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Friday, 19 October 2012

Family CareFirst - A health insurance plan for the entire family




    The health of your family is very important to you. When faced with hospitalization or one or more family members, the medical bills can severely dent your savings. The cost associated with hospitalization might be very high and you need to be better prepared for such an emergency.

     Buying Medical Insurance for each individual family member can be cumbersome and expensive. What if there is a solution that gives you a single tool to cover your entire family - all in one? Bajaj Allianz Family CareFirst presents an innovative yet practical health care plan for everyone in your family including children and parents. This unique hospitalization plan gives you a 3-year health cover for your entire family and allows you to renew the policy after every 3 years to keep your family covered till the age of 74 years. So no separate accounts, repetitive paperwork or payment adjustments for each member. Secure your entire family in one shot.

Download Brochure


Key Benefits


  • Coverage from 3 months to age 74 with guaranteed renewals
  • 3 year premium guarantee for each policy term
  • Hospitalization Cover in leading hospitals across the country
  • 15% discount on prevailing premium on every renewal
  • No claim bonus in the form of increase in sum assured @5% every year
  • Day Care Treatment for 140 day care procedures
  • Pre-Hospitalization and Post-Hospitalization Benefit
  • Reimbursement of Ambulance expenses
  • Choice to select Health Critical Illness rider
  • Choice to include Your spouse, children and parents
  • Cash Less Service Facility in leading hospitals across the country

 Why Bajaj Allianz ?

  • Best services in the industry
  • In- house fast settlement of claims
  • Consistent performance of the company for clean underwriting practices
  • Large spectrum of products like Hospitalisation covers, personal accident's covers , top ups Critical illness ,Hospital cash along with other lines of business.
  • Provides cashless benefit across India
  • Only company providing e opinion in the market

For policy wordings click here


Wednesday, 17 October 2012

Importance of Health Insurance

     The need for having a health policy is a very important one and yours truly got a dose of it himself when he was whisked into a hospital for a week with acute viral fever. A chronic disease, disability or serious injury to you or your family members can set you back by a packet and disturb your peace of mind. Rest easy with Health Insurance




Because " HEALTH IS WEALTH "


     Hospital bills for very small to considerably large ailments are a pain. It’s difficult to meet such costs on our own without burning a hole in our savings. Also, with medical costs escalating, some even compromise on quality healthcare, because of affordability. It is then that the importance of health insurance comes into the picture. Health Insurance provides us with the ability to afford better healthcare facilities for ourselves and our loved ones.
What’s more, you can also enjoy tax benefits.

Under Section 80D:

     Investments made towards medical insurance premium paid qualifies for deduction under section 80D from your income up to a defined limit.

  Understanding the concept of health insurance

     Health Insurance in India, popularly known as Mediclaim, is nothing but an Insurance which covers expenses related to necessary Hospitalization due to a Sickness or an Accidental Injury. A standard mediclaim covers comprehensive costs of Hospitalization, which include:

•Investigation costs before the hospitalization like Medical Tests, Doctor Fees,

•It includes cost for ambulance

•All costs while in the hospital which include room charges, surgery charges, diagnostic tests etc.

•Costs incurred post hospitalization for complete recovery, for example follow up doctor visits, diagnostic tests, medicines connected to the Hospitalization.

No insurance means financial burden for an individual


     For individuals and families that are not having mediclaim or little, any hospitalization means spending money from their pocket to pay the hospital. With the current medical costs in India and worldwide rising year after year, this can set you back big time. In a country like India where you still boast of joint families and support to elderly parents, the probability of hospitalization each year is more. If you keep paying from your pocket each year, then essentially you have lost the plot of making money. Being uninsured is a dumb move to make.


Benefits of a health insurance plan

     Due to skyrocketing inflation, quality healthcare, hospitalisation is becoming very expensive. Large hospitalisations which cost lakhs of rupees can seriously burn a very big hole in one’s savings or worse, burden one with huge debt. Health Insurance plans help in spreading such a risk to larger no. of people, and hence bring the costs down per person.

How does a health insurance works?

