April 2018 - Turtlemint

All you need to know about personal accident cover in car insurance

April 30, 2018May 12, 2021 Sneha Banerjee

There is no guarantee of safety on the road, and many factors can lead to irreparable damages at the time of such an unfortunate event. WHO states that India barely abides and follows its traffic and road safety rules, which leads to irresponsible driving.

We may not know when the rules will become stricter in this country, but we do know that the benefits of keeping our vehicles insured helps in reducing the unexpected expenses. While accident covers for cars are not going to bring someone’s life back, they can definitely help repair the damaged car that faced the unfortunate mishap.

Accident Covers are obligatory

To compensate the losses of careless driving on the roads, the Indian government formulated the Motor Vehicles Act, 1988, which makes it necessary for any vehicle owner to have a ‘third party insurance’. Any vehicle owner without an insurance would be penalized in a court of law.

Third-party coverage for vehicles ensure that any damage made to the car is liable for a claim. But since it offers basic coverage it is advisable to strengthen the policy with a personal accident cover.

Compensation provided by accident covers:

Accident covers provide many benefits of which some are mentioned below:

Insurance of 100% sum if there is an accidental death at the scene.
50% to 100% sum insured in case of a permanent total disability (for example: losing both feet, limbs, eyes, etc.)
5% to 70% compensation if the person is permanent partial disability (for example, losing a limb or an eye, etc.)
In case of third party damages to a property, there is a compensation of up to Rs. 7.5 lakh.

Compensation provided in policy with personal accident as add-ons:

Often, personal accident covers are joined with third-part insurance schemes to compensate an owner who is also the primary driver of the vehicle. This can cost a small amount and is liable for claims by the insurer when the driver owner meets an accident while driving his own car.

For making any claims, there are some conditions to it, which are:

The driver needs to have a registered ownership of the insured car.
The driver’s ownership needs to be in his name.
The driver should have a valid driving license.

Compensation for a paid driver:

In this case, accident cover offers an add-on known as Legal Liability coverage, provided under the Workmen’s Compensation Act, 1923, that compensates any claims made for a paid driver as well. This just costs RS. 50 that has to be paid by the owner of the vehicle. In case of any injury inflicted to the paid driver while driving the owner’s car, the insurance company will cover the costs of partial or permanent injuries or accidental death.

Compensation for family members:

With an additional coverage option known as accident cover for passengers (unnamed), the vehicle owner can get benefits for any passenger traveling in the car, not limited to just the family members.

Such add-on coverage can be obtained from the insurer through a Comprehensive car insurance policy that covers personal accident policy and other schemes with it.

These were some of the basic personal accident covers available in India. Make sure to add one to your insurance policy to come in handy when it is needed the most.

Roles of insurance in trading a used car

April 27, 2018May 12, 2021 Ankita Sejpal

There are many who buy a used car. Many prefer it to buying a new car as it saves them money. A used car makes an excellent value proposition for many people as compared to a new car. However, just like for a new car, a used one also needs insurance policy to support it. In addition, it is important that both the buyer and seller of the vehicle is knowledgeable about the insurance policy and its conditions. If one neglects the terms related to the transfer of the insurance policy during a sale or purchase, it can get complicated and may incur additional expenses for both parties.

Interested to check out some crucial aspects of an insurance policy in selling or buying a used car? Then read on and be informed

1 – Ownership transfer:

While selling the car, the seller should verify if the insurance policy has been transferred in the name of the vehicle buyer. On the other hand, the buyer should note that he/she gets a time period of 2 weeks at least to acquire the insurance ownership.

Delaying may result in policy rejection, and the buyer will have to reapply for a policy afresh in that case. Another thing to note is that any claims based on the policy are not viable if the vehicle registration is not in the same address and name as given on the policy document. Make sure that you are aware of these IRDAI norms so that you can expect to get claims approved and not get rejected because of this one point.

2 – NCB claims:

Any claim free year results in additional bonus, which we term as No-claim bonus. This benefit can vary from 20-50% based on the number of claim-free years acquired. While the seller can transfer an insurance policy for a used car, the NCB is not transferable as it stays with the policyholder rather than with the policy.

