Please understand that the basic aim of life insurance is to cater for financial needs of your surviving dependents in case something happens to you as bread winner of the house.
In case you do not have anybody who is financially dependent on you and your earnings, you do not need ANY life insurance.
A situation could be that your wife is financially dependent on you now but after you, your family pension, income from other sources as also from other assets like mutual funds, will or can still comfortably take care of her, you don’t need to take any life insurance cover.
On the other hand, if you have your children and/or parents dependent on you and their lifestyle or future requirements would be in jeopardy if something happens to you, please take adequate life insurance cover for an appropriate duration.June 27th, 2018
Home loan strikes a big cord with people: with small monthly investments you create a big asset and get good tax savings. Is that the complete truth? If you take a loan of Rs 50 Lakhs at current 8.3% interest rate for 15 years for a 70L house, you will pay an EMI of Rs 48,652 for 15 years, a total interest of Rs 37.57L and thus end up paying back Rs 87.57L to home loan company for 50L borrowed. Your house costs you 1.07 Crores practically! On this you save a tax of maximum 11.27L over 15 years if in 30% tax bracket, a mathematical average of 75,000/- per year or Rs 6,261/- per month. So, to save a tax of 11.27L, you pay back 26.3L more! Learning – never take home loan only to save tax. Read more at https://humfauji.in/?s=home+loanJune 20th, 2018
Commutation or no commutation should be decided more by your future likely requirements and not by just gut feeling or just because what your friend is doing. If you’re likely to need bulk money in future – children’s major educational requirements or marriage, house construction or major house renovation, desire to travel extensively, wanting to pay off big loans earliest etc – you may need to commute. Remember, you can commute anything between 0 – 50%. However, if you’re likely to need more monthly income in addition to pension rather than bulk, maybe you need lesser or no commutation. In the latter case, you can even commute and invest the bulk amount efficiently to get the monthly income that you need in a more tax-efficient manner. You may like to read more on this on our blog at the link: https://humfauji.in/?s=COMMUTATIONJune 20th, 2018