Critical illness insurance is a policy that covers some specific life threatening diseases. It typically covers illnesses like cancer, heart attack, organ transplant, kidney failure and paralysis. These conditions may seriously affect your lifestyle and your ability to earn income in the future. The cost of treatment of such illness is also very high and can easily drain your lifetime worth of savings.(more…)
When we have uninvited guests at home, everything goes for a toss, we cannot say no, but now comes the stress on money spent & mental peace.
Medical emergency is like above, always comes uninvited, and by far becomes the toughest challenge, an individual/ family will face. Such emergencies can sometimes lead to people falling in debt trap.
Why wait for a surprise? However, if you have a health cover, you need not worry about your savings going away and only focus on getting the best medical treatment.
Read the below mentioned points to understand why health cover is a must for everyone.(more…)
Medical expense is one expense,which we hate to spend-on, but it is also an expense which we cannot escape. Medical expenses are rising every year,even the smallest of tests prescribed by doctors, make us cough-up, at least couple of thousand Rupees. The lifestyle which we lead and the environment we are living in is contributing largely to the ever increasing diseases. Yet India’s health insurance market remains highly unpenetrated.
Some of the key terms, which are usually not explained by the seller, or we overlook at the time of signing the policy are explained below. But one should carefully read all the terms, conditions and clauses related to the insurance, before one finalises on the preferred health plan.
One interesting & great legal tool in hand, but hardly been pushed by anyone.
What it means; at the time of initiating (buying) a term insurance policy, one should also sign this document. This document legally ensures that, post the policy holders demise, only wife will receive the policy cover value and not the creditors (policy holders outstanding with others) or relatives.
We take Term-Plan, to ensure the well-being of our family, specifically wife and children in case of any unforeseen events. Therefore, ensure that you sign this document.
Once a policy is availed under the MWP Act, it may not be attached by courts for repayment of your debts. Only your wife and children will be entitled to the Sum Assured in the event of your demise.
“Tum Term Insurance Lena Bhul Gaye, Ab GharKa Kharcha Kaise Chalega”
Quote from one of the recent TV Ad campaign on “Term Insurance Cover”; a lady is seen cursing her dead husband, on not buying a “Term Insurance Policy”, even though they (both) had decided to start same.
We Indians (I’m also included), believe in the fact that “Accidents” or “Death” is a wrong word and one should not get involved with same, in any context. Therefore, buying a policy to cover only death, that too without money-back, makes no sense 😉
When we say Insurance, what comes first in your mind? answer would be, LIC.
And if I further probe, what LIC means? answer would be, money back plan or some investment plan.
I was reading an article today in Mint, “Life insurance policies continue to die early”, prompted me to write this blog. As per the article, which is based on data analysis from IRDA (persistency ratios), it states that 2nd year renewal on Insurance policy stands below 80%, and 6th year renewal stands below 50%. Which means, every 2nd customer, is not renewing insurance policy after the 5th year. Why?
Gautam, a 28-year-old IT professional, has got married recently. His parents are financially dependent on him. He saves Rs.15,000 each month. He thinks his insurance requirement would be Rs. 50 lakh. For the term insurance plan that his relationship manager is recommending, his annual premium will be Rs. 10,000, payable over 30 years.
He thinks a term insurance is a bad choice because he will not get any ‘returns’ on it. It seems unprofitable to him, as he is unlikely to get back the amount he pays as premium. Is term insurance really a waste of money? Should Gautam consider an insurance cover which provides a good ‘return’ at the end of the tenure instead?
First, Gautam needs to be educated about the concept of insurance and the purpose of buying it. The only way to do that is for him to imagine how his family would fare, if he were to pass away tomorrow. Wouldn’t it make things difficult for his wife and parents?
A recent survey conducted by an international agency on India’s financial literacy:
67% of the Indian prone to think insurance as investment
ONLY 7% people have taken term insurance, out of all who pays insurance premium
ONLY 5% of people have health insurance
92% people after their retirement depend on the children and 8% who plan for retirement, 61% of them resort to insurance as retirement plan