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Finance

Here’s Why You Must Switch To A Comprehensive Plan During Car Insurance Renewal

Is your car insurance plan due for renewal anytime soon? If so, you might want to review the coverage you have. If you have a basic third party insurance plan, now might be the time to switch to a comprehensive policy. While a third party car insurance plan offers you the basic coverage you need to legally ply your vehicle, a comprehensive plan can do a whole lot more for you. Let’s take a look at the reasons why you might want to consider switching over to a comprehensive car insurance plan during car insurance renewal.

  • You get protection for own damages and third party losses

The main reason why you should consider opting for comprehensive car insurance is that your own damages in an accident get covered as well. A comprehensive car insurance plan will cover you for third party losses and the damages incurred to your vehicle. This way, you get proper financial protection in case of an accident. With a third party car insurance plan, your own vehicle’s damages will not be compensated for by your insurer.

  • You stay covered against natural disasters and manmade disasters too

One of the biggest advantages of comprehensive car insurance is that you get covered for losses you incur due to natural disasters and manmade calamities too. This means that you will receive coverage (within policy limits) for losses due to earthquakes, floods, theft, fire, and so on. As all these situations can cause severe – and sometimes complete – loss of your vehicle, comprehensive car insurance can prove to be a much-needed financial support in difficult times. Moreover, if your vehicle is stolen or gets completely damaged beyond repair in an accident, you get the IDV (insured declared value) paid to you. You can use this sum to, perhaps, even afford a new vehicle.

  • You can enhance your plan with add-ons

You can also opt to increase the protection of your comprehensive car insurance plan with the help of add-ons or riders. Some of the most popular riders that you might want to consider opting for are zero depreciation cover, consumables cover, roadside assistance, and NCB protector. These riders each bring with them a unique aspect of coverage that can save you a lot of money during a claim. Riders in car insurance are not available with third party insurance; you can only opt in for them if you buy a comprehensive car insurance plan.

So, as we can see, comprehensive car insurance is truly a great choice for any vehicle owner. At an increase in your premium cost, you get far greater protection that your vehicle deserves. These days, you can easily compare comprehensive car insurance plans online and pick the one that suits your needs the best.

Hope that the information in this blog will prove helpful to you during car insurance renewal. Remember that these kinds of benefits are also applicable in comprehensive bike insurance too.

Take care, drive safely, and all the best!

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Finance

5 Financial Habits Gen Z Should Consider

Generation Z comprises an amazing group of people. They are bright, have a positive approach to life and are aware of the world around them. They are also great with technology. In fact, working with technologies related to ICE (information, communication, and entertainment) seems to come naturally to them. But Gen Z is so much more than fun and amusement. They are highly health conscious and open to learning about financial management from an early age. So, here are 5 financial habits that this generation may wish to imbibe.

Financial Literacy

The internet and smartphones have provided easy access to information of all kinds from anywhere and at any time. The first thing this new age generation needs to do is to become financially literate and gather information about the various funding options available to them. They have to deal with the stress of taking and repaying loans for funding their higher education, getting a job, dealing with all the expenses associated with independent living, and a lot more. In such a scenario proper knowledge about the eligibility for a personal loan or an education loan will prove to be quite useful.

Savings

Savings have been and will remain the mainstay of effective financial management.  Every individual whatever age he/she may be should keep aside a specific proportion of their earnings for the future.  The importance of saving and the benefits available due to them cannot be ignored by this generation. And the key is to start early, maybe from the first month of their earning.

Curb Impulsive Buying

Retail therapy works wonders! While that’s true, it’s a good idea to not be overly impulsive. Of course, at times, we’d love to buy a shirt that caught our fancy and that’s okay to do. For more expansive purchases, some financial prudence becomes necessary. It’s a great habit to allocate a small amount of money for impulse purchases and not exceed that.

Keep Track of Online Transactions and Card Usage

In this era of online transactions, keeping track of the amount spent on purchases or making payments is essential.  Credit card usage has to be tracked regularly and the payment of due bills can be automated to avoid unnecessary delays and imposition of penalties. This will prevent them from going overboard and falling into a debt trap.

