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Thursday, December 1, 2022
Financial Checklist to Keep in Mind When Approaching the Year 2023
New year is just around the corner. Exciting times ahead but also the time to learn from the year bygone and buckle up for the new financial year. Here are a couple of pointers to bear in mind as you enter into the new year 2023!
Do you believe in creating checklists? We sure do! They help you stay on track and also move closer towards achieving or realizing your goals, regardless of what they may be. The same holds true for creating a checklist for your finances – a to-do plan that helps you set realistic goals and define new ways to achieve them every single day. Speaking of lists, there sure is one that needs to be created for the coming financial year 2023. Here are some planning tips that we created and intend to follow in the New Year to create a better financial future for all.
Stay with us if you want to learn more about what these planning tips are and why you should bear them in mind when approaching 2023.
Table of Content
How Does a Financial Checklist Help?
Well, the whole idea of creating a checklist revolves around the basic premise that you don’t want to forget something that is important. This is exactly why you create a checklist, mentioning the various tasks you intend to do in the near future, which are obviously important and must be dealt with at the earliest. As you keep finishing those tasks, you keep checking or ticking them off your list, feeling proud of having accomplished those tasks.
So yes, creating a checklist does help – whether it is for planning a trip next month or just planning your finances for the next year. Both these situations demand your attention and you don’t want to forget anything important related to them. Thus you create a checklist. But how to create a financial checklist and how does it help? Let’s look at it in detail below.
How to Create a Financial Checklist for 2023?
If you’re a financially aware person, then you already know the importance of year end planning for every financial investor. We don’t need to remind you of its importance. Planning for the new year, as the current year draws to a close, gives you ample scope to reflect on the incidents that just went by in the current financial year and also to understand what worked for you and what didn’t.
Were you able to achieve all of your financial goals for 2022? Did all of your investments bear decent returns? Are you overall satisfied with your financial performance for the financial year gone by? These are questions that demand some of your time and attention at the end of 2022, thereby invoking enough interest to create a financial checklist for the new year 2023. So let’s begin.
As you sit down reflecting on the bygones, pumped up enough to not repeat the same mistakes this year, here are some financial tips that can help. These financial planning tips would help you stay on track to achieve whatever goals you set for the new financial year. Here we list out just some of them that come to mind (feel free to add any more as may be relevant to your financial needs and/or goals for the year 2023).
Read More: 4 Types of Insurance That Protect You Financially
What to Keep in Mind While Creating a Financial Checklist for 2023?
Of course, and this goes without saying, that the very first inference to draw from while creating a new financial checklist has to be from your investment ideas 2022 – how successful they were or weren’t. It’s not necessary that all ideas work at all times and it is absolutely fine to learn and grow as you move along your financial planning journey.
But just to help you get started, let’s begin with the premise that it is always helpful to secure your financial future as well as that of your family and loved ones every financial year. Why should 2023 be any different then? Here we present some financial planning strategies that you can bear in mind while creating a checklist of financial goals for 2023 for you and your family:
- Set your goals right: They are the starting point of your financial planning journey for 2023 so you have to make sure that they are well defined. Your financial goals for the new year could range anywhere between educational expenses for children and healthcare expenses for the family. Or, they could be some debt payoffs, carried forward from 2022. Whatever may be your financial goals, list them out properly in your checklist.
- Review your insurance plans for the whole family: This should be the next important task on your financial checklist for 2023. When defining your financial objectives for the year, you’d realize that there are a couple of expenditures that would inevitably line up throughout the year. Running a family and house means expenses. And you don’t want to burn a hole in your pocket. So it only makes sense to review your insurance cover for the whole year for you and all your family members.
This would mean health insurance for yourself, your spouse, kids, and parents (if applicable). In addition to buying mediclaim for the family, it is equally important to prepare for any uncertainties that might hit anytime. This is where a term insurance plan comes into play, securing the life and future of your loved ones in your absence.
3. Make regular investments in savings plans: Saving is a good habit and inculcating it as a regular discipline in your life in the new year is a great idea. This is why we highly recommend making room for small savings plans in 2023 to invest in so that you can gradually build a corpus of wealth for a secure future for yourself and your family.
You can check PayBima for a number of savings and investment plans to start your investing journey in 2023!
