Tuesday, 19 June 2018

Grossly Under Insured Indians Are Living Dangerously !

Even if we assume that many customers buy more than one policy, on an average an Indian is certainly not covered beyond Rs.4 lakh.

How many INDIANS are covered by Life Insurance?

According to Irdai's Hand - book 2016-17 (Table 9A), 32.81 crore of policies are in force in the books of life insurance firms in India. Even if we assume that a few lakhs of policies were revived during the year, the total number of in-force policies will not be more than 33 crore.
Since many customers are in possession of multiple policies, the total number of people possessing at least one in-force policy will not be more than 30crore.If we consider those people who are covered by group policies and PMJJBY policies and not by individual policies, even then the number of Indians holding  at least one in-force life insurance policy is not likely to exceed 40 crore (with PMJJBY covering 5.35 crore Indians so far).

Indians are grossly underinsured

So how many people are insurable today? According to most estimates, the figure will be around 80 crore. So, 40crore Indians have not yet been brought under the ambit of life insurance. In developed countries, at least 90% people are covered by life insurance. Besides, they enjoy various other social security benefits.
Now, the more important question is whether Indians who are considered as insured are adequately insured. If we take the Handout's Tables 9A and 10A together (in respect of linked and non-linked life policies), we get the figure of sum assured per policy. The average sum assured is just  Rs.3.01 lakh. Even if we assume that many customers buy more than a policy on an average an lndian is certainly not covered beyond Rs.4 lakh.

What is the value of that money today?

If we keep the money in a bank (that is what the dependants of a deceased policyholder generally does), it will not fetch more than Rs.228,000 a year or about Rs.22,300 per month! To run a family of three to four members with that money is extremely difficult. When a government social security scheme such as PMJJBY is offering an insurance cover of Rs.2 lakh per person, the much more affluent Indians are getting themselves insured for Rs.3-4 lakh only. That means, on an average, Indians are grossly under insured even today.

Too many people buying Ulips

Life insurance industry has brought a plethora of useful insurance products for all life stages and for all market segments but customers have not yet made full use of these products. Far too many customers are buying only unit-linked insurance policies (Ulips) which help in accumulation of wealth. Most Indians primarily need life insurance as savings and protection tools. As more than 90% Indians work in the unorganised sectors, they need to build their risk-free savings corpus through life insurance. They also need protection products like pure term insurance.  Although LIC continues to get more than 99% of its business by selling traditional products, the private companies as a whole got 42% of their business by selling Ulips only in 2016-17. A leading private insurer got more than 79% of new business from Ulips. The problem with Ulips is that as soon as people get good returns from their investments, they surrender the policies (the surrender charge being negligible)and insurance cover ceases to exist for them. Term insurance is a good product but that gives money only under one contingency death. People need to buy other insurance products which provide money (without any uncertainty)in other contingencies  as well. So, it is pretty dear that Indians are grossly under insured and that means they are living dangerously.

Read Full Coverage Visit: LifeLine Insurance & financial Expert

Thursday, 7 June 2018

Guide To Buying A Term Insurance Plan- Compare Features, Not Just Premiums !

A term life insurance plan protects your financial dependants in case you die, a health insurance is a must for every individual given the rising incidence of ailments and high medical costs.

You may not be as fit in your 50s as you were in your 20s. That’s a fact of life: as you grow older, your body shows signs of wear and tear and you need more medical care than before.

Research shows that heart ailments and cancer account for over half of casualties among Indians. In fact, India has the highest rate of cardiac arrests in the world and every 13th new cancer patient is from India, research suggests.

A health insurance policy pays for your hospital bills and life insurance provides timely financial support to your loved ones after you die. Both are important covers to have and we tell you who needs these policies, how much and how often one needs to review the cover.

LIFE COVER (Who needs it and when)

Not everyone needs Life Insurance. Children and young adults who are not working and retired individuals come under this category and that’s because they don’t have anyone depending on them financially. The working class that provides for children and often older parents that needs life insurance; in fact buying life insurance needs to be a priority for this generation. 

How much cover do you need

India, the younger you are, the higher cover you need. “The thumb rule says 10 times the annual income, but the actual need could be between 10 and 25 times".

A cover of 10-25 times your salary may look huge to you now, but if you factor in the time value of money, you will realize it won’t be all that big many years down the line. “If you are a salaried individual, insurers can give a cover up to 20 times your annual income. So, opt for a higher cover early on. Then you need not review your life cover often. A relook is needed when you have a baby or once in 10 years".

HEALTH COVER (Why do you need it)

Everyone needs Health Insurance and that’s because the cost of medical treatment is High. “While diseases may not be much of a concern for young people, accidents can still happen. They need health insurance to financially protect themselves against hospitalization due to accidents or even infection.

