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Treat Your Car Like Family: Have Sufficient Auto Insurance

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Take care of your car, and it will take care of you – or at least take you from one place to another. Properties like vehicles must be taken care of if we want them to serve us well for several years. Maintenance and insurance are two different stories, even though car repair / mechanical breakdown insurance combines both into one story, yet both must be applied to our beloved cars no matter how. Both accidents and vehicle damages are unforeseen unfortunate events. We never know when we will encounter them.

Getting car insurance quotes and signing for an auto insurance contract take our worries away from our vehicles and gives us peace of mind that it will be taken care of in case something unexpected occurs while keeping us financially covered from unwanted costs involving it. At these times of pandemic, when public transportation is a place where viruses thrive, having your own personal car is a necessity, and as car owners, we have to be prepared for everything. Auto insurance policies can cover minor damages such as a scratch on the body paint as well as major damages caused by acts of nature, vandalism, or car accidents.

When a tree hits a car in the midst of a storm, for example, the damage caused to the vehicle may be covered by its car insurance, giving us fewer worries during different weather conditions as the insurance company is taking care of our car repair or replacement. Besides, when our car is sufficiently insured, it protects us, too by covering our medical expenses, in case we suffer any injuries or medical conditions while driving.

Finding the right Auto Insurance for your vehicle

If you are new to driving or vehicle ownership, then this article is good news for you! Car insurance cost depends on many factors, including the make and the model of your car. The higher your car value, the higher the cost of your car insurance. The good thing is that you can leverage it both ways, as certain cars cost less to insure, and you can take advantage of different discounts given by various auto insurance providers when selecting an insurance plan for your car.

 

Some dealers offer insurance together with the car you purchased. It is excellent since most dealers will give you a discount on signing an insurance contract with them. It is, however, recommended to consider other options from auto insurance comparison sites to get a full picture of both rates, coverages, and company reputations.

 

There is also an advantage to having multiple vehicles. Most auto insurance companies will offer you a significant discount for having all of your vehicles insured with them. Consulting a local insurance agent may be helpful for finding the best package for you. You can easily find an auto insurance agent near you through a simple Google search.

What does Auto Insurance cover for your car?

According to the Insurance Information Institute, most basic auto insurance policies consist of 6 types of auto insurance coverages:  bodily injury liability, personal injury protection, property damage liability, collision, comprehensive, and uninsured/underinsured motorist

Gap insurance

We know that car values depreciate quickly. If a charter vehicle is involved in a mishap beyond repair, there’s a chance a payment is still required by the dealership for the remaining months unpaid of yours. There will likely be an amount difference in the money you’ll receive from the insurance company. This is known as gap insurance.

The good thing is that the cost of gap insurance is tied to your leased car’s monthly payments. The company seller of the vehicle buys insurance for the cars they sell and then charges the buyer for that claim; this is called a gap waiver. It merely means you will not be charged for the gap amount if your car is totaled.

Research

Always research for companies, services, rates, promotions, and discounts. Take advantage of plans or packages that will suit your budget. Most insurance companies provide a variety of discounts. For example a full-payment discount, a good driver discount, or a multi-policy discount.

Some insurers will give a discount on auto insurance by simply asking for it. Researching online for these discounts is a great step for getting cheaper car insurance rates for our desired coverage. 

Takeaway

It’s always best to be prepared, accidents may not happen to us every day, but they happen all the time and we have to be prepared. Protecting ourselves, our properties, and our assets with sufficient insurance keeps us financially protected and keeps our vehicles in their best condition over time. Not only does this give us peace of mind, but it also secures us financially from any misfortunes and unexpected events involving our cars. 

By planning our future we have fewer obstacles when unfortunate events strike us. Since our cars or any vehicles we have are a necessity nowadays, it is extremely important to sufficiently ensure it to keep ourselves worry-free and financially covered. 

