Relocation Packages: What to Ask Your Employer – Including Legal Rental Costs and Agreements

Relocating for a job can be both exciting and overwhelming. While the new opportunity might be promising, the move itself involves expenses, logistics, and legal processes—especially if you’re renting a new home. This is why many companies offer relocation packages to help employees transition smoothly.

However, not all relocation packages are the same. To ensure you get the best possible deal, you need to know what to ask for, and that includes legal rental costs and agreements as part of your negotiation.

1. What Is a Relocation Package?

A relocation package is a set of benefits and reimbursements offered by an employer to help cover the costs of moving for work.
It can include:

• Transportation of household goods

• Temporary accommodation

• Travel expenses

• Assistance with rental agreements or property search

• Legal and administrative costs related to renting or buying a home

Why it matters:
If you accept a new job without clarifying the relocation benefits, you might end up paying thousands from your own pocket.

2. Why Legal Rental Costs and Agreements Should Be Part of the Package

When moving to a new city (or country), finding a home isn’t as simple as signing a lease. You may encounter stamp duty, registration fees, legal verification charges, and drafting costs for rental agreements.

Including these in your relocation package helps in two ways:

1. Financial relief – Saves you from sudden, high upfront payments.

2. Compliance assurance – Ensures your rental agreement follows the law in your new location.

Example:
In Bangalore, a rental agreement typically needs to be on an e-stamp paper with a government-set fee, plus notary charges. In cities like Hyderabad, registration might be mandatory for leases longer than 11 months. These costs can range from ₹2,000 to ₹10,000 or more.

3. Key Questions to Ask Your Employer About Relocation Packages

When your employer offers a relocation package, don’t just accept the first version they present. Ask specific questions to ensure you’re getting the right support.

A. Housing and Rental Agreement Support

• Will you cover stamp duty and registration fees for the rental agreement?

• Will the company handle drafting and legal verification of the rental agreement?

• Can you help arrange temporary accommodation while I search for a permanent home?

• Will you provide assistance through a professional rental broker or relocation consultant?

B. Moving Expenses

• Will you cover the full cost of packing, transport, and unpacking?

• Will you pay for insurance of household goods during transit?

• Are there limits on volume or weight of items moved?

C. Travel and Transportation

• Will you pay for air/train tickets for me and my family?

• Will you cover local transport costs (cab fare, car rental, etc.) during the move?

• Will you assist with vehicle transport if I own a car or bike?

D. Family and Lifestyle Support

• Will you assist with school admissions for children?

• Will you provide spousal job search assistance?

• Will you offer guidance on local amenities and settling-in services?

E. Financial Reimbursements

• Will expenses be paid upfront or on a reimbursement basis?

• What is the maximum relocation budget?

• How soon will reimbursements be processed?

4. Legal Rental Costs You Should Negotiate

Legal rental costs vary by state and city in India. Here are the most common charges you should consider:

Cost Type	Description	Typical Range
Stamp Duty	Government tax on rental agreements	₹100 – ₹5,000
Registration Fee	Charged if the agreement is registered with the sub-registrar	₹500 – ₹5,000
Notary Charges	For notarizing the agreement if not registered	₹200 – ₹1,000
Drafting Charges	Lawyer or agent fees for drafting agreements	₹500 – ₹2,000
Brokerage Fee	Paid to real estate agents	Usually 1 month’s rent

Tip: Ask your employer to cover these in full or offer a flat relocation allowance that includes them.

5. How to Negotiate Legal Rental Costs Into Your Relocation Package

Negotiating these costs isn’t about being demanding—it’s about being prepared.

Step 1: Research Local Laws and Costs

• Check if your new city requires mandatory rental agreement registration.

• Find the stamp duty rates for that state.

• Understand typical brokerage charges in the area.

Step 2: Present a Cost Estimate to Your Employer

Instead of vaguely saying “I need help with legal costs,” present a clear estimate.
Example:

“Based on my research, rental agreement and registration costs in my new city will be around ₹7,000, plus brokerage fees of one month’s rent. I’d like to request these to be included in the relocation package.”

