Month: June 2022

How To Select The Best Family Health Insurance In India?

Ankita Sejpal

The adage goes ‘Health’ is ‘Wealth’, nothing else can describe it better. Among many other financial planning decisions you embark on, one of the most important decisions is hedging your health risk. If you have a family with dependent members, then it becomes pertinent that you ensure that all the members in your family are adequately covered. 

Why is family health insurance important?

There have been instances in the recent past, during the pandemic, where a single illness in the family has created financial setbacks. The past two years have been an eye-opener wherein it became apparent that the group insurance cover offered by the company may not suffice. Many individuals had to dip into their savings/investments to foot the hospital bills. This can be a major setback for them from the perspective of achieving their financial goals. There is enough data indicating that critical illnesses such as cancer can push families into abject poverty. 

These are reasons enough to emphasise the importance of health insurance, however, you must evaluate certain terms and conditions before you avail of the best family health insurance plan.

Read more about Family Health Insurance Plans 

Opt for Group Insurance Cover

If you can add your family members to the group insurance cover offered by your company, then it makes sense to avail of this option first. This is for the simple reason that the premiums of group insurance cover are relatively competent as compared to individual health insurance plans. Despite having a group insurance plan, you will have to evaluate your requirement and ensure that the group insurance health plan offers adequate coverage. In most cases, the group insurance cover falls short, as the coverage is too basic, with restrictions and sub-limits. From a family coverage perspective, you may have specific requirements which may not be covered under such broad-based standardised plans.

Hence, the evaluation of the gap is vital, you should avail of an additional insurance plan separately to ensure that you have covered all your requirements. In fact, to avail health coverage for the family, it is ideal that one evaluates family floater plans.

Family Floater Plans

These plans cover your immediate family members (children and spouse) with a single annual payment. These plans allow for multiple hospitalisation claims during the same year, provided the claim is well within the sum insured limit.

The premiums paid towards health insurance policy qualify for deduction under section 80D of the Income Tax Act up to Rs. 25,000 every year. The family floater plans offer coverage for all the members of the family at very competent premium rates.

Using a family floater option can help you create a customised plan which takes care of the specific needs of each family member.

Here are the top 5 considerations to evaluate family floater plans:

  1. Premiums and tenure

    This is by far the most basic aspect for consideration for any health insurance plan. For a family floater plan too, this remains the most basic consideration, the family floater premium rates are relatively lower than individual plans for each member of the family. This is because every family floater plan has a small pool of people with varying degrees of risk factors and from an insurance company’s perspective, a diversified risk pool reduces the risk of frequent and huge claims. It is advised that you conduct a comparison across products to choose the plan that offers the longest tenure and competent premium rates. 

  2. The extent of coverage

    Another important aspect is to evaluate the extent of coverage offered for the sum insured. This essentially means that the inclusions and more importantly, the exclusions of the plan should be studied in detail.

    Compare it across other plans which offer a similar sum insured coverage. The idea is to choose the plan which offers a wide range of inclusions and minimal exclusions. It is also pertinent to ensure that there are no loose ends when the exclusions are being listed. Also, check for the additional coverage that you can opt for such as maternity benefits, pre-existing disease coverage, etc.

    If things seem hazy, always reach out to the insurance company for clarity and seek documents which support their claim of coverage or exclusion. This can be handy for future reference. 

  3. Hospital list

    Most health insurance plans these days offer cashless coverage, this is applicable only if the treatment is sought in one of the network hospitals. If not, the insured has to undergo the rigmarole of reimbursements.

    It is practical to ascertain beforehand and ensure that the network hospital list covers those hospitals that are most accessible to you and provide world-class treatment/service. 

  4. Limits, co-payment, deductible and waiting period

    Many health insurance companies protect themselves by including limits and sub-limits. You must choose a plan with minimal limits and sub-limits, you may be required to pay a higher premium to ensure that the limits and sub-limits are minimal.

    This will provide you with a stress-free situation in case of hospitalisation and ensure that you get the best treatment irrespective of the cost.

    Check for co-payment clauses which could be applicable for senior citizens included in your family floater plan and opt for the one with the least amount of co-payment. Similarly, deductibles could lower the premium, but they might increase your overall outflow in case of a claim.

    Also, check for waiting periods in your health insurance plan, especially if any of the members have any pre-existing ailment at the time of opting for the health insurance plan. This is because you would not be able to raise a claim during that period for the specific ailment. 

