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Finance

5 Things You Should Know Before You Send Money to Bank Account Same Day to India

If you’re currently living and working in Europe, then the same-day remittance service will enable you to quickly and easily transfer funds to your family and friends in India. But there are a few things that you should know before using such services. Check out this post to learn more.

Thanks to digital technologies, the world has now turned into a global village. From remotely working for employer hundreds and thousands of miles away to video calling anyone across the world, technology has significantly impacted almost all walks of our lives. The same is true for the remittance industry as well.

Not too long ago, fund transfers from Europe to India took anywhere between 3-5 working days. But there are now Indian banks in Europe that offer same-day remittance services. While such services make the whole remittance process quick and convenient, there are a few things you should know about before using them. Take a look-

  1. Exchange Rate

If you’ve used remittance services in the past, then you might know that the exchange rates fluctuate 24×7. It is also possible for the exchange rate to change after you’ve initiated a transfer to India and before the service provider or bank processes the transaction. In some cases, this could impact the total amount your beneficiary receives in India.

But this issue can be effectively eliminated by using the same-day remittance services of a bank in Europe that offers guaranteed exchange rates. With this feature, the exchange rate would remain the same from the time you initiate the transfer to when the bank processes the transaction.

  1. Ease of Transfer

You should be able to initiate the transfer online without visiting the bank. Some of the Indian banks in Europe also allow non-customers to use their remittance services. For this, you are generally required to initiate a transfer from their online portal and then transfer funds to a local account of the bank.

Also, the bank should allow you to send money to any bank account in India. In most cases, you can use IMPS-enabled banks and branches in India for same-day transfers. You can confirm the same with your beneficiary in India before making a transfer.

  1. Transfer Speed

While same-day remittance services ensure that funds get deposited into the Indian bank account of your beneficiary on the same working day, there is generally a cut-off time limit. Only transfers processed before this time limit are processed on the same day.

Thus, before using such services, ensure that you check the cut-off limit of the bank. If you are using the services of a bank in which you do not hold an account, then your funds should reach the remitting bank before this time limit.

  1. Transfer Security

One of the most significant reasons to trust a bank for your transfers to India is the level of security they offer. While there is no lack of remittance service providers in Europe, banks are generally safer and more secure. With the rising number of remittance scams, it is wise to trust a reputable Indian bank in Europe for remittance.

You can check out the remittance platform of the bank online to know more about the measures they have taken to keep the accounts, funds, and transfers protected at all times.

  1. Tracking Transfer Status

Even though these services allow you to send money to bank account same day to India, you should still be able to track the status of your transfer. Banks generally provide a transfer tracking number that you can use for monitoring the status of your transfer online.

Prefer a service that offers this transfer tracking facility for complete peace of mind. You can also share the tracking number with your beneficiary so that they, too, are fully aware of when to expect the deposit into their bank account.

Using Same Day Remittance for Europe to India Transfers

Same-day remittance services have revolutionized the international remittance industry. If you are currently in Europe and want to transfer funds to India instantly, then look for a trusted Indian bank that offers this facility.

Keep the points mentioned above in mind when choosing a bank and using their remittance services to avoid discrepancies and ensure that the funds reach your beneficiary in the safest possible manner.

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Finance

How to Save Premium Cost on Your Life Insurance Plan?

Numerous factors play a role in deciding the premium quote of your life insurance policy. Some of these aspects are in your control and some aren’t. By selecting the right type of policy and understanding your insurance requirements, you can easily get an affordable policy. But today, we’ll share some insider tips on how to save up on the premium cost of your life insurance plan without any hassle.

  • Opt for insurance at a young age

When you are younger, you can avail life insurance plans with a lower premium. This is because with age, the chances of getting ill become higher, increasing the risk for an insurance provider. Many elderly people get diagnosed with diseases such as diabetes, blood pressure, cancer, etc. which can lead to an expensive insurance premium. But as a young individual, you shall be healthy without any medical issues. So, you can get a more affordable premium rate even if you select a high sum assured amount.