It is interesting to note that if the seller has not claimed any bonuses for a year, then that benefit is aggregated for later use when he plans to buy a new vehicle. In short, NCB stays with the policyholder rather than with the car.

3 – Policy period:

Another role of insurance policies, when transferring it to the buyer, is that its margin can be adjusted in the cost of the vehicle. This factor is based on the date on which the policy was purchased. For example, if the seller buyers an insurance policy in January 2017 and sells the car around March 2017 to the buyer, then it is clear that the seller has already made the payment for the policy at least for January 2018. This gives him the right to add the cost of the remaining premium months in the car’s price.

Conclusion:

Buying or selling a used car requires better understanding of the documents that accompany when trading. Both the buyer and the seller should be full alert about the exchange of ownership and the documents before proceeding.

How much car insurance do you really need?

April 24, 2018May 12, 2021 Rupanjali Mitra Basu

It is only human to want more, isn’t it? The more the merrier. However, when it comes to car insurance policies, does having a higher insurance cover really make sense? How much car insurance do you really need?

While the choice of the coverage level in a life and health insurance policy is in your hands, in case of car insurance policies, the coverage level depends on the car’s IDV. Do you know what IDV is?

What is IDV?

IDV stands for Insured Declared Value. It is calculated as the current market value of your car after deducting the age-based depreciation. IDV calculation also excludes the costs incurred in registering and insuring your vehicle. The rate of depreciation applicable in IDV calculation is as follows –

If the vehicle is older than 5 years, the IDV is calculated by mutual agreement between the insurance company and the policyholder.

The IDV represents the sum insured of your car insurance policy. It is payable if the car is damaged completely or if it is lost or stolen.

Now that you know the concept of IDV, let’s understand how much car insurance do you require?

For new cars

If you buy a new car or your car is up to 3 years old, choosing the highest possible IDV is a better choice. A high IDV would maintain the value of your car and ensure a higher settlement of claim in case of total loss or theft of the car. Different insurance companies might offer a different IDV for the same car. As such, you should compare different car insurance policies on their IDV, coverage features and premium rates and then try to buy a plan which offers the highest IDV.

For older cars

Cars which are 4 or more years old do not require very high IDVs. Such cars’ life spans are nearing their end. Many individuals, usually, use their cars for 4 or 5 years on an average and then replace them. That is why, a car insurance policy for an older car, which is on the verge of being replaced, can make do with a lower IDV. In fact, low IDVs are better for older cars as they help in saving premiums.

Don’t forget about the available add-ons

A comprehensive car insurance policy also offers you optional add-on coverage features. These features enhance the coverage of the plan but cost extra. Are they required?

Yes, they are. Some of the add-ons are quite useful at the time of claim and should be added to your car insurance policy depending upon their suitability. Here are some of the important add-ons which you should consider in your car insurance plan –

Zero depreciation cover – under this cover the effect of depreciation on your car insurance claims is nullified. The insurance company pays the full value of claim for repairs of the depreciated parts of your car.
NCB protect – you earn a no claim bonus (NCB) in your car insurance policy when you don’t make a claim. This gives you a premium discount in subsequent policy years. However, a single claim wipes out the NCB discount. NCB protect add-on protects the accumulated NCB even when you make a claim
Roadside assistance – this add-on provides you 24*7 assistance in case your car breaks down in the middle of the road and you cannot reach the nearest garage for repairs
Engine protect – this add-on is beneficial if you are living in a flood prone area. The add-on covers the damage suffered by the car’s engine due to waterlogging
Return to invoice – under this add-on, the invoice value of the car is paid in case of total loss or theft.

You should choose the available add-ons based on their suitability. Don’t choose add-ons unnecessarily. Newer cars require zero depreciation, return to invoice and NCB protect add-on. If you live in an area where monsoons cause water-logging, engine protect add-on should be your obvious choice. Roadside assistance is helpful if you go on frequent road-trips.

