Daily News

Early Payment: How to use your surplus money optimally

Individuals should utilize their surplus money to prepay long-term debts such as credit card balances, personal, vehicle, and mortgage loans at a time when fixed income products are yielding lower yields and stock markets are still exuberant.

use your surplus money

Experts advise that if a person can earn a better post-tax return than the current interest rate on a home loan. In this case, he should invest the extra cash. They claim that equity the valuations inequities are stretched and the returns may be muted. Furthermore, investors who begin investing in equities now should not expect substantially higher returns. Before prepaying loans that will help you grow an asset in the long run. Be sure you have enough emergency money to cover a year’s worth of expenses, as well as enough life and health insurance. Otherwise, if the person faces any financial instability it might push them for a personal loan; which has a significantly higher interest rate than a home loan.

However, it is preferable to pay off a vehicle loan with extra cash because a car loan has a higher rate of interest than a home loan. It has no income tax benefits, and, finally, a car is a depreciating asset. Whereas a house is normally an appreciating asset.

Prepay home loan

In cases where equity investments have produced higher returns, earnings can be booked and a portion of the home loan can be prepaid. According to experts, the best strategy in this bull market is to stay invested while taking partial profit bookings. As well as transferring some earnings to fixed income or prepaying higher-interest loans. Prepaying a house loan is perfect now that interest rates have fallen in the last two years; as a jump in the interest rate will burden the borrower even more.

use your surplus money

If a person is unable to make a lump-sum payment, experts advise that they take a systematic withdrawal plan from their mutual fund assets. Then the user shall use the surplus monthly income to increase the EMI. Users can request an increase in their ongoing EMI, at any time; it is generally free of any fees. Stepping up the EMI for a salaried employee also helps as the borrower advances in his profession. Furthermore, they receive better pay packages, resulting in more disposable cash.

Clear credit card dues

Any surplus money must be utilized to pay off credit card dues. Rolling the credit by paying the minimum amount due is not a good idea; as banks charge an interest rate between 35% and 45% per annum depending on one’s spend, payback, and utilization patterns. In fact, rolling credit is a lot more expensive than even a personal loan, which can be availed at 13-15% per annum. For more such updates, keep watching this space!

Daily News

5 personal finance concerns in these uncertain times that need to be addressed fast

Covid-19 is spreading at an alarming rate. The lockdowns and limitations on movement wreaked havoc on businesses, organizations, and a variety of economic activities. Financial uncertainty has been the most concerning aspect of the pandemic-induced instability. Finance concern must be the priority for difficult times like this.

finance concerns

According to the FICCI, the Coronavirus epidemic in India resulted in a substantial decline in cash flow for 80% of businesses. People have become financially insecure as a result of the circumstance. As a result, it becomes necessary for people to conduct a thorough assessment of their current financial situation and the impact of the pandemic on it.

Five personal finance concerns in these uncertain times:

emergency funds

Inadequate Emergency Funds

It's a good idea to keep enough cash on hand in case of an emergency. It cannot be denied that the epidemic and subsequent lockdowns highlighted the need of having appropriate emergency finances.

Increase in debt

Increased debts are a major source of anxiety for people throughout this global pandemic. Those who have lost their jobs find it difficult to repay the loans they have taken out for various household responsibilities.
5 financial concerns

Delayed or late payments

Late payments are inconvenient because they typically result in additional fees. As a result, this financial worry must be addressed in order to avoid additional charges. It is important to develop a simple way to manage financial obligations.

Problems related to cash flow

The importance of cash flow cannot be overstated. Any cash flow problem continues to worry consumers since it disrupts the regular budgeting process. Moreover, cash flow problems become a hindrance for those who must meet financial obligations.
health insurance

Lack of health and life insurance plans

People must choose adequate health and life insurance plans since the Coronavirus has not been completely eradicated. These are crucial in preparing people to deal with an unexpected emergency situation during the epidemic. Lack of insurance exposes an individual and his or her family to financial hardships and leaves them unable to deal with financial demands that may arise at any time. When faced with a crisis, having a life insurance plan can help the entire family.