     Health Insurance is generally an annual Insurance policy, renewable every year. The policy covers Hospitalisation due to Sickness and Accidental Injury, subject to certain exclusions and waiting periods, which are explicitly mentioned in the policy wordings. You can claim Health Insurance in 2 ways – Cashless or Reimbursement.

•Cashless – Every Insurance Company has a network of Hospitals where they have a direct billing arrangement. In such cases Insurance Companies directly pay the admissible claim amount to the hospital. When the insured person is admitted in a Network Hospital, he/she or his/her relative would need to just submit his/her cashless card to the hospital billing desk, who will process cashless admission for the patient, subject to approval by the Insurance Company. In such cases, the Insured person will have to pay only expenses which are not covered under the Health Insurance Policy.

•Reimbursement – In case you happen to be admitted in a Hospital which is not in the network of your Insurance Company, you will have to make all payments on your own to the Hospital, and then submit these original papers along with the Claim Form to the Insurance Company for reimbursement.

Tips while buying the right insurance plans

•One needs to understand that there is no perfect plan. Understand your needs well, plan for the long term, and go for the closest suitable plan. Don’t wait for that perfect plan with everything covered to arrive and risk delaying your coverage.

•Remember, you are buying an insurance for your old age. With health care inflation at 20%, do not go for a small sum insured of Rs. 1 lakh, if you can afford more. A premium of around 25% of your monthly salary is surely affordable.

•Demand the policy wordings (where all terms and conditions of the policy are mentioned) of the product you are going to buy. Before you sign the dotted line.

•Do not solely depend on health insurance from your employer. Employer sponsored coverage is changing every year according to claims experience and budgets of your employer. You may suddenly find yourself or your family with very low or no coverage. It is becoming more and more difficult to get insurance for people above 45 years or people who have an ailment or health condition like diabetes/thyroid/hypertension etc.

•Check the maximum renewal ceasing age of the policy. This is the age when your policy will discontinue. Today, there are policies available which can be renewed for lifetime. Go for lifetime renewable policies.

•Ensure you spend time in finalising a good health insurance advisor, who would provide you unbiased advice across all leading insurance cos., as well as assist you for renewals and claims in the long term.

EXCLUSIONS
  1. Diseases already in existence at the time of buying insurance.
  2. During the first year,  treatment for cataract, benign prostatic hypertrophy, hysterectomy for menorrhagia or fibromyoma, hernia, hydrocele, congenital internal disease, fistula in anus, piles, sinusitis and related disorders.
  3. Any dental treatment or surgery of a corrective or cosmetic nature, unless it requires hospitalisation and is carried out under general anaesthesia and is necessitated by illness or accidental injury.
  4. Treatment of obesity and any other weight control programs.
  5. Vaccination, cosmetic treatments (including complications attributable to cosmetic treatments), experimental, investigative or unproven procedures or treatments, devices and pharmacological regimens of any description.
  6. Voluntary medical termination of pregnancy, pregnancy, child birth or their consequences, including changes in chronic conditions as a result of pregnancy.
  7. Naturopathy treatment.
  8. Injury while taking part in hazardous activities, including adventure sports, or as a member of the defence services and security entities.
  9. Charges incurred in connection with the provision or fitting of hearing aids, spectacles or contact lenses.
  10. Alcohol, drugs, HIV, AIDS and all related medical conditions.

Top 5 FAQs on health insurance

1.What is Family Floater?

     Family Floater is a very cost effective product, that covers an entire family under one policy and one fixed cover. This fixed cover is shared with the family members, i.e. if Vermas, a family of three buys a Family Floater Mediclaim of 3 lakhs, the full family covered can make claims of upto Rs. 3 lakh in a year, subject to other terms and conditions in the policy. In most policies Self, Spouse, and Kids are covered in a family floater policy. On the other hand, Individual Mediclaim is a product where each member is covered under a separate coverage. Taking individual policies turns out to be more expensive than Family floater. If you are a young couple, Family floater would be a better choice.

2.What is Pre-existing Diseases?

     Pre-existing Ailments or Diseases are Symptoms, Diagnosed Ailments, or any existing or past health condition which exist at the time of applying for Mediclaim Policy. When you apply for a Mediclaim, please ensure you provide a detailed medical background about your family. Ailments which already exist, are generally covered by Mediclaim after 4 years. In a recent trend, most Insurance companies now have started putting permanent exclusions for Pre-existing diseases in the policy.

