India Gratuity Calcuation

India Gratuity

Employers are statutorily liable to pay amount of gratuity equivalent to 15 days of last drawn basic salary.It becomes payable to the employees who have completed five years of uninterrupted services in an organisation.For computing gratuity,number of working days in a month are considered 26 days.This is to done to provide benefit to the employees as it increases the amount of gratuity to be paid. The last drawn basic pay is divided by 26. The amount so obtained is multiplied by 15 to compute the amount of gratuity per year.

( (bp + da) * 15 * ns ) / 26

bp = Basic Pay
da = Dearness Allowance
ns = Number of years in service

India Insurance

Life Insurance
Protects your financial dependent loved ones in case you die
Term Life
Protects until the term the premium is paid. Its the cheapest way to be insured.
Whole Life
Protects as long as the insured lives.
Universal Life Insurance
Complicated product need to research on this
Money Back
Unit Linked Insurance Plan

Home loan protection plan
A home loan protection plan is one whereby in the event of your death or disability resulting in loss of income, a sum of money will be made available towards the repayment of your loan. This ensures that your family or dependants do not have to worry about the loan repayment and your home will not be taken away.

Lets take a quick example. Assume that you’ve taken a home loan for Rs.10 lakhs. In the next two years you’ve paid back Rs 2 lakhs of the loan amount and Rs.8 lakhs are yet to be paid. However, at this point you meet with an accident. No one else in your family is employed and therefore there is no income to make the home loan EMI payments due to the lender. In this case, if you have a home loan insurance, the insurer will repay the remaining amount of 8 lakhs on your behalf. However if you do not have home loan insurance you run the risk of your home being repossessed by the lender. Your loved ones could be left without the shelter of their family home.