Insurance Archives -

How Married Couples Should Buy a Health Insurance?

Tue, 20 Jun 2023 16:11:14 +0000

The Buy Desk

If you are getting married soon or have married just recently, you must consider investing in a health insurance policy that provides maternity benefits. Although you are not legally bound to port your health insurance post-marriage, it will assist you in getting coverage for your and your growing family’s future requirements.

Why Married Couples Should Have Health Insurance?

No one knows when they have to deal with unexpected medical emergencies. To successfully meet those emergencies without breaking the bank, health insurance comes to the rescue. The main reason couples need to have a health insurance plan after marriage is to effortlessly cover the cost of medical expenses. It will help you prevent catastrophic financial costs.

Which Health Insurance Policy Should Married Couple Buy?

Nowadays, multiple health insurance plans are available in the market with excellent maternity coverage. If you are already covered under any corporate health insurance policy, you can consider buying a personal health insurance cover of at least 10 lakh sum insured. Let’s discuss some of the best ways to buy a health insurance plan after marriage–

Family floater scheme

You may go for a family floater plan that consists of a simple documentation process. Buy a family floater plan or include your wife if you have already purchased it. As per this scheme, your wife will be included under the coverage of your family-floater insurance plan. The inclusion can be done immediately after marriage or upon your policy renewal.

Based on your health insurance providing company, this may overrule the previous coverage under pre-determined T&Cs (terms and conditions). If you have an individual plan and your wife financially relies on you then you must include her in your plan. You will get tax deductions on your paid premiums.

Continue or port the plan

If your wife is financially independent and has her own health insurance policy, she can either port the plan to another individual policy with her new married name or continue with the existing plan by changing the maiden name via endorsement.

Options for wives for their husbands

If you have been covered under a health insurance policy before marriage, change that plan to a family floater plan with your spouse included in the policy coverage. However, if your partner already has a separate individual plan, continue with your existing plan with a changed name.

If you have purchased a family floater plan for your parents before marriage, add your husband in the plan after marriage excluding your parents. Another option is to purchase another family floater plan with you and your husband in the coverage while continuing the existing one. Just be sure that you inform both insurance providers so that a proportionate claim would be paid by both providers during a claim.

Options for a married couple

If any of the partners was not covered under any insurance cover, buy a new individual health insurance cover irrespective of if there is an already family-floater scheme post marriage. You may get two separate individual insurance plans for both of you.

If the wife is financially dependent on her husband, the husband can be the proposer in both individual plans, and vice-versa. Other than this, the wife can be a proposer in her policy and the husband in his policy in case they both are financially reliant. Note that this may increase the payable premium and the amount to be invested in the plan. Alongside two separate individual plans, married couples can consider buying a family floater plan with coverage of both of them in a single plan. The husband or a wife could be the proposer given that the proposer is financially independent.

Whether or not you and your partner need health insurance is completely your personal decision. Make this decision based on your financial condition and other essential parameters. However, it is recommended to compare multiple policies before buying a specific one. Go through the inclusions and exclusions and associated terms and conditions before purchasing a policy.

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What is a Restoration Benefit in Health Insurance?

Mon, 19 Jun 2023 16:24:04 +0000

The Buyt Desk

After the COVID-19 pandemic, almost every person has understood the significance of buying a health insurance policy. Having adequate health coverage is equally important. Given the increasing medical inflation, an insufficient sum insured could land you in a financial mess. To stay safe from this situation, restoration benefit assists a lot. It provides additional protection against unforeseen medical crises.

What is Restoration Benefit in Health Insurance?

Generally known as the refill benefit, the restoration benefit refers to the benefit wherein the insurance company restores the sum insured by a policyholder up to the maximum limit after it gets completely exhausted after a claim for any treatment.

This benefit is provided for individuals and their families under health insurance plans. You can use this benefit as your backup plan or an add-on cover to your current insurance plan. You’ll have to pay a higher premium for restoration benefits with your health insurance.

For example, an individual has purchased a health insurance plan of INR 5 lakhs with restoration benefits. The whole sum insured gets exhausted from his heart surgery. Now, after some months, he had to undergo cancer surgery costing about INR 4 lakhs. He doesn’t need to arrange funds from other sources as the entire expenses get covered in his health policy by restoring the original sum insured of INR 5 lakhs.

