The following post is a sponsored post.

Filing income tax is a procedure which requires individuals to be aware of latest income tax slab and various tax saving investment options as well. Filing ITR without paper is possible only for individuals with digital signatures. Taxpayers without a digital signature need to post a physical copy of the returns to the Central Processing Center (CPC) in Bengaluru within 120 days of completing filing their returns online.

The Central Board of Direct Taxes (CBDT) issued a notification on 13th July 2015 in relation to the use of Electronic Verification Code to verify the electronically filed ITR. Taxpayers who verify their ITR through this EVC are not required to send physical copies through the post.

Understanding EVC

The EVC helps in the verification of the person’s identity known as the verifier and can be generated on the e-filing site of the IT department. This code can be used for verifying ITR 1, 2, 2A, 3, 4, 4S, and Karta of an HUF. Every assessee will need to generate a unique EVC related to his or her Permanent Account Number (PAN) and can be used to verify only one ITR irrespective of the Assessment Year (AY) or type of return (revised or original). This code is valid for 72 hours and stored against the assessee PAN. Verifiers can generate multiple EVC and use more than one mode for its generation.

EVC generation modes

The CBDT, to simplify the process of filing income tax returns online provides 4 methods to verifiers to generate the EVC. Assesses are advised to ensure their e-mail address and mobile number is registered with the CBDT to enable the generation of the code.

E-filing website: This is the simplest and fastest way to generate the electronic verification code. You will simply need to follow the steps on the e-filing website and the EVC is sent to your registered mobile number and e-mail address. You will need to login using your PAN, click the e filing returns online tab and select Generate to receive the EVC.

Linking AADHAR card to your PAN: After logging in, click on the “Profile Settings” tab. A drop-down menu providing an option of Linking AADHAR to PAN will open. After filling the necessary details, you can click to complete the process and generate the EVC.

Through Bank ATM: You will have to use the ATM card of the registered bank with the income tax department. To generate the EVC, you will have to select “generate EVC for ITR filing” tab that appears on the ATM screen. The code will be sent to your registered mobile number

Net Banking: For using this method you will need to route the income tax returns online filing process through the registered bank. Assesses must login to their net banking account to be redirected to the e-filing website to generate the EVC, which will be received on the registered mobile number.

Using EVC to verify the ITR
The EVC is usable while uploading the returns through net banking, returns that are already uploaded, or uploading the ITR without net banking facility. The entire procedure is simple and well-outlined on the e-filing website and can be easily used by most users to make filing online returns easy and convenient.

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 of solutions, which meet various customer needs such as Protection, Pension, Savings, Investment, Health and Online Term Plan.

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The following post is a sponsored post.

One of the biggest perks of working at a multi-national company is that your health is secured by your company’s group medical coverage. In fact, not only is your health secured, many companies offer health insurance plans that cover your dependents as well. The benefits offered by your health insurance policy tend to vary from company to company and it is also a function of your tenure at the company. For group medical coverage, the cumulative risk of all the members is considered while deciding upon the premium amount. In any group, some members are less likely to make a claim than the others. As a result of this, the risk factor is balanced to a great extent.

However, not everyone works at an MNC & not all companies provide health insurance plans to their employees. In this case, there are individual health insurance plans available that only cover one person’s medical expenses. An individual health insurance policy is only valid for the time decided by the policyholder and is not dependent on any other factors like employment. The premium rate is fixed at the time of buying the policy.

What happens when you quit your job to start your own business or join another company? Your group medical coverage is not in force anymore and before you seek employment elsewhere, your health is not covered. In this case it is advisable to shift from your group medical plan to an individual plan. Since a group medical policy underwrites a group, the norms are more relaxed. Hence, the waiting period that you have accumulated for pre-existing conditions can be carried forward the when you switch your insurance plans. This is only possible if you opt to stay with the same insurer. You can only switch insurers when you have completed at least one year with your individual policy with the present insurer.

Usually, there are no waiting periods in a group health insurance and pre-existing conditions are covered from the very first day. However, as per the IRDA the credit gained for pre-existing conditions in the form of a waiting period is eligible to be carried forward. When shifting your policy from group to individual, you can also shift policies if your entire family is covered by it. You can choose individual policies for each family member or opt for a family floater cover.

The transition can be carried out by filling a form to port from one policy to another. You will need to furnish the details of your policy, your medical history and declarations alongside. Certain insurance providers might also ask you to take a few medical tests. The benefits of portability can only be availed if your previous policy has been carried forward without interruptions. It is important that you submit your form for porting at least 45 days prior to your renewal date.

Once the application for porting is processed, the insurance provider underwrites the new policy and the terms and conditions associated with it along with the new premium. This typically takes around 15 days. Once the premium is paid by the insurance holder, the new policy begins.

There are several benefits of shifting from a group medical plan to an individual health plan. An individual insurance policy gives you more exhaustive coverage than a group coverage would. You can choose a customized policy to suit your specific medical needs. In addition to this, you can enhance the cover when you shift from one health insurance plan to another. However, the benefits of the waiting period will only apply to the existing sum assured and not the new sum assured.

Whether you have a group plan or an individual plan, it is essential to have medical insurance in this day and age. There are several insurance service providers that offer various health insurance plans and critical illness insurance as well that cover a variety of medical conditions. These days cashless health insurance is also a popular option that is available so if you do not have a health insurance policy, get one today & safeguard your health today!

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 Mediclaim and other health insurance plans in India cover individual, family floater, critical illness and cancer care insurance plans.

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Most Indians have a life insurance policy today but why is it that very few have a term life insurance policy? While traditional/endowment life insurance policy provides returns on maturity, a term life insurance policy is different from a life insurance policy and getting a term cover may be important to have to get that ultimate protection.



Image credit: economictimes.com


Here are few reasons why getting a term plan may be necessary to get sufficient life cover.

1. Flexibility helps fill in the life protection gaps as per your needs

Pure term plans while not an investment options help financially secure you’re loved ones in time of need. With every passing year due to changing needs and inflation rates the insurance cover needs to be revised from time to time. For instance, you may have taken a cover when you were 30 years of age but after that if you started a family this would mean that you would need to consider revising and increasing the insurance cover. While we don’t know at any given point exactly how much insurance is completely apt for us, however, it is essential not to have inadequate cover. Your current life insurance plan may provide returns when you are 60 years but considering the high rate of inflation and different needs at different stages of life the cover may not be adequate.

A term plan offers options where you can opt for a policy where payout increases every year. Also they offer great flexibility where you can also opt for online plans where companies usually do not insist on health check-ups if the cover is less than or equal to Rs 50 lakh. In such a case while you won’t be able to increase the sum assured during the renewal process, you can always opt for a new plan online as and when the need arises or even customize the plan with optional riders.