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Health

Investment Plans that Allow Withdrawals for Critical Illness Treatment

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Critical or major illnesses can be costly, and the hospital bills for such illnesses tend to be huge. When a critical illness strikes any person at any time, he or she will have to withdraw the funds meant for their long-term investment, so that they can pay for the treatment. So, in cases like these, the investor needs to carefully analyze their investment avenues to pick the best investment option for their treatment.

 

The best investment options that allow withdrawals

 

Most investors assume that they want to make money as fast as possible. And so, they bank on their investments to skyrocket in a short amount of time. As a result, they tend to look for the best investment plans that tend to give such returns. Also, the best investment plans for any person mean the risks involved should be as low as possible.

 

This is not the case, in reality; however, such investment options simply don’t exist. So, the higher is the risk, the higher is the reward or the higher is the returns. Hence, when you go hunting for investment plans, you ought to bring your risk profile into the picture and see whether it meets the actual risks involved.

 

On that note, all investment products are classified into two types, namely, financial and non-financial assets. The financial assets are further classified as fixed income as well as market-linked assets. Fixed-income assets include all those assets like Public Provident Funds or PPFs and bank deposits, and the market-linked assets include those assets including stocks or mutual funds.

 

When it comes to non-financial assets, that is, things like gold or real estate, most people tend to invest in them.

 

With that said, here are the best investment plans that work.

 

  • Direct equity: The silver-lining

 

Stock trading isn’t everyone’s thing and so is investing in them. Stocks tend to be volatile and give no guarantee of returns. Furthermore, if choosing the right stock is a real pain just think about the entry and exit. So, in all, trading stocks or investing in them isn’t something everyone’s good at. 

So, where does the hope lie? Why it lies in investing in the equity of course? With the ability to return higher inflated adjustments, no wonder they are one of the most popular modes of investment.

 

They are all not always sweet and sugary. There are many risks involved in them too. Unless one chooses to go for the stop-loss method, he or she can lose a considerable amount of their capital. However, there are a few ways in which you can reduce this risk. One of the most popular ways is the diversification of investments across different market sectors.

 

At present, the one-, three-, as well as five-year market returns for equities stand at 13, 8, and 12.5 % respectively. A Demat account is required if one wants to invest in inequities. So, aren’t these reasons enough for direct equities to be one of the best investment plans?

 

  • Equity mutual funds: Investing in equities and equity-related securities

 

The current rules and regulations of SEBI or the Securities Exchange Board of India state that equity mutual funds must invest at least 65 % into equity assets and related securities and instruments. Equity mutual funds tend to rely heavily on the fund manager as far as the generation of returns is concerned. The fund manager has the option to manage the equity mutual funds either actively or passively depending on the type of funds.

 

The ability of the fund manager is decisive of the returns generated in an actively traded fund. However, in the case of a passively traded fund like those of index funds or exchange-traded funds, they tend to track the index that underlies them. Equity funds are classified from market capitalization or sector-wise investment.

 

They are also classified by whether the fund is a domestic fund, that is, one that invests only in Indian stocks, or an international fund, that is, one that invests in overseas companies. The current one-, three as well as five-year returns these funds are generating stand at 15 %, 15 %, and 20 % respectively.

 

  • Debt mutual funds: The other best investment option?

 

Debt mutual funds tend to produce steady returns. In that, they tend to be less volatile and pose lesser risks as compared to equity mutual funds. They invest in those securities which generate interests like treasury bills, commercial papers, government bonds, and other such securities and money-market instruments.

 

The current one-, three-, as well as five-year returns for debt mutual funds, stand at around 6.5 %, 8 %, and 7.5 % respectively.

 

  • National Pension Scheme: A long-term, retirement-focused investment product

 

The Pension Fund Regulatory Authority or the PFRA manages the NPS or National Pension Scheme or System. There is a minimum annual contribution for all NPS tiers, and the one for Tier-1 has been brought down from Rs. 6,000 to Rs. 1,000. The National Pension System invests in varied assets like equities, fixed deposit accounts, corporate bonds, liquid funds, and government bonds among others.

