Notice: Constant LIBR already defined in /srv/www/ on line 12

Notice: Undefined variable: arr in /srv/www/ on line 200

Notice: Undefined variable: arr in /srv/www/ on line 200

Notice: Undefined index: loginID in /srv/www/ on line 214

Notice: Undefined offset: 1 in /srv/www/ on line 866

Notice: Undefined variable: adjacents in /srv/www/ on line 883

Notice: Undefined variable: margin in /srv/www/ on line 948

Notice: Undefined variable: padding in /srv/www/ on line 948

Notice: Undefined variable: moduletype in /srv/www/ on line 961

Notice: Undefined variable: moduletype in /srv/www/ on line 973

Notice: Undefined variable: moduletype in /srv/www/ on line 973

Notice: Undefined variable: moduletype in /srv/www/ on line 973

Notice: Undefined variable: moduletype in /srv/www/ on line 973

Notice: Undefined variable: moduletype in /srv/www/ on line 973

Notice: Undefined variable: moduletype in /srv/www/ on line 1026

Notice: Use of undefined constant title - assumed 'title' in /srv/www/ on line 885

Notice: Use of undefined constant meta_keyword - assumed 'meta_keyword' in /srv/www/ on line 886

Notice: Use of undefined constant meta_post - assumed 'meta_post' in /srv/www/ on line 887

Notice: Undefined variable: module in /srv/www/ on line 918

Notice: Undefined variable: moduletype in /srv/www/ on line 919

Notice: Undefined variable: articlename in /srv/www/ on line 920
Life Insurance Articles | Tips | Latest News | Information, India- My Insurance bazaar
Related Articles

Why adequate insurance cover is important for the women of the house?

A country with 994 women for every 1000 men is grossly uneducated about having an adequate amount of insurance for the women of the house. In most of the cases are supposed to the primary bread earner for a family so they are generally insured with the highest sum assured amount but when it comes to women it is grossly understated. Even in families where the women are also a part of the earning fraternity of house still most of them remain either underinsured or uninsured.

Take the case of family where the female member is sharing the home loan liability with her husband but when it comes to insurance you will generally find that the sum assured for the male member is always very high and compared to the female member. This is technically a paradox situation which people generally ignore. In today modern households where both the members are working and are equally responsible for the long goals and liabilities of the family having less insurance cover for the female member can considerable repercussions on the financial health of the family if she dies an unforeseen death. So it is always advised to have a term insurance cover for the women in the house to the extent of the financial responsibility she shares with her husband.

Adequate insurance for the women in the family becomes more important if her parents are dependent on her or if she is a single parent. In both the case the overall financial liability of the family lies with the women of the family. Right amount of term insurance cover is very much needed for her to handle unforeseen situation which her dependent parents or children may fall into in case of her death.

Another important scenario to look into where women of the family are mostly uninsured is the case when they are just homemakers. People generally ignore them because they don’t form the part of financial backbone of the family. They don’t earn anything for their family. Few years back even insurance companies ignored things but now things are considered in a much different way. A woman who is the homemakers if dies early the loss is not just the moral hazard but there are other things that need to be considered. We generally ignore the invisible labour which the homemakers puts in terms of taking care of the elderly and children of the family and how she contributes to financial planning of the family.A sudden death of the homemaker can lead to unwanted financial cost which one need to bear, the things that she was taking care of now need to be handled by somebody for which you might have to pay an extra sum of money. In fact most of the insurance experts advise to have at least a term insurance for the homemakers in which the sum assured should be not less that 50% of the cover of the husband.

A well planned approach is always important whether it is the men or the women of the family. You can always look for online term insurance for the women of the family. Online versions are always cheaper and help you to plan things in the smartest way. 

Read More

Breaking The Common Myths About Term Insurance Plans

If you call yourself as financially planned then you should be quite aware of the importance of a  term insurance policy in your financial plan.

Technically insurance is layman terms can be defined as a service where you pay a cost to a person, the so called insurer to take care of your life’s financial risk . In any case the emergency arises the insurer would take the loss on them so that the same doesn’t affect your wallet.Going by this principle a term insurance plan is the most effective and cheapest way to secure yourself from any type of  financial risk. Say in a family when you are the only bread earner and the rest of the family dependent on you for regular upbringing and reaching their own life goals .Then your death in a scenario like this can be very disturbing for the rest of family.This is the biggest risk that anyway need to take care of and this is where you term insurance plan can act as the real weapon.