2. Lower premiums & higher cover

As there is no investment element included in the amount insured the best part about getting a term plan is that the premium amount is much lower than all the other insurance plans available out there. For instance: If you buy a term plan like the ICICI Pru iProtect Smart which offers a Rs 1 crore cover for 30 years then if you are currently 30 years of age the average premium will be only Rs 8000/- per year but a life insurance policy for a 30-year-old which provides returns on maturity can have a premium as high as Rs. 16,000/- per year or more with much lesser cover. In this case if your salary is 8 lakhs per year then Rs. 8000 is just 1% of your annual income for a cover as high as Rs. 1 crore. While you have the benefit of getting returns with a life insurance plan the whole objective of a life cover gets defeated.

3. Extra funds left over = added financial security from other investments

Due to the affordability of the term plans you can benefit by earning interest on investing the premium difference in other instruments with fairly good to high returns such as a PPF, FD’s, mutual fund or unit-linked plan which will give compounded returns. For example, if you had decided to put aside Rs. 36,000/- per year for the sake of insurance and the term plan costs only Rs.7940/- then you can invest the remaining Rs 28,060/- elsewhere. So if the difference Rs 28,060, is invested for only 15 years (half the time of the policy) at an interest rate of 10% a year, it will result in return of Rs 9,80,689/- and investing it for 30 years will mean higher returns. This way your family and you will have double benefits of returns which can be en-cashed earlier as well as an adequate life protection cover.

To illustrate this further in another example for a 30-year-old male, we take a life cover of Rs 10 lacs for a policy term of 15 years, the annual premium is Rs 67,070 (exclusive of service tax) and a term insurance of Rs 50 lacs with a term of 15 years, the annual premium is Rs 5,985 (inclusive of service tax). We invest the remaining amount in PPF (Rs 63,432) every year. Let’s compare the returns.



The PPF and term plan combination outperforms the endowment plan in terms of returns and most importantly in terms of providing adequate life cover.

4. Provides additional riders missing in traditional life insurance policies

Your life insurance policy which you have provides returns at the end of the policy. But what if there is a mishap like a critical illness, partial or permanent disability and so on before the term ends? In these cases it would become essential to a cover that caters to your financial needs at that time. Term plans come with a host of riders which provide extra benefits at a nominal cost; including critical illness cover, partial or permanent disability cover, waiver of premium and income benefits. The advantage of a term plan is that it is pure protection which is what insurance is supposed to be so like in the case a person who works in the heavy industries a waiver of premium or a permanent and partial disability cover can be explored. Since riders come with additional costs it is better to buy a rider only depending on your needs and not just for the sake of it.

Comparison of two financial portfolios:

X Y
Makes an investment in a FD, PPF & Traditional life insurance Makes an investment in a MF, FD, PPF & Term insurance
Portfolio Value – 10 lakhs Portfolio Value – 10 lakhs
In case of untimely death with traditional life insurance policy the family of X will get Rs.10 lakhs. In case of untimely death with term insurance policy the family of Y will get Rs. 1 Crore & 10 lakhs.

So while the portfolio values of X & Y are the same (Rs. 10 lakhs), Y’s family who has invested in the term plan has much greater protection and also has money invested in an additional mutual fund as not present in the case of X. Hence Y’s family can expect good return with the additional mutual fund.

The bottom-line is that while it is good to invest and expect returns but we should not lose sight of the fact that the main reason we take insurance is to protect our family in case of an unfortunate event. As seen above a term cover is a pure insurance product which can be bought online at a very low cost and can provide a cover of as high as Rs 1 Crore 10 lakhs.

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The dream of an average lower or middle-class family in India is to own a house even if it means 1-BHK. Moreover, the easy availability of financing options has turned dreams of thousands of home buyers into reality. But what if a natural calamity destroys this dream? Or what if your house is burgled and you lose possessions worth Rs 10 lakhs or more? Whom will you blame?

Rise in natural disasters in India

The basic elements of Nature — Fire, flood, air, water and space along with other nature’s forces can create disturbances in the Universe, which are unexpected. No one is prepared to face these unforeseen circumstances. Though the government may support you with relief fund in case of natural calamity, will this fund be sufficient to rebuild the same house which you had earlier? Or can you spend Rs 15-20 lakhs out of your savings to rebuild your house?

Natural Disasters in India

Source: www.slideshare.net

Man-made risks are on the rise

In 2014, house theft cases increased by over 300% with 12,276 cases reported in the year. The cases of burglary get increased especially during vacations when scores of the family go for holidays.

Statistics

Source: Livemint

Benefits of home insurance

Though some events are uncontrollable, you can alleviate the risk by buying home insurance:

  1. Natural calamities can strike anytime and anywhere: It becomes important to fix the perception that misfortune happens only with other people. It takes years and sometimes decades to save the hard earned money to build a dream home where you can create beautiful memories with your family. With a home insurance policy, you can protect your house against all types of “Acts of God” or natural calamities like cyclone, flood, landslides, etc.
  2. Man-made risks are the reality: Like every TV crime show proves, despite the trendiest and fanciest of safety equipments, human-engineered disasters like burglary, theft, etc. are prone to happen. Further, acts of terrorism, riots, and strikes pose new threats to your home. While not every home insurance policy offers coverage against these risks, you can get the coverage in the form of a rider.
  3. Cover is required irrespective of where you live: Even if you are living in a rented apartment or a housing society, you need home insurance to protect your place. In case you are a tenant, you should go for the policy that covers the content of the house.
  4. Your house might have precious items: You might have spent thousands or lakhs in furnishing the interiors of your house and beautifying it with domestic appliances, light fixtures, furniture and more. Many of us also have some items that hold sentimental value like artwork, jewellery, etc. But what if someone steals them? Apart from the emotional loss, there will be a financial loss also. A home insurance ensures that precious items which have sentimental value are protected from all hazards.
  5. You might need to relocate to a new place: In case your house is being reconstructed, you may need to find an alternate place to live, which means spending extra money as rent. Some insurers bear additional expenses of rent for alternative accommodation, which ensure that you have a comfortable way to live while your house is being reconstructed.

Chosen with care, a home insurance policy can give comprehensive cover against all types of perils. Typically, it has the following parts. As a homeowner, you can either opt for both the covers or for one. There are various other riders also which can be added to the insurance policy.

  1. Cover for structure: It is calculated in three different ways:
    • Reinstatement value: It is calculated on the basis of the built-up area and the total construction cost of the property.
    • Agreed value: It comprises the total area of the land and the cost of the house.
    • Indemnity value: It includes the total property cost and depreciated value of the property.
  2. Cover for content: While it is expensive to rebuild the structure of the house, contents of the house also involve a large amount. Therefore, while protecting the structure, it makes sense to insure content of the house also. While buying the policy, make sure to give the correct valuation of all the insured items to the insurer through bills and invoice.
  3. Riders: You can expand your coverage by adding riders to your main home insurance policy. For instance, rent cover helps you if you need to stay at a temporary location while your house is being rebuilt. Some insurers also offer riders like public liability, cost of removing debris, architect’s fee, personal accidents, etc.

