LIC Registration – LIC new registration process – 2021

Life Insurance Corporation of India, popularly known as LIC is one of the oldest and largest insurance companies operating in India. Backed by the Government of India, LIC has the largest agent network, widespread branch network and huge customer base. LIC is one of the most trusted brands in India that offers a wide array of insurance products to cater to every need of people in the country.

When it comes to insurance or investment, it is not only important to buy the right one but also important to keep tabs on these financial investments regularly. It’s crucial to be updated on payments and status of the investments. LIC is one such brand that not only offers a variety of products but also provides excellent e-services to its customers.

Overview of LIC online registration

Be it for customers or for its agents, LIC offers convenience on its online platform with its registration facility. The process of LIC online registration is effortlessly easy and simple. If you are a customer of LIC holding their investment plans or if you are an agent, you can register yourself on LIC’s online portal to access details related to your existing investments/policy or on new investment opportunities or access your business information online.

Benefits of online registration on LIC’s portal:

LIC’s online portal offers various facilities on LIC policy registration. Following are the benefits that you can avail by using LIC’s online services:

  • Pay your LIC premium online:
    Be it your policy premium due or loan repayment/interest due, you can easily make payment in no time from anywhere using a debit card/credit card/net banking/UPI for BHIM payment methods

 

  • Check your policy status:
    Access the basic details of your policy like the sum assured, policy term, unpaid premium or premium paid etc. from anywhere anytime

 

  • Complete information about the accrued bonus:
    You can know how much bonus is accumulating each year for your policy

 

  • Details of your claim status:
    You can check your policies maturity date and benefits due. In case of any claims placed, status can be checked here

 

  • Check your loan status:
    If you have availed loan against your LIC policy, you can check the details relating to the loan outstanding and loan interest details etc.

 

  • Check premiums due:
    You can check premiums due for the year under premium-due calendar facility

 

  • Premium paid certificate:
    You can get premium paid certificate for an individual policy as well as for all policies on a consolidated basis for the current or previous years

 

  • Policy Bond:
    You can download copies of the policy bond and proposal form image

 

  • Complaints:
    You can register your grievances and complaints

 

  • Nominees:
    You can add or change nominees

 

  • Revival:
    You can get a revival quotation for all your lapsed policies

 

  • Benefit Illustration:
    You can also get benefit illustration for any LIC products

 

Wide range of services offered online for registered customers saves the time and effort of enquiry. This makes the information access easy for you and thus makes you have better policy knowledge. You will be updated with the status of your policy, bonus and claims etc. there is no way you will miss out on premium payments with the prompt online facilities offered on LIC’s online portal.

The step-by-step process of LIC online registration

LIC online registration process varies depending on the purpose of registration. You can register as an individual LIC agent or as an existing LIC policyholder. Let’s take a look at the step-by-step process flow for both types of registration.

Register as an insurance agent

If you want to be a LIC agent and manage your business online without visiting the LIC office on a daily basis, you can do so by registering yourself as an agent on the LIC agent portal. In order to become an agent, you need to pass the pre-licensing test conducted by IRDAI (Insurance Regulatory and Development Authority of India). Anyone who is 18 years and above with 10th grade completed from the registered board can appear for this test. LIC will even train you for appearing for the test. Once you obtain minimum marks in the pre-licensing test, LIC will issue your agent code to start working as LIC insurance agent. However, you will have to submit some documents like identity proof and address proof etc to get the agent code. With the agent code, you can register yourself as an agent on the LIC online portal. Following is the simple process to follow for online registration.

      1. Login to LIC official website
      2. Click on ‘Agent’s Helpline Module’ tab under online services. This will navigate you to a new page for registration.
      3. Click on ‘new user registration’
      4. Provide all the relevant details such as agent code, branch code, your email ID and contact number and set the password of your choice
      5. Click on ‘Generate OTP’
      6. OTP (one-time-password) will be sent to your registered mobile number or email ID
      7. Enter the OTP and submit. That’s it! Your registration is done!

 

Register on LIC e-portal as client or policyholder

If you are an existing policyholder of LIC, you can register yourself on LIC’s online customer portal. You can only access policies bought in your own name or in the name of your minor child. Before you start with the LIC online registration process, keep the following information handy:

Policy numbers

  • Premium installments for each policy (without GST or service tax)
  • A scanned image or copy of PAN card or passport

Following is the process flow for LIC policy registration on LIC’s customer portal

    1. Login to LIC official website
    2. Click on ‘customer portal’ tab under online services. This will navigate you to a new page for registration.
    3. For the first time registration, click on ‘new user’ tab
    4. Fill in all the relevant details such as your policy number, installment premium without tax, date of birth, mobile number, email ID, passport number and PAN.
    5. Confirm all the details you have provided by ticking the box given below and proceed
    6. In the next screen choose the password of your preference and finish the registration

To avail premier e-services, there are two ways

If already registered on LIC portal

  • You can log in with your user ID and password as a registered user and avail basic services
  • Further, you can add all of your policies under the same login
  • For availing all e-services, register your policies for availing e-services under the same login by filling out the request form provided
  • Fill in relevant details, print the form, sign and upload it along with a scanned image of PAN card and Passport
  • Once your documents are verified by LIC offices, email or SMS confirmation will be sent for you to access premier e-services

If you still have not registered yourself on the portal of LIC, then you need to follow these steps:

  • Login to LIC official website
  • Click on ‘customer portal’ tab under online services. This will navigate you to a new page for registration
  • For the first time registration, click on ‘new user’ tab
  • Fill in all the relevant details such as your policy number, installment premium without tax, date of birth, mobile number, email ID, passport number and PAN
  • Confirm all the details you have provided by ticking the box given below and proceed
  • Once you complete the process of initial registration with password selection, you can start adding all your policies under ‘add policy’ of ‘basic services’
  • Click on the registration form for availing premier e-services under the same login
  • Fill in relevant details, print the form, sign and upload it along with a scanned image of PAN card and Passport
  • Once your documents are verified by LIC offices, email or SMS confirmation/acknowledgment will be sent to you to access premier e-services

 

That’s it! This completes your LIC policy registration as LIC policyholder. You can start availing all the services offered on the online platform.

To sum it up, LIC online registration is the most convenient and easiest way to take control of your LIC investments. Have you already registered yourself on LIC online portal? If not, register yourself now with your existing LIC investments and get a hold of your further premium payments without any hassles/penalties, keep a check on your investment status, the bonus you are accumulating and get updated on newer LIC investment opportunities coming your way.

 

Things to know about cashless health insurance in India (Complete Guide)

With the dramatic rise in healthcare costs, medical emergencies can make a big hole in your pocket. Hence, it has become imperative for everyone to buy health insurance plans in India. While buying health insurance plans, people consider various things such as coverage offered, premium and additional benefits etc. But, the most important thing one must consider in any health insurance plan is the ‘’cashless facility’’ offered to avail the quality medical care services at the right time.

Overview of cashless health insurance

Cashless health insurance is a health insurance policy that comes with a cashless claim facility. As the name implies, in cashless health insurance plans, you don’t have to face the hassles of paying cash during medical emergencies and then getting it reimbursed from insurers. In this, your insurer will directly settle the medical bills to the network hospital where you avail healthcare treatments. Hence, in order to avail the quality healthcare treatment at the rightly needed time, it’s important to have an ideal health insurance plan that is supplemented by the cashless facility. With cashless health insurance, you can get the timely treatment even without having a contingency fund for medical emergencies.

Features of cashless health insurance

Today, health insurance policies come with wide array of features cover each and every aspect of healthcare emergency. There are plans to suit the healthcare requirements of individuals, families, senior citizens, women and group of people etc. Almost every insurer today is offering cashless health insurance policies. Features of these policies are designed by the insurance companies. Let’s take a look at some of the standard features offered by cashless health insurance plans.

Following are the features of cashless health insurance:

  • In-patient hospitalisation expenses
  • Pre and post hospitalisation expenses
  • Day care procedures
  • Domiciliary treatments
  • Daily hospital cash allowance
  • Emergency ambulance cost cover
  • Value added services
  • Pre-existing illness cover
  • Free health check-ups
  • No claim bonus
  • Organ donor cover
  • Critical illness cover, etc.

Top #4 Advantages of cashless health insurance

An ideal cashless health insurance plan is the one that offers you unending benefits in the time of need. Let’s take a look at the major benefits offered by cashless health insurance.

  1. Extensive coverage:
    Cashless health policies provide comprehensive coverage for all health issues including in-patient care, pre hospitalisation and post hospitalisation, domiciliary hospitalisation, day care procedures, health check-ups and ambulance coverage etc. Many policies provide additional coverage such as critical illness cover, parental care, maternity expenses and new born child cover etc. to make the coverage extensive.
  2. Convenience of instant cashless treatment:
    Cashless health plans are the quickest with the convenience of an immediate treatment facility at network hospitals without having to pay the cash. The best part is hospital network is widely spread across the country in almost all the insurance companies. Hence, cashless medical treatment can be availed by you conveniently even when you are travelling.
  3. Worry-free access to funds:
    If you have a cashless medical insurance, you can avail treatment in the time of need without any worry irrespective of your financial condition at the moment. Cashless insurance offers a sense of security as there is no worry of depleting savings or liquidating assets. You will be in a better position to handle the unforeseen situation with the financial security offered by cashless health plans.
  4. Saves tax:
    Along with all the financial protection and convenience benefits, cashless health insurance plans also offer tax benefits.Premiums paid towards health insurance plans taken for self, spouse, children and parents can be claimed under Section 80D of the Income Tax Act for tax deduction.

    Following are the details –

    Description All members of the family below 60 years of age Self, spouse and children below 60 years age

    Either of the parents above 60 years age

    Self- 60 years above

    Spouse and children below 60 years of age

    Parents above 60 years age

    Maximum premium for self, spouse and dependent children INR. 25,000 INR. 25,000 INR. 50,000
    Maximum premium for parents (dependent/non-dependent) INR. 25,000 INR. 50,000 INR. 75,000
    Total deductions available INR. 50,000 INR. 50,000 INR. 1,00,000

Types of cashless health insurance policies in India:

There are various types of health insurance policies offered in India with cashless facility. Following are the types of cashless health insurance policies available in India:

  1. Cashless individual health insurance:
    Cashless individual health insurance policies provide coverage to an individual against various unforeseen medical events depending on the terms and conditions of the policy.
  2. Cashless family health insurance:
    Cashless family health insurance provides coverage to an entire family in a single policy against various unforeseen medical events as per the terms and conditions of the policy.
  3. Cashless senior citizen health insurance:
    Cashless senior citizen health plans provide healthcare coverage to senior citizens with many exclusive features like coverage for pre-existing illness, day care and critical illness etc.
  4. Cashless mediclaim/group health insurance:
    Cashless mediclaim insurance policies provide coverage to the group members. These are the employee sponsored health insurance plans providing coverage against various unforeseen medical events.