3.Is Maternity Covered in health insurance?

     No, Maternity and expenses related to Maternity are not covered under Standard Mediclaim. There are some policies which provide Maternity cover after an initial waiting period of 2 to 4 years.

4.What is TPA?

    TPA is 24X7 outsourced agency of the Insurance Company, which keeps records of the policies issued by the Insurance Company, including people covered, benefits and exclusions. The TPA maintains the network of hospitals for the Insurance Company and provides the Cashless Card to the Insured Persons. TPAs process all claims including Cashless and Reimbursement claims on behalf of the Insurance Company.

5.Will Cashless Card provide Emergency Service?

    No, Cashless Card is not like a Credit card which can be swiped at the Hospital and you don’t have to make any payments. The authorization of Cashless between the Insurance Company/TPA and the Hospital normally takes 5-8 hours, and hence cannot be depended on for Emergencies. In emergency cases, Hospitals may demand a deposit to admit the Insured patient. Always have a Credit Card with a good balance handy for such exigencies.


Monday, 15 October 2012

Child Plan



    As parents you wish to provide your child with best possible atmosphere to grow and prosper in life. Education is a significant ingredient as part of that upbringing. Higher education costs are doubling every five years. Rising education costs going forward can upset your calculations due to substantial hike in education costs now and definitely in years to come. So make sure you save enough to cushion yourself against the rise and you as a parent need to plan your finances carefully so as to build a substantial corpus for your child's bright future.

Biggest worries for parents when saving for their child education is:

1) Rising cost of education
2) No knowledge of investment options
3) Not saving enough
4) Starting too late

So do evaluate the following questions as you plan for your child's education:

1. What proportion of your monthly income is saved for child's education?

2. When did you start saving for this goal? Have you earmarked investments specifically for your child's education? How often do you withdraw from investments meant for child education? What is the biggest challenge you are facing in saving for child's education?

3. What kind of investment options such as fixed income options (FDs, PPF), equity funds and stocks, traditional endowment and money back insurance plans, ULIPs and child ULIPs have you invest in and is it sufficient to meet your goal?


ChildGain
"Because your child has miles to go and you have promises to keep!"




Jiyo befikar

Fore more details feel free to contact us on navodhayamanagementgroup@gmail.com

Over view

Why is life insurance important ?

     Have you thought about your family's financial state, or your security after you've retired?  How will you take care of them, or yourself?
 
Before we get into the why is of life insurance, here's a brief overview:

Types of Insurance

     There are two types of insurance: Life & General. Fire, Marine and Miscellaneous Insurance all fall within the General Insurance.

What is Life Insurance?

    Life insurance is a policy that may be bought from a life insurance company, which helps beneficiaries financially after the owner of the policy dies. It is a contract between the policy owner (you) and the insurer (the life insurance company), which assures the paying out of a sum of money in the event of the policy holder's death, or terminal or critical illness.

    Specific exclusions are often written into the contract to limit the liability of the insurer; for example claims relating to suicide, fraud, and war. The cost or premium on your life insurance decides the type and kind of coverage you get under a life insurance plan.

    Life Insurance can also be a form of savings in the long run, which we will discuss shortly, or it can be tied in with a pension plan. Life insurance can provide security, protect home mortgages, and facilitate other retirement savings.

Life Insurance in India

    The Insurance Act, 1938, and Insurance Regulatory & Development Authority Act, 1999, have made life insurance in India a federal matter. Therefore, all life insurance companies in India have to comply with the strict regulations laid out by Insurance Regulatory and Development Authority of India (IRDA), irrespective of whether they are state-owned (Life Insurance Corporation of India) or private (ICICI  Prudential Life Insurance, Bajaj Allianz Life Insurance Company). 

Types of Life Insurance

    Taking out a life insurance policy covers the risk of dying early, by providing for your family in the event of your death. It also manages the risk of retirement – providing an income for you in non-earning years. Choosing the right policy type with the coverage that is right for you therefore becomes critical.
There are a variety of policies available in the market, ranging from Term Endowment and Whole Life Insurance, to Money Back Policies, ULIPs, and Pension plans. Let's see what each of these is about, so that you can consider the one that best suits you.