Step 3: Ask for Direct Payment Instead of Reimbursement

Where possible, request the company to pay the landlord, broker, or legal office directly. This saves you from cash flow issues.

6. Types of Relocation Packages

Employers usually offer relocation support in three formats:

1. Lump-Sum Package

   • You get a fixed amount and manage expenses yourself.

   • Flexible but requires budgeting skills.

   • You can include rental legal costs in your budget.

2. Reimbursement Package

   • You pay first, submit bills, and get reimbursed.

   • Less flexibility but ensures approved costs are covered.

3. Fully Covered Package

   • The employer handles all arrangements and payments directly.

   • Easiest for employees but less room for personal choices.

7. Common Mistakes Employees Make When Accepting Relocation Packages

• Not asking about legal rental costs – These can add up quickly.

• Ignoring tax implications – Some relocation benefits may be taxable.

• Overlooking family needs – Focus on housing and ignore schooling or spouse employment.

• Not getting it in writing – Verbal promises mean little in disputes.

8. Tax Implications of Relocation Benefits in India

Some relocation expenses, like household goods transport, may be tax-exempt if directly paid by the employer. However:

• Lump-sum relocation allowances are often taxable.

• If the company pays your rental agreement registration directly, it might be non-taxable.

Always confirm with your HR or tax advisor.

9. Sample Negotiation Email to Employer

Here’s a professional way to request inclusion of legal rental costs:

Subject: Request for Inclusion of Rental Agreement Costs in Relocation Package

Dear [HR Manager's Name],

Thank you for offering the relocation package for my upcoming move to [City]. I’m excited about joining the team.

As part of the move, I will need to finalize a rental agreement, which in [City] involves stamp duty, registration, and related legal charges. Based on my research, these costs will amount to approximately ₹[amount].

I would like to request that these expenses be included in the relocation package to ensure a smooth transition and compliance with local laws. Please let me know if we can add this to the existing benefits.

Looking forward to your response.

Best regards,
[Your Name]

10. Final Checklist – Relocation Package Must-Haves

Before you sign your offer letter, ensure your relocation package covers:

• ✅ Transport of household goods

• ✅ Travel expenses for you and family

• ✅ Temporary accommodation

• ✅ Legal rental costs (stamp duty, registration, notary)

• ✅ Brokerage or agent fees

• ✅ Assistance with finding schools, healthcare, and other essentials

Conclusion

A well-structured relocation package can make your move stress-free and financially manageable. By including legal rental costs and agreements in your negotiations, you ensure you’re not caught off-guard by hidden expenses.

Remember, employers expect you to discuss your needs—it’s part of professional relocation planning. The key is to research, be specific, and get everything in writing before you move.

Security Deposits in India: What’s Fair and What’s Not?

                                 

Renting a home in India often comes with one universal condition — the security deposit. It's the tenant’s upfront financial commitment meant to cover potential damages or missed rent. But here's the question: How much is fair, and what isn’t? In a country where rental laws are often ambiguous and vary by state, both tenants and landlords are often left confused or misled about what’s acceptable.

This comprehensive article breaks down everything you need to know about security deposits in India, from legal norms to common practices, including tips for both landlords and tenants to ensure transparency and fairness.

What is a Security Deposit?

A security deposit is a sum of money paid by the tenant to the landlord before moving into a rented property. This is a refundable amount, usually returned at the end of the lease or if the property is vacated in good condition and without dues.

Purpose of a Security Deposit:

• Covers unpaid rent (if any)

• Covers damages beyond normal wear and tear

• Ensures tenant’s commitment to the rental terms

Security Deposit Norms in Major Cities (As of 2025)

India doesn’t have a uniform rental law, so security deposit norms differ by region and even within cities. Here's a snapshot:

City	Typical Deposit Amount
Bangalore	2–3 months’ rent (was 10 months earlier)
Hyderabad	1–2 months’ rent
Chennai	5–10 months’ rent
Mumbai	1–2 months’ rent
Delhi NCR	2–3 months’ rent
Pune	2–3 months’ rent
Kolkata	1–2 months’ rent

👉 Note: Always verify with a local real estate expert or review local housing rules, as private agreements may differ.