So, when buying your car insurance policy, choose the correct IDV based on your car’s age. Also add the required add-ons for a more comprehensive coverage. This way, your car would be insured for the correct value.

Check out our video below to know the comprehensive motor insurance in detail

Ten common mistakes that make your car insurance expensive

April 17, 2018May 12, 2021 Ankita Sejpal

A car insurance policy is a mandatory cover as per the Motor Vehicles Act, 1988. So, if you have a car you need to have a valid car insurance policy on it. Being mandatory doesn’t mean that the car insurance policy would be expensive. If you, however, feel that you are paying high premiums for your car insurance plan, it is time for a reality check. There are ways in which the car insurance premium can be reduced. If your premiums are high, you need to check if you are committing any of the following common mistakes –

Not comparing before buying

You would find most of the general insurance companies offering a car insurance plan for your vehicle. All these plans differ in terms of coverage benefits and premium rates. To ensure that you get the best premium rate you should compare first and buy later. Comparing not only lets you reduce your premium expense, it also allows you to choose the desired coverage benefits. So, if you are buying a policy without comparing, you are definitely making a mistake which makes car insurance expensive.

Here’s why you should purchase car insurance policy online

Choosing the wrong type of policy

Car insurance plans come in two variants – liability only and comprehensive plans. Though comprehensive plans are better for a more inclusive coverage, they are not very useful if you use your car minimally. If your car’s usage is limited, you can make do with a third party liability only policy which would be much cheaper and provide the mandated legal liability cover.

Opting for a higher IDV

The Insured Declared Value (IDV) of your car is its market value after factoring in depreciation. A high IDV is preferable since it ensures a higher claim settlement. However, in some cases, a higher IDV doesn’t make much sense. It simply makes car insurance expensive. For instance, if you have an old car which you are thinking of replacing soon, opting for the highest available IDV is unwise. For such an old car, lower IDVs are better which would help in saving the premium cost.

Opting for unnecessary add-ons

Add-ons are important coverage features which enhance the scope of coverage. However, they come at an additional premium. Though you should opt for add-ons, you should cut down on unnecessary ones. For instance, if you are living in a flood-free area, an engine protect rider us useless. Similarly, if you don’t take your car on long road trips, a roadside assistance add-on doesn’t prove very relevant. So, cut down on the frills. Go basic with your car insurance policy and avoid unnecessary expenses.

Not choosing discounts

A car insurance policy offers attractive discounts which help in lowering your premiums. Check whether you have availed all the possible discounts or not.

Not using the accumulated No Claim Bonus (NCB)

Your car insurance policy allows you a NCB discount if you don’t make a claim in any policy year. This discount also increases every claim-free year. So, when renewing, you should check whether the applicable NCB discount is applied to your renewal premium or not.

Not choosing voluntary excess

Voluntary excess is the portion of claim which you choose to pay yourself. As you choose to shoulder a part of the claim, the insurance company’s liability reduces. As such, the insurer allows you a premium discount. So, if you are a careful driver and don’t get involved in accidents frequently, you can choose a voluntary excess and earn a premium discount.

Find out why on time renewal of car insurance policy is important

Making small trivial claims

While your car insurance policy allows you a premium discount for not making a claim, the discount is completely lost if you make a claim any year. Therefore, it is always advised to pay for smaller claims from your pockets. For a small claim amount you should not lose out on the accumulated No Claim Bonus. If you are making trivial claims, you should consider stopping this practice.

Having a bad driving record

If you are a reckless driver with a bad driving record, your premium would be higher. Since frequent claims are made on the company, the company, usually, increases the renewal premium for policyholders with a bad driving history. You should be more careful when driving if you are to reduce your car insurance premium rate.

Lapsing your policy

Car insurance plans are annually renewable plans. If you lapse your existing car insurance policy, any subsequent renewal would involve higher premium amounts. Given the mandatory nature of the plans, you have to avail coverage for your car. In this scenario, not renewing your car insurance policy on time is a mistake. You would be charged a higher premium and might also lose out on the accumulated no claim bonus if renewal is not done within 90 days.

