Considering the conditions of roads in India, buying a two wheeler is always a feasible option to go for. Not only it makes whipping through traffic much easier but also makes parking absolutely anywhere convenient. But before deciding on buying a new two-wheeler, the following is the list of things you should take into consideration.
Top selling two wheeler motorcycles in India range between Rs 45000 – 50000. Although there are few international brands that sell bikes at the cost of Rs 1lakh and more. The bike you want to buy will totally depend on your affordability. If you have surplus wealth, you can buy your vehicle by paying the lump sum amount or else select the option of paying equal monthly instalments. Keep in mind that you are going to own the vehicle for at least next 5 years, it will also incur service and maintenance charges.
The model of the motorcycle is the most important factor to consider before buying one. There are sports bikes, cruisers and standard bikes. Choose one as per your comfort level. If you are a first-time rider, consider buying a second-hand vehicle and upgrade to the new one after getting a knack of riding. Also, mileage is another factor to look for; usually motorcycles start at the mileage of 80 kilometres per litre.
After deciding on which model to buy, get your financial transaction done with your dealer. It is crucial to visit at least two or three dealers to avail the best deal. Also, do not forget to negotiate on prices as many sellers tend to give lucrative discounts.
As the owner of the motorcycle, it is mandatory to have a bike insurance policy by law. It not only protects you from all sorts of damages incurred by accidents but also takes up the liability for injuries caused to third parties. Many insurance providers have eased their insurance buying procedure by switching online to sell insurance policies.
The year 2015 has already begun and we are pretty sure that you may have made a few resolutions. Moreover, you may have even started working on these resolutions in full swing. Making New Year resolutions is a part of many people’s lives, especially for the purpose of welcoming the New Year.
Such resolutions can start from losing weight, going for jogging, purchasing a new car, etc. There are thousands of wishes and necessities which people put forth as New Year resolution. While most of them are meant to make your life better, a few of them may be reserved for protection of life. One such resolution that will offer such protection is life insurance.
What is Life Insurance?
Life Insurance is a noble financial instrument that offers substantial financial reimbursement to the nominees of the insured. For a small amount of premium, you can easily avail extensive life cover. No other financial product offers such extensive benefit. Thus, it is said to be noble.
Why should you buy a Life Insurance plan?
There are several life insurance companies in the market that sell an assorted range of products. These products cater to the various demands of people. Based on the demands and protection offered, these products are classified as:
- Term Insurance Plan:
This plan offers extensive financial reimbursement to the nominees of the insured person after any unfortunate event that causes death.
- Whole Life Plan:
Whole Life Plan offers the combined benefit of death cover as well as savings advantage. The savings advantage is known to last for the entire life time of the sum insured.
- Family Income Benefit:
This offer cover for the entire family. It is actually analogous to a monthly income plan as it provides periodic pay-outs to the insured individuals.
Life insurance is the noblest form of financial instrument that hedges the financial risk associated with a person’s life while reimbursing a significant sum of money after unfortunate event such as death of the insured.
Truly, this instrument should be looked upon as a boon to people, especially breadwinners who have dependents. Yet, these products are not liked or readily bought by many. The reasons behind this shortfall is the false promises and deceiving measures adopted by Insurance agents to sell such policies.
If you have been approached by any such agent, and are facing difficulty while purchasing a policy, then here are the five insurance buying tips that you should look out for.
- Bonus is Guaranteed
Well, this is an overstatement, or perhaps a pseudo promise that agents make to prospect buyers while selling life insurance. In reality, bonus is granted by the insurer to the policy holder once in a year, and its amount varies as per the sum assured. It may not be granted every year. However, agents assure such false guarantee to buyers.
- There is no Commission for this policy
This line is often used by agents to lure the buyers into purchasing a policy. Truth to be disclosed, an agent earns around 10 to 15% commission on every policy sold. So, do not fall for this line. In the end, your premium will be the reason for his salary.
- It is home loan insurance too
After reading numerous insurance tips, you should be aware of the difference between home loan insurance and life insurance. Then, why mix the two together and befuddle your mind with agent’s sales pitch?
- You need a Life Cover Always
Be clear with the definition of life insurance. It provides financial compensation to the nominees or dependents of the insured. If you don’t have any, then avoid buying such policy.
- It is the Best Way to Save
Get a better market view; insurance products do not guarantee double-digit returns. If you want to save, invest in mutual funds, bonds, fixed deposits, or capital market instruments. Life insurance offers steady returns with protection for life, do not mistake the sum assured with assured returns.
