What is health Insurance.

What is health Insurance.

Health insurance is an insurance plan offered by insurance companies which wll covers all the costs and expenses which are related to the medical expenses. This type of insurance plan is bought for an individual as well as for a whole entire whole family. Term for Health insurance is fixed at one year and in often cases, we can buy a plan with the term of two or three years as well as too. Health insurance is a very good choice in case of any emergency, we can treat our beloved ones at good without worrying for financial costs.

How It works?

  • Health insurance plan takes cares of the whole expense of hospital subject to long terms and rules of health insurance policy. That insurance plan overlay before and after hospital expense too.
  • They also have a cashless treatment available by which you will get the bestest medical care’s at any sponsored hospital network of their choice and all the treatment expense bills to your treatment is done from the company by itself. In this way, the injured can gets operated immediately without waiting for the funds to be arranged.

 

Eligibility Criteria For Health Insurance Plan!

As discussed earlier, health insurance plan protects our and our’s family health and provides financial security against emergencies. If you go for individual or family health plan, there are some conditions which we have to fullfill in order to join this health insurance plan. Which are discuessed below,

  • Age Criteria

Minimum entry Age criteria for adults in health insurance plan is 18 years old and there is no maximum age boundries. In some polices, the entry age criteria is ristricted from 18 years to 65years.

 

  • Other Criteria

Further, Health Insurance companies want themselves to be sured that you are worthy to them and doesn’t come with a risk to them. So in order to remain safe, the insurance company will check your medically and physically in order to sell their suitable health plans. They check your for,

  1. Life Styles Diseases
  2. Smoking and Drinking
  3. Pre-existing Diseases

 

Major Advantages of Health Plans

Health insurnace policy plan comes with huge Advantages and features with out compromising at any aspect of our health.

  1. Pre and Post Hospitalisation

Health insurance will not only pays for our full hospitalisation expense but also pays for pre post hospitalisation expense like expense on diagnostics, pharmacy etc.

 

  1. Cashless Hospitalisation

All health plans enable us free hospitalisation feature where we can get admitted in any network hospital and wont pay bills from our own pocket. The treatment cost will be settled down between the local of hospital and the insurance company.

 

  1. Save Money

Medical costs a lot of money but with a comprehensive health insurance plan, majority of our health expense will be paid by the insurance company.

  1. No Claim Bonus

If you don’t case for claims in a given policies year, the subsequent year will make you earn no claim bonus which start at 5% increase and gets up to 150% during the subsequent years

 

  1. Critical Illness Rider

Health Insurance plans comes with cover to critical illness like cancer, paralysis,kidney failur, diabetes and usually all those illness which treatment’s causes a lot of money will pay for the mentioned disease but we have to pay additionally for new rider.

 

  1. Day Care Procedures

Some medical treatments which is chemotherapy and dialysis may not require 24 hours. For such day care expense, the insurance company has special offers and privision for you that you wont get paid by your resources

 

  1. Senior Citizen Plan

When peoples gets old, there are a lot of medical complication and problems occures. And will require best medical checkup. Health insurance plan also help you to meet all costs related to health related issues in old age.

 

  1. Annual Health Checkup

Many insurers companies offers free annual health checkups. These annual checkups can be conducted to the elected centers only and the insurer will pay directyly to the center directly.

Conclusion

From the above discussion, we concluded that health insurance policy plays a very major role in  health sector of individual as well as family. So health insurance plan should be done as soon so for the healthier position of your beloved ones

 

Term Insurance and its Benefits

Term Insurance and its Benefits

For Example, Suppose you are driving on a highway in a brand new ferrari along with singing the latest and your favourite tune beating down from your Mp3 Player and suddenly a kid tries to cross the road just ahead to you, by attempting to safe his life you try and risk your’s life by putting emergency brakes and then…bhoom.!

Pure Term insurance is knows pure risk cover’s plan. It is called risk cover plan because it helps our financial problems connected with any life threat arising to us. Term life insurance will not only reduces the risk but it also helps us our beloved one’s to overcome the financial problem which will be arise because of any particular risk like death of beneficiary.

Why Buy Term Insurance?