Which mistakes are you making which are driving up the premium of your car insurance policy? Find out and rectify them to enjoy lower premiums.

Ask these things yourself if you are considering or thinking of not buying a life insurance

April 13, 2018May 13, 2021 Ankita Sejpal

Financial experts have always advised on the importance of a life insurance policy. They state that the policy should form a part of your financial portfolio. But how many of you take this advice?

Unfortunately, not many! As per the ‘Transformative Agenda for the Indian Insurance Industry and its Policy Framework’ report written by ex-IRDAI member H. Ansari and Arun Agarawal, insurance penetration in India is only 3.42% and the Indian insurance market contributes less than 1.5% of the world’s total insurance premium despite having the second highest population. (Source: https://www.financialexpress.com/market/insurance-penetration-in-india-at-3-42-far-below-global-average/740295/).

Is ignoring a life insurance policy a wise decision?

No, it is not. But if you are not convinced and are thinking of giving a life insurance policy a miss, ask yourself these questions first –

Would my family be financially secured if I am not around?

The whole purpose of earning money is to provide for your family. Only when the family’s bread-winner brings in money can the family use the money on fulfilling their basic lifestyle requirements. What if the bread-winner suddenly dies? Would the family be able to sustain itself?

If you are the sole bread-winner of your family, you would know the answer to this question. Ask yourself whether your family would be able to meet its financial obligations in your absence. If they can’t, a life insurance policy is a must. Life insurance plans, especially term plans, provide your family a financial security in the event of your premature death. So, if you are avoiding insurance, think again.

Would my investments be sufficient for my family’s safety if I were to die early?

In the answer to the first question about your family’s financial security, many of you believe that your investments would come in handy. People have the misconception that the investments that they are making would be sufficient for their family’s needs. Would they?

While it is commendable that you invest, you need to stop and ask yourself whether your investments would be sufficient if you don’t wake up the next morning. If they would be, you are the lucky few who have the privilege of dying rich. But if they are not, missing life insurance would be a very grave mistake.

Would my child’s future be secured if I am not around to plan for it?

Children are the apple of every parent’s eyes. Every parent desires that their children receive the best upbringing and education. But bringing up a child and ensuring a good education requires money, money that you save during your lifetime so that your child’s financial security is ensured. But what if your lifespan is cut short? If you haven’t planned for your child’s future, can the future be secured?

Is my retirement corpus earmarked?

Living too long is another risk which you must prepare against. Retirement, though distant, is a certain part of your life. While you prepare to plan your finances for the contingency of early death, retirement planning is also essential. Post retirement your income stops but expenses don’t. That is why you need a dedicated retirement corpus to pay for your expenses. Though many of you try and accumulate this corpus during your active working life, many fail in securing a substantial corpus. The main reason of this failure is the lack of a dedicated investment meant only for retirement. Do you have an exclusive corpus only for retirement?

Would I be able to ensure enough savings to suffice my family’s growing needs despite inflation?

While the first question addressed your family’s financial security, you cannot ignore your family’s growing needs. The basic financial needs, after food, clothing and shelter, include medical expenses, marriage, childcare needs, maintaining a standard of living, etc. You cannot ignore the effect of inflation on your family’s financial needs. While today your family’s monthly expenses might be Rs.50, 000, a decade or two later the same expenses might amount to Rs.80, 000 or Rs.1 lakh. Are your savings sufficient to meet such rising expenses on various family needs?

If skipping insurance is on your mind, think again. Seek answers to the above-mentioned questions. You would be surprised to know how insurance provides an easy solution for all the above questions. A term insurance plan secures your family’s finances and enables a high amount of coverage so that the benefit paid is sufficient to cover your family’s financial obligations easily. Similarly, a child plan ensures the financial security of your child. If retirement planning is on your mind you cannot go wrong with a pension plan which pays you lifelong incomes. Lastly, for inflation adjusted returns, unit linked plans are the perfect solution. So, don’t avoid a life insurance plan. Buy a term plan and secure your and your family’s finances.

