Tag Archive | "Life Insurance"

The Most Horrible Day of My Life

  • Easypolicy
  • 26 Oct 2016

Life offers a mix of happy moments and sad ones. Like change of seasons happiness and distress keep following one another. There are some days that offer such intense moments that both mind and intelligence succumb together. One such day came in my life; it was winter of 2nd December, 2011. I was having dinner with my family after a taxing day at work. Suddenly, the phone rang and at the other side of the call was my sister-in-law; she was crying and told me that my elder brother had passed away. I was shocked and the receiver fell from my hand. I reached his house as fast as I could; upon reaching there I consoled my family. When things were normal, I asked my sister-in-law whether bhaiya had any life insurance, to my utter dismay he hadn’t. He was only 40 and succumbed to a sudden cardiac arrest.

He was survived by his homemaker wife and a school going son. That typical tension was evident on bhabhi’s face that how would they meet ends, the savings won’t last for long. My elder brother was an engineer and was earning a good salary; his family was used to a decent standard of living, now the circumstances had taken a dramatic shift.  His wife was also an engineer by qualification but chose to be a housewife after marriage. If in her late 30s she goes searching a job, she won’t find anything worth replacing even a fraction of the income my bother used to get in the house. Thus, the situation was very grave.  It was my moral duty to support the family and since then I am taking their responsibility. Honestly speaking, at times the burden of this responsibility feels too heavy as I have my own family to support as well. But I never show it to bhabhi and my nephew. That is why I suggest everyone to get a life cover on priority basis.

Working class people live on a budget and have to plan for everything before purchasing. After paying for bills and saving for future, sometimes getting a life cover can appear to be too extravagant. One is often so busy in paying for things of immediate gratification that planning for death or its aftermath takes sidelines. Sometimes, we behave knowingly ignorant, it is not always that we skip to invest in a life insurance plan because of lack of awareness; it is because we don’t feel urgency for it. Planning for the aftermath of death sometimes seems like folklore or a prodigal activity. The psyche of delayed gratification or putting other’s interests before our own is something not easily attainable.

Whenever, we talk of a Term plan or other traditional life insurance plan, the biggest obstacle for the individual to buy it is that it does not offer any living benefits to him. The ideology of such people revolves too much around themselves and their love for their family is not unconditional. They care for their family because they need it. Such expression of love is based on selfish motives but real love is when you care for your family so much that their well being and happiness matters to you post your death also. This love is backed by servitude and responsibility. Yes, getting a term insurance plan won’t fetch you even a single penny while you are alive but it would give you immense peace of mind because of the surety  that your family’s future is secured. Such galore of peace and tranquility is pricier than any amount of Premium that you’ll be paying for a life insurance plan.

Term insurance plan is the cheapest life insurance plan when you compare in terms of the sum Assured it is backed by. Especially if you buy it at a young age when you don’t have any illnesses, the premium costs you very cheap. The premium gets locked at the time of purchase of the plan, i.e., when you buy a plan, the premium remains same throughout the Policy period with only minor fluctuations, that too because of change in the rates of service tax. So, every sane person who is working and has a valid income proof should get a life cover at priority basis. One raises a family with so much toil, sweat and blood and seeing them happy is quite vindictive, then why let death put all that effort and sacrifices go in vein?


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What Questions You Should Ask your Insurance Advisor?

  • Easypolicy
  • 23 Jun 2016

While planning to buy insurance policies you should ask loads of questions from your insurance advisor. The more questions asked the more the clarity about what to expect from the Insurer and what all problems would the insurance Policy solve for you.

One can be quite skeptical while purchasing a plan. You should ask loads of questions from your insurance advisor about the insurance company of whose quotes the advisor is presenting in front of you. You should know how long has the company been in business and what has its claims settlement record. You have every right to know the details regarding the coverage, features, hidden points and loopholes of each plan or policy you are considering.

It has always been seen that intelligent people ask the most number of questions, so never hesitate in asking questions. The more you ask the more you know and as it always has been, the knowledgeable makes the smartest purchase. Apart from asking questions from the advisor it is equally if not more important to self research about the insurance policy and the company you are going to buy from.

Important questions that you should be asking from your insurance advisor are listed below:

“Can a policy holder have both paper and electronic policies?”

Many people have this question. They want to be clear about the mode in which they can have the policy. The answer to this question is one can have the policy either in electronic mode or on paper but not on both.

 

“What are the Tax benefits applicable to me if I invest in a Life Insurance Policy?”

