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 Lock-in period – A term deposit cannot be withdrawn until maturity.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.

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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Should You Increase Your Life Cover?

by Vinaya HS on March 12, 2016

in Finance

The following post is a sponsored post.

Buying life cover is one of the most important decisions of an individual’s life. In the Indian market, companies provide two kinds of covers namely term plans and non-term plans. The second type of plans are also known as money-back policies or endowment plans.

While most experts recommend acquiring term plans due to their affordability and higher coverage, buying non-term plans must also be considered. Deciding the kind of cover to acquire is only the first question. The larger decision is determining how much life insurance is needed to cover all kinds of possibilities. Most people have the tendency to acquire lesser coverage to save premium costs. Continuously reviewing the coverage and making necessary modifications when major events happen in your life is crucial.

Wedding

When you first start working, you have no liabilities and responsibilities, which means lower life insurance is sufficient. But when you marry, there is an instant increase in your responsibilities and you need provision for the adequate care of your spouse. At this stage, reassessing the insurance coverage need and increasing it to ensure that your partner receives sufficient money to live comfortably in case of any eventuality is important.

Child birth

The birth of a baby is one of the most important events that occur in the life of any individual. Providing a comfortable and good upbringing to the child is your responsibility. Securing his or her future by making adequate provisions for their education and marriage later in life through insurance plans must be considered.

Major debt

One of the biggest debt burdens you will assume in your life is purchasing your dream house. Having procured home mortgage to purchase your home, it is now your responsibility to ensure it remains with your loved ones in case of any untoward incident. Most lending institutions now insist on insurance coverage to protect such mortgage loans. In case something happens to you, it is important to prevent your family being harassed by your lenders and in a worst case scenario; being evicted from the house. This is when you need to reassess your insurance coverage and increase it to meet any such eventuality.

Having understood some instances when increasing the coverage is crucial the important question remains on how much to increase. Additionally, you need to decide between term life insurance and non-term plans. Finding answers to such questions is no easy task. A recommended and much used option is for people to take the help of comparative websites to make an intelligent comparison among different policy offerings to make the right choice.

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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A fixed deposit (FD) is an investment avenue through which investors deposit a certain sum for a specified period of time. The financial institution or the bank agrees to pay interest on the invested amount at the end of the specified period.

This instrument has been a favorite avenue for people looking to increase their savings. However, newer options like equities, mutual funds, and real estate have gained more popularity, especially among younger investors because there is a greater possibility of earning higher returns. Nonetheless, FDs remain popular as an investment avenue for many individuals.

Features of FDs

  • Safe investments and regulated by the Reserve Bank of India
  • Higher interest rates in comparison to savings bank accounts
  • Money can be invested only once and remains locked-in for the specified duration
  • Premature withdrawal from the FDs entails a penalty
  • Interest rates vary from one institution to another
  • Senior investors can enjoy higher fixed deposit interest rates
  • Interest income on fixed deposits is taxable if the amount exceeds the exemption limit
  • Investors can make higher returns if the interest is reinvested

Why Invest in FDs?

Save taxes

Many investors choose to invest in FDs to save their income tax liabilities. The interest on the FDs can be beneficial in saving a significant amount as taxes, as per the Income Tax Act. Investors are advised to calculate their returns, based on their income tax slab in order to better plan their finances.

Fixed returns

The returns, made from the compounding effect of these deposits, provide more benefits to investors. Moreover, individuals know the exact amount they will receive on maturity, which is an excellent way to plan their finances. It is advisable to use this instrument to meet certain financial goals that have a fixed date.

Credit enhancements

Financial institutions provide secured credit cards, loans, and top-up facilities on existing loans against your FDs. When these credit facilities are used in a prudent and efficient manner, they can help investors significantly improve their credit scores. This proves to be even more beneficial in the long run.

Meet financial emergencies

Several institutions allow investors to partially withdraw the amount from their FD accounts for a certain fee. Individuals can also prematurely take out the FD amounts. This flexibility ensures that investors do not have to feel stressed in case certain emergencies arise.

Security

Investors can be assured of receiving their entire investments based on the fixed deposit rates on maturity, irrespective of economic or other circumstances. The returns do not depend on market fluctuations and are not affected by the downward movement of interest rates. Therefore, FDs are a safe and secure investment vehicle, especially for investors who are nearing their retirement ages.

Documents Needed for Opening an FD

These deposits can be opened by individual, business, or institutional investors. Most service providers require identity proof along with address proof, when opening an FD. Some of the acceptable documents include PAN card, voter ID, utility bills, driving license, and passport.

