Insurance Terms and Conditions

TERMS OF SERVICE FOR INSURANCE 

The online platforms – www.finity.in (“Website”), and the iOS and Android mobile application – “Finity” (“App”) is owned and operated by Finwizard Technology Private Limited, a private limited company incorporated under the Companies Act, 2013 with its registered office at Queens Paradise, 1st Floor, Curve Road Shivajinagar, Bangalore- 560052, Karnataka, India (“Finity”). The App and the Website shall be collectively referred to hereinafter as the “Platform”.

Finwizard Technology is registered with the Insurance Regulatory and Development Authority of India (IRDAI) bearing Certificate of Registration No. CA0505 valid up to 19th June 2020 to act as an Insurance Corporate Agent (Composite) and thereby authorized to solicit and service life insurance business. Your access and use of the Platform for insurance products (“Insurance Service(s)”) shall be subject to the terms and conditions mentioned below (“Insurance Terms and Conditions”).

Please read these Insurance Terms and Conditions carefully before accessing or using the Platform or any part thereof. By accessing or using any part of the Platform, you agree to be bound by these Insurance Terms and Conditions. If you do not agree to all the terms and conditions herein, then YOU MAY NOT ACCESS THE PLATFORM OR USE ANY SERVICES PROVIDED BY MYWAY.

These Insurance Terms and Conditions form a legal and binding agreement between the you and Finity and is made pursuant to the terms of the Information Technology Act, 2000.

Your personal data will be stored and collected by Finity. By using the Finity and/or registering yourself at Finity you authorize Finity (including its representatives, affiliates, and its business partners) to contact you via email or phone call or sms and offer you our services for the product you have opted for, imparting product knowledge, offer promotional offers running on Finity and offers by its business partners and associated third parties, for which reasons your information may be collected in the manner as detailed under this Policy. You hereby agree that you authorize Finity to contact you for the above mentioned purposes even if you have registered yourself under DND or DNC or NCPR service(s). Your authorization, in this regard, shall be valid as long as your account is not deactivated by either you or us.

Purposes of collection of your data
Finity collects your information when you register for an account, when you use its products or services, visit its Website’s pages. When you register with Finity, you are asked for submitting certain information which may be personal to you such as name, mobile number etc. Once you register at the Website and sign in you are not anonymous to us. Also, you are asked for your contact number during registration and may be sent SMSs, notifications about our services to your wireless device. Hence, by registering you authorize the Finity to send texts and email alerts to you with your login details and any other service requirements, including promotional mails and SMSs.

1.     ELIGIBILITY

You represent and warrant that you (a) are at least 18 years old; (b) competent to form a binding contract under the Indian Contract Act, 1872; (c) have not previously been suspended or removed from using Finity’s Services and/or the App or any part thereof.

2.     YOUR ACCOUNT

If you wish avail of the Insurance Services, you are required to maintain an account on the App (“Account”). You will be required to furnish certain information and details, including your name, email id, contact number, financial information, and any other information deemed necessary by Finity in order to create such Account.

You understand that you are responsible for maintaining the confidentiality and security of your Account including log-in details and the password. You agree to accept responsibility for all activities that occur through your Account. You should take all necessary steps to ensure that the password is kept confidential and secure and should inform Finity immediately if you have any reason to believe that your password has become known to anyone else, or if the password is being, or is likely to be, used in an unauthorized manner.

You represent and warrant that all information, data and documents provide by you (a) for creating of the Account; and/or (b) through your Account are true, correct, accurate and up to date. In the event of any change, you agree to update the details on the Account in a prompt and swift manner. You further represent and warrant that at the time of making any new Account, you do not currently have an existing account on the App.

