After long-term deliberation Real Estate Bill is finally approved. This Real Estate Bill is introduced to regulate reality sector. It is expected that this bill will bring transparency and protect human rights for the real estate sector. As we know real estate sector is totally unorganized and it is one of the key source of black money circulation in India. An Introduction of this bill will bring real estate sector in order. It will also bring good days for the real estate sector. Let’s check the detail of real estate bill.
Real Estate Bill 2016 – Key Points for the Home Buyers
A new real estate regulatory authority shall be formed in every state. A home buyer can directly approach this authority in case of any disputes, delay or grievances.
This real estate bill shall ensure that developer disclosed all project information like a project plan, layout, land title status, schedule of implementation, project cost, government approval, agreements, details of real estate agents, contractors, architects and structural engineers to home buyers and to real estate regulatory authority.
Current malpractice of selling property on a super built up area is stopped. All projects should be sold on carpet area and not super built up area. This is a major relief to home buyers as now builder cannot cheat you by selling property on the super built up area.
This act enforced builders to keep 70% of fund collected from home buyers in a dedicated bank account. This will ensure that money taken from one project cannot be used for other project or for new investment by builders. This will ensure faster completion of the project and also increase competitiveness.
No pre launching of projects shall be allowed. Builder need to take all necessary approval from local municipality, government authority and real estate regulator.
Builder cannot change project plan on their own. Any change in project plan required consents of 2/3 allottees.
In case of delay in project developer is liable to pay penalty along with interest. Any violation may lead to imprisonment.
The builder has to give after sale service for any defects up to 1 year from the date of allotment.
The misleading advertisement shall not be tolerated. A real estate regulatory authority can order builder to give compensation for the misleading advertisements.
Real Estate Bill 2016 – Key Points for the Builder
Developers need to provide historical projects details both completed and under construction to real estate regulatory. This detail shall be placed on the website of regulator for the benefit of consumer.
The bill covers any project with starting from 500 Sq m or has more than eight apartments.
Penalty to builder includes severe impact including jail or project deregistration.
Commercial real estate also brought under the ambit of the Bill and projects under construction are also required to be registered with the Regulatory Authority.
The liability of developer for the structural defects has been increased from 2 to 5 years.
The real estate bill will protect real estate consumer and also bring transparency and accountability. As per me price of real estate would be stabilized and inflow of black money will stop. As more consumers will be interested to invest in real estate and it will surely bring good days for real estate sector.
After the bill passed PM Modi Tweeted:
Real Estate Bill fully ensures more transparency, accountability & efficiency in real estate sector, freeing it from many existing flaws.
— Narendra Modi (@narendramodi) March 10, 2016
Do you think real estate bill 2016 will revive sleeping real estate sector? Do share your views by commenting.
What do you do for a living? If you are doing a 9 to 5 Job, it is very difficult for you to become rich. It is a reality that your salary paycheck alone cannot make you rich. In order to prove this argument let’s do a small exercise.
Please make a list of five rich people you have come across.
You can include your friends, relatives or famous personality in the list.
Once your list is ready, please check do you find anyone on the list who is doing a job?
Well, I could not find anyone on my list who is doing job and rich also. The name which appears in my list is given below.
Vikas – One of my friend who is doing Diamond Business.
Manojkumar – My relative doing Real Estate Business.
Tejas – My relative doing Chemical Business.
One uncle of my colony who is running Textile Business.
My neighbor who is running Restaurant Business.
One thing which is common in all of the above is they are businessmen cum entrepreneurs and not an employee. They employ people to do the job.
I have asked a similar question to my friends, and in their list of rich people also I could not find anyone who is rich and doing a job. If you think a while you may find one or two name who is rich and doing a job, but these people will be either with white hair or no hair. If you want to become rich with white hair job is not a bad option. You can become rich or crorepati in 15-20 years after getting 3-4 promotions. However, what is the advantage of becoming rich when you are older? You will be rich for your children and not for you. If you want to be rich for yourself business is the only option for you.
Everything mentioned above is correct but a big question is – “what to do after leaving a job?” If a similar question is popping up in your mind I don’t have an answer to this question. You need to listen to your internal voice and find out that if you are prepared to take a big step of starting a business or not.
If you have a dream of doing something big in life you need to take a decision right now because, in future, it will be much more challenging to take this decision.
Your responsibility will increase and risk taking capacity will reduce.
