Medical emergencies come without warning, disrupting even the most carefully laid financial plans. While health insurance provides crucial coverage, it may not cover all expenses and/or certain hospitals may be outside your insurance network. In such situations, a personal loan can provide you with quick and flexible financial support, helping you manage urgent medical costs without delay.

Here is a brief regarding the key features and advantages of personal loans to help you make informed decisions for managing medical emergencies.

Quicker loan processing and disbursals

Increasing adoption of digital onboarding has made it easier for many banks and NBFCs to disburse personal loans on the same day as the application. Most lenders now offer instant personal loans through fully digital and paperless application process, enabling borrowers to meet their medical expenses quickly and with minimal hassle. For example, HDFC Bank claims to disburse pre-approved instant personal loans to its pre-approved customers in 10 seconds.

Minimal to no documentation

Individuals are usually required to submit their identity-, income- and residence-related documents for availing personal loan. The documentation process is even simpler for pre-approved personal loans, with little to no additional paperwork. This makes personal loans a convenient option for dealing with health care emergencies, especially when quicker turnaround time is critical. For instance, SBI offers preapproved personal loan of up to Rs 15 lakhs through its YONO app to its select account holders without any physical documentation.

Flexible repayment tenure

Personal loans provide flexible repayment options, giving you the time to manage medical emergencies and make repayments through easy EMIs. Lenders usually offer personal loan tenures of up to 5 years. However, some lenders offer longer repayment periods of 6 years and 7 years. For example, ICICI Bank offers personal loans with repayment tenures of up to 6 years while Canara Bank allows loan tenures of up to 7 years.

Longer repayment tenures reduce the EMI, which makes it easier for the borrowers to manage their EMIs and thereby, reduces the chances of default. However, longer repayment tenures lead to higher interest costs. Similarly, choosing shorter loan tenures helps you pay off the loan faster through bigger EMIs but reduces the total interest cost. Thus, borrowers should always choose their personal loan tenure after factoring in  their repayment capacity.

To make an informed decision, one can use Personal Loan EMI calculators available on the lender’s website or on online financial platforms like Paisabazaar. This will allow you to estimate your EMIs in advance and better manage your finances.

No requirement of collateral

Being unsecured in nature, personal loans do not have any collateral requirements. Lenders evaluate your application based on various factors, such as your monthly income, occupation, credit score and employer’s profile. This makes personal loans a preferred option for borrowers who need quick access to funds without having to offer any security or collateral.

Cheaper than credit cards

If you are considering to use a credit card to pay your medical bills or withdraw cash, it’s important to compare the credit cost of credit cards and personal loans. Dealing your medical emergencies through credit card payment would incur no additional cost as long as the dues are paid off by their bill due dates. However, if left unpaid, credit card transactions incur interest cost of 40% p.a. or higher. Cash withdrawals through credit cards would incur similar interest cost but right from the date of transaction, irrespective of the repayment of bills, along with an additional cash withdrawal fee of about 2% of the withdrawn amount.

In the case of personal loan interest rates usually start from 10.50% p.a., with some public sector lenders charging even lower rates.

While credit card EMI options or loans against credit cards may have lower interest rates than the finance charges levied on unpaid credit card balances, the interest rates of personal loans are usually a bit lower than the credit card EMIs or credit card loans.

Thus, if you are confident of your ability to repay your credit card dues by their due dates, then using your credit card for medical emergencies could be a better option. Else avail a personal loan to deal with medical emergencies

Have you ever wondered what the biggest tax mistake businesses make is? It’s not fraud or late payments—it is poor tax accounting practices that lead to costly mistakes and missed opportunities. These mistakes can put businesses at risk of penalties and financial instability. That’s why every small or large business must manage taxes efficiently to stay compliant and financially secure. This is where ACCA Strategic Professional expertise becomes invaluable, helping businesses confidently navigate complex tax practices with confidence.

Let’s break down the essential Tax Accounting practices every business should follow to ensure smooth management.

Essential Tax Accounting Practices for Business Success

Mastering tax accounting is crucial for businesses to stay compliant, avoid penalties, and optimise financial planning. Below are the key tax accounting practices every business should follow to ensure smooth tax management and long-term success:

1.Keep Accurate Financial Records

Keeping correct financial records is one of the most basic components of tax accounting. All transactions—including income, spending, and deductions—must be meticulously recorded to guarantee accurate tax computations. Poor bookkeeping can result in mistakes, incorrect computations, and possible tax penalties. Companies that don’t keep accurate records risk audits or tax issues.

