Sunday, 29 July 2018

No pollution papers Can't Claim insurance !!





Pollution under Control (PUC) certificate will soon be made a mandatory document to make an insurance claim, as per an order of the Supreme Court. Vehicle insurance claims will not be paid for any accident if the PUC certificate is found to be invalid on the day of the accident. The General Insurance Council will soon draft a clause to be added to the insurance policy document that will say that if the PUC certificate is not available at the time of the accident, the policy will not be paid. The Insurance Regulatory and Development Authority (IRDA) has instructed insurance companies to not to give vehicle insurance policies without the PUC certificate.

Insurance claims will not be paid for any accident if the PUC certificate is found to be invalid on the day of the accident.

Insurance companies have a hard time to identify and verify the PUC certificates as they do not have a centralized database that includes PUC certificates. Meanwhile, insurance companies argue that enforcing  PUC certificates should be done by the Road Transportation Authority (RTA) and should not be imposed through them.


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Wednesday, 25 July 2018

While Buying A Term Insurance Plan Keep These Points In Mind





A term plan is meant to replace the income of the policyholder in case of death. So, buy a cover till the age of 60-65 years. A policy that ends when you are in your 5os will not be of much use.


If we talk about our future, the life cover should be big enough to encompass all outstanding liabilities and future goals. Though our love one get the benefits of our policy. For instance,the tenure of the policy should not end when you need it most. Also, don't commit mistakes that can lead to the lapsation of the policy or rejection of the insurance claim. After losing a loved one, nothing can be more devastating for a family.


Here are some major issues to keep in mind when you buy a term Insurance plan:

Provide correct details


An Insurance contract is based on the principle of utmost good faith. It becomes null and void if the insurance company discovers that the policyholder has given incorrect information in the form. The premium for non-smokers and teetotalers is lower but don't get tempted to tick 'no' in the application form. Concealment of lifestyle habits or medical conditions can lead to rejection of claim later on. If you smoke or drink, mention that. If your family has a history of diabetes, don't hide the fact. It will bump up the premium by a few thousand rupees but will not jeopardize the Insurance claim by your nominee. Remember, every year about 2% of life insurance claims are rejected. 

Insist on medical test

Term plans are high-value covers so companies usually put buyers through extensive medical tests before issuing them a policy. However, In some cases, a company may not insist on a medical test but probably ask the buyer to give a declaration of good health. In case of early death, the company may try to show that the buyer had lied and was already ailing when he bought the policy. If the buyer goes through the medical tests, then shifts to the company and the doctor who conducts the examination. They will not be able to dispute the insurance claim by the policyholder's nominee. As a rule of thumb, buy only if the company does a full medical test. Also, after three years of issuance, no insurer can deny the claim or challenge the disclosed information.

Go with cheapest form of Life Insurance


Pure term is the cheapest form of life insurance because it has no investment component. For as little as Rs.8,000-10,000 a year one can buy a cover off Rs.1 crore.But the low premium alone should not be the deciding factor. Buy from an insurance company that has a squeaky clean reputation in claim settlement and a healthy record of customer orientation. What's the point of buying a cover that costs Rs.1,000-2,000 less but you are not sure If your family will get the insurance claim after you are gone?


Get the tenure right

A term plan is meant to replace the income of the policyholder in case of death. So, the Insurance Policy should cover him till he intends to work. This can vary from 55 years to 65 years, or even longer in some cases. Ordinarily, a person should take a cover till the age of 60-65 years. It's no use buying a plan of 15-20 years which will end when the policyholder is in his 50s. A person's insurance needs are highest at that stage of life. Buying a new policy in your 50s will be very costly .The person might even be denied the cover if he is not keeping good health. Some companies also offer very long-term covers that extend up to 80-90 years. A large cover that extends till that advanced age helps people leave behind a legacy for their heirs. But it also creates grounds for a moral hazard. In some unfortunate cases, the insured person may be denied urgent medical attention by the family so that they can get the insurance money.