It is imperative to take the optimum coverage under home insurance— neither too high nor too little. You can go for the long term home insurance policies, in which the coverage is offered for five or ten years in one go. The longer you take the cover, the cheaper the premium will be.

As said by Jane Sherwood Ace, home wasn’t built in a day, so why not go the extra mile and safeguard the abode by insuring it with a comprehensive home insurance policy?

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How to Avail a Car Loan with Bad Credit Score?

by Vinaya HS on July 29, 2016

in Finance

Who wouldn’t want to drive around in a big fancy car of their dreams? But not everyone can afford it. Some of us may be trapped in a financial crisis which affect loan repayment schedules. This may in turn result in defaults, thus creating a bad credit history.

The Credit Information Bureau (India) Limited (CIBIL) assigns a credit score, based on an individual’s borrowing and payments towards loans and credit cards. Most Indian banks accept 750 as the minimum CIBIL score for individuals seeking a car loan. If you have a bad credit score, fret not. It doesn’t mean you can’t purchase your dream car. Though you may not have it easy like other car loan seekers, you can still get a loan.

The following tips will help you get an auto loan when the bank is frowning at your CIBIL score.

Buy a new vehicle instead of a used one

Usually, loans for used cars are more expensive than that of a new one. Hence, it is advisable to buy a new car if you do not wish to shell out extra money on loan interests. However, if you find a good deal on a used car, go ahead.

Know what’s on your report

Checking your credit report is critical as many auto loan seekers assume that their credit score is low and thus end up paying more. If you find any errors on your report like charge-offs or late payment charges, fix it immediately.

Research well

The next logical step is research. Conduct your research about loan lenders, car loan interest rates, etc. Approach selected lenders which have a greater chance of lending the loan. Each time an auto loan lender pulls out a CIBIL report, it creates a tag. Too many inquiries on the report may adversely affect the lenders decision.

Don’t go above your price limit

Setting a budget should be at the forefront while planning to purchase a car. The price you end up paying may increase due to interest payments, mainly due to higher rates of a bad credit loan. Hence, prepare a budget and stick to it. Auto magazines, car loan calculator, dealer’s websites and other resources could provide a true cost of the desired vehicle.

Negotiate

Though you may not be in a position to negotiate the terms of the loan, you can try to settle for the best possible price. Don’t pay more than your budget. Instead, try to lower the price if possible.

Look out for add-ons

Car buyers end up signing contracts which have many unessential add-ons like extended warranty, after-sales service, insurance, etc. These add-ons add up to the cost, thus raising the amount of the loan required.

Make regular payments

Once the loan is approved and you’ve purchased the car, make regular payments. Set up automatic payment options to help you pay the loan on time. Chances are the lender may repossess your vehicle should you miss a single payment.

Don’t let bad credit come in the way of buying your dream car. Plan well and research well before approaching lenders. Once you have shopped within your price range and made regular payments, you know you’ve made financially right decisions.

Know more about car loans and their interest rates at Mahindra Finance.

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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Term insurance plans are the best way to provide financial security for loved ones of the insured in case any unfortunate incident. Compared to traditional plans, online term plan is available at a lower premium, which makes it easier for a larger number of people to procure insurance.

Term plans do not provide survival or maturity benefits, which is why people try to opt for the cheapest policy. Although saving money on the insurance premium is beneficial, it must not be the only deciding factor. Cheap is not always the best and considering some of the below-mentioned factors while making the decision is very important.

Higher Policy Tenure

Several insurance companies now offer term plans with longer tenure, which ranges between 35 and 50 years. With improved medical facilities and technical development in the healthcare sector, life expectancy has significantly increased. Checking the tenure being offered by the insurance provider before availing the policy is advisable. The best life insurance plans offer longer tenure, eliminates the need to purchase another policy in case the first one expires.

Maturity Age

The majority of the term insurance plans have a maturity age between 65 and 80 years. As a person grows older, the possibility of suffering from various sicknesses and critical illnesses also increases. Individuals are advised to choose a plan with a higher maturity age to ensure coverage is available at an older age when the possibility of ailments is higher. The best term plan will be one that has a maturity age of over 75 years for the policy holder to enjoy coverage during the senior years.

Claim Rejection

The claim rejection ratio is one of the most important factors that must be considered while choosing term insurance plans. Claim rejection ratio is the number of claims that are not paid as a percentage of total claims made during a year. Benefits of these life policies are given to the beneficiaries only on the death of the insured. Opting for an insurance provider that has lower claim rejection ratios will be advantageous to the family members. The procedure and time taken for claims to be cleared must also be considered to ensure the beneficiaries do not undergo too much stress while already dealing with the sorrow of losing their loved one. Selecting a reputed and reliable insurer is an important factor that must be considered while availing term plans.

Low Claim Pending Ratio

While ensuring the claim rejection ratio is lower, the claim pending ratio must also be considered. If an insurance company has a high pending ratio it may be reflective of inefficiencies of the service provider while settling the claims. According to the regulatory guidelines, claim settlements must be completed within six months and if an insurance company has a higher pending ratio, it is recommended to choose another service provider to buy the best term insurance.

Actual Premium

An increasing number of users are going for online insurance. This is because they are able to acquire higher coverage at lower costs. Insurance companies are willing to offer the cost savings by eliminating the intermediaries through the online channel, which reduces the premium on term plans. However, potential buyers need to understand that the online quotes are indicative and the actual premium amount may differ. Certain factors, such as medical history, current health conditions, and lifestyle play an important role in determining the actual premium and checking the exact amount before making the decision is very important.

Complexity

Individuals must ensure the procedure to acquire the insurance coverage is not complex. Moreover, the claim filing process should also be easy and quick to prevent the beneficiaries from having to run from one department to another to receive the policy benefits. Investors are advised to check the past history and track records of the various insurance providers before making their final decision.

While availing term insurance provides peace of mind to the investors, doing some research before opting for one is crucial. It is very important to provide accurate and truthful information to avoid rejection. Considering the above-mentioned factors before buying term plans will go a long way in ensuring financial security to your loved ones.

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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The following post is a sponsored post.

Technology has developed and the Internet is used by millions of people for various reasons. This has even affected the insurance industry and a greater number of individuals are now opting to purchase insurance using this advanced technology.

When investors opt for purchasing life insurance policies, investment plans or retirement plans online, they eliminate the agents and brokers. This makes the entire procedure faster and less cumbersome. Moreover, most insurance providers offer excellent in-house support to assist clients in case of any difficulties.

Here are seven reasons to buy insurance online

1. Cost

The cost of availing insurance online is at least 50% to 70% cheaper than the expense of acquiring coverage using the traditional method. This is because intermediaries are eliminated and clients directly deal with the insurance companies, thereby reducing the expenses. In addition, insurers consider people opting to buy insurance online as having less mortality risk, which means the premiums for such buyers is lower.