Types of Restoration Benefit

There are two major types of restoration benefits based on the level of exhaustion of the sum insured –

Partial exhaustion

This restoration benefit comes into force when the partial sum insured is exhausted. Go with this benefit only when it is proven highly beneficial.

Complete exhaustion

This restoration benefit comes into play when the whole sum insured is exhausted. This benefit comes with most health insurance policies.

Benefits of Restoration Benefits in Health Insurance

Purchasing a health insurance plan with a restoration benefit provides numerous advantages –

Get the complete amount of your sum insured reinstated as soon as the original sum insured expires.
It provides more financial efficiency than purchasing a health plan with twice the sum insured.
This benefit will cover you against several medical costs for different illnesses within the same year.
You would not need to worry about future medical expenses even when your original sum insured has already been exhausted. The required amount can be restored for any unexpected medical emergencies or needs in the future.

Who can Buy Health Insurance Policy with Restoration Benefits?

Older individuals who have more possibility to develop health conditions should opt for restoration benefits. People who are susceptible to some illnesses should also consider this benefit to get the treatment done without worrying about medical cover getting exhausted. Alongside them, people living in metropolitan cities or high-cost-of-living regions should opt for health insurance plans with restoration benefits.

Things to Consider When Buying a Health Insurance Plan with Restoration Benefit

You can buy the health insurance with restoration benefit as an add-on to your policy or health insurance premium while buying a new policy or renewing the pre-existing one. It will be available as a valuable add-on for individual and family floater plans. It means when any family member exhausts the base cover, other members can also take advantage of the cover.

Before opting for restoration benefits, consider the following points –

If you don’t use the restored sum insured in the year it was restored, it can’t be carried forward.
This benefit will be activated for unrelated medical issues.
You can opt for restoration benefits while purchasing an insurance policy with a nominal additional cost.
This benefit will not be applicable in your first insurance claim in a policy year. It will be available once the partial or complete sum insured is exhausted.
This benefit is meant just for future claims.
Only one family member can get the restoration benefit at a time.
Some policies might include the same health condition during a policy year while other policies allow the use of a restored sum insured by other family members for the same illness.

To enjoy all the advantages, thoroughly read the fine print of your policy with restoration benefits.

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5 Reasons That Can Lead to Term Insurance Claim Rejection

Fri, 26 May 2023 17:17:53 +0000

The Buyt Desk

How to ensure that the life insurance which you are buying for your family does not get rejected. It is disheartening to see families struggling after losing the breadwinner of the family. The term insurance that they had been counting on for years to address emergencies gets turned down by the company in the eleventh hour. The insurer rejected the claim, giving reasons hard to swallow.When this happens, we start blaming the insurance company and the entire service, but is the insurer always at fault, or are you accountable for it?

Many times insurance claim rejection happens because of the policyholder.People make mistakes while buying term insurance that lands them in such a situation. The 5 mistakes that can lead to claim rejection are as follows-

Concealment of Information – The most common mistake people make while buying a policy is that they get casual in providing relevant information to the insurer. Never do this!

Always be proactive in asking questions and providing information about your lifestyle, habits, health, etc. If you provide wrong information or if the provided information happens to be false, the insurance company has the right to reject your claim.

Non-payment of Premium – Paying the premium on time should always be on your priority list. Never postpone premium payment to the next date or month; otherwise, your policy will lapse, and a lapsed policy is unclaimable.

Insurance companies give some grace period to pay the premium, which varies from insurer to insurer, but on average, it remains between ten to fifteen days. Do not cross your premium due date.

Death Due to Excluded Clause – Excluded clauses are conditions which insurers do not entertain. If the policyholder happens to die because of any excluded clause, the insurer will not accept the claim. The best thing to do in this case is to carefully read the terms and conditions of insurance before taking it.

Non-Disclosure of Hazardous Activities – If you enjoy adventure and engage in hazardous activities, you should pick the insurance policy accordingly. However, if you have chosen the wrong insurance and happen to meet with an accident, the insurer might reject your claim.

Providing Wrong Information – If you provide false or misleading information about your health while applying for a policy, your claim might get rejected. For instance, if you have mentioned in detail that you don’t smoke, but later on, if the insurance company finds out you are a smoker, they may reject your claim.