Your salary will increase and you may do compromise that enough money is coming why I should try something new?
You must be thinking that it is good to give a lecture like this, but it is practically difficult to execute this choice. Yes, it is difficult to execute this choice but not impossible.
Let’s take some practical examples – Dhirubhai Ambani was petrol pump attendant once upon a time. If he could not have left that job, we could not have seen Reliance Industries. If Narayan Murthy could not have left Patni Computers job, biggest IT giant Infosys could have never been born. Even superstar Amitabh Bachchan was doing a job in Bird & Co. shipping firm before he became an actor. He has listened to his heart and started a career in the film industry and today he is the biggest superstar of the millennium. All these are big inspirational stories that will help you to work towards your dream.
Let’s come back to the old question again How to leave a job and what to do after leaving a job?
First of all, you need to decide what you are going to do after leaving a job. You must be having a financial obligation. How you are going to run the show without money? Follow the steps below before leaving a job.
Make Emergency fund – Living expense up to 1 year.
Zero down to the good business idea.
Make an arrangement of capital and resources required for the said business.
Quit the job and start a business.
If you have a problem in following any of above steps or if you are worried about failure in business. I suggest you to start a side business along with a job. It is an old and proven way to transit from job to business. You might have seen many people does side business after office hours and once side business generates the good income they quit their job.
Let me give you a small example from famous book “Connect The Dots” of author Rashmi Bansal. Mr. N Mahadevan was a professor in madras university but he was passionate about starting hotel. He joined small hotel in part time to understand their business. After gathering enough money and understanding prototype of business, he left the prestigious job of professor and started his own hotel called as Oriental Cuisines. Today Oriental Cuisines has more than 100 odd outlets across the country and giving employment to multiple people.
You might be knowing that I am also doing a job and passionate about business. I would like to share my plan with you.
As I am inspired by education field, I have started small coaching class in part time. In addition, to that, I have started a blog called as Moneyexcel.com on which I am sharing knowledge about finance. My income level is growing. Once I reach to break even I will quit my job and fully concentrate on the business.
My friends are also giving wings to their dream in various ways. Few of my colleague has taken franchise of Kedyo Restaurant in Surat and started earning money.
Over to You
At last, I would like to say that in life you need to take the risk. No Risk means No Gain.
Remember you don’t need an impressive degree or rich dad to dream big and make it happen. It’s all about your intelligence, fate, and risk taking capacity.
In short your salary paycheck cannot make you rich you need to do business to become rich.
Union Budget 2016-17 was announced by finance minister Arun Jaitley today. This is third budget of BJP government under leadership of PM Narendra Modi. It was challenging for finance minister to make budget for 2016-17, however he has tried his level best in making budget 2016-17. Overall Union Budget seems to be OK. Lot of new announcements were made by finance minister in budget 2016-17. Let’s take a look Key Highlights of Union Budget 2016-17.
Key Highlights -Union Budget 2016-17
Personal Finance
No change in Tax Slabs. However relief to small tax payer with income up to 5 lakh in form of rebate u/s 87A. Limit enhanced to Rs.5,000.
Deduction u/s 80GG for rent paid is increased to Rs 60,000 per annum from Rs 24,000.
Withdrawal up to 40% from NPS Tax free. Similar exemption for EPF and Superannuation Funds.
The Government will pay EPF contribution of 8.33% for all new employee for first three years.
First time home buyers to get additional deduction of Rs 50,000 on interest for loan up to Rs 35 lakh
Service tax exempted for housing construction of houses less than 60 sq. m
Health
New Health Insurance scheme for lower class up to 1 Lac. Cost of medicine will be borne by government.
Senior citizens will get additional healthcare cover of Rs 30,000 under the new scheme
PM Jan Aushadhi Yojana to be reinforced by opening new 3000 medical stores.
Basic dialysis equipment will get cost benefit.
Education
Selected Education Institute to be made world-class.
Digitalization of all school leaving certificate.
Training about Entrepreneurship to be provided across school, colleges.
Providing skill to 1 Cr youth in next 3 years under PM Kaushal Vikas Yojana.
Business and Startup
100% deduction will be available on Income from startups for 3 years.
Capital Gains will not be taxable for investment in startup.
Company Act Amendment to improve enabling environment for startup.
Small shops will be given choice to open on all 7 days.
Promise to double the income of farmer in next five years.
