Image Source: Dainik Bhaskar (05-April-2021)
Public Provident Fund: The Public Provident Fund is a savings-cum-tax-saving instrument in India, introduced by the National Savings Institute of the Ministry of Finance in 1968. The aim of the scheme is to mobilize small savings by offering an investment with reasonable returns combined with income tax benefits. The scheme is fully guaranteed by the Central Government. Balance in PPF account is not subject to attachment under any order or decree of the court. However, Income Tax & other Government authorities can attach the account for recovering tax dues. Public Provident Fund Scheme, 2019 introduced by the Government on 12 December 2019 and with the new scheme the earlier Public Provident Fund Scheme, 1968 as amended from time to time is rescinded.
MF-SIP: Systematic Investment Plan, commonly referred to as a SIP, allows you to invest a small sum regularly in your preferred mutual fund scheme. By activating a SIP, a fixed amount is deducted from your bank account every month, which gets invested in the mutual fund of your choice. Unlike a lump sum investment, you spread your investment over time with a SIP. Therefore, you don’t need to have a large amount of money to get started with your mutual fund investment through SIPs. By investing via a SIP, you are forced to set aside a sum at regular intervals, which help you instil a sense of financial discipline in the long run.
National Pension Scheme: The National Pension System (NPS) is a voluntary defined contribution pension system in India. National Pension System, like PPF and EPF, is an EEE (Exempt-Exempt-Exempt) instrument in India where the entire corpus escapes tax at maturity and the entire pension withdrawal amount is tax-free.
Health Insurance Cover: Health insurance is a type of insurance that covers the whole or a part of the risk of a person incurring medical expenses. As with other types of insurance is a risk among many individuals. By estimating the overall risk of health risk and health system expenses over the risk pool, an insurer can develop a routine finance structure, such as a monthly premium or payroll tax, to provide the money to pay for the health care benefits specified in the insurance agreement. The benefit is administered by a central organization, such as a government agency, private business, or not-for-profit entity.
Whole Life Insurance Coverage: A whole life insurance policy or permanent life insurance provides life coverage until the death of the life assured. The policy stays in force throughout life as long as the life assured pays the premium. The sum assured, or the coverage is decided at the time of policy purchase and is paid to the nominee at the time of death claim–when the life assured dies. Usually, the maturity age is 100 years. If the life assured dies before the age of 100 years, the nominee receives the sum assured. However, if the life assured outlives the age of 100 years, the insurance company pays the matured endowment coverage to the life insured.
Public Provident Fund: wikipedia.org
National Pension Scheme: wikipedia.org
Health Insurance: wikipedia.org
Whole Life Insurance Coverage: coverfox.com
Tags: Investment, Best Investment Tips | Investment Tips for beginners | Investment Tips in Hindi | Investment Tips for Students | Investment Options in India | High Return Investment in India | PPF | Public Provident Fund | SIP | MF-SIP | National Pension Scheme | Health Insurance | Whole Life Insurance Coverage