Who is Ajit Jain, whom Warren Buffett always describes as his right hand

Ajit Jain (born 23 July 1951) is an Indian American executive who is the Vice Chairman of Insurance Operations for Berkshire Hathaway as of January 10, 2018.He was raised in India's coastal state of Orissa. Ajit Jain is an older cousin of Anshu Jain, who was the former Co-CEO of Deutsche Bank. 

Education

In 1972, Jain graduated from the IIT Kharagpur in India with a BTech degree in Mechanical Engineering

Career

From 1973 to 1976, Jain worked for IBM as a salesman for their data-processing operations in India. He was named "Rookie of the Year" in his region in 1973.He lost his job in 1976 when IBM discontinued their operation in India because they declined to allow any Indian ownership of the company, as was then required by law.

In 1978, Jain moved to the United States, where he earned an MBA from Harvard University and joined McKinsey & Co. He returned to India in the early 1980s and married. The Jains then moved back to the United States, as Jain's wife preferred to live there.

In 1986, he left McKinsey to work on insurance operations for Warren Buffett. Jain was invited by his former boss, Michael Goldberg, who had left McKinsey & Co. to join Berkshire Hathaway in 1982. At the time, he said he knew little about the insurance business.

In the annual letter to shareholders on 2014, it was suggested that both Jain and Greg Abel could be appropriate successors for Warren Buffett as CEO of Berkshire Hathaway.In January 2018, Jain was named Berkshire Hathaway's vice chair of insurance operations and appointed to Hathaway's Board of Directors.

Jain lives in the New York City area

Philanthropy

In 2005, Jain established the Jain Foundation, a non-profit organization located in Seattle, Washington, the mission of which is to cure limb-girdle muscular dystrophies caused by dysferlin protein deficiency, a condition that Jain's son has.Pallavi Jain Mittal, who earned her PhD in molecular biology from Brandeis University,was the initial President and CEO.In May 2017, Mittal formed In-Depth Genomics, an organization providing free whole-genome sequencing and analysis to people with rare diseases.

A Quick Guide: 8 Easy Steps to Get a Personal Loan in India - paisabazaar.com

A personal loan is a type of unsecured loan that does not require a collateral or security. Unlike a car loan or a home loan, a personal loan comes with flexible end use and can be availed to meet any personal expense. The application process of a personal loan is simpler as compared to other loans as the banks do no need to verify the details of any security or collateral. The only details that a bank requires to verify is the eligibility and credit worthiness of an individual availing the loan. Also, the online application and minimum documentation has made the whole process more approachable and simpler.

What Are the 8 Easy Steps to Get a Personal Loan in India?

The steps to apply for a personal loan in India are as follows:

1. Online/offline application: If you have planned to avail a personal loan, the first step would be to fill an application form asking for your personal as well as professional details. The form can either be filled online at Paisabazaar.com or offline by visiting the nearest branch of the bank. However, applying for a loan online will not only simplify the process but will also save your time
2. Bank verification: When bank receives your loan application, it starts verifying the information provided by you, including your personal as well as professional details and check if you meet the eligibility criteria including age, minimum monthly salary, profession, etc. If you are already an existing customer of the bank, your financial details like bank statements, previous loans (if any), etc. are immediately verified by the bank
3. KYC process: After your basic details are verified, the bank will start verifying your Know Your Customer (KYC) documents that you might have uploaded online along with the application form or would have submitted to the nearest branch. If you apply for a personal loan through Paisabazaar.com, the bank executive will come to your home or office to collect the documents
   
4. Address confirmation: The bank’s executive may make a visit to your home to confirm the address mentioned in the application. Also, if you are a self- employed individual, there are more chances of the bank’s executive visiting to confirm your office address
5. Credit score check: After checking your eligibility and completing the verification process, the bank will check your credit score and will see your past repayments, salary slips or IT returns
6. Loan approval: If you meet the eligibility criteria, your documents are verified and if your credit score is 750 or above, the personal loan would be sanctioned to you without any further delay
7. Loan amount, tenure and interest rate: The loan amount and interest rate that the bank will offer you will be based on your credit score, age, employer, number of years left in service, etc. The banks also offer you the opportunity to choose the repayment tenure (within the tenure range provided by the bank) on your own as per the repayment ability
8. Processing fee: Once everything is decided including the loan amount and tenure, you will have to pay a processing fee to process loan disbursal. After you have paid the fee, the personal loan amount will be disbursed to your account with 3-5 working days

A personal loan can solve your various purposes like paying medical bills, getting married, going on a vacation, purchasing consumer durable, etc. but it is important to borrow the amount that you can easily repay. Also, it is necessary to submit all the authentic documents and fill all the information correctly for smooth processing, approval and disbursal.