  • Compare life insurance plans

To avoid the trouble of going through numerous insurance policies, you may select a suitable one after comparing a couple of plans. However, it might not be the best one! This is why comparing life insurance plans is crucial. With so many insurance companies present in the market, you shall find various policies that offer unique features. With the help of life insurance calculators, it is easier to get all these plans in one place and select a suitable policy. So, make sure to compare insurers and the plans they offer before finalising the one.

  • Avoid adding too many riders

Every rider may seem lucrative as they increase your insurance coverage. However, you need to purchase these riders over and above your insurance premium. Thus, adding too many add-on covers to your plan can easily lead to a hefty premium rate. To make this process easier, it is recommended to understand your insurance requirements and choose the riders accordingly. Therefore, you won’t buy unnecessary riders with your insurance policy and get the most of your purchase.

  • Choose the right policy tenure

The policy tenure of your plan decides the amount of premium you shall pay to the insurer. But the tenure varies from one person to another depending on their lifestyle and needs. Instead of opting for a short or a long tenure, it is advised to understand the purpose of buying the insurance plan. Do you want to secure your family from any debts? Are you creating a financial backup, as your children are still young? Doing this shall help you estimate the right policy term without it being too short or long.

  • Follow a healthy lifestyle

Your lifestyle defines your health, and it plays a crucial role in your life insurance premium. The insurance provider considers your current health conditions and your family medical history before giving you the premium quote. If you smoke or drink alcohol, these lifestyle habits shall also impact the price of purchasing a policy. Therefore, follow a healthier lifestyle and keep away from the habit of smoking or drinking to avoid an expensive premium quote.

Now that you know how you can easily save up on your insurance premium, buy one today! You can purchase all types of life insurance policies from the comforts of your home and get an affordable premium by shopping online. The endless number of benefits of life insurance enable you to make the most of your investment. Lastly, ensure to go through the terms and conditions of the policy beforehand!

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Finance

Shay Benhamou Considers Ethereum As Bitcoin’s Eternal Rival

The Ethereum vs. Bitcoin debate has always been an interesting one as both cryptocurrencies are at the top of the ladder. The two cryptocurrencies have many similarities between them but they also have many differences which make them unique. The story of Bitcoin versus Ethereum starts in 2009 when Bitcoin was introduced as the first-ever cryptocurrency. Bitcoin was the face of cryptocurrency was many years till a blockchain platform was launched. That platform for blockchains is now known as Ethereum. The new cryptocurrency became a fast competitor of Bitcoin only five months after its launch.

Shay Benhamou says that this competition between Ethereum and Bitcoin is an eternal battle. Shay Benhamou is an expert in cryptocurrency investments and often shares his thoughts, views, and lessons for cryptocurrency traders. Let’s review some reasons why he considers Ethereum to be an eternal rival of Bitcoin.

Reasons Why Ethereum Is Bitcoin’s Eternal Rival

Similarities Between The Two

Ethereum and Bitcoin are similar in that they have the same foundations. Both assets are cryptocurrencies and are both high in demand. Bitcoin and Ethereum are decentralized cryptocurrencies. This means that no bank or government authorities have control over them. They are stored in blockchain systems. The decentralized form of these cryptocurrencies is what makes them so reliable because the owner of the currency has all control over it.

Ethrereum and Bitcoin both use a proof-of-network consensus which means that they require verification and confirmation before they are issued.  Due to the verification and confirmation processes that are necessary, both assets have slow transaction processes.

What Makes Them Different

Shay Benhamou says that while these two assets have many similarities, they also differ in many technical ways. They use different algorithms where Bitcoin is run on SHA-256 and Ethereum uses ethash. They also have different block times. In this regard, Ethereum is faster than Bitcoin because while Ethereum transactions are completed within seconds, while Bitcoin transactions can take several minutes to complete.