For more such updates, keep watching this space!

Daily News

All you need to know about monsoon-based health insurance coverage

A monsoon-specific Health Insurance policy’s main benefit is that it covers healthcare costs incurred as a result of hospitalization or out-patient treatment for the majority of severe vector-borne diseases, for people of all ages.

hospitalization during health issues - health insurance

There’s no denying that the monsoons hold a special place in our hearts, despite how difficult they might be at times. A season as alive as this deserves to be fully appreciated without having to be concerned about seasonal health hazards that can strike at any time; often resulting in illness or hospitalization. The season particularly necessitates extreme caution due to the numerous diseases, vector-borne illnesses, and other viral infections. Which are prevalent during this time of year. However, with Health Insurance on your side to protect you from financial hardships incurred, they’ll only be a small annoyance.

All you need to know about monsoon-based health insurance coverage

A monsoon-specific Health Insurance policy’s main benefit is that it covers healthcare costs incurred as a result of inpatient or out-patient treatment; for the majority of dangerous vector-borne diseases, for people of all ages. In recent years, the majority of disease-specific plans have become the most tailored insurance services. These services generally offer a variety of valuable benefits to consumers.

health insurance

The following are some of the most common advantages:

  • Full coverage for hospitalization fees for a wide range of ailments, including infections, unintentional injuries, and non-communicable diseases.
  • It includes diagnostic tests and examinations.
  • Coverage for the visits to the ER and day-care treatments
  • During an emergency, coverage for both a road and an air ambulance is provided.

Furthermore, many of these plans can be effectively topped up in case of severe health deterioration leading to ICU. The features also include a No Claim Bonus, which increases the Sum Insured for each year without a claim. Along with some plans offering a 200 percent increase, Unlimited Automatic Recharge of Sum Insured, and global coverage.

health insurance policy

While almost all Health Insurance policies include the most basic benefits. It is best to find out more about the waiting periods that apply to various conditions under those plans. The waiting period refers to the whole time that one must wait before being able to claim on expenses incurred for certain ailments or pre-existing disorders.

Other basic inclusions include 30-day and 60-day pre-and post-hospitalization therapy; alternative treatment forms such as Ayurveda, Unani, Homeopathy, and Siddha; domiciliary treatment (getting care at home), organ donation expenditures, and so on.

For more such updates, keep watching this space!

Daily News

LIC unveils Arogya Rakshak health insurance plan; know how it will work

LIC unveils Arogya Rakshak’s health insurance plan. The Arogya Rakshak policy provides fixed health insurance cover against certain specified health risks. It provides timely support in case of medical emergencies. Thus, helps the insured and his family to remain financially independent in difficult times.


Life Insurance Corporation, LIC’s new health insurance plan called Arogya Rakshak can be beneficial for seekers. This is a non-linked, non-participating, regular premium and individual health insurance plan.

The policy seekers can cover themselves as the principal insured (PI), their spouses, all children, and parents under the policy. Principal insured refers to the person who is the actual policyholder at the time of taking the policy. Principal insurers, spouses, and parents in the age bracket of 18-65 can avail themselves of the Arogaya Rakshak plan. However, for children, the age bracket is 91 days – 20 years to avail of the Arogya Rakshak plan.


The cover period will be available for up to 80 years for principal insurers, spouses and parents. Moreover, the same is valid for children for up to 25 years.

Benefits offered under LIC Arogya Rakshak Health Insurance

  • An option to choose a flexible benefit limit.
  • Flexible options for the premium payments
  • Major financial protection if the need comes for hospitalization and/or surgery
  • Lumpsum benefits irrespective of the actual medical costs
  • If more than one member is covered under the policy, a premium waiver is available for other insured persons in the event of the unfortunate death of the original principal insured. The person has to be the policyholder at the inception of the policy
  • In case a policyholder or others covered under the plan have to undergo surgery that falls under Category I or Category II. Then, he/she is eligible for Premium Waiver Benefit.
  • To increase the plan coverage, policyholders have the option to avail of products like Auto Sum Up Benefit and No Claim Benefit. They will also receive benefits on calling an ambulance and while going for a health check-up.
  • Policyholders can avail all of these benefits with optional riders like LIC’s New Term Assurance Rider and LIC’s Accident Benefit Rider.

