Importance of Medical Test in Term Insurance

by Vinaya HS on January 25, 2016

in Finance

The following post is a sponsored post.

Insurers put out advertisements that say “no medical tests needed” to entice prospective buyers. However, before you get taken in by these advertisements, just ask yourself if buying insurance without medical tests is really plausible and worth the risk?

The primary reason for undergoing medical tests is to check the health condition of the applicants. Depending on the results, insurers provide customized plans to buyers. If you avail term coverage without medical tests, there are many risks with negative repercussions in the future.

  • Higher Probability of Rejection: Just because you do not have to take medical tests when buying the policy, does not mean that existing conditions have been successfully hidden. You will need to declare your current health condition while filling the application form. Even if you are able to hide existing conditions, there may be consequences when making claims. Approximately between 2% and 3% of claims each year are rejected for this reason.

  • Higher Premium: Insurers base the premium on the perceived risks and undergoing a medical examination before availing online term insurance can help reduce the premium. If two applicants apply for the plan without a medical examination, the premium is the same. However, if with medical tests the result is favorable for one while unfavorable for the other, the healthy person is rewarded for good health with a lower amount. With medical fitness certificates, applicants can reduce the cost of availing term plans.

  • Lower Risk Coverage: Quite often, term insurance policies that require no medical tests are of a lower value. Even for applicants who are healthy and young, insurers will not provide insurance cover exceeding INR 5 lakhs. Therefore, if you want to procure higher insurance coverage, you will have to undergo the medical examination.

A full medical report includes blood pressure tests, echocardiogram, blood count, and fasting blood sugar. Some insurers may also require liver and kidney tests. These tests are aimed at determining current health status and presence of any conditions in the applicants. When the test reports are normal, insurers are able to lower the premium rates because the perceived risks are lower.

Moreover, if there are any existing conditions, these are known to the insurance company and accounted for with a higher premium charge. If the conditions are not known while availing the policy and the insured was to pass away due to the disease, there is a high possibility of the death benefits not being paid to the beneficiary. Therefore, individuals are strongly advised to not avoid or ignore medical tests before they avail term life insurance plans.

About HDFC Life

HDFC Life, one of India’s leading private life insurance companies promoted by HDFC Ltd. & Standard Life Ltd., offers a range of individual and group insurance solutions. HDFC Life’s product portfolio comprises solutions, which meet various customer needs such as Protection, Pension, Savings, Investment and Health.

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5 Myths Surrounding Term Insurance

by Vinaya HS on January 25, 2016

in Finance

The following post is a sponsored post.

Financial concepts pertaining investments can be quite confusing to the lay person, and as is the case with any complicated subject, a lot of misinformation and myths begin to take shape. This is true for term plans, as well, and it can be problematic, as many people simply avoid buying these types of policies.

The difference between what term plans are perceived to be and what they actually are is huge. Even though such policies are the purest kind of insurance, term plans are not popular due to a lack of understanding among potential buyers.

Here are 5 common myths about term life insurance plans. Hopefully, access to such information will help dispel any rumors and myths, allowing you to make better-informed decisions about your investments.

1. Single individuals do not need term plans

This is completely inaccurate and single individuals are also advised to avail term plans. These kinds of insurance policies offer protection against debt obligations like home, personal, or auto loans. You would not want your family members to be burdened by such outstanding debts in case of your sudden demise. Moreover, in single-income homes (with dependent parents); you must ensure financial security, in case of your death.

2. Coverage only for current income

In reality, you must acquire coverage for future income too, because coverage for present income will be inadequate to provide financial security to your family in the long term. The amount of coverage depends on your income and liabilities. Term insurance plans in India are based on human life value (HLV), which tries to financially estimate the value of your life. You must acquire coverage equivalent to your present income (inflation-adjusted) to ensure continued lifestyle for your survivors after meeting outstanding debt obligations.

3. Not available beyond age 50

One of the most common term insurance myths is that these policies cannot be purchased if you are over 50 years of age. In reality, these policies are available up to 65 years and some insurers offer term plans providing coverage until the age of 85 years. However, availing these insurance plans for more than 50 years is not recommended, as the premiums are steep.

4. Expensive insurance plans

Contrary to belief, term insurance is the most affordable way to acquire life cover. Term policies are pooled risks where the premiums are paid by pooling the perceived risks for several buyers of the insurance company.

5. Limited to death benefits

This will actually depend on the insurance plan and the add-on features you include within the plan. Certain riders can be included with the term plan for more benefits. Some of the possible riders could include accident cover for permanent or temporary disability, critical illness cover, and others.

When considering term plans, you need to remember that these are meant to provide financial security to your loved ones in case of your untimely demise. With an accurate investment objective, you will be able to make the right choice of availing a term policy that suits your needs.

About HDFC Life

HDFC Life, one of India’s leading private life insurance companies promoted by HDFC Ltd. & Standard Life Ltd., offers a range of individual and group insurance solutions. HDFC Life’s product portfolio comprises solutions, which meet various customer needs such as Protection, Pension, Savings, Investment and Health.

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Having driven your current car for a few years, you are now considering upgrading to a new vehicle. This gets you thinking about the value of your used car and the amount you can pay as the monthly installment towards the loan you might need for financing the new car. Take a step back as you may be moving too fast.

Are you thinking why? It may be a good option to continue driving your old car for a little longer. How? Well, you should use the car until you have been able to save the cash for making the purchase of your new car. Paying in cash for the purchase may be better because the lenders are able to make something almost out of nothing.

Keep your information confidential

When you do not apply for car loans, you will not be required to divulge confidential information about your credit rating and employment details. Moreover, you will not have to worry about qualifying for the amount needed to buy the new vehicle. Cash is king and you will not have to anxiously wait for receiving the approval from the lenders.

No monthly installments

Because you do not have to worry about making timely payments on your monthly installment, you can enjoy greater peace of mind. In addition, the money saved can be used for meeting some other expense or can go towards your savings for the future.

Eliminate additional worries

When you have taken car loans, you are constantly worrying about late payment charges, paying your bills, and other related expense issues. Many experts will tell you the best way to enjoy something nice is to pay cash when you have saved enough to make the full payment.

Hidden costs

Many lenders have multiple hidden costs that are not immediately visible. These costs become visible when you get down to some serious number crunching. Individuals are advised to calculate the money you will pay if you opt for the loan instead of buying it for cash. Compare this amount to the earnings you could have made if you had invested this money. You should not be surprised to realize that you will end up giving much more when you choose to finance the purchase of your new car.

Quicker processing

When you apply for car loans, you will have to undergo a long and tedious process. Firstly, borrowers must comply with a long documentation procedure. This is followed by a waiting period of 7 to 8 days to receive approval and then some more before the funds are actually disbursed. Users also need to pay processing and other fees to get approval for the loan. When you decide to buy the car by making full cash payment, you can get your car faster while enjoying cash discount offered by most of the reliable and reputed dealers.

