Please do not reply back to this mail. This is sent from an unattended mail box.
Information provided on this newsletter has been independently obtained from sources believed to be reliable. However, such information may include inaccuracies, errors or omissions. Its affiliates, information providers or content providers, shall have no liability to you or third parties for the accuracy, completeness, timeliness or correct sequencing of information available on this newsletter, or for any decision made or action taken by you in reliance upon such information, or for the delay or interruption of such information. Its affiliates, information providers and content providers shall have no liability for investment decisions or other actions taken or made by you based on the information provided on this newsletter.
Rohan is a marketing guy who is a very smart professional when it comes to marketing his company’s products. Lately, he has got hospitalized due to the dengue fever in a private hospital near his place. The cost came out to be Rs 65,000 which unfortunately has to be borne by him only as he did not have a health insurance policy. However, this incident made him understand the importance of a financial back up for his health in the form of a “Health Insurance Plan”. He decided to buy a one for himself and his family. But being a layman, he did not know what are the important things to be considered before buying a health insurance plan. Here is a guide which emphasizes the 5 important parameters to be looked upon before you actually make a final buy of a health insurance plan.

1. Scope of Coverage
It is important to assess and evaluate the scope of coverage. Buyers may assume that purely buying health insurance is enough and suffice their health care requirements. Buyers buying a health insurance plan simply on the basis of premium, assuming “cheaper is the better” might end up limiting their scope of coverage. It is important to have health insurance with a robust sum insured which is the maximum limit of getting a benefit under a health plan. Rising medical costs can be combatted by opting for a sum insured large enough to substantiate the claim amount without making you pay out of your pocket. Also, the scope of coverage needs to be looked upon as per your need, requirement, existing cover (if any), family size, previous medical history, etc. Look for the comprehensive coverage which offers you benefits suiting your specific case. Like for example, in case you are opting for a family floater plan, look for the benefit of the sum insured restoration (recharge of your sum insured in case it gets finished in a policy year), if you are looking for a maternity benefit, look for a health plan offering maternity benefits and so on.

2. Room Rent Capping
It is important to check and assess the restrictions or upper limits in the form of capping and sub-limits before you buy a health plan. There are certain restrictions with regard to the benefits payable related to the coverage under the health insurance plan. Room rent is the per day benefit is given to you when you are hospitalized as per the eligibility under your health insurance plan. Traditionally, the capping of the hospital room rent is 1% to 2% of the sum insured on per day basis. Health insurance plans lately do offer “single private room” or the option to “upgrade your room” or some plans offer “no capping” on the room rent. Usually, health insurance plans with higher sum insured, offer the latter two options. Thus, it is important to ascertain the room rent eligibility under your health insurance plan before you finalize the plan. With medical inflation skyrocketing, getting treatment in private hospitals has become expensive and so is the hospital room charges. Try and check the hospital room rents for your preferred hospitals and match up with the room rent eligibility under your shortlisted health insurance plan which will give a fair idea.

3. Cashless Hospital Network
Cashless hospitalization is a seamless procedure which makes the hospitalization easy in your troubled time to seek healthcare. You just have to show your health card issued by the insurance company and hospital admission is almost done. But all hospitals may not be partnered with the insurance company to offer you such hassle-free treatment. Thus, to have a look at the list of cashless hospitals impaneled with the insurance company is important. Out of the list, it is crucial to see your preferred hospitals. List of cashless hospitals may include 6000 or 8000 plus hospitals, but such an exhaustive list is of no use until it includes the hospitals, which are nearer to your vicinity or your ideal ones for treatment. Treatment in the non-network hospital might attract co-payment (a specified portion of the claim amount to be borne by you) and cashless treatment will not be available. You have to spend the treatment expense from your own pocket and later claim reimbursement from your insurer by submitting all relevant bills and documents timely.

4. Claim settlement record
Claim settlement record is an important aspect which cannot be skipped. How many claims have been settled by the insurance company is important to be known as it reflects the inclination of the insurance company towards claim settlement of genuine claims and assures you that your claims and reimbursements would not be wrongly withheld. A consistent and healthy claim settlement ratio in which one must look for before finalizing an insurance plan from the respective insurance company.