Top #5 best cashless health insurance plans

There are a wide variety of cashless health insurance policies available in the market. Best one or the right one out of these plans may vary depending on each individual’s requirement. However, here we have tried to list out five best cashless health plans available in the market.

Following are the details:

Plan name Plan type Entry age Renewability Waiting period for pre-existing illness Sum insured (in INR) Premium
Apollo Munich Optima Restore Plan Individual/ Family floater 91 days to 65 years Lifelong 36 months INR 3 lakhs to INR 50 lakhs INR 7,971
Star Family Health Optima Plan Family floater 16 days to 65 years Lifelong 24 months INR 2 lakhs to 15 lakhs INR 10,608
HDFC ERGO Health Suraksha Policy Individual/ Family floater 3 months to no limit Lifelong 48 months Up to INR 10 lakhs INR 8,044
Religare Care Policy Individual/ Family floater 91 days to no limit Lifelong 48 months INR 2 lakhs to INR 60 lakhs INR 6,318
ManipalCigna ProHealth plan Individual/ Family floater 91 days to no limit Lifelong 48 months INR 2.5 lakhs to INR 100 lakhs INR 6,996

(Premium is taken for a 30-year-old healthy male for INR. 5 lakhs sum insured. Star family Health optima plan premium is for a 30-year male + a 28-year-old spouse, as the plan is family floater)

  1. Apollo Munich Optima Restore PlanApollo Munich Health Insurance is one of the leading private health insurers in India with a wide gamut of health plans in its product offering. The company offers best in class services with 4500+ network hospitals across the nation. Let’s take a look at some of the amazing features offered by optima restore health plan.

    Following are the key features/facilities offered by the plan:

    1. The plan offers comprehensive coverage for various expenses that include hospitalisation, daycare, pre hospitalisation and post hospitalisation, organ donor expenses and daily hospitalisation allowance etc.
    2. The policy offers no-claim benefit for each claim-free year which is up to 50% along with multiplier benefit that can double the NCB benefit up to 100% of sum insured.
    3. The plan comes with an automatic sum insured restoration benefit
    4. The policy offers you portability benefit which helps you get all the previous transferable benefits under the policy
    5. You can stay active and earn up to 8% renewal discount by using stay active mobile application
    6. Complimentary health check-up at the block of every two years
    7. Policy comes with an optional add-on cover called ‘critical advantage rider’ that covers eight major illnesses for up to INR. 10 lakhs. Policy also offers e-opinion facility post-diagnosis of critical illness
    8. Policy requires no pre-medicals for a person aged below 45 years and for sum insured below INR 15 lakhs
  • Star Family Health Optima PlanIndia’s first standalone insurance company, Star Health Insurance Company offers various uniquely crafted health insurance plans for you and your family. With its largest network of 9600+ hospitals, the company displays excellent service quality. Star family health optima is one of the best plans offered by the company to secure your entire family under one umbrella. Let’s take a look at the key features and facilities offered by the plan.
    1. Policy offers extensive coverage for the whole family at reasonable cost of premium. Coverage mainly includes, hospitalisation, pre hospitalisation and post hospitalisation, 405 day care procedures, organ donor expenses, domiciliary hospitalisation and newborn cover etc.
    2. 100% automatic restoration of sum insured benefit
    3. Policy offers no claim bonus of up to 35% of the sum insured
    4. Recharge benefit to enhance the sum insured up to 30%
    5. Health check-up benefit of up to 1% of the sum insured
    6. Policy offers you portability benefit which helps you get all the previous transferable benefits under the policy
    7. Policy requires no pre-medicals for person aged below 50 years
  • HDFC ERGO Health Suraksha PolicyHDFC ERGO General Insurance Company offers diversified range of health insurance plans to suit various healthcare needs of its customers. With wider network of 9500+ hospitals, the company endures your healthcare needs are addressed effortlessly. Health Suraksha plan of HDFC ERGO comes with various amazing benefits and features. Let’s take a look at the features of the plan.
    1. Policy offers wider coverage that includes in-patient care, day care treatments, organ donor cover, pre hospitalisation as well as post hospitalisation and non-allopathic treatments, emergency ambulance charges etc.
    2. Policy offers optional add-ons like maternity cover, critical illness benefit and convalescence benefit etc.
    3. Policy offers family discount of up to 10% on premium for covering two or more family members
    4. Policy offers 5% cumulative bonus for each claim free year
    5. Automatic sum insured restoration benefit
    6. Health check-up allowance of up to 1% of the sum insured
    7. Policy requires no pre-medicals for person aged below 46 years
  • Religare Care PolicyReligare Health Insurance is one of the most trusted brands that offers a wide range of health insurance plans. With 4700+ network hospitals, Religare makes global healthcare treatment easily available for you. Religare Care is one of the best plans offered by the company with various valuable features. Let’s take a look at the facilities offered by Religare Care policy.
    1. Policy comes with complete package of wide coverage that includes in-patient care, pre hospitalisation and post hospitalisation, day care treatments, organ donor expenses, outpatient cover, daily hospitalisation allowance, ambulance charges and domiciliary hospitalisation etc.
    2. Sum insured restoration benefit of up to 100% is offered
    3. No claim bonus of 10% on each claim free year up to a maximum of 50% is offered. The plan also comes with additional no-claim bonus of 50% making the total to 100%
    4. Complimentary health check-up once a year
    5. Policy offers discount on choosing longer policy term
    6. Policy requires no pre-medicals for person aged below 46 years. However, the requirement may depend on sum insured chosen and health history
  • ManipalCigna ProHealth PlanManipalCigna Health Insurance Company formerly known as Cigna TTK Health Insurance Company offers a wide range of health insurance solutions. ProHealth plan is one of the best products offered by the company to secure you and your family. Let’s take a look at amazing facilities offered by the plan.
    1. ProHealth policy offers flexibility in choosing the plan based on your healthcare requirements – plans available are Protect, Plus, Preferred and Premier
    2. Policy comes with comprehensive coverage that includes in-patient hospitalisation cover, day care treatments, organ donor expenses and pre and post hospitalisation cover etc.
    3. Policy offers up to 10% of long tenure discount and family discount on premium
    4. Restoration benefit of up to 100% of sum insured
    5. No claim benefit of 5% to 10% (depending on the plan chosen) is offered which can be accumulated up to a maximum of 100% of sum insured
    6. Policy comes with voluntary deductible of INR. 1 lakh, INR. 2 lakhs and INR. 3 lakhs which can help you reduce your premium to a certain extent
    7. Complimentary health check-up for every three years
    8. Policy provides you an option to earn healthy rewards that can reduce your premium
    9. Policy provides maternity cover and worldwide emergency benefit
    10. Policy comes with optional add-ons – critical illness cover and waiver of copay.

11 most important points to consider before buying cashless health insurance plans

To buy the right cashless health insurance plan, certain important points are to be considered. Following are the important points to consider while buying:

  1. Coverage:
    Coverage offered by the policy needs to be given utmost importance at the time of buying. It’s important to have adequate coverage in case of an unfortunate event. Not just the amount of sum insured, coverage offered needs to be comprehensive in terms of features and benefits also. Consider wider coverage policies that can cover almost every medical situation. There are policies that come with restoration features, wherein sum insured gets reinstated when it’s exhausted. Consider policies with such features.
  2. Exclusions:
    It is important to consider what is not covered in the policy before you buy it. Cashless health claims also can get rejected if you are not aware of the limitations. Being aware of exclusions helps you make a rational decision.
  3. Claim settlement ratio:
    The claim settlement ratio or incurred claim ratio of the health insurance company is an important consideration while buying your cashless health insurance. As the ratio signifies company’s potential to pay claims, it’s ideal to go with cashless health plans of insurers with high claim settlement ratio.
  4. Co-payment:
    Co-payment refers to portion of medical expenses that needs to be paid by you as an insured before placing the claims with the insurance company. Hence, it’s important to look for policies that have no co-pay clause.
  5. Network hospitals:
    Cashless facility can be availed only at network hospitals of the insurance company. Hence, to avail treatment without any hassles anytime, it’s good to go with insurer having wider hospital network.
  6. No claim benefits:
    No claim benefit is one of the common features in any cashless health insurance. Basically, you can avail this benefit for being healthy and not making any claim during policy year. Benefit for each claim-free year can be accumulated up to a maximum of 50% by most of the policies.
  7. Lifetime renewal:
    With the rising age, it’s difficult to get the comprehensive medical cover. Hence, it’s important to consider policies that are renewable for lifetime in order to avoid coverage hassles and high premium.
  8. Waiting period:
    Almost every cashless health insurance plan comes with waiting period, after which financial benefits can be claimed for specific treatments, illnesses and procedures. Policies with less waiting period can help you get financial aid without much waiting. Choose the policies based on your requirement.
  9. Portability:
    If you have to switch from one insurer to another for any reason, portable cashless health plans transfer all your earned benefits to the new plan. Hence, portability is an important consideration.
  10. Additional benefits:
    Health insurance policies do come with additional benefits like critical illness cover and accidental cover etc which can enhance your healthcare cover. Consider such features while buying cashless health insurance
  11. Cost:
    Though, the cost of the policy is not the primary consideration, it’s important to avail all the required benefits at an affordable cost. You can compare the quotes of various cashless health plans online on side by side basis.

How to buy cashless health insurance plans?

As most of the cashless health insurance plans are available on an online platform, buying is more convenient. Plan of your choice can be bought anytime, anywhere within a few clicks online. You can buy cashless health insurance plans through Turtlemint through following steps:

  1. Go to Turtlemint and choose the category of insurance as ‘health’
  2. Click on ‘buy new policy’ and select your profile details such as gender, members to be insured, age, health history and contact details etc.
  3. Compare the plans available and select the cashless health plan based on your need
  4. Provide necessary coverage details
  5. Make the payment online. That completes the buying process!

Documents required for buying cashless health insurance plans

Following are the documents required for buying cashless health insurance plans:

  1. PAN card is mandatory
  2. Age proof – Birth certificate/SSLC mark sheet/Voter ID/Passport etc.
  3. Identity proof – PAN card/ driving license/voter’s ID/ passport/aadhaar card, etc
  4. Proof of address – Driving license/passport/latest electricity bill/ telephone bill etc.
  5. PhotographsRequirement of pre-medical check-ups may vary depending on the policy’s terms and conditions.

What is the process of cashless health insurance claim?

Usually, in cashless health insurance policies, TPA (third party administrators) work like a bridge between the insurance company and the network hospitals that helps to speed up the claim process. Some insurance companies will have their in-house claim processing team which makes the process even quicker. Generally, TPAs or insurers will have their help desk set up in their network hospitals to help the claimant.