No need to worry

Many borrowers will tell you that a few days after getting disbursement and taking delivery of the car, they received calls saying the interest rates have been hiked. This means they need to shell out more money or return the vehicle. This distress and larger burden can be easily eliminated when you pay cash.

There are some instances when you may need to acquire a loan to finance the new car. If you do not have the funds or are able to receive competitive interest rates, you may consider car loans. Otherwise getting loans on a depreciating asset does not make financial sense.

Know more about car loan and their interest rates at http://www.mahindrafinance.com/car-loans.aspx.

Disclaimer: The blogger is solely responsible for all the posts, comments and mentions posted within this website. Mahindra Finance does not endorse the accuracy or reliability of any information’s, content or advertisements contained on, distributed through, or linked, downloaded or accessed from any of the services contained on this website, nor the quality of any products, information’s or any other material displayed, purchased, or obtained by you as a result of an advertisement or any other information’s or offer in or in connection with the services herein.

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Protect your Child’s Future with Life Insurance

by Vinaya HS on January 20, 2016

in Finance

The following post is a sponsored post.

A child is the greatest gift Life can bestow us with. She is your very heart and soul. So it is natural that you would want to go to great lengths to protect your child’s future; to give her everything she could possibly want; to care for her dreams and aspirations when she grows up.

To do so, you need to be financially secure and ready. This is easily achievable with Life Insurance Savings Plan. After all, Life Insurance, especially one combined with a Savings Plan, can be a genuine lifesaver.

Consider future costs

Go back to your childhood—how cheap were things back then and how much they cost today. It would be the same in case of your child. What costs thousands today may cost lakhs tomorrow. Let’s put the costs of education into perspective. A study shows a dramatic spike of 433%in school fees over the span of last ten years.

It is therefore, important to invest wisely and beat the effects of inflation—make your money grow faster than the rise in prices! The convenient e-Assured Savings Plan that Life Insurance companies like Kotak offer can help you on this account.

If you plan to invest today, you can be ready for your child’s university fees in the next ten years and thus have her education plan in place.

How will it help?

The equation is simple. Life insurance savings plan has two components – Insurance and savings. A life insurance policy helps protect your family in case something unfortunate happens to you; while the latter protects your money from inflation and lets it grow.

Benefits of the plan are:

a) Tax Benefits: Premiums paid in this plan will be eligible for tax deduction under Section 80 C, while any income from the plan will be tax-free under Section 10(10D).

b) Stay Longer, Grow Richer: If your premium payment commitment with the Insurance Company, is longer, you accrue higher benefits. This leads to a larger Guaranteed Maturity Benefit sum.

c) Enhanced protection with Riders: Boost your cover by adding a Term Insurance rider. Additionally, there is also an Accidental Death Benefit Rider which can be availed at affordable rates.

d) Guaranteed Returns: On survival till the end of the policy term, a Guaranteed Maturity Benefit will be paid.

e) Convenience in Premium Payment: You can choose to pay the premiums yearly, half-yearly, quarterly or monthly. You can change the mode of the payment at the time of the policy anniversary.

f) Convenience of buying online through the website.

A wise mom once said “Your child will keep building castles in the air; you better start buying bricks for the castle today.” Fulfil your child’s dream with online Savings Plan which not only provides protection but also boosts your savings through Guaranteed Returns. Stronger the financial security, bigger will be her dream.

About Kotak Life Insurance:

Kotak Mahindra Old Mutual Life Insurance Limited is a private Life Insurance company which is jointly owned by Kotak Mahindra group of India and Old Mutual of South Africa.

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Debit Cards vs. Credit Cards

by Vinaya HS on January 20, 2016

in Finance

The following post is a sponsored post.

Cards associated with a bank account are known as debit cards. When you swipe this card, money is debited from your bank account. This means you will only be able to spend the amount that is available in your account.

On the other hand, credit products are offered by financial institutions that provide revolving credit lines to customers. Transactions executed through this medium include the card issuer, along with the acquirer or cardholder and the merchant.

Differences between Credit and Debit Products

  • Working: When a customer uses a credit card, the card issuer puts funds towards the transaction. The amount that finances a debit or ATM card transaction is debited from the user’s associated bank account.

  • Credit Free Period: When you shop from debit card, money is immediately debited from customer account whereas when you shop through credit card, you get 45-60 days (based the purchase date, in relation to the billing cycle) to make payment for your purchases.

  • Billing: With a debit card, there is no monthly bill provided by the bank, as the cardholder’s transactions are financed with his own savings. With credit however, monthly bills are issued by the issuer and the users need to pay the outstanding amount before the due date.

  • Application procedure: Applying for credit cards is slightly more difficult than applying for debit cards. Issuance depends on your credit score, income, and other related details. Every bank account holder can easily procure debit cards associated with their account.

  • Spending limit: The maximum limit on credit cards is set by the issuer and can change as the credit score of the cardholder improves. The maximum amount that can be spent on a debit card is subject to the available funds in the associated bank account. Users can also set the maximum daily spending on their cards, which can be modified in case the need arises.

  • Interest: Unpaid amounts on credit card monthly billswill invite interest charges at high rates. No such interest needs to be paid on debit card usage.

Pros and cons

  • Majority of retailers across the country accept both kinds of cards and often charge the same price for the products and services. However, merchants need to pay interchange fees while processing RUPAY, Master or Visa cards, and similar schemes. Fees on debit cards are significantly lower than those on credit cards.

  • In case of theft of credit cards, there is a high risk of fraudulent activities. The risk can be mitigated by reporting loss of card. Debit product fraud also presents a high risk, but the loss will be limited to the default limits or the limit set by the users.

  • When you overuse your debit card, the bank will offer protection against overdraft. In addition, transactions exceeding the available funds are often rejected (although in certain instances, the card issuer allows overdraft facilities). Users are advised to check these facilities with their service providers. Failure to limit spending on credit cards can cause severe financial distress. Many users pay the minimum due amount on their cards, which can escalate to a debt trap if not checked in time, owing to the accumulation of interest and finance charges.

Payment and offers

When you apply for a credit card online, you should not be surprised to find institutions trying to entice you to both buy and keep using their cards. Issuers offer airline miles, redeemable reward points, discounts at partner retail shops, and cash back on spending. Debit card users also enjoy such promotional offers and discounts for card usage.

Credit card payments can be made using cash, cheque, or through online banking. Users also need to pay annual fees for continued usage of the card. Debit products do not have such payment needs and offer lower rewards on the funds spent through these cards.

As a user, both cards offer various benefits, but you need to be especially responsible when it comes to using credit cards, as failure to pay bills in time and using your card to make purchases that you cannot pay back in time will simply result in an escalation of your debt.

Author Bio:

Rachita Kotian is an independent blogger and writing has been her passion for a long time. A literature major, she loves exploring the world of health, lifestyle, travel and finance. When she’s not writing, she’s most likely listening to music, cooking, surfing the web, or catching up on the latest flick.

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6 Common Health Insurance Mistakes You Should Avoid

by Vinaya HS on January 15, 2016

in Finance

The following post is a sponsored post.

