Things to Consider While Buying Insurance

Uncertainty can take place in a person's life any moment, as no one in this world can depict the future. Next moment what can happen no one knows so to protect himself and his loved ones for future and present many people decide on buying an insurance policy?

Not only individuals but also corporations depend on insurance policies, as this is the place where the loss is transferred to a third party who bears the burden. There are two parties concerned in this agreement, the insurer and the insurance company where the policy has been taken. 

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VAT Changes from 1st April 2010

1. Any VAT-registered contractors with turnovers of £100,000 or more (excl. VAT) will need to submit their VAT returns online, and also pay their VAT liabilities electronically.
2. Any new businesses registering for VAT from 1st April will automatically need to deal with VAT electronically from the start, regardless of turnover.
3. All VAT cheque payments sent via post are only deemed to be 'received' by HMRC once cleared funds reach HMRC's bank account, rather than the date with the cheque was actually received. Businesses are therefore urged to allow enough time for cheque payments to reach HMRC, or late payment surcharges may be applied.
4. Any business or person issuing a VAT-inclusive invoice, when they are not entitled to charge VAT, will be subject to a new VAT 'wrongdoing penalty', which will be a percentage of the unlawfully charged amount of VAT on the invoice.
5. The VAT registration threshold rises from £68,000 to £70,000 from 1st April 2010. The de-registration limit rises to £68,000.
You can register to file your VAT returns online here, or your accountant may do this on your behalf, so check fir

Ref: contracteye.com
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Financial planning tips for IT

Given the obvious strain on the public finances we already know that company and personal tax is set to rise next year.
2009/10 could be the year to bring forward plans to draw out retained profit, pay yourself a bonus or engineer a better trading year than you will experience in 2010/11.
Pensions provision is always an efficient way to get money from company into personal hands.
In most cases contractors can transfer virtually all of their income, tax free, into a pension although the budget has clipped the wings of the highest earners and they can now only invest £20k and be certain of higher rate tax relief.
Starting to drip feed higher amounts into a scheme now could help you to exploit depressed valuations on the equity and bond markets In particular US, emerging markets and smaller companies in general look set to prosper as the worse of the bad recessionary news is now out in the public domain.
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IRDA to make ULIPs investor-friendly

Insurance regulator IRDA, which has won its turf war with market watchdog SEBI over regulation of ULIPs, is expected to tighten norms for these schemes, including commission charges, to make them attractive for investors.

There would be stricter and stringent distribution norms, leading to lowering of commissions on the sale of such products, sources said.

Currently, commission charges are as high as 50 per cent of the first-year premium.

According to IRDA Chairman J Hari Narayan, it will frame new guidelines for these products to make them more attractive for policy holders.

At the same time, the regulator plans to come out with directives to improve the transparency element of such hybrid products, which involve both investment and insurance.

The regulator will also try and address the issue of increasing the lock-in-period and raising life cover.


More Details :- IRDA to make ULIPs investor-friendly

Insurers may unveil new unit-linked offerings

With the regulatory dispute over unit-linked insurance plans (ULIPs) behind them, insurance companies are gearing up to launch new ULIPs.

Most insurers had put on hold new launches after the Securities and Exchange Board of India, asked them to take its permission before launching such products.

“Many investors will now go ahead and invest in ULIPs. Insurance companies that had put on hold new products will now bring them out,” said Mr Nageswara Rao, Managing Director and Chief Executive Officer, IDBI Fortis Life Insurance. “We are also working on some new products”.

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Lakshmi Vilas signs MoU with LIC

To achieve its ambitious growth plan, Lakshmi Vilas Bank (LVB) plans to take both the organic and inorganic route to grow, its Managing Director and CEO, Mr K.S.R Anjaneyulu, said. Speaking to the media after signing a Memorandum of Understanding (MoU) with the Life Insurance Corporation of India for marketing the latter's product offerings through LVB's branch network, Mr Anjaneyulu said: “we will require capital to keep pace with our growth plans. We plan to enhance equity for the bank and its subsidiary.” He said he would be unable to divulge more details at this point as such issues would have to be cleared by the Board
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LIC NEWS

