July 18, 2024

Why Shouldn’t You Stop Paying Your Life Insurance Premium?

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Do you believe that life insurance plans are intended to squander your money? Hold there before you consider cancelling one because, in this two-minute read, we have debunked every myth.

Ravi, a buddy’s friend, had obtained a life insurance policy. He has now utilised this policy as collateral for the repayment of his home loan and other debts. But, he later got an unexpectedly sizable sum from inherited property and had already paid off all of his debt. Although having paid back the loan, he still needs to cancel the life insurance coverage. He kept the coverage since he had two children who attended school and wanted both life and income protection.

A life insurance calculator is a tool you may use online to determine the amount of coverage required based on your needs.


Do not revoke a life insurance policy

Even though the goal has changed, life insurance will continue to provide Ravi’s family with additional financial protection in light of the uncertain future. In other words, cancelling a life insurance policy does not really make sense if you are raising a family and have people who depend on you financially.

You shouldn’t terminate your life insurance policy for the following reasons:

  1. To meet the financial necessities of your family’s future

The spouse, children, ageing parents, and any other family members would depend on the family breadwinner’s income and resources even after their death. When a regular source of income is lost, the family may have to make sacrifices in order to meet their basic necessities. One such product that aims to offer security and promote financial stability in the event of unfavourable income is insurance.

  1. Surrender fees may negatively affect your budget

Life insurance premiums can be the first thing that comes to mind when you’re trying to reduce your spending. It is absolutely a terrible idea to temporarily reduce the premium cost by cancelling the life insurance plan in the hopes of purchasing a new plan down the road. You might have to pay a hefty price for the same policy with equivalent coverage in the future. If an unforeseen disease is diagnosed, you may be unable to acquire coverage.

  1. To save some money on income taxes

Section 80C of the Income Tax Act of 1961 allows for the tax deduction of annual insurance premium payments. Simply put, cancelling the policy means that no additional life insurance premiums will be paid for it and that the insurer will not provide life insurance coverage.

This bonus will be forfeited if you cancel the policy. Unlike other investment options, life insurance policies such as endowment and unit-linked insurance plans provide you with tax-efficient returns. You cannot get a good tax return if you stop paying the premium in the middle and cancel the coverage. Life insurance is still required as a tax-saving measure, even if you are wealthy.

  1. For mental tranquilly

You may live without anxiety, thanks to insurance. Your long-term financial needs are met by an insurance policy, depending on your selected coverage. Also, because life insurance policies can be used as collateral for loans, they can assist you with your immediate needs. Several financial alternatives are also available through life insurance coverage. At an additional fee, it offers additional riders, such as critical illness, accidental disability, etc. You can plan for your children’s future very organised and methodically with the help of certain life insurance plans, such as child and endowment plans.

  1. The cost of new coverage may increase

You will forfeit the coverage you have paid for when you surrender your life insurance policy. If you need to get the same policy in the future, it can be more expensive because life insurance costs rise with age. If you still think that your life insurance is a burden on you, use all the flexibility supplied by the life insurance company. The life insurance coverage does not have to be cancelled. You don’t have many other options.

  1. Modify the premium payment method

If the annual premium is too much for you to afford, speak with your insurance provider about changing the payment schedule to monthly or quarterly. By doing this, you can get through a challenging moment.

  1. Release the riders

If your policy has any riders or add-ons for which you are paying extra and are not actually necessary for you, you can lower your premium by removing them from the package. Always mind that riders should be picked just as per your demand. Never purchase one just because your friend or your friend’s friend chose to. ##

A life insurance calculator is an easy-to-use tool to check the amount of premium you would have to pay.

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Understanding the Conveyancing Process: A Step-by-Step Guide

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Conveyancing is the legal process of transferring property ownership from one person to another. It involves a number of steps and can be quite complex, especially for first-time buyers. In this article, we’ll walk you through the conveyancing process step-by-step, so you know what to expect when buying or selling a property.

Step 1: Instruction

The first step in the conveyancing process is to instruct a conveyancer. A conveyancer is a qualified legal professional who specializes in property law and will help you with the legal aspects of buying or selling a property. Once you’ve found a conveyancer you’re happy with, you’ll need to provide them with details of the property and any other relevant information, such as your mortgage lender details if you’re buying a property.

Step 2: Contract Drafting

Your conveyancer will then draft a contract of sale, which sets out the terms of the transaction. This will include the purchase price, any special conditions, and a settlement date. They will also carry out any necessary property searches to ensure there are no issues with the property that may affect the sale.