Cashless health insurance claim process may vary depending on whether it is emergency hospitalisation or planned hospitalisation. Let’s take a look at the process.

  • Cashless emergency hospitalisationDuring medical emergencies, if the insured gets admitted at any network hospital, following is the process to be followed for cashless claim:
    • Once the insured is admitted to the hospital, insured needs to show health card issued by his/her insurance company. Health card will have all the vital details such as name of the insurer, policy number and plan type etc.
    • Insured needs to contact TPA/insurance desk and initiate the cashless claim by filling up pre-authorisation request usually within 24 hours of hospitalisation
    • Third party administrator/insurance company will review all the initial documents submitted
    • Once the cashless request is approved by the insurance company further documents are to be produced by the hospital to expedite the claim process
    • Once final set documents submitted by hospital are verified, claim amount will be directly settled with the network hospital
  • Cashless planned hospitalisationIn case of planned hospitalisation at the network hospital for any treatment/procedures, following is the process to be followed:
    • You can go through the insurance company’s website to take a look at the list of network hospitals available for treatment or can seek this information by contacting the customer support team of the insurance company
    • Once you choose your preferred network hospital to get treated, you need to fill-up pre-authorisation cashless request form which can be downloaded online on TPA website or can be obtained from insurance desk at the hospital
    • It’s important to submit this pre-authorisation from within specified time limit prior to hospitalisation. Time limit may vary from insurer to insurer
    • Hospital authorities or an attending physician will also go through your request form, verify the details and sign
    • The submitted request form will then be checked by TPA/insurance desk for eligibility and authenticity
    • Post verification by insurance desk or TPA, approval will be sent to network hospital for cashless treatment
    • On producing the final documents by hospital, payment of claim will be directly made to the hospital

    Documents required for cashless claim settlement

    Requirement of documents may vary on claim to claim basis. However, there are certain common documents that are needed for cashless health claims. Following are the documents required:

    1. Claim form duly filled and signed
    2. Doctor’s advice for hospitalisation
    3. Discharge summary of the hospital
    4. Doctors’ prescription, treatment details along with original medical bills and receipts given by hospitals, diagnostic centres, doctors and pharmacies
    5. Diagnosis reports (ECG/Scan/X-ray, Lab test reports etc)
    6. Police FIR copy for accident cases
    7. Health card copy, etc.

    Exclusions under cashless health insurance

    Though, cashless health insurance policies provide comprehensive coverage against most of the medical emergencies and health conditions, there are certain exclusions applicable under these plans. Some of the exclusions come with waiting period, thus temporary in nature. Some of the medical costs are permanently excluded from the policies. Let’s take a look at exclusions under cashless health insurance.

    • Temporary exclusions
      • Medical expenses incurred during the first 30 days (initial waiting period) of the policy
      • Specific medical illnesses/treatments – usually come with the waiting period of 12 -24 months
      • Pre-existing illnesses – usually come with the waiting period of 24 -48 months
      • Maternity expenses – Generally come with the waiting period of 9 months to 6 years
  • Permanent exclusions
    Following are some of the general exclusions under cashless health insurance:

    • Non-medical expenses
    • Pregnancy and childbirth
    • Fertility treatments
    • Sexually transmitted diseases
    • AIDS/HIV
    • Self-medication/treatment
    • Unproven and experimental treatments
    • Congenital illnesses
    • Mental disorders/illnesses
    • Cosmetic treatments
    • Treatments received outside geographical limits
    • Self-inflicted injury
    • Breach of law
    • War and nuclear perils
    • Alcohol and drug abuse
  • To conclude, cashless health insurance plans give you peace of mind and sense of complete financial security against various health issues and emergencies without having to worry about personal financial condition. With a wide variety of plans available for purchase online, compare them on a cost-benefit basis and secure your health!

Pradhan Mantri Jeevan Jyoti Bima Yojana(PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY) – Differences and Similarities 

The honorable Prime Minister of India, Mr. Narendra Modi, has introduced several insurance schemes for the general public of India. These schemes are aimed at social welfare and provide good insurance coverage at low premium rates. Among the different schemes which have been launched by the Prime Minister, there are two popular insurance schemes – PMJJBY and PMSBY. Let’s understand what these schemes are all about and do their comparative analysis –

Meaning of PMJJBY and PMSBY

  • What is PMJJBY or Pradhan Mantri Jeevan Jyoti Bima Yojana?

Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) is a pure term insurance plan. The plan offers life insurance coverage for one year. If the insured dies during the period of coverage, the sum assured is paid. The sum assured under the scheme is INR 2 lakhs and the premium is INR 330.

Know more about Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) with the help of this video

  • What is PMSBY or Pradhan Mantri Suraksha Bima Yojana?

Pradhan Mantri Suraksha Bima Yojana is a personal accident insurance plan. This plan covers accidental death, permanent total disablement and permanent partial disablement. The policy runs for one year and can be renewed annually. The coverage amount for death and total disablement is INR 2 lakhs and for partial disablement, it is INR 1 lakh. The premium is INR 12.

Know more about Pradhan Mantri Suraksha Bima Yojana (PMSBY) with the help of this video

Similarities between PMJJBY and PMSBY

Both the insurance schemes, PMJJBY and PMSBY have various similarities between them. These include the following –

  • Both the schemes run for one year after which they can be renewed.
  • PMJJBY and PMSBY are both voluntary insurance schemes. You can choose to be covered under these schemes if you want.
  • The coverage level for death under both PMJJBY and PMSBY schemes is INR 2 lakhs.
  • The coverage period of both the schemes is from 1st June to 31st May
  • PMJJBY and PMSBY are both sold through insurance companies as well as participating banks. In case you have multiple bank accounts, you can avail coverage from anyone account only.
  • The payment of premium under PMJJBY and PMSBY scheme is done through auto-debit from your bank account.
  • Both the PMJJBY and PMSBY schemes can be bought even when you have other insurance schemes in your name.

 

Differences between PMJJBY and PMSBY

Though PMJJBY and PMSBY share similarities, saying that these schemes of insurance are alike is wrong. Both PMJJBY and PMSBY schemes are completely different from one another. Let’s understand how –

Basis of distinction PMJJBY PMSBY
Type of scheme This is a life insurance term plan. This is a personal accident insurance plan.
Nature of insurance This is a life insurance policy This is a general insurance policy
Coverage offered Under PMJJBY, death during the coverage duration is covered. This death can be accidental or due to natural causes. Any type of disability suffered is not covered under the plan. PMSBY scheme covers accidental deaths, permanent total disability and permanent partial disability. Natural deaths are not covered under the plan.
Benefit payable If the insured dies during the term of the policy, the sum assured is paid which is INR 2 lakhs. The benefit payable under PMSBY scheme depends on the contingency suffered by the insured. In case of accidental deaths and permanent total disablements, the sum insured of INR 2 lakhs is paid. However, in case of permanent partial disablement, the benefit payable is INR 1 lakh.
Premium rate Under PMJJBY scheme, the premium payable for the coverage is INR 330 PMSBY has a lower premium compared to PMJJBY scheme. The premium payable for personal accident coverage is only INR 12
Eligibility For enrolling under the PMJJBY scheme, you should be aged between 18 and 50 years. Life insurance coverage would be available up to 55 years of age. Coverage under PMSBY scheme is available to individuals who are aged 18 to 70 years. Coverage is also available until 70 years of age.
Waiting period for claims There is a waiting period for natural deaths under PMJJBY scheme. The waiting period is 45 days. However, there is no waiting period for accidental deaths. There is no waiting period under PMSBY scheme. Coverage is available from Day 1

Both PMJJBY and PMSBY insurance schemes are designed for providing low-cost coverage to the Indian population. The schemes have become quite popular ever since they have been launched given the ease of application and the affordable premium rates. So, if you also want to apply for the PMJJBY and PMSBY schemes, understand what the schemes are all about and their similarities and differences and then buy a scheme for your coverage needs.

However, if you wish to increase your life insurance coverage or opt for health insurance, you can visit https://www.turtlemint.com/

Insurance Definition Types Benefits Features India

Insurance is the most effective risk management tool which can protect individuals and businesses from financial risks arising out of various contingencies. The emotional and psychological loss can never be compensated, but at least the financial loss can be compensated with insurance. Though there are uncertainties in life which you cannot mitigate, but insurance will surely help you transfer the financial risk associated with the same.

What is insurance?

Insurance is a legal contract between two parties- the insurance company (insurer) and the individual (insured), wherein the insurance company promises to compensate for financial losses due to insured contingencies in return for the premiums paid by the insured individual. In simple words, insurance is a risk transfer mechanism, where you transfer your risk to the insurance company and get the cover for financial loss that you may face due to unforeseen events. And the amount that you pay for this arrangement is called premium. There is insurance available for various risks, starting from your life to mobile phones that you use. In the end, it’s essential to protect what is ‘important’ to you.

How does insurance work?

The concept of insurance works on the basis of ‘risk pooling’. When you buy any type of insurance policy from the insurance company for a specified period with specific cover, you will make regular payments (referred to as premiums) towards the policy. Similarly, Insurance Company collects premium from all of its clients (referred to as insured) and pools the money collected to pay for losses arising out of an insured event. In case the insured event takes place, and you make a claim, losses will be compensated by the insurance company from the pool of policyholder’s premiums. In case you don’t make a claim during the specified policy period, no benefits will be paid to you. However, there are various types of products offered by insurance companies today which also involve savings element attached to it.

Types of insurance available

There are various types of insurance products available in India. Mainly, insurance products are classified as:

  • Life insurance products
  • General insurance products
    Life insurance covers you against the risk of death. Life insurance policies come in many variants such as term plans, endowment plans, whole life insurance plans, money back plans and unit-linked investment plans etc. Many life insurance products can be a great tool for long-term savings also as it comes as a combination of protection and savings. General insurance products cover financial losses caused by various risks other than death. General insurance products come in various types covering a wide range of risks such as health insurance, motor insurance, marine insurance, liability insurance, travel insurance and commercial insurance etc.
    Insurance is an effective risk management tool that protects what is precious for us –life, health, home and businesses etc. The requirement of insurance may vary from one individual to another, but there are certain types of insurance products that are must-have for every individual for ensuring a secure future.

Must-have insurance products

Knowing the importance of insurance is the need of the hour. Following insurance products are the must-have for any individual today.