While availing health coverage you need to evaluate your specific needs to really enjoy the benefits of insurance. In addition, you must assess the risk you can afford to assume against your financial situation, to ensure that you will neither be over-insured nor under-insured.

Health plans play an important role in preventing financial disasters due to high cost of medical procedures. Having to make payments, even for a short hospitalization, can be very expensive resulting in severe financial distress. Most health plans provide coverage for you and your family in case of hospitalization due to illness or accident.

While purchasing a mediclaim policy, you need to evaluate your needs and risks to make the right choice. Research and compare policies offered by different insurers, but don’t just look for the cheapest option. Understand the features, coverage, and premiums on various products before making your decision. Working with a reliable and reputed insurance company is very important to prevent problems in the future.

Users must avoid some of the common mistakes that policyholders make when choosing a health plan. These include the following:

  1. Hiding health-related information: Most people believe that the insurer will not discover any falsified information provided at the time of purchasing the policy. Individuals often hide or provide misinformation about pre-existing diseases to avoid paying higher premiums. However, even if the information remains undiscovered by the insurer, there is a possibility of doctors discovering the existence of the condition before the start of the health coverage. In this case, you may have to pay a significantly higher premium or may even lose the coverage.
  2. Failing to check the hospital network: Cashless hospitalization is an important feature of health plans and is also very convenient. With this feature you do not have to pay hospital bills at the time of hospitalization, nor do you have to file claims. However, this service is only available if the hospital is on the insurer’s network. Check the list of network hospitals with your insurance provider in advance. It is advisable to compare the hospital networks of the various insurers before buying a policy, as hospitals on the list should be conveniently located.
  3. Paying higher premium to avoid co-pay: Co-payment is the amount the policyholder will need to pay for the hospitalization before the insurance benefits become available. Some plans have flat co-payments, while others include co-pay after a certain age or they may have other terms and conditions. One of the commonest health insurance mistakes made by users is to pay a higher premium amount to avoid such co-payments. It makes more sense to evaluate the requirement of the additional premium for co-pay when choosing the appropriate health policy.
  4. Buying more coverage than needed: Another mistake commonly made is to buy more than required coverage or to choose unnecessary riders. While it is important that you purchase adequate coverage for yourself and your family, it makes no sense to buy more coverage than is necessary.
  5. Higher deductible insurance plan: High deductible insurance plans require policyholders to pay more before the benefits become available. Lower premium on these plans makes them attractive to many, but you should be sure that you will be able to meet the higher deductible amount in case the need arises. If you fail to pay your share of the expenses you will not be able to claim any of the benefits of the policy.
  6. Failure to review current health policies: Buyers must also review their current health plans before opting for additional coverage. Thoroughly evaluate the existing policy, your health and financial status to determine your needs for a new plan. Failing to do this can result in over-insurance or under-insurance, both of which can prove more expensive in the long term.

Choosing the right policy, based on all of these considerations may be time consuming and tedious, but it is absolutely necessary. Health insurance can be a life-saver, but to truly enjoy all of its benefits, you need to choose your policy wisely.

About HDFC Health:

HDFC Health is an initiative by HDFC Life, a life insurance company in India to help increase awareness, spread knowledge and enshroud myths surrounding the health insurance sector in India. As a wholly owned subsidiary of HDFC Life, HDFC Health offers health insurance policies in India that cover individual, family floater, critical illness and cancer care insurance plans.

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Health Insurance Riders

by Vinaya HS on January 15, 2016

in Finance

The following post is a sponsored post.

Health plans are designed to satisfy the specific needs of the policyholders. At the same time, policies are meant to protect the interests of the insurance service providers.

Unfortunately, there is great variation among all of us in terms of our risks and requirements, which means that standard policies may not work for all. Most insurance plans have specific features, inclusions, benefits, exclusions, and covers. As these may not be suitable for all policyholders, insurance companies offer different kinds of riders within the policies to allow policyholders to customize plans as per their needs.

Purpose of Riders

Health insurance riders were created to enable individuals with specific medical conditions to enjoy insurance protection, as typical plans may not offer such coverage to them. The riders ensure that the premium amount remains affordable, while at the same time extending protection to individuals who would otherwise be excluded or not fully covered. The riders are governed by certain regulations and are applicable to all insurance providers in the country.

Different Types of Riders

The various types of insurance riders are amendments or attachments to the standard health plans, meant to provide additional coverage to policyholders. Some of the common riders include:

  • Indemnity rider: The commonest rider included in health insurance policies is the coverage for pre-existing conditions. With this rider, the policyholder can even enjoy coverage for the treatment of conditions that exist at the time of buying the policy. Without these riders, such pre-existing conditions are usually not covered under standard health plans.

  • Major surgery rider: Some policyholders have specific medical requirements because of health conditions that can cause complications that require expensive medical procedures. Such procedures may not be covered under standard coverage, which is why insurance companies offer several riders to extend coverage. This helps enhance the limits and reduces the deductibles for certain major surgeries, organ transplants, and other such procedures.

  • Indemnity rider: This rider provides additional benefits to the policyholder, in case of an accident that result in the loss of life or loss of a limb. This rider is provided to offer recuperation resources and long-term care in case the insured is unable to continue his or her employment due.


Cost of Riders

Insurance riders are obviously not available for free and can be rather expensive. Insurance companies try to spread the cost of coverage for such risks and the potential risk of such conditions across as wide a segment as is possible, but it becomes necessary to raise premiums for such impairment riders.

As a policyholder it is important that you analyze your risks, compare health insurance plans and also consult your health care provider before opting for a policy. Only choose riders that will benefit you, or you will end up spending more for cover that you do not really need.

About HDFC Health:

HDFC Health is an initiative by HDFC Life, a life insurance company in India to help increase awareness, spread knowledge and enshroud myths surrounding the health insurance sector in India. As a wholly owned subsidiary of HDFC Life, HDFC Health offers health insurance policies in India that cover individual, family floater, critical illness and cancer care insurance plans.

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7 Personal Financial Tips For Your 30s

by Vinaya HS on January 5, 2016

in Finance

The following post is a sponsored post.

Once you enter your 30s your career and life starts to stabilize, but your responsibilities grow tremendously. Career growth implies increased earning and also greater responsibility. At the same time, there is a good chance that you also have a family of your own and children who are dependent on you.

Your changed circumstances and responsibilities will now require a new set of financial goals. Long term planning becomes critical at this stage and you should give thought to retirement plans like the national pension scheme. Every individual has different objectives and these tips can help you plan for different situations.

1. Emergency Funds

If you do not have an emergency fund yet, it would be wise for you to start immediately. If you lose your job due to an injury or layoff, you need to have sufficient reserves to at least manage your living expenses for 6 months. This gives you the peace of mind that you will be able to meet your responsibilities, while searching for another job.

2. Paying Non-Mortgage Debt

Keeping your non-mortgage debt like credit card bills to the minimum is crucial. Reduce your expenses, try to earn through other sources, and increase your savings by investing in the best pension plans in India.