There are a huge number of insurance policies available in the market. Also, there are numerous platforms to bring them to the consumers. However, the combination of term insurance plan and online platform is the most successful one. We bring to you some of the advantages of buying a term insurance plan online.
Cost, in terms of premium and amount assured, plays a major deciding factor to buy a term insurance. The online platform is considered to be cheaper than the offline counterpart by 50-70%. The reasons are quite obvious, one as there is no mediator therefore, the customer directly deals with the company. The only drawback is the competitive rates various insurance companies offer online. For instance, there are cases where customers have purchased a term insurance plan at a certain price but, now the same plan is available at much less price with same amount of tenure and amount assured.
The online mode of buying insurance definitely comes with a lot of flexibility in terms of the kind of term insurance plan you would want to buy. One has to also conduct some research before buying a policy online as there is no agent to guide you with the right processes. However, it is much of a blessing in disguise as we often tend to buy policy under a laid back attitude in presence of an agent.
The only reason people are still apprehensive to buy an insurance policy through the online platform is the claim settlement process. The concern is justified also as there is no data to back-up the number of claims settled for the policies purchased online. The companies usually put up a compiled report of both online and offline claims settled data therefore, not giving a clear picture on this agenda.
The sum assured in a term insurance plan through the online mode is higher than its offline counterpart. One reason as mentioned is the low cost involved in the entire process. Also, the marketing tactic can be given credit for it. The constant pop-ups online with lucrative lines such as “One crore term for just Rs 500 a month or Rs 17 a day” definitely lures you as opposed to an agent trying to convince you for a certain policy.
As you grow up and start a family of your own, you begin to understand the importance of planning for the future. The members of your family are dependent on you to provide for them in the long-run. Thus, you must take every possible scenario into consideration in your bid to give them the best of the best.
With this in mind, it is important to make a plan so that your family is well off, in case something was to happen to you. The best way to do this is to take up a life insurance policy. Basically, this involves paying a monthly premium in exchange for coverage, in case of the worst. This means that is something was to happen to you, the insurance company will pay the sum assured to the person named as the nominee. This will go a long way to help maintain financial stability, in spite of being faced with a grave situation.
This being said, there are a number of options for you to choose from and you must consider the pros and cons of each before making a decision. Let us take a closer look at two popular options.
The ULIP plan sees a combination of both investment and insurance. A part of the premium paid, will go towards providing life insurance cover, while the other part of the fund is invested into stocks or bonds, which you can manage yourself. Thus, a ULIP provides you both savings and protection in the long-term.
Another option is a term insurance plan, where life coverage will be paid for a fixed period of time, in exchange for regular payments of premiums. This is a more affordable option in comparison to a whole life insurance plan and they are valid for a period ranging from 5 to 30 years. If anything was to happen to you during this period, the insurance company will offer compensation to the nominees.
Before selecting any one of these options, it is important to consider the benefits of each. You must look at your situation and decide which offer will suit you best. The goal must be to leave a significant amount of money behind, so that you family can continue living comfortably. With this in mind, you should make a decision, keeping their wellbeing in mind.
Life is extremely uncertain and although we would all like to know where we will be ten years from now, there is no definite way to make this prediction. Thus, we must put our best foot forward and hope that everything will work out for the best.
This being said, there are a number of preventive measures that can be taken in order to secure ourselves and our finances. One of the best ways of doing this is with the help of an insurance policy. This acts like a financial safety net that can be very beneficial in the long run.
The most basic form is life insurance, which provides a monitory compensation in case of the worst. In this case, there are two options to choose from, term and whole life insurance. The former is valid for a specific period of time, say ten or twenty years according to the plan chosen. If something was to happen to the insured during this period, the nominee will receive the sum assured.
The other option is whole life insurance, where premium is paid on regular bases until a certain age. It is then given back to the insured either in lump-sum or in installments. If something was to happen to the insured during this period, the sum assured will be paid to the nominee. Thus, this works as a form of saving as well is a form of financial security.
This answers the basic question, what is life insurance. However, this is just the basics. There are more than a few options, when it comes to the types of schemes that are available to pick from. For example, there are schemes that offer coverage to the entire family or others where the premium increases, so as to make an allowance for inflation.
Here are some of the books you can go through to get more information on basics of life insurance.
This is a necessary expense and it helps maintain financial stability, in spite of be faced with a grim situation. If something was to happen to the earning member of the family it will be very difficult to bounce back into the regular routine both financially and emotionally. The amount of the policy will help in this process and will make the transition period a little easier.
Thus, it is always best to prepare for the worst and hope for the best!