Insurance scheme for former to insure agriculture crop. Low premium and high compensation in case of crop loss under new PM Fasal Bima Yojana.
Dedicated irrigation fund in NABARD of Rs.20.000 cr
Allocation of fund for organic farming.
Banking
MUDRA loan disbursement target increased to 1,80,000 crore
Recapitalization of public sector banks will be done.
Government will increase ATM and Micro ATM for Post office.
General Insurance companies will be listed in the stock exchange.
Other
LPG connections to be provided under the name of women members of family
SUVs, Luxury cars to be more expensive. 4% high capacity tax for SUVs.
Excise duty raised from 10 to 15 per cent on tobacco products other than beedis.
Infrastructure and agriculture cess to be levied
Excise 1 per cent imposed on articles of jewellery, excluding silver.
Additional 0.5% Krishi Kalyan Cess to be levied on all services.
Additional Pollution cess of 1 % on small petrol, LPG and CNG cars
5 % cess on diesel cars of certain specifications; 4 per cent on higher-end models.
For NRI new document will be introduced apart from PAN card.
Use of E-Assessment for all assessees in 7 mega cities.
Certain announcements made by finance minister were very good like introduction of health protection scheme, allowing shops to be open for 7 days, EPF contribution for new employee etc. However steps like introduction of additional cess and taxes will increase inflation level. Over all Union Budget 2016-17 was another average budget presented by finance minister.
What is your take on Union Budget 2016-17? Do voice your opinion in comment section.
Purchasing a term insurance plan is the first step toward financial planning. As soon as you start earning money, you should purchase a good-term insurance plan. Term Insurance plan is a low-cost insurance policy that provides risk coverage and financial stability to your family in your absence.
I don’t want to scare you but think of the situation who will fulfill a financial need of your family in your absence. A Term plan gives you, a mental peace that they will get insurance amount on your death. So, as per me, a term plan with sufficient risk cover is a must, if you are the only breadwinner of the family.
Today you will find many insurance companies including LIC is offering online term insurance plan in India. So, it becomes extremely difficult to select which is the best term insurance plan in India. Today l will share details about the Best Online Term Insurance Plan in India. I will also suggest various features and points to consider before buying a term plan.
What is a Term Insurance Plan?
Term Insurance Plan is a pure insurance plan that will provide risk coverage to the policyholder. There is no maturity benefit attached to a term plan. The nominee will get a benefit from this policy only in case of the unfortunate death of the policyholder.
Term Plan Features
Accident Rider Benefit
Accidental Rider Benefit is an optional feature. Normally this feature is required for frequent travelers. In order to avail accident rider benefit, you need to pay an extra premium. Suppose you have taken a term plan of 50 Lac. You can opt for an additional accident rider benefit of an additional amount by paying an extra premium. Suppose you take an additional accidental rider of 10 Lacs. In case of natural death amount payable will be 50 Lac, however, in case of accidental death 60 Lacs will be paid to the nominee.
Premium Waiver Benefit
Premium waiver benefit is associated with partial or full disability. This option provides you with the advantage of a premium waiver in case of partial or full disability due to an accident. All future premiums will be waived but the policy will remain enforced.
Critical Illness Rider
Critical illness benefit riders will pay you money in case you are diagnosed with certain pre-defined listed illnesses. The most common illnesses include heart attack, brain stroke, kidney failure, etc. Critical Illness rider is taken for a specific amount. Suppose you have taken a critical illness rider of 10 Lac and you are diagnosed with a heart attack which is included in the list. You will be paid 10 Lac on the diagnosis.
There are multiple life insurance companies in India like LIC, ICICI, HDFC, Exide Life, Kotak, Aviva, etc. All these insurance companies provide a similar type of term plan to customers, which makes customers confused in selecting the best term plan.
In order to find out the best term plan, we have to adopt a selection methodology based on our preference. I have used the following factors to select the best term plan.
Policy Premium
Reputation of the company
Average Claim settlement ratio
Financial Background of the Insurance Company
Additional Features/ Riders provided by the company
Customer Satisfaction and Service
Policy Tenure and Maximum Age Coverage
Average time to settle a claim
Ease of buying Policy Online
Based on the above selection factors list of the best online term plans in India is given below.
ICICI iProtect Smart is first in the list of the best online term insurance plans. ICICI iProtect Smart policy provides 360-degree coverage to your life at a very reasonable price. ICICI iProtect Smart term plan offers additional features of accident rider, premium waiver, critical illness, and terminal illness benefits. The claim settlement ratio of ICICI Pru is very good. If you have not purchased a term plan yet you must consider iProtect Smart.