3. Increase retirement savings

If you don’t have a retirement account, it may be a good idea to check the national pension scheme. While you focus on reducing your debt obligations, it is recommended that you save at least 15% of your income by investing in some of the best pension plans in India. Experts recommend increasing this to 20%, to ensure that you remain financially independent during your golden years. To get more information you should ask your financial adviser for new pension scheme details.

4. Plan Your Estate

As unpleasant as the thought may be, we are all mortal and you need to plan for your demise. At that time your estate has to be distributed among the beneficiaries. To avoid complications and disputes among your beneficiaries it is necessary for you to plan your estate through trusts or wills. A will can also help with medical decisions that need to be made, when you are not in a position to give or withhold consent.

5. Include Term Plans

During your 30s, you need to build the robust foundation that ensures the financial security of your family. Have your thought about what would happen to them if you were to suffer an accident or illness that results in disability or death? Purchasing a term insurance plan, along with the national pension scheme is advisable. These plans are affordable when compared to traditional policies and you do not have to avoid insurance coverage because of the higher costs.

6. Do Not Cash Out

Many people who move their jobs cash out of the best pension plans in India. This is not financially prudent. By doing so, you will lose on building a significant corpus that can secure financial independence when you retire.

7. Hire an Expert

If you find financial planning complex or do not understand what is national pension scheme, consider hiring a financial expert. The skills of an expert will come in handy not just with retirement and pension plans, but also with tax savings and other financial planning aspects. You will also get information on any new pension scheme details as soon as such data is available.

Following these simple tips should put you in a better position and will help you to secure future that is financially stable. This will not just help you, when you eventually retire, but it will also help your family. Calculate & estimate your tax saving options with NPS Calculator.

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Cancer doesn’t just affect you physically. A diagnosis of cancer can be emotionally devastating and to add to those conflicting feelings, you have the added stress of having to worry about managing your finances so that you can seek the necessary treatment and care. Unfortunately, for many people, simply having a health insurance plan doesn’t guarantee financial security or coverage when dealing with cancer. A high percentage of uncovered expenses arise from the cost of prescription drugs. Other expenditures that that arise with cancer and are often not covered under regular health policies include special diets, medical equipment, non-prescription medications, and travel. Opting for special insurance cover that addresses all of these needs is now an option.

Cancer insurance is a special health insurance plan designed to cover risks that are associated with the condition. The plan is beneficial in mitigating the expenses incurred for treatment by offering financial support to the policyholders.

Major illnesses like cancer are not covered by most traditional health plans. While no one wants to consider the possibility of developing cancer, if simply avoiding such unpleasant considerations worked as a preventive strategy there would be far less people afflicted with cancer. Cancer is becoming increasingly common among Indians and isn’t solely influenced by genetic and hereditary factors or lifestyle. Depending on the stage of cancer and the type of cancer, treatment can be highly effective, but we are forced to confront our mortality. Cancer therefore doesn’t just take a physical toll, but it also affects the mental well-being of the patient and loved ones. In such situations, learning that your insurance coverage doesn’t cover cancer or doesn’t cover certain areas of the treatment can be enough to send you over the edge. Cancer insurance plans could quite literally be a life saver in some situations and should be purchased not just by people at high risk of cancer.

Individuals can financially prepare themselves with cancer care insurance plans that offer comprehensive coverage against the disease. When you are assured of being able to meet the costs of treating cancer, you have time to come to terms with your condition and how it will affect you and your family, without having to worry about how you will pay your medical bills.

Advantages of cancer care insurance plans

  • Most of these insurance policies provide a lump sum payment to the policyholder when diagnosed with cancer.

  • The premium is waived under certain conditions, such as if it is early stage cancer.

  • In case there are no claims during the year, the sum assured increases by a pre-specified percent.

  • Monthly income for a specified number of years under certain conditions, such as in the event of diagnosis of major cancers.

  • Policyholders can enjoy discounts on the premium amount for policies that are over a certain amount.

  • Cancer care insurance plans provide tax benefits under section 80 D of the Income Tax Act 1961.

Exclusions under cancer care policies

Before availing this kind of insurance coverage it is important that you read the fine print. There are various exclusions whereby policyholders are not eligible for benefits, such as if the cancer develops as a result of:

  • AIDS or sexually transmitted diseases

  • Pre-existing conditions

  • Congenital diseases

Most of us tend to shy away from plans that force us to confront and accept our mortality, but planning for such unfortunate circumstances better helps us overcome or cope with them if and when such situations arise. The cost of cancer treatment and outpatient care is extremely high and can leave most individuals and families saddled with a huge burden of debt. Cancer care insurance plans can help ensure that you are free of any financial worry and can have some peace of mind when you need it most.

About HDFC Health:

HDFC Health is an initiative by HDFC Life, a life insurance company in India to help increase awareness, spread knowledge and enshroud myths surrounding the health insurance sector in India. As a wholly owned subsidiary of HDFC Life, HDFC Health offers health insurance policies in India that cover individual, family floater, critical illness and cancer care insurance plans.

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Banking Made Easy with KayPay App

by Vinaya HS on December 17, 2015

in Finance

The following post is a sponsored post.

KayPay is a unique money transfer mechanism introduced by Kotak Mahindra Bank. It is a quick, simple and convenient way to send money to your friends even when you do not know their account numbers. The app allows users to remit money from any bank by using their Google+ ID, Facebook ID, mobile number of recipients or email ID.

With this amazing application, you do not need to add multiple beneficiaries to send money. Managing multiple beneficiaries especially when you may need to transfer funds only once is tough and cumbersome. Now simply connect contact lists and friends on Google+ and Facebook and transfer funds the KayPay way.

Steps to start using the app:

  • Add bank account – Users can add the bank account from where the money needs to be transferred. Registering the account is quick and simple; click on the sign-up button and provide details like name, email id, mobile number, and password. After verifying the mobile number and email id, the bank account is added. Kotak Bank users will have to provide their CRN numbers at the time of registration on KayPay. Other users are required to provide their MMID numbers for registering to using this app.

  • Connect with friends on Google+ and Facebook – After finishing the registration procedure, you can add people from your friends list on Google+ and Facebook. In the next step, select the bank account from where you want to transfer the money. If you have registered multiple accounts, the app chooses the default account for initiating the transfer. Once you enter the amount, the system will ask you for the OTP (one-time password), which is sent to your mobile number. To complete the Facebook fund transfer, you need to confirm the transaction.

  • Fund receipt – Registered KayPay users will receive the transferred amount immediately. For unregistered recipients, the system sends a notification link via SMS or Email asking for completing the registration procedure. The recipient after registering the bank account where she/he wants to receive the money will have the same credited.

  • Confirmation – The senders, as well as the receivers, are sent confirmation of executed transactions on their registered mobile numbers. Additionally, confirmation is sent on their Facebook accounts.

Benefits of KayPay

  • Account holders of Kotak Bank along with 28 other banks can use this money transfer service providing versatility to users. To know a list of banks associated, click here.

