Author: nilkanthadvisory.com

A savings policy or saving plan is a financial product that helps fulfil the twin goals of wealth creation and life insurance. In a savings insurance plan, buyers get the dual advantages of making goal-oriented savings and securing their loved ones in times of uncertainty.  Saving investment plans are of various categories and often help buyers tick off many life milestones like education, higher education, marriage, home purchase, travel, and so on. It also comes in handy in clearing debts and taking care of financial emergencies like health scares, loss of employment, and so on.  Before saving in an insurance savings plan, it is crucial to understand the types of savings plans in India, their benefits, and how each one works.  What are the Types of Savings Plans, and How Do They Work? A savings policy works on a simple principle. First, you pay a specified premium to the insurer offering the savings investment plan. The money you give gets invested in non-market linked instruments and accumulates returns at a pre-specified interest rate.  The initial invested money grows and multiplies over a period of years. Once the period passes, you start receiving the accrued income at regular intervals during the income payout period, in a lump sum at the end of the tenure, or a combination of both, monthly payouts and a lump sum.  Monthly savings planA monthly savings plan is one of the most popular types of savings plans. Under this plan, you receive guaranteed1 income every month after a specific period of premium payments. You receive the monthly income during the income period or maturity and can use it for your monthly needs. You also get life insurance coverage so that your family members receive financial support on your demise. A guaranteed1 return savings planIn a guaranteed1 return savings plan, you…

What is Term Insurance? Definition and Meaning Why Term Insurance is better? Term plans provide pure life cover. This means there is no savings / profits component. They are basic plans which make life insurance more affordable vis-à-vis other options. It is possible for the policyholder to opt for a larger life cover at a lower premium when compared to a similar endowment plan. Some of the key features that make term plans indispensable include 1. Larger life cover Since term life insurance plans are more affordable it is possible for an individual to opt for a higher life cover for the same premium as an endowment plan. For e.g. a 30-year old can get a term plan with a cover of Rs 1 crore for a 30-year term by paying a premium. The Rs 1 crore endowment plan would most likely be out of reach for most 30-year-olds. However, purchasing a term plan for a comparable coverage is more reasonable. You can even avail life cover till the age of 100 years by opting for a whole life insurance. 2. Riders The policyholder can attach riders to the term plan, thereby enhancing the utility of the policy. So by opting for a critical illness rider or a critical illness plan, for instance, he is entitled to receive the sum assured on being diagnosed with the critical illness. This is in addition to the death benefit of an equal amount on death over the term of the policy. There are other riders to choose from like - loss of employment cover, disability cover, waiver of premium cover, among others. The policyholder should select riders based on his specific needs to make the life cover more suitable and meaningful. 3. Enhanced cover Certain insurance companies provide the flexibility to enhance life insurance coverage throughout critical…

All You Need to Know Warehouses play an important part in the expansion of India's logistics and supply chain business. They are the custodians of stockpiles, storage facilities, and the lifeblood of seamless commerce. Despite this, there exists a realm of risks that could potentially impede the smooth movement of commodities within these storage areas. What is Warehouse insurance policy? Warehouse insurance is a type of policy that provides coverage for businesses that operate in a warehouse. This type of insurance is designed to protect businesses from financial loss in the event of damage or loss of goods, property damage, or liability claims. Warehouse insurance is essential for any business that stores goods in a warehouse, as it can help them recover from unexpected losses. One of the main benefits of warehouse insurance is that it provides protection against a wide range of risks. This can include damage or loss of goods due to fire, theft, or other types of damage. Additionally, warehouse insurance can also cover liability claims that arise from accidents or injuries that occur on the premises. This type of coverage can be especially important for businesses that have employees or customers who regularly visit the warehouse. What are the coverages provided in Warehouse insurance policy? Warehouse insurance policies in India typically offer coverage for a range of risks and perils that can affect goods stored in warehouses. The specific coverages may vary among insurance providers, but some common elements include: 1.Fire and Allied Perils: This includes coverage for damages or losses caused by fire, lightning, explosion, and other allied perils like riots, strikes, malicious damage, earthquakes, floods, storms and impact by vehicles or aircraft. 2.Burglary and Theft: Warehouse insurance may cover losses due to burglary or theft, providing financial protection for the insured goods. 3. Accidental Damage: Coverage for…