  5. Add-ons and customisation

    Often, you or your family members may have specific medical conditions, and this may require a plan which is tailored to include the requirements. This could be through add-ons or special customisation. Check with your insurer if there is a clause which will specifically cover the situation/condition at hand. 

    6. By going over each of the above pointers, you will be able to choose the right family floater health insurance plan. This will ensure that you experience the least financial stress during health emergencies.

    DISCLAIMER
    This article is issued in the general public interest and is for educational purposes only. The blogs should not be used as a substitute for competent expert advice from a licensed professional to best suit your needs. 

6 Reasons For The Rise Of Health Insurance Premiums In India

Rupanjali Mitra Basu

Have you recently renewed your health insurance policy and suddenly seen a rise in the premiums? Well, let’s just say, you are not alone. There is an increasing trend in health insurance premiums in India. Here’s why:

  1. Higher instances of illnesses

    The environment has become increasingly unpleasant for human life to thrive, from climate change to increased pollution, we are all seeing the worst happening to the environment. This has led to a rise in diseases and critical illnesses. 

    Heart attacks and cancer cases in today’s times are much higher than what it was during the earlier years. It has also become increasingly prevalent among younger individuals, you hear of young individuals as less as 30 years losing their lives to heart attacks. The instance of hospitalisation among the younger population is also on the rise. The illnesses could also stem from increased stress levels, with the advent of social media, there are also increased mental health issues. Health insurance plans are slowly recognising this aspect and offering coverage for such illnesses as well. 

  2. Increasing lifestyle diseases

    There is the curious case of, ‘sitting becoming the new smoking’, with desk jobs being the trend these days, the number of people actively exercising is very low. This has also caused many lifestyle diseases such as thyroid, obesity, cholesterol, and diabetes. India is among the top nations in terms of the number of diabetic patients.

    Many youngsters fall prey to lifestyle diseases and are put on medication at a very young age. The increase in lifestyle diseases has led to more outpatient disposition/treatment instances. Many health insurance plans offer coverage for OPD treatment as well. The increase in claims has also led to an increase in health insurance premiums. Almost 75% of one’s medical treatments are usually OPD related, hence, there is a need for health insurance policies to offer coverage for lifestyle diseases. 

  3. Medical inflation

    Medical inflation in the last couple of years has hovered around 7.5% p.a to 8% p.a which is much higher than the regular inflation rate. However, in the year 2021, India saw medical inflation shoot up to 14% as per a report on Indian Health Insurance by Motilal Oswal Financial Services Limited (MOFSL). The inflation rate was the highest among Asian countries.

    In fact, among all Education costs and medical inflation costs are the two expenses where the inflation rates are rising at an unprecedented pace. The entire medical system including hospitals, research labs, lines of treatments, pharma etc., are all experiencing a very competitive environment. There is increased effort to stay competitive and manage to hold the market share, this has resulted in increased incurrence of cost due to advanced tech investments, higher / better customer service practice, and better marketing etc. This results in an increase in overall medical costs as the companies are eventually pressured to pass on the costs to the end consumer. 

  4. Claim statistics

    As per the report by MOSL, the covid related claims went up sharply, the claims accounted for 6% of the total claims paid out by all health insurance companies in India in the year 2020-21. The number is expected to be around 12% of total claims in the year 2021-22.

    These statistics indicate that Covid has been a game-changer and has exposed the vulnerability of people in terms of them being exposed to health hazards. It also made the health insurance companies relook at their risk factors, during the covid waves, several otherwise healthy individuals had to undergo hospitalisation and extreme lines of treatment.

    The risk factors were reassessed and the risk premiums were revised to accommodate these new environmental factors. Thus, increasing premiums across the board.

  5. Higher hospital charges

    Hospitals are constantly innovating and upgrading to provide best-in-class experiences to their clientele. A stay in the hospital has become synonymous with a stay at a luxury hotel with healthy and sumptuous food at its disposal.

    Hospitals are also investing heavily in technology to ensure that they cater to customers in the best possible way. The space is becoming extremely competitive, and with increased demand, the hospitals are also able to up the price of the services which are in limited supply.

    This calls for a higher quantum of the sum insured for the individual to ensure that he is adequately covered for any unforeseen hospitalisation. This results in the payment of higher premiums. 

  6. The increasing cost of sophisticated treatment

    The focus has always remained on a better line of treatment which eventually translates to a better patient success rate. The treatment costs are quite huge, compared to the earlier days. To be able to afford such treatment, there is a need to avail a higher sum insured for the policyholder.