The most prominent difference between the two is in the fact that they have different overall aims. Bitcoin was developed to perform as an alternative to national currencies. It aspires, and has somewhat succeeded, to become the medium of exchange.  On the other hand, Ethereum was created to work as a platform to provide blockchain services with its own currency of Ether. Ethereum does not want to establish as a monetary system unlike Bitcoin.

Driving Force Behind Rivalry

The prices of both assets have always been in close quarters over the years. As soon as Bitcoin makes a move to become prominent in the eyes of the investor, Ethereum comes up with ways to increase the competition and introduces something new. For instance, the new upgrade of Ethereum is said to end Bitcoin’s blockchain dominance. The developers have made significant changes in the Ethereum system which is bound to attract many more investors. However, we cannot be too sure of this as Shay Benhamou says, because Bitcoin may just come up with an upgrade that may put it back to its initial dominant position. The constant challenges and upgrades that these two cryptocurrencies hit each other with is the main reason why Shay Benhamou and many others believe that the rivalry between Bitcoin and Ethereum will last all of eternity.

Concluding Thoughts

Shay Benhamou is a firm believer that the rivalry between Bitcoin and Ethereum is eternal. He has many solid reasons to back this claim and has shared a few with us. Both assets are similar in so many ways but also differ in a lot. This makes them the perfect competitor for each other. Moreover, they both were launched in a close timeline which means that they grew together. The market value of both these assets is always in close numbers. Even if one is affected by something, it soon closes the gap in the values. All these reasons pile up to support Shay Benhamo’s belief that their rivalry is everlasting.

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Finance

Wobit Review – Evaluating the Features of the Company

In 2009, Satoshi Nakamoto introduced Bitcoin to the world and established the world’s first cryptocurrency. At that point, it hadn’t crossed anyone’s mind that only a decade later, it would be one of the most volatile and biggest markets in the world. Today, cryptocurrencies are trending as the next big thing in the financial markets and are enjoying a lot of popularity. People have made fortunes in this space and more and more people are jumping in for reaping the benefits. Therefore, platforms have been set up to help people in doing so and Wobit is one of them. But, what makes the company different? You can read the Wobit review to find out.

Not doing your homework can set you back in the long run because it may turn out that the platform you have chosen is not the right one for you. There have been scams and frauds in the crypto market as well and you need to avoid these altogether. Hence, evaluating the features of a company before signing up with them can save you a major headache in the long run. Let’s get started:

Wobit’s Security

Keeping in mind the security risks inherent when doing anything online, plus the unregulated nature of the crypto market, you should first evaluate the security aspects of a company. If you sign up with a company that doesn’t have adequate measures in place, you could end up suffering disastrous consequences. When you check out the policies on Wobit, you will be pleased to know that the company is AML (Anti-Money Laundering) and KYC (Know-Your-Customer) compliant. This means that all who make an account on the platform have to verify their identity and address.

It eliminates the possibility of fake accounts and keeps scammers and fraudsters out. Plus, the risk of money laundering, identity theft and financial fraud is also mitigated. Furthermore, Wobit has also used SSL (Secure Socket Layer) for encrypting all traffic on their website. They also use encryption technology for protecting all data and information that’s shared on their website.

Wobit’s Crypto Index

One of the most vital features of a broker that need to be evaluated is their crypto index. You want to trade digital currencies to maximize your profits, but this can only happen when you have access to profitable cryptocurrencies. There are thousands of options that can be found nowadays, but not all of them can offer the same level of return. Hence, checking out the options available beforehand can indicate whether the company will enable you to earn the returns you want. You will not be disappointed with the crypto index that you find at Wobit because they have offered an extensive list of options.

Their goal is to allow their clients to be able to diversify their investment as much as they want. Therefore, they have added the leading crypto options, such as Bitcoin, Litecoin, Ethereum and Ripple. Along with these, you will find lots of other choices as well, like Bitcoin Cash, Dash, NEO, IOTA and NEM.