  • Fund transfer made easy and convenient even when you do not know the beneficiary bank details, such as account number and IFSC code.

  • Leverage the power of social media to transfer funds to your friends in a safe and secure environment.

  • Quick and fast transfers completed within 24 hours.

  • First app offering “bank agnostic” instant fund transfer platform offering convenience banking to users.

Security of the transaction

  • Authorization of transfer through OTP generation, which is generated by the bank. Being outside of the app, provides an additional security level for the transaction.

  • All authentications and transactions are done on the safe and secure servers of Kotak Bank.

  • The app does not share any bank details and/or transaction details on the social media networks.

  • No information is posted on Google+ or Facebook account without user permission.

Author Bio: Rachita Kotian is an independent blogger and writing has been her passion for a long time. A literature major, she loves exploring the world of health, lifestyle, travel and finance. When she’s not writing, she’s most likely listening to music, cooking, surfing the web, or catching up on the latest flick.

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NRIs Can Now Invest in National Pension System (NPS)

by Vinaya HS on December 17, 2015

in Finance

The following post is a sponsored post.

To provide income security post retirement for non-resident Indians (NRI), the Reserve Bank of India has allowed them to invest in the new pension scheme. These investments are to be made through regular banking channels, as per the Pension Fund Regulatory and Development Authority (PFRDA) guidelines.

Understand the New Pension Scheme

The national pension scheme (NPS) is a pension plan where investors contribute until the age of 60. Tier I account holders need to invest a minimum amount of INR 6,000 annually. Investments are done in market-linked products and investors can choose from 3 funds that are currently offered.

When the investor reaches 60 years, he can withdraw up to 60% of the funds. The remaining amount is used to purchase an annuity product. Earlier exits require investors to use 80% of the funds to acquire annuity products. After 10 years, investors can withdraw 25% for specific purposes. Check an online tax calculator to learn more.

Investment Procedure

NRIs can invest in the national pension scheme through rupee denominated non-resident external accounts (NRE) or non-resident ordinary rupee accounts. Most Indian banks are designated points in presence (PoP) and NRIs can open the account with their banks. Contributions can also be made in foreign currencies through banking channels in the resident countries. As per current norms, there are no restrictions on the repatriation of the accumulated savings or the annuities.

An application form must be submitted with passport documentation and an Indian postal address. When the account is opened, the holders receive permanent retirement account numbers giving complete portability of the NPS account.

Does Investment Make Sense?

The NPS is a low-cost investment avenue making it an attractive option. However, most financial advisers recommend limited investment in the scheme to enjoy the NPS tax benefit. This scheme adheres to the exempt-taxable doctrine. Contributions are tax deductible up to INR 1,50,000, with an additional deduction of INR 50,000 also available. However, the 60% amount retained on maturity and the annuities received are both taxable.

The NPS tax benefit for NRIs is the same as for resident Indians. Therefore, investing in this scheme makes sense only if they plan to reside in India post-retirement.

Currently, the tax exemptions provided are such that only NRIs planning to return to the country are targeted for investing in the scheme. NRIs without a strong social security net can take advantage of these exemptions. Moreover, NRIs sending high remittances are targeted to increase foreign currency being brought into the country.

The future
In order to make the NPS more attractive, the PFRDA plans to pitch favorable tax treatment for investors who invest through NRE accounts. Provision of certain benefits like tax exemptions on the NPS corpus are expected to encourage NRIs to increase their investments in the scheme.

For understanding more about the NPS and tax benefits, check the online tax calculators provided by leading banks like Kotak Mahindra.

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Lesser Known Facts about a Mediclaim Policy

by Vinaya HS on December 17, 2015

in Finance

The following post is a sponsored post.

Mediclaim policy is the safest and best to protect you and your family with financial security against any medical emergencies. But it is very important that you buy your medical insurance only after thorough research and carefully reading about the terms and condition of the policy.

Mediclaim policy is especially very important for you and your family if you are the only breadwinner of the family. A sudden medical expense can often cause financial instability.

Most of the working population in India has realized that it is crucial to have medical insurance. But there are many facts that insurer’s are unaware of. Here are some of the most important clauses, terms and conditions that you must know about:

  • Permission for Changing Hospitals in Between Treatment: There are only a few insurance companies that pay the expenses even if you decide to shift to another hospital for better treatment or any other reason. So make sure that you read the terms and conditions regarding change of hospitals as many mediclaim policy companies do not reimburse the expenses incurred at the second hospital and so do not let you change hospitals as well.

  • Hospital Room Rent Sub-limit Dictated by Mediclaim Insurance Policy, India: Be aware of the room sublimit terms and conditions of your policy. Most mediclaim policies fix a percentage of the total sum assured as the sublimit of the room you stay in the hospital. It may go up to even Rs. 5000. If your house rent is more than that, the promised amount for other treatments is reduced proportionately. So make sure you read and understand the rent limit clause well for all the policies you are considering so that you can buy the best mediclaim policy in India.

  • Terms and Conditions For Co-Payment: Co- payment refers to a small percentage of medical expenses that has to be borne by insurer. Mostly, the percentage for co-payment is between 10% to 20%. The situations in which the policy holder may have to co-pay are:

  1. If you or any of your family members are seeking treatment in a non-network hospital.
  2. It is compulsory if the patient is 65 years or older.

A mediclaim policy is definitely a boon for the insurer as long as he/she reads through all the documents carefully and understands the terms and conditions well. It is a great way of ensuring good treatment for you and your family without worrying about the finances.

About HDFC Health:

HDFC Health is an initiative by HDFC Life, a life insurance company in India to help increase awareness, spread knowledge and enshroud myths surrounding the health insurance sector in India. As a wholly owned subsidiary of HDFC Life, HDFC Health offers health insurance policies in India that cover individual, family floater, critical illness and cancer care insurance plans.

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The following post is a sponsored post.

Finalizing an insurance plan for your health is an important decision. This task can be simplified by learning more about the meaning of technical words and phrases that are used in connection with health coverage.

Claim
The process of seeking reimbursement of health expenses from the insurer according to the terms and conditions of the insurance contract.

Cashless Claims
Insurance companies have tie-ups and arrangements with hospitals where the policyholder need not pay cash for the treatment. Payment for treatment, subject to the coverage limit, is settled between the insurer and the hospital.

Co-Payment
Co-payment or deductible refer to the policyholder’s share of the cost of treatment. This is normally determined as a percentage of the total claim amount.

Coverage Amount
Also known as the sum insured and sum assured, this is the maximum amount up to which the policyholder can claim reimbursement of medical expenses from the insurance company.

Critical Illness Cover
This policy offers a lump sum payment to the holder if he or she is diagnosed with pre-determined terminal diseases.

Cumulative Bonus
This is similar to the no claim bonus available to car insurance policyholders. Instead of a reduction in the premium, the policyholder enjoys an increase in sum insured without having to pay more. The bonus is restricted to a fixed percentage of the sum insured.