Though the benefits are endless but still people want to give a second thought before buying one and that is only because of myths that surrounds term insurance. Some of the common myths that need to broken are broken below

a) One of the common myths is a financial instrument which doesn’t return is not worth of investing. People might end up buying other forms of life insurance plans because they give return on maturity but avoid term insurance. This mind sound quite hilarious if you do the real calculation.A regular life insurance which gives money in return generally charges you a much higher cost for the same amount of insurance when compared with a term plan and the return on investment they offer is very less but still get carried away by the fact that the money is returning back. Actually they give you a low return because a part of the money is actually not invested and the insurer cuts the same as cost for the insurer cover it offers to the policyholder. So if the objective is just protection then it is worth buying a term plan.

b) This is a common myth that all insurers are same and they don’t give claim.This is actually a matter of trust, you should know that insurer is actually in the business of settling claim and not take away your money.Cases that you hear about claims being rejected are generally either because the claims raised don’t fall under the rules binding the policyholder and the insurer or something not being disclosed at the time of taking the policy. Hiding of information is a common phenomenon and people do it because they be might be saving some money on their premium  initially .

c) Buying term insurance too early or too late is not beneficial.This is actually a technical problem is most of the people who avoid buying term insurance . It is never too late or too early.Definitely buying it at a much younger age can give you benefits of getting highest cover and lowest premium but still if you are looking at insuring your financial risk at any age term insurance is always the best and the cheapest option.

d) I already have group term policy from my employer so i don’t a individual term plan.One should keep in mind the amount of coverage should be calculated keeping perspective of the overall requirement of your family and existing financial liability. You should always look at the amount of cover the group policy has to offer and in most of the cases you will find the amount is not enough considering your family requirement so the rest of the requirement can be taken care by individual term plan. On the other hand you should always keep in mind that once you leave a particular job you group cover cease to exist so you should always have your own backup plan in place.

e) Term insurance cover can’t be increased, this is again a very common myths.Though in the old days of term insurance this used to be a phenomenon but in recent times there are many options in which when at a later age where you need a larger amount of covered because of increased income you can anyways increase the cover of the existing plan rather than buying a new plan.

f) Last but the most common of the myths is related hassles of buying term insurance plan online. People feel the process is very tiring but on the other hand the process is actually very easy. What you get as a benefit is that you are able compare a lot of other term insurance option just by a click of a button. In fact buying online give you a benefit of discount for being an online policyholder. Insurer perceive online customers as less risky because of the amount of information one has and so incentivizes the policyholder for it and the premium is quite low compared to if you bought the same policy offline,


Read More

Individual Or Joint Term Insurance: Which One To Look For

Invariably term insurance is the most effective form of life insurance which anybody should look for their personal finance portfolio. Plus the affordability and coverage offered by a term plans makes it the most favored financial instrument for anybody to secure future of their loved ones. The plan is simple and straight, in case of demise of the insured person before the completion of tenure of the policy, the nominee get all the benefits at one go. The benefits that the nominee gets are completely tax free in the hands of the receiver under Income tax Section 10(10D).

A term insurance can be quite effective for you as person also. Lets understand by a scenario where you are only bread earner in the family and your monthly salary is something on which rest of the members of family are dependent on for daily needs and long term financial goals.In a scenario like this your death can lead to a financial turmoil in their lives and this is where the term plan that you have brought come as a great help. Other than this the affordability would always an important factor that lets you consider term plan as the right option to get insured.

Joint or individual term insurance:

Though the concept of joint term insurance is very new to India and you will very insurance companies are offering products under this category but still at times the option can be looked as a smart opportunity of getting insured when compared with individual plans. You will also have an option to buy two separate term insurance plans for people who are more important for the rest of the family. Joint Term Insurance Plans a Better Option For Working Couples and the financial plan for the rest of the family is considered on a joint basis.

The key feature of a joint plan and which is mostly common is the expiry of the policy happens on the first claim basis.if both the husband and wife is insured under a joint plan,if any of the member dies first before the completion of the policy tenure  the total sum assured is paid to the other partner and policy ends there. But when compared to buying separate individual plans even if one dies still the other policy continues. Some joint plans come with a rider where the other member is paid monthly income till the completion of the plan tenure and on a later stage sum assured is paid. One of the key demerit of joint plan is that even if both the members die due an accidental scenario only one claim is paid. In case of divorce the policy would always cease to exist subject to condition the other member stay prepared to take the burden on him or herself.