3.     PROHIBITED USES

You shall not use or access the Insurance Services:
a. for any unlawful purpose;
b. to solicit others to perform or participate in any unlawful acts;
c. in a manner so as to violate any international, federal, provincial or state regulations, rules, laws, or local ordinances in India;
d. in a manner so as to infringe upon or violate Finity’s intellectual property rights or the
intellectual property rights of others;
e. to harass, abuse, insult, harm, defame, slander, disparage, intimidate, or discriminate based
on gender, sexual orientation, religion, ethnicity, race, age, national origin, or disability;
f. to submit or create false or misleading information;
g. to upload or transmit spam, viruses, or any other type of malicious code that will or may be used in any way to adversely affect the functionality or operation of the Service or of any related website, other websites, or the Internet;
h. to harvest or collect any information of the users of the Platform, including using any robot, spider, site search or retrieval application, phishing, or other manual or automatic device or process to retrieve, index or mine data;
i. for any obscene or immoral purpose; or
j. to interfere with or circumvent the security features of the Service or any related website,
other websites, or the Internet.

4.     LICENSE BY MYWAY

a.  All intellectual property in or of the App and Website belongs to or is licensed to Finity. Finity grants you a limited, non-transferable and revocable license to access and use the Platform or any part thereof for availing the Insurance Services, but not to download any material from it (other than page caching) or modify it, or any portion of it for commercial use. Any unauthorized access to the Platform (or any part thereof) or any networks, servers or computer systems connected to the Platform and any attempt to modify, adapt, translate or reverse engineer any part of the Platform or re-format or frame any portion of the pages of the Platform is not permitted without Finity’s express written consent.

b. This license is non-transferable and does not permit any resale or commercial use of this Platform or its contents; any downloading or copying of account information for the benefit of anyone other than your use; or any use of data mining, robots, or similar data gathering and extraction tools.

c. The Platform or any portion of the Platform (including but not limited to any copyrighted material, trademarks, or other proprietary information) may not be reproduced, duplicated, copied, sold, resold, visited, distributed or otherwise exploited for any commercial purpose without express written consent of Finity, as may be applicable. Any unauthorized use of the Platform shall terminate the permission or revoke the license granted by Finity herein.

5.     TERMS FOR INSURANCE SERVICES

a. Finwizard technology is registered with the Insurance Regulatory and Development Authority of India (IRDAI) bearing Certificate of Registration No. CA0505 valid up to 19th June 2020 to act as an Insurance Corporate Agent (Composite) and thereby authorized to solicit and service life insurance business.

b. Finity does not underwrite the policies or act as an insurer. Insurance products will be underwritten by the Insurance Company based on your choice of policy (“Policy”). The Policy is a contract between you and the Insurance Company, and will be the subject matter of solicitation.

c. Any information that Finity displays on its Platform regarding the Insurance Company or the Policy (“Insurance Information”) will be as per the information provided to Finity by such Insurance Company. Finity provides such information to you ‘as-is’ with all faults and to the maximum extent permitted under law, Finity does not make any representations or warranties as to the accuracy or completeness of such information. Finity will not be liable for any consequences you may face as a result of your reliance on such information. You are advised to carefully read and understand the terms of the Policy that you intend to purchase. You can reach out to Finity at ask@finity.in for any questions.

d. The acceptance of the premium and final issuance of the Policy is subject to the underwriting norms and discretion of the Insurance Company. Finity shall not be responsible or liable to anyone on account of any delay, failure or refusal by the Insurance Company to accept the premium or issue the Policy to you, however, in such an event, Finity will endeavor to provide all reasonable assistance to you.

e. Finity will only assist you in payment of premium, and provide assistance in the event of a claim. Finity is not the insurer and is not responsible for and has no control over the settlement of any claims, which shall be entirely subject to the terms of the Policy. Finity will not have any obligation or liability for any delay in settlement or non-acceptance of any claims by the Insurance Company. Any grievance you may face in this regard will need to be raised with the Insurance Company and appropriate authority for redressal.

6.     THIRD PARTY MATERIAL AND SERVICES

Finity may provide you links to third party services (“Third Party Services”) and may display, include or make available content, data, information, applications or materials from third parties (“Third Party Materials”). You acknowledge and agree that Finity is not responsible for examining or evaluating the content, accuracy, completeness, timeliness, validity, copyright
compliance, legality, decency, quality or any other aspect of such Third-Party Materials or Third Party Services. MYWAY DOES NOT WARRANT OR ENDORSE AND DOES NOT ASSUME AND WILL NOT HAVE ANY LIABILITY OR RESPONSIBILITY TO YOU OR ANY OTHER PERSON FOR ANY THIRD-PARTY SERVICES, THIRD PARTY MATERIALS OR WEB SITES, OR FOR ANY OTHER MATERIALS, PRODUCTS, OR SERVICES OF THIRD PARTIES.