Choosing the Right Funding Option

Easy access to a lot of information should be used by the internet generation to do research, compare and then finalise a funding option for their higher education or buying a home.  They need to know about the pros and cons of using credit cards, the procedure for making an instant personal loan application and the cost of taking an education loan, and so on. This will help them make the right decision.

Gen Z is still young, and this is just the right time to develop some good financial habits. Kudos to this generation for already thinking about it seriously.

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Finance

STEP UP YOUR SIP GAME

SIPs or Systematic Investment Plans have a lot to offer to investors. Right from ease of investing to rupee cost averaging to lighter on the pockets to inculcating financial discipline among investors, to allowing investors to enjoy the benefits of the power of compounding; the list goes on and on. However, one of the major drawbacks of regular or vanilla SIP is that they invest a fixed amount for the entire investment duration. Investors who are enriched with an extra source of income or bonuses or incremental salary might not be able to tap the maximum potential of SIPs with vanilla SIP. However, there is a solution to that as well – top-up SIP. Let’s understand what top-up SIPs are and how they can help to step up your SIP game.

What is top-up SIP?

Top-up SIP, also known as step-up SIP, is a type of SIP where in you can increase your SIP investment by a fixed number or percentage at regular intervals. Usually, investors receive bonuses or increment in their salaries on a yearly basis. Hence, the most common periodicity of step-up SIPs is on a yearly basis. The basic idea behind step-up SIP investments is that as an investor’s income cash flow increases over time, so should their SIP investments. There are two ways you can increase or amp-up your SIP investments.

Method 1 – Increasing your SIP investments by a fixed number
Under this method, your SIP investments are increased on a fixed rupee basis. For instance, let’s assume you begin to invest in SIP with Rs 5,000 each year and decide to amp-up your investment amount by Rs 2,000 every year. Then, next year your SIP investment amount would be Rs 7,000 (Rs 5,000 + Rs 2,000) and the subsequent year investment amount would be Rs 9,000 (Rs 7,000 + Rs 2,000) and so on.

Method 2 – Increasing your SIP investments by a fixed number
This is a more common approach used by investors. Under this mode, your SIP investments are increased by a fixed percentage at regular intervals. For instance, let’s assume you begin to invest in SIP with Rs 5,000 each year and decide to amp-up your investments by 10% every year. Then, next year your SIP investment amount would be Rs 5,500 (Rs 5,000 + 10% of Rs 5,000). Similarly, the subsequent year investment amount would be Rs 6,050 and so on.

How can step-up SIP help to step-up your SIPs?

Following are some of the reasons why step-up SIPs could be extremely beneficial to your investment portfolio:

  1. Step-up SIPs can significantly reduce your investment horizon as compared to regular SIPs. This is because, SIP investment amount and investment duration have an inverse relation. So, if you increase your SIP investment amount regularly on a periodic basis, your investment horizon would come down allowing you to achieve your financial goals quickly.
  2. It ensures that you invest a particular part of your income even when you are earning a substantial amount. This inculcates investment discipline among investors.
  3. The basic principle behind wealth generation is to either increase or keep a constant ratio of savings vs income cash flows. Step-up SIPs run behind this idea.

Several fund houses and investment portals allow investors to amp-up their investment amount with the help of step-up SIPs. So, what are you waiting for? Amp up your style of investing and invest in mutual funds through step-up SIP. Happy investing!

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Finance

Simplifying the Process of Loan Payment in Singapore

There comes a time when one urgently needs to borrow some money. For Singaporeans, these needs can be something such as buying house assets, funding a business, paying for tertiary education, and home renovation. No matter the reason why you want to take a loan, the bottom line is that the money you take will need to be repaid. In this post, we will tell you some smart tips you can use to make repaying your loan in Singapore easy.

Keep Your Credit Score at its Best to Enjoy Low Cost Credit

If the cost of the loan is too high, the monthly payments are also likely to be high and might negatively affect your financial health. One of the things that make the cost of loans to go high with a huge margin is a poor credit score. Because lenders check your credit score to determine the interest rate to attach to your loan, it will be a good idea to start by working on your score to ensure it is at its best. To pick the loan with the best conditions, consider working with Lendela. Here are a few things you might want to do to improve your credit score:

  • Repay the current debts before applying for new loans in Singapore.
  • Maintain a healthy credit mix.
  • Take short loans and clear them fast and on time to build a positive history.