Periodicity and mode of payment

Once you have bought a term plan, don't let it lapse by missing the renewal premium. One way to ensure against missing the premium is to give an ECS mandate to your bank. Even if you forget, your bank will pay the premium. But it could still lapse if there are not enough funds in your account. A better option is to give standing instructions to your credit card issuer for paying the premium when it gets due every year. That way the premium will be paid in time and you will only have to settle the credit card bill.
Most insurers give buyers of online term plans the option to pay the premium annually, halfyearly, quarterly or monthly. The monthly option is the costliest, but the out flow is very low and therefore very attractive for buyers. Unless cash flow is a constraint, it is best to opt for the annual premium option. This reduces the chances of you missing a premium because instead of 12 (or 4) times a year, the premium is due only once in a year.

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Source: Economic Times

Tuesday, 17 July 2018

Why You Should Consider Cancer Plans


The dreaded C-word is in the d news after actor Sonali Bendre disclosed that she has cancer. Earlier, actor Irrfan Khan had made his fight against the disease public., adding to the awareness about cancer and its treatment. However, the level of preparedness for managing the financial aspect of the treatment remains low. This despite a clutch of life insurers actively promoting policies that offer targeted protection against cancer. Recently, health insurer Star Health also launched a policy aimed at cancer survivors. "The sensitivity towards buying insurance to cover this disease is low. Distributors do not sell these policies as much as they promote policies with a savings element,". 

Cancer is now responsible for almost one in six deaths globally. Though medical advancements have increased the chances of early detection and successful treatment, the treatment costs are huge. This is where cancer policies can play a role. The sum insured can be as high as Rs.60 Lakh. These policies cover  cancer right from the early stages to the advanced ones. Future premiums are waived  off on detection for three to five years depending on the plan to ease the burden on policyholders.


The claim settlement process is simple, as these are fixed benefit policies that handout a pre defined sum on diagnosis. As a regular health insurance cover reimburses only hospitalization costs, the cancer policy payout can be used to meet any recuperation-related expenses as well as to make good any shortfall due to loss of income during treatment. Also on offer are increased sum assured options under premium variants, where the cover increases by 10% for every claim-free year. Income benefit is another feature that can be of help during the recovery phase, Particularly If the health condition is debilitating enough to force a break from employment. Despite the benefits, the policies have met with moderate response. "In  India  a number of cancer products have been launched and uptake of cancer cover over time may increase  with Increasing awareness levels, higher incidence of the disease, improving medical support and higher cost of treatment,".


Unlike life insurers' cancer covers. Star Health's Cancer Care plan extends cover to those who have been diagnosed with cancer (stage 1 or 2). Launched as a pilot, the product covers the risk of recurrence, metastasts, second cancer as well as second malignancy unrelated to first cancer, apart from regular hospitalization expenses.


Beware of the exclusions
Study the exclusions and restrictions before you take a call. Cancer policies from life insurers restrict coverage for early-stage cancers to 20-25% of the sum insured. Later-stage cancer claims will be eligible for the entire sum assured minus claim paid cut, if any, during initial stages.



However, some plans also provide a sum assured of 150% in case of major stage cancer. Check if any particular cancer and recurrent claims of cancer affecting the same organs are excluded. Aegon Life's policy, for instance, does not cover skin cancer.

The policies come with waiting and survival periods of 180 days and seven days respectively.
Standard exclusions like pre-existing  illness apart, Cancer caused by sexually transmitted diseases, HIV, or AIDS or arising out congenital condition and contact with radiation or radioactivity, are not covered under these policies.

Therefore, you will have to make a choice on the basis of your health condition as well as family health history. Also ensure You have a basic health insurance policy in place to cover hospitalization.


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Thursday, 12 July 2018

Get Set to Bank with LIC as Insurer Gets IDBI Stake Nod




The Insurance Regulatory and Development Authority of India (IRDAI) has agreed to the Life Insurance Corporation (LIC) of India's proposal to hike its stake to 51% in IDBI Bank from 10.8% at present. The permission is subject to the corporation bringing clown its holding to 15% in future.

The IRDAI board, which met in Hyderabad on Friday, cleared the proposal put for-ward by the LIC. It will now have to be cleared by the state-owned insurer's board. According to sources, the corporation believes that having a bank within the group will help increase its share of business through the bancassurance route. An official said, "Private life insurers with a bank within the group generate nearly half their business through the bancassurance channel. In the case of LIC, it is less than 3 %." 