Conclusion: Term insurance protects families in times of emergency.It is bought with the purpose to help the family as a means of income replacement. However, to avail of all its benefits, one must comply with the policy terms and conditions and provide accurate and relevant information while buying the policy.

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How Multi Year Health Policy Works?

Sat, 13 May 2023 14:45:43 +0000

The Buyt Desk

To meet health emergencies in India, the insurance market has noticed significant growth over the past years. In one of the latest reports, India is considered to be the 6th largest insurance market in the coming years. Health insurance is greatly supporting this rapid growth. The increase in the Indian health insurance market is making people realize its importance during medical emergencies. Before you buy any health insurance policy, you must know its inclusions and exclusions. If remembering the renewal date of your health insurance policy is a task then opt for a multi-year health insurance policy.

What is a multi-year health policy and how it works?

As the name indicates, this is a health insurance policy that will keep you covered for over one year (mainly a two or three-year policy term). These long-term policies provide coverage for an increased duration. Insurance companies provide this insurance policy to allow policyholders to pay the premium in one go while purchasing the policy. This helps them in enjoying the plan advantages for an extended period without worrying about renewing it every year as with a typical annual plan.

Benefits of buying a multi-year health insurance policy

Compared to traditional annual health insurance, multi-year health insurance provides a long-term alternative that is more economical and convenient. A multi-year insurance policy comes with several perks including the following –

Locking Premium

With multi-year health insurance, you’ll get a fixed premium for longer tenure.You pay the premium for all the years at one go. Hence,any kind of premium revision will not have an impact on your pocket.

Long-term policy discounts

Most insurance companies provide up to 10% discount on a multi-year health policy tenure of 2 years and up to 15% for a 3-year tenure. Since this policy comes with a lifelong renewal option, you’ll enjoy substantial amount savings in the long run.

No stress of annual policy renewal

Renewing a policy is no longer a challenging task today as there are so many digital policies and applications that ease this process. But, so many people are not able to renew their health insurance policies each year. Thanks to the multi-year policy that provides a one-time durable solution with no need for periodical renewal for the policy duration.

Annual tax benefits

According to Section 80D of the Income Tax Act, a policyholder gets a tax deduction of up to Rs 25,000 on the annual health policy premiums paid for themself, their spouse, and their kids. In a multi-year health policy, you can’t get the whole premium at once. You can get the tax benefits because a one-time paid premium will get proportionately divided.

Less maintenance

An annual health policy needs to renew annually. So, a policyholder has to renew it every year to keep the plan active. Ignoring this need will result in policy lapse and losing several benefits. A multi-year health insurance plan, on the other hand, provides constant coverage without any hassle and stress of maintenance.

Easier EMI

Just like an annual health insurance plan, policyholders of a multi-year health insurance policy can pay the premium in easier installments at their convenience. This helps in avoiding the need to arrange the premium amount for a specified duration in one go. You can decide to pay the premium amount in quarterly, annual, monthly, and semi-annual installments.

Who can get the multi year health policy?

The coverage nature remains the same for annual health and multi-year health insurance plans. However, you can consider purchasing a multi-year health policy if you wish to prevent the need for annual renewals of policies while saving on your premiums. A multi-year policy is the right choice if you don’t want your plan to lapse or result in heavy penalties.

You can purchase a multi-year health insurance policy after choosing the best plan according to your requirements. Compare multiple similar plans to choose the right one. Select a comprehensive plan having a high sum insured to enjoy better protection.

Although this policy has numerous benefits, experts recommend carefully going through all the essential documents and terms and conditions (T&Cs) to get aware of all inclusions and exclusions. This will help you in preventing last-minute surprises while claiming settlement during any medical emergency.

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How To Review Your Insurance Requirement?

Tue, 09 May 2023 17:04:33 +0000

The Buyt Desk

We live in an unpredictable enviornment and thus a life insurance becomes a must have investment. But merely buying insurance is not enough. Since nothing remains same in the life, it is essential to review your insurance policy regularly. Big events like purchasing a home, a child’s education, marriage, and others can impact your finances. Reviewing your insurance policy will help you in ensuring that your beneficiaries will get enough coverage for their future financial responsibility.

The best way to review insurance policies is to create a one-page summary separately for all policies you have. In most plans, you’ll find a page in front of the contract – a declaration page or policy summary. You’ll get most of the required details here to review your insurance.

