If you are already a 30-year-old non-smoker, and still do not hold a life insurance policy, then log on to a Human Life value Calculator immediately. The online tool will help you provide financial security to your family in your absence with the right amount. You can cover your life for Rs. 1 cr. for 30 years for less than Rs. 11,000 per annul (excluding Service tax).

The thumb rule is ineffective

A Human Life value Calculator finds out the exact life cover required by you. The thumb rule says that you should have an insurance cover of around 5-10 times of your annual income. Most of the Human Life Value Calculators are based on age, number of dependents, annual income and expenses, outstanding liabilities like home loan, car loan, investments/savings and lifestyle expenses, but forget to mark game changers -- rate of inflation and increasing rate of life expectancy. An HLV calculator needs to incorporate income from other sources, present values of investments and years you need to support your family and inflation rate too along with all the basic requirements.

Ride it away

No one plans to get sick or hurt, but in case of medical emergencies, nobody wants to impair their ability to earn by paying medical bills. You can maximize the benefits from a term insurance cover by adding riders (additional benefits) for covering you against critical illness or a serious accident? It’s a long term insurance policy where you will get tax-free ‘lump sum’- a one-off payment in case you are diagnosed with serious illness.

Riders are also available to cover your financial loss against partial/total disability and to cover your hospital stay (fixed amount per day of hospital stay).

So, what are you waiting for? Get on the task and get yourself some life even when you are not there. Live forever!

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Buying or selling land, house, commercial property etc. makes you liable for Capital Gains Tax.

You are exempt from this tax when you invest all your capital gains into a Capital Gain Bond. This exemption comes under Section 54 EC of the Income Tax Act.

Keep in mind though that you must invest in Capital Gain Bonds (India) within 6 months of your transaction, in order to be eligible for tax exemption.

The interest from Capital Gain Bonds India is taxable.

The interest that would come from the Capital Gain Tax Bond, that is taxable only, and not the entire transaction that caused the Capital Gain in the first place. This means that you saved substantially on Capital Gains Tax when you re-invested the gains in Capital Gain Bonds.

Capital Gain Bonds eligible under Section 54 EC are:

•    Rural Electrification Corporation Ltd. (RECL)

•    National Highways Authority of India (NHAI)

You can invest a maximum of Rs. 50 Lakhs in one or both of them in a financial year.

Each of these has the same features:

1.    Rate of Interest 6%, which is payable annually.

2.    Minimum Investment is Rs. 10,000/-.

3.    They are non-transferable Bonds.

4.    They are locked-in for 3 years. They are automatically redeemed after this lock-in period.

5.    They can be held in Demat or Physical form.

Good luck gaining on your capital with Capital Gain Bonds.

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