1	No ULIP product approval is pending: IRDA
2	Will IRDA continue to regulate ULIPs?
3	LIC to invest Rs 2 lakh cr across various asset classes
4	How much term cover do you need?
5	LIC Housing eyes banking licence
6	LIC misses REC bus
7	LIC south zone eyes Rs 6,500-cr premiums for 2009-10
8	LIC buys aggressively in frontline companies
9	Life insurers want tax relief for maturity proceeds to continue

Life insurers want tax relief for maturity proceeds to continue

Life insurers want tax relief for maturity proceeds to continue

Life insurance companies want the current system of tax exemption for insurance maturity proceeds to be continued. The proposed Direct Taxes Code has suggested deduction of tax on the final payout, while exempting the policy premium at the time of contribution and the interest on it.


The insurers have made a representation to the Government that the Exempt Exempt Exempt (EEE) method of computation should continue as against the Exempt Exempt tax (EET) method proposed in the Direct Taxes Code.
Insurance products are driven by tax benefits. The January-March quarter, which is the tax planning season, contributed 45-50 per cent of the total sales of the industry, said Mr Nageswara Rao, Chief Executive Officer, IDBI Fortis Life Insurance.
The domestic insurance industry is at a nascent stage and taxing the maturity proceeds as proposed by the Direct Taxes Code will adversely impact the life insurance business and the industry. It will discourage investors to invest in long-term savings as it may result in unjustified tax burden especially on those customers who do not avail themselves of the benefit under Section 80C, said Mr T.R. Ramachandran, Chief Executive Officer and Managing Director, Aviva Life Insurance.
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Life insurers want tax relief for maturity proceeds to continue

How to Become a Federal Agent

How to Become a Federal Agent

LIC agent Become a Federal Agent


If you have specialized knowledge, let the authorities know about it. You can even travel to different places as an agentBeing a Special Agent

Special agents are often associated with the Federal Bureau of Investigation. Well, this may be partly true since the said agency employs a great number of agents. However, you can also find federal agents in the Judicial, Legislative, and Executive branch. You can become a federal agent in the many independent agencies of the federal government. As a federal agent, it is your duty to investigate different crimes like robbery, murder, internal fraud, postal fraud, terrorism, and many others.
Everyday, a lot of people violate the law and it is your duty to investigate on these potential crimes. To become a federal agent, you can exhibit specialized knowledge. If you love traveling, you can use this passion by working with the Secret Service, State Department, Peace Corps, FBI, and other related agencies. Oftentimes, this will involve long working hours and you will be dealing with serious crimes. Are you willing to work for more or less fifty hours in a week? As you can see, the working hours are no joke but you can take advantage of the LEAP or Law Enforcement Availability Pay and 25% premium based on your salary. You can get around $50,000 annually aside from your basic pay. You also have a chance to travel to different countries especially when the job calls for it.
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Winning With Mutual Funds

Winning With Mutual Funds

A mutual fund (called 'unit trust' in Asia) is an investment vehicle that pools money from many individual investors. A professional fund manager invests and manages these funds into stocks, bonds and other securities.

People usually invest in mutual funds because it is offers the advantage of broad diversification (it spreads your money over tens or hundreds of stocks to reduce risk) and professional management. However, do remember that as broad diversification reduces risks, it also reduces return.

First, here is the bad news. If you speak to most people who have invested in unit trusts in Asia (especially Singapore) or in mutual funds, most would report losing money or just earning measly returns of 2%-4%. In fact, in the year 2004, it was reported in the Straits Times that 559,000 Singaporeans lost $680 million by investing their CPF in these funds. By going to the largest unit trust distributor Asia, you can easily calculate that only 6% of unit trusts beat the S&P 500 over a ten-year period. What are the chances of you placing your bet on this 6%? Chances are you would have had lower returns that the index, while still having to pay those hefty sales charges and annual management fees.

How about the US mutual fund market? On average, less than 10% of mutual funds beat the S&P 500 index each year! What's worse is that it is a different 10% each year. Less than 3% of mutual funds are able to beat the S&P 500 Index over a five to ten year period. So again, what are the chances of you beating the market through betting on the right fund? Only 3%! You have better odds at the Black Jack table. The worse thing is that the fund manager gets paid an annual management fee whether or not the fund makes money.