5. Co-Payment
Co-payment is your co-share in the claim amount. Co-payments are of 2 types voluntary and mandatory. As the name suggests, voluntary co-payment is opted by you as an insured and mandatory is compulsive, co-payment which is there in the health insurance plan. Co-payment is expressed as a specified percentage of the claim amount. By opting voluntary co-payment, your premium will tend to be reduced by the insurance company as you are bearing a responsibility to share the claim amount in the predetermined percentage. Voluntary co-payment must be chosen if you are young, healthy individual as then the probability of claiming from a health insurance policy reduces. Don’t fall prey to the fact, blindly that your health insurance reduces by opting voluntary co-payment.  But, the surprise comes when you are unaware of the co-payment clause in your health insurance policy at the time of claim. So, it is imperative not to skip this clause. In a nutshell, the coverage amount needs to be assessed appropriately by the number of people that you want the policy to cover, your estimate of the health care costs and the existing coverage that you might have from other sources like employee provided group insurance. Healthcare inflation is increasing at a very high rate of 20% so go for a higher sum insured if affordable. Don’t fall prey to perceived value rather spend some time comparing plans and its coverage before you finalize your best buy.

Source:comparepolicy.com

We always keep looking for various ways to reduce the cost of the product we buy, so that the deal becomes cost effective without compromising on its benefits. And if the cost of the product is on a rise, then making the deal economical becomes our prime concern.  The same goes for a car insurance policy. On the basis of cost inflation and claim statistic, the cost of car insurance is revised every year by IRDAI and last year, the premium rate of car insurance policies was increased by 40%. The increasing price of car insurance is causing problems in the financial planning of many people, but there are many ways through which you can reduce the cost of car insurance premium and make it fit into your budget easily. That’s why we have outlined some of the important tips which will help you to reduce the premium of your best car insurance policy and tackle the increasing price of car insurance in the most effective way without compromising on its benefits.

1. Compare prices
Comparing car insurance policies allows you to choose the most cost-effective and best car insurance in India and with the availability of online car insurance policies, comparing car insurance has become very easy.  You might find a great difference in the price of two policies which are offering almost the same benefit and that’s why a comparison is necessary. You can compare car insurance policies through various IRDAI certified web aggregators or through the insurance company’s online web portal.

2. Install anti-theft devices and stay safe
Car insurance companies decide the amount of premium on the basis of risk associated with the car. Higher risk will result in higher premiums. That’s why the installation of anti-theft devices like anti-theft alarm, a lock for the steering wheel, air bags, etc., reduces your car insurance premium by 5%. And if you are linked with the Automobile Association of India (AAI) or the Western India Automobile Association (WIAA), you can get special discounts and benefits. The members of these associations are considered as “safe drivers” because such associations are empowered by the Motor Vehicle Act and Rule.

3. Avoid Small Claims
If you don’t make any claim for a particular period of time under your car insurance policy, then you are rewarded with No Claim Bonus (NCB) which allows you to lower down your premium till a limit. That’s why you should avoid making claims for small expenses which could snatch your NCB and opportunity to reduce your premium.  A small saving in the form of claims for small expenses can keep away from the big benefits which you could receive in the form of a reduced premium.

4. Go for a higher voluntary deductible
A deductible is the amount of money which you pay from your own pocket upon claim while the insurance company covers the rest. At the start of the policy, you can choose your voluntary deductible according to your need and situation. A higher voluntary deductible decreases your premium amount, but you should choose your deductible according to your affordability otherwise instead of lowering down the premium, you will end up paying more on each claim you make.

5. Transfer your NCB
You should always transfer your NCB after buying a new car and selling the old one. By transferring NCB, you will be able to take advantage of your accumulated NCB on your new car also. You should always remember that a car insurance policy is linked with the policyholder, not with the car. In order to transfer your NCB, you need to inform your car insurance company about the transfer and they will give you a form which will help you in the transfer.

6. Purchase online
Online car insurance policies are much cheaper than offline policies. While buying through an offline medium, a certain amount of commission is charged by the agent, which gets added to your premium amount while in online car insurance, there is no involvement of any middleman and that ’s why the insurance companies are able to provide you the insurance at low prices. Buying online gives you a wider range of options also so that you can choose the best car insurance policy for yourself.