To Conclude
Based on the learnings of 2022, it’s time to set foot in 2023 with a bang. Keep your pen and paper ready, create a financial checklist that you deem appropriate, and get started on your financial planning journey for the year. We at PayBima are here to help you at every step of this process. Feel free to reach out to one of our representatives!
Found this post informational? Browse PayBima Blogs to read interesting posts related to Health Insurance, Car Insurance, Bike Insurance, Term Life Insurance and Investment section. You can visit PayBima to Buy Insurance Online.
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Various Insurance Types in India and Their Tax Benefits
Insurance is one of the significant as well as critical aspects that everyone should know and understand. If you are unsure about the various types of insurance available and their tax benefits, read on to know more.
Insurance acts as a security against the unexpected situations in life which financially disrupts the well being of a family. Thus, people prefer to purchase life insurance, term insurance and other types of insurance to avoid monetary crises and to secure their families. There is a wide gamut of policies that are available under life insurance plans that we will discuss below. Besides life insurance, there are several other types of policies such as health insurance, vehicle insurance, home insurance etc. which come under the category of General Insurances. These policies offer all-inclusive financial support to the insured as well as his/her family members.
Whichever insurance plan you may purchase, the crucial thing is to understand all the relevant details of a plan to be able to choose the best one to suit your needs. In this post, we are discussing the various types of insurance policies that are available and their tax benefits in India.
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What is Insurance? How Many Types of Insurance Are There?
Insurance is like an agreement between two parties – the one buying a policy and the insurance company selling the policy. The agreement specifies financial coverage by the insurer to the insured against unforeseen events in return of an amount called, ‘Premium’.
There are two different types of Insurance policies available in India including General Insurance and Life Insurance. They are further subdivided into other categories as mentioned in the table below:
| Type of General Insurances | Types of Life Insurances |
| – Health Insurance |
|
| – Motor Insurance |
|
| – Home Insurance |
|
| – Fire Insurance |
|
| – Travel Insurance |
|
|
Let us understand the various types of insurance policies in details below:
General Insurance
General insurances are the policies that do not come under the domain of life insurance. These insurances offer financial coverage against losses incurred by the policyholder on various things other than life of the insured. On the whole, general insurance consists of various types of insurance policies which offer monetary security against losses sustained by liabilities like your vehicle, home, your health, etc. Let us discuss the various general insurance types one by one now.
Here are the various general insurance categories:
1. Health Insurance – Health insurance caters to the health needs of individuals. A health insurance policy covers the costs incurred by a policyholder on healthcare. A health plan pays the policyholder the cost of treatment incurred for a medical condition via two ways, reimbursement policy and cashless policy.
A health insurance policy covers different medical expenses, such as;
-
-
- Cost of Hospitalization
- Cost of treatment against critical illnesses
- Pre and post hospitalization medical costs
- Daycare procedure costs etc.
-
In India, there are different plans of health insurance that are available such as;
-
- Individual Health Insurance
- Family Floater Insurance
- Critical Illness Insurance
- Senior Citizen Health Insurance
- Group Health Insurance
- Maternity Health Insurance
- Personal Accident Insurance
Individual Health Insurance provides coverage to an individual or a single person, while a Family Floater Insurance provides coverage to all family members within one plan. A Critical Illness insurance provides coverage against critical diseases such as cardiovascular diseases, cancer, stroke, kidney failure, etc., while Senior Citizen Health Insurance cater to individuals of 60 years and beyond.
Group Health Insurances are normally offered by company/employer to their workers/employee. On the other hand, Maternity Health Insurance covers the expenses for delivery charges, pre and post-natal costs and protects the mother and baby. Similarly, Personal Accident Insurance covers injuries, disability and other financial liabilities like death brought upon by accidents.
2. Motor Insurance- A Motor insurance allows financial security in the event of an accident involving your vehicle. Different kinds of vehicle insurance policies available are namely; Car Insurance, Bike Insurance, and Commercial Vehicle Insurance.
A Car Insurance policy offers protection to your individually owned four-wheeler vehicle, whereas a Bike Insurance covers your individually owned two-wheelers against accidents. On the other hand, a Commercial motor Insurance provides coverage to commercial vehicles.