7.     DISCLAIMERS

TO THE MAXIMUM EXTENT PERMITTED BY LAW, Finity, its affiliated companies, subsidiaries, officers, directors, employees or any related party disclaim any liability to you or to any third party for any indirect, incidental, special or consequential damages or any loss of revenue or profits arising under or relating to these Insurance Terms and Conditions.

TO THE MAXIMUM EXTENT PERMITTED BY LAW, you waive, release, discharge and hold harmless Finity, its affiliated and subsidiary companies, and each of their directors, officers, employees, and agents, from any and all claims, losses, damages, liabilities, expenses and causes of action arising out of your use of the Platform and/or the Insurance Services.

8.     INDEMNITY

You agree to indemnify, save, and hold Finity, its affiliates, contractors, employees, officers, directors, agents and its third party associates, licensors, and partners harmless from any and all claims, demands, losses, damages, and liabilities, costs and expenses, including without limitation legal fees and expenses, arising out of or related to your use or misuse of the Insurance Services or of the Website or App, any violation by you of these Insurance Terms and Conditions, or any breach of the representations, warranties, and covenants made by you herein or your infringement of any intellectual property or other right of any person or entity, or as a result of any threatening, libellous, obscene, harassing or offensive material posted/ transmitted by you on the Website and/or the App.

9.     SUSPENSION OF ACCESS

Finity may choose to stop providing the Insurance Services hereunder, and may terminate access to or use of the App at any time without any notice. Other than where Finity informs you otherwise, upon any termination, (a) the rights and licenses granted to you under these Insurance Terms and Conditions will end; (b) your Account shall be suspended; and (c) you must stop using the App. Finity reserves the right to suspend or cease providing any Service and shall have no liability or responsibility to you in any manner whatsoever if Finity chooses to do so.

10.     PRIVACY

Finity will collect, store and disclose your information in accordance with the Privacy Policy available at www.finity.in. In particular and without limitation, Finity will share your information with Insurance Companies to provide you with the Insurance Services hereunder.

11.     APPLICABLE LAWS

Your use of this Platform and these Insurance Terms and Conditions stated in this agreement is subject to laws of India. In case of any disputes arising out of the use of the Platform or any part thereof, Courts of Bangalore, India will have exclusive jurisdiction.

12.     GRIEVANCES

You can reach out to Finity at ask@finity.in to raise any questions, complaints, grievances or feedback.

What moved my market: Telecom Sector Relief, PSU stake sale & many more….

Indian equity indices remained marginally higher this week. The S&P BSE Sensex closed at 40,359 up by 0.01% and Nifty 50 closed at 11,914 up by 0.16%.

Weekly Capsule

  • Cabinet approves the sale of 5 PSUs including BPCL, Shipping Corp, CONCOR
    (Selling these assets will be key to the government meeting its ambitious target of generating INR. 1.05 trillion from asset sales in the current fiscal year. The government’s decision to boost corporate taxes to boost the economy and attract investments has left Finance Minister Sitharaman struggling to meet the year’s fiscal deficit target of 3.3% despite receiving an INR. 1.76 trillion windfalls from the Reserve Bank of India.)
  • Relief to telecom sector: Cabinet gives nod to a two-year moratorium on spectrum payments
    (Telecom companies get a two-year moratorium to pay their spectrum auction dues. Deferment of spectrum auction installments would ease the cash outflow of the stressed telcos and facilitate payment of statutory liabilities and interest on bank loans. Continues operation by telecom providers, would give a fillip to employment and economic growth.)

Fund alerts:

  • Aditya Birla Sun Life Mutual Fund has proposed to change the name of Aditya Birla Sun Life Short Term Opportunities Fund to Aditya Birla Sun Life Short Term Fund, with effect from November 21, 2019.
  • Franklin Templeton Asset Management has amended its schemes to enable side pocketing. Side Pocketing allows mutual funds to set aside a portion of their units in lieu of bad debt. The move comes close on the heels of Ind-Ra’s downgrade of Vodafone Idea debt on 1st November to BBB.

