Past and Future of Real Estate as an Investment Class

The new age Real estate for the small investors

Real Estate as an asset class: how it has reigned the minds of Indians for decades; how the heterogeneous nature of its value is prominent today; innovative products like fracassets makes sense for the new generation. A para can be on the pros and cons in terms of rental yield, monetisin\\g future income thru this asset, a real asset. While being large ticket size (concentration risk), price anchoring at time of selling, liquidating issues, cash component in price; location specific growth potential.

Real estate as an investment class

Historically, Indians have preferred physical assets over financial planning tool ie., real estate and gold over stocks and mutual funds. 

The major reasons for preference for real estate over other asset class are following; 

1. Limited expertise required and prolonged historical bias

   Real estate investing is no rocket science. It has been going on for ages and it has an active market of buyers, sellers as well as agents to support the transaction. 

   Compared to this, stock markets require expertise as well as it is as old as 40 years in India, hence limited exposure, and participation of people. 

2. Regular cashflow

   Real estate provides regular rental income to the owner, generating consistent as well as less volatile cash flow. It provides the opportunity of flexible asset and wealth management 

3. Capital appreciation

   There are well-known statements by multi-millionaire real estate investors: “Ninety percent of all millionaires become so through owning real estate” – Andrew Carnegie. “Landlords grow rich in their sleep” – John Stuart Mill.

   Wealth creation and price appreciation compound over a long period and such can be seen in real estate as well. 

4. Physical nature of the asset

   Historically, investors preferred assets that they could see, feel, and touch. Hence, the preference was higher for real estate and gold over paper assets like gold and mutual funds.

5. Real estate financing creates  leverage benefits 

   Real estate is usually purchased with the assistance of a substantial mortgage, typically in the range of 70-80% of the purchase price. This means that any returns from the property are magnified by the amount of this debt. For example, if you use a $50,000 down payment to acquire a $300,000 rental property and then earn $25,000 per year from it, you have generated a return of 50% on your $50,000 down payment – because so much debt was used to fund the purchase.In addition to this, a property is considered more than an investment option in India and has an emotional value attached to it.

What are the some of the drawbacks of investing in real estate?

1. Large capital requirement

   Real estate typically requires huge capital to start with. One of the challenges with real estate as against exposure to stocks and mutual fund is the amount needed to get started. With stocks, you can typically start with a minimum INR 1,000 as well. As against this, for a real estate property, you need few lakhs to begin with, depending on the location and demographics of the region. 

2. It requires maintenance cost

   There are additional costs of maintaining the property as you may not be sure how your tenant would have exploited the property. 

3. Illiquid asset 

   Real estate investments tend to be illiquid as you can’t sell off your property as quickly as you can do it for stocks and mutual funds. The sale may undergo multiple rounds of negotiation and final agreements and conclusions. Hence, there are illiquid investments.

4. Real estate income is subject to taxation 

   Ongoing income from real estate, as well as gains from the sale of property, are all subject to state and federal income taxes – which can be substantial. 

New-age real estate 

To overcome the drawbacks of traditional investing in real estate, there are new-age products for smaller investors to gain exposure to the real estate asset class. 

1. Fractional ownership assets

   A lot of new-age investment products through wealth management advisory services are now available offering fractional ownership to physical assets through an alternative route. Fractional ownership is a way for small investors to own physical real estate through an alternate investment route

   Examples : Embassy Business Hub, Bangalore ; Whitefield Tech Park, Bangalore; Mindspace Business Park, Hyderabad 

2. REITs

   A real estate investment trust is a company that owns, and in most cases operates, income-producing real estate. REITs own many types of commercial real estate, including office and apartment, warehouses, hospitals, shopping centers, hotels and commercial forests.

   Examples Brookfield India Real Estate Trust, Embassy Business Park REITs  

Benefits of new-age real estate investment products

1. Low ticket size - Access to high-quality assets with low ticket size. The minimum investment amount is between INR 10,000 to INR 15,000.

2. Convenience - Distinctive data insights of every property, remotely accessible at any given point

3. Attractive returns - Rental yields of 8-10% and targeted IRR of 12% over 5 years

4. Hassle free ownership – Turn-key management, rent collection, and property maintenance by our experienced team.

5. Improved liquidity - Enjoy seamless exits and continuous price discovery so you always know what your assets are worth

6. Transparency - Access to all data and information for easy and secure transactions

In addition to all the above benefits, these funds are managed and operated by wealth management consultants after doing the right evaluation, due diligence, data-driven analysis etc. The success rate of such investments is much higher as compared to the analysis by any retail investor. 