Basic things to include in your insurance review

Let’s jump ahead over some important things you must include in your summary page for an insurance review.

Type of insurance plan

Figures out exactly what type of insurance policy you want. For example, auto insurance, health insurance, long-term care insurance, etc. Before you review or summarize an insurance policy, figure out the type of plan you require i.e. universal life, term life, variable life, or whole life.

Policy number

When you call and ask some crucial questions regarding your insurance policy, you will require to remember your correct policy number.

Insurance carrier

To know everything about the company that gives the insurance, it is good to track customer service numbers on which you can call or other vital contact details for an insurance agent.

Date issued

Note down the date on which your insurance policy was issued. Most policies just cover a specific duration. After that, your insurance coverage may lapse or you might have to renew the particular plan. The renewal process might take place automatically if you’ve a bank account linked to your payment. If that would be the case, you must be aware of when you can expect that change.

Understanding the issued date is important as permanent insurance will have a particular surrender charge that would apply once you cancel the plan in starting 5-20 years.

Insured

Determine who the insurance benefits apply to like you, your dependent kids, or your life partner based on the insurance type.

Premium required

Keep a complete record of the premium you pay and how frequently it is paid.

Beneficiary

A person you designate to get the benefits of your policy when you are not there is known as a beneficiary. Many insurance policies like life insurance policies are designed mainly for beneficiaries not highly for the policyholder. If you want, you can change the beneficiary by reaching your insurance company.

How to review life insurance requirements?

Review your life insurance plan at least once a year. Your present policy will possibly remain the same if there have been no big life-changing events over the last 1 year. A yearly review helps in making current coverage changes and analyzing them in the context of your future plans.

Evaluate coverage requirements after big life-changing events

A child’s admission to a college, the birth of a grandchild, and taking care of an ill parent are some life-changing events that could disturb your savings. Your life coverage requires some modifications no matter whether the events in your life produce less or more income.

Keep into account whether to get higher coverage or direct your amount to profitable investments. Immediately inform your financial advisor or an insurance agent about the possible major life change events and determine the effective ways for current life insurance plan modifications to meet your changed financial requirements.

Consider these factors while reviewing your insurance plan

Financial responsibilities

The financial responsibilities increase with the passage of time. You may have to pay the bills for the healthcare cost of the family, schooling, and education for children, and more expenses. Thus, it is significantly important to extend your life insurance coverage to cover the financial burden.

Debts

A single and young individual has some big investments. With the flow of time, you might have to take on a mortgage to purchase a house and borrow capital for a business startup. So, it is highly recommended to timely upgrade your insurance policy and add debt cover when borrowings increase.

Add-ons

Some urgent illness cover and waiver of premium are some add-ons you could keep in your account. If you get a critical ailment, it could be financially damaging.

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5 Reasons That Can Lead to Term Insurance Claim Rejection

Mon, 01 May 2023 18:07:31 +0000

The Buyt Desk

It can be very tough for families to learn that the term insurance that they have been counting on for years to address emergencies has turned out futile. The insurer rejected the claim, giving reasons hard to swallow. When this happens, we start blaming the insurer and the entire service, but is the insurer at fault, or are you accountable for it?

It has come to notice that most of the time, insurance claim rejection happens because of the policyholder’s fault. Policyholders make many mistakes while buying term insurance that lands them in such a situation. Learn from the 5 mistakes that can lead to insurance rejection.

1. Concealment of Information

Despite having numerous terms and conditions, term insurance plans are an integral part of your financial planning. It can come to your rescue when financial assistance is needed the most. But your carelessness can put you in trouble. The most common mistake people make while buying a policy is that they get casual in providing relevant information to the insurer. Never do this!

2. Non-payment of Premium

Timely payment of premiums is very important. Never postpone premium payment to the next date or month; otherwise, your policy will lapse, and a lapsed policy is unclaimable. Insurance companies give some grace period to pay the premium, which varies from insurer to insurer, but on average, it remains between ten to fifteen days. Do not cross your premium due date.

3. Death Due to Excluded Clause

Excluded clauses are conditions that insurers do not entertain. If the policyholder happens to die because of any excluded clause, the insurer will not accept the claim. The best thing to do in this case is to carefully read the terms and conditions of insurance before taking it.