Further, there are many alternate treatment lines like AYUSH which are undertaken in parallel to ward off any possible side effects from the mainline of treatment, especially in cases of critical illnesses. Many health insurance plans allow such parallel claims, these factors have contributed to the increase in premiums. 

These are only some of the factors which have contributed to the increase in premiums of health insurance plans. There is a major chasm between medical treatment accessibility and the general, middle-income public without health insurance. There are efforts to address this gap by the Government. However, all these aspects only point to one thing, the growing need for health insurance. There are different types of Health Insurance available as per your needs and if you have not hedged your health risk comprehensively, then it is time to do so!

Contact Turtlemint Health Insurance Advisor to get protection from rising costs and help you with your insurance needs now!

DISCLAIMER
This article is issued in the general public interest and is for educational purposes only. The blogs should not be used as a substitute for competent expert advice from a licensed professional to best suit your needs.

Are There Any Add-Ons Possible With A Third-Party Bike Insurance Plan?

Saumya Mehrotra

Just like toppings on a pizza that comes at an additional cost enhance the taste, add-ons on an insurance policy enhance the coverage but cost slightly more. The industry offers quite a few add-ons with your bike insurance policy as well. However, you need to know them all to be able to choose what suits your requirements the best!

Types of bike insurance plans in India

All bikes registered in India are mandated to hold at least a standard third–party insurance plan under the Motor Vehicles Act, 1988. Third-party insurance is the most basic form of coverage and hence is quite economical. Third-party bike insurance will cover only the liabilities or claims by the counterparty (third-party), property or vehicle in the unfortunate event of an accident.

Know more about Third-Party Bike Insurance.

On the other hand, comprehensive coverage will offer complete coverage, protecting you from a potential financial stress/burden arising from any unfortunate accident. It covers third-party legal liabilities and your own damage to your bike. Also, a comprehensive bike insurance plan can be enhanced with add-ons which can help you achieve the desired coverage for your vehicle and/or any other potential damage.

Know more about Comprehensive Bike Insurance Plans.

Thus, add-ons are benefits available to a comprehensive plan to enhance your coverage, which is not available to a third party only bike insurance plans!

Reasons to opt for add-on coverage:

The following benefits are extended by opting for add-on covers:

  • Coverage for fiscal liabilities on the loss of a two-wheeler due to theft
  • Death benefit and disability benefit for both rider and pillion due to an accident
  • Coverage for 24*7 roadside assistance in case you are stranded in the middle of nowhere
  • Coverage for depreciation of the vehicle
  • No claim bonus benefits 
  • Claims against most types of damages in the event of accident, theft etc.,

Clearly, a complete hedge against any possible untoward event is sought by availing of add-on coverage. This potentially avoids financial stress where one may have to make any out-of-pocket expenses.

Can third-party bike insurance plans have add-ons?

Third-party bike insurance plans are basic plans which give you the licence to ride your bike on the Indian roads so that in case you meet with an accident, your legal liabilities are taken care of by the insurance policy.

But, add-ons are not allowed on a Third-Party only Bike Insurance plan except for Personal Accident cover.

Additional Options in a third-party two-wheeler insurance plan:

The only options available in a third-party only bike insurance plan are:

  1. Long-term plans:

    For 2 or 3 years instead of 1 year, so that you do not have the hassle of renewing your bike insurance plan every year!

  2. Personal Accident plans:

    The government has mandated a minimum of Rs 15 lakhs of personal accident coverage for every individual who rides a bike in India. Under this cover, if you meet with a bike accident, you or your family would receive compensation for accidental death, disability or dismemberment from the MACT (Motor Accident Claim Tribunal).

    However, the personal accident cover is person-specific and not vehicle specific. This means, if you already have a personal accidental plan, either standalone or with any other vehicle, you need not purchase it with your third-party bike insurance plan.

    However, for Personal Accidental Add-on cover for your bike, you can receive the following benefits:

    1. In the case of Accidental Death, 100% of the compensation would be payable,
    2. In the case of Permanent Disability, 100% of the compensation would be payable,
    3. In case of any Partial Disability such as loss of one limb or one eye, only 50% of the compensation would be payable,
    4. In case of any Partial Disability such as loss of two limbs or two eyes or one limb and one eye, 100% of the compensation would be payable.