 

Exactly how much can one invest in the National Pension Scheme primarily depends on the amount of risk the investor is willing to take. The current one-, three- and five-year returns for Fund option E, under this scheme stand at 9.5 %, 8.5 %, and 11 % respectively.

 

  • Public Provident Funds: A long investment tenure of 15 years

 

The Public Provident Funds are one of the popular investment options that people tend to put their money into. This fund tends to give a large amount of compounded, tax-free interest for 15 straight years. There’s no doubting that this is one of the best investment plans out there. This is because, the interest accrued as well as the money invested is sovereignly guaranteed, which makes this one of the safest and best investment plans.

 

  • Bank fixed deposits: A safe bet

 

Under the fixed deposit scheme offered by banks, the rules laid out by the DICGC or the Deposit Insurance and Credit Guarantee Corporation states that each depositor will be assured a maximum sum of one lakh on both the principal and interest amount. And there is the option to invest on a monthly, quarterly, half-yearly, or yearly basis. 

 

There is also another option where one can invest on a cumulative basis. The interest accrued from these schemes is subject to taxes as per the income tax slabs of the investor.

 

  • Senior Citizens’ Saving Scheme: The first choice for retirees

 

The Senior Citizens’ Saving Scheme is a must-have for all those senior citizens and retired people out there. The investment scheme stands up to its name by allowing only senior citizens to invest in them. Anybody above 60 years of age can invest in this scheme through a post office or a bank. The scheme comes with a tenure of five years and the current interest earned from this scheme stands at 8.3 % per annum. The investment amount is capped at Rs. 15 lakhs. However, the scheme does allow for an investor to have more than one account.

 

  • RBI taxable bonds: Invest in a Bond Ledger Account

 

With the replacement of the 8 % Savings Bonds of 2003 by the government and the introduction of the 7.75 % Savings Bonds, you can invest in them for seven years in a Demat account or a Bond Ledger Account. A Certificate of Holding is handed over to the investor as proof of his or her investments.

 

  • Real Estate: Your go-to investment option

 

Your own house is never an investment. Rather, the property you buy in addition to your own house is your investment. The value and rent you can draw from any property primarily depend on the location of that property. Real-estate investments give two forms of returns. They give returns in rent form as well as in capital appreciation form.

 

Real estate tends to have low liquidity. One another big risk real estate investment pose is the regulatory approvals. Nowadays, however, there are real estate regulators to do just that.

 

  • Gold: The investment concerns of safety and high cost

 

Gold is a good investment option. Although it comes with its own set of risks including theft or the risk of high cost. There are also the ‘making charges in case you are considering investing in jewelry. These charges are anywhere between 6 % and 14 % of the actual cost of gold. One alternative to reduce the risks gold poses is to invest in gold ETFs.

 

These investments tend to take place via stock markets, and the assets considered here are gold. Sovereign Gold Bonds are another good way to invest in gold in paper form.

 

Therefore, these were some of the best investment options provided to an investor. Although some of them are fixed-income plans and others are market-linked assets or investments, both of them have the same goal to achieve. Create more wealth for the investor by generating higher returns. Market-linked investments help with market volatility, whereas fixed-income investments help preserve the wealth accrued. It’s always better to have a mixed set of investments, while keeping the goal, risks as well as investment horizons in mind.

 

 

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Insurance

The Importance of Healthy Financial Decisions in Times of Turbulence

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Human beings are undeniably the wisest living organisms on this planet. Gifted with the ability to invent, think and make decisions, we are all able to adapt to any environment we’ll be put in. We can analyze situations, as well as create solutions for every problem that we may encounter. As such, this relates to our financial lives as well. Investing, founding businesses, and getting insured are all wise financial decisions. This article will touch on insurance specifically.