Further, as an individual investor, you may be able to invest in one or two properties because of large ticket size. This leads to increased concentration risk. REITs and Fracassets allow you to invest in a single fund, which further invests in multiple properties. 

Think of it as a mutual fund, but focused on real estate properties and hence, providing a benefit of diversification within real estate sector i.e. residential complexes, commercial complexes etc. helping you achieve your financial goals 

ESG Investments and its Benefits

ESG Investments and its Benefits

What Is Environmental, Social, and Governance (ESG) Investing?

A set of criteria for a company’s conduct known as environmental, social, and governance (ESG) investing is used by socially responsible investors to evaluate possible investments.

Environmental criteria take into account a company’s environmental protection efforts, including any corporate climate change initiatives. The management of connections with customers, suppliers,workers, and the communities in which it works is examined under the social criteria. Leadership, executive compensation, audits, internal controls, and shareholder rights are all topics covered under governance.

 How does Environmental, Social, and Governance (ESG) Investing Work?

 In recent years, investors have demonstrated an interest in having a financial goal where these values exist. As a result, brokerage firms and large fund houses now offer exchange-traded funds (ETFs) and other financial products that adhere to ESG investment principles. ESG investment is also known as responsible investing, impact investing, sustainable investing, and socially responsible investing (SRI). Investors evaluate a firm using a wide range of practices and policies to see how it performs in terms of ESG.

Environmental, Social, and Governance

ESG investors seek to ensure the companies they fund are responsible stewards of the environment, good corporate citizens, and are led by accountable managers.

Environmental

ESG factors may also be used to assess any potential environmental concerns a business may face and how it is addressing those risks.

Social

The company’s ties with internal and external stakeholders are examined through social factors.

Does it enforce its ESG requirements on its suppliers? Do working circumstances show great respect for the health and safety of employees? This particular aspect of ESG is highlighted by the investment approach known as socially responsible investing (SRI). 

Governance

ESG governance guidelines make that a business employs correct and open accounting practices, selects its executives with integrity and diversity in mind, and is answerable to shareholders.

ESG Criteria

Investment companies that use ESG investing frequently have their own goals. For instance, Trillium Asset Management, located in Boston, examines a range of ESG indicators to identify businesses that are well-positioned for long-term success.

Analysts determine the pertinent problems affecting certain sectors, industries, and businesses to create the criteria. 

The following investments are prohibited under Trillium’s ESG criteria:

1. Businesses that are exposed to coal or hard rock mining, nuclear or coal power, private prisons, agricultural biotechnology, tobacco, tar sands, weapons, and guns, or located in high-risk locations.

2. Organizations embroiled in significant or recent disputes involving animal welfare, human rights, the environment, corporate governance, or product safety.

Trillium, in contrast, seeks investments that adhere to the following ESG standards:

Environment

1. Releases a sustainability or carbon report

2. restricts dangerous chemicals and contaminants

3. aims to reduce carbon footprint and greenhouse gas emissions

4. Makes use of renewable energy

5. minimizes waste 

Social

1. Runs a morally-sound supply chain

2. Supports LGBTQ+ rights and promotes all types of diversity by avoiding foreign labor that can use

child labor or have dubious workplace safety

3. Has measures in place to prevent sexual misbehavior

4. Offers fair (living) pay

Governance

1. Supports a diverse board of directors

2. Supports corporate openness

3. The board’s chairperson is not the CEO

4. Disparate board election dates

How Is ESG Investing Different from Sustainable Investing?

Sustainability and ESG are closely connected. ESG investment evaluates businesses based on

standards for strong corporate governance, environmental responsibility, and pro-social behavior. When combined, these qualities can promote sustainability. ESG then examines how a company’s management and stakeholders make decisions, while sustainability considers how those decisions affect the global environment.

What Does ESG Mean for a Business?

When a company adopts ESG principles, its business strategy is centered on the three pillars of

environment, social responsibility, and good governance. This entails adopting actions to lessen

waste production, pollution, and CO2 generation. Additionally, it entails having an inclusive and

diverse staff, from entry-level employees to the board of directors. ESG may be expensive and time-consuming to implement, but it may also pay off in the long run for those that see it through.