What’s Considered Fair?

A fair security deposit is one that:

• Matches local market standards (2–3 months in most cities now)

• Is clearly mentioned in the rental agreement

• Is refundable with deductions (if any) well-justified with invoices or proof

• Is not used as an excuse by landlords to exploit tenants at lease end

What’s Not Fair?

• Charging excessive deposits (e.g., 6–10 months) in cities where the norm is 1–2 months

• Refusing to return the deposit without proper justification

• Making verbal agreements instead of formal rent agreements

• Charging for normal wear and tear (like faded paint, small nail holes, etc.)

• Unexplained deductions or arbitrary charges

Are There Any Legal Guidelines?

As of 2025, India still doesn’t have a centralized law regulating the maximum security deposit, though the Model Tenancy Act (MTA) 2021 is gradually being adopted by several states. It proposes:

• Maximum 2 months’ rent for residential properties

• 6 months’ rent for commercial properties

However, adoption is not uniform.

• Karnataka has implemented the MTA, so cities like Bangalore now mostly follow the 2–3 months deposit rule.

• Telangana (Hyderabad) has not formally adopted the MTA yet, so norms depend on mutual consent.

The Model Tenancy Act and Its Impact

The Model Tenancy Act (MTA) aims to standardize and modernize rental housing in India. If adopted by all states, it will provide:

• Legal limits on security deposits

• Clearly defined dispute resolution mechanisms

• Timely return of security deposits (within 1 month of vacating the premises)

This is a game-changer for tenants often burdened by exorbitant upfront costs.

Security Deposit Refund: What Should Happen?

At the end of a lease term:

1. Tenant vacates the property as per agreement.

2. Landlord inspects the property.

3. Deductions (if any) are clearly listed.

4. Balance deposit is returned—ideally within 15–30 days.

Ideal Refund Checklist for Tenants:

• Rent cleared

• No utility dues

• No property damage

• Keys handed over

• Acknowledgement letter received

How to Protect Your Security Deposit: Tenant Tips

1. Get Everything in Writing
   Make sure your rental agreement clearly mentions the deposit amount, refund timelines, and deductions policy.

2. Conduct a Property Walkthrough
   Before moving in and out, do a joint inspection with the landlord. Document with photos/videos.

3. Pay Utilities & Dues on Time
   Ensure electricity, water, and internet bills are cleared.

4. Repair Any Damages
   Minor issues like broken tiles or stained walls? Fix them before vacating.

5. Communicate in Advance
   Provide notice as per the agreement—usually 30 days.

6. Get a Written Acknowledgment
   Once you hand over keys and clear dues, request a signed statement or WhatsApp confirmation.

Landlord Tips to Ensure Fair Practice

1. Use a Legal Rental Agreement
   Mention the security deposit clause clearly—amount, purpose, and refund conditions.

2. Conduct Entry & Exit Inspections
   Take photos at the time of move-in and move-out.

3. Maintain Transparency in Deductions
   Share a bill or estimate for any deductions made (e.g., painting charges).

4. Return Deposit on Time
   Retaining the deposit unfairly can lead to legal consequences.

5. Avoid Verbal Promises
   Everything should be written and signed by both parties.

What Happens If There's a Dispute?

If a landlord refuses to return the deposit unfairly or deducts a large amount:

Steps Tenants Can Take:

1. Send a Legal Notice
   A formal letter via a lawyer demanding deposit return.

2. Approach the Rent Control Board
   Available in most major cities.

3. File a Consumer Complaint
   For harassment or unfair practices, tenants can approach consumer courts.

4. Use Lok Adalat or Mediation Services
   Especially in metro cities, these provide faster resolution.

Cost of Litigation

Legal help can range from ₹2,000 to ₹10,000, depending on complexity and location. But in many cases, just the legal notice prompts landlords to return the deposit quickly.