7. Declare correct IDV
Insurance Declared Value is the value of your car which is decided by the insurance company and it is calculated by considering the depreciation value over the original market price. It is the maximum value which you will receive upon the claim in case of total loss or damage. You should always declare the correct IDV of the car because it will make you eligible for a reduced premium. So instead of worrying about car insurance premium popping out of your budget, you should use the above-mentioned tips and make the purchase of car insurance, an economical deal. But in the rush of reducing your car insurance premium, you should never compromise with its benefits.

Source:suggestinsurance.com

There are a few common mistakes that people do while planning their retirement. This article identifies them and helps you to avoid mistakes while doing retirement planning.

Don’t want to retire with insufficient funds?
There’s a secret recipe for retiring with adequate funds so that you can live happily and freely in your post-retirement. Plan strategically to ensure you have more than sufficient funds to enjoy your post-retirement life.

Let’s see how not to end-up retiring poor.
The trick is to plan your retirement without committing these mistakes.

3 Top Retirement Planning Mistakes to Avoid

1. You start retirement planning at a later stage of life

The real benefit of a retirement plan is only seen when you start retirement planning at a younger age than at a later stage of life. The key to doing the right type of retirement planning is to start early and stay invested till your retirement age. The longer the time frame, the longer your money stays invested, and consequentially, your money has more time to grow. This means the wealth accumulated during the period is more as compared to wealth if

Example: If invested at a later stage of life, when you start your retirement planning at the age of 45 years.
STARTING AGE RETIREMENT AGE MONTHLY INVESTMENT TOTAL INVESTMENT RATE OF RETURN FUND VALUE
30 60 Rs.2,500 Rs.9 lakh 8% Rs.35 lakh approximately


If invested at a later stage of life, when you start your retirement planning at the age of 45 years.
STARTING AGE RETIREMENT AGE MONTHLY INVESTMENT TOTAL INVESTMENT RATE OF RETURN FUND VALUE
45 60 Rs.5000 Rs.9 lakh 8% Rs.16 lakh approximately


As you can clearly see, even when the total amount invested is the same, the fund value is nearly half of the fund value if invested at an early life stage. Tip: Start your retirement planning from an early stage of life to reap the real benefits.

2. You Do Not Invest in Your Retirement Planning Wisely
Choose the right way to plan your retirement. There are many options to financially secure your post-retirement life. However, it is the choice that could definitely play a significant role. Retirement planning with the help of Life Insurance policy is one of the right and safest way to secure your post-retirement financially. You can opt for a dedicated Retirement or Pension plan to do your retirement planning. There are other different types of life insurance policies to help you with your retirement planning. You can choose from ULIP, Whole Life plan, or Retirement Plans.
Tip: Compare different plans and then choose the right type of plan that is suitable for you.

3. You Do Not Consider Inflation into Account
So, you started planning about retirement at an early age; you also chose the right option for your retirement planning. But, while buying the plan, you did not consider the inflation into account. The amount which may seem sufficient may not be adequate years down the line during your post-retirement. Tip: Consider inflation into account when buying a plan for your retirement. If you avoid these common mistakes, you can plan retirement adequately to enjoy your post-retirement to the fullest.
Ways to Enjoy Your Retirement Days
You have spent your whole life working, now is the time to sit back and enjoy life. Here are few ways to enjoy your retirement days

Maintain good health: Health is wealth. To fully enjoy your retirement, it is important to maintain good health. If your health is good, only then you can do other things to make your life enjoyable. Eat healthy to stay fit. Because in old age, the chances of getting ill or injured are more which may also take time to recover. Join a yoga class or do yoga, if possible.

Spend Time With Your Family and Friends: The most beautiful time of your life is when you spend it with your loved ones, i.e. family and friends. It is that time of your life when you can spend ample amount of time with your family and friends. Spend some time with your grandchildren. Play with them and share your experience.

Travel and Explore: There might be many places on your bucket list that you haven’t visited before or perhaps, you wish to visit again. Travel and explore new and old places. This time without any worries about the holidays or the number of leaves taken from work. There’s no place for work even in hindsight.

Avoid simple and most common mistakes while doing retirement planning.

Source: Coverox.com
There are a few common mistakes that people do while planning their retirement. This article identifies them and helps you to avoid mistakes while doing retirement planning.

Don’t want to retire with insufficient funds?
There’s a secret recipe for retiring with adequate funds so that you can live happily and freely in your post-retirement. Plan strategically to ensure you have more than sufficient funds to enjoy your post-retirement life.