Disability Cover
This insurance policy provides assured monthly income to the policyholder if he or she suffers from partial or total disability caused by an illness or injury.

Permanent Exclusions
Certain diseases, conditions, and procedures are permanently excluded from insurance coverage. HIV/AIDS and cosmetic surgeries are never covered under health insurance.

Temporary Exclusions
Insurers exclude coverage for certain conditions and diseases for a temporary period after the policy comes into force. The policyholder can seek reimbursement of expenses incurred on such conditions only after the exclusion period ends.

Family Floater Policy
Instead of purchasing individual health insurance policies for each family member, one can opt for comprehensive policy for a single amount. A family health plan for Rs. 5 lakhs will allow any or all the family members to seek reimbursement of medical expenses provided the total claim does exceed the sum insured. This option is popular since it is rare for all members of the family to fall ill together in a single year.

Group Health Insurance
Under this policy, the individual enjoys coverage by virtue of being a member of a group. E.g. an employee of a firm.

IRDA
The Insurance Regulatory and Development Authority is the statutory body governing and regulating the insurance industry in India.

Overseas Medical Policy
Similar to a standard plan, the only distinction in case of the OMP is that it provides coverage in a foreign country. This policy is ideal for those traveling abroad for work, tourism, or educational activities.

Personal Accident Insurance
These policies offer a fixed benefit in the event of death or disability arising out of an accident. The sum assured is paid irrespective of the actual expenses involved in the treatment.

Portability
This refers to switching of the insurance policy from one service provider to another. If all conditions and formalities are completed, then accrued benefits under the existing policy will be carried forward to the new policy.

Pre-Existing Condition
This refers to diseases, ailments, and conditions that the individual is already suffering at the time of purchase of the insurance policy.

Renewal
Health insurance policies are normally valid for a period of 12 months. At the end of the validity period, the policyholder should renew the plan by paying the premium. Non-payment of renewal premium for 30 days of lapse of the policy will result in a break in insurance, which can affect portability.

Sub Limits
Apart from the sum assured, the policy may specify limits for certain costs like hospital room rent and ambulance charges. Reimbursement claim for such expenses cannot exceed these sub limits.

If you want to secure your family’s health through an effective insurance policy, then it imperative that you are aware of the meaning of important terms and phrases used by health insurance firms. Ignoring this may result in a situation where you fail to enjoy the benefits of the plan despite having paid the premium in full.

About HDFC Health:

HDFC Health is an initiative by HDFC Life, a life insurance company in India to help increase awareness, spread knowledge and enshroud myths surrounding the health insurance sector in India. As a wholly owned subsidiary of HDFC Life, HDFC Health offers health insurance policies in India that cover individual, family floater, critical illness and cancer care insurance plans

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How To Apply For A Used Car Loan!

by Vinaya HS on December 17, 2015

in Finance

The following post is a sponsored post.

If you have just received your driving license, considering a used car to hone your skills is a good choice. This will not only help you improve your driving skills but is also a more affordable option when considering the purchase of your first car.

Unlike the past, purchasing a second-hand vehicle is not difficult even if you do not have the full amount to make the payment. Most financial institutions and banks provide loans for the purchase of used cars. However, before you apply for these kinds of loans, you need to understand the terms and conditions and the precautions to be taken while acquiring the debt.

Definition of used car loans
These loan facilities are available through authorized lenders to enable users to buy used cars. Generally, used car loans are sanctioned up to 75% of the value of the vehicle. Some institutions may also provide up to 90% of the amount as loans.

Procuring the loan
While contemplating the acquisition of second-hand cars, it is important to consider some important factors. You must consider the basic needs and types of loans available. The following steps must be followed to procure the loan facility to buy the used car.

  • Choosing the make of the vehicle: Lenders do not finance all kinds of cars and choosing vehicles that are eligible for funding is important. In addition to the type, institutions will finance vehicles that are of a certain age only. Discontinued models or cars that are older than 5 years cannot be funded through institutions and choosing a car that is newer is advisable.

  • Calculate the amount of the vehicle: Once you have identified the car, you will have to calculate the total amount you will have to incur towards the purchase. You must make the necessary arrangement for the lump sum as an upfront advance prior to the purchase. This will also be useful in determining the amount you will need to take on as used car loans.

  • Determine your requirement: After calculating the loan amount, you will have to determine the tenure and the monthly installment you will be able to afford. Considering your current and future expenses before applying for the loan is crucial to avoid financial difficulties at a later stage.

  • Search for the available options: There are several banks and non-banking financial institutions that provide loans for second-hand cars. Take some time in researching the various options and procure quotes from at least three lenders. This will help you make an intelligent comparison and find the most competitive loan for purchasing the used car.

  • Submit documents post verification: The lenders require borrowers to submit proofs of their incomes and attested and authorized copies of the car purchase. In addition, the institutions require other documents and getting a checklist of the documentation for faster procession of the loan. Once the documents are received and processed, the approvals take between 7 and 8 days. The lender will then disburse the money directly in favor of the vendor.

Know more about used car loans and their interest rates at http://www.mahindrafinance.com/used-vehicle-loans.aspx.

Disclaimer: The blogger is solely responsible for all the posts, comments and mentions posted within this website. Mahindra Finance does not endorse the accuracy or reliability of any information’s, content or advertisements contained on, distributed through, or linked, downloaded or accessed from any of the services contained on this website, nor the quality of any products, information’s or any other material displayed, purchased, or obtained by you as a result of an advertisement or any other information’s or offer in or in connection with the services herein.

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Ab Kona Kona Kotak

by Vinaya HS on August 31, 2015

in Finance

The following post is a sponsored post.

On April 1st 2015, ING Vysya Bank merged with Kotak Mahindra Bank to be now known as Kotak Mahindra Bank. This merger will bring a lot of benefits to the customers of both the financial institutions by providing them with more options for convenience banking.

ING Vysya is a firmly established institution functioning in the Indian banking sector for over 80 years now. Kotak Mahindra Bank, on the other hand, has been offering financial services for over 3 decades serving all the needs of the customers under one umbrella. The merger of such two financial institutions is a remarkable moment in the history of the Indian financial sector. This merging of the complementary businesses will serve the customers in a better way by providing wider ATM network coverage.

Better ATM Networks

The merger will give Kotak Mahindra Bank a larger national footprint in the financial sector. The merger is aimed at providing seamless banking systems to its customers by providing them with better ATM networks and other facilities.

ING Vysya customers can now enjoy an interest of 6% per annum on a balance of over one lakh in savings accounts. Other than that, a wider ATM network lets the customers access their bank account funds conveniently. One can now perform the following activities at any Kotak Mahindra ATM:

  • Withdraw cash
  • Account balance enquiry and other account information
  • Initiate cheque book requests
  • Cheque status enquiry
  • Statements requests
  • 24-hour access to funds transfer between your own Kotak accounts
  • Facility to change ATM pin

Change in Management Does not Mean Change in ANY Existing Services

Customers can be rest assured that there will be no change in their account numbers or the services that they have opted for. The customers can still use their existing internet banking services and can continue with the same cheque books and passbooks. The same will be the case for any fee structure/charges and features of any service you may have opted for.