Buying health insurance from Turtlemint

April 9, 2018May 13, 2021 Sidharth Hampanavar

A health insurance plan has become the quintessential part of every individual’s financial portfolio. It pays for the medical bills which threaten to wipe out your savings. Given the fact that illnesses have become very common and their treatment entails a very high expense, every individual secures his finances through a health insurance plan.

While a health insurance plan is important and is increasingly becoming popular, do you know how you can buy a plan easily?

The answer is simple – through the online medium. Yes, the online medium allows you to buy a health insurance plan easily and that too from the comfort of your own home or office. No more running around agents or visiting the branches of insurance companies, you can find a plan right at your fingertips. Turtlemint is one such online platform which gives you access to various types of health insurance plans. You can provide your details and get tailor-made health plans which suit your need. If you have queries, Turtlemint provides you the help of its executives in solving them. Even at the time of claim, Turtlemint promises you assistance through its claim management department. So, buying a health insurance plan from Turtlemint is one of the best and the easiest ways of getting yourself insured under a health plan. Here is the 4-point process of buying insurance through Turtlemint –

Though the 4-point step is the easiest way of buying health insurance, here is a detailed step-by-step guide for beginners and those of you who are slightly hesitant –

Actually, the health insurance buying process on Turtlemint is quite easy. If you need help, here is how you can buy a policy through Turtlemint’s website –

Go the company’s website at www.turtlemint.com
You would land on the home page of the website –

3.On the home page, select ‘Health’ to be redirected to a new page.

4. When you click ‘Find Plans’, your health insurance buying process would start. You would have to provide your details to create a health profile.

5. When you enter all your details, a new page pops up which requires your name, mobile number and email id. These details are required for sharing the quotes via SMS and email. You can either provide your details or skip this step to view the plans and their premium rates.

6. After you enter ‘Skip’ or provide the details and hit ‘Next’, you would be directed to a new page which would show you the available plans with their details and premium rates.

7. When you see the plans, you can choose to ‘Compare Plans’ available in the left-hand side tab. Under this feature, the plans would be displayed side-by-side for you to make a comparative analysis.

8. When you choose the plan you want to buy, click on the yellow tab which states ‘Buy’ and the premium amount. When you hit ‘Buy’, you would be taken to a new page wherein the details of the proposer are to be entered.

9. After providing the relevant details hit ‘Continue’ to provide the details of the insured members.

10. After the insured member’s details are provided, medical history would be required

11. After providing the medical history, you have to furnish your address for all communication purposes.

12. Once the address is confirmed by you, you can review the plan you have selected. You would see two options – Buy Online and Assisted Buying. Buying online is easy and can be done in easy steps. If you choose Assisted Buying, Turtlemint’s executive would get in touch with you and help you buy the plan.

13. When you choose ‘Buy Online’, you would be taken to the payment page of the insurance company. You can choose to pay the premium online through any of the available modes and the policy would be issued.

Payment done and policy sent to your mail id as well as your address. Wasn’t the process simple?

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It is. Turtlemint allows you to buy a health insurance plan simply after comparison. One-on-one assistance is also given if you face any problems or have queries. So, choose Turtlemint’s buying process and buy a health insurance plan today.

Read more about Dejargonzing health insurance terms

Read more about An anatomy of health insurance plan

Reasons to buy term insurance before you turn 30

April 6, 2018May 13, 2021 surbhi

When it comes to life insurance, you cannot ignore the all-too-relevant term insurance plan. The plan provides unmatched financial security both to you and your family. Because it has the lowest premium rates, you can afford to get the optimal coverage on your life. This optimal coverage gives your family financial security if you were to die prematurely. Thus, a term insurance plan is always recommended by all and sundry. Despite knowing the importance of a term insurance plan, most of you delay buying it. You believe that when you are young the possibility of death is a far-fetched idea. As a result, you buy a plan late in your life. Is it wise?

