Desai And Amp

Insurance is one of the most important financial topics in today’s complex world. Failure to have sufficient insurance coverage is the quickest and easiest way to accrue mass debt. Nothing will make your business, car, house, family, or self more vulnerable or susceptible to financial strain than a lack of adequate insurance. However, paying too much for insurance can be a financial strain in itself. And paying for insurance that is not needed is just money down the drain.
Many people have a preconceived notion that insurance is just a waste of money, something that is not necessary. This is not true. Almost everyone needs insurance. How do you know? If you own anything that cannot be easily replaced without economic hardship, it should be insured. If your house burned down, what would you do? If you became disabled at work, would there still be food on the table? Or, in the worst case, would your family be provided for if you passed away?
These are tough scenarios to imagine, but they happen every day. It is important to understand the consequences and to be prepared for the worst. Some people tend to think of insurance as a luxury, but this is not true at all. Insurance is simply a way to avoid an impoverished state.

Why is Tax planning important ?
Tax planning is not only a basic duty of every one of us but is also important for our own financial planning. It helps you reduce your income-tax liability and also ensure a better future due to compulsory savings in highly safe government approved schemes.
How do you calculate the tax ?
Calculate your taxable income under all heads i.e., Income from salary, house property, business & profession, capital gains and income from other sources.
Calculate tax payable on the gross taxable income for the whole financial year (i.e., from 1st April to 31st March) using a simple tax rate table (we may provide a tax table link here).
Minimize your tax payable amount through sensible tax planning by comparing and choosing the best tax saving scheme based on your age, social liabilities, tax slabs and personal preferences
You should choose you investment options in such a way, that the post-tax yield is the highest possible keeping in mind the basic parameters of safety and liquidity.
Life insurance plans are effective way to save taxes when doing your tax planning. 

Fixed deposits are perhaps one of the most common investment instrument used by common men. The biggest advantage provided by fixed deposits is that it provides option to grow your wealth at a low level of risk. As the name entails, Fixed Deposits are deposits of money for a fixed tenure. As a reward to part with your money, the deposit acceptor provides an interest. The interest rate provided on a deposit varies with the tenure of a deposit and the credit worthiness of the deposit acceptor. Hence it would be a common experience to find that the interest rate offered by Banks for fixed deposit would be less than that interest rate offered by Companies for the same deposit tenure as the credit worthiness of banks is better than that of the Companies.

Loss of a life cannot be compensated for and this is the basis of Life Insurance products. Other products such as medical insurance would reimburse an individual for an expense incurred by the respective person in case of medical mishap. However, the value of life of a person cannot be reimbursed and hence all Life Insurance products work upon the basis of paying an amount (also known as sum assured) in an unfortunate incident of death based upon an initial agreement between the insurer and the insured person. The amount of premium paid by the insured depends upon various factors such age, existing medical ailments, lifestyle of the insured, duration and amount of insurance. If the amount of insurance requested by the insured is over a material amount, the insurance provider may require a medical checkup before entering into an agreement with the insured.

Amongst the types of life insurance products available in the financial market, the most popular options are Term Insurance and Endowment Policy.

In Term Insurance policy, the insured person pays a regular insurance premium for the duration of the insurance policy and if the insured dies during the tenure of the policy, the lump sum amount / sum assured is paid to the nominee / legal heir of the insured. If such an event does not arise with the policy term, no amount is paid by the insurance company to the insured.

In case of Endowment Policy, similar to term insurance, the insured person pays a regular insurance premium for the duration of the insurance policy. During this duration, the insured person is covered if a death event occurs, whereby the sum assured amount is paid by the insurance company to the nominee or the legal heir of the insured person. However, if no such event arises, the insured person is paid the sum assured after the expiry of the policy tenure. Several flavors of endowment policies exist where such sum assured is paid throughout the policy duration (in case of money back policies), or where the insured pays insurance premiums for a specific duration only and gets a life cover for an extended period of time. Other policies invest a portion of insurance premiums in stock markets and aim to generate higher return and hence a higher maturity payout (in case of Unit Linked Insurance Plans). In summary Endowment Policy plans serve dual purpose of providing insurance and acting as an investment option in the same time.

In the maze of several types of insurance products available through scores of insurance companies, BFA assist their clients to obtain the right product to suit their requirements.

 

There are many techniques in which it is possible to plan for your retirement solutions. The very first step in making the correct moves is usually the step that involves truly developing a plan of action that you can follow as a family. Lots of people focus too much on the now or too much on the later and have a great deal of difficulty in relation to developing a happy medium for savings and investing.

Even if you are younger, start putting money often in to a retirement account. A little investment at a early age can easily grow into a significant sum as soon as retirement comes about. Whenever you are young, you've got time on your side.

Just logon to our Financial Planning section and fill up yourRetirement Planning form - You will be impressed at how speedily your money will compound