    Exclusions of Personal Accidental Add-on cover for your bike:

    Claim would not be payable for personal accidents under the following circumstances, such as:

    1. Driving under the influence of alcohol or any other intoxicating substances
    2. The deliberate action of breaking the law
    3. Not following the basic legal protocols or riding a bike such as not wearing a helmet, etc.
    4. Accident outside the specified geographical area of the coverage of the insurance plan.

List of add-on covers that one can avail of with Comprehensive Bike Insurance Plans:

However, if you opt for a comprehensive bike insurance plan, you can avail of a number of add-ons to enhance your bike insurance policy such as:

  1. Key loss coverage

    It is not uncommon to lose your two-wheeler key, despite having a spare key, there are times when all of them are lost. This add-on covers the cost of purchasing a new key.

  2. Roadside assistance cover

    If you have a vehicle, you may have experienced the anxiety of being stranded in the middle of nowhere. Often without any assistance around such a place, today bike insurance plans have realised the importance of offering coverage for this aspect. Round-the-clock roadside assistance is extended under this add-on, thereby relieving the stress of the rider from being stranded in a place where immediate assistance is not available.

    So, if you need coverage for your off-roading adventure or biking expeditions, you might find this add-on handy!

  3. Passenger assistance cover

    This add-on offers death and disability coverage for riders and pillions. This is a relatively expensive add-on, for typically the quantum of money insured is higher than the other items. Thus, this is important only if you have pillion riders.

  4. Daily allowance cover

    In the event, your two-wheeler is lost or severely damaged rendering you to look for alternate transportation means, this add-on comes into play. There is a daily allowance offered to cater to your transportation expenses.<.p>

  5. Zero-depreciation cover

    The repairs or replacements are covered by the insurer under this add-on benefit. This add-on will ensure that entire expenses towards repair and replacement can be claimed without the deduction of any natural depreciation on your vehicle’s parts.

    This is one of the most important and widely used add-ons so that you get the full value of your claim without depreciation on the parts.

  6. Return to invoice cover

    In the event, the bike is completely damaged without any option of being salvaged, the invoice price will be paid. The invoice price is typically higher than the IDV which is adjusted for depreciation. With this coverage, you will be able to avail a new bike, thus carrying on with your life without any disruptions. If you often park your bike on the road, you might want to opt for this add-on!

  7. Engine protection cover

    There are many regions which have seasonal waterlogging issues, there may be instances of oil leakage which lead to damage to the engine. This calls for an engine replacement. Under this add-on, any engine repair or replacement will be covered.

    If you happen to stay in an area prone to very heavy rainfall with waterlogging issues or flood-prone areas, you might want to add this.

  8. Consumable cover

    Two-wheeler is subject to periodic overhaul, often there are costs incurred towards change in the oil filter, engine oil, nuts and bolts. These consumables are not covered under any of the two-wheeler insurance plans. By availing of this additional cover, one can overhaul the bike as needed without any out-of-pocket expense.

  9. NCB protection cover

    No claim bonus (NCB) is extended as a sizable discount on the premiums applicable for the renewal of the policy. Often, under the regular/basic plan, even if there is a single instance of claim against your insurance plan, you will be disqualified from availing of the no-claim bonus.

    The NCB protection cover ensures that you are not disqualified from NCB benefits despite making claims during the year. 

Ideally, you should opt for a Comprehensive Bike Insurance Plan which also protects against damages on your own bike. With the increasing costs associated with bike overhaul and frequent instances of accidents, there is a need for Bike Insurance with such add-on coverages, which will ensure that you have comprehensive coverage.

However, if you still choose to opt for a Third-Party Only Bike Insurance Plan, you can add personal accidental coverage to enhance the benefits and be legally safe.

DISCLAIMER
This article is issued in the general public interest and is for educational purposes only. The blogs should not be used as a substitute for competent expert advice from a licensed professional to best suit your needs. 

Significance of IDV while buying Bike Insurance in India

Ankita Sejpal

Are you intending to buy your dream bike? Awesome! However, there are certain aspects you need to know before you insure your bike. In this article, we shall be talking about one of the most important aspects called Insured Declared Value or IDV of your bike.

What is IDV?

IDV represents the ex-showroom value of the two-wheeler being assessed. It is fixed based on the manufacturer’s selling price, including invoice value and taxes (GST) as applicable. It, however, does not include the insurance and registration charges.