Wobit’s Registration and Account Process

Before you can start trading cryptocurrencies on a platform, you will be required to go through a registration process and this can vary from company to company. There is no standard established for this, so it is best to take a look at what you will be required to do. There is only one form on the Wobit website that you have to complete and this will not take you more than five minutes. They ask for basic details like first and last name, email address, password, phone number and your country. You need to agree to their Terms & Conditions and then check out the account choices.

A total of seven account options have been incorporated by Wobit, starting with Trail, Basic, Trader, Pro Plus, VIP, Millionaire Club and VIP Ultra. You can pick any one of the options, make the deposit and start trading right away, not having to worry about Wobit scam.

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Finance

How to Deal with Inflation Through Financial Analysis and Forecasting

Inflation is one of the toughest things that any business can go through. It causes an increase in prices and production costs while decreasing people’s purchasing power. When people don’t have the financial capability to afford your products and services, it can be tough to find a way out of it.

However, while inflation is a struggle for businesses, the advancements in financial analysis and forecasting have given businesses the opportunity to anticipate inflation and do the necessary preparation. With financial analysis and forecasting, you can soften the effects of inflation on your company.

What Is Inflation?

Inflation happens when the value of a currency suffers from a decline. You can see it by comparing the increase in prices of a basket of select goods over a period of time. When the prices of goods start to rise, that means the currency has less purchasing power than before.

It means when people have less purchasing power, they will also have less purchasing power to buy your goods and services, and you will have a greater number of expenses as the prices of all items increase.

Predict Inflation With Financial Modelling And Forecasting

If you have a fully fleshed-out financial model with all the relevant data and information, you can predict inflation by studying the data for the tell-tale signs of inflation, such as a steady rise of the price of products and erratic changes in demand.

With financial modelling and forecasting, you can use financial analysis to study the numbers. By looking at the correct numbers and providing the right input, you can spot when inflation is on the horizon. When you can predict inflation with financial analysis, you can buy yourself time to prepare for it.

Making Changes To Inventory

Before inflation, most businesses stock up on inventory as much as possible, but when inflation arrives, doing the same can increase your costs by a big margin. With the use of financial analysis to predict and deal with inflation, you can see which ones of the items you need for business will affect you.

By knowing so, you can make changes, such as not ordering too much inventory. Some businesses even try the just-in-time approach to inventory, which is about not stocking up on items and buying items only when they need them.

Price Changes

With inflation, as the prices of goods come up, it’s inevitable for your production costs to rise, too. Inflation really messes things up a lot, and it will make it tricky for you to maintain your old prices when everything you need to provide your product or service is getting expensive.

The biggest mistake that most businesses make during inflation is reacting with the prices too late. Due to this, their prices come up suddenly, and people try to avoid their brand. But, when you have financial analysis and forecasting on your side, you can prepare early.

Instead of waiting until the prices really need to go up by a lot, you can try steadily increasing the rates so it won’t end up as too much of a shock for consumers. You will inevitably need to increase your prices, but the way you do it is what will help you get through inflation.

Conclusion

Inflation is never a good thing for businesses, which is all the more reason you need to prepare for it with financial analysis and forecasting, so your business will still be afloat when everything goes back to normal, and you can get all the losses back.

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Finance

Getting the Best Out of Cryptocurrency News 

In the present era, cryptocurrencies like the Bitcoin is used more and more for the reason of better transaction. It is time to look at the best advantages that Cryptocurrency offers over the traditional mode of making payments. At the time when Cryptocurrency was initially introduced, there were early adopters on the dark web, and they took advantage of the payment system in specific. For this reason, there are experts to believe that Cryptocurrency is an illicit concept, and there should be reservations in the usage of the same. This will help maintain the user sanctity of Cryptocurrency at best.