Why is it so difficult for most people to make money in mutual funds? There are four main reasons.

1) High Sales Charges & Management Fees

Most people buy mutual funds through banks and financial institutions at retail prices where there is a sales charge (front load) and high annual management fees (expense ratios).

In Asia, most banks & financial institutions sell unit trusts with a sales charge of 5%-6% and with annual fees of 1.5%-2%. It means that before you even begin, you are down 6.5%-8% on your investment and will be down another 1.5% every year. Your fund must outperform the S&P 500 by 6.5%-8% just to make it worth your while! Again, less than 10% of funds worldwide can achieve this every year and less than 3% can achieve this over five years.

2) Buying the Hottest Performing Funds
Most people choose funds based on high short-term returns. These are the funds that are normally pushed and advertised by financial retailers. They feature impressive and enticing returns like 'This fund was up +65% in the last six months'.

The fact is that the best short-term performing funds tend to also be big losers in the subsequent years and long term. Why? Because these funds tend to be invested in hot stocks or hot sectors where the stocks have been rising rapidly and fund managers buy, riding on the momentum. That is why they post very spectacular returns. However, strong buying activity tend to push these stocks to be overvalued and sure enough, the stocks will come crashing down in the next few years. Mutual funds that consistently beat the S&P 500 tend to be invested in non-hot sectors and do not post spectacular short-term returns.

3) Limited Selection of Unit Trusts Locally

If you are in Asia, then you are normally exposed to only a limited number of unit trusts. A check with fundsupermart.com (the largest Asian unit trust distributor) shows that there are just about 300 funds available here compared to over 8,000 funds in the US market.

When I made a search on the Top Performing Fund sold locally (year 2005), I was presented with 'Fidelity America USD' with a 10-year annualized return of 11.27%. (Recall that the S&P 500 returned 12.08% a year). So, even the top-performing fund couldn't beat the S&P 500 after deducting expenses & fees!!

4) Lack of Research Knowledge, Data & Tools

The single most important reason why investors lose money in mutual funds
is because they don't have the knowledge or necessary information to search for the top 3% of consistent performing funds at the lowest costs. Investors tend to buy on the advice of their bank managers, facts from the fund fact sheet or prospectus which does not provide enough information to select the right fund.

How to Become an Insurance Agent

A successful insurance agent must be an excellent salesperson with an outgoing personality. The agent must also possess superior mathematical skills and constantly keep up-to-date on any changes within the Insurance Industry.

Instructions

Step 1

Familiarize yourself with the insurance field. Life, health, property and liability insurance are the areas in which most agents currently work.

Step 2

Receive a bachelor's degree in business or economics. Insurance companies prefer to hire individuals whose academic background includes courses in finance, math, accounting, economics, business and public speaking.

Step 3

Become proficient with the computer software used by the insurance industry.

Step 4

Work part time for an insurance agency while you're in college. Ask your guidance counselor if there are any agencies in your area that have training programs for college students.

Step 5

Expect to take your state's exam for the mandatory insurance license after an agency hires you. Classes for the exam are offered in pre-licensing schools of insurance agents associations and in offices of some insurance companies. Make sure you will meet all the licensing requirements of your state.

Step 6

Be prepared to take continuing education classes for years to come. Many states require these on a regular basis.

Step 7

Obtain certification to further your advancement within the industry. By taking intensive courses and examinations after you have had considerable experience as an agent, you can obtain the highly respected designation of Chartered Property and Casualty Underwriter.

Insurance Agent: Career Information

Job Description of Insurance Agents:
Insurance agents, who may be referred to as insurance sales agents, help clients choose insurance policies that suit their needs. Clients include individuals and families as well as businesses. Captive agents work for an insurance company, and only sell that company's products. Independent insurance agents, or brokers, represent several companies. Types of insurance include property and casualty, life, health, disability, and long-term care insurance. Many insurance agents also sell mutual funds, variable annuities and other securities.
Employment Facts for Insurance Agents:
Insurance agents held about 436,000 jobs in 2006. About half of them worked for insurance agencies and brokerages and about 23 percent worked for insurance carriers. More than a quarter of all insurance agents were self-employed.
Educational Requirements for Insurance Agents:
Employers prefer to hire insurance agents who have college degrees, particularly in business or economics. They might consider hiring a high school graduate who has proven sales ability.