  • Life insurance:
    As no one wants to leave their loved ones financially shattered, life coverage is one of the must-have for every individual having dependents. In case of life insurance, the sum assured or the coverage amount will be paid out to the nominee of the insured in the event of the death of the insured. Life insurance is a crucial requirement to ensure the financial well-being of your loved ones even in your absence. The coverage amount opted should be able to provide complete financial protection – to replace income loss, to repay debt and also to create a financial buffer that can be utilised by insured’s family for future financial stability. Though life insurance products come in many variants, it’s important to first avail the term insurance with adequate coverage.
  • Health insurance:
    Health uncertainties are part of life. Keeping in mind the rising cost of healthcare and an increasing number of diseases, it’s important to have the financial cushion to protect yourself against health contingencies. Health insurance policies are of many types such as individual health insurance, family floater health insurance, critical illness health insurance and senior citizen health insurance. It’s important to have adequate health insurance coverage that can protect you from financial crisis during medical emergencies.
  • Motor insurance:
    Motor insurance policies are the mandatory legal requirement in India for every vehicle owner under the Motor Vehicle Act. Be it two-wheeler, car or a commercial vehicle, its compulsory to avail third party liability motor insurance to protect oneself against the claims that may arise from another party during an accident. However, motor insurance policies come in a comprehensive package wherein your valuable assets (bike or car) are covered against the various risk of damage or loss along with the personal accidental cover to you as the owner. Keeping in mind the rising incidents of road accidents and the asset value, it’s most important to have a comprehensive motor insurance policy.
  • Accident and disability insurance:
    Accidents are unexpected and are inevitable. Sometimes accidents can result in disabilities that can further have huge impact on your earning capacity. In order to have financial stability for yourself and your family, it’s important to be insured against accidents.
  • Home insurance:
    Home is one of your most valuable possessions that also includes many precious belongings and memories. Though you try to secure it to the fullest, your property is exposed to various risks like theft, damages due to natural disasters etc. which you may not be able to mitigate completely. Hence, in order to protect your home against losses and damages that may arise due to many insurable events, availing home insurance is the most effective solution.Though you need to be prepared for future uncertainties by availing insurance cover, you may not need all types of insurance. The priority of any insurance product may vary depending on your individual need. Insurance is a large industry with numerous product types available to cater to every sort of need. Some of them mentioned already are of top priority for every individual. Priority of rest other types of insurance may purely depend on your unique need or situation. Let’s take a look at some of the insurance types that are of lesser priority.
  • Standalone critical illness insurance:
    Critical illness insurance plan may not be needed for every individual, specifically, if you do not have any family history of critical illness. Critical illnesses are sometimes covered in health insurance plans and also comes as a rider along with life insurance plans. Hence, a standalone cover for critical illness depends purely on the requirement of an individual.
  • Travel insurance:
    Travel insurance may be the priority for frequent travellers. But, it may not be needed for all. The need for insurance may vary depending on each individual’s unique needs. For example, if you are planning a domestic trip and your comprehensive health insurance plan covers you across the country for any medical emergencies, travel plans may not just be needed for you. More specifically, the travel insurance plan may not be your priority if you can afford to lose your pre-paid trip expenses. Sometimes travel covers also come as your credit card travel benefit.Likewise, there are many insurance types that are not suitable or required for every individual. It’s important to think about the benefits that you can reap before investing in an insurance plan.

How to decide on the type of insurance you need?

Before you buy any insurance, it’s important to understand the need for insurance. Here are certain things to keep in mind at the time of deciding what type of insurance you need.

  • Purpose of cover
  • Risks that you want to be covered against
  • How long you might need the coverage
  • Affordability

List of benefits and importance of insurance
Insurance is a risk management tool not only benefits the individual and businesses but also benefits the society and economy in numerous ways. Following are some of the important benefits of insurance:

  • Provides peace of mind:
    Insurance provides protection against various uncertainties that can put you or your family in financial crisis. By covering the uncertainties of human life and businesses, insurance provides a sense of security. Having life insurance gives you peace of mind that the financial stability of your family will remain intact even when you are not around. Having health insurance gives you a sense of security that you do not need to shell out all your savings in the event of medical emergencies.
  • Promotes risk control:
    As insurance works on risk transfer mechanism, it promotes risk control activity.
  • Promotes economic growth:
    As insurance funds are invested in various projects like water supply, power and roads etc, it contributes to the overall economic growth of the nation. Also, insurance provides employment opportunity to people. Insurance contributes to economic growth in many other ways such as getting Foreign Direct Investment, paying taxes on the profit earned and by investing in the capital market etc.
  • Distribution of risk:
    Risk of insurance is spread across various individuals and organisation instead of concentrating on only one.
  • Helps to get loan easily:
    There are loan facilities offered against insurance policies. In case of home loans, having an insurance cover can help to get the loan easily from the lender.
  • Inculcates savings habit:
    There are many life insurance products that come with investment cum protection benefit. Such products inculcate a regular saving habit among individuals. Plans like endowment insurance plans help in achieving long-term financial goals. Pension plans help to receive regular income flow in older age.
  • Provides tax benefit:
    Insured gets the tax benefits for premium paid depending on the insurance product type. For example, the premium paid towards life insurance plans qualifies for tax deduction under Section 80C of the Income Tax Act. And, the premium paid towards health insurance plans qualifies for tax deduction under Section 80D of the Income Tax Act.

Following are some of the examples that demonstrate the importance of insurance:

    • Case 1:
      Ram, a software engineer living in Bangalore meets with an accident and dies on the spot leaving his wife and son in deep emotional shock. He was just 40! He also has a home loan of INR. 30 lakhs running. Luckily, Ram has taken a term insurance cover of INR. 1 Cr. at the age of 32 years for 25 years of the policy tenure. His wife received compensation from the insurance company within 10 days which helped her pay off the debt and invest the corpus for future needs. If he had not taken the wise decision of investing in life insurance, his family would have been a huge financial crisis today! Insurance is important to secure your family’s future.
    • Case 2:
      Sunil, an employee in a multinational company in Mumbai suddenly fell unconscious due to high fever. He was then rushed to the nearest hospital. He was admitted for 3 days in the hospital for diagnosis and treatment. When he was discharged after 3 days, his hospital bill came up to around INR. 70,000. Luckily, he had taken a health insurance coverage for INR. 3, 00,000. As the hospital was listed in the network hospitals of his insurer, bills were directly settled to the hospital. If he had not known the importance of insurance, he would have to pay INR.70, 000 out of his pocket. Insurance helps you to have financial stability during unforeseen events.

To conclude, shield your life and important assets against all the uncertainties with the help of insurance. Know what insurance coverages you need, compare and invest wisely. It’s important to understand that the need for insurance is to secure what you love.

Cashless mediclaim policy in India

Having an adequate health cover is an essential requirement of today. Considering the rapid rise in lifestyle diseases, road accidents and inflated cost of healthcare, mediclaim is one of the most important investments one has to make. An unfortunate accident or a sudden illness can lead to huge amount of out-of-pocket medical expenses without having the right cashless mediclaim insurance policy. With the rising rate of healthcare inflation, treatment cost for minor illness can also deplete your savings and become a financial burden. Due to this rising concerns of treatment cost, many insurers are now offering mediclaim policies with cashless facility. 

Overview of cashless mediclaim policy

Cashless mediclaim policy is an excellent solution to protect yourself against sky-rocketing medical expenses in the event of hospitalisation for an illness or due to an accident, without having to incur any out-of-pocket expenses. Basically, insurance companies are tied up with various hospitals across the country for the cashless facility which are referred to as ‘network hospitals’. On availing treatment at any of the network hospitals, medical bills will be directly settled to the hospital by insurance company. ‘Cashless mediclaim policy’ comes as a blessing in the event of medical emergencies by ensuring you complete financial security and peace of mind. When compared to reimbursement mediclaim policies where you pay medical bills first and then get them reimbursed from insurance company, cashless mediclaim is extremely beneficial in the time of need.

Types of cashless mediclaim policies in India:

You can safeguard your financial well-being and your health by investing in various types of cashless mediclaim policies available in India. Indian insurance market offers various types of mediclaim policies depending on the need of people. Following are the major types of cashless mediclaim policies available in India:

  1. Individual cashless mediclaim policy:
    Under individual cashless mediclaim policy, an individual is provided a specific amount of medical coverage for a specified period of time. The coverage offered can be claimed for hospitalisation expenses whenever the insured individual is in need of it.
  2. Family floater cashless mediclaim policy:
    Under Family floater cashless mediclaim policy, all members of the family are covered under a single policy with one fixed sum insured. The policy generally covers self, spouse and dependent children. Many policies even cover dependent parents and parents-in-law. The coverage provided under the policy can be utilised by any insured member of the family during the policy period for hospitalisation expenses.
  3. Senior citizen cashless mediclaim policy:
    Unique healthcare needs of old age people are covered under senior citizen cashless mediclaim policy. These policies are carefully crafted to take care of senior citizen’s hospitalisation expenses in the crucial stage of their life. 

How to avail cashless mediclaim (planned /emergency)?

With the cashless facility offered by mediclaim policies, you don’t need to run around arranging for the funds in the time of medical emergencies. You can locate the nearest network hospital of your insurance company and avail the cashless mediclaim facility without having to incur any out-of-pocket cost, wherein insurer directly makes the payment of medical bills to the hospital. 

Third party administrator (TPA) coordinates between hospital and the insurance company in the process of cashless mediclaim settlement. There will be insurance desk set up in every network hospital to help initiate the cashless claims. Cashless mediclaim services can be availed in two ways during hospitalisation:

Cashless claims for planned hospitalisation:

In the case of planned hospitalisation, you will have good enough time to choose your preferred hospital out of list of your insurer’s network hospitals for availing treatment. Following is the simple process to follow for availing cashless treatment in case of planned hospitalisation:

  1. Choose the network hospital by referring to your insurance company’s website for list of network hospitals or by calling up your insurer’s customer care
  2. Once you choose the hospital for your treatment, contact the hospital’s insurance desk and fill-up pre-authorisation cashless request form which can be downloaded online on TPA website or physical copy can be obtained from insurance desk at the hospital
  3. Submit the pre-authorisation cashless request within the time limit specified by your insurance company. Details filled in the request form will be verified and signed by the hospital authorities
  4. TPA/insurance desk will check the eligibility and authenticity of pre-authorisation cashless request submitted by you
  5. Upon verifying the request, TPA will either approve or reject the request placed
  6. Sanction letter will be issued to the hospital mentioning the amount approved
  7. On producing the final documents by hospital, payment of claim will be directly made to the hospital

Cashless claims for emergency hospitalisation:

In the case of a medical emergency that requires immediate medical care, cashless claim can be initiated after getting admitted at the nearest network hospital. Following is the simple process to follow for availing cashless treatment in case of emergency hospitalisation:

  1. Upon getting admitted at the nearest network hospital, show your policy document/card to the hospital. The document will contain necessary details like policy number, policy type and name of the insurance company etc. 
  2. Contact insurance desk of the hospital and fill up pre-authorisation request form within 24 hours of hospitalisation
  3. Third party administrator/insurance company will review you pre-authorisation request and other documents submitted
  4. Once documents are verified, TPA will either approve or reject your cashless claim request. If the claim is approved, cashless treatment can be availed
  5. Once final set documents submitted by hospital are verified, claim amount will be directly settled with the network hospital

Reasons for claim rejection in cashless mediclaim policy:

Cashless insurance claims also can get rejected for various reasons. However, some of them can be avoided with a little care. Let’s take a look at the reasons for rejection of cashless claims.