LIC, with assets under Management of over Rs 30 lakh crore, has been priding itself as the largest financial institution in the country. The insurer had first made a pitch for a banking licence over 16 years ago when SBI got its life insurance licence. Subsequently its housing finance arm LIC HFL had put in an unsuccessful application for a bank licence. The corporation was a founding investor in Axis Bank in the '90s and had also picked up a 28% strategic stake in Corporation Bank. However none of these investments served the desired purpose.

HDFC Life, ICICI Pru Life and SBI Life are among the private insurers that get a sizeable portion of their business through banc assurance. While LIC will be allowed to take control of the bank, the regulator is not changing its rules and requires the insurer to bring down its holding to 15%. The board has not specified the time frame. The Reserve Bank of India's (RBI's) norms too require that promoters of private banks bring down their shareholding to 15%. However, the RBI also does not have fixed deadlines.

An additional 40.2% stake for IDBI Bank will cost LIC Rs 9,229 crore at the current share price of nearly Rs 55. However, the investment by the corporation will be higher as part of it would go into fresh equity. Earlier, LIC had picked up a 28% strategic stake in Corporation Bank, which is now currently clown to 13% Although this is in the nature of a strategic investment, the money will come from policyholders' funds. LIC has a paid-up capital of only Rs 100 crore. What seems to have swung the decision in favour of IDBI Bank is that there are no major legal changes required fix its acquisition.

On the other hand, the government cannot bring down its stake below 51% in nationalized banks without amending the Bank Nationalisation Act. 

Source: Times of India

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Thursday, 5 July 2018

Transfer Your Risk Using Insurance




If your car had no brakes, most of you would prefer not to risk driving it. Brakes are those  safety  nets that  allow us to peacefully go about  our  business without being overly worried about what would happen to our financial commitments (which We would have ordinarily honoured in our  life time) to our dependents, if we were to pass away unexpectedly.

Since the risk one faces is unlikely to go away, we need to work towards managing or containing the risk so that in the event of a contingency, our lives can proceed with  the least  possible damage. One of the most effective ways to manage risk is to work out how much you can brave and then outsource the remaining part to an insurance company.

Insurance is the most critical decision to be made in money management. It performs the role of reducing the unpredictability of day-to-day life. It provides us with the financial strength of dealing with unforeseen situations.lt acts as a shield to our earning capacity. Buying insurance refers to the  process of transfer of risk to the insurer.

Few commonly bought insurance plans are:

Term Plan- It is the most appropriate product for pure risk cover.

Whole Life Plan - It's  ideal for paying duties and estate taxes payable by the beneficiaries at the time of death of life assured

Endowment plan - It offers life cover for the person insured and investments. It is most widely used for meeting the education needs of children.

Unit linked policies- These provide risk cover and also has an investment component. They offer choice of different asset allocation.

Annuities- It provides lifelong payments to annuitants till  they are  alive  (something like  pension).These are normally taken to supplement income during retirement.

Health insurance:· It ensures that  expenses due to hospitalization (hospital stay as well as medical 
costs) are compensated to a certain extent. It becomes costlier and at times difficult to get as one gets older.

Motor  insurance- It protects from financial costs incurred because of damage to car due to traffic collisions and other reasons and also car theft to a certain extent. The kind of insurance needed and the amount of cover are the key decisions to be taken.

Taking an insurance plan is not mandatory and therefore, it needs to be bought if there's a need. 

For example, an individual with no dependents need not take a life cover. In addition, people who have enough reserves for the dependents to fall back upon, need not take additional cover.
Calculating the right amount of risk cover on a client's life is an exercise in customization. It involves taking stock of one's assets (excluding those deployed for personal use), one's goals and its priorities, one's liabilities, one's lifestyle and the kind of job one does. Also, it involves out-guessing the probabilities of an occurrence at some point in time. Too much of insurance could dent the current cash flows and too little might end up looking inadequate at the time of happening of the event, against which one is trying to safeguard.

