How much Life Insurance Cover should i avail? This is one of the most common questions creeping on personal finance forums/newspapers. Certified Financial Planners suggest that a cover of 10 times your annual income is sufficient. I find same suggestion for all such queries. Now, this advice is deep rooted in psychic of an individual who does proper research before buying a Life Insurance Cover. Recently i wrote a post, Life Insurance Plan - 5 Possible reasons why you should not buy. In that post, i highlighted 5 general cases under which an individual doesn't need Life Insurance Cover. There ... Read More
Joint Home Loan – 5 Most Common MYTHS
Joint Home Loan is one of the best-marketed product by banks and HFC's. Through Joint Home Loan banks hedge their mortgage risk. These days almost all the banks insist on Joint Home Loan even if the property is bought in a single name. Quite interestingly even if the wife is non-earning/housewife then also banks insist on Joint Home Loan. The biggest carrot to SELL Joint Home Loan is Home Loan Tax Benefits. I agree that if both Husband and Wife are availing tax benefits then it makes sense to avail Joint Home Loan else it's a BIG NO. Recently, one the readers of this blog complained to RBI ... Read More
Home Loan Myths – Top 7 Myths Every Borrower Should Know
Home Loan Myths as the name suggests are the misconceptions about Home Loan. I tried to found out who all are responsible for home loan myths. My conclusion is that primarily three factors are responsible. The first one is a lack of knowledge of Bank/HFC (Housing Finance Company) employees. Secondly, the people around us who pass half baked information thus responsible for the viral effect of home loan myths. Till date, i have not come across a single person in my acquaintances who told me "I don't know". You can discuss anything and everything on this planet with people around you. They will ... Read More
Job Loss Insurance Cover – Should i opt for it?
Job Loss Insurance Cover is the new buzzword in Insurance industry. In India, it is not available on a stand-alone basis from a personal finance perspective. Job Loss Insurance Cover is an add-on with Home Loan Protection Plan or Critical Illness Cover. There is a famous saying that necessity is the mother of all of invention. In literal terms, the changing job scenario is forcing the insurance providers to launch such innovative covers. Job Loss Insurance Cover is finding a traction due to fear of job loss. As a layman, an insured person's understanding is that Job Loss Insurance Cover will ... Read More
Home Loan for Women – Is it true?
Home Loan for Women at Concessional Interest Rates reads one of the hoardings near my house. My wife called one of her friends and told her about the Home Loan for Women. Her friend is a single working woman and looking for a flat in Noida. I knew that bank will not lend to a single women borrower at any cost. As i was not in a mood to dampen the spirit and enthusiasm of 2 friends, therefore, i was a mute spectator to this discussion. After few weeks, her friend called me and told me that bank is not approving her so-called "Home Loan for Women". The bank was demanding either a co-applicant or ... Read More
5 Common Home Loan Mistakes
Home Loan mistakes may cost very heavily on your pocket. I call common mistakes during Home Loan process as a Home Loan mistakes. Home Loan is a long term commitment and many borrowers take it casually. I personally feel that whatever impacts you financially should be taken seriously. In past, i have written similar posts like 8 Ques You Should Ask Home Loan Provider. This post is different and related to the behavioral aspect of a Borrower which is equally important. Unfortunately, Home Loan mistakes cannot be corrected in most of the cases. The reason being, there is a time pressure on a ... Read More