2. Sum assured

Investors tend to choose higher coverage sum assured because online term insurance plans are cheaper. A reason for availing higher coverage through online is the marketing strategies adopted by the insurance companies providing low per day costs for these policies. Moreover, most online insurance policies do not have mandatory medical tests, which make it more convenient for people to avail higher coverage.

3. Premiums

Compared to insurance coverage acquired offline, the premium on online plans is significantly lower. This lower premium is available only for investors who choose to acquire the insurance coverage online. Insurance companies are willing to pass on the benefits of reducing their overheads and intermediaries’ expenses to online policy buyers.

4. Comparisons

Several websites are available, which make it easier for potential buyers to make intelligent comparisons. Using a single resource, individuals are able to compare the terms and conditions, coverage, premiums, and other factors of policies offered by different insurance companies. Such comparison makes it easier for users to make the right choice as per their personal requirements ensuring maximum benefits.

5. Transparency

Availing insurance includes several factors and each policy comes with a long list of terms and conditions. Understanding these before signing the dotted line is crucial to avoid any problems in the future. The online term plan is completely transparent and provides all details related to riders, features, and tenure. Riders are additional covers that may be chosen by paying extra premium. Moreover, potential buyers have access to customer testimonials and comments, which makes it simpler to understand the overall experience while dealing with a particular insurance company. Another transparency feature is that every policy buyer receives text and e-mail confirmations on their transactions that allow them to track their application status and rectify any errors that may have occurred at the time of submission.

6. Easy access

If the policy has been purchased in the traditional manner, the possibility of being able to access related information at all times is often difficult. This difficulty is easily overcome when individuals choose to buy term insurance online. Investors can log in to the insurance company portal from any place at their convenient time to access the required information.

7. Flexibility

Online policy purchase allows users to make modifications as and when required before submitting the form. Therefore, if the buyers make any mistake in entering the information, they can edit or delete it before making their application. This prevents the insurance company from rejecting their applications because of providing inaccurate information ensuring insurance coverage is easily available to the investors.

It is easily seen that buying insurance online has several benefits. However, individuals must research about the different options because they do not have the option to rely on an insurance agent or broker. Investors must know the coverage, terms and conditions, and all the inclusions and exclusions before buying the policy to prevent any nasty surprises in the future. Several online resources are available, which provide beneficial information and taking guidance from these will ensure investors are able to acquire the right policy that maximizes their benefits at the lowest possible costs.

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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The following post is a sponsored post.

Buying a car is an event that brings in an enormous amount of joy and apprehension at the same time. This is because unfortunately, any vehicle plying on the roads is susceptible to numerous risks of accidents or damage; often involving the third party. Cars are expensive, and any such untoward incident might rob you of your hard earned money.

It is thus necessary to buy a good car insurance policy to safeguard your vehicle against any such occurrence. This article will provide you the essential details regarding Third-Party coverage with Cholamandalam car insurance.

Third-party coverage

When you are driving on the roads, you become intertwined with the lives of numerous people around you. Regardless of how good a driver you are, there is always a risk of some unfortunate accident which might include a third party. And then a blame game might ensue, enhancing your troubles. In such cases, third party policies might turn to your advantage.

The policy shall cover all the compensation costs, including property damage and bodily injury liability involved in the accident. This is purchased by the insured from the insurer which is the second party as a safeguard against any claims made by a third party in case of any accident. The beneficiary of this policy is thus the third party which is not directly involved in buying it but, has become the legal liability of the first party.

Driving is a risky business. It is thus necessary to buy this third party motor insurance so as to avoid burdening your pocket if an accident causes damage that involves a third party. Hence, your third party coverage might turn out to be a lifesaver by cutting down your expenditure.

Benefits of the policy

Cholamandalam car insurance provides you with a broad range of benefits as mentioned below:

  • It provides a complete comprehensive cover that offers both Third Party Cover and Own Damage Cover.
  • The Third Party Liability Cover includes TP Personal Liability & Property Liability.
  • Third Party Property Damage includes a maximum cover of Rs.7, 50,000, in the case of private cars.
  • It provides Personal Accident Cover for the owner, driver, and passengers.
  • It provides protection for your vehicle against damage or loss due to accidental external means, theft, burglary and various other perils.
  • Discount on Own Damage (OD) premium for claim free policy years – No Claim Bonus can also be availed.
  • The Own Damage Cover protects against loss due to fire, burglary, earthquakes, floods, terrorist activity, landslide, etc.
  • It provides optional cover for a personal accident of up to Rs. 2 lakhs for passengers in your car.
  • Cashless claims facility available at more than 600 Chola MS preferred garages
  • Seamless and hassle-free claims process
  • Facility to buy online car insurance through simple and hassle-free procedures
  • Quick and easy online insurance renewal process

Third Party coverage with Cholamandalam car insurance thus provides you with a wholesome package that can help you get rid of all your worries in case of an untoward accident.

Happy driving!

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The following post is a sponsored post.

Most of the investors in India are risk-averse and prefer choosing safe investment avenues. Even with a large number of structured products being offered to Indian investors, the popularity of fixed deposits (FDs) is high. FDs are offered by the banks and provide slightly better returns than the saving bank account. One reason for their continued popularity is the guaranteed return on investment at the time of maturity.

Most investors fail to overlook the inflationary increases and tax liabilities while calculating the return on FDs. It is, therefore; not surprising that on a closer evaluation, investing in FD may actually result in a loss for the investors.

A better albeit riskier option is investing in mutual funds (MFs); which are professionally managed by experienced fund managers. Various fund houses offer different options, which makes it easier to find one that most appropriately suits an individual investor’s needs.

Differences between FD and MF

Returns

FDs guarantee the returns on the initial investment at the time of maturity. These are based on the investment amount, tenure, and the age of the investors. In comparison, returns on mutual funds are based on the market performance of the asset class and are not guaranteed.

While investing, considering the effects of inflation on the overall returns is important. Opting for financial products that provide profits exceeding the inflation rate is prudent. Adjusting the guaranteed fixed deposit rates for the inflationary increase will give investors the exact profits they will make on their invested capital.

Risks

Banks offer guaranteed returns on the FD at the time of investing. Any fluctuations in the market conditions and interest rates do not affect this return. On the other hand, MF returns are directly related to the performance of the asset class in which the capital is invested. Therefore, investing in MF is riskier than FD but offers a better opportunity for investors to earn higher returns.

Liquidity and premature withdrawal

MFs are more liquid than FDs because the latter cannot be withdrawn before the maturity date. If an investor needs to prematurely withdraw the FD investment, he or she will need to pay high penalties. Most MFs do not have a specific lock-in period unless equity linked funds, which provide tax benefits. However, an investor may have to pay an exit load (fee) if he or she liquidates the investment before one year from the date of purchase. Checking the exit load before making the investment is advisable.

Investment costs and expenses

Investing in MFs has certain costs and associated expenses, which vary based on the type of fund chosen. The returns on the investments are adjusted for these expenses. FDs, on the other hand, have no initial investment expenses and the entire returns are available at the time of maturity.

