting it out, watch out.

Exotic products, ordinary returns
There is no dearth of investment products but should you own them all? And more importantly, should you invest in them despite their complexity? Five of 19 advisers told us that toxic products are a part of many portfolios. From investing in private equity funds, capital protection oriented funds or structured products, these avenues can create havoc if you don’t understand the risks they carry.

No estate planning
Three of the 19 financial advisers said investors don’t make Wills or plan their estate. Before you make a Will, we suggest you ensure that your investments are held in joint names so that it’s easier for the second holders to take over. While nominees are merely trustees of investments till the rightful heir comes along (unless there’s no legal heir or claim, in which case the money could go to your nominee), nominations ensure that the transfer becomes a smooth process. A Will, though, ensures that your assets are rightfully bequeathed to legal heirs. If you have multiple heirs, a Will helps avoid any future conflict.

Source: Livemint
For most of us, retirement is not on the radar during our 20s and 30s. Life is all about living in the present; fulfilling our short-term goals. No matter how financially prudent we may be, our savings go towards occasions like weddings, or buying a new car. When we’re younger, the investable surplus we have is usually low, which doesn’t leave enough room for retirement savings.

In fact, many Indians are plagued by long-term financial worries. The Global Benefits Attitudes Survey 2016—released by professional services firm Willis Towers Watson Public Ltd—revealed that 56 per cent of Indians anticipate a less comfortable retirement as compared to their parents’ generation. One in three revealed they lacked confidence in having sufficient financial resources 25 years into their retirement.

One of the reasons for this is that predicting post-retirement living and medical expenses can be an extremely daunting task, because one doesn’t know how long they will live. Additionally, when it comes to retirement planning, people live in denial about their financial situation and often suffer from the “too early to plan” syndrome. After all, when you’re in your prime and earning well, it’s easy to procrastinate planning for old age. You assume you have a lot of time left; but in reality, you don’t.

Therefore, not making retirement planning a financial priority is a huge mistake. Regardless of your expenses and goals through your 20s and 30s, it’s critical to start building a retirement corpus. Setting aside small amounts at an early age will definitely take the pressure off when you’re closer to retirement.

The need for holistic retirement planning
Everybody aspires to enjoy a relaxed retirement; one that will offer them the opportunity to take up hobbies they didn’t get a chance to, or fulfill a desire they didn’t have enough money for in the past. Some of you may want to devote your retirement years to travelling the world, building a second career, or taking up a social cause. Retirement provides you with ample time to pursue those dreams, but as life progresses, the most crucial necessity of the post-retirement phase is often overlooked in the pursuit of money or luxuries. Axis Mutual Fund’s cookie jar experiment recently revealed this.

Even though retirement as a phase is synonymous with relaxation, one can’t truly enjoy the perks of a laid-back retirement if they are not in the prime of health. And when a health crisis occurs, you’re forced to divert your savings towards medical expenses: The same savings you hoped to fulfill your dreams with. It is best to rethink your expenses now, and adopt a holistic retirement planning approach where you make both a priority: good health and your dreams.

The right way to plan for retirement
Proper retirement planning involves understanding how much you’ll need to save, how compounding works, and how it can affect your corpus. To help you get started, use these handy tips:
  • Use an online retirement planning calculator to know how much you need to save
  • Start saving for retirement early to benefit from the power of compounding
  • Think about how unexpected medical expenses, as a result of a health emergency, can impact your retirement budget. Safeguard your post-retirement dreams by buying a suitable health insurance plan when you’re younger. Insurance premiums become more expensive as you grow older
  • Establish specific financial goals and estimate the money needed for each financial goal to invest correctly
  • The earlier you start saving for retirement, the more risk you can take on; it allows you to invest in equity and beat inflation, giving you a better corpus
  • Plan your investments wisely based on your risk appetite and your retirement goals

Retirement may seem far away when you’re younger, but the closer you get, the more you begin to realize that you have very little time left to make it right. Live a healthy retirement by listing your financial goals, investing wisely, and monitoring those investments.

Source: LiveMint
Please do not reply back to this mail. This is sent from an unattended mail box. Please mark all your queries / responses to
Information provided on this newsletter has been independently obtained from sources believed to be reliable. However, such information may include inaccuracies, errors or omissions. and its affiliates, information providers or content providers, shall have no liability to you or third parties for the accuracy, completeness, timeliness or correct sequencing of information available on this newsletter, or for any decision made or action taken by you in reliance upon such information, or for the delay or interruption of such information., its affiliates, information providers and content providers shall have no liability for investment decisions or other actions taken or made by you based on the information provided on this newsletter.