 

Identifying the Real “Must-Haves”

 

Getting insured is one of the components of healthy financial management. As individuals, be it, employees or business owners, we have responsibilities and duties that we need to fulfill and goals we have to meet in life, which in many cases, financial freedom allows. Insurance in this case becomes handy in protecting us from unexpected financial loss. If we encounter some misfortune that affects our financial lives and requires an unexpected financial expense, certain insurance policies cover it and allow us to continue living our lives without the huge unexpected cost resulting from this unexpected event. During these times of pandemic, we must know and evaluate the things that we need. 

 

Many car insurance companies, for instance, are allowing their policyholders to switch to a pay-per-mile model and provide cheaper quotes, and by that allow policyholders to save more on their car insurance since COVID-19 made most of us drive less. Certain business insurance policies, such as Business Owner’s Policy, or BOP, are covering COVID-19 loss of income as well. This is the case with several other insurance products that are vital in regular times, but specifically in such dramatic times. It is enough to learn how Wimbledon’s tennis tournament organizers received a $141 million payout for their event cancellation thanks to carrying a $2 million pandemic insurance coverage over the prior 17 years, to understand why we should always be financially prepared in advance. 

 

We must know how to separate “needs” from “wants”. Knowing to separate what you need from what you just want is a helpful strategy when it comes to taking care of your financials. It is a central aspect that must be considered for us to avoid unhealthy financial management. When you know how to distinguish which is which between these two, maintaining excellent financial condition becomes a piece of cake. 

Seek from those Who are Knowledgeable

When it comes to saving, getting the right financial advisor is much suggested. It is undeniably hard to keep things in order just by yourself. While money has to be kept moving and investing it in some stock, bond, business, or real estate is much more recommended and profitable in the long run, sometimes we need to save to buy a certain thing, be it a new car, a new home, or something else. To help through the maze of financial prioritization, a financial advisor, and in some cases even a good financial online tool, becomes handy – as we always need someone knowledgeable and experienced enough regarding the things that we are not that familiar with financial-wise. Getting help from a financial advisor may come with a cost but it will help you get your financials on track in case you are unsure of your own ability to handle it on your own – and sometimes, even when you are. When it comes to choosing the correct financial advisor for you, it is best to do your research thoroughly. Asking questions, looking for online reviews, as well as conducting interviews with those professionals who have more experience dealing with financials and investments is important before choosing one. After all, it is not just assets we are putting at stake, but our whole life.

Awareness is also one massive impact in securing an investment. When you invest, you engage yourself with the market you’re investing in. In today’s economy, it is a must to keep ourselves informed about all the latest updates, industry trends, companies, and markets. The economy is continuously changing because of various reasons like inflation and problems between markets. This sometimes leads to a more significant impact wherein investments in certain countries are being affected. Know what is happening in your surroundings and be keen to learn. Keep yourself updated as much as possible about the newest happenings involving stocks and investments. This is not overreacting about things but instead, being responsible enough in handling your assets and would help you a lot in making your decisions. Keeping yourself informed of the real deal within the economy will make things easier for you when you are about to make decisions and will enable you to spend your assets wisely. Having awareness will not just make you informed, but most importantly equip you with the correct decisions and sufficient answers when unexpected conflicts try to get in your way. The best investors have the best sense of the market.

Get Secured

As individuals, most of us seek stability. We all want to make our lives financially secure and independent and live our daily lives without thinking about what will happen next. We all aspire to be prepared for anything that could happen, including global disasters like pandemics. We all want to become the best versions of ourselves in all aspects, including the financial one. Being financially independent does not only make you financially stable but most importantly, gives you the freedom to do what you want, where you want, with whoever you want, as long as you want. It gives you that feeling of fulfillment, especially when you see that your hard work is now all paying off. 

 

Healthy financial management and decision-making would not just give you financial freedom and independence in times of turbulence, but it will also help you grow as a fulfilled individual. And most importantly, your financials do not only rely on how much money you earn from working hard all day but instead, it is all about how you put your money to work for you. 

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