Benefits

1. A more sustainable and healthy world

2. Increased Returns

3. Reduced Risk

Please consult your financial advisors for ESG related investments, as the concept is relatively new and the risks involved are high. 

The Nike Turnaround story 

Have you heard the story of Nike’s shameful story of labor malpractices? It wasn’t that long ago that Nike was being shamed in public for its labor practices to the point where it badly tarnished the company’s image and hurt sales. Its business model was based on outsourcing its manufacturing, using the money it saved on aggressive marketing campaigns.

It has faced global boycotts, and protests because of sub-standard factory and labor conditions at a few of its outsourced manufacturing units.

Nike has managed to turn its image around. Nike hasn’t been completely successful in bringing factories into line, but there’s no denying that the company has executed one of the greatest image turnarounds in recent decades.

Today, Nike’s ESG impact score is one of the highest in the industry at 76. The parameters

considered to arrive at this score are as under;

1. Accountable institutions

2. Climate action

3. Decent, safe work opportunities

4. Disaster readiness and effective aid

5. Equal pay and opportunity

Please refer to the link to check ESG score of various companies across the globe -

https://www.ethosesg.com/companies/396

Future of Indian Aviation Industry

Future of Indian Aviation Industry

February 1911, marked the first commercial aviation flight that India ever took. A short 15 minute journey across the Yamuna river was the beginning of a completely new industry in the Indian market.

This marked the beginning of today’s third largest aviation industry. From freight cargo to a leader in passenger operations, the Indian air industry has made its mark. 

The Indian aviation market has had a rich history. From starting off with the private player - Tata Air Services-to becoming a government-owned enterprise - Air India, to again opening the industry to private players and welcoming competition, the industry has seen it all. 

Today, with over 5 major players and multiple cost-effective domestic players, the industry is operating a huge fleet carrier. Over 130 operational airports, both domestic and international, have become a key player in increasing connectivity and leading to a higher passenger charter. 

The biggest boom was seen from 2010-2019, when higher competition forced prices to come down, breaking the myth of flying being only for the rich and giving the working class an opportunity as well. 

But, then struck the Covid pandemic in 2020, with a devastating impact the world over. While all the industries caught the blow of the pandemic, the travel and tourism industry was the worst hit. Global travel bans and lockdowns brought the civil aviation industry to a complete standstill. The industry suffered losses of about billions, raising questions on the going concern of many aviation leaders.

However, with government support and the zeal to make up for the lost years, travel did kick off again, giving a ray of hope to the aviation industry. But the industry was still hanging on a thin thread with continued losses challenging its future. 

So what does the future of the aviation industry hold? It’s no doubt that the recovery era for the aviation industry has been a rocky path, illuminating the many challenges faced by airlines. 

Let us understand a bit more about the challenges that the aviation industry's future holds -

1. Interest rate hike - Like every other industry, aviation is also impacted by interest rate hikes. Higher rates burden the already debt heavy industry. Instead of repurposing the funds for operations, higher repayment and interest costs become the immediate concern of the flight operating companies. The lease payments have a detrimental impact as well.

2. Higher fuel costs - The looming global energy crisis due to rising crude prices has a domino effect on Aviation Turbine Fuel(ATF) as well. ATF linked to crude prices fluctuates with it making it expensive. Coupled with the depreciating rupee against the USD, the cost of ATF for Indian industries is relatively higher.

3. Geo-political issues - The ongoing Russia-Ukraine war and the sanctions due to the conflict have impacted the flying zones, carrier support and have led to many new aircraft deals being renegotiated or cancelled.

4. Supply chain issues - The aviation industry is currently facing the challenge of sourcing raw materials and components in a timely manner. With the shortage of key metals and alloys, the maintenance and upkeep is becoming a challenge. 

5. Grounded Fleet - The 2 year break, coupled with supply chain issues has left many carriers grounded. With either issues with the engine or the overall upkeep not being to the standard has kept many carriers sitting in the shed. This increases the overhead borne by the aviation industry as well as reduces carriers available for operations, forcing the industry to scale down or go for heavy purchases.

While we agree that the next 2 years are going to be a challenge for the aviation industry, there are definite opportunities that make the future of the airline industry a bright one. Let’s understand the top positives of the fly-high gang - 

1. Quadruple passenger traffic - The biggest opportunity that Indian aviation has is in terms of passenger market share. While competitive domestic pricing has encouraged a new segment of air travellers, there is still an untapped potential market that is expected to increase the customer base. It is said that only 2/3rd of the Indian population have experienced flying. This makes a huge population still unexplored. Additionally, increasing purchasing power amongst the working class has converted occasional travellers also into regular air miles users. By 2037 Indian fleets will experience quadruple travellers. This is a definite boon to the future of the aviation industry.