Businesses should methodically arrange all financial papers, invoices, and receipts to avoid such problems. Accounting software can make tracking transactions easier and guarantee that profit-and-loss accounts comply with tax laws. A systematic record-keeping approach reduces noncompliance risks and makes tax filing easier.

2.Understand Your Business’s Tax Obligations

Distinct business structures have distinct tax duties, and knowing which taxes your company is subject to is important. Business profits are subject to corporation tax, and knowing the various deductions can help lower tax obligations. A business must register for VAT and charge it correctly if it exceeds the VAT or Value-Added Tax threshold.

Employers must also deduct income tax and National Insurance contributions from employees’ pay cheques to comply with PAYE or Pay As You Earn requirements. Noncompliance with tax responsibilities may result in serious penalties. Keeping up with tax regulations guarantees seamless operations and assists companies in avoiding needless legal and financial repercussions.

3.Separate Personal and Business Finances

Combining personal and corporate finances can present serious difficulties regarding tax filing. Maintaining financial segregation makes it possible to precisely manage business-related spending and correctly claim tax deductions. Creating a company bank account helps keep transactions transparent and prevents misunderstandings.

Keeping a business credit card makes tracking payroll and investment-related costs easier. Properly separating corporate funds prevents mistakes that could lead to tax audits and increases the efficiency of tax filing.

4.Plan for Tax Payments in Advance

Tax liabilities can become a financial problem if businesses do not plan ahead. Setting aside money for tax responsibilities throughout the year guarantees on-time payments and prevents financial hardship. Businesses should anticipate their tax obligations early in the year to make appropriate plans.

A tax reserve account may be useful for paying off outstanding balances without interfering with cash flow. Quarterly tax payment plans may also be available to some businesses, which help manage tax bills in modest instalments rather than confronting a massive, unexpected charge at the end of the fiscal year.

5.Claim All Eligible Tax Deductions

Many businesses miss out on possible tax savings as they are unaware of their eligible deductions. Office rent, utilities, travel expenses, and equipment purchases are common deductible expenses. Professional development is a financially advantageous approach since team training expenditures may also be tax deductible.

Research and Development and R&D- related businesses may be eligible for tax breaks, drastically reducing their tax liability. Businesses can maximise their deductions while adhering to tax restrictions by routinely examining tax legislation and seeking advice from a qualified accountant.

6.Stay Updated on Tax Law Changes

Businesses must stay informed about the latest changes to tax laws, which occur frequently. Failure to follow new tax laws may result in fines or lost tax-saving opportunities. To stay informed, businesses should attend tax accounting webinars, subscribe to official government updates, and maintain relationships with professionals in the field.

Working with accounting experts specialising in corporate tax laws can help companies negotiate complicated tax requirements and maintain compliance.

7.Seek Professional Guidance When Needed

Even if businesses have a firm grasp of tax accounting, they may still need professional guidance to prevent expensive mistakes. Expert tax accountants can guarantee proper tax returns, help find ways to reduce taxes and offer advice on intricate tax issues, including cross-border transactions.

Since tax reporting mistakes can have serious financial repercussions, getting expert help guarantees that companies maintain compliance while maximising their tax strategy. Additionally, having a trustworthy tax professional on board helps ease businesses’ minds and free them up to concentrate on expansion rather than tax issues.

Conclusion

Effective tax accounting is essential for maintaining compliance, reducing liabilities, and ensuring financial stability. By following these key practices, businesses can avoid penalties and simplify tax management. Staying informed about tax regulations and seeking expert guidance can make a significant difference.

MPES Learning provides valuable resources to help professionals enhance their tax knowledge and confidently navigate business taxation

The capacity for people to work hard declines with age as physical capability starts to wane. However, the need to provide for oneself and the family remains.

To ensure that you keep earning after your retirement, put your savings to use with a retirement plan. Mutual Funds are a good option to serve this goal. You can start saving with SIPs and then proceed to SWPs to ensure regular income.