This question is the hot favorite of many people.  Everyone wants to lessen his/her tax burden. If you invest in a life insurance policy, you will get deduction under Section 80 C of the income tax act, 1961. The Premium paid shall be deducted from the taxable income within overall limit of Rs. 1.50 lacs per year along with other eligible items like Provident fund, EPF, NSC, ELSS, tuition fee, repayment of home loan etc. Moreover the proceeds from the insurance company at the time of claim or completion of policy are fully exempt from tax under section 10(10)D of the Act.

 

 

“How is my need determined?”

This is a very important question. How much insurance cover to go for? What all policies should I take? You need to sit with your insurance advisor and discuss this question in detail. Underinsurance i.e. having much lesser insurance cover than your needs is as good as having no insurance cover. Talking about term insurance, the cover should be enough to pay all your outstanding loans and still have enough left over for your family to lead a comfortable life.

 

“Does the policy provide living benefits?”

While taking life insurance policies people have confusion regarding whether they would get living benefits in their policies or not. This thing your insurance advisor should clarify in the beginning itself. Barring term insurance plans you get living or surviving benefits on your life insurance policies be it an Endowment plan or ULIP plan. Even in case of TROP (Term with return of premium) plan the company returns all the premiums received by it over the years if the policyholder survives the Term period. However, there interest loss on the premiums paid under this scheme.

 

“Will the death benefit adjust for inflation?”

The Death Benefit or the sum Assured remains the same and does not get adjusted for inflation. Thus, when planning a life insurance cover one must take guidance from the insurance advisor and take appropriate cover keeping in mind Inflation in the future.

 

There can be loads of other questions that are important to be clarified before signing up the policy like:

“How many nominees can I have?”

“Can a nominee be added or changed during the currency of the policy?”

“What all documents are required?”

“When can I expect returns?”

“What if my health changes during the policy period”?

“Does change in habits bring changes in the premium during the policy?”

“What happens if I can’t pay the premium?”

“What happens as I age?”

 

Find a good insurance advisor who has good experience and knowledge and ask as many questions till you become fully satisfied, then do your own research as well to verify you have received the correct information from the advisor. After being fully satisfied, convinced and after quenching all your doubts and curiosity related to the subject you may proceed with your insurance policy.


Group Insurance Getting Popular these Days!

  • Easypolicy
  • 28 Feb 2015

A group insurance Policy offers certain class of individuals the benefit of standard Health Insurance Coverage at very competitive rates. Majority of the group insurance schemes available on the market pertain to the employer- employee group. However, the guidelines of group insurance are not just limited to an employer-employee group, but it can extend to a group where there are common interests. Such groups may include employee welfare associations, holders of credit card issued by a specific company, borrowers of a bank besides professional associations or societies may also be considered as a group.

There are several benefits that a group plan offers as compared to individual health plans and hence they are gaining in popularity these days.

  • 1. Lower Cost
The cost of covering an individual within a group through a group insurance cover can be about 30% less than individual health covers. The low cost does not mean the health care coverage is compromised; rather insurance companies offer the discount as they are more than happy to pass on the savings they make in marketing and administration expense.

  • 2. No Medical Check Ups
When taking a group health cover an individual does not have to go through medical check ups to qualify for the policy. Since the insurance company gets a pool of people under the insurance cover any individual specific Risk is hedged by diversity of the population covered under the insurance policy.

  • 3. No Waiting Periods
An individual health insurance policy has several waiting periods for specified reasons and diseases. But with a group insurance policy you can get a fuller coverage for your needs. Group insurance policies generally would have a Waiver on these waiting periods. To get a handle on how valuable the benefit is let us look at the various waiting periods that individuals have to accept when they buy a health insurance policy.

 30- Days Waiting Period – In order to ensure that people are not buying a health insurance policy to get an immediately pending Hospitalization expense covered, insurance companies have a 30-day waiting period before a Claim can be filed. In case of group insurance policy, such a waiting period can be done away with.

Waiting period for Pre-existing disease – Likewise, individual health insurance policies have a 3 to 4 year waiting period before which they allow Reimbursement of health claim for expenses related to some pre-existing diseases. This however, may be waived off in a group insurance policy.

  • 2 year waiting period – Apart from pre-existing diseases, insurance companies also disallow coverage of pre-specified illnesses or surgeries for a period of upto 2 years which as well can be waived off in a group insurance plan
Thus, by virtue of some very obvious benefits that group insurance policy offers they are getting increasingly popular. Employers and companies find these an effective tool to enhance employee and customer satisfaction and thus enhance their own business prospects in turn.