Debunking The Most Common Myths Related To Health Insurance

Looking at the common work culture, most people tend to spend most of their lives in a desk bound job. Sitting for long hours and munching on your favourite burger is definitely not how you are supposed to remain healthy. Sedentary lifestyle remains one of the biggest reasons for the increase in a number of diabetes and heart patients. Moreover, the ever rising medical costs is another reason of deteriorating health conditions in India. When the maximum population of your country is unable to afford quality treatment, it only results in untimely death which is nothing but saddening.

Experts suggest that only way out to such situation is a health insurance policy. An insurance policy will ensure availability of funds in the times of emergency. Nobody would like the feeling of losing their loved one just because of financial crunch, a health insurance policy will make sure that you and your family receives on time financial assistance. However, there are a few myths related to purchasing a health insurance plan, the below post will debunk such common myths.

No need for an individual policy:

As we all are aware that several work organisations provide a health insurance plan to all their employees, most of the people think that it is enough to safeguard them. This is one of the biggest and the most common myth related to a health policy. The plan given to you by your company will not have enough coverage options and will lapse as soon as you leave the job which is why it is advised to purchase an individual mediclaim policy. You can buy an individual health insurance online to avail lower premium rates.

Buy a policy just to save taxes:

The common perception among Indians, related to insurance is that it is only for tax savings. If you also have purchased a policy to save taxes and ignored most of the policy details then you will be startled at the time of making claims. So, make sure you go through all the policy related documents and study them in depth.

Once bought, needs no updating:

People tend to buy an insurance policy and later forget about it. They think that it will only be required in times of emergency. This myth better be busted, as it is mandatory to renew the policy each year. The terms listed in the policy may change every year with the renewal, it is crucial to be updated with the changes.

Why should your Young Ones Know About Car Insurance

Natasha was one of those girls who loved cars. Her knowledge and passion for cars was unmatchable. She even learnt how to drive a car before she was 18. Her father was aware of her admiration for cars and always encouraged her to pursue a career in the same field. Since her birthday was nearing, he chose to keep a surprise for her. Since she was now eligible to drive, he knew that would be the right choice of gift for her 18^th birthday. On the day of her birthday, she woke up to the sight of a car key decorated with ribbons. As she stepped outside, it seemed no short of a dream to her.

Natasha was overwhelmed by this gift and hugged her father tightly. She went for her first drive in the car and came back home. Her father had called the car insurance provider from whom he purchased the car insurance policy. He wanted her to be a learned driver and be aware of the importance of insurance. The insurance executive then explained to her about the compulsion of car insurance and that it could be purchased from various insurance providers such as Royal Sundaram, ICICI Lombard, or many others. He told her that there are mainly two types of car insurance plans such as third party car insurance and comprehensive car insurance.

Though Natasha was aware of the concept of insurance, she took keen interest in understanding the details of each. She knew that car insurance was a compulsion by the Indian law. Besides, she learnt that third party insurance only covered damage and any medical expenses of third party caused due to an accident by her. However, a comprehensive policy covered damage as well as medical expenses of her as well as third party in case of an accident caused by her. Natasha felt extremely proud of her father’s way of imparting knowledge to her. She promised him that she would drive safely and always be a vigilant driver.

Like Natasha, your child can become responsible and aware too about car and its safety with insurance. So why wait, teach your child about insurance today.

Natasha was one of those girls who loved cars. Her knowledge and passion for cars was unmatchable. She even learnt how to drive a car before she was 18. Her father was aware of her admiration for cars and always encouraged her to pursue a career in the same field. Since her birthday was nearing, he chose to keep a surprise for her. Since she was now eligible to drive, he knew that would be the right choice of gift for her 18^th birthday. On the day of her birthday, she woke up to the sight of a car key decorated with ribbons. As she stepped outside, it seemed no short of a dream to her.