Key events to watch next week:

The GDP maths: All eyes are on the July-September GDP growth figure as the debate rages on how to shore up the economy. With growth slumping to a multi-year low of 5 percent, efforts are on to spur consumer demand and investment. On top of that, a slowdown in manufacturing and construction is adding to the worry lines. The GDP data is due on November 29.
Along with GDP data, Fiscal deficit data and Eight Infrastructure Industries data will be released for the month of October on 29th November.

Bottom line:

We believe the Markets are likely to remain range-bound in the coming week and look out for positive triggers that will boost investor sentiments. Market participants will continue to track global factors like the US-China trade deal, crude oil price and currency movement.
Returns have been concentrated in select index leaders while the broader markets underperformed, this presents an opportunity to benefit from the current market distortions. We believe the Multi-Cap and Mid Cap strategies are ideally positioned to benefit meaningfully from the likely revival while Large Cap funds can be part of any investor’s core portfolio allocation.

Smart Wallet Insurance – First-Aid Kit for Your Digital Money

It is no longer odd to find auto wallas accepting wallet payments or your food delivery guy coming in with a mobile swipe machine. What is odd is the fact that most of the financial fraudulent activities, happen through online transactions or loss/theft of card and this is in our lowest priorities for insurance. Moreover, based on accumulated statistics, as on August 2018, there are over 980 million active debit cards and counting in India while the credit cards numbers are over 41 million. Imagine the volume of online transactions being made on any given day!

So, who or what will protect debit/credits and online transactions? The answer is Smart Wallet Insurance. 

What is Smart Wallet Insurance?

In the case of loss of card, this scheme protects you against fraudulent activities, mobile wallet protection, personal accident cover and assistance for blocking the wrongful usage of your cards and much more.

How is Smart Wallet Insurance Beneficial to You?

Smart Wallet comes loaded with multiple benefits and features and here are the ones that matter:

  • Lost/Theft of Card/Wallet Liability & Card-blocking Assistance: If you lose your debit or credit card or if it is stolen, this insurance provides you protection in liability and card blocking assistance.
  • Mobile Wallet Protection:  With wallet payments on the rise, this cover protects all your transactions made through online mobile payment wallets.
  • ATM Cash in Transit: In case your card is lost or stolen during a transaction at an ATM, this card provides card-blocking assistance and covers loss of liability.
  • Unauthorized Fraudulent Card Usage: Smart Wallet covers unauthorized fraudulent usage on Cards owing to:
    • Skimming
    • Counterfeiting
    • Phishing
    • Compromised Cards.
  • Personal Accident Cover: The Insured under this cover is paid for accidental bodily injury solely and directly caused by accidental, violent, external and visible means resulting in accidental death or Permanent Total Disablement or Permanent Partial Disablement within twelve (12) calendar months of the occurrence of such injury.
  • Personal Accident Benefit: Smart Wallet Insurance also gives you personal accident cover where a sum is assured as a benefit in the case of any accidental event.

FAQs About Smart Wallet Insurance 

Who Can Apply for A Smart Wallet Insurance?

Anybody with an active bank account, associated debit or/and credit card can apply for this protection in India.

 

Can the spouse of the Smart wallet policyholder receive coverage through this policy?

This cover if opted for extends all the other coverages selected, to the spouse of the Insured where the maximum liability for any and all claims made by anyone Insured Person and/or his or her spouse shall be limited to the total Sum Insured in the policy.

 

What is Cash Advance Assistance under Smart Wallet?

The cover provides Emergency Cash Assistance to the Insured in the case of Loss of Card. 

 

Will Smart Wallet cover incidents occurring in sporting events?

Any claim arising out of sporting activities in so far as they involve the training or participation in competitions of professional or semi-professional sports persons, Adventure Sports unless declared beforehand and necessary additional premium paid is exempted from cover.

 

Now that you are aware of how the Smart Wallet insurance acts as a First-Aid box for your digital money and much more, apply for this simple yet comprehensive policy today, only on Fisdom.