Further, a Systematic Withdrawal Plan Calculator can assess your returns for accuracy in financial planning.

Getting Started on Retirement Plans

As active as you are now, once you are over 60, all you will want is to complete your bucket list and have a peaceful life. The best way to do both is to have a significant nest egg that allows you to spend when needed while keeping your finances well-managed.

Planning for retirement calls for a disposable income. While you can start planning as soon as you start earning, most do it when they have some extent of financial flexibility and tolerance.

Further, you will also need to chart out your financial goals, how much financial risk you can take, and the amount of liquidity you need to maintain while investing.

Investing after 40: options to evaluate

Though there is no hard and fast rule that you have to start investing at 40, this is the average age of Indians getting started on retirement plans. The biggest reason is that our disposable income at 40 is fairly high. This increases our risk tolerance.

People tend to use the following tools to grow their funds:

●Gold and Real Estate

Fixed assets whose value appreciate over time, this was one of the more popular methods of investing. However, with time and an increase in market rates, this method has become hard to avail for those with limited disposable income.

●Stocks and Bonds

These involve investing directly in the financial market. Though high risk, they also tend to promise high returns. However, investing in these involves proper market research and a certain level of expertise.

●PPFs and FDs

Held with official bodies like the EPFO or banks, these offer safe investments. However, it must be noted that the rate of return on these is fairly low.

●Mutual Funds SIP

With small regular investments, SIP builds your wealth by compounding the invested amount with the help of Mutual Funds.

●Mutual Funds SWP

Though similar to SIPs, the Mutual Fund SWPs have an added advantage. They allow you to draw small amounts from your investment and offer more financial flexibility.

Further, online tools like a Systematic Withdrawal Plan Calculator for Mutual Funds can help investors understand the risk vs reward of their investment plans.

Systematic Withdrawal Plan: the Mutual Fund Option for Retirees

While there are multiple options to build your nest egg when you are earning, everyone needs a source of income after they retire. Thus, an investment that offers a small regular payout serves as an ideal situation.

To meet this demand, the Systematic Withdrawal Plan for Mutual Funds was designed. Catering to those who already have a certain amount of savings but low disposable income, SWPs offer regular payouts. This makes it the best option for retirees.

Using a Systematic Withdrawal Plan Calculator you can calculate the amount of returns that you can get from your investment.

Things to Know

When opting for a Mutual Funds SWP, there are certain things to keep in mind:

• You must have significant savings to avoid depleting them.
• You should diversify your investments to ensure capital generation.
• All investments yield based on market risk.
• Seek expert advice to evaluate your risk-taking capability and the best investment route.

Exploring the Benefits of SWP

With Systematic Withdrawal Plans, you enjoy the following:

• A steady income source.
• Better management of market volatility due to steady withdrawals.
• Financial flexibility to investors.
• Lowered tax liability.

Using the Systematic Withdrawal Plan (SWP) Calculator

A mathematical tool, the Systematic Withdrawal Plan Calculator calculates your expected returns with the help of the below formula:

A = PMT ((1+r/n)^nt – 1) / (r/n)

A → The expected amount you intend to receive

PMT → The withdrawal amount

r → The rate of return per year (or period)

n→ Number of compounding taking place per year (or period)

t → Period of investment

Though returns may vary with market conditions, the Systematic Withdrawal Plan Calculator makes a fairly accurate assessment to ensure that you make a well-informed choice.

Evaluating Risk vs Rewards for Your Retirement Plans

Once you start researching investment options, you will find a number of plans. However, investors need to choose wisely based on their financial goals. One of the easiest options for a retirement plan is opting for Mutual Funds SWPs.

If you have already retired, SWPs offer steady withdrawals that serve as your earnings without depleting your savings. For late investors, SWPs can help meet simultaneous financial needs as well as save for the future.

With a little help from a Systematic Withdrawal Plan Calculator, investors can learn how much they stand to gain. This helps them ensure accuracy in financial planning, especially for their retirement.

Building a Retirement Plan with Mutual Funds

A moderate-risk yet high-reward investment tool, Mutual Funds are the top choice for many. Further, it allows various modes of investing to cater to investors from all walks of life.

While options like SIP can help grow your investment easily at an early stage, SWPs offer financial flexibility to investors. Though the option for withdrawals is available, ensure that this does not deplete your actual investment for maximum returns.