Such cases of hospitalization can work up a neat bill. For instance, dislocation, sprain and strain of joints and ligaments that needs surgical intervention or fracture of the leg needing surgery can cost up to Rs.4 lakh in metro cities and up to Rs.2 lakh in non-metros.

Which plan should you buy

If you are single and working, you can start with an individual policy. Once you get married, increase the cover by buying a floater policy. “A floater policy works best for a family in the same age group. But if there is a large age gap between the spouses or if parents need health insurance as well or if a family member suffers from ailments like diabetes, then individual insurances for these members may be better”.Infants and young children can be added to a floater policy.

How much cover do you need

A health insurance policy is a must but it’s equally important to understand how much you need to buy. It’s also important to get this right because as you grow older you may contract ailments and then it’s an uphill task to get insured. It’s always a good idea to have your own health policy but how much will depend on various factors.

For More Details Visit: LifeLine Insurance & Financial Expert

Monday, 16 April 2018

How Life Insurance Can Be An Effective Tax Planning Tool !!

It is commonly believed that the start of the financial year is the correct time to start tax planning. However, it is the March Quarter when most salaried individuals undertake the process. Most people invest in tax saving products without evaluating their features and understanding their benefits. When comparing different instruments, it is always advisable to choose an option that offers the mutual benefits of wealth protection, flexibility, value appreciations and tax savings.

One of the many tax saving instruments that people come across is Life Insurance. The main objective of a Life Insurance policy is to provide financial protection for an individual in the face of uncertainties; it also acts as a rewarding tax shelter. Some of the preferred Life Insurance products include terms plan, Money back, Whole life Policies and ULIPs (Unit Linked Insurance Plans). Term plans gives you full protection whereas others are mix of Insurance & Investment. However for availing tax benefits all these are treated equally by the Income Tax Department.

Let’s understand tax benefits offered by Life Insurance products:

One can avail a tax benefit by way of deduction towards premium paid on Life Insurance Policies Up to Rs 150,000 under section 80C of the Income tax act 1961. This also includes premium paid by the persons for Life Insurance for his/her Spouse or Child.
Under Section 80CCC if one has taken any pension/annuity plan, he/she is allowed a deduction up to Rs. 1Lakh.On Maturity of the accumulated amount, 2/3rd of the Income gets taxable, while the remaining 1/3rd is tax free.

Life Insurance has an additional EEE (Exempt Exempt Exempt) benefit- the amount one invests, the amount that one’s investment earns and the amount that one finally receives is all exempted from Income Tax.

However before choosing Life Insurance as a tax saving instrument one must keep in mind the following points: A Life Insurance Policy Qualifies for a tax deduction (in case policy is issued after April 1, 2012) only if the premium does not exceed 10 % of sum assured. For policies issued before this date, premium should not have exceeded 20 % of the sum assured.
If the Policy Holder Surrenders the Insurance Policy before Two years & Five years (for traditional & ULIP Policies respectively), the tax deduction will also get reversed.

For More Details Visit: LifeLine Insurance & Financial Expert

Friday, 6 April 2018

The World Health Day is a Global Health Awareness Day !!

The World Health Day is a Global Health awareness Day Celebrated every year on 7th April, under the Sponsorship of the World Health Organization (WHO), as well as other related Organizations.

In 1948, the WHO held the First World Health Assembly.They decided to celebrate 7th April of each year, as a WHO with effect from 1950, as the World Health Day. The World Health Day is held to Mark WHO's founding. World Health Day is one of eight Official Global Health Campaigns Marked by WHO, along with World Tuberculosis Day, World Immunization Week, World Malaria Day, World No Tobacco Day, World AIDS Day, World Blood Donor Day, and World Hepatitis Day. The WHO puts together Regional, Local, and International Events on this day related to that theme.  Local governments also tend to jump on this band-wagon,after all, global health means everyone. On this Day you may take some extra steps to care for your Health, consider getting a Gym Membership, Starting a Diet.. Even Better, Get involved with the Local Events or Organize one yourself. Spreading the news of health and threats to the same can be an excellent way to celebrate this holiday, and inform others of the important issue of Global Health.  

Themes throughout the years have varied, but always covered important issues of the day, covering everything from the Global Polio Eradication, staying active while aging, even Road Safety. All of these issues were deemed to be important enough to Global Health that they merited an occasion of their very own on this Date. The World Health Organization is an agency of the United Nations that focuses on the public health of the world at Large.  
The WHO has a constitution that countries involved in the United Nations had an opportunity to sign, and unanimously did, agreeing to the tenets laid out within to promote the general health of the globe.Through its efforts we have seen the eradication of Small Pox, and its focus then turned to Communicable Diseases, with a particular focus on Tuberculosis and HIV/AIDS. As you can see, Celebrating World Health Day is very important, and you can use it to Organize Fund-Raisers to support Local Free Clinics and other public Health Sources.  Everyone can take a Hand in improving the overall Health of the World, just by starting with Yourself, your Family, and your Community.  Blood Banks are often taking Volunteers to Help out with their efforts, and the ability to have Healthy, Fresh Blood on Hand is Central to Saving Many Lives.