IDV is a function of the below-mentioned factors:

  • Make and Model of the vehicle
  • Sub-model and specifics of the bike under consideration
  • Registration date

IDV is the proxy for arriving at the sum insured for the two-wheeler being assessed under the insurance policy. IDV is fixed at the beginning of each policy year for the vehicle being insured. If the two-wheeler is not brand new, then the IDV is based on the current selling price of the model as quoted by the manufacturer adjusted to the years of depreciation. 

Read more to know what Factors Affect your Bike Insurance IDV. 

The importance of IDV while buying bike insurance in India

It is mandated under the Motor Vehicles Act, that two-wheelers hold at least a third-party insurance to cover liabilities/claims arising from the counterparty if engaged in an accident. However, there is a growing preference to buy comprehensive insurance considering that the cost of repairs and reimbursements has been rising. Further, many individuals invest in very expensive bikes that reflect their lifestyle. The spare parts and maintenance of such bikes are quite high, and comprehensive insurance comes in handy for the upkeep of such bikes and all bikes in case they are involved in accidents. 

There are numerous technical terms that one has to decode whilst availing of a bike insurance policy, one such term is the insured declared value or IDV. IDV is one of the many aspects that influence the premiums of your bike insurance plan in India. Let’s dive deep to understand the nuances.

Depreciation rates applicable

The IDV is subject to depreciation based on the age of the vehicle, the rate at which depreciation is applied is as mentioned below:

Timeline

Rate of depreciation

<= 6 months

5%

6 months – 1 year

5%

1 – 2 years

15%

2 – 3 years

20%

3 – 4 years

40%

4 – 5 years

50%

If the vehicle is older than 5 years, then the vehicle is physically examined and an appropriate IDV is arrived at by the insurer. Upon agreement between the insured and insurer, a contract for bike insurance is drawn. 

What is the impact of IDV on your bike insurance?

The value of your IDV has a direct and proportional impact on the bike insurance premiums. If you have a higher IDV, it essentially translates to a higher sum insured, this means that the premiums would be on the higher side.

On the other hand, if your bike is old and has had reasonable wear and tear, the higher depreciation rate would bring down the value of your bike considerably, which would in turn mean that your bike will now be insured for a smaller sum insured. This would in turn translate to a lower premium. 

How does IDV matter?

As indicated earlier, IDV is the sum insured for the bike you intend to insure. If your bike were to be stolen in the first 6 months of its purchase, then based on the above table, you would be eligible for 95% of the IDV value as settlement. This means that you could potentially claim back 95% of the ex-showroom price of the bike. This could be a headstart for you if you intend to purchase another bike to continue with your activities without any untoward disruptions.

You must pay close attention to the IDV and ensure that it matches the market value of the vehicle net of depreciation. This will ensure that you are in a position to at least have a headstart in replacing your vehicle in the event it is either stolen or irrevocably damaged during an accident. 

Why should you look for a higher IDV?

Although a high IDV would translate to higher premiums, you should always try to negotiate for a higher IDV for your bike to ensure that you would be appropriately compensated. The whole premise of insurance is to pay a certain premium to hedge your risk against an unpleasant event. Although you may feel that the premium hurts you on an intermediate basis, the compensation you will receive during the occurrence of the unfortunate event will make up for every penny spent on your bike insurance. 

Hope this brief note on IDV helps you avail yourself of bike insurance that is competent and provides you optimal coverage against any mishap or theft about your two-wheeler. 

If you need help in choosing the right policy, contact Turtlemint’s advisor for your bike insurance.

DISCLAIMER
This article is issued in the general public interest and is for educational purposes only. The blogs should not be used as a substitute for competent expert advice from a licensed professional to best suit your needs. 

Important Things Every Smoker Should Know About Life Insurance

Saumya Mehrotra

Smoking or consumption of tobacco can affect the cost of your life insurance and harm your health. If you are a smoker and evaluating opting for life insurance, here are things you should keep in mind before choosing the right life insurance for yourself. 

  1. Who is considered a smoker?

    Anyone who smokes cigarettes, tobacco, hookah, pipes, e-cigarettes, vapes, snuffs, nicotine patches, etc. is considered a “smoker” according to the insurance underwriters.

  2. How is smoking correlated with life insurance?

    There is enough medical evidence to suggest that smoking has been one of the leading reasons of certain life-threatening diseases like certain types of cancer, tuberculosis, heart diseases etc., It is less surprising that as per the underwriting rules smoking habits influence the policy premium rates. It ranks among the top factors which influence the premium rates of life insurance. 