The convenience of Using Cryptocurrency 

Like most cryptocurrencies, Bitcoin is in unregulated form. In this manner, Cryptocurrency News will state how best to make use of the digital currency for the best ease in a transaction. However, the form of digital currency comes with a list of advantages highly applicable in the field of relevant transactions. In this case, the transactional fees are quite low when compared to the credit cards and the rest of the financial options. In this case, you can even eliminate the necessity to pay bank charges. The form of digital currency is just the way to make you feel easy when going through a transactional phase.

Lesser Time and Fraudulence 

In the mode of Bitcoin payment, there are lesser possibilities of fraudulence. A payment made with Bitcoin can never be reversed, and this is quite different from the form of credit card payment. Things are reversed by making use of the chargebacks, and here you have the feature which is often exploited by people with unfair intentions. It can take days for a credit card payment to happen. This is, however, not the case with Cryptocurrency. Here you can enjoy instant transferring with the least of a hassle.

Attracting the Customers 

The transaction form of Bitcoin can attract customers at best. It is the new means of making the fastest payments, and it has the best option to offer to the customers who can help you usher in the new and lucrative business. With the use of the specific Cryptocurrency, you can stay ahead in the competition, and in the way, you can overrule the competitors in a similar field. It is quite easy to embrace the mode of cryptocurrency payment with all the feasibilities on offer. In this case, you should know the details of cryptocurrency evolvement with time and testing.

Ease of Cryptocurrency Usage 

There can be nothing more static than Cryptocurrency News. You should have an exact idea regarding how you can use the same as an extra advantage in conducting business and making payments in time. If you are new in the realm of blockchain, you can know in detail both Cryptocurrency and Bitcoin. These days the crypto companies have raised the bar, and they are on the move to make things happen with the ease of digital currency usage. It is extremely comfortable when dealing with cryptocurrency assets in specific. It is just the way to make you feel financially secured and heightened.

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Credit Cards

5 Things You Must Know About Your Credit Card

Now that you have a credit card, you no longer need to worry about running short of cash when shopping. Plastic money is easy to carry and your favourite pair of jeans or that stylish watch that just caught your eye is only a swipe away. To enjoy the most benefits, you need to choose the card carefully. For instance, by choosing lifetime free credit cards, you have no annual fee to worry about.

You may be excited to apply for a new credit card, but here are five things to know before going ahead.

  1. Repayment options

To avoid incurring interest on credit card dues, find out the due date of repayment and plan your finances accordingly. Plan your expenses such that you have enough funds to repay the dues on your credit card without any delay. While issuers offer a grace period, between the end of the billing cycle to the due date of repayment, it is not a good idea to wait till the last moment to transfer the funds. Set a date on your calendar to remind you to make the transfer a couple of days in advance. This way you can avoid any late fees or interest charges. But what if that’s not possible at times? Here are two things that can help:

  1. If you had got a credit card with the lowest interest rates, you have less to worry about.
  2. Convert the outstanding amount into EMIs. That way, you don’t pay any credit card interest. There may be a processing fee for this facility.
  1. Rewards and offers

Be aware of reward points. If the card offers more reward points for online purchases, you can shift to buying most of your groceries and essentials online. When you apply for a new credit card, be sure to check if there is any expiry date for reward points. Choose an issuer that offers unlimited reward points, which means there is no expiry date. Also, keep an eye on the various offers. There may be discounts and cashbacks on several purchases, including flight and hotel booking, as well as certain facilities like free access to airport lounges.

  1. Spend within the credit limit

To avoid over-the-limit fees, keep your credit card expenses below the credit limit. In case your monthly expenses are higher, you can always pay for some things in cash. Else, apply for a new credit card with a higher limit. If you do so, choose lifetime free credit cards, so there are no annual charges to worry about.

  1. Credit card security

If your cash gets stolen, it’s hard to trace it and even harder to get it back. If your card gets stolen, you can simply call the issuer and have the card blocked immediately to prevent any fraudulent transactions. Even if there is an unauthorised transaction after your card is stolen, the issuer bears this risk. To keep your card from being misused, never share its details, like the PIN or CVV number, or transaction verification codes like OTP with anyone.