Borrow Only What You Can Repay Comfortably

It is not uncommon to make a request for a loan in Singapore and get lenders who are willing to offer more. Some people are tempted to take the maximum amount possible and then think of what to do with the cash. However, this is the wrong way to deal with loans because the more you borrow, the more the interest will be during repayment. The secret to making loan repayment easy is to determine the need at hand and only borrow what is enough and that you can comfortably repay.

To determine how comfortably you can repay a loan, you need to go back to budgeting. Once you have factored in all the expenses, such as rent, cost of food, transport, and savings, the remaining amount can be used to repay the loan in Singapore. If you do it this way, repaying the loan will be pretty easy, and no serious interruptions will be realized in your finances.

Automate Loan Repayment

If you have several debts to service every month, it is not uncommon to get yourself forgetting about some of them. Even if you just pay the loans late with a few days, there is a risk of your credit score getting damaged. Instead of risking, why not automate the process of paying for your loans in Singapore?

Simply ask your bank to deduct money for loan repayment and remit it to the lender after your salary is processed. Most banks will be happy to do that on your behalf so that no repayment schedule will be skipped or unnecessary penalties levied. If the debts you are dealing with are many, it might be good to consider debt consolidation plans in Singapore.

As you can see, it is possible to smoothly pay your loan if you plan well before taking it. It is also crucial to ensure you stay committed to repaying the loan for the entire term to improve your credit score and make further access to credit easy. If you took the loan when the credit score was low and later improved significantly, consider loan refinancing to keep the cost of credit lower and clear the debt fast.

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Finance

Large-cap vs mid-cap vs small-cap MFs: All you need to know to get started

When it comes to investing, mutual funds can be a very investor-friendly option due to the low cost of investment and transparency around the underlying securities. For long-term financial goals, financial advisors typically recommend investing in equity mutual funds. These funds can be further classified on the basis of market capitalisation, which is also a categorisation of listed companies.

An introduction to market capitalisation 

The total value of shares of a company determines if it falls in to the broad categories of small-cap, mid-cap, or large-cap. When a company’s shares are available for public trading, the total value of that company’s outstanding shares in the market is called market capitalisation.

For instance, if a company has priced each share at Rs. 30 and if its total number of outstanding shares in the market is 50,000, the market capitalisation of this company can be calculated with the help of this formula –

Price per share x total number of outstanding shares

Rs. 30 x 50,000 = Rs. 15,00,000

Therefore, the market capitalisation of that company is Rs. 15,00,000 as of that day.

What are large-cap, mid-cap, and small-cap mutual funds? 

Small-cap funds

These are the funds that invest in shares of small-cap companies. These companies usually:

  • Are significantly smaller in size, relative to large- and mid-cap companies
  • Could have an opportunity for high growth in instances where an economy or a particular sector is emerging from recession or a low-growth phase
  • Carry high risk for an investor, as these companies may or may not be successful over time

Mid-cap funds

These are mutual fund schemes that invest in shares of mid-cap companies. These companies usually:

  • Are larger than small-cap companies, but smaller than large-cap companies
  • Are perceived to be less risky than small-cap ones but more than large-cap companies, from an investment point of view

Large-cap funds

These mutual funds predominantly invest in shares of large-cap companies. Such companies are:

  • Often referred to as Blue Chip companies, particularly when they make it to the top 50 or 30 companies basis market capitalisation
  • More likely to have a relatively stable business operations during any negative impact on the economy, when compared to mid-cap and small-cap companies
  • Are perceived to be the least risky among different equity categories

It is important to keep in mind that the performance of companies that have small-cap, mid-cap, or large-cap funds varies based on the economic environment and developments over time, and there cannot be any guarantee of risk-free returns from either of them.

Small-cap, mid-cap, and large-cap funds: How do they differ? 