2. Foreign Investment - With 100% FDI in civil aviation, the government has given a green signal to foreign investors connecting India to the overseas aviation market. This gives a huge boost to the industry, providing global synergy and cheaper options for funds.

3. Revamping of airports and better connectivity - the government's effort to increase connectivity with lower serviced airports and to draw new routes gives the hope of increased frequency and a chance of increased air traffic. Additionally, licensing private players to run the airports has increased efficiency and transparency. Infrastructural efforts to increase runways, adding hi-tech facilities and involving foreign players in its upkeep are definitely elevating the attractiveness of air travel.

4. GIFT City - The one of its kind Fintech city aims to provide benefits to the aviation industry in terms of better lease payments, lucrative interests and concession on duty on imports. Thereby reducing the operational expenses of the industry, leaving room to focus on growth.

5. Possible consolidation - What industry analysts are hinting at is the possible consolidation of the multiple airlines into a select few to gain operating efficiency. Currently, there are small-scale airlines that take away a portion of the market. A possible consolidation will improve costs and give the chance to sustainability. 

While it seems that the world is recovering faster than the aviation industry post Covid, that’s not the case. With its own set of challenges, it will be worthwhile to see how the aviation industry navigates through them and capitalises on its opportunity.

Asset Allocation

Asset Allocation

You would have seen some portfolios outperforming the rest. In the stock market as well, there is 90 percent of traders lose money and 10 percent of the people make money. Why is it so difficult? What do they do differently?

Why do we have only one Warren Buffet?

Why are there an only handful of billionaire investors, who have made their fortune by investing in the right assets?

What do you think they do differently than all the other investors? 

We are going to answer all these questions in this blog. First and foremost, most successful investors' focus is not on return, but on risk management. Well, shocking, isn’t it? Yes, surprisingly, that is correct. They focus on mitigating the downside risk to earn a moderate return, but consistently.

One of the ways to reduce the overall portfolio risk is with the help of diversification. Now, diversification always comes at an additional cost i.e., reduced returns. Hence, Asset allocation becomes very critical as the decisions you take initially for your corpus will decide the fate of your portfolio in the future.

You never put all your eggs in one basket – You would have heard of this famous saying. What does it mean?

What is asset allocation?

Asset allocation in the most-simplest terms means distributing your money into different asset classes. For example, hypothetically, there are only two asset classes – Debt and Equity. The proportion of your portfolio that you decide to invest in Equity vs Debt, is the asset allocation strategy for your portfolio.

How do you decide the asset allocation? 

Well, the most appropriate strategy to diversify into different asset classes simply depends on your style of investing, risk appetite, return profile, and liquidity requirement. The asset allocation strategy directly impacts the risk-return profile of your portfolio. For example, with additional allocation to equity markets, your risk increases, but also provides access to higher returns.

Why is the right asset allocation important?

There are numerous surveys, studies, and research papers submitted on this subject. Researchers always try to identify the reasons for success and attribute it to various factors such as asset allocation strategy, stock selection strategy, the timing of investment, etc. The major reason to understand, analyze, dissect and attribute the performance in the past to various factors is to then build a modern portfolio based on the most successful factor.

Such studies in the past have clearly shown that close to 3/4th of the overall portfolio return is attributable only to the asset allocation strategy whereas the balance of 25 percent success is attributed to the timing of the investment and security selection.

Why does asset allocation play an important role?

The economic activity across the globe depends on the changes in the business cycle, and so is the performance of the individual asset classes. It is the nature of the economy that time and again certain assets, industries, and sectors tend to outperform due to the change in long-term business cycles and the influence of change in economic activity.

The business cycle generally reflects the fluctuations of industries in an economy. This can be a critical factor to evaluate and predict the asset’s performance over a period. Any business cycle will have a period of stability, followed by extraordinary economic growth, followed by a slowdown, and maybe a recession to follow. The recession is typically followed by stability in prices at those lower levels and the cycle continues.

Such business cycles from peak to trough to peak are again reflected in the stock prices as well.