  1. Build your credit score

Use the credit card frequently and repay the dues in time to build your credit score. As long as you have the ability to make the repayment in time, don’t hesitate from using your credit card. A high credit score stands you in good stead when applying for a loan.

While credit cards with no annual fee help, your financial planning and discipline can maximise the benefits.

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Finance

Why You Should Hire a Qualified Chartered Accountants for Your Ecommerce Business?

People today think that an accountant isn’t required while starting a small business. But they’re not aware of what an accountant just will set the accounts and will file the tax returns when companies will be installed. So, it’s extremely important to get a CA in the business from the very first day of the start-up. A CA will always do his job on time allow it to be the registering of the taxation or tax compliance. And a well-educated CA won’t just assist you with the bookkeeping things but will also assist in other fields. Prior to hiring a CA to assess all of the requirements you want out of him.

Offers Business Plan

A brilliant business plan supported with a cost-effective tax program will offer a platform to a business where a business can be started and it may be guaranteed that there’s not any unexpected cost round the Ecommerce Specialist Accountants in London. After the company is new, then the most important issue to concentrate on is the marketing and selling of products or services. Notice all of the actions that are being done carefully before beginning the trading. A CA will always give you a means by which you can know where you’re going wrong in the company and what you need to do about it particularly about the tax. Also, an individual could head start with the internet website by selecting the best professional chartered accountant site template services being provided by many CA Portal kind of organizations which would further assist you in maintaining your electronic presence throughout the planet.

Offers Financial Advice

Money plays an essential role when you will begin a business or expand it or you’re failing in the company i.e., in every facet. Without money, you can’t think of starting a company. With an educated and educated CA helps you in all aspects of your company. Next up, you need eCommerce experience. We do not imply an accountant who dabbles in selling pogo sticks Amazon in their spare time or a bookkeeper that has a significant eBay addiction. We mean that an accountant who has worked with other eCommerce companies of Accountants for Ecommerce in Hounslow. Why? Well, not only will they know the challenges and opportunities your eCommerce business faces, but they’ll also understand how to complete simple tasks (for example, sending sales orders from Shopify to Xero) with the ideal tools — saving them time and your money.

Services

Additionally, it is important to check that the accountant you are eyeing up offers all the services that you want. Some eCommerce accountants may also throw in a few extras to you — such as multi-channel management eCommerce program, that may help you manage your company beyond just finances.

Recommendations

And, let’s not overlook recommendations. As an internet seller, you understand the value of reviews and recommendations — you can’t beat them. If they are performing exceptionally for other companies, it is very likely that they will do the same for you.

Software

You’re operating in an extremely technical, constantly changing and innovative business; you want your accountant to maintain. Make certain that the eCommerce accountancy practice you select uses cloud-based accountancy applications, such as Xero. Not only does it create your accountant’s work faster and simpler (reducing their charges ),, but it also has important benefits

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Insurance

Questions To Ask Before Buying A Child Insurance Plan

There is nothing more rewarding than seeing your child succeed in their career. What is even more rewarding is to feel good about the fact that you could contribute financially in their journey to achieve success. More and more parents are becoming aware of the importance of investing in a child insurance plan. A child plan is an investment as well as insurance that secures your child’s future. These plans provide you the flexibility to invest in your child’s future based on your financial status. However, given the plethora of options to choose from, it is not unusual to get overwhelmed. Here are a few questions to ask before buying a child plan.

  • What are you saving for?

This is a good question to ask yourself before you start saving. Are you planning on saving for your child’s bachelor’s degree or master’s as well? Would you want your child to study overseas? All these questions are important while investing in a child insurance plan since it may give you multiple policy options to choose from.

  • When to start planning?

The sooner you start investing in a child plan the better. Start right after your child is born. It will give you more time to save enough money.