#2 HDFC Click 2 Protect Plus
HDFC Click 2 Protect Plus is one of the best online term plans. HDFC Click 2 Protect Plus provides complete protection at an affordable price. HDFC Click 2 Protect Plus comes with four different options namely Life, Extra Life, Income, and Income Plus option. You can avail of accidental rider and critical illness benefits under this plan. The claim settlement ratio of HDFC life is slightly low.
#3 LIC Tech Term Insurance Plan
LIC (Life Insurance of India) is the most reliable number one insurance company in India. LIC is even best in terms of claim settlement ratio. LIC is offering a pure online term plan called LIC Tech Term Insurance Plan. However, the premium of the LIC Tech Term plan is slightly higher compared to all other plans. Tech Term plan offers a flexible payment option. It also provides accidental rider benefits. If you have not purchased any term plan and if you have hesitation in purchasing a term plan from a private insurance company LIC e-Term is for you.
#4 SBI e-Shield Next
SBI e-Shield Next is next on the list of the best term plans. SBI e-Shield also provides additional accidental rider benefits and increasing cover benefits. However, the premium of the SBI e-Shield plan is high compared to any other term plan. The claim settlement ratio of SBI Life is moderate.
To know more about SBI e-Shield. Kindly go through the details available on SBI site.
#5 Max Life Online Term Plan
Max Life Online Term Plan is one of the most affordable term plans. Max Life Online Term Plan also provides the option of monthly income along with life cover. A Claim settlement ratio of Max Life is the second highest after LIC.
#6 Kotak Preferred E-term
Kotak Preferred E-term Plan is next on the list of the best term plans. Kotak E-term is a unique term plan providing inbuilt premium waiver benefits in case of permanent disability. The e-term plan also provides the option for customizing claim payout. The claim settlement ratio of the Kotak Preferred E-term plan is moderate.
FAQs
Why Online Term Plan is better option?
(1) Easy
It is extremely easy to purchase term plans online. You just need to fill in your details and make payment online.
(2) Low Cost
The online Term plan is available at a lower cost compared to the offline plan. It is low cost as you are not paying extra money to the insurance agent in terms of commission.
(3) Not Derived by any agents
No insurance agent or advisor is involved in the process. It is completely transparent. A decision of buying a policy is entirely on you and not derived by any agents.
How much risk cover I should take?
A risk coverage amount depends upon the individual. You should calculate your exact life insurance need before finalizing the sum assured. Always go for a need-based approach. As a thumb rule, you should purchase life cover equal to a minimum 12 times of your annual income.
You need a term plan up to your retirement age. Once your income stops there is no need for a life insurance coverage. So, while deciding terms of policy keep this in mind.
Do I need to purchase accidental rider and other rider benefits?
The answer to this question depends on individual needs. If you are a frequent traveler, you should opt for accidental rider benefits. If you have a medical history it is advisable to take a plan with critical illness benefit.
Should I purchase a term plan from two different companies?
In order to minimize the risk of claim settlement, you can plan to buy two different term plans from two different companies. However, you need to disclose details about all previous insurance policies taken by both of these companies.
What details I should disclose while buying a term plan?
Life insurance is an agreement on the principal faith. You should disclose all relevant information like health history, existing insurance plan, a habit of tobacco or cigarette, etc while applying for a term plan. Non-disclosure of this information can create problems at a later stage and it may lead to rejection of a claim.
A Medical checkup is mandatory for buying a term plan?
A medical checkup is not mandatory for all term plans. Most life insurance company offers term plans up to 50 Lacs without a medical checkup. However, for a higher sum assured you need to undergo a medical checkup. You may be required to pay additional charges for the medical checkup.
Which documents are required for buying a term plan?
You will need the following documents to buy a term plan.
Address proof – Aadhaar Card, Energy Bill, Telephone Bill, Passport, Bank account statement
Age Proof – Driving License, School / College Certificate, PAN Card, Passport, Birth Certificate
Identity Proof – PAN Card, Driving License, Aadhar Card, Passport, Voter ID card
Income Proof – IT return
Over to You
I have given my unbiased opinion on the best online term insurance plan. Hope it will help you while buying a term plan.
Do you think the online term plan suggested by me is the right fit for your requirements?