  1. Unawareness of claim process:
    Sometimes not being aware of the claim process and not following the process diligently can lead to rejection of claims. For example, not following the time limit for placing the claim may become a reason for rejection. Filling up the wrong information in the form, not submitting the right documents etc. could lead to rejection of cashless claims. Knowing the claim process properly and taking help of insurance company’s customer support team for the information can help reduce such type of claim rejections.
  2. Pre-existing conditions:
    Pre-existing health conditions is one of the top reasons for rejection of cashless claims. Some of the pre-existing health conditions at the time of the policy are not covered under the cashless mediclaim policies temporarily for a certain period of time, which may vary from 24 months to 48 months. During this waiting period, expenses incurred for treatment of pre-existing illnesses are not covered by cashless mediclaim policies. Placing the claim for pre-existing medical conditions during the waiting period is one of the reasons for rejection of cashless claims.
  3. Non-disclosure of information:
    Holding back the information at the time of buying cashless mediclaim policy is one of the main reasons for claim rejections later. For example, not disclosing the details about a pre-existing health condition while purchasing the cashless mediclaim policy can become reason for claim rejection later.
  4. Exclusions:
    Though cashless mediclaim policies cover all the major hospitalisation expenses, policies do come with certain exclusions. For example, treatment expenses incurred for hospitalisation relating to sexually transmitted diseases, AIDS/HIV are not covered under cashless mediclaim policies. Claims cannot be raised for expenses that are permanently excluded from the policy. Claims raised for exclusions will lead to rejection of claims.
  5. Policy period:
    Cashless mediclaim policies are insurance contract for a specific period of time called policy period. Once the policy expires, coverage provided under the specific policy stands invalid. Any claim that is raised after the expiry of the policy period and before the renewal leads to rejection of claims.

Points to remember before buying cashless mediclaim policy:

Buying the ideal cashless mediclaim policy is a daunting task considering the huge variety of plans available in the market. To make a rational purchase, there are certain important points that you need to consider. Following are the important points to consider at the time of buying cashless mediclaim policy:

  1. Right coverage:
    Remember to choose the right amount of coverage for your cashless mediclaim policy keeping in mind the healthcare inflation. Having an adequate amount of coverage provides complete protection.
  2. Network hospitals:
    Ensuring your preferred hospitals are there in the list of your insurer’s network hospitals is really important to avail the timely cashless treatment. It’s good to go with insurance companies having wider network of hospitals. Wider network helps in getting timely medical care, quality treatment along with making it all the more convenient for you.
  3. Waiting period:
    Almost every cashless mediclaim policy comes with certain waiting period for treatment of pre-existing illnesses and for certain specific treatments and illnesses. During the waiting period you cannot make any claims for the treatment of such illnesses or medical conditions. It’s ideal to choose the policies that come with lesser waiting period. However, this may depend on your healthcare requirements and present health conditions.
  4. Renewability:
    Considering the difficulty in getting the mediclaim policies with increasing age, it’s always better to go with policies that offer lifelong renewability. Such policies can be renewed for lifetime without compromising on the coverage.
  5. Value adds:
    Though cashless mediclaim policies are primarily meant for covering hospitalisation expenses during illnesses and accidents, you can expect certain additional benefits under the policy such as free medical check-ups and maternity benefits etc. Depending on your requirement, avail policy with some value adds.
  6. Incurred claim ratio:
    Ratio of claims settled by the insurance company is an important consideration at the time of buying cashless mediclaim policy. Insurance company with high claim settlement ratio ensures that your claims are settled quickly and conveniently without any hassles.
  7. Cost:
    Though buying decision cannot just be based on cost of cashless mediclaim policy, exorbitant premiums may hit your yearly budget. Hence, consider plans that can provide you much needed coverage within your affordability range.

Cashless mediclaim policy is an amazing solution to safeguard your financial well-being in the event of medical emergencies. Cashless facility helps you avail quality medical treatment at the right time. You can buy cashless mediclaim policy on Turtlemint by comparing various plans side by side based on various parameters and choose the right one for you.

Frequently Asked Questions (FAQ’s)

What are the factors that affect cashless mediclaim policy’s premium?

Mediclaim insurance premiums are determined based on numerous factors. Following are some of the important factors that affect your cashless mediclaim policy’s premium:

  • Age
  • Pre-existing medical conditions
  • Habits such as alcohol and drug abuse
  • Family health history
  • Profession
  • Marital status, etc.

What is ‘free look period’ in cashless mediclaim policy?

Free look period in cashless mediclaim policy refers to time given to new policyholders to understand the terms and conditions of the policy and terminate the policy without penalties, in case he/she is not satisfied with the terms and conditions of the policy. Usually, most of the cashless mediclaim policies come with 15 days free look period within which policy can be cancelled without penalties. However, it’s important to state the reason for cancellation.

What are the tax benefits of cashless mediclaim policy?

Premiums paid towards cashless mediclaim plans can be claimed as a tax deduction under Section 80D of the Income Tax Act, 1961. Tax deduction can be availed on premiums paid towards health insurance plans taken for self, spouse, children and parents. 

Following are the details –

Description Upper limit on premium for self, spouse and dependent children Upper limit on premium for parents (dependent/non-dependent) Total deductions available 
All members of the family < 60 years of age INR 25,000 INR 25,000 INR 50,000
Self, spouse and children < 60 years age

Either of the parents > 60 years age 

INR 25,000 INR 50,000 INR 75,000
Self > 60 years age

Spouse and children < 60 years of age

Parents > 60 years age

INR 50,000 INR 50,000 INR 1,00,000

Can I have more than one cashless mediclaim policy?

Yes. You can have more than one cashless mediclaim policy.

5 consequences of driving without Car Insurance

Do you own a car? Great! Does your car also have a valid motor insurance cover on it?

Owning a car, while earlier classified as being a luxury, has now moved down to being a comfort. In fact, in metros, a car has almost become a necessity due to long-distance commutes. More and more of us are, therefore, buying a car. But are we also buying the mandatory car insurance policy?

Every car which is to ply on Indian roads should have a valid car insurance cover, states the Motor Vehicles Act, 1988. When you buy a new car, the choice of buying an insurance policy is, thankfully, taken out of your hands. The on-road price of the car is inclusive of the insurance premium for your car insurance policy. The problems arise when the policy expires after a year. Car insurance plans are usually issued for one year after which they should be renewed. If you do not renew it, you are driving a car without car insurance. If numbers are any indication, a study by New India Assurance revealed that about 70% of vehicles on Indian roads are without insurance. Is your car one among them?

If your car is one among them, simply click on the button below to browse the best car insurance plans, compare quotes, and renew your policy hassle-free

If yes, beware. Here are 5 consequences if you drive your car without having a valid Car Insurance policy:

Be prepared to pay heavy fines

Earlier, the Motor Vehicles Act, 1988 governed the road safety and traffic rules. Recently, the Government passed the Road Transport and Safety Bill 2014 to replace the Motor Vehicles Act, 1988. Among other changes, the Bill penalizes you heavily if you are caught driving without having a valid insurance cover. As per the amendments, you would have to part with a whopping Rs.25, 000 for a light motor vehicles or Rs.75, 000 for other motor vehicles as a fine for driving without insurance. A huge fine, isn’t it?

Pay losses for damages caused to third party or property

In an accident, if you unintentionally harm any person or surrounding property, you are liable to pay the loss incurred. This is called third party liability. Your car insurance mandatorily covers this third party liability and spares you the loss incurred. In the absence of a valid insurance cover, you would have to bear the losses incurred. If the person dies, your liability would be very high.

Read more Is third party car worth buying?

Pay losses for own damage

While you have to compulsorily pay losses caused to a third party, what about your losses. In an accident even your vehicle suffers damage. The costs of repairs for such damage are borne by your comprehensive car insurance policy. Without insurance, the onus of paying for the repairs is on you. With the high cost associated with the repairs of your car, a financial strain is inevitable.

Read more about All you need to know about car insurance

Face legal complications

Besides the financial loss suffered in an accident which causes damage to a third party and/or self, you would also be entangled in legal complications if your car is found without a valid insurance cover. You would be penalized, get a challan and might even be imprisoned.

Loss of No Claim Bonus

If your car insurance expires and you do not renew it, besides the penalties and fines, you also lose the No Claim Bonus which you accumulated in your existing policy. Car insurance plans allow a discount in subsequent year’s premiums if there is no claim in any current year. This discount increases every year and saves your premium outgo.  If you let your car insurance policy lapse, you lose the accumulated NCB and end up paying a higher premium when the policy is consequently renewed.

A car insurance policy is legally mandatory and not having one results in serious consequences (as mentioned above). While a third party liability cover is mandatory, a comprehensive policy is better. The former pays only for the damages caused to any third party but the latter also covers damages incurred by you and your car. The premium for a comprehensive policy is slightly higher because of higher coverage. For instance, the premium payable for a Maruti Ritz car registered in 2012 having a capacity of 1197cc would have a third party premium of Rs.2237 and a comprehensive premium of Rs.4200 (approximately). With a slight increase in the premium you can avail a higher coverage option which covers for your damages too. Since car repairs are expensive, a comprehensive policy makes more sense even if the premiums are a little high. So do not fall a victim to these consequences and buy an insurance policy for your car today.

Read more about Anatomy of car insurance plan

Read more about Car insurance terminologies you should know

Also, check the video below to know the 5 consequences of driving without car insurance

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Know how to check LIC policy status online

The Life Insurance Corporation of India was established in the year 1956 and up until the year 2000 LIC enjoyed a monopoly position in the life insurance segment. Even today, when there are more than 20 life insurance companies in the market LIC continues to have the largest market share. LIC India has a huge customer base which trusts the company and invests in different types of life insurance plans offered by LIC.

Being the oldest and most popular Life insurance companies in the country, LIC India has always managed to provide policyholders top-notch services and a variety of policies to suit everyone’s needs. You can browse LIC’s top insurance plans here.

When it comes to the range of products offered, LIC India offers the following types of insurance plans:

  1. Term insurance plans
  2. Whole life insurance plans
  3. Endowment plans
  4. Money-back plans
  5. Child plans
  6. Pension plans
  7. Unit linked insurance plans
  8. Health insurance plans

 

LIC India provides a diverse range of policy options in India. Choosing among: term insurance policy, whole life insurance policy, endowment policy, money-back policy or other offerings depends entirely on an individual’s needs. You can pick out the LIC policy as per your preferences.