Also, planning for a rainy day or contingencies is an extension of risk-cover. At least four to five months of expense need to be set aside for meeting any emergency needs. Keeping money aside for any emergency ensures that the other short, medium and long-term goals are not jeopardized.


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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.


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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.

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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.

WHEN EXEMPTIONS CAN BE DENIED

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 !!

Tuesday, 6 March 2018

You Have At Least 2 Years To Revive A Lapsed Policy !!





If You miss paying the premium on your Life Insurance Policy, and as a result, your policy has Lapsed. For people who may find themselves in situations like this, Life Insurance companies offer a small window of opportunity to revive the policy during the revival period.
The rules state that insurers need to offer a revival period of at least 2 years within which you can reinstate your policy. Here is how you can revive a Lapsed Life Insurance Policy.



When Insurance Policies Lapse?

A Policy Lapses when you skip paying its premium, not just on the due date but even within the grace period which is typically a month. However, not all Policies Lapse automatically. For instance, a term insurance policy Lapses if you skip paying the premium. In this case, you forfeit the insurance benefit as well as the premium paid towards the policy thus far.

In the case of a Unit-Linked Insurance Plans (Ulips), if you skip paying the premium in first 5 years, or during the Lock-in period, the policy is considered Lapsed and the Insurer moves the money (or the fund value) to the discontinuance fund and levies a discontinuance charge which is a maximum of Rs6,000 if discontinued in the first year, and reduces to Rs2,000 in the fourth year, and nil thereafter. If you skip paying premiums after the lock-in period, the Insurer lets you choose between surrendering the policy, reviving it or converting it into a paid-up policy with reduced sum assured.

In the case of traditional plans, if you don’t pay the premiums before policy becomes paid-up that is, before it acquires a surrender value you risk forfeiting all the premiums. However, once the policy is paid-up, the policy doesn’t Lapse but automatically continues with a reduced sum assured.

How to revive a Lapsed policy?

In all of these cases, Insurers may give you a window of at least 2 years to revive the policy. In the case of Ulips, Insurers will reverse the discontinuance charges that were levied upon revival. After 2 years, Insurers may not entertain a request for revival, especially if it’s a term plan because it comes with a very high Insurance Cover.

But Insurers do relax these rules on a Case-to-Case Basis.

The ease of reviving a policy will depend on the time that’s passed since the policy Lapsed. In case of an early Lapse, that’s within 6 months, Insurers may even allow you to revive the policy online on the basis of a declaration of Good Health. However, if the policy has lapsed for more than 6 months, then insurers may insist on fresh Medical Check-Ups. This will also depend on the Sum assured & your age; the Older you are & the Higher the Sum assured, More are the chances of being sent to Medical Tests. In order to revive the policy, you will need to pay all the Due Premiums, along with Penalty Interest. But Insurers sometimes waive these conditions, especially during Revival Campaigns. They may also Waive the need for Medical Check-Ups, and Reduce the Penalty Charge or Waive it completely.

For More Details Visit: LifeLine Insurance & Financial Expert

Saturday, 24 February 2018

Medi Classic Individual Health Insurance plan !!



Medi Classic is a Health Insurance plan that provides for  reimbursement of Hospitalization Expenses incurred as a result of illness, diseases, sickness or accidental injuries.

Features:
Discount of 5% in case the term is 2 years
The sum insured is automatically restored by 200% when basic insured is fully exhausted
More than 100 Day care treatments are covered
No Medical tests are required up to 50 years of age
Non-allopathic treatment is also covered
Hospital Cash benefit available, if opted
Network of more than 6000 Hospitals accorss India
Tax rebate available as per provision of Income Tax Rules under section 80-D

Benefits:
Room Rent Limit-Up to 2% of sum insured, max 5000
Pre-Hospitalization Expenses-60 days
Post Hospitalization Expenses-90 days
Minimum Hospitalization Period-24 Hrs
Automatic Restoration of Sum Insured-Up to 200% of basic sum insured
Pre-Existing Disease / Illness coverage After 48 months
Waiting Period for New Policy-30 days
Co-Payment-Up to 10% for age above 60 years

For More Details Visit: LifeLine Insurance & Financial Expert

Saturday, 17 February 2018

How to Save and Invest for Child's Education !!