The differences between large-cap, mid-cap, and small-cap have been discussed below across several verticals:

Market cap
Large-cap Invests minimum 65% of Assets Under Management in companies with a market cap of Rs. 20,000 crore or more
Mid-cap Invests minimum 65% of Assets Under Management in shares of companies with a market cap of less than Rs. 20,000 crore; with a lower cap limit of Rs. 5,000 crore
Small-cap Invests more than 65% of the Assets Under Management in shares of  companies with a market cap of less than Rs. 5,000 crore

 

Growth potential (subject to market volatility & term of investment) and risk associated
Large-cap Low growth potential, with relatively lower risk compared to mid-cap and small-cap
Mid cap Moderate growth potential and risk relative to the other categories of equity mutual funds
Small-cap High growth potential and risk relative to large- and mid-cap funds
Volatility
Large-cap Relatively low volatility as prices remain more or less stable even amidst major changes in the economy
Mid-cap Slightly more volatile than large-cap funds
Small-cap Highly volatile as the price fluctuates majorly according to the economic situation, or even industry specific trends

Different mutual fund schemes come with a different level of risk and growth potential. It is prudent to choose a mutual fund investment for your investments basis your own risk appetite that suits your financial goals.

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Finance

Popular Cryptocurrency Types to Invest in 2021

stack of cryptocurrencies: bitcoin, ethereum, litecoin, monero, dash, and ripple coin together, 3D rendering.

bitcoin, ethereum, litecoin, monero

There is a range of different cryptocurrencies available to those looking to invest in the digital crypto world. You will be familiar with Bitcoin, which we will go over briefly, then recommend some other up and comers to view.

Bitcoin

Bitcoin is still the go-to cryptocurrency of the year. At the start of 2021, it enjoyed its biggest rise yet, which also meant it inevitably had to come crashing back down, which it did.

It operated over a global shared network that can contain thousands of individual nodes on the blockchain. This is where you’ll find data regarding financial transactions, which grows when users add blocks.

Bitcoin has been around for over a decade now, originating in 2008 after that year’s disastrous global economic crisis. Whilst money is valued against gold, Bitcoin is measured against the global financial transfer rate.

Ethereum

Ethereum is easily the second biggest token available on the crypto market, after Bitcoin. This coin works within a more specialised part of the blockchain, using a more innovative part of the technology.

As with most cryptocurrencies, the coin does work through the decentralised distributed ledger. The difference here, however, is that the technology that it is backed against is about creating other crypto coins, amongst other digital technologies. This makes it a valuable asset in the digital world.

You can probably imagine that if other cryptocurrencies are doing well, Ethereum will also benefit due to what it actually does.

Bitcoin Cash

This token is eerily similar to Bitcoin, as you’d expect with a name like Bitcoin Cash; the difference here, though, is that it operates on its own unique blockchain. This differentiates it from Bitcoin through processes, but the reason it was created is interesting.

You see, this coin was introduced as a means to process transactions quicker, but through liquidity and money. It originated a few years ago when crypto miners who were all after Bitcoin realised that it might not be a long-term coin to mine and was possibly not sustainable.

Tether

If you didn’t know, Tether is often referred to in the crypto world as the more popular stable coin in the world. Whilst other coins serve various similar purposes, Tether is mainly used within the market to help with volatility by providing liquidity and a hedge.

This stable coin still uses the blockchain much like Bitcoin, but this coin follows the global economy closer, such as the EU Euro of the GB Pound. This coin is transparent, allowing anyone at any time to access the transactional history.

Compared to other coins, you will most likely find this token involved in the digital security industry in some capacity. That’s because digital securities are considered one of the means of participating within the blockchain technology and still obeying regulations.

As an investor looking for a coin to invest in, you’ll be able to make better predictions through this coin, as it’s always backed against actual assets in the real world. This means you can look at real-life examples and know which way the market is going.

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Finance

Beware of These Factors That Increase Your Car Insurance Premiums

Car insurance is a regulator norm for all car owners. While some may choose to go with the most basic third-party coverage, it isn’t always the best option to keep your premium in check. At times, a comprehensive policy can benefit you more than a third-party cover. Now that you can buy car insurance online, it has become even more convenient to get an affordable yet adequate car insurance cover.

If you do not pay attention at the right things, your car insurance policy can start to bleed. To avoid bleeding of your car insurance plan, here are some pointer that need to be attended. Let’s have a look –

Buying a plan without comparison

The most rookie mistake to avoid is buying a policy without comparing it. Comparison is necessary to evaluate a competitor’s offerings. The coverage, exclusions of those policies and lastly, its price must be a determining factor when shortlisting a car insurance plan. While conventionally you can visit multiple websites of insurance companies to compare, nifty tools like a car insurance calculator make the job easy by readily computing premiums. Investing your time at the beginning before purchase can help you enjoy the benefits of your car insurance when needed the most.