4. Non-Disclosure of Hazardous Activities

If you enjoy adventure and engage in hazardous activities, you should pick the insurance policy accordingly. However, if you have chosen the wrong insurance and happen to meet with an accident, the insurer might reject your claim.

5. Providing Wrong Information

If you provide false or misleading information about your health while applying for a policy, your claim might get rejected. For instance, if you have mentioned in detail that you don’t smoke, but later on, if the insurance company finds out you are a smoker, they may reject your claim.

Conclusion: Term insurance protects families in times of emergency, and nothing is better than it. However, to avail of all its benefits, one must comply with the policy terms and conditions and provide accurate and relevant information while buying the policy.

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7 Things That You Must Look At While Buying A Life Insurance

Mon, 17 Apr 2023 18:08:02 +0000

The Buyt Desk

Life insurance is an important aspect of financial planning and is essential for your family’s financial security. It is a contract between a policy buyer and the insurance company to pay a lump sum amount of money to the nominees of the policyholder if he/she dies. In exchange, the policyholder pays a regular premium for the policy. This is how you buy financial security for your dependents.

Here we have listed some tips for buying an insurance policy.

Confirm if you really need a life insurance policy

Life insurance is important but it is not mandatory for every person. You can apply for any plan if you’re in any of the following situations.

Someone is financially dependent on you and needs financial support for his or her financial needs after your demise.
You are the only breadwinner in your family and wish to secure the future of your family.
You want to cover the investments for your funeral and burial at least so that you don’t need to lose your assets for your legacy and heirs.
Your estate would not have sufficient liquid assets to protect debt and taxes, eroding the legacy you have planned.

If you are not in any of these situations and are an unmarried person with no one financially depending on you, it’s not necessary to opt for life insurance.

Select the type of insurance

Determine which type of insurance you require.

Term life insurance is the right choice if you believe that you will have considerable savings to help your loved ones after your term ends. This insurance policy expires after a certain period such as 5 years, 10 years, 15, or 20 years. After the expiry date, you will have to purchase a new policy.
If you want insurance cover not for a specific period but for the entire surviving years of life then whole life insurance can be a plan to look at.
There are insurances that are clubbed with an investment like unit-linked insurance plan

Determine how much coverage you need

This one is the most confusing process of buying life insurance but important as well. Decide on the investments you wish to be covered after your demise. For example, college tuition, mortgage, funeral expenses, and different types of debts.

There is no benefit in purchasing a policy with low coverage if your family doesn’t get enough support to sustain their current lifestyle as they live at present time with your current earning. Income replacement is also significant if your better half requires cash flow but is not in a condition to give it on their own.

Finalize your financial goals

The main purpose of getting life insurance is to secure your future financially. The premium payments go towards the well-being of your loved ones after your demise. Ensure that you have savings and allocate your investment in a manner that it could serve as a secondary stream of earning for your family. So, be sure of your financial goals.

Look for the best insurance policy

Now that you know about various categories of life insurance, start finding reliable insurance companies. Perform detailed research and shop around to choose the right policy. Compare their quotes and go through their plans to confirm if it best fits your financial requirements. You can also hire an insurance agent for your support or compare different prices online to make your search and selection of insurance plans easier.

Prepare and submit your application

Life insurance applications usually need the medical history of a borrower and their family and beneficiary details. After completing the documentation process, you may need to take a medical exam to make sure you do not suffer from any terminal illnesses. If any tests come out inaccurately, your application is likely to get rejected.

Age, lifestyle, family medical background, gender, smoking, driving record, and health are some important elements for most applications of life insurance. Standard identification proof will also be required such as a driving license, U.S. passport, or social security card before an insurance policy is written.

It’s time to pay premiums

After completing all the processes, an insurer will approve your application and your policy will get active once you pay your initial premium. You can rest assured about your financially secure future as long as you pay the required premiums on time.

Conclusion

These are some rules that can ease life insurance purchasing options. But, before you buy any plan, research company reviews and consider the death benefits you require. Check the coverage of each insurance plan and thoroughly read the terms and conditions associated with the policy to avoid any problems while claiming the insured amount. Figure out if you would require adding any riders to the selected policy. Also, make sure whether you have to pay the annual premiums at once or in installments. After purchasing a policy, tell your beneficiaries about an insurance company, where to find the policy documents, and all associated things.