Tax implications

Understanding the tax implications of any investment before making the decision is vital. Returns on MFs are classified as capital gains while the fixed deposit interest earnings are classified as income. This means the entire interest earned on the FDs is taxable. Investors must pay the tax as per their income tax slab rate. In comparison, long-term capital gains (investments redeemed after one year) made on equity MFs are tax-free and short-term capital gains are taxed at 15%. Long-term returns on debt MFs are taxable at 20% (with indexation) and 10% (without indexation). Investors must pay short-term capital gains tax as per their tax slab rates for debt MFs.

Each of these two financial products has specific pros and cons. In addition, to understand these, an investor must consider his or her risk profile and investment period before making the choice.

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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Best Credit Card that Suits Your Needs

by Vinaya HS on June 26, 2016

in Finance

The following post is a sponsored post.

Most users have a very basic understanding of credit cards and how they work. To most users, these cards simply represent a line of credit, albeit one that attracts interest. This however, isn’t entirely true. While all credit cards allow you to make instant purchases without needing to make simultaneous payments, there are differences in the repayment structure, interest, fees, and also in benefits offered.

There is a wide range of choice when it comes to credit cards and many banks also offer repayment options with a specific interest-free period. It is important to keep your expectations in check while researching the different options to find the perfect card that meets your requirements. To find a card that suits your needs, it is recommended that you ask yourself a few questions.

How often will the card be used?

Do you believe that ‘cash is king’ or will you be using the card for all your requirements, such as fuel, groceries, bill payments, and everything else. No matter what your usage, the best credit cards will most likely be those that require no annual fees. However, if you plan to use the card for all your purchases, you can convert these to vouchers or other offers with a rewards program.

How much balance will be repaid every month?

It is absolutely essential for you to be very realistic about this consideration when you apply for a credit card. If the answer is the minimum due amount, you should find a card with low-interest rates to save money. On the other hand, if you are going to pay the bill in full each month, the rate of interest will not be too much of a concern and you can opt for a card with other benefits and features. This consideration is even more crucial than the presence of an annual fee.

Do you have any outstanding amounts on other cards?

If you already have a huge outstanding on your card, you should consider the type of credit cards known as balance transfer cards. Very often, these cards give you the option to convert the outstanding to equated monthly installments that reduce the carrying cost on the owed amount.

However, while opting for such a card, it is important for users to be aware of the rates. Card issuers may provide the lower interest rate only on new purchases made, which does not address the existing outstanding balance issue. Conversely, the low balance transfer rate may not be applicable to new purchases.

Are you a frequent traveler?

For frequent travelers, it makes sense to look for cards that offer travel rewards. These cards award reward points on your travel and airline expenses, which can be redeemed for free air miles or stays at participating hotels. However, do not be influenced by the sign-up bonus, but be more attentive towards the long-term perks and rates that are more valuable to you.

A secured credit card, when chosen and used responsibly has several benefits. All banks including Kotak Bank offer different kinds of cards to suit the varied needs of their customers. A few of their offerings are listed below:

Shopping – Urbane Gold, , Silk Inspire (Specially designed for women), and Essentia Platinum

Lifestyle – League Platinum, Wealth Management Infinite, Privy League Signature, and Royale Signature

Dining/Entertainment – PVR Platinum, PVR Gold, and Delight Platinum

Non Resident Indians – NRI Royale Signature

Just as you would hunt around for the best bargain when shopping for major purchases, the same care should be taken when applying for a credit card. If you believe that you can use a credit card in a responsible manner that benefits and helps you save money, you should consider signing up for one of these cards at the earliest.

Author Bio:
Tejas Kunder is an independent blogger and writing has been his passion for a long time. A journalism grad, he loves exploring the world of sports, health, lifestyle and travel. When he’s not writing, he’s out on his bike discovering new places, apart from that he loves listening to music and catching up on the latest flick.

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Riders in Life Insurance

by Vinaya HS on June 18, 2016

in Finance

The following post is a sponsored post.

Riders in insurance policies facilitate the allocation of personalized benefits to the consumer at a nominal additional cost. Riders help convert standard policies into more attractive ones so that consumers can use them to meet their specific life requirements.

Let’s take the example of an accelerated death benefit rider. This rider ensures the insured receives a payout while he/she is still alive (in the event of an unfortunate terminal illness). There are many riders associated with insurance policies. The list below provides a clear picture to help you choose a policy with the right rider.

1. Accidental Death Benefit Rider: This rider will increase the death benefit in the scenario of an accidental death.

2. Accelerated Death Benefit Rider: This rider pays out the death benefit in advance if you become terminally ill. It ranks among the most popular riders.

3. Term Rider: This rider allows the insured to add any kind of term insurance to his/her policy so that the family received additional sum assured in case of an unfortunate death.

4. Waiver of Premium Rider: This rider ensures you don’t pay premiums on your policy in the event of a disability. In case of child plans, these riders waive of the future premiums of the policy in case of death of the parent or the premium payer.

5. Disability Income Rider: This rider allows you to collect payouts in case of total disability.

6. Return of Premium Rider: This rider ensures refund of premium if you live past the duration of your policy. This is usually associated with term plans.

7. Critical Illness Rider: This rider ensures you receive payouts if you are diagnosed with any of the illnesses mentioned in the policy.

Choose the right policy after going through the life insurance riders featured in this list. The decision on choosing the rider should be based on your priorities. Consider your income, dependents, spending and debts while going for a rider.

Hop online and explore different providers for the right policy and rider. Seek online advice from the sites you visit to choose the perfect term plan with riders.

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How to lower term insurance premium rates?

by Vinaya HS on June 11, 2016

in Finance

The following post is a sponsored post.

An increasing number of people are choosing term plans because of their affordability and higher coverage. Insurance companies consider several factors when determining the premium payable on such plans.

A few factors, such as gender and age cannot be controlled by the insured. However, there are certain factors that can be modified to lower the premium on term insurance plans.

  • Excessive smoking or drinking – Both of these habits have negative health effects, which is why habitual drinkers or smokers need to pay higher premiums on online term plans. Every insurer requires the details of such habits before selling the plan because these factors affect the premium payable on the insurance plan.
  • Hobbies – Certain hobbies like scuba diving, skydiving, boxing, and so on, increase the risk associated with loss of life and disability due to injury and accidents. This makes it riskier for the insurance companies to insure your life. You should not be surprised if you are asked to pay a higher premium or are even refused an insurance policy, if your hobby is perceived as excessively dangerous.
  • Present health conditions – Your health is an important determinant of your mortality risk, which directly affects the insurance premium. An individual suffering from pre-existing conditions likes heart trouble or diabetes is at higher risk as compared to a healthy person and must pay more as premium. Insurance companies require details about your present health conditions before issuing the policy. Individuals who are over 45 years of age may require undergoing medical tests prior to availing the online term insurance plan.
  • Longer duration or higher sum assured – Policyholders who want to avail term insurance for a longer duration or higher sum assured need to pay bigger premiums. Longer term or higher sum assured increases the exposure and risk assumed by the insurer in case of your demise during the policy period. You may consider reducing the duration or the sums assured, or find another insurance company, if you think the premium is very high.
  • Obesity – Being obese increases the risk of other health conditions like diabetes or heart trouble. This increases the risk of the insurance company, which results in obese individuals needing to pay higher premiums.
  • Riders – Riders like critical illness covers or premium waiver have an associated cost, which increases the overall cost of availing the term plan. Before you decide to include riders within the policy, it is advisable to take a step back and assess your needs.
  • Making online purchase – Commonly, online term policy premiums are lower when compared to offline policies. Insurance companies pass on the reduced administrative and distribution cost reductions enjoyed through online sales to the buyers in the form of lower insurance premium.