Term Insurance

     Term Insurance, as the name implies, is for a specific period, and has the lowest possible premium among all insurance plans. You can select the length of the term for which you would like coverage, up to 35 years.

    The premium payable on a term policy depends on your age and sex, the sum assured, plan tenure and your medical condition. Payments are fixed and do not increase during your term period. In case of an untimely death, your dependents will receive the benefit amount specified in the term life insurance agreement.
You can customise Term life insurance with the addition of riders, such as Child, Waiver of Premium, or Accidental Death.

Endowment Insurance

     Endowment Insurance is ideal if you have a short career path, and hope to enjoy the benefits of the plan (the original sum and the accumulated bonus) in your life time.

     Endowment plans are especially useful when you retire; by buying an annuity policy with the sum received, it generates a monthly pension for the rest of your life.

Whole Life Insurance

     Whole Life Policies have no fixed end date for the policy; only the death benefit exists and is paid to the named beneficiary. The policy holder is not entitled to any money during his or her own lifetime, i.e., there is no survival benefit. This plan is ideal in the case of leaving behind an estate.

     Primary advantages of Whole Life Insurance are guaranteed death benefits, guaranteed cash values, and fixed and known annual premiums.

Money-Back Plan

     In a Money-Back plan, you regularly receive a percentage of the sum assured during the lifetime of the policy. Money-Back plans are ideal for those who are looking for a product that provides both - insurance cover and savings.

     It creates a long-term savings opportunity with a reasonable rate of return, especially since the payout is considered exempt from tax except under specified situations.

ULIP

     Unit-linked Insurance Plans (ULIPs), introduced by the private players, are hugely popular, because they combine the benefits of life insurance policies with mutual funds. A certain part of the premium is invested in listed equities/debt funds/bonds, and the balance is used to provide for life insurance and fund management expenses.

Pension Plan

     Insurance companies offer two kinds of pension plans - endowment and unit linked. Endowment plans invest in fixed income products, so the rates of return are very low.

     Unit-linked plans are more flexible. You can stop contributing after 10 years and the fund will keep compounding your corpus till the vesting date. You can opt for higher exposure in the stock market for your plan if your risk appetite allows it. Lower risk options like balanced funds are also offered.

Riders: Comprehensive coverage

     In addition to the insurance plan of your choice, you might want to consider additional risk covers, in which case you can you can opt for riders: additional benefits that can be purchased with an insurance policy.

      Examples of riders include the Term rider, the Accidental Death Benefit rider, and the Critical Illness rider. Choosing the right set of riders ensures a comprehensive insurance cover.

     When considering a life insurance policy with riders, make sure to understand the exclusions in the policy. For example, under Term Insurance, if the insured person commits suicide, whether sane or insane, within one year from the date of commencement of a term policy, the cover will become void, i.e. the nominee cannot claim the sum assured.

     Only the premiums paid up to the date of death will be refunded; after deducting the expenses incurred by the insurer for issuing the cover.

     As important as it is to buy Life Insurance, it is even more important to pay your premiums on time. A life insurance company provides the insured with a grace period of 30 days, i.e. a period of 30 days after the start date of the policy.

     The insured can pay premium on any day during this grace period. In case the insured dies during the grace period, the insurer is liable to pay the death benefit to the nominee less any amount outstanding (including the unpaid premium). This provision helps the insurer to minimise the risk of policy lapse unintentionally.

In these uncertain times, you're better off planning ahead, and securing the future for yourself, and your family. Arm yourself with the facts for an assurance of a lifetime of security.



