Day: February 18, 2019

Is Captive Insurance Right for Your Company?

Controlling the cost of your risk management is one of the best ways to reduce your overhead, but how can you control the cost of your insurance? The answer is captive insurance ownership. Captive insurers are owned wholly by the companies they insure, so they work for you. The best part? You don’t necessarily need to be able to afford to spin out your own insurance company to participate. There are plenty of ways to build a captive insurer cost-effectively.

How Does Captive Insurance Work?

There’s a whole captive insurance industry designed around facilitating your ability to participate in this innovative approach to business insurance. They help with the administration of your new business. The result is an easy to manage approach to a product that gives you a superior level of control over your business.

What Material Benefits Does Captive Insurance Bring?

It’s not just about more control over your risk management. When you use a captive insurer, you have the power to insure your business against risk where outside insurers don’t have a model for coverage. Even when that’s not the case, there are often significant tax savings to the use of captive insurance, and the structure of the subsidiary company means you’re not self-insuring, because the captive company is a separate entity. This also means your subsidiary does not necessarily have to be based in the same state or country as its parent company, providing you with more options to manage your tax obligations.

Learn More About Captive Insurance

The best way to learn more about this topic is to talk to an insurance company that works to help set businesses like yours up with their own captive insurers. They’ll be able to talk about how this kind of company fits your existing business model, as well as what material savings you can expect based on how your current insurance solution compares.

A simplified process on investing in best SIP plans online

Introduction

The abbreviation SIP stands for Systematic Investment Plan. This means that several investors get together and contribute to a mutual fund by depositing their respective amounts in a regular, systematic manner. This frequency can be weekly, monthly, or quarterly.  In order that you get very good returns from your mutual fund, it is essential that you do due diligence in finding out the right mutual fund and also contribute your share regularly. This article will guide you to invest in your SIP plan online. But why invest in a mutual fund online? Because data suggests that more and more number are discarding the old traditional route of filling forms and adopting the internet for their investment decisions.

Investing in best SIP plans online

  1. Identify your objective- Firstly, identify the reason behind your SIP investment decision. Do you want to accumulate enough money to fund your child’s education, or arrange funds for your daughter’s marriage? Are you considering buying a house? Once you have identified the objective, do some rough calculations and arrive at a ballpark figure for the funds needed.
  2. Becoming KYC compliant- It is necessary to supply one’s personal details online while applying for a mutual fund online. KYC means ‘Know Your Customer’ and every mutual fund would insist that you supply your details to it. These are your name, address, date of birth, Permanent Account Number, and documents that verify these details. You need to self-attest those documents and upload them on the portal of the mutual fund company. You may be visited upon by a representative of the company to ascertain your information.

You can also furnish your details by giving your Aadhar Card number to the website. By doing so, you will get a One Time Password on your mobile. Write that number in the required field on the form and you are done. Please note that giving Aadhar details is not mandatory.

Another thing that is important to be noted is that once you have submitted your KYC details online, you don’t have to repeat that process. Submit your details on Karvy, CAMS and a few other eKYC portals.

  1. Identify and then invest- Once you have submitted your details, the next step is to identify those mutual funds that fulfil your objectives. An important part of this activity is to discover your risk appetite. This means finding the level of your potential losses. It doesn’t mean that you will necessarily lose in the fund you chose; all we are saying is that there might be some losses in your investments and you should be prepared for them.

Once you have identified your best SIP plan, the next step is to start investing in it. If you can afford paying your contribution on a regular basis, then it is time you opted for that plan.

  1. How to buy mutual fund online? You can buy your SIP plan either directly or through a mutual fund advisor. Both of them have their own benefits.

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