Top 5 Online Platforms to Make a Rental Agreement in Hyderabad

Renting a home in Hyderabad, one of India’s fastest-growing IT hubs, has become easier than ever, thanks to the digital revolution. Whether you're a tenant or a landlord, creating a legally valid rental agreement in Hyderabad no longer means endless visits to lawyers or stamp vendors. With online rental agreement platforms now available, the entire process—from drafting to digital signing and even home delivery—is at your fingertips.

In this article, we’ll explore the top 5 online platforms to make a rental agreement in Hyderabad. These platforms are trusted, user-friendly, and legally compliant, making life easier for anyone dealing with property rentals in Telangana.

✅ Why Use an Online Platform for Rental Agreements?

Before we dive into the list, let’s understand why online rental agreements are becoming the preferred option:

• Convenience: Create, sign, and get your rental agreement delivered without stepping out of your home.

• Legally Binding: Most platforms use government-approved e-stamp paper and follow the Telangana State Rental Laws.

• Digital Signatures: Accepted in Indian courts under the IT Act, 2000.

• Customizable Templates: You can tailor the agreement based on your specific terms and conditions.

• Cost-Effective: Saves you money on agents, middlemen, and multiple visits to government offices.

📋 List of Top 5 Online Platforms to Make a Rental Agreement in Hyderabad

Let’s explore the most reliable and user-friendly options available:

1. AgreementKart

Website: https://agreementkart.com
Specialization: Digitally signed and stamped rental agreements delivered across Hyderabad

Why It Stands Out:

AgreementKart is a dedicated legal documentation platform that specializes in online rental agreements. It provides services tailored for cities like Hyderabad, ensuring compliance with Telangana’s e-stamping norms.

Features:

• 100% digital process, including online form filling

• Legally valid e-stamp paper for Telangana

• Option for Aadhaar-based digital signatures

• Home delivery of printed agreement (optional)

• Free revisions before finalization

• Support available via WhatsApp and phone

Pricing:

• Starts from ₹499 for a basic agreement

• Add-ons like notary, hard copy delivery, or tenant verification available at extra cost

Ideal For:

Landlords and tenants in Hyderabad looking for a fully digital, hassle-free experience with high legal compliance.

2. LegalDocs

Website: https://legaldocs.co.in
Specialization: Government-approved e-stamp agreements with PAN India presence

Why It Stands Out:

LegalDocs is a popular platform that supports rental agreements across India, including Hyderabad. It is known for quick service and good customer support.

Features:

• Drafts legally valid agreements within 15 minutes

• Telangana-specific e-stamp paper included

• Downloadable soft copy + optional courier delivery

• Option to upload your own agreement format

• Identity verification of tenant/landlord

Pricing:

• Starts at ₹499 (excluding stamp duty)

• Additional charges for courier or notarization

Ideal For:

People who want instant soft copies and are comfortable filling out forms online without assistance.

3. NoBroker

Website: https://www.nobroker.in
Specialization: End-to-end rental management, including agreement creation

Why It Stands Out:

NoBroker is one of India’s largest platforms for property rentals without brokers. Their Rental Agreement service is widely used in Hyderabad due to its smooth integration with rental listings.

Features:

• Agreements drafted and delivered to your doorstep

• Aadhaar-based digital signature support

• Option to add tenant/landlord clauses manually

• Professional support during drafting

• Free consultation for agreement disputes

Pricing:

• Basic plan starts at ₹999

• Premium plans include home pick-up, tenant verification, and more

Ideal For:

Those already using NoBroker for property rental and want an integrated service.

4. eSahayak

Website: https://esahayak.io
Specialization: Instant online documentation services including Telangana rental agreements

Why It Stands Out:

eSahayak is a fast-growing online legal documentation platform that’s built for tech-savvy users. It offers an intuitive interface and real-time drafting.