Though with all the merits and demerits joint plans are there and generally cheaper compared to buying separate individual plans.It all depend on the scenario and how you are managing your personal finance balance sheet which would define which type of term insurance plan is suitable for your needs.

Read More

Critical Points To Be Considered While Buying An Online Term Insurance Plan

Going by the basics we all know that online term plan is always a cheaper option compared to its offline counterpart because of very many reasons, one being that the insurer considers more risk averse so they charge them a low price for the same amount of cover. Other than the low price a online term plan also qualifies for the same type of tax benefit which any offline plan or any form  of life insurance plan qualify. You can always get tax exemption under section 80C to a maximum of Rs.1.5 lacs on the premium that you pay towards buying or renewing a term plan and can also get an additional benefits under section 80D to a maximum of Rs.25000 if your term plan has a critical illness add-on against which you have paid an extra premium over and above the premium of your term plan.

The above mention benefits are quite common for any type of online term insurance plan but to buy the best plan that not only fits in your budget but also has the requisite cover that you require you need to consider few critical points which are listed below

A)Insurer’s reputation is very important:  This is always an important factor to consider. Insurer’s reputation defines the stability and trust the insurer has. Since the relationship between the insurer and insured is very long term so reputation becomes an important factor to consider.

B)Expenses and cost factors: We should understand the expense structures under a term plan are a critical component under an online term plan. You should know that in a regular term plan if claim doesn’t arise the premium that you have paid over the years goes to waste. The expenses and the cost structures are very important which makes the premium of the cover low. To reduce the cost further you should look for insurers who offer discount premium rates for non smokers.

C)Convenience: Over all sets of protection plans that offered today by insurers term plans have shown the highest level of advancement. You should be able to judge well what you pay against what you are getting. The plan should have a flexibility in terms of pricing which means if you opt for additional cover you pay extra and if your reduce the cover the premium cost should go down accordingly.

D)Claim settlement ratio: This is a critical component while selection online term plan. A claim settlement ratio can be defined as the claim which is settled by the insurer considering 100 claims being made. The real test of insurer insured relationship comes when a claim is raised Higher claim settlement ratio of the insurer is also a measure of the rating of a particular term plan.

E)Riders : Riders are something that can make a plan more robust. Though the policyholder end up paying an extra cost for it but it can help a person to customize the term plan. A plan that offers multiple riders to suit your needs makes it more flexible and effective for a person to look into while buying a policy.

Looking at the long term relationship between you and your insurer under a term insurance policy one should give effective impetus to the above critical factors and should consider them a benchmark to choose or reject a plan of an insurer and not just consider the cost of the premium.

Read More

3 Smart Ways For Individuals To Save Tax For FY 2016-17 Though Insurance

Already with rise in the cost of living has caused lot tremors in the life of middle class today .The worries have further aggravated because of current rate of health care inflation which it at its zenith compared to past years. So everybody is looking at smart ways to save a lot of tax to build a good balance between good health and well managed wealth.

There are whole array of financial instruments which are available today which can come with triple advantage to an individual

  1. Help him or her save a lot of tax
  2. Build a wealth for long term future
  3. Create a financial safety net for future emergencies.

When we compare all the options that are available in the market today insurance is something that aptly fits into the whole scheme of things.  Truly speaking there are three options which are available to any individual which if used correctly used can help him or her save a lot of tax.

Option 1: One of the common income tax section which is available to most individuals is Section 80C. Any premium paid towards a life insurance policy to a maximum of Rs.1.5 Lakh can be claimed for tax exemption under this section. This is available for both individuals and HUF assesses. This benefit can be accessed for any type of life insurance plan but the preferred one keeping financial well being in mind is a term policy. Try looking for online term plans because they are quite cheaper than their offline counterparts. An Important factor which one needs to keep in mind while claiming exemption under Section 80C is, for a policy to qualify for exemption the sum assured should be at least 5 times of the premium that you are paying. So if you are paying a premium is Rs.10000 then the minimum sum assured should be Rs.50000 for the policy to qualify for tax benefits.

Another important thing which one should keep in mind while opting for this particular option is that one should not be over skewed with the objective of tax saving. The person claiming tax exemption should first understand how much cover one should look into. It should always be based upon your goals and future liabilities. Going by the rule of financial planning one should always apply for a sum assured value which should be at least ten times of one’s monthly income.