Everybody thinks and believes that nothing will happen to them and they will live healthy for the entire life but there is always an element of risk which always says “ What if?’ therefore the term life insurance plan is brought to concern with the word “ What If”

The purpose to buy term insurance is different from person to person but the most common benefits which make the person to buy this term insurance plan is defined is,

For a Secured Family

If  you are the only sole earner for your family, then the term insurance policy is very much important for you. If in case something happens to you, the term insurance policy will take care of the your loved ones. Through out the term life insurance option, there will be no financial burden on your beloved one’s in your adsense and your family will carry on their life as they dreamed to do.

Safeguard against liabilities

During our agreement, we take many liabilities to buy our home, buying a new branded car etc. These types of liabilities are usually paid over a period of time but in case of something happens to you, these burden of repaying the liability will be your concern to pay. But if you have term life insurance, you are not concerned of repaying the liabilities. The insurance will take care of the liabilities.

Benefit for Nuclear Families

Unlikely old times, there are very less join families nowadays. These adays the only support your family has could be you. But what if something happens to you? If you didn’t buy term insurance plan  then in your absense, your family may faces crucial and tough things to handle.

Term life insurance is Cheap

Very much unlikely, other life insurance products we can buy term insurance plan at a very cheap and reasonable price. For example a risk cover f rs 5 Million for a male of age 25 years would be as low as 4184 Rupees per annual, which is less than 12 Rs per day.

Term Life Insurance as Tax Benefit

Term Life insurance also gives us tax Benefits. Term Insurance policy provides you tax benefit. That’s the reason when you buy term life insurance, actually you’re saving your money.

Types of Term Insurances

  1. Level Term

This is the dafault setting for the term insurance plan. This one is the most common term plans that people usually go for and most of all the insurance companies offers this plan

 

  1. Decreasing Term

The Life cover of decreasing term plan slowly reduced or decreases over a period of time at a predefined rate while the premium of the plan remains constant. These types of plan are renewable on annually basis. This type of insurance plan is more economically good when compared with the rest of the other types of term insurance plans.

 

  • Increasing Term

As it name compiles, increases the coverage over a period of time. This term is little handy because it may gets leads to inflation and would choose sum assured according up front.

 

  1. Return of premium

One the latest addition to the types of term insurances. It address the concern that many people think term insurance is just not will give profit if they remains survive. If you choose for this type of return of premium, the company will refund your entire amount that you have paid as premium

 

  1. Death Benefit

In the unfortunate or undue event, the person nominised by the holder will receive the sum assured as per policy documents

 

How much term life insurance cover do I need?

The General Rule says that a person should buy and choose term insurance cover which will be 8times the annual income for example today, If I earn  1 million per annum so then the amount of term insruance will cover should be 8 millions.

SBI Child Insurance Plan

SBI Child Insurance Plan

Only Parents knows that it isn’t an easy task to secure the future of their children. Parents must thinks about the expenses of their children’s education and medical need which are growing rapidly in the recent times and have to be worried and make your self prepare to handle the future expenses of your children.

But However, there is a simple way to secure the future of your children’s future. We can do it by simple choosing a child life insurance policy plan, offered by SBI which provides the best saving and security to our children.

SBI Life offers two types of insurance plans for your children and we can easily choose the best which matches our requirements. Let us discussed the both types of children life insurance policy,

Smart Champ Insurance by SBI Life

In this plan, the policy’s holder life will be covered throughtout the tenure of the policy agreed. The nominee is usually the child whom we want to get benefited from this policy. This type of policy is best when we want to save money for the educational purpose of our beloved childrens.

Basic Feature of SBI Smart Champ Plan

  • When the child reaches the age of 18 years, smart benefits is started to flow every year till the children’s age reaches the age of 21.
  • The Educational needs of the child can be easily fullfilled as we gets money every year in equal installments.
  • This protection is gauranteed even in the absence of the policy holder and this feature is major in this plan.
  • We can choose the method to pay premium i.e in a regular installment or in a sinle payment according to our ease.
  • It is also possible to pay the premium in limited terms by choosing a relevant category for it.
  • In the event of permanent disability due to any kind of accident, the policy holder will immediately gets benefit and there will be no need to pay future premium for that plan
  • The policyholder is also eligibale for tax benefits according to this plan.
  • We can also gets the profit from this plan and this is a very good option to keep the money grow annually. This is a gauranteed benefit plan.