Features:

• Telangana e-stamp paper included

• Real-time preview while editing agreement

• Instant download of signed document

• Chat-based support for help

• Transparent pricing with no hidden fees

Pricing:

• Starts from ₹599

• Multiple plans depending on agreement complexity

Ideal For:

Users who want a do-it-yourself (DIY) option with minimal support, but solid documentation.

5. Housing.com

Website: https://housing.com/rental-agreement
Specialization: Property platform with rental agreement generation

Why It Stands Out:

Housing.com, a known name in the property rental space, also provides online rental agreement creation, especially useful for those already listing or searching on their platform.

Features:

• Easy-to-use rental agreement builder

• Telangana stamp paper support

• OTP verification of both parties

• e-signature and PDF copy delivery

• Mobile-friendly interface

Pricing:

• Starts from ₹699

• Option to include clause customization and notarization

Ideal For:

Users already on Housing.com or looking to keep the entire property process on one platform.

🏡 Which One Should You Choose?

Here’s a quick comparison table to help you decide:

Platform	E-Stamp for Telangana	Digital Signature	Hard Copy Delivery	Starting Price	Best For
AgreementKart	✅ Yes	✅ Aadhaar-Based	✅ Available	₹499	End-to-end legal solution
LegalDocs	✅ Yes	✅ Aadhaar-Based	✅ Available	₹499	Quick agreements
NoBroker	✅ Yes	✅ Aadhaar-Based	✅ Available	₹999	Integrated with rental listing
eSahayak	✅ Yes	✅ Aadhaar-Based	❌ Soft Copy Only	₹599	DIY users
Housing.com	✅ Yes	✅ Aadhaar-Based	✅ Available	₹699	Property platform users

📌 Key Considerations Before Choosing a Platform

Before making your rental agreement online, keep the following points in mind:

1. Stamp Duty Charges in Telangana

   • Typically ₹100 for rental agreements of up to 11 months

   • Platforms often include this in their total pricing

2. Digital Signature Validity

   • Make sure the platform supports Aadhaar-based eSign for legal compliance.

3. Clauses to Include

   • Rent amount and payment date

   • Security deposit

   • Notice period

   • Maintenance responsibilities

   • Lock-in period (if any)

4. Tenant Verification

   • Some platforms offer add-on police verification or ID checks for extra security.

5. Notarization

   • Although not mandatory for 11-month agreements, some landlords still prefer it for extra legal strength.

🏠 Legal Validity of Online Rental Agreements in Hyderabad

Under Indian law, online rental agreements are valid if:

• Executed on stamp paper of the appropriate value (as per the Stamp Act of Telangana)

• Digitally signed or physically signed by both parties

• Contains clearly defined clauses

• Includes details of the property, rent amount, duration, and both parties

Thanks to The Information Technology Act, 2000, digitally signed documents are admissible in court, making online rental agreements perfectly legal and enforceable.

🙋 FAQs

❓ Is an online rental agreement legally valid in Hyderabad?

Yes, as long as it is executed on appropriate stamp paper and signed (digitally or physically), it is 100% legally valid.

❓ What is the duration of a typical rental agreement in Hyderabad?

Most rental agreements are for 11 months to avoid registration. Longer agreements may require registration at the sub-registrar office.

❓ Do I need to notarize the online rental agreement?

Notarization is not mandatory for 11-month agreements but is optional if parties want added legal weight.

❓ Can I make a rental agreement for a commercial property online?

Yes, platforms like AgreementKart and LegalDocs offer customized commercial rental agreements too.

A Financial Guide for Tenants and Landlords

 Bangalore, the thriving IT capital of India, witnesses thousands of people moving in every month for jobs, education, or business. Whether you’re a newcomer renting an apartment or a landlord leasing your property, a well-drafted rental agreement is a vital part of the process — not just legally but also financially.