Loading up unnecessary add-ons

Comprehensive car insurance plans have the option to be loaded with add-on covers. While these add-ons are not a part of the standard compressive coverage, they are available as extras. It is critical to determine whether you need the additional coverage offered by your insurer. Most buyers often purchase quite a few add-ons that have no real advantage for them but only end-up increasing the premium costs. Avoiding such unnecessary add-ons can help you keep your premiums in check.

Selecting a policy that’s not fit for you

Car insurance in India is often purchased on recommendation of either car dealer or peers. While at times it may be right, not always it can give you the best coverage. Little thought is given to the idea of actually evaluating your requirements based on the driving conditions and habits. When you buy a car insurance plan, you have two options – a comprehensive cover or a liability only plan. The selection of the type of policy should be based only after you compare car insurance benefits offered under each type.

Opting for higher IDV

IDV or Insured Declared Value is the maximum amount that the insurance company pays in case of total loss or complete damage to your car. A comprehensive policy allows you to increase or decrease the IDV within a specified range. But a direct impact of these changes are noticed on your premium. When making modification to the IDV, remember this point to have an affordable insurance premium.

The above-mentioned elements can help you have a policy premium within your budget. Beware of these factors as they often lead into a higher priced policy with no real benefits to them.  Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.

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Finance

Why are Term Insurance Premiums High for Smokers?

It is hard for many to get rid of an addiction like smoking. It can cause a whole range of respiratory illnesses and completely change the quality of life you have. In fact, in many cases, it can lead to cancer and in extreme cases, death. As per WHO data, more than a million deaths happen each year in the country due to consumption of tobacco. However, what you may not know is that smoking can also be injurious to your finances.

The perfect example of this is life insurance policy. The premium for life insurance is often calculated based on your surroundings and your lifestyle. For example, your job profile is a huge factor in deciding the life insurance premium you would have to pay. While, the premium for jobs with a higher risk quotient will be high, people with low-risk jobs will likely get a lower premium. A similar logic is applied to smokers and non-smokers.

Categorization of Smokers Categorized by Insurers

Life insurance providers often categorize smokers into three categories. These three categories include a typical smoker, preferred smoker, and table-rated smoker. A typical smoker is someone who smokes and has a minor health issue. A preferred smoker is someone who smokes but does not have any major health issue. The third and final category includes smokers who suffer from a major health issue. Based on these categories, insurance providers decides the premium that will be charged for the term insurance plan.

This data is collected at the time you approach the insurance provider to buy a term plan. The insurance provider will ask you questions about your smoking habits. This can include information of how long you have been smoking, how often you smoke, and if you have had any changes in your health due to smoking. Anyone who consumes tobacco or nicotine in any capacity, is immediately included in the category of smokers. Based on your usage, you will be added to one of the three categories. Hence, as soon as you tell your insurance provider you consume cigars, cigarettes, beedis, etc., you can consider that your insurance will cost you more. At this point, the only question that matters is how much and how often you consume tobacco.

Secondly, it doesn’t matter if you develop the habit of smoking after buying the plan. If you start smoking after you buy the plan, you have to inform your insurance provider. It is extremely important to do so at the earliest. If you fail to update your insurance provider, you can get into legal trouble for withholding vital information. This can lead to your policy being terminated or even prosecution for swindling.

A smoker has a higher chance of developing respiratory and other types of illnesses. This means there is a higher death risk with smokers. It is evident by the high mortality rate of smokers. This puts the insurance provider in a position where it is almost a guarantee that the policyholder will end up dying and they will have to disburse the sum assured. Hence, smokers are usually required to pay a higher premium for even the basic amount of term life insurance cover.

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Finance

Hidden divergences lend a hand by giving trend continuation signals

Divergences are best when picking tops and bottoms and areas where the price can stop and reverse. There are two types of divergences, namely: regular and hidden. We are going to talk about the latter one.