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A Must-Follow Checklist Before Buying a Cancer Insurance Policy

Wed, 22 Mar 2023 17:49:43 +0000

The Buyt Desk

Some of the latest studies on cancer state approximately 19.3 million new cancer cases will appear in the United States by 2025. And it will be accountable for nearly 6 Lakhs death. The number is alarming for India, but India is also no good at this. One can see cancer patients having their reports in hand, exhausted, physically, financially, and mentally around any cancer hospital. And if you ask them what troubles you the most? The answer would be the cost of treatment.

Cancer insurance is a way to escape the financial and emotional mayhem that this disease brings to the family. This insurance provides financial coverage to cancer patients at different stages and helps them take treatment without worries. However, getting the right insurance is the key here because these policies come with lots of nitty-gritty.

Although this lifestyle disease has become ubiquitous with time, a group of people is more vulnerable than others. Hence, it becomes imperative to consider a few factors before buying a cancer policy.

Benefits and Indemnity – Cancer treatment cost is high and continues for the long term. An insurance policy proves a saver during this critical time, provided you have chosen the right one. Two types of cancer policies are available in the market, benefit, and indemnity. The benefits policy pays the amount upon the diagnosis of the disease and continues till the survival period. The indemnity policy has a waiting period, and a person gets the reimbursement in accordance with the amount spent over the period of treatment.

If you have a family history, bet on the benefits policy. It is because people with a history lie in the high-risk group.

Enough Coverage Amount – Considering the exhaustive treatment cost of cancer, including radiation, chemotherapy, surgery, etc., you should consider taking insurance that gives high coverage, or else it would take a lot from your pocket.

Zero Waiting Period – If you have a history ofInsur the disease and fall in the risk age group, i.e., 30-50 years, get a policy with a zero wait period. Often policies come with a waiting period for particular treatments and conditions, including cancer. People already diagnosed with cancer or have been through the treatment of the disease earlier are likely to get a policy with a long waiting period. If no option is available, take one with a minimum wait period.

Co-payment Clause – A few health insurers impose a co-payment clause on policy buyers and upper sub-limit for cancer. It means the policyholder will pay a certain percentage of the treatment amount. For example, a policy with 50 Lakhs coverage can have a 5 Lakhs cap for cancer treatment. Consider both clauses before signing the agreement.

Clause for Pre-existing and Existing Disease – Whether you buy a policy for a critical illness that covers cancer or a cancer treatment policy, a thorough scan of all the clauses mentioned in the policy pertaining to critical conditions is imperative. Also, you must disclose every detail of your health, such as pre-existing illness and family history, with the insurer. Non-disclosure of these crucial details will not only lead to the claim rejection but also dismay condition.

Survival Period – Some insurers specify that the cancer patient must survive for a particular period after the diagnosis and treatment of the disease. They offer the insurance benefit only after a patient completes that period. Insurers mention this clause in the terms and conditions section. Thoroughly scan this section of the policy before making a decision.

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Now You Can Insure Your Furry Friends too!

Thu, 16 Mar 2023 17:14:33 +0000

The Buyt Desk

Do you often get anxious about your pet’s health? Now, you can secure the overall health of your beloved pet with a pet insurance policy. This insurance will incur the overall cost of the pets’ treatment, just like human insurance. And, if your pet accidentally bites someone or damages any property, this policy will also cover the treatment cost.

The number of families owning pets in India is rising, so the need for a product ensuring the well-being of pets has become a necessity.

Understanding the market requirements, insurance companies like Bajaj Allianz General Insurance, Future Generali, and Digit Insurance have entered into the space with the pet insurance plan. The plan intends to cover all the risks that pet owners often face. It includes illness, surgery, third-party damage, theft, and much more.

How Does the Pet Insurance Work?

Pet insurance is no different from human insurance. This insurance policy comes with a bundle of benefits that helps in the well-being of pets and pet owners.

What Does Insurance Policy Cover?

Owning a pet is expensive. It is because of exhaustive food, medication, and treatment cost. Pets are also vulnerable to diseases and hurt, which requires long-term treatment and sometimes surgeries.

A few incidences have also happened in the past where pets had hurt people and property, which led to the imposition of a fine on pet owners. One of the benefits of this policy is that it covers everything from vaccination to third-party liability.

Apart from that, the policy also covers the expenses incurred by the pet owners in the incidences like pets lost or stolen.