Most people treat rental agreements as mere formalities. But in reality, these documents define the financial boundaries and responsibilities for both tenants and landlords. From security deposits and rent hikes to maintenance charges, a rental agreement outlines who pays what, when, and how.

In this article, we’ll explore the financial aspects of rental agreements in Bangalore, how to create them the right way, and the available online and offline methods to do so.

What is a Rental Agreement?

A rental agreement is a legal contract between a landlord and tenant outlining the terms of property use. In Bangalore, rental agreements are typically made for 11 months to avoid legal complexities under the Karnataka Rent Control Act, which applies to agreements of 12 months or more.

This agreement becomes the financial and legal foundation for the entire landlord-tenant relationship.

Why a Rental Agreement Matters Financially

A rental agreement isn’t just about documentation—it’s a financial tool. Here’s why:

• Avoids payment disputes

• Defines rent escalation terms

• Sets security deposit expectations

• Details maintenance responsibilities

• Helps claim House Rent Allowance (HRA) benefits during tax filing

By clearly listing these terms, both parties can avoid unexpected expenses or legal issues.

Key Financial Components of a Rental Agreement in Bangalore

1. Monthly Rent

• The rent amount must be clearly stated.

• Payment mode (bank transfer, UPI, cash) and due date should be defined.

• Some agreements include a late payment penalty (e.g., ₹100/day).

2. Security Deposit

• As per Karnataka government rules, security deposit is capped at two months' rent.

• In practice, landlords often demand 5–10 months.

• Ensure the agreement mentions refund terms and any deductible charges.

3. Maintenance Charges

• Monthly charges for building maintenance, security, cleaning, etc.

• Clarify whether the landlord or tenant will bear these.

4. Rent Hike Clause

• Rent usually increases by 5–10% annually.

• The agreement should specify the percentage and frequency of increase.

5. Utility Bills

• Who pays for water, electricity, internet, and gas?

• Ideally, these should be billed in the tenant’s name or mentioned explicitly in the agreement.

Tax Benefits: Use Rental Agreement to Claim HRA

For salaried individuals, a rental agreement helps in claiming House Rent Allowance (HRA) under Section 10(13A) of the Income Tax Act.

To avail HRA benefits:

• Ensure your rental agreement is valid and signed.

• Collect monthly rent receipts.

• If annual rent exceeds ₹1 lakh, mention the landlord’s PAN.

This can save you thousands of rupees annually in taxes — a strong reason why financial planning and proper documentation are essential.

How to Create a Rental Agreement in Bangalore

You have two options: Offline and Online.

Option 1: Offline Process

Traditionally, people create rental agreements using this method:

1. Draft the agreement manually or with a local advocate.

2. Print it on non-judicial stamp paper (typically ₹100 or ₹200).

3. Get signatures from the landlord, tenant, and two witnesses.

4. For agreements over 11 months, register it at the sub-registrar’s office.

While valid, this process can be time-consuming, involve travel, and might not offer flexibility for customization.

Option 2: Online Rental Agreement – Faster & More Financially Efficient

Over the last few years, online rental agreement services have become increasingly popular in Bangalore due to their convenience, legal validity, and affordability.

Some popular platforms include:

• AgreementKart

• NoBroker

• LegalDesk

• Leegality

• eDrafter

• LawRato

Most of these services allow you to:

• Fill in the landlord and tenant details online

• Customize clauses like rent, notice period, deposit, etc.

• Pay online and get the agreement printed on e-stamp paper

• Download the soft copy instantly or request doorstep delivery

Benefits of Using Online Services:

• Time-saving (done in 10–15 minutes)

• Legally valid and court-admissible

• Transparent pricing

• No need to visit any government office

• Digitally signed documents available

These services are especially useful for people relocating from outside Bangalore, NRIs, or tech-savvy tenants/owners looking for fast documentation.

Common Financial Mistakes to Avoid

Here are some frequent missteps that can lead to financial trouble:

❌ Not Having a Written Agreement

Verbal agreements may seem convenient but are not legally binding in case of disputes.