Life Insurance - Plan for Life

The very best time to arrange life insurance

is when it's furthest from your thoughts. Take a typical young man. He's at the start of his career, possibly still living at home, but thinking of looking around for a flat. He has a car and the insurance that he arranged for it was probably his first step in the insurance ladder.

If he decided to take out some life insurance, whilst he's still young, fit and healthy he'd get the best possible rates. Probably the most valuable insurance at this stage is Critical Illness (CI) cover.

Whilst life insurance is designed to pay out to your beneficiaries if you die, CI cover will give you valuable support if you become critically ill. For our young man, starting on his career, an illness of this type could be a financial disaster. It is a fact that one in three people will develop cancer at some time in their lives, but the good news is that treatment and cure rates are improving all the time.

Advances in medical science thankfully mean that more and more people will survive many of the major serious illnesses. Unfortunately this recovery can take many months, or even years and necessitate long period of time off work. It may not be possible to carry on with the same work, meaning a change of career. In some cases it may be necessary to change your home and car.

Are life insurance quotes useful?

The life insurance quotes refer to the rates of life insurance policies. However these rates vary from company to company and from policy to policy. Though there many sources for information about the quotes it is better to collect from the company itself. If you can collect from more companies, well and good as it gives competitive edge. Read more from the article on insurance quotes.The article covers

* What are life insurance quotes?
* Where to get them?
* Factors affecting insurance quotes
* Best life insurance quotes

Life Insurance quotes are the prices at which life insurance policies are proposed to be sold. In that context a life insurance quote does not necessarily become the selling price of all life insurance policies as some are given at concessions in case if the individuals chooses to take other types of insurance policies from the same company. In case of group life insurance scheme special discounts are also offered. Life insurance quotes vary from company to company and from individual to individual.

There are several methods for obtaining the life insurance quotes. The insured can contact the company directly to collect the information. He may also visit the official website of the company and enter the required details. He will thus be able to obtain online life insurance quotes. Similarly the insured can collect the information from insurance agents. An insurance agent will not only offer you the quotes but also help you in deciding the one that is best for you.

It is recommended to get quotes from as many companies as possible. This will give you the details of many companies and also help in deciding the best options. You may also find the competitive edge by comparing one with the other. These insurance quotes are extremely useful to you. They help you to know how much you should invest exactly in an insurance policy.

The Role of Insurance in Your Financial Plan

1.The Role of Insurance in Your Financial Plan

Insurance is an important element of any sound financial plan.Different types of insurance protect you and your loved ones in different ways against

the cost of accidents, illness, disability, and death.


2.What Are Your Insurance Needs?

The insurance decisions you make should be based on your family, age, and economic situation. There are many forms of insurance and, unfortunately, no one-size-fits-all policy. Life insurance, for example, is a virtual necessity if you have a spouse and children, but perhaps is less important for a single person. Disability insurance, which provides an income stream if you are unable to work, is important for everyone.

3.Auto Insurance

Auto insurance protects you from damage to the often considerable investment in a car and/or from liability for damage or injury caused by you or someone driving your vehicle. It can also help cover expenses you or anyone in your car may incur as a result of an accident with an uninsured motorist.

Auto liability coverage is necessary for anyone who owns a car. Many states require you to have liability insurance before a vehicle can be registered. However, state-required minimum coverage often does not provide adequate protection. Suggested minimums are $100,000 for medical expenses per injured person, $300,000 for the total per accident, and $50,000 for property damage. Collision, fire, and theft coverage is also advisable for a vehicle having more than minimal value. You can cut costs, however, by choosing a higher deductible -- the amount of loss that must be exceeded before you are compensated.

The cost of auto insurance varies greatly, depending on the company and agent offering it, your choice of coverage and deductible, where you live, the kind of vehicle, and the ages of drivers in the family. Substantial discounts are often available for safe drivers, nonsmokers, and those who commute to work via public transportation.