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Things to know before leaving your cushiony job to become an entrepreneur

When you are in a full-time job with a steady salary flowing into your bank account, it is easy to ignore your taxes.

Things to know before leaving your cushiony job to become an entrepreneur
Starting your own business means leaving a regular paycheck and tossing benefits aside.

No matter your current role, when work gets too stressful and monotonous, when each day rolls by and you cannot wait for the weekend, and if you already know that your future does not include an ordinary 9–to-5, striking out on your own sounds like the perfect solution.

The thought of starting a new chapter in your life, following your passion, and being your own boss where you can call your own shots can be thrilling and exciting. As a matter of fact, life as an entrepreneur is not always alluring. Until you reach a certain threshold of income and success, you feel like you are playing a game of monopoly that never ends.

Starting your own business means leaving a regular paycheck and tossing benefits aside. There is a ton of risk. Before you do anything reckless and enter the uncertain world, it is important to build a comprehensive plan, from ideation to ongoing development.

Below are a few takeaways that a budding entrepreneur or a new business owner should take in consideration:

  1. Managing cash flow
  2. Finding your niche and marketing your value
  3. Building effective sales funnel
  4. Knowing your competition
  5. Looking for windows for scalability
  6. Tackling operational challenges
  7. Keeping up with the entrepreneurial burnout
  8. Opting for quick sales tactics rather than long term development
  9. Expansion into new market

When you are in a full-time job with a steady salary flowing into your bank account, it is easy to ignore your taxes. You do not have to worry about that; and you reap all those extra benefits like insurance and pension contributions.

As you start working for yourself, you will need to wake up and get on top of both your business and personal finances. Before you start, you will want to make sure that it is going to work for your personal situation—whether you have student loans, large mortgage payments, family and or young kids to take care of.

Thus, it is important to get super clear on your finances before you let it all run away with you and you find yourself in a sticky situation. Though insurance is a topic of concern for many looking to leave their jobs, you can find suitable options. Let’s find out about HDFC Life Sanchay Plus and figure out if this plan should find a place in your insurance and investment portfolio.

Features of HDFC Life Sanchay Plus Plan

  • Flexibility: The plan offers flexibility to the insured, wherein you can claim guaranteed benefit which can be used either in form of regular income or lump sum amount.
  • Long-term Income Option: The plan provides the long-term income alternative wherein the insured can obtain guaranteed income for the fixed term of 25 years to 30 years.
  • Life-long Income Option: The insured will most likely receive the guaranteed income till 99 years of age under the HDFC Life Sanchay Plus.
  • Assured Returns: With this plan, the insured receives the assured returns and remains insulated from any of the market-risks.
  • Tax Benefits: The HDFC Life Sanchay Plus premium paid remains tax exempted within the Section 80C. The tax benefit is subject to changes in tax laws.

Apart from the above-mentioned features, some other features offered by the policy are:

  • Grace Period: In case the policyholder fails to pay the premium of the policy within the premium payment date, then a grace period of 30 days is offered to the policyholder to pay the premium of the policy.
  • Free-look Period: A free-look period of 15 days is offered to the policyholder from the date of policy initiation during which the insured can cancel the policy if he/she is not satisfied with the terms and conditions of the policy.
  • Policy Surrender Value: The policy acquires guaranteed surrender value (GSV) in case the premium payment of at least the first two years of the policy is done. The minimum guaranteed surrender value should be the sum of total premium paid and guaranteed additions, already accrued to the policy, if applicable.
  • Policy Loan: Once the policy acquires the surrender value, the policyholder can avail policy loan up to 80% of the surrender value of the policy, subject to the applicable terms and conditions.

There is no one-size-fits-all solution when it comes to a financial/insurance strategy. So, you need to look at your requirements and your portfolio to make a choice. If you still cannot make up your mind, seek professional assistance and get details of the HDFC Life Sanchay Plus policy today!

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First published on: 29-11-2022 at 11:26:35 am