Natasha was overwhelmed by this gift and hugged her father tightly. She went for her first drive in the car and came back home. Her father had called the car insurance provider from whom he purchased the car insurance policy. He wanted her to be a learned driver and be aware of the importance of insurance. The insurance executive then explained to her about the compulsion of car insurance and that it could be purchased from various insurance providers such as Royal Sundaram, ICICI Lombard, or many others. He told her that there are mainly two types of car insurance plans such as third party car insurance and comprehensive car insurance.

Though Natasha was aware of the concept of insurance, she took keen interest in understanding the details of each. She knew that car insurance was a compulsion by the Indian law. Besides, she learnt that third party insurance only covered damage and any medical expenses of third party caused due to an accident by her. However, a comprehensive policy covered damage as well as medical expenses of her as well as third party in case of an accident caused by her. Natasha felt extremely proud of her father’s way of imparting knowledge to her. She promised him that she would drive safely and always be a vigilant driver.

Like Natasha, your child can become responsible and aware too about car and its safety with insurance. So why wait, teach your child about insurance today.

List of Things to Consider Before Buying a Two Wheeler

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.

Budget:

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.

Model:

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.

Financial deal:

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.

Insurance:

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 Need for Homeowner’s Insurance

You might think “why do I need a homeowner’s insurance policy?” well you need one for the same reason you have a car and a health insurance. That is if something like an earthquake or natural calamity were to occur, you would be reimbursed for the exact value of your home. The major reason to have a homeowner’s insurance because it helps with the financial support in order to buy a new or repair the current house.

While buying a homeowner’s insurance there are several factors you need to consider ensuring that you would actually get your money’s worth and not just wasting your finances on premium amounts that are just using up your money for absolutely no reason. So, here are certain factors that you must ensure are covered under your home insurance policy.

Hazard Insurance

Having a hazard coverage ensures that your house repair costs are taken care of in case it were to get destroyed due to certain instances like fire, storm, theft, vandalism and similar threats. The hazard insurance policy ensures that you are covered for the cash value of the damages or the replacement value of the damaged objects.

Liability insurance

The liability insurance policy is not specifically for you, but for the damages caused to others. For example, if someone were to get hurt due to the design of your fence or door the liability insurance would cover all the medical expenses required for them.

Mortgage Requirement

The is one of the biggest reasons that you should a homeowner’s insurance policy. It is not for you, but for the mortgage companies that require it. This is if you have taken any sort of loan on the house. Remember to use the home loan EMI calculator and tally with them and check to it that all the amounts are justified.

Five Step Guide to Secure Your Child’s Future

Today’s children are the architects of tomorrow. Their intelligence holds the key to development of future. The way in which they are nurtured and treated plays an important role in how they will function as adults. Being a parent, you will always aim to provide the best care and upbringing to your child. However, who will take care of him in your absence?

Child’s future is one of the major responsibility of every parent, and it is every parent’s duty to take measures in securing it. There are several investment plans and products available in the market for securing child future. Here are a few points that you should look consider taking a look.

• Know the requirements

The expenses incurred towards education, healthcare, and other overall growth of child need to be assessed before purchasing an investment plan. Keeping into mind factors such as inflation, rising healthcare costs, education costs, etc. you should take expert help to assess the requirements.

• Invest a little Extra

Despite all the measures taken to assess the financial requirements for a child insurance plan, several parents still end up investing a little less. This is because most parents do not take into consideration unexpected expenses. To tackle such expenses, a little extra investment is recommended.

• Begin Early

To get a huge sum of money on maturity, you are recommended to start early by investing in child insurance. When you invest at an early age, you will be able to manage other financial goals in an efficient way.

• Do Proper Asset Allocation

To implement a sound investment portfolio, it is recommended to take help of an expert. Ask advisors for proper asset allocation strategy to invest better.

• Teach Your Child to Save at Early Age

Your savings will soon be over if your child turns out to be an extravagant spender. Avoid this situation by teaching your child the importance of savings at an early age.