 

Eligibility Criteria For Smart Champ Plan

  • The Age should be at minimum of 21years and maximum of 50 years for the entry for the life assured plan.
  • The age of the entry for the child should be minimum 0 years and maximum 13years old.
  • The Maximum age at maturity is 70 years and for a child,it is 21 years old.
  • We can easily pay the premium every month or we can also choose quarterly, half yearly and also annually payments plans.

 

Surrender Value of Smart Champ Plan

After the paying the premium for some years, the policy attains a certain surrender value which depends up the terms which will be mentioned in the plan signed. In this way, we can get funding for emergency expenses in our life by simply taking loans on the policy.

Important Note:

The important point is that there are no riders in this plan. You can return the policy and get it terminated anytime within a few weeks after buying this plan if in case you are not satisfied with the terms of the policy. This policy comes with the exclusion that no profit will be given in the case of any attempt of commiting suicides.

2: Smart Scholar Plan from SBI Life

This is a market linked policy plan through which we can grow our investment and also gets security for our life. This is a good method to secure the future of our children as we gets market linked benefits from it along with insurance benefits in one plan. It is also a best option when we want to save tax on a regular basis.

Basic Features of SBI Smart Scholar Plan

  • In this plan, the life cover is provided for the parents and the age restriction for the childrens is in the range of 0 to 17 years old.
  • After completion of term, the fund value can be used for education or any other requirement of our children.
  • If in case, the insured person dies during the time of the policy, the lump sum benefit will be passed to the beneficiary

 

Eligibility Criteria for Smart Scholar Plan

  • Age of entry for the parent should be between 18years to 57years and the age of child should be between 0years to 17years.
  • The Maturity age for the parent is fixed at 65 years of age and for the child it ranges from 18 to 25years.
  • The Time of the policy ranges from 8 years to 25years.

 

 

 

Important Note

This is a linked market insurance plan and so there will be no option to withdraw or surrender the policy within the 5 years of commencement of that particular plan

 

To Summarize

From the above discussion, we can easily select the simple insurance plan for our children. We can choose a simple child insurance plan by going for Smart champ Plan. On the other hand if we want to keep our money grow by taking some risk, we can select the smart scholar plan.

How to select the best life insurance plan?

How to select the best life insurance plan?

 

A good Life Insurance plan covers the risks to our life and also offers financial protection to our family members. For example, If you are an employee in any institude, you should buy a policy according to as per your annual earning. Expert says “ The choosen insurance policy should offer atleast 10x times your annual earning as a compensation. The lump sum of money will be given to the beneficiary in any case of undue or unfortunate death of that policy holder. This amount of money will help the beneficiary to keep maintain their life normal in the presence of their beloved one without any compromises. Let us discuss some of the major benefits of Life Insurance Plan;

Benefit of a Life Insurance Plan

  • We can easily save money.
  • delivers money at regular intervals of time
  • It helps us to meet our life’s goals.
  • It also provide protection to family’s future.
  • Accidental death is protected.
  • It is also free of income tax.

 

A best life insurance plan

To buy a best life insurance policy, first and the most important step is to be aware of our insurance requirements. Secondly we must know about all the features which are providing by repited insurance companies. Third and least important is that we only should choose insurance premium which should be affordable. By having these three steps in our mind, we may get high sum assured.

The Maturity proceeds are mostly paid at the end of the terms years or after the undue or unfortunate event of the polciyholder’s death. But one the greatest advantage of such policies is that we will get an exemption on the premium we pay and also of the maturity proceeds.

There are many more special life insurance polcies which help us to fullfill our family’s need. Children plans helps us to offer best education for our children in our absence. Our Child’s dreams of their higher eduation and their professional studies are also fullfilled with a children’s plan. We will also be able to take care of our children’s wedding expenses if we choose the best insurance plan.

Traditional Insurance Plans

  • Term Plan
  • Endowment Plan or Money Back Plan

 

Term Plan –  we can buy term insurance plan with the lowest possible premiums we ever have. The term plan policy is considered to be the purest form of life insurance policy. It also covers the risk but it wont provide returns after the end of their policy terms. In the event like undue or unfortunate death of the insured, the sum assured is paid to the nominee or the beneficiary made by the policy holder. Term plan with return of premium is a new modified version of the term insurance plan in which if a policy holder survives after the term, the premium which is paid by the holder will be returned back to the policy holder by the insurance company.