What is the Cost of Pet Insurance?

The cost of pet insurance is another factor you should know. Similar to human insurance, the cost of pet insurance also depends on various factors, such as type of pet, age of the pet, its size, breed, etc. In addition to the mentioned criteria, the premium and insurance plan cost also depends on the prevailing health condition of the pet and its illness history. However, at random, the premium starts at as low as Rs 300.

These days many insurers have come into the market offering pet insurance services with exclusive offers and benefits, and their insurance premium varies according to the tenure for which the pet owner is buying the insurance.

This insurance also covers incidences such as breeding risks, food poisoning, etc., at the payment of some extra amount.

The Exclusions and Limitations in Insurance Plan

The usual wait period for pet insurance is 15 to 30 days before the start of the coverage, and it is eligible for pets between the age of eight weeks to eight years. Co-pay is also applicable to all insurers. It is approximately 10 percent for surgery and hospitalization.

Most insurers do not cover the pre-existing illness of pets and the diseases that cause the death of pets, such as rabies and distemper.

Conclusion – Pet insurance is not a new introduction by insurance companies. Earlier, a few public sector insurance companies like New India Assurance and Oriental Insurance used to offer a version of pet insurance. The private sector has come into the space with robust plans and features and promoting it rigorously.

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What Are The Different Types of Ulip?

Wed, 01 Mar 2023 17:23:23 +0000

The Buyt Desk

ULIP, an acronym for Unit Linked Insurance Plan is a combination of life insurance policy and investment. Therefore, it is an ideal choice for a policyholder or a beneficiary as they get to benefit from one investment. Some amount invested in ULIP includes the insurance premium and gives insurance to the policyholder. However, some amount goes straight towards investment in the financial market.

Types of ULIP

There are different types of ULIP and these are described below.

Equity

In this ULIP, the invested amount is used for purchasing the equity shares of various companies. Since the investments are connected to fluctuations in the financial market, this type of ULIP is considered risky. But, there are also higher chances for growth. So, this ULIP is a perfect choice for risk-friendly investors who are expecting higher returns.

Debt

In this type of ULIP, the amount goes into debt instruments including debentures, fixed-income bonds, government bonds, corporate bonds, etc. The risk in this ULIP is comparatively low. The investor receives moderate returns.

Liquid Funds

Investors having low-risk tolerance find this type of Unit Linked Insurance Plan an ideal choice. It meets the investors’ short-term goal because its maturity period differs from weeks to some months. It is also considered to have strong credit ratings which further declares it the best low-risk investment option for investors. The amount in this ULIP is invested in money markets like treasury bills, CDs (certificates of deposit), or call money.

Single and Regular Premium

Investors in this ULIP have to pay the premium just once when they are buying the ULIP. However, they should more often pay premium charges based on the regular ULIP type. They can select a monthly, quarterly, or annual plan for premium payment.

Life-Staged ULIPs

Under life-staged ULIPs, investors’ risk factor reduces with their increasing age. In the starting phase, a huge part of the investment amount goes into equity, and the reduced part moves into debt. As the investor grow older, more of their investments transfer into debt instruments and less they carry the equity.

Guaranteed & Non-Guarantee Plans

In a guaranteed ULIP, the investor receives a better return over long-term investments. Guaranteed ULIP would be the right choice if the investor wants to save. That’s because the policyholder receives negligible exposure to equity funds.

Investors under non-guarantee ULIP receive better exposure to equity funds. This eventually provides investors with the increased possibility of growth they want to create wealth. They will also get a wide range of options to select from.

Balanced Funds

Investors who wish to have a lower risk and receive increased returns can opt for balanced funds Unit Link Insurance Plans. This type of ULIP has lower risk involved than a pure equity plan. Some ULIPs invest in equity as well as debt instrument. Such investments are split into two proportions – equity and debt instruments.

Cash Funds

Under this type of Unit Linked Insurance Plan, the risk factor is almost insignificant. So, it is an excellent choice for risk-averse people. But, the returns are comparatively lower than other ULIPs.

Final Thoughts

All these are some important types of ULIPs. It shows how you figure out a specific ULIP according to your financial planning and risk appetite. For example, to reduce the risk, you can choose equity funds or debt and select a risky one. However, many other alternatives are also available at the same time to choose from accordingly.

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