Step 3: Exchange of Contracts

Once both parties have agreed to the terms of the contract, they will sign it and exchange contracts. At this point, the buyer will usually pay a deposit, which is usually 10% of the purchase price, to the seller’s conveyancer.

Step 4: Completion

Completion is the final stage of the conveyancing melbourne. It’s when the property officially changes hands and the purchase price is paid in full. The seller’s conveyancer will receive the balance of the purchase price and the buyer will receive the keys to the property.

Step 5: Post-Completion

After completion, your conveyancer will register the property with the Land Registry and send you confirmation of the registration. They will also pay any stamp duty due and provide you with a copy of the title deeds.

Other Important Considerations

There are a number of other important considerations to bear in mind when going through the conveyancing process:

  1. Mortgage: If you’re taking out a mortgage to buy a property, your conveyancer will liaise with your lender to ensure the funds are available for completion.
  2. Property Searches: Your conveyancer will carry out a number of property searches to ensure there are no issues with the property that may affect the sale. These include local authority searches, environmental searches, and drainage searches.
  3. Surveys: It’s important to have a survey carried out on the property before you buy it. This will highlight any potential issues with the property that may affect its value or make it unsuitable for your needs.
  4. Chain: If you’re buying a property as part of a chain, it’s important to keep in touch with your conveyancer and other parties in the chain to ensure the transaction proceeds smoothly.
  5. Post-Completion: After completion, your conveyancer will register the property with the Land Registry and send you confirmation of the registration. They will also pay any stamp duty due and provide you with a copy of the title deeds.


Conveyancing can be a complex process, but with the right support and guidance from a qualified conveyancer, it needn’t be stressful. By following these steps, you’ll have a better understanding of the conveyancing process and what to expect when buying or selling a property.

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Finding Your Dream Home: Tips for Navigating the Properties for Sale Market

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Are you in the market for a new home? With so many properties for sale, the search for the perfect house can be overwhelming. But don’t worry – with a little planning and some expert advice, you can navigate the market and find your dream home. Here are some tips to get you started:

Determine Your Budget:

Before you start looking at properties, it’s important to determine your budget. This will help you narrow down your options and prevent you from falling in love with a home that’s out of your price range. Take into account your income, expenses, and any other financial obligations you have.

Research the Area:

Once you have a budget in mind, start researching the areas where you want to live. Look into factors such as schools, crime rates, amenities, and transportation. This will help you narrow down your search to neighborhoods that meet your needs.

Find a Real Estate Agent:

A good real estate agent can be an invaluable resource when it comes to finding Properties for sale Surrey Hills. They can help you identify homes that meet your criteria, negotiate the price, and guide you through the buying process.

Attend Open Houses:

Attending open houses is a great way to get a feel for different properties and neighborhoods. Take your time exploring the homes, and don’t be afraid to ask questions. You may even find a home you love that you wouldn’t have considered otherwise.

Get Pre-Approved for a Mortgage:

Before you start making offers on homes, it’s important to get pre-approved for a mortgage. This will give you an idea of how much you can afford to spend and will make you a more attractive buyer to sellers.

Make an Offer:

Once you’ve found a home you love, it’s time to make an offer. Work with your real estate agent to come up with a fair price and any contingencies you want to include.

Consider Your Must-Haves:

Before you start looking at properties, make a list of your must-haves. This might include things like a certain number of bedrooms, a backyard, or a specific location. Knowing what you absolutely need in a home can help you avoid wasting time on properties that don’t meet your criteria.

Be Flexible:

While it’s important to know what you want in a home, it’s also important to be flexible. Keep an open mind when it comes to things like layout, finishes, and even location. You may find that a home that doesn’t meet all your criteria on paper is actually perfect for you in person.

Get a Home Inspection:

Once you’ve made an offer on a home, it’s important to get a home inspection. This can uncover any hidden issues with the property that you may not have noticed during your initial visits. Depending on the results of the inspection, you may want to adjust your offer or even walk away from the deal.

Understand the Market:

Understanding the current real estate market can help you make more informed decisions when it comes to buying a home. Research factors such as home prices, inventory, and interest rates to get a sense of what’s happening in your area.

Be Prepared to Act Quickly:

In a competitive market, properties can sell quickly. If you find a home that you love, be prepared to act quickly. Have your pre-approval letter and other paperwork ready to go so that you can make an offer as soon as possible.

Don’t Forget About Resale Value:

While you may be focused on finding a home that meets your current needs, it’s also important to think about resale value. Look for properties that have features that will be attractive to future buyers, such as a desirable location or a flexible layout.

By following these tips, you can navigate the properties for sale market with confidence and find the home of your dreams. Good luck!

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