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November 6, 2021

News

Things to take care of while taking home loans in case of the sudden death of the borrower

A person who does proper financial planning never falls victim to financial problems. It is necessary that while taking home loans, the borrower should have proper financial planning. The borrower should keep a sufficient amount of savings in the bank account before taking home loans. Even if an individual has a high income, the person who does proper savings and financial investments never fall short of the savings. Proper financial planning helps individuals protect themselves and their families from financial problems like sudden job loss, the sudden requirement of medical expenses, or the death of an earning family member. So the earning member of the family must keep savings instead of spending foolishly for a better tomorrow. There are various financial instruments being available for the borrowers to invest and grow their money for the betterment and financial safety of the family members. Making fixed deposits is also a better option but does not yield better than other financial instruments like stocks, mutual funds, or SIP.

Making a nominee in every investment is also essential for the financial investments being done. The borrower of the home loan should have such systematic financial planning that even in case of the sudden death of the borrower during the tenure of the loans, the house purchased for the family’s financial safety should not go away. There are many instances that whenever if the sole breadwinner of the family is lost by the family, in that case, the family members often face financial problems due to which they may have to mortgage their jewelry and also the house. Making a nominee in every financial investment helps the nominee claim the money in case of the sudden death of the investor. Also, the family members should know where the borrower has invested all the money. There should not be any unclaimed funds lying into any of the accounts that the family members would not be aware of. There are many funds being lying unclaimed with the banks, insurance companies, and other investments. It is estimated that the un-claimed funds have been amounting to Rs.83,000 crores across India, which haven’t been claimed by the persons who own it in spite of the account becoming dormant.

Things to do to take care of in case of the sudden death of the family member while Home loans have been taken

  • Take a life insurance policy to protect the family:

The home loan borrower should take a life insurance policy amounting to a higher value so that while repaying home loans if sudden death happens of the borrower, the family members should not lose their own house to the bank. Instead, whatever the amount the borrower’s family gets a life insurance amount, the life insurance company can claim the amount of the policy, and the family members can pay the pending amount from the claim settlement received from the life insurance company.

  • Make the family members aware of all the savings:

The borrower should inform their spouse about the financial investments being made and where all the money has been invested like stocks, mutual funds, EPF, PPF, insurance policy. etc. So that there should not be any un-claimed value which the family members may not be aware of & thus may not withdraw in case of the sudden death of the borrowers.

  • Keep hefty savings for the protection of the family:

The borrower should keep a sufficient amount of funds in savings in a bank account and various financial instruments for the safety of the family members. The borrower should reduce the spending carelessly while the home loans are being taken as it can help the borrower increase maximum savings from whatever the salary is being received.

  • Make maximum down-payment as far as possible:

The lender’s interest amount is high as the amount is calculated on a compounded annual basis. Thus to reduce the value of repayment, the borrower should reduce the liability on himself and try to do maximum down-payment so that in case any unfortunate incident happens in case of the borrower. In that case, there should not be any excessive burden of the repayment on the borrower’s family.

  • Do regular medical health checkups:

The borrower should do regular health checkups, especially if the borrower’s age is more than 45+ years. The early diagnostics of the health issues can help save the borrower from protecting themselves from the dangerous health problems internally and can cure more early. Late diagnostics of the health problems can cause many complications in the treatment, and chances of being fatal increase.

The above points should be taken care-off while taking home loans to protect the family members from unfortunate incidents. The borrowers should try to make maximum savings and reduce unnecessary expenses while taking loans. Proper financial planning can help the borrower protect the family from facing any financial issues and also protect the purchased home.

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Technology

How does the Forex market work and how to choose the trustworthy broker

Speculating in the major international currencies market can pay off big. But it is also a very risky investment. Here are some rules to follow to earn your first winnings.

What are the rules to follow to become a successful Forex trader

Very liquid and easily accessible to active and informed individual investors, the currency market presents many opportunities for gains. Of course, learning to tame the volatile Forex market requires patience, prudence, and a lot of methods.

But investing in this asset class can be very profitable, especially thanks to the leverage effect and lower transaction costs. To ensure your first steps on the foreign exchange market, we give you here the main elements to know to start well in Forex.

How the Forex market works

Forex stands for the world market in which the large commercial banks intervene in exchanging currencies there. Day and night, transactions are linked 24 hours a day as the major international financial centres open, one after the other all week, from Sunday evening to Friday evening. Exchanges between Forex traders begin in the Asia-Pacific zone before passing through Europe and finally circling the globe via America. And so on…

Unlike the Stock Exchange, which acts as an intermediary between the parties, Forex is not an organized market: transactions between buyers and sellers are carried out over the counter. The latter communicate with each other on the interbank market via electronic platforms such as that of the English Nex Group, owned by the American CME Group since last March.

This mode of operation makes it possible in particular to reduce transaction costs on exchanges.

The average value amounts to $ 5.1 billion each day, according to the latest triennial study by the Bank for International Settlements (BIS) carried out in 2016. In this gigantic market, the American dollar (USD), which takes the lion’s share, is present in 88% of trade, ahead of the euro (31%) and the yen (22%).

How to choose an online broker

To start trading Forex, you first need to choose an intermediary to confidently open a specific account. Take care. This first step should not be left to chance or guided by a service proposal you yourself have not requested. In recent years, many crooks have robbed naive individuals by promising them easy and amazing gains by betting on Forex.

Reading the opinions of other fellow traders is very useful. For instance, if the specific offer has attracted you, let’s say it’s TradeVtech brokerage, type in Google search the broker’s name: TradeVtech review and see what comes up.

In general, your safe bet would be by going for the broker with the license, meaning it’s a regulated business in your country. The financial authorities maintain a blacklist of players who offer without authorization to invest in Forex. Choosing the one that is operating under regulations means you are protected from scammers. And scammers can ruin your trading journey even before it starts by using your inexperience and lack of knowledge.

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