Hope with Hospicash

It is essential to note that mediclaims do not provide an allowance for every cost incurred at the time of hospitalization. Hospicash takes care of some of these expenses conveniently and hassle-free. It comes also with several enhanced benefits and does not require any medical check-ups for application, unlike other health insurance policies. But first let’s understand what Hospicash is and how can it aid you at the time of crisis.

Whats is Hospicash?

Hospicash provides cash benefits in the case of hospitalization. With this benefit, you get a certain fixed amount of cash for each day of hospitalization.

What Are The Major Benefits of Hospicash?

    • No Paperwork: Hospicash does not require any paperwork and can be applied online, instantly.
    • No Medical Examination Required: Unlike, other health insurance schemes, there isn’t any requirement of a medical check-up before application.
    • Enhanced Accident, ICU & Convalescence benefit: All the benefits against accident, ICU and convalescence are upgraded for this policy.
    • Instant & Hassle-Free Claim Settlement: It’s instant and it’s easy to settle Hospicash claims with the adequate documentation in hand.
    • Daily Hospicash benefits on Hospitalization: Hospicash gives its holders the convenience of a special allowance for daily expenses.

 

How to Make A Claim For Hospicash?

Here are the steps for claiming your Hospicash policy:

 

  1. The claims require documentation based on the requirements of the policyholder as proof. Submit the adequate documents with the filled claim form.
  2. If there are any issues in the documentation the insurance provider will send a deficiency letter to the claiming party, within 7 days of receiving the claim application.
  3. Once all documents have been received the insurance company will send an offer of settlement and an adjoining statement within 30 days of having received the application successfully.

 

FAQs on Hospi Cash

 

 

How long can I avail the Hospi Cash benefits for?

 

 

You can avail daily hospitalization benefits for up to 30 days.

 

 

How much do I have to invest in HospiCash per year for Rs. 45,000?

 

 

For sum assured of Rs. 45,000 and it can be availed with a premium of approximately Rs. 750 per year.

 

 

What is the minimum sum assured that I can avail in Hospi Cash?

 

 

You can apply for a minimum sum assured of Rs. 2,500.

 

 

What is the maximum sum assured amount that I can be insured for, in Hospi Cash?

 

 

You can apply for a maximum sum assured amount of Rs. 1,50,000

 

 

Do I need to get a medical check-up for this insurance?

 

 

No, you do not need any medical check-up to apply for this insurance.

 

Hosipcash is easy to apply for, hassle-free and covers a lot of hospitalization expenses on a daily basis to help you hope and relieve you of the financial stress involved in hospitalization costs.

Plan Your Financial Future with ELSS or else…

If you are someone who is looking at Section 80C investments not just for tax-savings, but also for aligning your long-term investment goals such as retirement planning or buying a house ELSS could be you’re the right choice of investment for you.

Tax planning is not only about saving taxes but also an opportunity for wealth creation to achieve future financial goals. If you are genuinely looking capital appreciation then why not look at ELSS as an investment option where the returns have outperformed all the other investment options by a huge margin.

What are ELSS Funds?

ELSS or equity-linked savings schemes are tax saving mutual fund investments which invest the majority of their corpus in equity and equity-related instruments. ELSS is the only option under Section 80C which allows you to reap the benefits of the returns generated by the equity markets and at the same time offer complete tax shield at the lowest cost possible.

How Can ELSS Funds Benefit You?

Here are some of the important benefits that make ELSS, the best mutual funds to invest in tax saving:

ELSS Returns: Gives You the Opportunity for More

These funds primarily invest in equities and equity-related instruments. Though equity returns are extremely volatile in short-term, in the long run, equities can provide superior returns. An investor with a long-term investment horizon can expect annualized returns between 12 to 15%.

Lowest Lock-in period

As compared to other tax saving investment options under Section 80C of the Income Tax Act, 1961 ELSS have the lowest lock-in period of 3 years. In all the other alternatives the lock-in period varies from anywhere between 5 to 15 years with the restriction on withdrawals.

Tax Efficiency

From a taxation perspective, ELSS enjoys the triple tax advantage. The amount invested in ELSS up to the limit of Rs.1.5 lakh is exempt under Section 80C. ELSS funds are equity-oriented with dividend income and the long-term capital gains on them are exempt from tax thus making the maturity proceeds entirely tax-free for an investor.

