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February 2022

Insurance

What Are the Different Types of Term Insurance Claims?

A term insurance plan is a vital purchase for individuals who are the primary earning member of their families. The financial costs of running a family and taking care of each family member’s needs are very high. In case of an unfortunate event, your family should be able to fulfil their financial obligations and needs even in your absence. A term insurance plan can help immensely with that. The nominee/s or the beneficiary can receive the benefit amount only after making a claim. There are various term insurance claim types and it is important to know what distinguishes one from the other. Let’s take a look at them below.

What is term insurance? 

First, let’s get a clear understanding of what term insurance means. Term insurance is one of the most popular life insurance plans. As the name suggests, a term plan is only valid for a particular number of years or a term period. This contrasts with whole life insurance, where the policy is valid as long as the insured is alive. The duration of a term insurance plan can be anywhere from 5 years to 40 years. Usually, most individuals opt for a term insurance plan that is valid until their retirement age. It is bought primarily to safeguard funds for major life events, such as children’s higher education, their marriage, and to financially protect against life’s uncertainties.

Now that you have got the question ‘What is term insurance?’ answered, let’s move on to the claims category.

What are the types of term insurance claims, and what are their features? 

There are mainly three types of term insurance claims:

  1. Death benefit claim 

The nominees are eligible to make this type of term insurance claim once the life assured has passed away. Though there are multiple conditions that decide whether the claim will be rejected or approved, the two major ones are:

– The policy should be active when the unfortunate event happens.

– The life assured should have passed away under the conditions prescribed in the policy.

For instance, the claim may be rejected if the policyholder passes away due to an accident caused as a result of alcohol abuse on their part. The amount that the nominees receive on approval of the claim is referred to as the sum assured. This amount may be provided to the nominees in the form of a lump sum payment at once, or it may be granted to them in smaller amounts over a period.

  1. Maturity benefit claim 

While the previous type of term insurance claim was to be made by the nominees, the maturity benefit claim has to be made by the policyholder themselves. The maturity benefit claim essentially refers to the amount that the policyholder is eligible to receive if they have survived the completion of their policy term.

The maturity benefit claim feature is only applicable for those policyholders who have opted for the ‘return of premium’ type of plan.

So, let’s assume that Mr. Ramesh has bought an online term insurance plan with a duration of 35 years when he was 30 years old. Now, Mr. Ramesh is 65 years old and quite healthy. Since he has diligently paid premiums towards his term plan for the last 30 years, he will now make a maturity benefit claim as his plan has matured by now. Thus, he will now receive the premiums returned to him after the subtraction of the due charges.

  1. Rider benefit claim 

Riders are additional coverage options that one can choose from at an extra cost to the premium to obtain maximum financial protection from the uncertainties of life. Riders are available with online term insurance plans as well as offline ones. Popular riders include accidental death benefit rider, critical illness benefit rider, accidental permanent total/partial disability rider, and so on.

One can make a claim on a rider only if a particular situation has arisen. If the policyholder has been diagnosed with a critical illness covered under the policy, they or their loved ones can raise a term insurance claim and receive the due compensation. If an accident has led to the permanent partial disablement of the policyholder, the claim under the same rider can be made to obtain financial compensation. One cannot make a claim for an accidental death under an accidental disability rider.

Thus, one should purchase riders depending on the risks they are under. If you feel that you have a genetic risk of a critical illness such as cancer, then you should opt for a critical illness benefit rider.

Now that you are aware of the different term insurance claim types, we hope you are more empowered to buy the right term insurance plan for yourself.

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Finance

Doing Your Own Tax vs. Using a Tax Accountant – Which is Best?

Taxation and financial best practices in general can be a difficult topic for most people to grasp, let alone master, in their lifetime. What can often compound this confusion is the fact that your financial situation is fluid, and as such, your expenses, income and taxes can fluctuate year on year.

Hiring a tax accountant in Melbourne is one way you can gain some clarity on your current financial health, but is outsourcing your taxes really better than doing it yourself? This article will take a look at some benefits of hiring a tax accountant, the benefits of doing your own taxes, and which option may be best for you.