Find out how you can accumulate enough funds for your children’s studies when Higher Education costs are shooting up. 

The class of 2018 of the Indian Institute of Management-Ahmadabad will pay Rs.19.5Lakhs for the two-year course. This is 400% higher than what the premier B-school charged in 2007. If the fees  of the two-year management course continues to rise by an average 20% every year, it will cost roughly Rs.95Lakhs in 2025.

Even undergraduate courses have not been spared. The tuition fee for engineering courses in the Indian Institute of Technology (IIT) has been hiked from Rs.90000 to Rs.2Lakhs per annum. This is just the tuition fee--the total cost is much higher. At an average running inflation rate of 10%, a four-year engineering course that costs Rs.8Lakhs today is likely to set you back by Rs.17Lakhs in another eight years’ time. By 2030, the same would cost more than Rs.30Lakhs. If you have not planned well, you could get a rude shock, falling way short of the required corpus when your kid is ready for college. In fact, for engineering and medical aspirants, the costs start even while the student is in high school. Coaching institutes charge anywhere between Rs.80000-Rs.1Lakh a year for preparing the student for the entrance exam.

This sharp spike in fees is a wakeup call for parents saving for the higher education of their children. “Higher education costs have the highest inflation rates in the country. Parents need to realize it is going to be an expensive affair.

As mentioned earlier, the cost of higher education is shooting up. Many parents who started late or chose the wrong investment vehicles may find themselves woefully short of the target. If you face a shortfall, don’t be tempted to dip into your retirement corpus to fill the gap. This is a mistake. Your retirement should be given priority over your kids’ education Instead you should take an education loan with the child as a co-borrower.

As mentioned earlier, the cost of higher education is shooting up. Many parents who started late or chose the wrong investment vehicles may find themselves woefully short of the target. If you face a shortfall, don’t be tempted to dip into your retirement corpus to fill the gap. This is a mistake. Your retirement should be given priority over your kids’ education Instead you should take an education loan with the child as a co-borrower.

The entire plan can crash. The only way to guard against this is by taking adequate Life Insurance. A term plan does not cost too much. For a 30-35 year old person, a cover of Rs.1Crore will cost barely Rs.10000-Rs.12000 per year. That is too small a price for something that safeguards your biggest dream.

For More Details Visit: LifeLine Insurance & Financial Expert

Saturday, 10 February 2018

Why we don’t have to ignore Life Insurance during Financial Planning !!





A financial planning not only helps to provide adequate resources for your current needs but also helps to save enough to meet the future financial goals of your family.A financial planning is to ensure that the lifestyle and life stage goals of you and your Loved ones are fulfilled. Life Insurance is often purchased more from either an investment / tax savings perspective rather than its true purpose of protection.

It is our primary responsibility to safeguard the future of our families in case something was happen to us. Without a Life Insurance policy, If the breadwinner is not around anymore wealth creation plans will remain incomplete. Hence, before anything else happen, it is critical to determine your Life Insurance need for the sake of your family.

Life Insurance is not just about protecting Loved ones from the risk of financial stress due to the breadwinner dying too early. It also plays an important role in building of amount to meet various life stage needs through disciplined savings. To meet the dual purpose of savings and long term protection, there are many efficient endowment plans which provide life cover, create long term wealth, provide financial support to enjoy peace of mind as well as prove to be an effective tax-saving instrument.

While looking to purchase a life insurance policy, bear in mind that the insurance plan you choose should ideally offer a combination of adequate protection from risk while ensuring that your family’s financial liabilities are met without causing additional financial burden and that the continuity of the lifestyle that they enjoy is maintained. We must realize that life insurance is uniquely different from all other financial products because it has the protection of your financial interests as its core proposition and thus should be the foundation of everyone’s financial plan.

For More Details Visit: LifeLine Insurance & Financial Expert

No pollution papers Can't Claim insurance !!

Pollution under Control (PUC) certificate will soon be made a mandatory document to make an insurance claim, as per an order of the...