It is not. Ideally, you should buy a term insurance plan before you turn 30. Do you know why? Here are some reasons for you to reflect upon –

You can ensure financial security for your family in any unplanned contingency

Wise men say that death comes unannounced. They are right. Though you are young and in the prime of your health, you don’t know what awaits you tomorrow. If you were to fall a victim to an accident, can you save yourself? What about an unforeseen or undetected illness which costs you your life? Is your family prepared to deal with such contingencies? Buying young is, therefore, recommended so that you can ensure your family’s security in the face of any unplanned contingencies.

You can get a policy easily

When buying a term insurance plan, your age and medical history plays an important role in determining the coverage and the premium rate. When you are young, you are relatively free from major ailments and have good health. As such, buying a policy becomes very easy. The policy is issued instantly without strict underwriting formalities. You don’t even have to undergo pre-entrance medical check-ups when you buy a policy in your 20s.

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Your employer’s sponsored coverage is not enough

One of the primary reasons why many of you delay buying a term insurance plan is because your employer has already covered you under a group term plan. You, therefore, feel that since you already have an employer sponsored insurance coverage you don’t need one of your own. This is a myth. Even though your employer’s group term plan provides you coverage, the quantum is not enough to provide sufficient financial security. Furthermore, the coverage is ensured as long as you are employed with the same employer. When you change jobs, your new employers might not have a group term plan in place. Therefore, having an independent term insurance plan is essential.

You can secure your loans

Have you wondered what would happen if you were to die before paying off your loans? Would your family be able to bear the burden of your liabilities?

There are decreasing term insurance plans in the market which act as loan protection plans. These plans cover your outstanding loan liability and in the event of your death pay off any debt you have. Thus, they protect your family from the burden of your loans. When you buy a decreasing term insurance plan at a younger age, you can secure your loans and ensure their timely repayments.

Buying young ensures lower premiums

This is, perhaps, the best reason of buying a term plan before turning 30. The premium of the plan depends on your age. The younger you buy the lower the premium you are charged. What’s more, this premium, once fixed, does not increase with your age. Thus, when you buy a term plan in your 20s, you get to enjoy lower premium outgoes which increase substantially when you delay your purchase.

You can save tax too

The last and also the most pertinent financial reason of buying early is tax saving. Term insurance plans provide dual tax benefits. The premiums you pay are tax-free under Section 80C and the benefits are also tax-free under Section 10 (10D). So, buying a term plan also lets you do you tax planning along with fulfilling the financial security need.

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Know How term plans helps in saving tax

Now you know why experts advise on buying a term insurance early in life. After all, if experts give you an advice you can be sure that they have substantial reasons behind such advice. So, if you are young, don’t delay buying a term insurance plan. Buy a plan at the earliest and be the early bird that catches the worm.

Types of life insurance

April 3, 2018May 13, 2021 surbhi

Variety is the spice of life, isn’t it? Then should life insurance plans be of the same type? Wouldn’t you need different plans for meeting different financial requirements?

You would and life insurance companies understand this sentiment. That is why they offer a range of plans to cater to your varied requirements. Do you know about the range and type of plans offered by life insurance companies? Test your knowledge below –

Types of life insurance plans

Term insurance plans

This is the most basic and also the most important type of life insurance plan offered by insurers. This plan contains the essence of life insurance. It pays a benefit only in case of death of the insured during the term of the plan. So, if you buy a plan with a term of 20 years, death within these 20 years would result in the payment of the sum assured. Premiums are the cheapest since there is no maturity benefit. With this plan you can buy a high sum assured at affordable premium rates.

Usefulness of term plans

Term plans help you create financial security for your family in your absence. If you are the bread-winner, your family faces a tremendous financial loss in case of your premature death. A term plan pays a lump sum amount in this contingency and thus secures your family’s finances.

Visit our site to Compare and buy term insurance plans

Return of premium plan

In essence, return of premium plans are a variant of term insurance plans. However, they have one major difference. They pay back the premiums paid during the policy tenure if you survive the policy term selected. Premium for these plans are a tad higher than premiums of term plans because these plans also promise a maturity benefit.