Whereas, in case of tax-saving FDs, post office FDs and NSC the interest earned is taxable as per your income tax slab; investments in NPS and pension plans are taxed at the time of maturity. Insurance is also an EEE (exempt-exempt-exempt) investment but it is not a pure investment product. Though PPF enjoys the EEE benefit like ELSS, investments in PPF are extremely illiquid with the highest lock-in period.

Opportunity to Create Wealth with ELSS

Equity markets though volatile in the short run, historically, is the best asset class for wealth creation. ELSS funds are professionally managed which offer tax advantage and opportunity to participate in the equity markets.

Yes, the equity market has market risks but it doesn’t have the other risks like interest rate risk, reinvestment risk, liquidity risk, etc. Also, the investment allocation is conducted by fund managers who have adequate research and expertise to make the most out of the investment.

Hence, ELSS works as an easy investment option for multiple purposes and allows you to develop a healthy investment habit for a worry-free future.

 

 

ELSS – landing page

ELSS is the only mutual fund eligible under Section 80C for tax deductions. It is an equity mutual fund and

invests at least 80% of its total assets in equity and equity-related instruments.

Benefits of ELSS

Save you up to ₹ 46,800
in taxes
Earn returns as high
as up to 18%
Lowest Lock-in Period
of just 3 year
Get Instant Tax
Investment Proof
Invest in ELSS

Learn more about ELSS

Blog Title

Don’t miss to Save Tax this season with Finity App

Download Now

NPS – landing page

The National Pension Scheme is initiated by the Government of India to provide pension opportunity

to every Indian citizen and help cultivate the habit of saving for retirement.

Benefits of National Pension Scheme (NPS)

Save additional tax up to ₹ 15,480
under Section 80CCD(1B)
Withdraw money after 60 years
of age for a secure future
Earn up to 12% returns on your
investment without taxation
 Regulated by Govt. of India (PFRDA)
with strict investment norms
Invest in NPS

Learn more about NPS

Gift Yourself A Happy Retirement: National Pension Scheme

Save Tax now in minutes with Finity App

Download Now

Hospicash – landing page

Hospicash provides cash benefits in the case of hospitalization. With this benefit, you get a

certain fixed amount of cash for each day of hospitalization.

Thank you for connecting with us.

Here’s why you need Hospicash:

Get the benefits of Hospicash in minutes with Fisdom app

Download Now

Smart Wallet – landing page

In the case of card loss, Smart Wallet protects you against unauthorized fraudulent activities, provides mobile wallet protection,

personal accident cover and assistance for blocking the wrongful usage of your cards.

Choose from Exclusive Cover Options

Here’s why you need a Smart Wallet Cover:

Card-Blocking Assistance
Mobile Wallet Protection
ATM Cash in Transit
Lost Card/ Wallet Liability

Get the benefits of Smart Wallet in minutes with Fisdom App

Download Now

Gift Yourself A Happy Retirement: National Pension Scheme

‘Baby Boomers’ or our ‘Mommas’ and ‘Papas’ have been lucky to be the last generation of people who have received pensions from their employers, post-retirement. At least some of them did. At their time, it did not matter whether a person worked in a government school or a private company; they were eligible for a pension. However today, except for people working in Government services and organizations, the private sector does not offer pensions. Even the pension for Government employees may not be enough for the rising cost of living and deal with inflation.

National Pension Scheme is one such investment that can be made during an individual’s employed or self-employed days to sustain themselves post-retirement. This not only acts as savings but helps you to save tax as well, when you invest in it. It is indeed a gift that you give your future-self.

What is National Pension Scheme (NPS)?

The Government of India started the National Pension Scheme under the Pension Fund Regulatory and Development Authority (PFRDA). National Pension Scheme is an after retirement age security coverage to all citizens who have opted for this scheme. It is a voluntary scheme that can be subscribed for pre-retirement.