Let’s see how not to end-up retiring poor.
The trick is to plan your retirement without committing these mistakes.

3 Top Retirement Planning Mistakes to Avoid

1. You start retirement planning at a later stage of life

The real benefit of a retirement plan is only seen when you start retirement planning at a younger age than at a later stage of life. The key to doing the right type of retirement planning is to start early and stay invested till your retirement age. The longer the time frame, the longer your money stays invested, and consequentially, your money has more time to grow. This means the wealth accumulated during the period is more as compared to wealth if

Example: If invested at a later stage of life, when you start your retirement planning at the age of 45 years.
Period Absolute Returns(%) CAGR(%) Benchmark Returns SIP Returns
1 Week 0.69 36.13 -2.5 0.00
1 Month -4.2 -46.51 -2.21 0.00
3 Month -1.66 -6.57 -0.24 -21.45
6 Month -6.83 -13.54 -7.56 -12.8
1 Year -2.52 -2.52 -3.7 -3.9
3 Year 61.62 17.32 16.51 6.66
5 Year 106.95 15.65 15.15 8.16
10 Year 514.84 19.9 15.96 12.25
Inception 5966.44 18.53 0.00 0.00
If invested at a later stage of life, when you start your retirement planning at the age of 45 years.
STARTING AGE RETIREMENT AGE MONTHLY INVESTMENT TOTAL INVESTMENT RATE OF RETURN FUND VALUE
45 60 Rs.5000 Rs.9 lakh 8% Rs.16 lakh approximately
As you can clearly see, even when the total amount invested is the same, the fund value is nearly half of the fund value if invested at an early life stage. Tip: Start your retirement planning from an early stage of life to reap the real benefits.

2. You Do Not Invest in Your Retirement Planning Wisely
Choose the right way to plan your retirement. There are many options to financially secure your post-retirement life. However, it is the choice that could definitely play a significant role. Retirement planning with the help of Life Insurance policy is one of the right and safest way to secure your post-retirement financially. You can opt for a dedicated Retirement or Pension plan to do your retirement planning. There are other different types of life insurance policies to help you with your retirement planning. You can choose from ULIP, Whole Life plan, or Retirement Plans.
Tip: Compare different plans and then choose the right type of plan that is suitable for you.

3. You Do Not Consider Inflation into Account
So, you started planning about retirement at an early age; you also chose the right option for your retirement planning. But, while buying the plan, you did not consider the inflation into account. The amount which may seem sufficient may not be adequate years down the line during your post-retirement. Tip: Consider inflation into account when buying a plan for your retirement. If you avoid these common mistakes, you can plan retirement adequately to enjoy your post-retirement to the fullest.
Ways to Enjoy Your Retirement Days
You have spent your whole life working, now is the time to sit back and enjoy life. Here are few ways to enjoy your retirement days

Maintain good health: Health is wealth. To fully enjoy your retirement, it is important to maintain good health. If your health is good, only then you can do other things to make your life enjoyable. Eat healthy to stay fit. Because in old age, the chances of getting ill or injured are more which may also take time to recover. Join a yoga class or do yoga, if possible.

Spend Time With Your Family and Friends: The most beautiful time of your life is when you spend it with your loved ones, i.e. family and friends. It is that time of your life when you can spend ample amount of time with your family and friends. Spend some time with your grandchildren. Play with them and share your experience.

Travel and Explore: There might be many places on your bucket list that you haven’t visited before or perhaps, you wish to visit again. Travel and explore new and old places. This time without any worries about the holidays or the number of leaves taken from work. There’s no place for work even in hindsight.

Avoid simple and most common mistakes while doing retirement planning.

Source: Coverox.com
Please do not reply back to this mail. This is sent from an unattended mail box.
Information provided on this newsletter has been independently obtained from sources believed to be reliable. However, such information may include inaccuracies, errors or omissions. Its affiliates, information providers or content providers, shall have no liability to you or third parties for the accuracy, completeness, timeliness or correct sequencing of information available on this newsletter, or for any decision made or action taken by you in reliance upon such information, or for the delay or interruption of such information. Its affiliates, information providers and content providers shall have no liability for investment decisions or other actions taken or made by you based on the information provided on this newsletter.