Term plans have several benefits and are an excellent and affordable way to avail higher insurance coverage. You can further reduce the costs by considering the factors mentioned above.

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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Health insurance plans are available in several variants. One such plan is maternity benefit where the plan covers the expenditure incurred during the delivery of the child.

What is Maternity Benefit?

If your health plan has an added maternity benefit to it, then expenses incurred during child birth will be covered under it. Both cesarean and normal deliveries are covered. However, in most plans the extent of the coverage is capped.

Mediclaim policy with maternity benefits is generally expensive compared to other health insurance schemes.

Conditions to be met to avail maternity benefit

  • Certain plans wants the mother covered for 2/3/4 years before she can avail for maternity benefit. This is generally known as the waiting period for maternity benefit.
  • Most of the insurance companies include maternity benefit plans only under family floater policies.
  • There are certain plans where the father and the mother both should be covered under the health plan before availing maternity benefit.
  • Most plans only cover 2 deliveries under the maternity benefit.
  • A maternity benefit has sublimit so inquire thoroughly with the insurance company before opting for one.

Who should not consider maternity benefit?

  • Elderly couples and senior citizens who do not want to have a baby in the future.
  • People living in cities where the medical expenses are not high.
  • If you’re single and do not plan to marry and have a child anywhere in the near future.

Who should consider maternity benefit?

  • If you’re self-employed or under your employer’s health plan and maternity benefit are not covered, then couples who are planning to have a child in the near future should opt for this.
  • In cities where the medical expenses are high.
  • Ensure that the waiting period is not too long and the difference between the premium of maternity and non-maternity is not too high.

Maternity Benefits include:

  • Planning Benefits
  • Scan Benefits
  • Pregnancy benefits
  • Alternative birth cover
  • Hospitality maternity cover
  • Postnatal benefits

Necessity of health insurance plan with maternity benefits

In today’s world, medical expenses are increasing day-by-day, during these times it’s necessary to have a family health plan. If you’re just married and plan to have a child 3-4 years down the line, then while opting for a health plan also include maternity benefits. It will save you on a lot of money on medical expenditures during the whole child birth procedure.


Before applying though, research thoroughly about all the maternity benefits available and then opt for one.

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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If you hold a valid car insurance policy and wondering on how to make a claim when your vehicle breaks down or meets with an accident or gets stolen, then read on to follow the simple steps to make your car insurance claim.

Inform your Insurance Provider

The first thing that you need to do, if you are in an accident, or you face any other mishaps, is to call the insurance company and intimate them. The customer service team of the insurance company is sure to bail you out of the sticky situation and help you under any circumstances. All companies will have a customer service contact number available on their website for immediate assistance. It is crucial that you take this first step to avail quick assistance.

Lodge FIR if the situation demands

If your car is stolen, you need to file an FIR with your local police station immediately to make a claim. Filing an FIR in case of theft is mandatory. Even in the event of a serious accident, it is good to lodge an FIR and follow the process.

Assess the damage and status of the car

After you call the insurance company, they will guide you to the nearest network garage that they have a tie-up with for a cashless inspection or repair of the damage. This will ensure that you get the best service for your car and avoid out of pocket payments. Since the insurance company has a tie up with the garage, they will take care of your repair bills and get it settled. In case your car has broken down, they will also assist to tow your vehicle to the nearest garage partner. The surveyor from the insurance company will neatly assess the car and all you have to do is just sit back and relax!

Get your Claims Settled

After due evaluation, the authorized garage or service center will come up with a solution and the proper timeline of the repair to be agreed upon by all parties. The insurance company will receive the bill from the garage, and it is their responsibility to get it settled. Any difference or copayment amount is the only charges that you are liable to pay. Only if you got your insurance company involved and intimated in the first place, the claim settlement process will run smooth. Right from the start to finish, the insurance company will be hand in hand without you and make the resolution of the claim quickly.

As seen, making a claim is a straightforward and easy process. Your insurance providers have set up their customer service department for a hassle-free settlement process. Moreover, opting for a cashless claim service with the authorized garage will save you from unnecessary payments and enable you to get the trusted service that is the best for your car.

If you do intimate the insurance company right away, the claim settlement process can take longer and will lead you to make out of pocket payments.

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Why does claim settlement ratio matter?

by Vinaya HS on May 27, 2016

in Finance

The following post is a sponsored post.

There are many factors that help consumers choose the right insurance policy. One of the most important among them is the claim settlement ratio. This is a term most people find difficult to understand. The purpose of this article is to help people understand claim settlement ratio better so that they can choose the most ideal insurance policy.

What exactly is claim settlement ratio?

Claim settlement ratio indicates the total count of death claims settled by a life insurance provider. The claim settlement ratio is arrived at by taking the total number of settled claims as a percentage of the total number of death claims received.


Let us use an example to understand this concept better. Let us assume an insurance provider received 1000 death claims. Let us also assume the provider settled 920 of these claims. The claim settlement ratio will be 92%. Ideally, you should look for a provider who offers a consistent claim settlement ratio above 90%.

Why is claim settlement ratio important?

Claim settlement ratio provides a glimpse into the insurance provider’s reliability in settling claims. It helps you understand how willing the insurance provider is to part with money in times of crisis in the future.

A couple of insurance providers are notorious for holding back payouts by providing flimsy excuses. They either state that the claim isn’t genuine or the personal data provided by the consumer isn’t right. Explore different insurance plans and make queries about each provider’s claim settlement ratio. Use their insights to choose the right plan.

Duration and consistency of claim settlements

It is also important to understand the average duration for settling a claim. A lot of reputed insurance providers settle claims within 30 days. You should also give importance to consistency. Claim settlement ratios vary from year to year. Make sure you study different ratios before purchasing a policy.

Choosing an online life insurance policy

A lot of insurance providers allow consumers to purchase policies online. The process is simple, quick and efficient. Count on this article and use claim settlement ratio to pick the right policy. Explore various options online before choosing the right policy. You could opt for a term plan that offers maximum benefits for your family.