If the customers still have any queries regarding any services offered by the bank, they can visit www.kotak.com or nearest branch.

Kotak Mahindra Bank is constantly working hard to avoid or minimize any kind of glitches that can be caused in this transition period. As for customer satisfaction, the bank ensures that the merging of these two dynamic financial institutions puts up a new and better path to success and growth. Kotak Bank aims to attain new levels of excellence with this merger.

Author Bio:

Rachita Kotian is an independent blogger and writing has been her passion for a long time. A literature major, she loves exploring the world of health, lifestyle, travel and finance. When she’s not writing, she’s most likely listening to music, cooking, surfing the web, or catching up on the latest flick.

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Given life’s vagaries each of us would like to save and invest our hard-earned money to tide us through the rainy days, and the occasional black swan, when they come. Where we err though is to jump headlong into “investments” just because we need to be seen with the “crowd.” Someone in the next cubicle made a neat killing on that small-cap stock…so investing in small-cap stocks is the way to go. Let me invest all of my money there. Wrong! Did you stop for a minute and think about any of the following: “Do I have a BIG fat emergency fund in place?”, “Have I planned for those annual expenses (they are investments, vehicle insurance, gym fees, et al.) that seem to popup each month?”, “Have I planned for all those expenditures that I know will happen within the next 6-months?”.

Investing before saving is akin to building the first-floor of a house before the foundation and ground-floor. Looks nifty but is a house of cards eagerly waiting to collapse at the first wind. You should never plan your finances to be this house of cards. Remember this mantra: Savings are for short-term goals. Investments are for medium and long-term goals. Savings always come before investments. I like to think of anything less than a year away to be short-term, between a year to three years away to be medium-term, and more than three years away to be long-term. Get this simple formula right and you’re well set for a bright and prosperous financial future.

With a myriad of savings and investments options available at your fingertips today how do you decide where to save and where to invest. Short-term goals require instant access to your money and full safety of principal for which bank savings accounts and liquid mutual funds are perfect options. Medium-term goals require safety of principal and a small amount of growth for which money-back life insurance policies, recurring deposits, fixed deposits, and debt mutual funds are typical choices and some of these choices such as insurance are tax effective too. Long-term goals require a large amount of growth for which, endowment and unit-linked (equity-oriented) life insurance policies, and equity mutual funds are great choices.

Insurance deserves a special mention. To those of us who are too busy to manage our finances insurance in various forms serves as the perfect vehicle for meeting our savings obligations and investments goals. From money-back insurance policies that return cash back to us at regular intervals, to traditional endowment insurance policies that accumulate money over the long-term, to unit-linked insurance policies that have a growth component (and not to forget, should something happen to you, all life insurance policies come with an automatic payout benefit to your near and dear) insurance can help meet your savings and investment targets. I view health insurance as an investment too – just think of it as a future investment into your own health and into your family’s health.

Once you’re on this path to financial prosperity, the very next question that comes to mind is “Am I saving and investing enough?” Really a tricky question to answer because as John C. Bogle would perhaps ask you: “How much do you think is enough for you?” My advice to everyone who asks me this question: Clearly write down your short, medium, and long-term goals. Then write down how much money you specifically need to set aside each month for each of these goals. Got any spare cash left? Save it. Or invest it. Or splurge it. The choice is fully yours to make. And that to me is enough!

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The following post is a sponsored post.

You might be faced with a plethora of questions when choosing a term insurance plan, right from the type of insurance to the doubts regarding the returns. So, here’s a list of 10 questions you should ask before buying term life insurance to end up choosing the best term insurance policy in India.

1. Does the premium amount change over time?

No, unless specified in any of the clauses. Also, if the insurer develops any disability or habit that is life threatening, the company may decide to change the premium amount.

2. Are there any changes to the insurance plan if the policy holder gets into the habit of smoking/drinking after buying it?

Since the habit of smoking and drinking decrease the rate of life expectancy, it is important that you reveal any such habits to the policy company even if you started smoking or drinking after buying it. The company may or may not increase your premium amount on declaring. Not revealing can cause breach of the agreement and might result in the policy getting cancelled.

3. Is the policy priced more for prospective clients who smoke?

The cost and the conditions vary from policy to policy. Some companies will want to know your smoking and drinking habits even if it was in the past whereas some companies consider you a non-smoker if you haven’t smoked in the past 3 years.

4. Can one claim term life insurance in case of accidental death?

Yes, it can be claimed if the insured dies in an accident. Some companies also offer extra benefits such as accidental death benefits, critical disability rider etc.

5. Can one claim the term life insurance cover if the death occurred outside India?

Yes, you can claim the cover or assured amount irrespective of the location of the death. However, the policy holder must inform the insurer if he/she is moving to India. The company might defer the benefits if the person decides to move to countries deemed not safe by the company.

6. What if the policy holder does not die?

Since most policies do not offer any maturity benefit, many might feel discouraged to buy one. However, many insurance companies offer you different options at the end of your term, you can upgrade your policy to a permanent one, renew it with a slightly higher premium etc.

7. How does the claim settlement work if an individual has over two policies?

In the event of death of a policy holder who has more than two policies, the claimant should mention the same while filling the form to claim the cover. In most cases, the death certificate to claim the cover should be submitted to the company whose policy was bought first and acknowledgement of the same should be sent to the other insurance companies.

8. How seriously do insurance companies investigate deaths of the insured?

It depends on whether it is an early claim or a normal claim. All policy companies have an initial period that varies from company to company that characterizes the early claim. If the claim is made in that period and the company has too much to lose, then it double checks everything before the claim is settled which other is easy in the case of normal claim.

9. What kind of deaths is not covered in term insurance?

Certain kind of deaths like deaths due to terrorist attacks or deaths due to natural disasters is not covered in term insurance. So read all the clauses carefully before buying the policy.

10. Can NRIs buy term insurance policies in India?

Yes, as long as you are a resident of India as the company might require age or address proof to see where you belong in India. And you need not visit India to do so as one can find and buy the best online term plan and submit the necessary documents on the next visit to India.

About HDFC Life

HDFC Life, one of India’s leading private life insurance companies promoted by HDFC Ltd. & Standard Life Ltd., offers a range of individual and group insurance solutions. HDFC Life’s product portfolio comprises solutions, which meet various customer needs such as Protection, Pension, Savings, Investment and Health.

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Types of Term Plans and Right Time to Buy Them

by Vinaya HS on August 13, 2015

in Finance

The following post is a sponsored post.

There are mainly two types of term insurance plans – annual renewable term and level premium term. Annual renewable term life insurance offers an all year round coverage and has to be renewed annually whereas a level premium term insurance plan offers cover for a longer period of time of 5 to 20 years and is valid for this multi-year period.

One of the main advantages of annual renewable term life insurance is that it has low premium amounts as compared to level premium term insurance policies. However, the premium amount rises as your age increases and so, it is a suitable option for those who are sure that their income is going to rise considerably in the coming years.