You can buy any plan as per your suitability. To buy the plan, you are required to fill up a proposal form with your relevant information and submit the form with your documents. The first instalment premium would also have to be paid when the proposal form is submitted.

Once the form is submitted, LIC underwrites your risk and then issues you your insurance policy. After your LIC policy is issued, you might want to check your policy details. Even when you are an existing customer, you might want to check the status of your policy to check the term left, the surrender value, the bonus earned so far (if any) and any other relevant details of your policy.

Evaluating the status of LIC policy is easy and can be done according to the convenience of the policyholder. Apart from LIC, the ease and convenience is also provided by most of the insurance companies in India. The best life insurance plans offered by top insurance providers in India can be browsed by clicking here.

Checking your LIC India policy’s status can be done without visiting LIC’s branch offices. LIC allows its customers with easy ways to check the status of their policy. The status of a LIC policy can be checked in any of the following ways:

  • Online
  • Through an SMS
  • By calling the customer care number of the company
    Checking your LIC’s policy status online is, by far, the easiest and the most convenient method. You can check the status from your computer or Smartphone right from the comfort of your home or office and even on the go.

Enrolling LIC India policy online:

To check the policy status online, you would, first, have to enrol your LIC policy on the online portal of the company. Here is the step-by-step guide on how you can enrol your LIC policy online –

Steps to enrol LIC policy for first-time/new users

If you are a new customer of LIC and/or have not registered yourself for LIC’s online services, you are a new user. As a new user, first, you would have to create your LIC account and then you would be able to enrol your LIC policy. So, for creating your LIC account and enrolling your policy status, here are the steps:

  • Visit LIC India’s website https://www.licindia.in/
  • On the home page, choose ‘Customer Portal’ and you will be redirected to another page
  • On the next page choose ‘New User’ to register yourself
  • To complete registration you would have to provide the following details –
  • LIC Policy number
  • Premium amount
  • Date of birth (DD/MM/YYYY format)
  • Mobile number
  • Email Id
  • Passport and PAN number (optional)
  • Gender
    You would have to accept the terms and conditions and allow the stated mobile number to be used by LIC India for future communications
  • Click ‘Proceed’ wherein you would be taken to a new page where you would have to create your User ID and password
  • Once you choose a user ID and password and submit, your online LIC account will be created and you would become a registered user. You will be sent a verification email for completing your registration process. Click the verification link and your account would be created
  • Once your LIC account is created, log into your account using your user ID and password
  • When registering, if you selected ‘Yes’ to the question ‘Do you have any LIC policies?’ you would get an online policy enrolment form
  • Fill up the form stating the LIC policy number, premium amount, the name of the insured and other policy related details
  • Print the filled form and sign it. The form should then be submitted to the nearest branch of LIC from where you have purchased at least one policy
  • LIC would, then, verify the enrolment form and enrol your LIC policy online

 

Steps to enrol for registered users

If you already have a registered user ID and password for an online account, you can simply log into your account and enrol your LIC policy. To login, the steps are as follows –

  • Visit https://www.licindia.in/ and choose ‘Customer Portal’
  • Choose ‘Registered User’ and provide your user ID and password to log into your online LIC account
  • Along with your user ID and password, you would also have to provide your date of birth in DD/MM/YYYY format.
  • You can then select ‘Sign In’ to log into your LIC account
  • Once you enter your account, choose ‘Do you have LIC policies’ and answer ‘Yes’
  • You would get an online enrolment form
  • Fill up the form, take its print out, put your signature on the form and deposit the form at the nearest LIC branch office
  • The company would then verify the enrolment form and enrol your LIC policy online

 

After the LIC policy is enrolled, you can check the LIC online status of your policy. Let’s understand the process –

Things to remember when checking LIC policy details online 

When you are a new customer and are creating your user ID and password for the first time, here are some things which you should keep in mind –

  • Your policy number would be required. Therefore, you should keep the details of your LIC policy handy
  • You have the flexibility of choosing any user ID which you want. Your user ID can be alphabetical, numerical and it can have characters like a dot or an underscore
  • The length of your password should be between 8 and 30 characters. Set a password which you would be able to remember easily. Your password should be unique and kept confidential to prevent any fraudulent activities in your account
  • The details which are marked with an asterix (*) are mandatory. You would have to provide such details to proceed further and register or log into your account
  • Your area PIN Code should be a 6-digit number
  • The email ID which you provide when signing up should be valid so that it can be used for any type of communication later on
  • Your user ID should be unique. If it matches an existing ID you would be informed and you would have to choose a unique ID for your account

 

How to check the status of LIC policy details online?

To check the status of your LIC policy, the steps are as follows –

  1. Visit https://www.licindia.in/ and go to ‘Customer Portal’
  2. Choose ‘Registered User’ and log into your LIC online account
  3. Choose the LIC policy number whose status you want to check
  4. As you select the policy, the policy details page will open which would show the status of your LIC policy

 

How to check the status of LIC policy through SMS?

LIC also allows you to check the status and other policy details through a simple SMS. You have to SMS from your registered mobile number and you get the answer through revert SMS on the same phone. The SMS should be sent to 9222492224 with the following texts –

Policy query SMS to be sent
To know about the instalment premium payable under your LIC policy ASKLIC<Policy number>PREMIUM
To know about availing policy loan ASKLIC<Policy number>LOAN
To know about the current bonus rate and the vested bonuses in the plan ASKLIC<Policy number>BONUS
To revive a lapsed policy and to know about the revival ASKLIC<Policy number>REVIVAL
To check your existing nominee details ASKLIC<Policy number>NOMINATION

How to check policy status through customer care?

LIC has dedicated customer zones which help you with any type of LIC policy query that you have. The customer zones are active from Monday to Saturday and provide personalised assistance for all your insurance related queries, information, service requests, etc.

There are different customer zones for different cities. Here are the contact details of the customer zones of the top 50 cities –

Name of the city Customer zone contact number
Agra 0562-2524912
Ahmedabad 079-27490619, 079-27461032 and 079-27461662
Amritsar 0183-2560673
Bangalore IVRS Number: 080-26659230

Phone number: 080-22966528, 22966553, 080-22966836/896

Bhagalpur IVRSNumber:: 0641-2610024

Phone Number: 0641-2610011, 2610033, 2610099

Bhubaneshwar IVRSNumber:: 0674 – 2573996

Phone numbers: – 0674-2573910, 0674- 2573911

Bhopal 0755-2550242
Chandigarh 0172-2678107
Chennai IVRS Number: 044-28884300

Phone number.- 044-28611912, 044-28611642, 044-25331915 and 044-25331914

Coimbatore 0422-2300300
Cuttack IVRS Number: 0671-2307085

Phone Numbers. -0671-2307883,, 0671-2307889

Delhi 1800112552/ 011-23310868 and 011-22785930
Ernakulam 0484-2383883
Goa 0832-2490100
Guwahati 0361-2450389
Gwalior 0751-2630272
Gurgaon 0124-2576060, 2578060, 2570060
Howrah 033-2637-4387
Hyderabad IVRS Number: 040-23437997

Phone numbers- 040-23420730, 23420740 & 23420761

Indore 0731-2533523
Jaipur 0141-2702845
Jalandhar IVRS Number: 0181-2480918

Phone Number- 0181-2480967

Jamshedpur IVRS Number: 0657-2320600,

Phone Numbers – 0657-2443228 ,0657- 2443229

Jammu IVRS Number: 0191-2479717,

Phone Number- 0191-2479791

Jodhpur IVRS Number: 0291-2620079,

Phone Number- 0291-2657117 or 0291-2635076

Kanpur 0512-2307443
Kolkata IVRS Number: 033-22545454,

Phone numbers – 033-22124172, 033-22124176, 033-2337-0642 and 033 2419-8476

Kozhikode Manager- 0495 2725581

Executives 0495-2725583 IVRS 0495-2726006

Lucknow 0522-2614782
Ludhiana 0161-2424074
Madurai 0452-2370361
Mumbai IVRS Number: 022-26766221.

Phone numbers- 022-26788943, 022-27725968, 022-27723592, 022-28912605, 022-28913760 and 022- 28482907

Mysore IVRS Number: 0821-2346900

Phone Numbers – 0821-2341096, 2341099

Nagpur IVRS Number: 0712-2454820,

Phone numbers – 0712-2450083, 0712-2450080

Noida 0120-2444026
Patna IVRS Number: 0612-2201795,

Phone Number- 0612-2332033

Pune IVRS Number: 020-25514248,

Phone number – 020-25539790

Raipur 0771-2210010
Rajkot IVRS number: 0281-2570871,

Phone numbers: 0281-2581318, 2581319, 2483210

Secunderabad 040-27820146 and 27820136
Siliguri 0353-2545739
Surat 0261-2801833 and 2770227
Thane 022-25423226 and 25421474
Tirunelveli 0462-2577070
Trichy 0431-2741000
Trivandrum 0471-2335222
Varanasi IVRS Number: 0542-2222412,

Phone Number- 0542-2220457

Vellore 0416-2252202
Vijayawada IVRS Number: 0866-2484803,

Phone Numbers- 0866-2499595, 596, 597

Visakhapatnam IVRS : 0891-2523473

Phone no.: 0891-2558254 and 2513404

Checking your LIC Policy surrender value:

You can also check the surrender value of your traditional LIC policy online. Surrender value is the value that you would get when you surrender your policy before the completion of the plan term. Surrendering the policy can be done during the tenure of the plan by requesting the insurance company. The surrender value is calculated using the following formula –

Surrender value = [{Sum Assured * (number of premiums paid / total number of premiums payable)} + vested bonuses] * Surrender Value Factor

You can calculate your surrender value yourself or you can check your policy’s surrender value online in your policy details.

Why the LIC policy status should be checked timely?

You should do a periodic check of the status of your existing LIC policy. When you do a periodic check you can:

  • Find out the premium due date
  • See the remaining duration of the plan
  • Check the accumulated bonuses
  • Revive a policy which has lapsed
  • Make any type of service requests, etc.

Timely check, therefore, keeps you updated about your existing policy and you can plan your finances accordingly.

You can easily check your LIC policy’s status in different ways. Make the most of the facilities provided by LIC and keep a tab on your LIC policies to know your coverage.

With turtlemint, your hunt for the best insurance policies becomes easy. The leading insurance companies in India have a range of policies for all your life insurance needs. Click the button below and pave the way for a secured future.

Frequently Asked Questions

  • What are the charges involved in checking LIC policy status?

LIC policy status can be checked free of cost. There are no charged levied by LIC if you want to check your policy status. Checking the online status is completely free of cost. If you send SMS to know the status, the SMS rates of your mobile service provider might apply. Even in the case of customer care numbers, the call rates of your mobile service provider might apply when you call. Besides these, there are no additional charges levied by LIC when you check your policy status.