Tax Benefits of National Pension Scheme

Based on Union Budget 2019, NPS now qualifies to be an Exempt-Exempt-Exempt (EEE) category product. This means that NPS tax is exempted at all 3 stages. Here is how you benefit from it:

  • Tax deductions up to 1.5 lakh per annum under Section 80CCD of the Income Tax Act.
  • Additional tax deduction up to Rs. 50,000 under Section 80CCD(1B) in a financial year. (only Tier 1 accounts are eligible, not Tier 2)
  • At term completion or 60 years, 60% of the amount received is free from tax, while the rest 40% has to be invested in annuity.

Other Benefits and Features of National Pension Scheme

National Pension Scheme comes loaded with certain features and benefits that can prove to be useful for both your long-term and short–term goals:

  1. Returns: You can expect a return of up to 12% NPS. The return percentage is dependent on the type of National Pension Scheme that an individual chooses which is then calculated by the government-appointed Pension Accounting Office.
  2. Regular Income Post-Retirement: The scheme investor is eligible to receive monthly pension amounts to be able to sustain a comfortable living for their future.
  3. Flexible: An NPS account can be operated from every nook and corner of India irrespective of individual employment and location. You can also switch between funds in NPS.
  4. Portable: NPS scheme holders can move from one sector to another like Private to Government or vice versa or Private to Corporate and vice versa. The NPS account will always be the same no matter wherever you go. Even if you leave your job, you can continue using the same account.           

Eligibility Criteria for National Pension Scheme

The following criteria should be met to be eligible for investing in the National Pension Scheme:

  • Applicant should be a citizen of India.
  • He/she/they should be over 18 years of age and less than 60 years of age.

Types of National Pension Scheme Accounts

There are two types of accounts for NPS and individual may subscribe for:

  1. Tier 1
    It is a mandatory account for all those who opt for NPS.
  • The Government employees have to contribute 10% of their salary (salary = basic + DA), and the government will make equal contributions as well.
  • For others opting this scheme, the initial contribution is Rs. 500/- at the time of account opening and minimum annual contribution is Rs. 1000.
  1. Tier 2
    Not a compulsory account like Tier 1. You can withdraw funds at any time, and hence, it provides high liquidity. There are no contributions from the government or the employers and include no tax exemptions either. There are three critical points to make a note of:
  • The minimum amount required to open this account is Rs. 1000/-
  • Minimum monthly contributions amount to Rs. 200/-
  • Necessary to hold a minimum balance of Rs. 200/- every financial year.

What Investment Options Do I Get?

  1. Active-choice: With this investment option, an investor gets to mix equity, corporate debt, and government securities as per his/ her choice. However, the allocation of equity can be a maximum of 50%.
  2. Auto- choice: Allocation is done based on the investor’s age.
Equity Till the age of 35, the equity portion is 50%, post which it reduces 2% yearly till it becomes 10% by the age of 55.
Corporate Debt Till the age of 35, the corporate debt is 30 %, post which it reduces 1% every year until it becomes 10% by the age of 55.
Other Options 1. Aggressive life-cycle fund – begin with an equity allocation of 75%
2. Conservative life-cycle fund – start with an equity allocation of 25%
Reduce as per the investor’s age advances.

Where to Create a National Pension Scheme Account?

Opening an NPS account is not that difficult now. It’s just a click away. You can easily invest in NPS online through the Finity App. We are a new-age app that makes it easy to invest in mutual funds, in a matter of minutes.

Withdrawal and Exit From NPS Account

If you retire at 60:

  • 40% of withdrawals are free from tax.
  • From the balance 60%, 40% minimum has to be used to purchase an annuity. The remaining 20% can be used to either buy an annuity or withdrawn by paying tax according to the tax slab.

If you retire before 60 years:

  • You would use 80% of your corpus to buy an annuity.
  • And withdraw the remaining 20% by paying the amount taxable according to the tax slab.
    Remember, the taxation of the amount via annuity is according to your tax slab. In the event of the account holder’s death, the nominee receives the entire amount.
Documentation for NPS Withdrawal

There are certain documents that require to be submitted for withdrawing money from your NPS account:

  1. A filled and signed withdrawal form
  2. Original PRAN card
  3. Copy of your Proof of Identity which must be self-attested
  4. A cancelled cheque of your active bank account

Now that you have a good idea about a National Pension Scheme and how it works it’s never too late to open an NPS account on Finity App.

Happy Investing!