8 Myths About Personal Loans You Shouldn’t Believe

A personal loan is the most convenient and the quickest way to deal with any financial crises as it offers many benefits like quick online approval, flexible tenure, no restriction on end- use, instant disbursal, etc. Unfortunately, with so many benefits comes several half- baked theories too that often mislead people regarding a personal loan and compels them to look out for more expensive ways to deal with the financial emergency.

#Myth1. Only banks offer personal loans

Many people tend to believe that the banks are the only financial institutions offering personal loans. Yes, all the banks offer personal loans but there are many NBFCs like Bajaj Finserv, Tata Capital, HDB Financial Services and digital lenders like EarlySalary that also offers personal loans. When a bank rejects your personal loan application, you can contact these NBFCs and digital lenders for a personal loan as their eligibility criteria is bit flexible as compared to the banks.

#Myth2. Low credit score leads to loan rejection

A credit score is one of the most important factors considered to determine your personal loan eligibility. However, a credit score do not entirely impact your loan approval chances. A credit score of 750 or above is considered healthy by the lenders but if you have a low credit score (less than 750) other factors like your income, employer, etc. can save your loan application. In such a case, the interest rate will be on the higher side but you have the chances of getting a personal loan.

#Myth3. Only salaried individuals can avail a personal loan

It is a very common misconception that only salaried professionals with steady flow of income can avail a personal loan. Self-employed individuals/professionals like businessman, CA, doctors, etc. can also apply for a personal loan and the lenders will evaluate their credit score and ITR before sanctioning the loan. Some of the banks also offer a personal loan to pensioners.

#Myth4. The processing time is long

It is believed by many that the processing of a personal loan consumes a lot of time and there are a lot of formalities involved. This is not true. These days with banks being digitalized, you can easily apply for a personal loan online and can process your loan application just by uploading minimum documents. Also, you can avail an instant approval online and the amount would be disbursed to your account within 3-5 working days.

#Myth5. Interest rates are high on a personal loan

A lot of people think that interest rates on a personal loan are high. But do you know that you can get a personal loan with interest rate as low as 10.99%. Yes, it is true and depends on your credit score, age, repayment history, employer, etc. Also, the interest rates on a personal loan are very low as compared to the interest rates of credit cards that start from 30%. Hence, it is always feasible to avail a personal loan rather than a credit card.

#Myth6. There is no prepayment option

Due to the shorter tenure of a personal loan that usually varies from 12 to 60 months, many individuals believe that there is no prepayment option offered on a personal loan. However, you can prepay the loan before the tenure ends. Some of the banks have a lock- in period of 6 to 12 EMIs and after paying these EMIs, you can foreclose the loan any time before your tenure ends.

#Myth7. Personal loan can only be used for personal reasons

Personal loans come with a flexible end use that is they can be used for any purpose. You can even invest money availed from a personal loan in a business idea or you can buy equipment for business or can pay salaries to your employees.

#Myth8. You can apply for a personal loan from various lenders at a time

Yes, you can apply for a personal loan from various lenders at a time but it is not advisable. Every time you apply for a personal loan, it gets registered to the credit bureau as hard inquiry and gets reflected on your credit report. If any lender checks on your credit report, he will be able to see this inquiry and will consider you credit hungry and hence might not approve your loan application. Therefore, you should only apply with a single lender at a time.

PERSONAL LOAN EMI CALCULATOR - URL link

Paisabazaar Personal Loan EMI Calculator helps you determine your Equated Monthly Installment (EMI) instantly. The online calculator will help you plan your loan better by telling you what would be your EMI outgos, on different interest rates, loan amounts and loan tenures.

https://www.paisabazaar.com/personal-loan-emi-calculator/

5 types of people who need life insurance most

Five primary types of people who need life insurance the most:

1. Individuals with financial dependents
2. Individuals who have entered into joint financial obligations with others
3. Individuals who have financial plans in place for the benefit others
4. Individuals who have a predisposition to adverse health conditions (due to heredity or genetics)
5. Individuals with dangerous jobs

Individuals with financial dependents

The first category of people who absolutely need life insurance are those with dependents of any kind. This includes some of your usual actors — married couples where one spouse is the breadwinner, or a single parent.

Another typical but less known candidate includes homemakers, as their untimely death can create unforeseen costs for childcare. Other candidates can be married or single family members who support elderly parents or other loved ones.

Lastly, candidates can include benefactors who consistently and significantly support causes and organizations that are dear to them. 

Individuals with joint financial obligations

Joint debts entered into by spouses are a prime example here. If you and your partner own a home together, get life insurance — it will cover your housing costs in the event of your partner's untimely death.