There are little things one can do Every day to keep your fitness on point. Here are some things which you can do to stay Healthy: Get Enough Sleep, Regular Check-Ups, Eat a Healthy Balanced Diet, Drink plenty of Water, Do not take Stress.

Wednesday, 4 April 2018

Tips to pick the right Health Cover to suit your needs !!

It takes an Agent Several Days, even weeks, to convince a customer to Buy Health Insurance.

Introduction of new Medical Technologies, over-prescription by Doctors, and a General rise in Medicine Costs.The treatment protocol for angioplasty today is vastly different from that followed five years ago. Many of these advanced medical technologies and procedures cost more. For Ex- Someone is now looking for a Health Insurance policy for his family. However, the vast array of choices before him is confusing. There are individual policies and family floater plans, policies that restore the limit after the claim and plans that cover critical illnesses or offer cash benefits on hospitalization. How does one pick a suitable plan from this clutter? The answer is that your needs should define the type of policy you buy. Each type of Health Insurance policy fulfills a certain need . The choice depends on the Buyers age, family size and Structure, and existing Insurance Cover.

Young nuclear family:

If you have a nuclear family, a family floater plan will suit you best. In these plans, the cover is shared by the entire family. The premium per Rs 1 Lakh may be higher compared with an individual policy, but the premium per person works out to be lower. Its a calculated risk you can safely take. It is unlikely that all the members will require hospitalization in the same year. For newly married couples, who intend to start a family in a few years, it makes sense to plan accordingly. Though most health insurance policies do not cover maternity costs, some do. However, these costs are covered only after a waiting period of 2-3 years. Buy a policy that covers maternity costs immediately after marriage.

Covered by employer:

Some people believe that if they are covered by their employer, they dont need to buy a separate policy. This can be a costly mistake. While such covers are useful, they may not be sufficient. If you lose your job or switch to another company, you may be rendered uninsured. Even if you buy a fresh cover immediately, keep in mind that there is a mandatory 45-day cooling period during which certain claims will not be paid.

Before you switch to a new insurer:

Besides, there is a 2-3 year waiting period for pre-existing diseases. This is where the employer-provided cover is very handy. The waiting period for a pre-existing diseases cover is taken care of by the group cover.

Watch out for sub-limits:

While supplementing an existing cover, you can either buy a normal policy or a top-up plan. A top-up policy is cheaper because it will cover expenses beyond a certain initial threshold. For instance, Someone, his wife and child already have a Rs 2 Lakh Health Cover from their employers. They should ideally supplement this cover with a top-up policy. If they buy a normal cover of Rs 5 Lakh, their premium will be at least Rs 10,000 per year. However, if they buy a top-up cover of Rs 5 Lakh with a Rs 2 Lakh deductible, it will cost them only Rs 4,100 a year, a saving of Rs 5,900 per year. Their existing policies can take care of the initial Rs 2 Lakh, which wont be covered by the top-up plan. Let us look at some other situations. 

Self-employed or businessperson:

Health insurance is especially important for people not in formal employment. For them, a simple indemnity plan that covers hospitalization expenses will not be enough. They also need to insure themselves against loss of income due to hospitalization. Most salaried people get paid medical leave, but if your company does not offer this benefit, a fixed benefit plan comes to the rescue. Self-employed professionals should supplement the base cover with a fixed benefit policy, which pays them a certain amount for the period that they are out of action.

Living with dependent parents:

The family floater plan is not a good option if you want a cover for an older relative as well. This is because the premium rates in these plans are determined by the age of the oldest member. If you live with aged parents, it is advisable to go for individual policies rather than a family floater. Buy individual plans for them so that the premium for the rest of the family does not shoot up. Also, there is a greater likelihood of making a claim for an older person. So the floater plan will miss out on the no-claim bonus it might have otherwise received.         

A policy for senior citizens:

While Buying a policy for your parents, study its features in great detail. Most health insurance policies dont offer coverage beyond the age of 70 years, but some policies now offer a lifelong cover. "If the cover ceases at the age of 70, no other insurer will provide you one at that age.  However, do the math when you buy a health cover for someone over 70 years. The premium is prohibitively high and you could be paying Rs 24,000-30,000 a year for a cover of Rs 1.5 lakh. Some may find that putting away the premium money in an emergency fund for medical expenses is a better idea than buying insurance at that age.     