With level premium term insurance, you have a fixed amount of premium amount right from the first year of the multi-year period you opt for to the very last. Hence, you do not have to worry even in worst case scenarios where your income may remain more or less the same over a year.

When it comes to returns, a term life insurance policy is again divided into two categories –

  1. Policies with return of premiums
  2. Policies without return of premiums

Policies without return of premiums have lower premium amounts compared to the policies with return of premiums. Investing in a policy with return of premiums is the best term insurance plan for many as they get the premium amount they paid for by the end of their term (only if the policy was not claimed earlier).

Right to Time to Buy a Policy

The ideal time to buy an insurance policy irrespective of the type is in one’s prime. The reason being that the term life insurance will cost you half of what it will be if bought, say, after ten years. You can secure yours and your family’s future and be at peace as you grow older.

However, this does not necessarily mean that term life insurance is only for those belonging to the younger age category. It is never too late to insure yourself with the best term plan in India for you and your family. But it is always best to buy it while you can as with time the premium amount also increases and so do your other financial responsibilities.

A term life insurance policy is a great option if you choose the right plan after careful consideration. Keep in mind your current financial position and goals before signing any deal as the benefits may vary from person to person.

About HDFC Life

HDFC Life, one of India’s leading private life insurance companies promoted by HDFC Ltd. & Standard Life Ltd., offers a range of individual and group insurance solutions. HDFC Life’s product portfolio comprises solutions, which meet various customer needs such as Protection, Pension, Savings, Investment and Health.

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Manage Your Money Efficiently

by Vinaya HS on July 31, 2015

in Finance

The following post is a sponsored post.

The way people bank has witnessed some massive changes over the last few decades. Until recently, customers used to share a strong emotional bond with their respective banks that lasted for years. People used to visit their branch on a regular basis, and mostly, the relationship between the customer and the banker was more than just a formal bank-client relationship.

Ever since technology started playing its role in the world of banking, banks have shifted their customer support to alternative channels such as online banking, mobile, telephone, and ATM. Today, there is an immediate need to transform the typical business model of a bank to a customer-centric one. Banks do not only need to take note of changing consumer behavior but also have to work upon enhancing customer experiences to meet their expectations in the long run.

These days, banks consider providing their customers with the best of services and enhance their services with proper financial guidance, helping them invest in better options. Some of the major banking institutions like Kotak Mahindra Bank have started providing services such as a personal finance manager to help their customers use technology to manage their finances. Listed below are some of the most common forms of investments offered by banks. Let’s find out how you can manage all of these more efficiently.

Savings

Every bank provides their customers with exceptional customer service in order to boost the customers’ confidence and offer them the convenience they’re looking for. Having a savings account helps you make the most of profitable monetary opportunities. Some banks offer higher interest rates on savings accounts which enables you to make most of your savings. Savings accounts, either short term or long term, helps you reach your financial goals today and tomorrow. Besides, it gives you a peace of mind.

Term Deposits

Being one of the most popular financial instruments provided by banks in India, Term Deposits offers better returns than a regular savings account. It offers an edge when it’s about earning better returns on your savings. However, comparing fixed deposits with other forms of investments is a long debate. You can also save tax along with great returns over the investment with Tax Saving Term Deposits. This type of scheme is suitable for investors who want to save on income tax. Fixed deposits offers you the same interest rates regardless of the market conditions.

Mutual Funds

Mutual funds are ideal for small investors who want a diversified risk portfolio in terms of money management. You can use it as a vehicle to invest in the long term. Mutual funds offer the benefits of market-linked returns, plus they help you earn high returns in the form of capital appreciation during positive market conditions.

But, using all these financial instruments can make it difficult to track your financial goals and monitor your investments, especially without a personal finance manager. However, there are these personal finance management tools available today that help you manage your finances spread across different financial institutions all under one roof. One of the most trusted platform for this is Kotak’s MoneyWatch. Whether it is your savings accounts, credit cards, mutual fund investments, insurance policies, loans, or fixed deposits, you can track them all through Kotak MoneyWatch. No manual feeds required here, the tool updates all the data automatically for your accounts.

Author Bio:

Rachita Kotian is an independent blogger and writing has been her passion for a long time. A literature major, she loves exploring the world of health, lifestyle, travel and finance. When she’s not writing, she’s most likely listening to music, cooking, surfing the web, or catching up on the latest flick.

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Nurture Your Child’s Dream with a Click!

by Vinaya HS on June 27, 2015

in Finance

The following post is a sponsored post.

Being a parent is the toughest job in the world. Caring for children, nurturing their talent and helping them fulfill their true potential is the biggest responsibility that every parent must shoulder. Parenthood is not about taking one or two big decisions correctly. Rather, helping your child reach the pinnacle of success is all about making smart decision in a consistent manner.

Being a good parent is not about leading a perfect life. That is impossible. Rather, a responsible parent is one who plans for potential problems, and ensures his or her child is secure even in the worst case scenario. Let me tell you how one small decision that I took many years ago helped my child’s future.

I decided to open a Recurring Deposit – It was a small decision that I took on an impulse. It was my daughter’s 5th birthday and I wanted to gift her something that would help her in the long run. However, even I did not know how my decision would transform her life.

I decided to invest Rs. 3,000 per month in a recurring deposit, and planned to let it run for as long as possible. Now, a RD offers the same interest as a Term deposit. So, you don’t really lose out on interest despite opting to invest your money in a recurring manner instead of making a lump sum deposit.

You can choose your RD’s tenure depending on your requirements. Most banks offer RDs for 12, 24, 36, 60, and 120 months. I opted for the 120-month deposit and ended up investing a sum of Rs. 3.6 lakhs over a span of ten years. The biggest benefit of this option was that the monthly deduction did not pinch my pocket, and allowed me to spend on my family without any restrictions.

After ten years, I received a maturity amount of Rs. 5.74 lakhs. As my 15-year old daughter showed signs of academic brilliance from a very young age, I decided to use a part of the maturity amount to invest in savings & investment plans to secure my child’s education.

The returns that the RD had provided proved very beneficial when my daughter was about to seek admission in an engineering college. I lost my job and struggled for four long years before I become financially stable again. The combination of the RD’s maturity amount and the investment plan funded my daughter’s education despite the fact that I was not earning anything throughout her engineering degree.

My farsighted decision helped my daughter hone her skills and study abroad with a full scholarship. A small amount of Rs. 3,000 per month made all the difference between success and a devastating failure.

Therefore, you should start planning to nurture your child’s future at a very young age. Remember, compounding offers benefits only if you let the investment grow for a very long time. Combining a 10-year RD with a 5-year RD can help you save money for your child’s future without compromising on your immediate requirements.

Author Bio:

Rachita Kotian is an independent blogger and writing has been her passion for a long time. A literature major, she loves exploring the world of health, lifestyle, travel and finance. When she’s not writing, she’s most likely listening to music, cooking, surfing the web, or catching up on the latest flick.

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