 

Money back or endowment policy – Money back or endowment policy will be very much helpful in meeting your financial needs.as per the rules of the policy, we will be paid 25% of the money we assured in 12th year, 13th year and 14th years and rest  money with annual bonuses is paid after the date of maturity discussed in the terms.

The difference between edowment policy plan and money back plan is a very small i.e, if we choose  a plan an endowment,  the maturity amount is to be paid to us after the term’s end and zero payment before’s the maturity date’s but in money back plan, it gives 25% of the money in 12th,13th,14th, and 15th year.

Selection of a Life Insurance Product

We should keep these points in order to choose the best life insurance policy:

  • Insurance Premium
  • Return Policy
  • Customer Support
  • Online policy
  • Claim process

Conclusion

The best life insurance plan must covers all of your risks efficiently. We should be able to pay the premium without any difficulty in the future and their return policy should fullfills our and our family’s needs in a best possible way.

 

ULIP vs. Term Insurance – The Big Debate

ULIP vs. Term Insurance – The Big Debate

“ Never mix investment with insurance” Mostly we are fimiliar with this quote and advice by the expert. Even many of us swear by it.

As we know that insurance’s product have different pros and cons, Every Insurance buyer faces the problem over for making a right choice to choose a right product. This type of problems can only be solved by debating over it. One of those debate is called Term Insurance and ULIPs. Many of the expert recomends Term Insurance via their newspaper column and their Private Blogs. While some of them also suggest that if a person is looking for a policy which might act as both I.e investment and Insurance, ULIP will be a better option for them.

While both have their up and down,s. the Term insurance is being covered by every investment guru. But should we stand in a same line like other peoples do?
Absolutely not! It is very much important to examine each side of a plan which we are going to choose. In order to make these things easier to you, here we are discussing the important and necessary facts  of  Term’s insurance and Unit Linked Insurance Policy. we hope it will help us choosing whats right for us.

ULIPs or Unit Linked Insurance Policy

ULIPs which is also called unit linked insurance plan is a combination of insurance and investments both. In ULIPs, one side of the premium is paid towards the insurance which is called motality charge while the other side is invested in different sides parts of different investment options which are market funds, bonds, debts, Owner’s Equities, and may be hybrid. The selection of these funds is upto your choice.

On papers, ULIPs are very much often considered as one of those plan which is too good to be true. Investment Flexibility and fund’s switching are of the highlights of ULIPs. In Simple, it means that we can choose any of the funds in which we want to invest in and can easily switch between the options which are mentioned above. These transfer of accumulated funds are smooth and doesn’t lead to any of the ramifications of tax.

But However, the number of free switches are limited and may vary from insurer to insurer. As we know that the purpose of ULIP’s is likely to invest and insure so in order to keep the relation with it. You might need to pay the additional charges like admistration charges, funds management charges, and policy mortality charges.

Term Insurance: What Makes it More Attractice?

The Term Insurance is a known as a pure death benefit plan. In a very simple words, this assures your’s family financial security in case of your death. It also serves as an income replacement tool at your undue death at an affordable premium. As it has no investment components, it also covers your nominee for the the duration of policy without any changes in its premium. This premium’s benefit can be more enhanced by clubbing the basic policy with notable add ons which are waiver of premium, Accidental death benefit, return premium and critical illness rider etc.

This policy duration varies between 5 years to 40 years. If in case you are not able to pay the premium’s due doesn’t matter what the reason is, your cover will be ceased. You will not get to any of it’s benefit in that case. Therefore it is very much important to pick a premium plan that we can afford in a long term run throughout the policy tenure.

Parameters ULIP Term Insurance
Type Insurance + Investment Only Insurance
Ideal forInvestment Any one who can invest in long term Only families having bread winner’s absence
Charges Agent fees, funds switching, policy administation, funds allocation charges No Charges
Ideal tim to buy Can be buy at any time Between the age of 25 to 35 year
Lock in Period At least 3 years to 5 years Between the age 25 to 35 years
Security Not Secure Highly Secure
Switching Option Switching allowed between packges No Switching allowed

 

Our Take
Right Now, We know the comparison between the term insurance and ULIPs is likely comparing a chalk and a chees. Both are insurance products but with different purposes. Always choose the one that matches your financial goals and priorities.