To give you a very easy example, in an early stage recovering economy, the stocks typically outperform other asset classes whereas, in times of recession, they are the worst performers. Hence, it becomes crucial to diversify across asset classes to make consistent returns and not wipe off your entire capital when times are bad. Diversification allows you to see the light at the end of the tunnel and helps you live for another day.

How does the right asset allocation affect your corpus in the long term?

Let us take a very simple example again of a person who has started working, at the age of 25 years, and plans to invest INR 50,000 per year. There are two options for him.

1. Play safe and Invest 70 percent in debt, 20 percent in gold, and 10 percent in provident fund

2. Take some risk (because he is young – risk-taking ability is high) and invest 45 percent in equity, 35 percent in debt, and balance equally in gold and provident fund.

The difference between the two options is huge. Option ‘a' gives him a CAGR of just under 9 percent, whereas option ‘b’ will provide him a CAGR of more than 18 percent. You may think that it is just a matter of 9 percent on INR 50,000 i.e. INR 4,500 for the entire year. It is not a big deal.

Well, that is not true at all!

How does this ~10 percent delta translate into actual money in the long run?

Over the next 20 years of investing INR 50,000 per year, option ‘b’ will grow to more than six times the value of option ‘a’. The benefits of compounding, in the long run, are substantially high and beyond the imagination of a human brain.

Now that we have agreed and understood that asset allocation is important and creates a huge gap in the end-state corpus, let us understand the different asset allocation strategies for your portfolio

What are the different asset allocation strategies?

1. Strategic Asset Allocation

   It is the most basic and simple to use strategy. If your desired return is 10 percent from your portfolio and you know that historically, the stocks are averaging 12 percent return and bonds end up at 8 percent. The simple formula suggests that the asset allocation weight to stocks should be 50 percent.

   Strategic asset allocation focuses more on the buy-and-hold strategy even if eventually because of future returns, the asset allocation weights have changed, you don’t take action.

2. Constant-weighting asset allocation

   An extension to the Strategic Asset Allocation strategy where you continually rebalance your portfolio at regular intervals to bring it back to the original mix of different asset classes.

   For example, the original weight was 50% of both assets (portfolio value: INR 1 lakh). After 12 months, the stocks gave a return of 20 percent, whereas the bonds gave a return of 8 percent. Here’s what you need to do.

Asset class

Start value

Original weights

Asset returns

End value

Revised weights

Rebalance

Equity

50,000

50%

20%

60,000

53%

-3,000

Debt

50,000

50%

8%

54,000

47%

3,000

1,00,000

1,14,000

There are multiple other ways to allocate weights to your portfolio to achieve the most optimum diversification. Depending on your portfolio management strategy, the asset allocation can be active to varying degrees of involvement.

You need to be aware that taking decisions in real life about your portfolio i.e. real money requires a great deal of focus, understanding, and expertise of the market as well as skills to use some of these tools for timing these movements.

Please consult a financial advisor before making any money management decision.

Life Insurance

The Why, How, and What of Life Insurance

What is Life Insurance?

Life insurance is a contract between an insurance policy holder and an insurance company in which the insurer promises to pay an amount of money in return for a premium upon the death of an insured person or after a certain length of time.

What is Insurance Premium?

The insurance company requires an individual or business to pay a set amount of money as a premium on a regular basis to get and maintain their insurance policy and coverage.

Who should buy Life Insurance?

If you are an earning member of the family, with dependents who rely on you for their living expenses/ education/ lifestyle, then there is need to cover your life. The ideal amount would be the present value of all such future expenses. The exception to this rule is the insurance for children which are geared to cover their education expenses, in case of an unfortunate event to the life of the earner of the family. Financial planners foremostly advise to get a risk coverage 

Benefits of Life Insurance Policies

1. Tax benefits. Enrolling in a life insurance policy might provide you with tax advantages. The policy premiums you pay entitle you to tax exemptions of up to 1.5 lakhs of your taxable income under Section 80C of the Income Tax Act. Likewise the sum assured received at the time of death are totally tax deductible under ITA Section 10(10)D.

2. Guaranteed returns. Life insurance products ensure that you will get a certain sum after a specified time period, as the rate of return is decided at the start of the policy term for selected insurance policies.

3. Risk mitigation and coverage. These policies provide the essential risk coverage in the form of monetary compensations to minimize and cover risks following the death of the policyholder.

4. Provision for loan. Certain insurance policies provide a lending option that allows you to borrow money. This implies that if you need to borrow money for a child's schooling or marriage, you may use the life insurance policy as collateral.