Things to Check before Finalizing Your Fixed Deposit

Presently, investment experts have been found to advise their clients to lock their finances in company deposits before an interest cut comes into effect. This is because it is predicted that soon the RBI will start slashing interest rates, which would lead to a cut in bank deposit rates. There also is a possibility that this would result in a drop in interest rates in the not-so-distant future.

Currently, SBI, the government operated banking firm, offers an interest rate of 8.75% on fixed deposits with a 1–3 year maturity. On the other hand, other private financial institutions offer a 9.25% or even a 10–11% interest. However, don’t get swayed just by the interest rates; there are several other factors that you must consider before investing into a company. Here are some of them.

Credit rating

Fixed deposits are gaining popularity by the ranks offered by the various credit rating agencies such as Crisil, India Ratings, and many others. Checking the rating of a financial institution is the first step towards selecting a company’s fixed deposit scheme. These ratings are what determine the highest credit quality and the lowest credit risk for a deposit scheme.

Company quality

Always remember to check the group background and the value of the business you plan on investing in. very importantly, find out the firm’s repayment record, its financials—losses, debts etc. before taking any kind of step forward. A firm with a low credit rating is more likely to offer you higher fixed deposit interest rates compared to others like SBI and other highly rated institutions.

Liquidity

The lock-in period of a company’s deposit is what determines how liquid its products are. This is easiest way you can be sure of getting back your money, along with interest. Majority of deposit schemes have an initial lock-in scheme of about 6 months. In case of a withdrawal after three months but before six months, the deposit holder is paid, not the entire interest rate promised, but about 4%.

Interest payments

Company fixed deposit schemes are the one that can pay interest monthly, quarterly, annually, half-yearly and cumulatively. The term varies from company to company. People who are in need of regular additional income, can opt for a specific plan that offers them periodic interest payments. However, benefits from fixed deposits something that is considerably larger as the interest paid is ploughed back into the deposit account and the deposit holder benefits from compounding.

The Process of Loaning

Investing and saving for your future can turn out to be pinch you and eat into your everyday expenses a bit too much; be it investing in a house, a car or even education. As a young person, it may seem impossible to be eligible to be approved for a loan without having any sort of parental support. This is the exact reason why it is really important to completely understand the financial nuances involved in a loan.

The Loaning Process

When thinking of opting for a loan, it is important that you assess the situation from the bank’s perspective. It is important that you understand it is eventually a source of revenue for them, and an altruistic gesture to help someone by lending money. In essence, banks are here for business. The only reason for a bank to give you the money is so as to earn interest from you; interest that they would gain on the principle amount lent to you. After all, this is the only way a bank earns its revenues.

Your source

These days it is a real important thing to find out the alternatives to getting a loan from various banks such as SBI, Axis Bank, HDFC etc. Online lending is quickly becoming popular thing among the general population. However, in case of online lenders, frauds and reputability can sometimes also become major concerns. So ensure you conduct a detailed research on your source before finalizing your deal.

While paying back

When it comes down to finalizing which institution to avail the loan from, the terms are what matter. Some factors that vary either be interest rates, the length period of the loan, or even the type. Additionally, it is crucial that you have a respectable and eligible adult co-signer for the loan. This is a mainly a reason why banks look for in order to be completely sure that they would get back their amount at any cost.

Achieve Aggressive Returns with iMaximize Plan

Insurance policies have been designed to reduce the financial impact of unpredictable events. Not only do they offer protection against the financial difficulty faced after any unfortunate event, but also they are looked upon as investment vehicles.

A typical life insurance plan would only offer death benefit for a small premium. However, prospective buyers look for investment benefit along with life protection. Furthermore, they also want versatility and liquidity in investment. Understanding such demands of the prospective investors, AEGON Religare came up with a revolutionary product known as iMaximize Plan.

What is iMaximize Plan?