You will then be able to safeguard your future while providing loved ones with financial solace when there is an unfortunate casualty or accident.

All the best in choosing the right insurance for your needs!

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Tips To Finance a Used Car

by Vinaya HS on May 23, 2016

in Finance

The following post is a sponsored post.

Purchasing a new car is the second most important investment an individual may make, next to buying a home. Some may not be in a financial position to purchase a new car and hence decide to buy a used car. However, getting a used car loan is much different than getting a loan for a new car. Lenders tend to disapprove loans for car which have crossed 4-5 years. Besides, the rate of interest charged on the loan is higher compared to new car loans.

Follow the below-mentioned tips to finance a used car.

Improve your credit score

Most banks check your credit score before approving a used car loan. This is the first hurdle while shopping for auto loans with competitive rates. If your credit score is low, take measures to improve it. Make regular payments in a timely manner. Keep low balances on credit cards and pay off pending debts.

If your credit score is not high enough to get an approval, seek the help of a co-signor. A co-signor with a good credit score can land a low-interest loan.

Research well

Different lenders have different rates for used vehicle loans. Usually rates on used car loans is 4-6% higher than new cars. Hence, research the rates well and solicit quotes from several lenders before deciding on a particular lender. It may also be worth buying a different used car to the one you first found if the finance option unavailable is unattractive.

Take a short-term loan

The term for repayment of a used car loan should ideally be short-term. The main reason for a shorter term is the rapidly decreasing value of the car. At the end of the loan tenure, the worth of the asset may be lower than the amount paid. Besides, shortening the term of the loan will ultimately help you save money.

Make a larger down payment

Based on your budget, see what percentage of the car’s purchase price works best as a down payment. A smaller amount will result in larger monthly installments or an extended loan tenure. Instead, make an approximate 20% down payment as it allows you to choose a shorter finance term and help you save money in interest charges.

Apply for finance through a used car dealer

Most dealers finance any used car they sell, regardless of its age. Hence, chances of a loan getting approved by a used car dealer is greater than that of a direct loan lender. However, rates of interest offered by dealers are greater than interest rates of direct loan lenders. Hence, applying for a direct loan should be your first choice.

Make smart negotiations

Negotiate the price of the car if your research states that you are not being offered a fair price. Go through the list of fees associated with the deal to ensure you are not paying unnecessary costs. Once the deal is closed, refuse any extra add-ons like extended warranty, car accessories, etc. You can always purchase the extras later after you have researched pricing.

Used car market in India is growing rapidly along with the growth of new car market. Savings made on purchasing a used car can be substantial given that a car’s value drops in the very first year when it’s on road. Always research various used vehicle loan options before finalizing on a particular lender. Beware of scams and unwelcomed surprises like hidden terms and conditions in the loan agreement.

Know more about used car loans and their interest rates at Mahindra Finance.

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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There is no greater fear in my mind than thinking about a cheque bouncing or overdrawing my bank account. In addition to the potential embarrassment, such instances are penalized with extra charges that are levied due to inadequate balance in an account. In certain instances, cheque bouncing may invite legal proceedings and penalties more severe than monetary fines.

Normally, I ensure that adequate funds are maintained in my bank account to prevent any unpleasant incidents or inconvenience. However, I recently had to pay several bills, over and above the usual utility payments, because I just completed my higher education and have commenced repaying my student loan. This resulted in the balance in my bank account falling dangerously low, which is something that I am extremely uncomfortable with.

To further add to my stressful situation, I have relocated, resulting in additional unplanned expenditure. After spending weeks looking for an apartment, I found the one that was most appropriate. It was right in terms of its location, price and amenities to suit my budget, while conforming to my current standard of living. After discussing with the owner, I was ready to take the apartment.

As is the practice, most rental apartments require a certain amount as a security deposit before you can move into the home. The apartment that I was planning to rent required a deposit equivalent to six months’ rent, which is a significant amount. As I was carrying my cheque book, I started writing out the cheque. I was halfway through when a thought came to my mind; “Do I have sufficient funds in my account to ensure that the cheque will clear?”

Just when I was getting nervous and panicking, I remembered that I had successfully completed the mobile banking registration process of Kotak Mahindra Bank. This meant that getting my account balance and viewing the activity was at my fingertips. I pulled out my phone and logged into my account and checked my balance in less than 30 seconds.

Fortunately, using the mobile banking app I was assured of having sufficient balance in the account to ensure that the cheque towards the security deposit would be cleared. As a working professional, it isn’t always feasible for me to visit a branch for every financial transaction. With mobile banking app, I no longer need to take time off during my working hours as every service is available at my fingertips.

What’s even more impressive is that most mobile banking apps can now be used to do a lot more than to simply view your account balance or statements. With a mobile app you can also transfer funds without adding beneficiaries, pay credit card bills, schedule automated bill payments to registered billers, and more. Some banking apps go even further, allowing you to send funds to your friends and relatives, book movie & travel tickets and make hotel bookings

Although this was not the first time that I used mobile banking, this particular experience was a defining moment that convinced me about the merits of mobile banking. If I could depend on mobile banking when I was in a state of panic, I see no reason why I should not depend on it at all other times.

Author Bio:

Tejas Kunder is an independent blogger and writing has been his passion for a long time. A journalism grad, he loves exploring the world of sports, health, lifestyle and travel. When he’s not writing, he’s out on his bike discovering new places, apart from that he loves listening to music and catching up on the latest flick.

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Insurance Health Premium Rise in 2016

by Vinaya HS on May 23, 2016

in Finance

The following post is a sponsored post.

The healthcare industry in India is emerging at a rapid pace. It is now developing as a tool to manage the financial needs of people who seek health services. Individuals seeking healthcare insurance pay premiums and are insured for any surgical or medical expenses incurred by them. However, due to inflation and other factors, healthcare providers are passing on the ever-increasing costs to the policyholders.

Reasons for the increasing costs of health insurance premiums are:

Policyholder’s age

Age is an important contributor to health insurance rates. The cost of premiums is generally lesser for youngsters as compared to older policyholders. This is due to the fact that young people have fewer and less diagnosed health problems, and hence are less likely to develop any health issues. So much so, that some insurers do not provide health coverage if you have crossed a particular age.

Family history

The premium charged may be higher for those individuals who have a family history of diseases or ailments. If your family members are diagnosed with a serious illness, there is a high probability of you developing the disease. In such a case, the insurer may either charge a higher premium or may exclude that particular condition from the cover.

Increase in chronic conditions

Individuals suffering from chronic conditions are vulnerable to the increasing out-of-pocket medical spending. The number of people suffering from chronic conditions like heart problems, cancer, diabetes, high blood pressure and stroke is on the rise. In such a scenario, choose a plan that meets your needs, in order to escape higher premiums. Calculate the premium payable using a health insurance calculator to avoid extra payments.