Individuals in this category can also include unmarried couples who jointly enter into leases, car financing arrangements, and even mortgages on a home or income-generating rental property. This same type of arrangement can also exist between a parent and a child, siblings, or close friends.

You should also get life insurance if you've cosigned for some other types of debt, like a student loan or consumer credit debt, to protect your cosigner from having to foot the whole bill.

Lastly, business loans personally guaranteed by an individual or among business partners can create joint liabilities.

Individuals who have financial plans for the benefit of others

This is where the concept of life insurance being utilized to "complete the plan" comes into play.

For example, when I sit down with clients to discuss college planning for their children, we'll discuss amongst other things the types of schools that the family is considering, the funds available for college saving, the investment vehicles available to execute the strategy (i.e. 529 plans, after-tax investments, etc.), and the timeline for investment. Then, we'll evaluate scenarios to determine the efficacy of one strategy versus another and choose a course of action.

Just when the client thinks that we're all set, I will bring up life insurance mainly to ensure that there's adequate coverage in place to fund the plan. If one or both of my clients die next week, life insurance means there will be funds forthcoming to ensure that college is paid for — or, in other words, the plan is completed.

The same deal would be contemplated with respect to retirement planning between spouses. The point is that if you have a financial plan that is for the benefit of someone other than yourself, having adequate insurance to fulfill your contributions to that goal is prudent to ensure that the plan is executed in the event of your untimely death.

Individuals who have an adverse genetic predisposition

Not mentioned often, but with a genetic counselor for a wife, I am "gently nudged" to make inquiries about the general health profile of not only the client, but their immediate family within one degree (i.e. children, siblings, and parents).

If certain illnesses, such as certain cancers (e.g. breast, ovarian, prostate) or medical conditions (hypertension, high cholesterol, or diabetes) are raised, I initiate a discussion about life insurance not only to address need, but also for the purposes of securing the client's "insurability," or ability to get and keep affordable insurance while they are healthy or haven't manifested any potential symptoms that may be indicative of such illnesses or conditions being inherited.

Individuals who have an inherently risky occupation

It should seem obvious, but it is way too often that I walk into the homes of police officers, firefighters, corrections officers, and emergency responders only to find that many of them are sorely underinsured. They perform extremely dangerous jobs where the prospect of not coming home at the end of a shift is very real. Having adequate coverage brings more peace of mind to not only the client as he or she walks out the door, but their family as well.  

7 financial mistakes you need to avoid at all costs

Financial planning is extremely important to ensure that you handle your money properly. Just earning a good amount is not enough, you need to know how to manage it properly so as to make the most out of it. One needs to understand that money can help you make more money. However, in order to do that you need to avoid some pitfalls. 

People often make some very common financial mistakes which stops them from creating wealth. Wealth creation takes time and if you keep making mistakes with your money, you make lose the time and opportunity to help your money grow. 

Here are 7 money mistakes that you need to avoid at all costs:

1. Excessive Spending: Overspending is one of the most common mistakes that people make with their money. One must remember that great fortunes are often lost one rupee at a time. Small expenses like a Rs 10 snacks packet or Rs 50 ramen cup a day may not seem like a big deal at the time, but every little item adds up. Rs 50 ramen cup every day for a month adds up to Rs 1,500 per month and Rs 18,000 per year. Just imagine, you could have saved or invested that Rs 18,000 to get handsome returns. If you're enduring financial hardship, avoiding this mistake matters. So, sit down and take note of unnecessary expenses that you make every month and you will be surprised by the amount that you could have saved. 

2: Never-Ending Payments: With credit cards becoming increasingly popular, people nowadays buy stuff that they don't even need just because they know that they do not have to pay for the expenses immediately. Also, if you ask yourself whether you really need all the items that you keep paying for every month like cable television, music services or fancy gym memberships etc., you will find that you can do without these and it can help you stop paying unceasingly. Rather than having never-ending bills, subscription charges, it is better to save more. Creating a leaner lifestyle help you increase your savings.

3: Surviving on borrowed money: Borrowing money in times of crisis is normal. However, living and surviving on borrowed money could be the biggest mistake you make. Using credit cards to buy essentials has become somewhat normal. However,  paying interest on fuel, groceries and a host of other essential items that are gone long before the bill is paid in full, is a stupid choice. Getting personal loans for unnecessary things is something you need to avoid because while you may get the money instantly, the high interest will stop you from saving any money and, in turn, will stop you from creating wealth

4: Buying a car without need: Millions of new cars are sold each year. However, only a few buyers can afford to pay for them in cash. Most car buyers lean on car loans to finance their car purchase. A lot of people consider having a car a status symbol so they try to buy one even if they do not need it. Some people go out of their way to buy a car which is way out of their budget. 