3. Home Insurance- A home insurance plan protects your home and its contents against damage done by men as well as natural calamities. Home insurance policies are further categorized into – Building Insurance, Standard Fire insurance, Public Liability insurance, Personal Accident insurance, Theft Insurance, Contents Insurance, Tenants’ Insurance, Landlords’ insurance etc.
4. Fire Insurance- As the name signifies, Fire insurance plans compensate against losses incurred because of fire. They cover both companies as well as individuals. Various kinds of fire insurance include Valued policy, Specific Policy, Floating Policy, Consequential Policy, Replacement Policy and all-inclusive Fire insurance policy.
5. Travel Insurance- Travel insurance policies cover the insured as well as his/her loved ones during their travels in India or abroad. This insurance ensures a safe journey to the insured. It also covers issues like flight cancellations, medical emergencies, loss of baggage, passport etc.
Among the various policies of travel insurance are – International Travel Insurance, Senior Citizen Travel Insurance, Individual Travel Insurance, Family Travel Insurance, Domestic Travel Insurance, Student Travel Insurance etc.
Life Insurances
The second category in insurance is Life Insurance policies, which also include a range of covers. Individuals buy Life Insurance policies to get coverage against untoward events such as death or any kind of disability (permanent or temporary). There are several types of life insurance policies in India which offer financial protection to policyholders as well as capitalize on their savings. If you want to secure your family members against future financial turmoil, investing in life insurance is a wise decision.
There are various kinds of Life insurance policies available as mentioned below:
- Endowment Plans
- Term Life Insurance
- Unit-Linked Insurance Plans
- Whole Life Insurance
- Pension Plans
- Child Plans
1. Term Life Insurance Plans- Among the various types of insurance policies, Term Insurance is the most affordable one. Also known as Pure life insurance, the policyholder of a term plan can select a life cover of a specific sum assured and a particular tenure. If anything unfortunate happens to the policyholder during the tenure of the policy, the insurer offers the insured sum as death benefit to the nominee of the policy.
2. Whole Life Insurance Plans- These are traditional plans of life insurance. The whole life insurance plans cover the insured for his/her entire life. Further, whole life insurances serve the dual purpose of death benefit as well as offering a saving option for the insured. These policies are available with a maturity age of 100 years, beyond which they become matured endowment plans.
Read More: Types of Whole Life Insurance Policy and Their Advantages
3. Endowment Plans- Endowment plans also offer monetary coverage to investors against unfortunate situations in life along with allowing them the option to save enough money for the future. Policyholders of an endowment plan can accumulate a corpus amount in case the person outlives the policy beyond maturity. In case the insured dies during the term of the policy, the beneficiary receives the total sum assured amount.
4. Unit-Linked Insurance Plan (ULIP) –Like endowment plans, Unit Linked Insurance Plans or ULIPs also offer investment as well as insurance benefits to the insured. Under ULIP, a part of the premium paid by the insured is invested in a variety of financial instruments depending on the risk appetite of the policyholder, while the rest of the amount is dedicated towards life cover.
5. Child Plans- Child plans are insurance policies which secure a child’s life financially to help attain goals like higher education, marriage etc. Child plans are a good combination of insurance and savings and they benefit in planning your children’s future.
6. Pension Plans- Pension plans or retirement plans are investment policies that support an individual to accumulate savings over a period of time. The savings help the insured to deal with various financial uncertainties after retirement. So, you accumulate money in a pension plan during your working years, which you get back as annuity after you are retired.
Tax Benefits Available under Different Insurance Types in India
Various types of life insurance plans allow tax benefit on the premium paid. Section 80C of Income tax allows tax deduction of up to INR 1.5 lakh on premium of life insurance plans. Similarly, section 80D allows tax deduction on health insurance up to Rs 25,000 for policyholder, spouse and children along with an additional INR 25,000 for parents (below 60 years). Tax deductions can go up to INR 1 lakh for senior citizens.
Conclusion
You are now aware of the various insurance plans in India as discussed above. Most insurance policies also allow tax deductions. However, it is important to read and understand the policies well before investing in them.
Found this post informational? Browse PayBima Blogs to read interesting posts related to Health Insurance, Car Insurance, Bike Insurance, Term Life Insurance and Investment section. You can visit PayBima to Buy Insurance Online.
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