Medical inflation

According to a recent study, the healthcare inflation in India is almost 20% higher as compared to the overall inflation of 8-9% in the past few years. In spite of technological advancements, the cost of medical equipment and robotics is soaring, the cost of which is then passed on to the patients. Also, the shortage of good doctors and surgeons create a demand-supply gap which in turn, increases costs.

The amount insurers pay vs. the amount they receive

Over the years, the amount paid as claims has risen at a higher rate as compared to the premiums received. Hence, insurers adjust their tariffs in order to fill the high healthcare costs and the premiums received. They cannot indefinitely cover the difference using their reserves. Ultimately it’s the policyholders who have the bear the brunt of shelling out more. 

Demographic of those insured by the insurance company

Demographic factors like gender, marital status, profession, etc. affect the healthcare costs. Women usually pay higher than men for three reasons, according to experts: frequent visitation to the doctor, prescriptions and subject to certain chronic diseases. The nature of an individual’s job also affects premium costs. Policyholders exposed to harmful chemicals have a greater risk of contracting any illness. Also, people working in sedentary professions have an increased risk of getting a cardiovascular disease.

Other factors

High physician fees, increasing administrative costs, expensive drugs and procedures are some other factors that may result in higher health costs. Also, insurers may charge you a higher premium if you are purchasing insurance for the first time.

How Can You Calculate Your Premium?

It is important to be smart while making a choice about a health insurance plan. In order to avoid unwanted spending, you may adjust your health coverage. Calculate the premium payable using a mediclaim premium calculator. It helps to compare plans of different insurance companies on a single platform. A health premium insurance calculator also helps you get quotes efficiently, unveils good plan options and assists in purchasing the best health plan. It’s all about knowing how to put a curb to rising premiums and staying safe.

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 Benefits of a Term Deposit Account

by Vinaya HS on April 24, 2016

in Finance

The following post is a sponsored post.

As indicated by the name, fixed or term deposits have a pre-determined tenure and interest rate for the principal amount invested in these accounts. The primary objective of fixed deposits is to help investors mobilize investible surplus and earn a higher interest rate.

In addition, these kinds of deposits are safer investment avenues because the maturity amount is fixed at the time of opening the account. This means that investors are safeguarded against market fluctuations or interest rate changes. Compared to a regular savings account, returns on fixed deposits are higher making these an excellent investment option.


Benefits of Term Deposit

1. Lock-in period – A term deposit cannot be withdrawn until maturity. If you need to close this account before the end of the term, you will have to incur certain penalties. This discourages premature withdrawals and encourages individuals to save, while also helping with accurate financial planning.

2. Higher returns – Instead of leaving the surplus in your savings bank account, this amount can be transferred into a term deposit. This allows you to earn a higher rate of interest on the surplus amount, which can be a step towards making your money work for you.

3. Safe investment – The interest rate is determined at the time of opening the account, which means that irrespective of any changes to market rates, you are assured of receiving the predetermined maturity amount. The bank deposit interest rates vary from one institution to another, so it is advisable to check these before opening your term deposit.

4. Meet financial goals – Because you are aware of the exact amount you will receive on maturity when you apply for term deposits, you are able to plan your finances in very precise manner. These investment avenues can be useful in meeting medium to long-term financial objectives.

5. Flexibility – You can choose to receive the interest on term deposits at their preferred time intervals. You can opt for monthly or annual payout or decide to withdraw the entire amount on maturity.

6. Variable duration – These deposits can be opened for a minimum of 7 days or for a maximum of 10 years. This means that you can enjoy great flexibility in the duration of investments, based on personal needs and preferences.

7. Multiple accounts – There is no limitation on the number of deposit accounts that you can open. You can setup new accounts each time you have an investible surplus to help grow your wealth and meet future financial goals.

Term deposits earn interest with a compounding effect on the initial principal invested. This entire amount enjoys compounding interest benefits during the entire duration of the deposit, which makes it a lucrative investment option. In addition, investors can avail loans against their deposits, which give them the choice to avoid closing the deposit before its maturity – an act that normally entails severe penalties. Loans are available between 70% and 90% of the deposit value that can be used to meet emergency fund requirements.

With all of these benefits and features, it should be fairly obvious that bank deposits are an excellent option for investors who want to earn higher returns on their investible surplus.

Author Box:

Tejas Kunder is an independent blogger and writing has been his passion for a long time. A journalism grad, he loves exploring the world of sports, health, lifestyle and travel. When he’s not writing, he’s out on his bike discovering new places, apart from that he loves listening to music and catching up on the latest flick.

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How to Get Affordable Used Car Loans?

by Vinaya HS on April 19, 2016

in Finance

The following post is a sponsored post.

The demand for used vehicles and finance for these pre-owned cars has grown tremendously in India, making it one of the largest markets of its kind in the world. With increased disposable income and a growing upper-middle class, many people intend to purchase cars, but prefer to opt for used vehicles that can come for half the price.

Manufacturers and automobile dealers have caught on to the trend and many offer used vehicles with warranty coverage, as well as regular maintenance offers. You should consider all of these factors when planning to purchase a car. Securing a loan for such a purchase is also much easier today, as many lenders offer financing for used cars, because of their increasing demand.

Used car loans differ from new auto loans, as various factors need to be considered, while working out the financial intricacies of the loan. To make sure that you get an affordable used car loan, you need to consider the following:

1. Make sure of your loan eligibility

Salaried applicants must be at least 18 years old and a self-employed borrower must be 21 years. The maximum age of the applicant on loan maturity cannot exceed 60 years (salaried) and 70 years (self-employed). Salaried borrowers must be working at their present company for at least one year, while self-employed applicants must be in business for a minimum of 2 years.

2. Documents that you need to have

When availing a used car loan you will need to submit documentation for address and identity proof. Salaried applicants must provide the latest salary slip along with Form 16 for proof of income, while self-employed applicants must submit copy of their latest income tax returns.

3. Choose the type and model of the car

Applicants must choose the type and model of the vehicle as per their personal needs and financial situation. Most lenders take into account the age of the vehicle before approving the loan. Avoid purchasing a care that is very old to make it easier to get a used vehicle loan. Age of the vehicle will also affect maintenance costs.

4. Determine the amount

After choosing a vehicle, you need to determine the amount you will have to pay. If you are able to make a substantial payment towards your purchase, you can avail a smaller loan amount with affordable installments.

5. Set your requirement

Having understood the loan amount, you must calculate the tenure and the monthly installment. This will mainly depend on your income and calculation of future expenses.

6. Research the different options

Several institutions, such as banks and non-banking finance companies offer used vehicle loans. You can use an online calculator to research the different options and compare these to find the most affordable option

Applicants need to remember that the lenders will send an evaluator to analyze the condition of the vehicle. The lender will also assess the market price for the shortlisted vehicle before taking the final call on the loan amount and the other related terms and conditions.

The interest rate on used vehicle funding is higher as compared to loans for new automobiles. You need to analyze the higher cost before you apply for a loan to ensure you do not face any financial difficulty on account of the loan repayment.

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

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