For more such updates, keep watching this space!

COVID-19 Daily News

Health Insurance Cover: Home treatment coverage to come under new plans as add-ons; customers may have to pay more on Premiums

This pandemic has made us learn that any illness doesn’t discriminate in any way of age, race, and religion. Health insurance can actually help your loved ones through this. The whole pandemic is becoming very scary. We want our family and loved ones safe and secured. Every day people are facing risks of death. Most of them are facing financial problems.

Are you insured for these risks? Considering these situations, health insurance companies are providing insurance for covid treatment also.

International Regulatory and Development Authority of India (IRDAI) launches two kinds of Insurance policies

  • Corona Kavach
  • Corona Rakshak

You can buy these two policies from any company like LIC, Future general, Max life, Star health insurance, etc. The terms and conditions for the policies will remain the same. There will be different premium amounts changing company to company.  IRDAI is encouraging to allow insurance companies to include home treatment services in the new health insurance policies as an add-on service.

The availability of a bed in the hospitals is a serious problem for now. As the number of patients is increasing day by day in the pandemic. Home treatment is the best option to treat your family members in existing health insurance policies. It will take a little extra premium to avail of all the facilities.

Corona Kavach

health insurance corona kavach

It is family health insurance that reimburses all the hospital bills during covid-19 treatment. It is an indemnity-based plan. The special feature of this policy is the availability of co-morbid conditions coverage also.

corona kavach

There are conditions to claims this insurance

  • To claim, the insured person must be diagnosed with covid positive from the authorized hospital.
  • There must be a continuous 24 hours of hospitalization of the patient.

Corona Rakshak

This insurance policy is mainly a benefit-based plan that ensures 100% of the sum paid to the policyholder. Its waiting period is also 15 days. It doesn’t have the feature of comorbid conditions. Unlike corona Kavach, to claim the insurance patient must be hospitalized for continuous 72 hours.

Corona Rakshak
COVID-19 Daily News Education

PM-CARES for Covid Affected Children

The central government launches a scheme for covid orphans. Those who have lost their parents in the pandemic, such children will get a monthly stipend and much more. PM-CARES scheme for children is specially designed for Covid affected children. Read the full article to get all the information about the scheme.

PM announces- "PM-CARES for children" scheme

There is some excessively big announcement made by the central government. Children will get free health insurance of 5 lac rupees under the Ayushman Bharat scheme till 18 years of age. PM care will pay the premium

Prime Minister Narendra Modi said that it is a great loss to lose parents. And our children represent the future of the country. We will do everything to support and protect the children, he added. It is our duty as a society to care for our children and instill a hope for bright future.

PM-CARES scheme for covid affected children launched on the completion of 7 years of Modi Government. Earlier, we also had BP president making an appeal to chief ministers of BJP ruled state to introduce special schemes for children affected specifically by COVID-19 or orphaned due to COVID-19 and lost their parents.

children below 10 years

Children below 10 years of age – Government will protect and accommodates children below 10 years of age. Such children will put under the childcare of the concerned state government. Their bright future is the utmost priority.


Children 11-18 years of age – Children of this age group will also have fully funded education. The government will assist the students with education loans for special courses according to the existing norms. The PM-CARES will pay the interest on this loan. In addition, govt. will provide a health insurance cover worth rupees 5 lac.

Children above 18 years of age – During the period of higher education, govt will provide a corpus of rupees 10 lac for the child’s personal requirements from PM-CARES. It is a specially designed scheme.

For more updates like these, keep watching this space!