  • How many times can I check the status of my policy?

You can check the status of your LIC policy as many times as you like. There is no limit on the checks that you can do.

  • Is it necessary to enrol my LIC policy to check its status online?

Yes, enrolling your LIC policy online is necessary to check the status online. You have to enrol your LIC policies if you want them to reflect on your online user account and if you want to check their status.

  • What is ‘Add Policy’?

‘Add Policy’ is an option available on your online LIC account. Using this option you can add any other LIC policy that you have bought. Once the policies are added, their status can be seen online on your online LIC account.

  • Can I enrol only those policies in which I am the insured?

No, you can also add those insurance policies for which you are the policyholder whether or not you are the life insured. For instance, if you buy a policy on the life of your child and pay the premium, you would be the policyholder while the child would be the insured. You can add this child plan to your online account. Similarly, if you buy a policy on the life of your spouse, such a policy can also be added to your online account.

  • What is the benefit of adding policies online?

When you add your LIC policies to your online account, you can check the details and status of all your policies at one place. You can, therefore, get a complete picture of your insurance plans centrally on LIC’s website.

 

Cheapest Car Insurance Policy India

Car insurance policies are a must if you own a car. The Motor Vehicles Act, 1988 lays down the traffic rules which are to be followed by vehicles that run on Indian roads. One such rule imposed by the Act is the requirement of a valid car insurance policy. So, besides needing a driving license to drive, you also need a valid car insurance plan.

 Car insurance types

There are two types of car insurance policies which are available in the market. These are as follows –

  • Third party policies which cover only the third party liabilities which you face if your car causes any third party damage. This damage includes physical and bodily injury to third parties as well as property damage. Third party coverage is the mandatory coverage for cars as specified under the Motor Vehicles Act, 1988.
  • Comprehensive policies which have two coverage benefits. They cover the mandatory third party liability as well the damages suffered by the car itself.

List of the 10 best and cheapest car insurance plans

Here is a list showing the best and the cheapest car insurance policies available in the market –

  • HDFC Ergo Car Insurance Plans HDFC Ergo offers a range of car insurance policies for different coverage needs. There are long term plans as well as annual and bundled car insurance plans. The features which make HDFC’s car insurance plans one of the best include the following –
    • There is a network of more than 6800 cashless garages all over India
    • You get a range of add-ons to enhance your coverage
    • The company promises overnight car repair services in 13 main cities of India
  • TATA AIG Private Car Package Policy TATA AIG is also a leading name in the insurance industry which offers cheap car insurance plans. The features of TATA AIG’s car insurance plans are as follows –
    • There are 13 car insurance add-ons which promise to provide an exhaustive coverage
    • The premium rates are low and affordable
    • The company promises 24*7 assistance in case of claims
  • ICICI Lombard Car Insurance Plan ICICI Lombard’s car insurance plans have the following features which make them popular –
    • There are more than 3900 cashless garages tied-up with the company
    • Even lapsed car insurance plans can be renewed instantly
    • The company offers a comprehensive roadside assistance coverage in its car insurance plans
  • Royal Sundaram Car Shield Plan Royal Sundaram also offers cheap car insurance policies which have the following benefits –
    • Free roadside assistance cover is allowed under the policy.
    • There is an add-on cover which offers 100% purchase price to be paid in case of theft of the car or total loss.
    • The company is tied up with 4600+ garages across India for easy cashless claim settlements.
  • New India Private Car Policy New India is a public sector general insurance company which has a large customer base. This allows the company to offer cheap car insurance plans which have the following benefits –
    • Long term, annual and bundled car insurance plans are sold by the company
    • There are different add-ons to make the coverage comprehensive
  • Bharti AXA Car Insurance Plan Bharti AXA offers both comprehensive as well as third party plans. Its car insurance policies have the following benefits –
    • A range of add-on covers are available under Bharti AXA’s comprehensive policy
    • A network of 4500+ garages make availing cashless claims easier
    • The company offers round the clock claim related assistance
  • Reliance Car Insurance Policy Another leading name in the general insurance industry, Reliance offers a multitude of car insurance policies for its customers. The features of Reliance’s car insurance plans include the following –
    • The policy is issued and delivered within 10 seconds
    • There is a free roadside assistance cover under the plan worth INR 500
    • The company has a tie-up with more than 4450 garages all over India. This makes claim settlements easier.
  • Bajaj Allianz Car Insurance Bajaj Allianz offers cutting edge yet cheap car insurance plans. The features of the company’s car insurance plans include the following –
    • The company offers 24*7 spot assistance in case of claims
    • The Motor-on-the-spot feature allows you to make a claim through videos and images right from the spot of the accident
    • There are more than 4000 cashless garages which are tied-up with the company
  • IFFCO Tokio Car Insurance Policy IFFCO Tokio offers some of the best benefits in its car insurance plans which include the following –
    • There is unlimited zero depreciation cover which allows you to make multiple zero depreciation claims under the plan.
    • 24*7 roadside assistance is provided by the company
    • There is a network of more than 4300 garage in India for cashless claims
  • United India Motor Insurance Policies United India is another public sector general insurance company which offers both comprehensive and third party plans. The company offers cheap car insurance plans which have the following features –
    • Premiums are low and affordable
    • There are a range of premium discounts which further lower the premium
    • Inbuilt as well as optional coverage benefits are available under the plan.

These are some of the best plans which are also cheap.

Most important 5 benefits of car insurance policies

Besides being a mandatory legal requirement, car insurance policies also give you the following benefits –

  • If any individual dies in an accident involving your car, you face an unlimited financial liability. You might have to pay a huge amount of compensation to the bereaved family which would create a financial crisis for you. Car insurance policies cover this liability and pay the compensation on your behalf freeing you from the financial crisis which you might face otherwise.
  • Even in case of injuries suffered by individuals or any property being damaged, you are required to compensate for the financial loss caused. The car insurance policy covers this compensation as well giving you financial relief.
  • If you buy a comprehensive car insurance policy, you also get coverage for the damages suffered by your car. So, the repair costs are paid by the policy and you don’t have to shoulder the burden yourself.
  • If your car is stolen, a comprehensive car insurance plan pays you a lump sum benefit which allows you to bear the financial loss that you suffer.
  • There are useful add-ons under comprehensive car insurance plans which, when opted, promise assistance in case of car related contingencies. You are, therefore, assured of help in case of car related contingencies which makes it easier for you to face emergencies.

Car insurance plans are, therefore, beneficial. If you have a policy on your car, you would also be saved from high legal fines and/or imprisonment if you are found to drive your car without a valid cover. So, you should invest in a car insurance policy for your car.

Car insurance premiums depend on these 7 factors

When you buy a car insurance policy, you have to pay premiums on the same. The premium of your car insurance policy depends on the following factors –

  • Make, model and variant of the car which determines its value. The more expensive the car is the higher would be the premium.
  • Age of the car which reduces the value of the car due to depreciation. The older the car the lower would be its value and also the premium of the car insurance policy.
  • The type of policy you buy – third party plans have cheap car insurance premiums while comprehensive policies are expensive.
  • Fuel type of the car as the fuel variant determines the car’s value. Higher the value, higher would be the premium.
  • City of registration – cars in metropolitan cities have higher premium rates compared to non-metro cities
  • Add-ons selected – each add-on has an additional premium. If you select one or more add-ons, the premium would increase.
  • Policy discounts – there are different types of policy discounts available in car insurance plans. The higher the discounts that you can claim the lower would be the premium of the car insurance policy.

Top 7 tips for cheap car insurance policies

Now you know how the premiums of car insurance policies are calculated but do you know you can reduce them?

Yes, there are ways in which you can reduce the premiums of your car insurance policy to avail a cheap car insurance plan. These ways are as follows –

  • Avoid making small claims in your policy. When you don’t make claims you earn a no claim bonus. This bonus starts at 20% and keeps increasing after every successive claim-free year. You can get a maximum no claim bonus of 50% which allows you a premium discount. However, when you make a claim, the bonus reduces to zero and you don’t get the discount. So, if you have small claims, pay them yourself rather than losing your accumulated no claim bonus.
  • If you are a member of an approved automobile association, you can get a premium discount.
  • If you install safety gadgets in your car, you can get a premium discount and enjoy cheap car insurance coverage.
  • If you use your car sparingly or if the car is very old, you can opt for only third party liability cover. Since third party allows cheap car insurance cover, your premiums would be very low.
  • Choose only those add-ons that you require. For instance, if you don’t take your car on road trips, roadside assistance cover would not be required. Similarly, if you live in an area which has no water-logging problem in monsoons, avoid engine protect add-on. When you choose only the necessary add-ons, you can cut down on unnecessary additional premium payments and enjoy cheap car insurance cover.
  • Choose a voluntary deductible if you are a safe driver. Voluntary deductible represents the part of claim which you are willing to cover yourself. When you choose voluntary deductible, you lower the claim burden of the insurance company. Due to the reduced burden, the company offers you a premium discount.
  • Always compare and buy car insurance policies. Comparing lets you check the coverage details vis-à-vis premium rates of different car insurance plans. Through comparing you can get the cheapest car insurance policy for your car without compromising on the coverage.

Top 4 points to consider before investing in cheap car insurance policies

Before investing in cheap car insurance online, the following points should be remembered –

  • Skimping on the coverage If the premiums are very low, the coverage benefits would be limited. You would get what you pay for. The policy might not offer value-added benefits which provide better coverage. So, dot skimp on the coverage and buy cheap car insurance online just to lower the premium rates otherwise you would suffer huge claims which would prove financially disastrous.
  • Ignoring add-onsYou might choose to ignore the add-ons to save on the premium cost. Add-ons, however, are quite beneficial as they provide unmatched coverage and increase the amount of claim payable. So, don’t avoid add-ons which are necessary.
  • The flip side of deductibles If you are availing a premium discount by choosing a voluntary deductible, remember that you would have to foot the amount of deductible that you have chosen. There is already a component of compulsory deductible under car insurance plans which you have to pay in a claim. Choosing voluntary deductible would increase your claim burden. So, always weight the savings in premiums to the cost that you would be bearing. Choose voluntary deductibles only when it proves economical.
  • Claim processAlways check the claim process of the insurance company before buying the plan. If the company is offering cheap car insurance online but has a complicated claim settlement process, you would eventually suffer. So, pay heed to the claim process and choose an insurer which has a simplified process.Car insurance plans are mandatory but they don’t need to be expensive. Know how car insurance premiums are calculated and use the afore-mentioned tips to lower the premiums. Buy cheap car insurance policies from the best companies and enjoy plans with the best coverage benefits. Turtlemint is an online platform which lets you compare car insurance plans. Through Turtlemint you can compare the best policies and choose cheap car insurance online as per your coverage needs.