Option 2: The second option which is available is individuals are benefits under Section 80D. Exemption under this section can accessed on the premium that you pay towards health insurance plans. Keeping in view rising cost of healthcare health insurance is now become a mandatory thing but you can avail tax also enjoy tax benefits on the premium that is paid towards these plans to a maximum Rs.25000. Other than this Rs.25000 an individual can also claim for extra exemption of to a maximum of Rs.30000 if one is also paying for health plan of his/her dependent parent. So you can actually a benefit of Rs.55000 to a maximum under this option.

Read Also : How Can One Maximise Tax Benefits On Health Insurance In Fy-2016-17?

Option 3: Last and the most unknown option not very known to most individuals is Section 80CCC.if you paying premium towards an Annuity plan where the objective of the investment is draw the money invested into in the form of pension in later years. In a case like this an individual can claim tax exemption without any limits on the money invested under this plan.

Though the options mentioned above can make a lot of difference towards saving a lot of tax but the challenge still lies in how one should make a balance between their twin objectives of savings tax and managing wealth in a proper way. People generally get over skewed towards either of the objective and end up missing the broader objective of having a safer financial future.

Read More

Here're Three Benefits of Holding an E-Insurance Policy Account.

You might at some point of time came across a term called Demat Accounts which is technically a hassle free way to keep securities or share document in which you have invested in a electronic format. So you actually don’t need to keep the physical copy of documents in files and folders and ensure security of same so that they don’t get eaten away by rats and rodents. Similar on those lines IRDA in the year 2013 came with the concept of E-Insurance Accounts. With its help you can get you insurance policy documents converted into electronic formats and the same is stored in a hassle free manner. 
In fact in a recent guideline issued by the Insurance regulator it has been made mandatory for the insurer to issue policies in electronic format for the ones which are specifically bought online.
So the first question is, how can you open an E-Insurance Account to enjoy the benefits?
E-Insurance account or eIA can be open any of the registered Insurance repositories appointed by the Insurance regulator. You can access your insurance portfolio with just one click through internet through an eIA. The various Insurance Repositories are:
•    M/s NSDL Database Management Limited
•    M/s Central Insurance Repository Limited
•    M/s SHCIL Projects Limited
•    M/s Karvy Insurance Repository Limited
•    M/s CAMS Repository Services Limited
You can follow few simple steps to open an E-Insurance Account:
First you need to fill the E-insurance account opening form available with the websites of any of this repositories
Furnish the required identity proof which can be either your PAN or UID
Final step is to provide the repository with a valid address proof , for which you can use any of the following 
•    Ration Card
•    Passport
•    Aadhar letter
•    Voter ID Card
•    Driving license
•    Bank Passbook (not more than 6 months old)
•    Verified copies of  Electricity bills (not more than 6 months old), Residence Telephone bills (not more than 6 months old) and  Registered Lease and License agreement / Agreement for sale.
•    Self-declaration by High Court and Supreme Court judges, giving the new address in respect of their own accounts.
•    Identity card/document with address, issued by
1)    Central/State Government and its Departments,
2)    Statutory/Regulatory Authorities,
3)    Public Sector Undertakings,
4)    Scheduled Commercial Banks,
5)    Public Financial Institutions,
6)    Colleges affiliated to universities; and
7)    Professional Bodies such as ICAI, ICWAI, Bar Council etc. to their Members
To check whether you account is opened or not just you need to log into with you user id and password set during the process of registration and it’s all done.

Though you find it is a great initiative from the Insurance regulator but is it worth opening one .Yes, definitely, see the benefits underlying 

1)    Safety: The first and primary benefit is that it offers a lot of safety. There is no more a risk associated with maintaining paper documents of your policy. Any form of insurance life, health or general can be electronically converted in an E-Insurance Account and the access to the same is also very easy, just one click and you get it.
2)    Convenience: The second most important benefit is that you can get everything in one place. Other most important benefit is once your details are updated with any Insurance repository, next time when you are buying another policy you don’t need to furnish your KYC documents again and again. Just give your insurer your E-Insurance account number and it’s done. Now it’s your insurers responsibility to issue you the new policy into the electronic account
3)    Environment Friendly: Other than the regular benefits the E-Insurance has an environment friendly attribute too. You actually don’t need to furnish your KYC document next time subject to condition there is any change
So definitely an E-Insurance account is a real boon for any policyholder. Going paperless always has its own benefits as it save a lot of time and money also. One point of service through E-Insurance accounts is also an helpful feature and you don’t need to go every insurer individually.

Read More