The Benefits of Hiring a Tax Accountant

Depending on the complexity of your financial situation, it’s easy to become confused about what you should be declaring when you file your taxes as well as ways in which you can maximise your tax return. Some benefits of hiring a tax accountant in Melbourne include:

Saves Time on a Tedious Task

When you earn money, you need to put in the time and work necessary to track your finances accurately. However, not everybody has the time, patience or even the desire to crunch the numbers themselves. One of the biggest benefits of outsourcing your tax needs to an appropriate accountant is the fact that it can save you tedious data-entry time, plus you’ll arguably gain a much more accurate picture of your finances.

Easily Organise Complex Finances

As your net worth and assets grow, so does the overall complexity and number of things you’ll need to take into consideration when filing your taxes. A tax accountant in Melbourne will be able to help you iron out even the most complex tax situation, advise on deductions for home offices, business expenses and business vehicles, and catch any auditing red flags that could land you in trouble with the tax office.

The Benefits of Doing Your Own Taxes

If you have the time and patience to do your own taxes, finding a tax accountant in the Melbourne CBD may not be necessary. Some benefits of doing your own taxes include:

Save Money & Time on Finding a Tax Professional

If you have a relatively straightforward financial and tax situation, outsourcing to a tax accountant in Melbourne may not be the best option for you. The obvious benefit of course is the fact that you’ll be able to save money on hiring a tax professional, plus you won’t have to spend any time researching and finding the right one for you.

So Which Option is Best?

While both methods of dealing with your taxes can be appropriate depending on your circumstances, the advantages of hiring a tax accountant in Melbourne to take care of your tax needs simply cannot be denied. Even if you feel comfortable negotiating your own financial and tax situation, enlisting the services of a professional to give your records a second look over or advise you on any tax breaks you may not be privy to can be very valuable.

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News

Refinancing Is A Major Issue For The Hotel Management Industry

Hotels and restaurants are one of the booming industries nowadays. However, to open such a business or expand the same requires enough funds. hotel refinance is the best way to avoid issues while growing the business. Many sources are now available to ensure profitable opportunities. Connecting with different financial organizations will curb the problem significantly.

Most hotel owners think that hotel refinancing is a complicated affair. However, in reality, the process is not so arduous either. People must keep patience while communicating with the organizations providing funds. A seamless approach to such matters will make it more convenient and effortless.

Possibility of Refinancing Hotels

The concept of hotel financing will come before the theory of hotel refinance. One requires such finances for various purposes. It can be for remodeling, renovation, or even purchase another hotel. Refinancing refers to a concept providing support to different hotel owners.

It is a challenge for any entrepreneur to run the business profitably for a considerable period. Sometimes, some wrong decisions can lead to forceful shutdown of the entire hotel business. However, this can never be a solution. The business person must look for suitable options to get rid of such a condition. Refinancing is that solution.

In the case of everyday finance, the owner has to take several risks. Often, the rates of such borrowings are very high. Hence, paying the debts can be a time-consuming affair. If the hotel fails to run as expected, it becomes impossible to pay off the rates. The option of refinancing acts like a blessing in such circumstances. Today, a person running a hotel, motel, or similar arrangements, can have several refinancing sources. As a result, it is a trendy concept these days.

Benefits For Hotel Refinancing

The alternative of hotel refinancing is highly beneficial for any hotel owner. It is a fantastic chance to consolidate all the debts and relieve the person. Thus, the refinancer can pay off all the obligations at one go and reduce the burden of debt from the entrepreneur.

Unlike the high-interest rates for the original loans, refinancing will be cheaper. Joining the particular program of getting hotel refinances is an advantage for the owners. Moreover, it will be a one-time payment for a month only.

For construction or reconstruction of the hotels, the options are;-

  • Hard money loans
  • Commercial loans for real estate
  • Crowdfunding for commercial real estate

Another name for this type of loan is capital expenditure loans or CapEx, in short. It is an excellent help to avail such funding to continue operating the hotel business with ease.

Conclusion

Things will become simplified with the availing of hotel refinance opportunities. Therefore, every person running a hotel or motel must analyze the factors responsible for profitable operations. With so many lenders available in the market, a hotel owner will have no issues getting the funds. A traditional cash-out alternative is also present if someone is not ready for other options. Before taking the loans, it is also essential to know about the respective financial organization in advance.

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