Hidden divergences 

As we have mentioned, divergences help traders know where the price can stop and reverse — this is what a regular divergence does. On the other hand, hidden divergences can give signals for trend continuation where the price continues to move in the same direction it is in right now. This provides the trader with an opportunity to ride the trend as long as it is possible. Hidden divergences may be bearish and bullish.

Hidden bullish divergence

Hidden and bullish divergence is composed of a price that makes a higher low and an oscillator that creates a lower low. This occasion is always prevalent on uptrends. If you want to find out whether there is a hidden divergence, look at the oscillator if it also makes a higher low like what the price is doing. If it does not, it means that there is a hidden divergence.

Hidden bearish divergence

Hidden and bearish divergence is made up of a price that makes a lower high and an oscillator that produces a higher high. As its name suggests, these occurrences usually happen when there is a downtrend. Hidden bearish divergences tell us that the pair will most likely continue to decline, and the downtrend will have a continuation.

Now, let us cite some examples when trading regular divergences.

For instance, we have a EUR/ SUD daily chart, and it has been on a downtrend. Some indicators are giving us signals that it is most likely that the downtrend will end soon. The price creates a lower low, but the indicator is saying higher low. We can say that this might be a good time to buy because of the divergence between the indicator and the price. There was a breakthrough in the falling trend line resulting in a new uptrend.

Moral of the example: stay alert for reversal clues to know that the trend should end soon.

An example when trading with hidden divergences

Let us say that we have a EUR/ SUD daily chart, and it has been on a downtrend. The price produced a lower high, but the oscillator made a higher high. If we review what we talked about earlier, we can say that this is a hidden bearish divergence. It is your discretion whether you will go to the trend or wait for a while. Later on, the trend continued. Assuming that you spotted the divergence and knew that the trend would continue to decline, you surely are going home with that hefty profit.

Are hidden divergences relevant?

Of course, they are relevant, especially if you are a trader who loves to ride trends. Sure, they can give you a hard time spotting them, but when you do, it can help you ride the trend as early as possible so you can go home with profits and gains.

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Finance

Different types of payments you can make on Airtel Payments Bank Website

Airtel Payments Bank is a subsidiary bank of Bharti Airtel. It is a public limited company. This bank also received the first license as a payment bank from RBI and became a live payment bank. So, this is one of the most trusted and secured bank for making any online transaction. First, the customer has to make an account with Airtel bank. Airtel Payments Bank offers its customers great deals, discounts, and cashback offers. But, always keep in mind that, you must use their bank account for any type of transactions.

Airtel Payments Bank can be used to make different types of payments. All your payments will be fast and successful. Here is a list of different types of payments that you can make using this bank;

Mobile recharge

Recharging our mobiles is one of our basic expenses. To enjoy all the facilities of our service provider, we have to recharge our mobiles will suitable plans time to time. Different plans come with different validity period. For Jio recharge, you can select the best plan for you, and get it done using this bank. For Jio online recharge, visit the official website of Airtel Payments bank and go to their mobile prepaid recharging page. Here, you need to put your number and select the service provider. Different Jio recharge plans will be recommended to you. You can select one from the list and move forward. On the payment page, select your Airtel bank account and make the payment. You will get an e-receipt after a successful payment. Thus, your Jio recharge online is done. By following the same process you can recharge your mobile with Airtel, VI, BSNL, and other plans.

Electricity bill

Earlier, we used to visit the electric office to pay our monthly electricity bills. This used to take a lot of time and energy. But now, we can do it online. Using this bank, paying electricity bills is very easy. You just need to put your consumer ID and select your location and electricity provider. Your bill will be visible and you can make a secure payment.

Gas bill

Gas is used in every household for cooking. You can also pay your monthly gas bills using Airtel Payments bank. So, at the beginning of every month, you do not need to run here and there to pay your bills. You can do it, sitting at your home.

DTH bill

Who does not want a smooth TV viewing? With excellent DTH service providers, now we can enjoy numerous channels with great picture quality. Paying DTH bill is also possible with Airtel Payments bank. Just visit their website and go to their DTH page. Here, you can make the payment and enjoy great discounts.

Water bill

Water is one of our necessities of life. You can pay water bill online using this bank very easily.

So, use Airtel Payments Bank and pay different bills safely. You can also enjoy great discounts on each payment.

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