FDs offer a convenient and safe investment avenue, where the capital is at no risk and investors can earn decent returns on their investments. There are several institutions that offer different kinds of deposits and it would help to check these out before making a final decision.

Click here to know more about fixed deposit and their interest rates.

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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5 Health Insurance Resolutions For 2016

by Vinaya HS on February 19, 2016

in Finance

The following post is a sponsored post.

This New Year’s, your resolution may vary from quitting smoking, shedding some pounds, earning more money or finding the love of your life. Nowhere among these does health insurance fit, it’s not the most sought after New Year’s resolution but a necessary one. As soon as you notice the stupendous increase in the cost of health care, you may want to save up for health insurance. You need this insurance because any illness or accident may occur anytime and a health insurance is the only source that is going to save you from a hefty medical bill. Following are some medical insurance plans you need to focus on this year –

Early Bloomer

Don’t have a bad attitude about health insurance and think that it’s not required at the current moment and you may invest in it later. Purchase a basic health insurance as soon as possible, buying health insurance at an early age results in less insurance paid compared to when you’re older. Starting early will help you jump over age related restrictions that are required and it will result in fewer premiums paid.

Evaluation

Initiate the process by asking yourself ‘How much cover do I need?’ This is essential due to the rising medical costs calculating the right sum needed saves a lot of money. While evaluating keep in mind to consider factors such as age, pre-existing diseases, gender, individual’s medical history etc. These factors will assist you in determining the right amount required for you and your family.

Research

Always research about the policies and consider all the options available, be an informed customer. Make it a habit to learn about every aspect of the product such as claims process, exclusives and inclusive, long-term benefits, co-payment etc. It is extremely vital to learn about the varied options available in the market.

Beware of cheap products

There will always be a company offering health insurance at a cheaper rate, however though the cheapest is not always the best. There will definitely be some hidden anomalies that are not revealed, you’ve to identify that. Be smart and always know the ‘catch’ in cheaper policies.

Rely on transparency

Your end goal of applying for a health insurance policy is to avail the claimed amount during need. For this to happen you’ve to be completely honest with the company about all of your information including medical background and pre-existing diseases. Ensure that there are no loopholes and everything is transparent. If the company finds that you’ve been misguiding them in certain aspects, you may end up losing your health insurance policy for good.

There are several companies offering health insurance policies in India. Opt for one by following the aforementioned pointers.

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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Impact of Age on Life Insurance

by Vinaya HS on February 19, 2016

in Finance

The following post is a sponsored post.

Most people do not expect to die at a young age. However, there are many cases when such an incidence actually occurs. A premature death of your loved one can leave you in great financial difficulty sometimes with huge debt liabilities. Repaying these obligations may be impossible, which can result in you losing all your assets to lenders.

To prevent such harsh outcomes, it is crucial to procure insurance cover on your life. This is the best way to protect the financial interest of your family members in the event of your premature demise. The carriers consider many factors while calculating the premium on such policies. Some of these are in your control but certain factors like age cannot be controlled by you.

Know about your insurance age

It is a commonly known fact that as your age increases, so does your life insurance policy premium. This is because the premiums are directly proportionate to life expectancy and as you age, the life expectancy decreases thereby increasing the premium amount. It is also beneficial to know that women are expected to live at least five years longer than men, which is why a woman of the same age as that of a man will have to pay a lower premium.

Insurance age is your age within your policy if you make an application today. Although this appears simple, it is not so easy to state your exact age. Insurance age may be different for every insurance company. Since life insurance relies on statistics, the carriers work with “the nearest age” principle to determine the premium. This means if your birthday was more than six months ago, the carrier will consider your age one year higher than your current age. Every year the amount increases because you approach the life expectancy age.

Risk assessment factor
Age can be easily defined, is simple to verify, and can be predicted over a period of time. This factor is the basis of calculating the mortality risk, which is why it plays a crucial role in determining the life insurance premium. Additionally, your age will help in determining the possibility of suffering from any kind of medical ailments. Several studies and statistics prove that this possibility significantly increases as you grow older.

To save money on the premium, it is advisable to purchase life insurance cover before your next birthday. Additionally, it will be helpful in saving some money if you check with two or three insurance companies before acquiring a policy. Taking help from an experienced and knowledgeable independent agent (who works with multiple carriers) to find the best policy at the lowest possible rates.

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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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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The following post is a sponsored post.

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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