Do not buy a car if you do not need it as the burden of car loan EMIs is not worth it. If you really have to buy one, evaluate your requirement and budget and stick to it. Also, remember that buying a car is not a one-time expense. You will have to bear other expenses that come with it like insurance cost, maintenance, fuel and repair charges etc.

5. Spending too much on your house: Note that when it comes to buying a house, bigger is not necessarily always better. A bigger house requires more maintenance, more furniture etc which increases the cost. So, unless you have a large family, choosing an extremely large house will only mean more expenses like taxes, maintenance, and utilities etc. Also, make sure to spend a reasonable amount on paint, woodwork, etc. Make a budget and stick to it so as to avoid unnecessary expenses on your house.

6. Living Paycheck to Paycheck: If you are someone who lives from paycheck to paycheck, you are in serious trouble because this means that you are not saving. If you are one of those people who no matter how much they plan their expenses, nothing is left of their previous salary by the time the next month salary comes into their account then you need to evaluate asap. Some might ask that what is so wrong about living paycheck to paycheck as long as you are living comfortably. Yes, for the time being, it might not seem like such a bad thing but when you think about the fact that you are neither saving nor investing then it should worry you. 

You receive monthly paychecks today but you will retire one day and if you have not saved anything then you will have trouble in future. Also, if you lose your job or end up in a financial crisis, you will have no funds to fall back on and this will be problematic.  

7. Not Investing: People often park their money in a savings account and leave it at that. However, savings account returns are not much and inflation will eat away your savings. If you do not get your money working for you through investment, you are making a mistake. Make sure to invest based on your financial goals, risk appetite and investment horizon. Making monthly contributions to designated retirement saving scheme is essential for a comfortable retirement. You can take advantage of the tax benefits offered to investors. Understand the time your investments will have to grow and how much risk you can tolerate.

Top 5 reasons to buy Accidental Insurance policy now

Accidental Insurance Policy: It's easy to find people having a life insurance plan and a medical insurance plan but still, in India accidental insurance plan holders are very few. There are various reasons for this. One of the major reasons for this is lack of awareness amongst investors and insurance agents showing lesser interest in selling pure accidental insurance plans as commission in pure accidental plans are quite low in comparison to life insurance or medical or health insurance plans. Apart from this, the majority of the medical expenses are already covered under the medical or health plan. That's why people show lesser interest in buying a pure accidental plan and insurers also don't make people aware of the importance of a pure accidental plan.

On why insurance agents don't sell pure accidental plans, Jitendra Solanki, a SEBI registered investment guru said, "Premium for a pure accidental insurance plan is very low. For around Rs 5-10 lakh accidental cover, the premium is around Rs 1000 while for health insurance or medical insurance the premium is around 6-7 times higher. Since the commission of the insurance agent is the same in health, medical and pure accidental insurance agents either bundle accidental insurance with any of their health or medical plans or dump the idea of selling a pure accidental insurance plan." Solanki said that there are some other benefits that make pure accidental insurance a must.

Here are the following top 5 reasons that Solanki listed out that makes pure accident insurance plan an important investment of an individual:

1] Benefit post-disability: Under a pure accidental insurance plan, a policyholder can claim compensation for various kinds of disability, which neither his or her medical insurance or life insurance covers.

2] Hospitalisation expenses: Generally, people avoid a pure accidental insurance plan as hospitalisation expenses post-accident is already covered under medical insurance or health insurance plan. But, what in case the hospital bill shoots beyond the limit of their health insurance plan? An accidental insurance policy will be useful in such scenario.

3] Home/Vehicle adaptation: An accident may lead to a kind of disability that forced adaptation or alteration in your home and the vehicle that you use. For example, suppose you can't move your feet post-accident and you need a wheelchair to move. In such a case, you need to make some alteration at your home and some alterations in your vehicle. If one has a pure accidental insurance plan, these alterations at home and vehicle are covered.

4] Family transportation during hospitalisation: Post-accident, it's not necessary that one would be hospitalised in a hospital, which is at a walking distance from his or her home. The hospitalisation depends on various variables like the place of accident and type of accident and which hospital suits that kind of accident, etc. So, a policyholder's family may not be able to choose the hospital where the policyholder would be hospitalised, at least immediately post-accident. In that case, the family members of the policyholder will have to commute a long distance leading to a large amount being spent on transportation. But, these expenses can be claimed under a pure accidental insurance plan.

5] Death claim: In case the policyholder fails to survive the accident, the family members would be eligible for claiming the death cover in a pure accidental insurance plan. This would be in addition to the death cover under his or her life insurance plan and life cover.

Therefore, these top five reasons make pure accidental insurance a must for anybody's investment portfolio.