5. Health expense coverage. Most of these insurance cover all medical and treatment costs that may arise. If the policyholder becomes ill, you can pick riders to extend the insurance policy's coverage to safeguard your finances while you are still living.

Things to Keep in Mind Before Selecting a Life Insurance

1. Evaluate your life insurance objectives

2. Determine the ideal insurance coverage that you require

3. Determine the amount you must spend as a premium and choose the policy that offers the best deal

4. Choose the appropriate policy term

5. Do not hide information from your life insurance provider 

6. Carefully read the final policy paperwork 

7. Purchase life insurance at a young age

Eligibility criteria

1. Age. The age range for applying for life insurance (especially term cover) is 18-65 years. The age at which you apply for insurance determines the premium you must pay.

2. Citizenship. Anyone seeking insurance must be a resident of India at the time of purchase. However, if you move abroad for studies or a job after obtaining a term plan, your eligibility will remain the same.

3. Medical tests. Underwriting is often required by insurers in order to obtain a medical test to better understand your health. It is advised that you be entirely honest with them regarding any medical history you may have. This factor is also important in determining your premium.

4. Income. There is no specified income group or restriction for term insurance eligibility. However, you will be asked for your income slips or bank account information in order to determine the term cover and verify that you can pay the premiums on time.

5. Job profile. Along with your salary, your employment profile is taken into account. If you work in a high-risk setting, you will be required to pay a higher premium for your term insurance policy.

Habits of smoking Your premium is affected by whether you smoke or not. Smokers pay much higher rates.

Types of Life Insurance Policies

1. Term Life Insurance

   This type of life insurance pays out a predetermined sum of money to the policyholder's family only if the policyholder dies within the term of the policy. If the insured individual lives until the conclusion of the insurance period, there will be no claim. This insurance is essentially active for a set period of time and is one of the most economical products in the market.

2. Whole Life Insurance

   Whole life insurance, as the name implies, offers coverage throughout your life while the policy is in effect. This covering period might last up to a 100 years. This insurance also provides the policyholder with financing options.

3. Unit-Linked Insurance Plan

   A unit linked insurance plan (ULIP) is a multi-faceted policy that provides insurance coverage as well as investing exposure in stocks or bonds. Policyholders must pay recurring premiums for this plan. Part of the premiums are used to fund insurance, while the remainder is pooled with assets from other policyholders and invested in stocks, bonds, or a mix of the two.

4. Endowment Plan

   Endowment policies vary from term insurance policies in that the insured receives a lump sum amount of money if he or she survives until the maturity date. The policy provides both insurance and savings. They also have riders that may be utilised to expand the policy's coverage. In the event of death, the endowment insurance assures that, in addition to the money, a participation profit is paid in accordance with the terms of the policy.

5. Money-Back Policy

   The fundamental distinction and benefit of a money back insurance is that it provides the policyholder with various survival benefits that are connected to the policy's term. Unlike other insurance, this one pays out within the policy duration. If the policyholder dies, regardless of the instalments paid, the family receives the whole money.

6. Universal Life Insurance

   Universal life (UL) insurance is perpetual life insurance (lasting the insured's lifetime) with an investment savings component and low premiums similar to term life insurance.

7. Variable Universal Life Insurance

   A variable universal life insurance policy is a form of permanent life insurance policy. With cash value, investment diversity, customizable premiums, and a flexible death benefit.

8. Guaranteed Issue Life Insurance

   Guaranteed acceptance life insurance is a form of whole life insurance policy that does not require you to answer health questions, take a medical exam, or enable an insurance company to check your medical and prescription records.

9. Simplified Issue Life Insurance

   Simplified issue insurance is a type of life insurance policy that may be authorized with few health questions. This sort of insurance is primarily aimed towards customers who need life insurance immediately and/or do not want to submit to a medical evaluation.

10. Group Insurance

    Group insurance plans provide coverage for a group of people under a single insurance policy. Organizations can purchase these policies to provide coverage to their members.

11. Return of Premium Life Insurance

    Return of premium (ROP) term life insurance offers a death benefit to your beneficiaries if you die during the term of your policy but refunds your premiums if you outlast the policy term.

12. Survivorship Life Insurance

    Survivorship life insurance is distinct in that it is written on two lives. However, before a death benefit is given, both insureds must die - that is, benefit is only received after the death of the second insured.

Please seek advice from a financial consultant before making any money management decision .