  • What should the tenure of the plan be?

The minimum maturity period for a child insurance plan should be at least 10 years. There is no shortage of short-term plans, but you may be faced with a cash crunch. The bottom line is that the tenure of your plan should depend on the age of your child when you begin saving.

  • Will you be allowed partial withdrawals?

You never know when you may need the funds. The ability for partial withdrawals can come in handy for unconventional educational expenses.

  • Does your policy include a premium waiver?

In case of the policy holder’s demise, the outstanding premiums are waived the nominee gets a lump sum amount after the maturity period. These benefits come in handy in case of unfortunate emergencies.

  • Will it help you save taxes?

The premiums you pay for a child insurance plan are eligible for tax exemptions under Section 10D of the Income Tax Act, 1961.

A child insurance plan is a great financial asset for your child and your family. Ask these questions before buying a policy and you will be just fine.

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Finance

Are Endowment Plans the Same as Money-Back Plans?

While considering their financial plans, people are on the lookout for suitable savings plans that will help them meet their long-term or short-term goals. A life insurance savings plan, such as an endowment plan or a money-back life insurance plan is considered to be quite useful since they both offer savings along with a comprehensive life cover. Both, endowment and money-back plans, have some similarities in their benefits and returns, leading to customers getting confused between them. This confusion may result in the purchase of the incorrect policy. Hence, let’s understand in depth what exactly these policies entail.

What are Endowment plans?

An endowment plan is the insurance policy designed to pay a lump-sum amount after a specific period in the event of the policyholder’s death or on maturity. An endowment plan is essential for investors who wish to meet their long-term financial goals. Those who plan for future financial expenditures like their child’s marriage or a retirement plan should opt for the endowment plan. Endowment plans have higher premiums but will provide you with a guaranteed amount once the policy’s tenure is over. These plans provide the policyholder with the benefit of both insurance coverage and savings.

What are Money-Back plans?

A money-back plan is a life insurance policy that pays a specific percentage of the sum assured at periodic intervals throughout the policy term instead of the complete amount on maturity or as a death benefit. A money-back plan is an endowment plan which offers liquidity and hence, can also be referred to as a short term endowment plan. Individuals who wish to get insurance coverage and payouts at regular intervals to meet their immediate financial goals should choose a money-back plan. This plan is quite beneficial for taking care of financial emergencies that may emerge during a plan’s tenure. Money-back plans are helpful for those who are nearing retirement, as these plans provide a steady flow of income even after the individual has retired.

Similarities between an Endowment Plan and Money-Back Plan

Endowment plans and money-back plans both are life insurance savings plans and provide the policyholder with death benefits as well as maturity benefits. Individuals can use both these plans as insurance-cum-investment plans. Both the plans have high premiums because of their extensive features, and the investments made through these plans do not depend on the market’s performance.

This makes endowment plans and money-back plans a good choice for those seeking guaranteed financial returns.

Differences between Money-Back Plans and the Endowment Plans

While money-back policies and endowment policies are essentially savings plans, there are a few differences that should be noted:

Money-Back Plans Endowment Plans
Provides a regular flow of income to meet immediate needs and short-term financial goals. Ideal as a savings plan to meet long-term financial goals such as retirement, child’s marriage, etc.
You get a percentage of the sum assured at regular intervals throughout the policy term. The remaining sum assured and bonuses (if applicable) are paid on maturity. The predetermined sum assured as well as the bonuses (if applicable) are paid on maturity, if the policyholder survives the term.,
The average tenure of a money-back plan is 5-25 years. The average tenure of an endowment plan is 10-35 years.
It cannot be used to get a loan since part of the sum assured is deducted during the policy term. An endowment plan can be used as security against a loan.

Knowing the differences between the two types of savings plans helps when you are looking for ideal insurance-cum-saving schemes in India. The choice between an endowment plan and a money-back policy mainly depends on your investment objectives and how you want to fulfil them.

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