Use a Systematic Withdrawal Plan Calculator to evaluate your returns, make considerations for market risk, and start investing today to enjoy a peaceful retirement.

Term insurance is crucial for those above the age of 50, particularly those looking to financially secure their futures. While many may feel that life insurance is more suited for younger individuals, multiple insurers offer options tailored for seniors as well. These plans ensure financial protection for loved ones and peace of mind for the insured. To make informed decisions, using a term insurance calculator can help estimate premiums and coverage, ensuring the chosen plan fits your needs. Here is a guide to the best term insurance plan in India for senior citizens and all other necessary modalities.

1.Why Term Insurance for Senior Citizens?

Seniors over the age of 50 will find term insurance useful for the future security of their families, if and when they are not around anymore.

Term insurance has another purpose for senior citizens, which includes providing a one-time lump-sum amount to the beneficiaries covering outstanding loans, or even upholding the current lifestyle of the family. Unlike investment-linked policies, these plans are highly affordable and provide only pure life coverage.

2.Features of the Best Term Insurance Plans for Seniors

1. a) Extended Age Cover

The best term insurance plans in India can give you extended coverage till 75 years of age and, in rare cases, up to the age of 85. Thus, it ensures safety for a longer duration without any hassles. This extended cover is essential for senior citizens who need financial protection during their retirement years.

1. b) Affordable Premiums

Although the premium for senior citizens is much higher compared to other age groups, some insurers still offer competitively reasonably priced policies. A careful comparison can allow one to have a reasonably priced term insurance plan in India.

1. c) Critical Illness Add-Ons

Health risks are comparatively higher for those who are older. Some term plans will give you options to add riders to your policy. These ensure added financial support in a variety of situations, right from being diagnosed with critical ailments to suffering from a disability arising due to an accident.

1. d) Easy Application

A few insurance companies offer plans for seniors with simplified medical underwriting. However, many plans still require medical tests, especially for higher sum assured amounts. This makes buying a policy slightly more challenging for some individuals.

3. Best Plans for Senior Citizens in India

The selection of term insurance is majorly based on what exactly one evaluates and compares in a market. Therefore, here are some key areas:

• Sum Assured: The coverage amount should be sufficient to take care of your family’s needs, including debts and daily expenses.
• Affordability of premium: Find a policy that provides the right balance between the benefits and premiums. Often, annual premium options provide ease of budgeting.
• Claim Settlement Ratio: While this ratio ensures seamless processing of claims made by your family in the future and gives an overall idea of an insurer’s performance, it is advisable to also review their specific claim handling process for term insurance plans.
• Medical Requirements: Most policies for seniors insist on medical tests, but some plans may waive these for lower coverage amounts.

4.Key Advantages of Term Insurance Plans for Senior Citizens

• Financial Independence: This keeps your family from turning financially dependent immediately after your demise.
• Tax Benefit: Premiums for term insurance are allowed as a deduction under Section 80C of the Income Tax Act, subject to the overall limit of ₹1.5 lakh for eligible investments
• Peace of Mind: It comforts your mind to know that your family is well taken care of financially during your retirement years should you pass away.

Having increasingly growing stakes and a fast-paced world today, the whole world is different for those Millennials is, the lot of people who were born between 1981 and 1996- and pose unique opportunities as well as challenges. The millennial generation experiences a lot more rising financial burdens in their peak earning years from home loans and education costs yet have such a great worry about their financial future. Of all types of financial products, 1 crore term insurance plans seem to be the favourites of Millennials.

Term insurance is also gaining popularity because it is affordable and easy; however, most in this generation prefer term life policies, especially in the aim to ensure family’s financial security but keep their premium prices under control.

Increasing Need for Security Over Money

Millennials are more conscious about their finances than any generation ever to have appeared before them. The growing awareness about securing the future of their family further coupled with a rising sense of responsibility towards dependents has made several millennials consider options for life insurance.

Term insurance is therefore a simple, cost-effective way to address the above issues. The attraction for a 1 Crore term insurance would be that this can provide handsome coverage at not too high an annual premium; hence, such a plan attracts people who do not want their family’s future to be unsafe and yet they cannot afford higher premiums.