How much is your life worth?
      The difference between the present value of your projected expenses and your current financial resources is the amount of life cover you need today.
    The reason you have to consider present value of your projected expenses, not the actual unadjusted value, is that your family won't expend all their financial resources at one shot, but periodically.So while they draw from it periodically, the balance remains invested and continues to grow.  Adjust the total projected expenses for this incremental return by calculating its present value.
Expenses
  • Day to day maintenance expenses of family, excluding expenses towards self.  These should include essentials such as rent if not own a house, food, clothing, utility bills, children's education, travel and entertainment. Calculate an annual figure, increasing it by 5% every year to factor in inflation.  Do this calculation for the number of years you feel it will be before your dependants are in a position to meet these expenses with their own income.
  • Outstanding principal on loans taken.
  • Big ticket expenses relating to children, like higher education and, possibly, marriage. 
  • Emergency expenses
Resources
  • The current value of all your investments--what you would get if you encashed your holdings today.  In this calculation, don't include assets whose liquidation might alter your family lifestyle--eg: the house in which you an your family stay.
  • Death benefits (pension and gratuity) your family will receive from your employer if your were to die today.

Saturday, 13 October 2012

History of insurance

   As with so many things in so many facets of our lives, insurance too was born out of a primal need and shaped by socio-economic realities of the time.  In some sense we can say that insurance appears simultaneously with the appearance of human society.

     We know of two types of economies in human societies: natural or non-monetary economies (using barter and trade with no centralized nor standardized set of financial instruments) and more modern monetary economies (with markets, currency, financial instruments and so on). The former is more primitive and the insurance in such economies entails agreements of mutual aid. If one family's house is destroyed the neighbours are committed to help rebuild. Granaries housed another primitive form of insurance to indemnify against famines. Often informal or formally intrinsic to local religious customs, this type of insurance has survived to the present day in some countries where a modern money economy with its financial instruments is not widespread.


     A thousand years later, the inhabitants of Rhodes invented the concept of the general average. Merchants whose goods were being shipped together would pay a proportionally divided premium which would be used to reimburse any merchant whose goods were deliberately jettisoned in order to lighten the ship and save it from total loss.

In India, insurance has a deep-rooted history. Insurance in various forms has been mentioned in the writings of Manu (Manusmrithi), Yagnavalkya (Dharmashastra) and Kautilya (Arthashastra). The fundamental basis of the historical reference to insurance in these ancient Indian texts is the same i.e. pooling of resources that could be re-distributed in times of calamities such as fire, floods, epidemics and famine. The early references to Insurance in these texts have reference to marine trade loans and carriers' contracts.
Insurance in its current form has its history dating back until 1818, when Oriental Life Insurance Company was started by Anita Bhavsar in Kolkata to cater to the needs of European community. The pre-independence era in India saw discrimination between the lives of foreigners and Indians with higher premiums being charged for the latter. In 1870, Bombay Mutual Life Assurance Society became the first Indian insurer.
At the dawn of the twentieth century, many insurance companies were founded. In the year 1912, the Life Insurance Companies Act and the Provident Fund Act were passed to regulate the insurance business. The Life Insurance Companies Act, 1912 made it necessary that the premium-rate tables and periodical valuations of companies should be certified by an actuary. However, the disparity still existed as discrimination between Indian and foreign companies. The oldest existing insurance company in India is the National Insurance Company Ltd., which was founded in 1906. It is in business.
The Government of India issued an Ordinance on 19 January 1956 nationalising the Life Insurance sector and Life Insurance Corporation came into existence in the same year. The Life Insurance Corporation (LIC) absorbed 154 Indian, 16 non-Indian insurers as also 75 provident societies—245 Indian and foreign insurers in all. In 1972 with the General Insurance Business (Nationalisation) Act was passed by the Indian Parliament, and consequently, General Insurance business was nationalized with effect from 1 January 1973. 107 insurers were amalgamated and grouped into four companies, namely National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd and the United India Insurance Company Ltd. The General Insurance Corporation of India was incorporated as a company in 1971 and it commence business on January 1, 1973.
The LIC had monopoly till the late 90s when the Insurance sector was reopened to the private sector. Before that, the industry consisted of only two state insurers: Life Insurers (Life Insurance Corporation of India, LIC) and General Insurers (General Insurance Corporation of India, GIC). GIC had four subsidiary companies.

With effect from December 2000, these subsidiaries have been de-linked from the parent company and were set up as independent insurance companies.

      Bajaj Allianz Life Insurance Company Limited is a joint venture between Allianz AG, one of the world's largest Life Insurance companies and Bajaj Auto, one of the biggest two- and three-wheeler manufacturers in the world.
Allianz AG is an insurance conglomerate globally and one of the largest asset managers in the world, managing assets worth worldwide with 115 years of financial experience in over 70 countries.
Bajaj Auto is one of the most trusted name in Indian auto for over 55 years.