❌ Not Mentioning Notice Period

Ensure your agreement clearly defines notice period (usually 1–2 months) for both parties. Otherwise, premature exit or eviction can lead to legal complications and monetary loss.

❌ Unclear Security Deposit Terms

Many tenants lose a portion of their deposit due to vague terms. Mention:

• Exact deposit amount

• Conditions for deductions

• Timeline for refund

❌ Ignoring Hidden Costs

Ask upfront about maintenance, parking, water, and electricity costs. Include them in your monthly rental budget.

Sample Clauses to Include (Financially Important)

• “Tenant agrees to pay ₹X rent by the 5th of every month via UPI/bank transfer.”

• “Security deposit of ₹Y will be refunded within 15 days of vacating the premises after inspection.”

• “Annual rent hike of 8% to be applied from the 13th month onward.”

These clauses can save you from unnecessary disputes and secure your finances.

Final Thoughts

Whether you're a tenant renting your first flat or a landlord leasing your property in Bangalore, a rental agreement is your most important financial document in the entire process. From securing your money to making you eligible for tax benefits, it plays a bigger role than most people realize.

Thanks to digital platforms like NoBroker, LegalDesk, and others, you can now create a rental agreement in minutes, at a lower cost, and with full legal protection — all without stepping out.

💡 Pro Tip:

Before signing, always read the agreement carefully or have a lawyer review it. Keep both soft and hard copies for your financial records.

5 Reasons Why Women Should Get Life Insurance

Women wear many hats, play many roles, some of which include providing for their family. In the current situation, most women are the sole breadwinners of a family. In such a scenario, it pays to think twice about how little control we have over the events of our lives, namely birth and death.

In the unfortunate event of a disability, lay-off or demise of a loved one, especially a breadwinner of the family, the dependents are left to fend for themselves. Which is why, it is important to make prior arrangements that will help your dependents financially even in your absence. Fortunately, in India, we have excellent insurance plans that are designed specifically to meet the financial needs of women.

Why should women get life insurance?

Purchasing a life insurance plan can be beneficial to you and your family in many ways. The following are the reasons why women should get life insurance:

• Longer average lifespan: The average lifespan of women is longer than men. Therefore, insurance companies offer better life cover for women at a nominal cost.
• Discounts: Some insurance providers offer special discounts for women policyholders of certain age and to those in good health.
• Breadwinners: Whether you are a career woman or a part-time worker, it helps to have a comprehensive life insurance cover that offers savings in addition to life cover. In the unfortunate event of the demise or disability of the life insured, the family will be provided death benefit to help them through the monetary loss.
• Exclusive insurance plans for women: Insurance providers are now offering plans that are specifically designed to meet the needs of women. Choose a plan that offers maturity benefit and critical illness rider in addition to life cover and savings. Some plans offer cover for pregnancy and childbirth related complications.
• Monthly income: Few life insurance cum investment plans offer monthly income to the dependents in the unfortunate event of the demise of the life insured to meet financial contingencies. Some plans offer regular cash payouts and allow partial withdrawals to enable policyholders to meet urgent financial requirements.

Top life insurance plans for women in India

Some of the top life insurance plans provided for women in India includes:

• SBI Life Smart Women Advantage Plan: This a traditional endowment plan, offering life cover, savings, and critical illness benefit to women. With this comprehensive insurance plan, designed exclusively for women, policyholders have the optional benefit of receiving cover for pregnancy and childbirth related complications.
• Shriram New Shri Vivah Plan: Wedding is an important part of one’s life. Shriram Life Insurance offers an excellent life insurance plan to loved ones embarking on a marital journey. This is an affordable insurance policy, offering double life insurance cover, monthly income in the unfortunate event of the demise of a loved one, maturity benefit, and bonuses.
• HDFC Life Smart Women Plan:  This a life insurance cum investment plan, designed to cater to specific events in a woman's life such as career, marriage, and health. It allows partial withdrawals and additional cash payouts to help with urgent financial requirements.
• LIC Jeevan Bharati-I Plan: This life insurance plan is offered by Life Insurance Corporation of India exclusively to women. The plan comes with the option to add 3 different riders for enhanced protection such as the Accident Benefit Rider, Congenital Disability Benefit Rider, and Critical Illness Benefit Rider.
• TATA AIG Wellsurance Women Plan: With this health insurance plan for women, policyholders can get a fixed lump sum benefit for 11 critical illnesses, daily hospital cash benefit, convalescence benefit, and cosmetic reconstruction surgery benefit for accidental injuries.