Along with this, they are facing the rising cost of living, education, housing, and healthcare. All these have advanced the argument in favour of a life insurance policy that will offer some kind of protection in case things go awry. With a sum assured of 1 Crore, it is assured that the family would not lose out on their lifestyle and standard of living.

Affordable Yet Extensive Coverage: A Win-Win Proposition

Easily the biggest draw for 1 Crore term insurance is the fact that it is quite affordable. The whole life policy or the endowment policy would cost a fraction of that premium of term insurance and will provide immensely higher cover. For example, many millennials have a minimum income to pay high premiums and at the same time feel secure about their family’s future.

Term insurance will be purchased at the beginning of careers by Millennials as the premiums are quite low for a younger person. For example, if a healthy 30-year-old Millennial buys a 1 Crore term insurance policy, the price will be much cheaper compared to what that person will have to pay for it at an older age.

Raising Life Insurance Awareness

With the increased awareness campaigns, financial education, and fast-paced growth of digital tools, today’s Millennials are attuned to how important life insurance is. Most understand the idea of “financial independence,” and real financial protection should something unfortunate happen. The tech-savvy millennials made extensive use of the World Wide Web in comparison to insurance policies. They even showed interest in life insurance, which is how much buying should one have.

Among the resources available for Millennials today is the term insurance calculator, which is an online calculator that enables people to estimate how much coverage they approximately require based on income, liabilities, family size, and more. In this manner, they are better able to comprehend and decide on coverage that better meets their actual needs.

Financial Planning and Long-Term Vision

The other reason that resonates with Millennials when it comes to a 1 Crore cover for term insurance is that it ties up well with the financial planning approach that Millennials seem, by and large, to favour long-term, goal-driven. Most of these Millennials are more inclined to think ahead and plan well for their immediate and future needs than previous generations.

It fits into that because, other than the amount paid to family members on death, it would also serve as a kind of pocket sponge during a crisis. This is precisely why most Millennials are craving for that 1 Crore coverage is good enough as liability cover and provides them with a comforting thought that this will cushion their families should something happen.

Protection From Higher Debt Burden

In this modern-day world, no day goes without pressure for huge debt burdens by millennials, specifically student loans, home mortgages, and car loans. Most Millennial graduates go into adulthood burdened with great student loans while most enter their 20s or 30s still servicing mortgages and car loans.

If sufficient insurance is not there, then this would leave debts for the dear ones to bear. A term insurance plan usually ranges from Rs 1 Crore that can liquidate loans such that dependents do not face vulnerabilities when the tough times come around. This ability to avoid escalating debt is perhaps the most influential factor for Millennial choosing term insurance as their solution.

Millennial Interest in Digital-based Solutions

The millennials are the first generation of digitals, and they want everything to be convenient, transparent, and fast. The insurance industry has adapted to these preferences by offering fully digital processes for purchasing term insurance policies. Millennials are increasingly turning to online platforms to compare policies, read reviews, and apply for coverage from the comfort of their homes.

It is highly attractive for tech-savvy millennials given the fact that it is so easy to buy a 1 Crore term insurance online and track and manage policies online as well. Further, it has been made attractive by using a term insurance calculator to ascertain the exact amount of coverage they would require.

Flexibility and Customization

Among the top reasons for 1 Crore term insurance policy trends among the Millennials, flexibility is at the top of the list. A large majority of term insurance policies enable customisation of one’s cover by including riders on critical illness, accidental death, and more.

In this generation, where financial security no longer only lies in protection after death but also in the management of health crises, 1 Crore term insurance plans have become that much more alluring with their flexibility to tailor life insurance policies.

Conclusion: A Smart and Practical Choice for Millennials

It’s not a trend, but changing finance mindsets of the Millennials are making them choose a 1 crore term insurance policy. Whether it is financial security for their families or protection from growing debts, more and more people are finding that term insurance offers a smart, practical, and affordable way to secure their future.

Affordability of 1 Crore plans, high sum assured, term insurance calculators, and many more tools such as term assurance calculators make it possible for millennials to maintain their existing financial goals and achieve all their long-term aspirations at the same time. Such a world cannot put a number to the value placed in securing the financial futures of a family; therefore, for Millennials, the perfect solution indeed is a 1 Crore Term Insurance plan