Friday, 23 March 2018

Tax planning Income Tax Returns !!

If your employer’s deadline has passed, you can still claim deductions while filing income-tax returns.
With March 31 approaching fast, most employees should ideally have given all their tax planning proof to their respective companies. If you have still not done so, it’s time to rush.


If an under-construction property is not completed within 3 years, you stand to lose 85 per cent of the tax benefit under Section 24.
If premium is paid in cash for health insurance under Section 80D.
If donations made in cash exceed Rs 10,000 under Section 80G.
If freelancers or businesses make cash expenses of over Rs 20,000.

There are some key documents you need to submit as soon as possible. If your employer is still accepting documents, you will be able to claim reimbursements such as leave travel allowance, medical and telephone. A person can claim house rent allowance while filing returns but not the rest. If a person has missed the deadline for submitting tax-related documents, all deductions from Section 80C to 80U can be claimed directly while filing the tax return. Those who could not meet the employer’s deadline can make the required investments now and claim deductions at the time of filing returns.

Use technology: Thanks to technology, you can do almost all transactions on the internet. But, for certain transactions, like mutual funds, you need to complete the “Know Your Customer” (KYC) formalities. Many online mutual fund platforms such as FundsIndia or Aditya Birla Money’s MyUniverse can help you do this online, too. An Aadhaar card can also fast-track the KYC procedure for some instruments. These facilities should help you get done with your entire tax planning.

Do the numbers: First, check the deductions you can claim under Section 80C, which has a limit of Rs 1.5 lakh. There are about 15 types of investments and expenses a person can claim deductions for in this section. Before shortlisting the right products, check the amount already exhausted by the Employees’ Provident Fund (EPF). Subtract the EPF amount from Rs 1.5 lakh to know the available limit.

Investment options: Options that don’t require recurring payments include a five-year tax-saving fixed deposit, National Savings Certificates and an equity-linked saving schemes (ELSS). Of these, most investment advisors suggest a person should look at ELSS if they have risk appetite for stocks. The preferable route to invest here is via a systematic investment plan (SIP) but as you are already late, you can invest a lumpsum, according to a certified financial planner. Given the market conditions, even a lumpsum amount won’t hurt. "Most SIPs made in the last year have negative returns. A lumpsum will not hurt investors at present .If you already have a PPF account or ongoing term plan, you must make use of it.

Insurance benefits: Many people buy a term plan and also take an add-on critical illness cover. While life insurance gets a deduction under Section 80C, critical illness is covered under Section 80D. Many people don’t remember to separately claim these two.

Benefits through senior citizens and dependents: If your parents are senior citizens and you pay for their health insurance, you can get a deduction up to Rs 30,000. In the case of parents over 80 years, who might not be eligible for insurance, medical expenses up to Rs 30,000 can be claimed for both. Additional deductions are provided for parents over 80 years for medical treatment such as cancer or neurological illness.

For More Details Visit: LifeLine Insurance & Financial Expert

Wednesday, 14 March 2018

Why Do You Need Travel Insurance !!

Traveling has become an integral part of our Modern Society. We could be traveling for reasons like a Business Trip or Much Awaited Vacation. But one cannot deny the fact that there are several things that could go wrong when one travels. Disruptions like Cancellation of Flights, Loss of Baggage, Medical Emergency are some of the unforeseen events that could catch you off guard. So whether you are off to your favorite destination for a Holiday or going on a Business Trip - an Adequate & Complete Travel Insurance is a must have.

Various Plans are available according to every Individual's Travel needs:

 Corporate Travel Insurance: Under this plan, Employees of an organization can receive coverage for   both Domestic and International Trips.

       Domestic Travel Insurance: In this type, Coverage is offered for Death, Medical Emergencies,         Permanent Disability, Personal Liability, Delays and Lost / Theft of Checked-in Luggage.

      International Travel Insurance: It gives a comprehensive Coverage for Medical Costs overseas, Trip Delays, Loss of Travel documents besides the regular coverage.

      Senior Citizen Travel Insurance: This plan covers people in the age group 61-70 years.

Besides providing general advantages, it also gives Cashless Hospitalization Coverage and Dental Treatments.

Key Features of Travel Insurance:

1) Coverage offered for Medical Expenses.
2) Coverage for expenses related to Trip Delays
3) Coverage for Loss of Passport and Luggage
4) For contingencies related to personal possession

Get  Various Travel Insurance Informations, Features and Benefits Visit: LifeLine Insurance & Financial Expert !!

Grossly Under Insured Indians Are Living Dangerously !

Even if we assume that many customers buy more than one policy, on an average an Indian is certainly not covered beyond Rs.4 lakh. ...