Why do you need return of premium plans?

These plans are a variant of term plans and thus they help provide financial security. You can choose this plan if you want a benefit on plan maturity.

Whole life plans

Whole life plans run for the entire lifetime of the individual. The maturity age (age of the insured when the plan matures) under these plans is either 99 years or 100 years. Thus, the plan runs till the insured reaches this age or dies earlier. Whole life plans are like term plans which pay a death benefit whenever death happens. The only difference is that these plans do not have a finite term.

Importance of whole life plans

Whole life plans also fulfil the financial security need fulfilled by term plans. While term plans have a restricting tenure, whole life plans run lifelong. Thus, if you are looking for an indefinite coverage, you can choose whole life plans

Check out our video below to understand whole life plan in detail

Endowment Plans

Endowment plans are traditional savings oriented plans which give you either death or maturity benefit. These plans create a guaranteed corpus which is paid on maturity or earlier death. You can also get bonus if the plan participates in the company’s profits.

How endowment plans help?

Endowment plans promise guaranteed benefits. So, if you want to create a guaranteed corpus, you can opt for these plans.

Money back plans

Money back plans are a type of endowment plans where the sum assured is paid in instalments during the term of the plan. The interval when a portion of the sum assured would be paid back is specified at the onset of the plan. The instalments received are called survival benefits and they are paid only if you are alive at that time. On maturity, the remaining sum assured is paid along with any bonus or guaranteed additions as applicable. In case of death, the whole sum assured is paid irrespective of the survival benefits already paid.

Why are they needed?

Money back plans provide liquidity during the plan tenure by paying survival benefits at regular intervals. Thus, those of you looking for periodic returns can choose money back plans.

Unit Linked Insurance Plans

Called ULIPs in short, these plans give you a combination of life insurance and investment. The premiums you pay are invested in the market. There are different funds with varied asset class and you can choose any fund as per your investment strategy. You can monitor the growth of your invested premiums. Moreover, ULIPs allow you various flexible features like switching, partial withdrawals, top-ups, etc.

Why you need ULIPs?

ULIPs are great for individuals looking to reap market-linked returns while at the same time enjoying insurance coverage.

Pension plans

Pension plans are retirement oriented insurance plans which build a corpus for your retirement. There are deferred annuity plans and immediate annuity plans under this category. Under deferred annuity plans, you pay premiums for a specified tenure. These premiums accumulate into a corpus from which annuity pay-outs are given. Under immediate annuity plans, on the other hand, you pay a lump sum amount and annuity payments start immediately from the corpus you have invested. Pension plans can be offered as traditional plans with guaranteed returns or unit linked plans.

What is the use of pension plans?

Pension plans ensure a retirement fund. Thus, they are suitable for you if you are looking to save exclusively for your retirement. Annuity pay-outs are compulsory under these plans and these pay-outs continue for as long as you live.

Read more about Common terms in life insurance policy

Thus, there are different types of life insurance plans and each plan offers something different. Before buying a plan, assess your requirements and then buy a plan which suits such requirements.

Read more about 5 reason why you need life insurance

Are you wondering if your life insurance policy is applicable if you are travelling abroad? Check our video below to know more

1 – Ownership transfer:

2 – NCB claims:

3 – Policy period:

Conclusion:

What is IDV?

Not comparing before buying

Choosing the wrong type of policy

Opting for a higher IDV

Opting for unnecessary add-ons

Not choosing discounts

Not using the accumulated No Claim Bonus (NCB)

Not choosing voluntary excess

Making small trivial claims

Having a bad driving record

Lapsing your policy

Would my family be financially secured if I am not around?

Would my investments be sufficient for my family’s safety if I were to die early?

Would my child’s future be secured if I am not around to plan for it?

Is my retirement corpus earmarked?

Would I be able to ensure enough savings to suffice my family’s growing needs despite inflation?

You can ensure financial security for your family in any unplanned contingency

You can get a policy easily

Your employer’s sponsored coverage is not enough

You can secure your loans

Buying young ensures lower premiums

You can save tax too