When choosing a life insurance plan, it is advisable to do sufficient research and purchase the insurance plan one that best suits your insurance needs. Most insurance companies have made it easy for customers by arranging for a personal insurance advisor to guide them with the selection process.

What was expected by the Insurance Industry from Union Budget

The Union Budget 2017 is of great significance as it came with reformatory measures touching all important facets of the Indian economy. But one of the striking aspects of the 2017 budget presentation was that the railway budget was combined with the general budget. In its second half of governance, the BJP led government is pushing forward all the plans and policies formulated in the first half and capitalizing over the same. Analysts observe that this move by government will find its intended results in the 2019 general elections. Furthermore, it is the first time in decades that a Union Budget has been presented on the first day of February, a slight deviation from the traditional way of budget presentation. It clearly conveys that the government is highly determined to start with the implementation part of the finance bill before the current fiscal year ends. Another notable feature of the Union Budget is that it was announced at a time when several national and international events of economic importance were taking place in the country.

Effects of demonetization

The high quantum of cash deposits in banks in a very short period is a clear indicator of the success of the demonetization move. It is expected to bring positive changes on the economy as a whole, since the income tax collection rates too will improve in the coming days. And now with the increase in tax exemption slabs, the short term decline in consumption which largely affected the retail sector will also be counterbalanced. Even though the government has been taking steps to fully digitalize currency transactions, it is also suggestible that an efficient mechanism be devised to stop further creation of black money.

Life Insurance and Union Budget

Life insurance industry has a key role to play in the development of a nation. Life Insurance is one of the most important financial tools that support long-term investments and comes next to banks in terms of customer preference. Furthermore, it was the largest contributor in the infrastructure development sector with over Rs.3 lakh crores of investments in the fiscal year 2016. Insurance companies also hold a considerable share in government securities and it was at 22% as of March 2016. Insurance analysts suggest that more effective reforms should be implemented to bring the industry on par with other comparable products in the financial market.

At present, government requires every insurance company to invest 50% of its life fund in government securities, which is much higher when compared to the 20.75% Statutory Liquidity Ratio (SLR) applicable to banks. This rule if relaxed will highly benefit the insurance segment as a whole and will pave way for improvement of fund performance. Apart from the tax exemptions given in Section 80C, the government should have specified an additional limit on deductible amount underscoring life insurance. Such a change will encourage more people to opt for life insurance plans and gain financial stability and protection through long term investments.

Tax treatments should be based purely on the nature of the products and not the platform that offers them. For example, the tax exemptions on NPS is much higher than the benefits offered for life insurance plans. Experts suggest that the life insurance policies should qualify as capital asset and only the returns on maturity should be taxable.

But on the whole, the budget didn’t have much to offer to the insurance sector. The increase in taxable income limits could have been augmented with a similar increase in the tax exemption limit of insurance policies. However, in a move to promote insurance as a risk mitigation tool, the government has upped the protection offered under Pradhan Mantri Fasal Bima Yojna (PMFBY) to cover 40% of crop area.

At present, the government aims at pursuing the long term goals for economic development by focusing on areas such as rural development, digitization, infrastructure development, etc. In general, the insurance sector needs a gentle push to bring the desired outcomes. The following points needs to be looked upon for boosting the insurance penetration in the country:

• Higher tax exemptions on insurance products
• Home insurance to be made mandatory
• Annuity to be moved out of tax bracket
• FDI relaxations