Top child investment plans in India

Children always hold a special place in your hearts. They are your bundle of joy and you try to bring your child up in the best possible way. That is why you choose the best education, the best clothes, the best food and also the best future for your child. Whatever you do for your child, it involves money. Whether you want your child to go to the best schools or have the best toys, you need money to fund your child’s dreams. Especially when your child wants to build a career for himself/herself you need sufficient funds for higher education. Given the rising cost of education, affording quality education for your child is tough. When it comes to higher education, the challenge becomes more difficult as higher studies are expensive.

When you are earning, you set aside funds for your child’s future expenses and higher studies. But what would happen in case of an unforeseen emergency? In case of your premature death, can you ensure a secure financial future for your child?

You can if you choose a child insurance plan.

Child insurance plans – meaning 

Child insurance plans are life insurance plans which help you plan for your child’s secure financial future. These plans aim to create a financial corpus for your child when he/she grows up whether or not you are alive. There is an inbuilt premium waiver benefit under child plans. This benefit kicks in when the policyholder, who is the parent, dies during the policy tenure. In case of death of the policyholder, the premiums are not required to be paid but the policy continues. The insurance company pays the premiums on behalf of the policyholder. Then, when the policy matures, the promised maturity benefit is paid. Thus, child plans promise a lump sum benefit on maturity even when the parent dies during the policy term. This lump sum benefit helps provide the child with the financial corpus necessary to pursue his/her dreams.

Salient features of child plans

Child plans have the following salient features –

  • Child plans can be offered as traditional endowment or money back plans or as unit-linked insurance plans.
  • The plans are available only for parents who have a minor child
  • The insured can be the parent or the child. Under most plans, the insured is the parent while the child is the beneficiary.
  • If the parent is the insured, in case of death of the insured during the policy tenure, the death benefit is paid immediately so that the family can deal with the financial loss suffered. The premiums are then paid by the insurance company and when the plan matures, a maturity benefit is paid.
  • If the child is the insured and the parent dies during the policy tenure, nothing is paid on such death. The premiums are waived off and the plan continues till maturity. If the child dies before the completion of the tenure, the death benefit is paid and the plan is terminated. However, if the child survives to maturity, the maturity benefit is paid.

Benefits of child plans

Child plans are highly recommended for parents who want to create an assured financial corpus for their child’s future. This is because of the following benefits which child plans provide –

  • Child plans create an earmarked fund for your child’s future. This fund is protected and grows even when you are not around to contribute towards its growth.
  • You can choose money back plans which pay a part of the sum assured at important milestones of your child’s life, i.e. at the time your child enrols for higher secondary, when your child graduates, when your child gets married, etc.
  • Unit linked child plans create a corpus which is inflation-proof and provides attractive returns as per the latest market trends.
  • The premiums paid towards child insurance are allowed as a deduction under Section 80C up to INR 1.5 lakhs. This helps in lowering your tax liability while at the same time planning for your child’s future. The benefits received, both death and maturity benefits, are also completely tax-free under Section 10 (10D). So, child plans help you save taxes and also create a tax-free corpus.

Top #6 child insurance plans in India

Now that you know that child plans are beneficial, you must be wondering which policy to buy for your child’s future. There are more than twenty life insurance companies in the market and each offers a child insurance plan. Thus, if you feel confused about choosing the best child insurance plan, here is a list of some of the best plan which you can find in the market today –

Name of the plan Type of plan Entry age limits Term of the plan Sum assured
LIC’s New Children’s Money Back Plan Participating money back plan 0 to 12 years 25 – entry age INR 1 lakh onwards
HDFC Life YoungStar Udaan Participating endowment and money back plan 30 days to 60 years 15 to 25 years Depends on the premium amount, age, term and plan option selected
HDFC Life Click2Invest Unit linked insurance plan 30 days to 65 years 5 to 20 years Regular or limited premiums – 7/10 times the annual premium

Single premium – 1.25 times the single premium

Bajaj Allianz Future Gain Unit linked insurance plan 1 year to 60 years 10 to 30 years Depends on the premium, age and policy term selected
LIC’s Jeevan Tarun Participating endowment cum money back plan 90 days to 12 years 25 – entry age INR 75,000 onwards
Bajaj Allianz Lifelong Assure Participating Whole life plan 10 to 55 years 100-entry age INR 1 lakh onwards
Bajaj Allianz POS Goal Suraksha Traditional endowment plan 18 to 55 years 10 or 15 years INR 30,000 to INR 10 lakhs

A brief overview of the best child insurance plans

Here’s a look into what makes the above-mentioned child insurance plans the best –

LIC’s New Children’s Money Back Plan 

This is a traditional money back plan which earns bonuses and, thereby, pays a substantial corpus. The child is the life assured and the parent is the policyholder. The plan’s features are as follows –

  • 20% of the sum assured is paid as money back benefits thrice during the policy tenure when the child attains 18 years, 20 years and 22 years of age.
  • There are two optional benefits under the plan. The first one is to postpone the money-back benefit wherein increased money back benefit is paid at a later date. The other one is the premium waiver rider which, if selected, waives the premium if the parent dies during the policy tenure.
  • Premium discounts are available in the premium is paid annually or half-yearly and also if the sum assured is INR 2 lakhs and above.

HDFC Life YoungStar Udaan

This is a participating traditional plan which gives you the option of buying the plan as an endowment plan or a money back plan. The plan’s features are as follows –

  • There are two death benefit options of Classic and Classic Waiver
  • There are three maturity benefit options of Aspiration, Academia and Career where Aspiration is an endowment option and the other two are money back options
  • 3% or 5% of the sum assured is added as guaranteed additions in the first five policy years
  • Premiums are payable only for a limited period

HDFC Life Click2Invest

This is a unit linked plan which gives market-linked returns as well as insurance coverage. The plan’s features are as follows –

  • Eight investment funds are available which suit the different risk profiles of different investors
  • Switching, partial withdrawals and premium redirection facility is available under the plan
  • The premiums can be paid regularly, for a limited duration or in one lump sum

Bajaj Allianz Future Gain

This is a unit linked insurance plan which has the following salient features –

  • There are two readymade investment strategies to choose from
  • The sum assured and the premium payment frequency can be changed during the policy tenure
  • Top-ups can be paid for increasing the investment into the plan
  • Five optional riders are available with the plan

LIC’s Jeevan Tarun

This is a child insurance plan which allows you the option of an endowment plan or a money back plan. The plan allows four benefit payment options. Under these options, you can either choose to receive the entire benefit in one lump sum or in the form of money-back payments. Other features of the plan are as follows –

  • The child is the life assured and the parent is the policyholder
  • There is an optional premium waiver rider which helps in waiving the premiums if the parent dies during the policy tenure
  • Premiums are payable only for a limited tenure
  • Premium discounts are available which help in reducing the premium amount

Bajaj Allianz Lifelong Assure

This is a participating whole life plan which runs till you reach 100 years of age. The plan’s features and benefits are as follows –

  • 3% of the sum assured is paid as cash backs after the premium payment term is over. The cashback is paid till you reach 99 years of age
  • On maturity or death, 200% to 300% of the sum assured is paid
  • There are five additional riders for a wider scope of coverage
  • Cash bonuses are paid from the end of the sixth policy year
  • Premiums are payable only for a limited period

Bajaj Allianz POS Goal Suraksha 

This is an endowment plan which does not earn bonuses and has affordable premiums. The features of the plan include the following –

  • Premiums are payable only for a limited period
  • The maturity benefit is guaranteed
  • Guaranteed additions are added to the plan corpus on the maturity of the plan

How to buy the best child insurance plan?

The above-mentioned plans are the best child plans available in the market today. However, when buying a plan, you should keep the following points in mind –

  • Buy a plan early when your child is young. The premiums would be low and you can choose long coverage duration. When the policy tenure is long you can create a good corpus over time.
  • Ensure that the sum assured is sufficient to take care of your child’s future expenses. A low sum assured would not provide the desired financial security and fall short in meeting your child’s requirements.
  • The tenure should be such that the policy pays the benefits when your child needs it. Match the tenure to that age of the child when money would be needed for higher education or marriage.
  •  Choose a plan based on your risk appetite. If you want guaranteed returns, go for traditional endowment or money back plans where the benefits are promised. However, if you are looking for market-linked returns, choose ULIPs.
  • Ensure that the premiums are affordable so that you can pay the premiums over the tenure of the policy.

Besides the above-mentioned points, you should also compare the available policies and then buy. Comparing lets you choose the policy which offers the best coverage benefits and has the lowest premium rates. To compare, judge the policies on the following parameters –

  • Coverage offered – the higher the better
  • Premium rate – the lower the better
  • The nature of the plan – it should suit your risk profile and requirements
  • Riders available – the plan should offer optional riders so that you can customise your coverage
  • Coverage duration – the plan should offer the duration that you need

Only after you compare the plans should you buy the best child insurance policy. To compare the best child insurance plans you can choose Turtlemint. Turtlemint is an online website which lets you compare the best child insurance plans offered by the leading insurance companies. All the above-mentioned plans can be found on Turtlemint’s website for easy comparison. You can also purchase the desired policy after you shortlist which plan you need. So, Turtlemint offers you a one-stop place to compare and buy the best child insurance plan.

Secure the future of your beloved child through child insurance plans. Compare and buy the best child plan and ensure that your child’s dreams are fulfilled even when you are not there to fulfil them yourself.

Frequently Asked Questions

  1. What is the difference between a beneficiary and a nominee?A beneficiary is one who is entitled to use the policy benefits. A nominee, on the other hand, is an individual who is authorised to collect the death benefit when the insured dies. The nominee might not be the beneficiary. The nominee’s only duty is to collect the death benefit. He/she might not be entitled to use the benefits himself/herself.
  2. What documents are required to buy a child insurance plan?To buy a child insurance policy you would have to submit the following documents –
    • A duly filled in proposal form which states all the details of the proposer and the life insured (if different)
    • Identity proof, age proof, address proof and photographs of the proposer/parent
    • Identity proof, age proof and photographs of the child
    • Income related documents of the parent if the sum assured is high
    • Any other documents as required by the insurance company.
  3. How much does it cost to insure a child?The cost of insuring the child depends on the child’s age, the sum assured, policy term and premium paying term. If the sum assured is high, premiums would be higher. Premiums also increase with an increase in the age of the child. If the policy duration is long, the annual premium would be less. Lastly, if the premium is paid annually, the premiums would be low compared to premiums paid half-yearly, quarterly or monthly.
  4. Up to what age can minor children be insured under child plans?If the child plan is being taken on the life of a child, the maximum entry age of the child is usually limited to up to 12 years.
  5. Can any parent buy a child insurance plan?Yes, either the mother or the father can buy a child insurance plan provided that the parent is an earning member.