Bajaj Allianz General Insurance Company Company Limited is an Indian insurance firm. It is a joint venture between Bajaj Finserv Limited (recently demerged from Bajaj Auto Limited) and Allianz AG.
Bajaj Allianz General Insurance received the Insurance Regulatory and Development Authority (IRDA) certificate of Registration on 2 May 2001 to conduct General Insurance business (including Health Insurance business) in India. The Company has an authorized and paid up capital of Rs 110 crores. Bajaj Finserv Limited holds 74% and the remaining 26% is held by Allianz, SE.

Friday, 12 October 2012

A ROAD MAP FOR INSURANCE

A financial planner once said this about life insurance buying habits of Indians:

 " They don't buy life insurance, it's sold to them."
    Unfortunate, but true.  Individual awareness and understanding of life insurance product is extremely low, and many among the insured don't even know whether the life insurance policy they own meets their insurance needs and their personal finance needs.
  
     Disasters don't usually announce their arrival. They strike unnoticed, often with dire consequences that scar your world and play havoc with your personal finances.  You can take the greatest care in the world with all things precious, but you will never eliminate the possibility of harm befalling them.  What you can do is mitigate the effect of such eventualities on your family's finances, especially if they are finely balanced, by buying Insurance.
    Insurance, in its purest form, is a risk management tool, a security blanket. It provides you financial protection against unexpected events. If you are adequately insured, your life insurance should enable your dependants to maintain their current life style and pursue their life goals-till such time as they are in a position to set up an alternative income stream by themselves. That's the basic purpose of life insurance.
 When you buy insurance, you effectively transfer a portion of your risk to your insurer.  This protection comes at a price, but it's a fraction of what you might otherwise find yourself burdened with.Whatever stage of life you are at, chances are, you do need insurance.
A ROAD MAP FOR INSURANCE
AGELIFE INSURANCENON LIFE INSURANCE
Young 20s adultBuy only if you have dependantsBuy accident and Heath insurance, requisite asset cover
Yong 30s familySubtract existing assets from future expenses, and cover the differenceExtend health insurance to family; continue accident and asset covers
Mature 40s familyMaintain cover to balance the shortfall in existing assetsSame as above
Empty 50s Nester'sMaintain cover till you are earningTop up health cover for self and spouse, continue asset cover
Retired 60 & aboveNo life cover needed, unless you have dependantsContinue health insurance for self and spouse; continue asset cover

Why Buy Life Insurance?


     

     Life Insurance is a financial cover for a contingency linked with human life, like death, disability, accident, retirement etc. Human life is subject to risks of death and disability due to natural and accidental causes. When human life is lost or a person is disabled permanently or temporarily, there is loss of income to the household.
Though human life cannot be valued, a monetary sum could be determined based on the loss of income in future years. Hence, in life insurance, the Sum Assured ( or the amount guaranteed to be paid in the event of a loss) is by way of a ‘benefit’.  Life Insurance products provide a definite amount of money in case the life insured dies during the term of the policy or becomes disabled on account of an accident.

Why you should buy Life Insurance:

All of us face the following risks:
Dying too soon
Living too long

Life Insurance is needed :
  • To ensure that your immediate family has some financial support in the event of your demise
  • To finance your children’s education and other needs
  • To have a savings plan for the future so that you have a constant source of income after retirement
  • To ensure that you have extra income when your earnings are reduced due to serious illness or accident
  • To provide for other financial contingencies and life style requirements
Who needs Life Insurance:
Primarily, anyone who has a family to support and is an income earner needs Life Insurance. In view of the economic value of their contribution to the family, housewives too need life insurance cover. Even children can be considered for life insurance in view of their future income potential being at risk.
How much Life Insurance is needed:
The amount of Life Insurance coverage you need will depend on many factors such as:
  • How many dependants you have
  • What kind of lifestyle you want to provide for your family
  • How much you need for your children’s education
  • What  your investment needs are
  • What your affordability is
You should seek the help of an insurance agent or broker to understand your insurance needs and suggest the right type of cover.
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