This plan is an innovative ULIP policy that offers the versatility of choosing the underlying funds as well as significant amount of life cover. Unlike the existing Unit Linked Insurance Policies in the market, this plan can be purchased online. You can simply register for this plan online, without having to undergo through the cumbersome process of availing a quote, assessing the underlying fund, etc.

What are the Key Benefits of Availing this Plan?

There are several key benefit of availing this plan. Some of the outstanding benefits that will compel you to purchase this policy include:

• Partial Withdrawal Facility

This plan provides you the unique ability of partially withdrawing the investment corpus after the completion of first five policy years. You can withdraw up to 20% of the total fund value amount each year before the policy matures.

• Choice of Choosing 3 Funds

To assess the risk appetite of different investors, AEGON offers three distinct funds to choose in this ULIP. The three funds included in this plan are Blue Chip Equity Fund, Secure Fund, and Debt Fund.

• Top-Up Facility

To improve the returns and seek capital appreciation, this policy offers top-up plans to invest additional amount.

• Returns Are Tax Free

Very few ULIPs in India offer tax free returns. iMaximize Plan is tax-free under Section 10 (10D) of the Income Tax Act, 1961.

The Technology of Online Banking

Technology is advancing each day opening up avenues of comfort and style. With banking becoming an active and indispensable part of our lives, online banking has come to the fore and is making lives easier around the globe. Online transactions induce a fear of fraud. Though the online securities are massive and efficient, cyber-crime sometimes find a way to circumvent them. A few precautions during transactions can make online banking exceedingly safe, comfortable and easy. To avoid the risk of loss or fraud, few steps below hold the capability of guiding the masses through the digits of online banking.

1) Building a strong password: All online banking transactions are secured by the user password, in the absence of which the transaction cannot take place. Creating a password with the combination of numbers, alphabets, and special characters is advisable, since the risk of hacking is minimized. Also, longer the password, better is the protection.

2) Use a secure computer with a strong antivirus: Irrespective of the type or function of the computer, safety software is essential. Avoid the usage of computers at shady corners of the city, since safety of the account can be compromised either by using the SMS facility or an email. So, don’t forget to ask your bank for notifications. Thus, in case of any kind of an “uncalled for” transaction, you would immediately be notified and a quick action will be made possible.

3) Keep a close tab on your account: With online banking accessible anytime-any-day, it is easy to keep a check on your account. This helps in detecting any unwanted changes and dealing with the same accordingly. Online banking is nothing to fear from if little things mentioned above are taken care of. So yes, learn to go a bit tech-savvy with your banking too.

Quick Tips for First Time Credit Card Buyers

Most of us love to shop. However, the limited amount of funds in our wallets restricts us from making huge purchases. Now, what if there was sale going on in your favourite shopping outlet, and you did not have enough cash to shop?

Such opportunities exist for a small time, and to make best out of them, banks and other financing bodies provide credit cards. These cards give you the freedom of purchasing things with just a swipe. If you have newly acquired such shopping liberty, then follow these few tips.

1> Secure Your Card:

Secure your newly acquired freedom by keeping it safe in wallet or bag packs. Do not use it at suspicious places, keep it away from strong magnets, and avoid sharing credentials and details. This way, no one will misuse this newly acquired purchasing liberty.

2> Keep a track on Credit Report:

At the end of each month or the billing cycle, Credit Card Company will send you a summary of purchases and the amount to be paid. If you are a regular shopper, then it is recommended to verify each transaction.

3> Know the Annual Fees:

Every privilege comes at a cost. For the freedom of purchasing with a swipe, credit card companies charge an annual fee. Such fees vary from company to company and cards to cards.

4> Understand the Fees:

Do not be surprised to pay unforeseen charges if you haven’t read the terms, conditions, charges, and fee structure of credit cards. Services such as SMS and mobile updates come at a cost with your card. Understand the fee structure before applying.

5> Understand the different rates:

Depending on the type of card selected, transaction rates will vary. Carefully understand the rates so that you will have a better idea of charges while making transactions.