  3. How much does smoking influence the premiums of life insurance?

    By providing insurance to a smoker, the insurer is assuming a greater risk as compared to extending similar insurance to a non-smoker. Hence, the premiums for a smoker can cost you 40% to 100% more than that of non-smokers, based on a thorough evaluation of your health history.

    In effect, an average cost of the premium for a 30-year-old non-smoker with earning capacity of less than Rs. 15 lakh may end up paying a premium of approximately Rs.15,000 to Rs 20,000 for a coverage of 1 CR Term Insurance Plan while a smoker of the same profile would have a premium of approximately Rs 24,000 to Rs 30,000 across various plans.

    Calculate your Life Insurance Premium here.

  4. Does the life insurance policy distinguish between an occasional smoker and a regular smoker?

    It does not distinguish between the type of smoker, the general understanding is that an occasional smoker can become a regular smoker or a chain smoker over time. It merely distinguishes a smoker and a non-smoker and does not deep dive into details. Often, some individuals live in denial regarding their addiction to smoking, they may often be regular smokers but may tag themselves as occasional smokers. 

  5. What if you try to hide the fact that you are a smoker in your application?

    The cardinal rule whilst availing of life insurance is to ensure that you make honest declarations in your application. Every aspect of your application should be written with utmost honesty and integrity. Hiding any fact or lying in your application can lead to claim rejection. In case your death occurs due to a smoking-related complication such as a heart attack etc., there is an investigation initiated by the insurance company to establish the authenticity of your claim.

    In case, the insurance company learns that you have been a smoker and in the application, you have declared otherwise, the death benefit will be denied to your family/beneficiaries. This could put them under severe financial stress.

    However, if the sum assured requires a medical examination, then you will have to give a urine sample which will be tested for nicotine, irrespective of whether you have declared yourself as a smoker or non-smoker. The medical result would indicate if you have lied in your application, this could lead to rejection of the insurance policy.

  6. What if you start smoking after you have taken your life insurance policy?

    In this case, your life insurance premium would not change provided you were a non-smoker at the time of opting for the plan. However, insurers have multiple ways to find out if you have been a smoker and for how long you have been smoking through doctor’s prescriptions, lung test reports, medicines bought in the past, social media, etc.

So, if you are an “occasional” smoker as well, you need to declare the same at the time of your policy inception to avoid denial of the claim. You will be considered a non-smoker only if you have completely quit for a minimum of 12 to 24 months.

From this note it is apparent that it benefits to quit smoking, not only will your health improve drastically, but you will also end up paying lower premiums on your life insurance. Take a step towards better health today!

DISCLAIMER
This article is issued in the general public interest and is for educational purposes only. The blogs should not be used as a substitute for competent expert advice from a licensed professional to best suit your needs. 

10 Myths Revolving Around Life Insurance That Need To Be Debunked

Swapnil G

Life insurance is an important decision, it is one of the easily accessible risk management tools for an individual. However, this is one of the areas which has minimal knowledge, there are numerous myths surrounding life insurance and how it works. This has led to a lower number of people insuring their life, they do not understand the power of hedging their life risks and leading stress-free life. Here we go on to bust the most popular myths about life insurance policies.

  1. Myth: The utility of life insurance kicks in only after death

    This is by far the most popular myth, typically the premiums that are paid towards life insurance are to hedge your life risk, they are not intended to provide any returns. This is often construed as an expense or cash outflow which will result in no returns.

    The death benefit is the only return that comes in only upon the insured’s death. The important aspect that people miss understanding is that life insurance takes away a certain burden off your shoulder, and in the event of your eventuality, your loved ones will not be left to fend off financial woes.

    Life insurance should be seen as a hedge against life risk and a reliever of your psychological stress.

  2. Myth: Coverage under group term insurance will suffice

    Group term insurance is a common, standard and basic cover offered uniformly for all the employees who fall within a specific rank. It does not offer a hedge against specific items.

    Insurance of any kind should be customised to your needs. In addition to the group insurance, it is suggested that you opt for individual insurance with relevant add-ons aligned to your financial goals and needs. This will ensure that you have a comprehensive cover and during periods of job transition and job loss, you will still stay covered. 

  3. Myth: Young and healthy; why do I need life insurance?

    During the pandemic, many young and healthy individuals succumbed to a viral infection. It is time that you burst your bubble because you are never too young or healthy to avail life insurance. Infact, buying when you’re younger and healthier will also save you money long-term. 

  4. Myth: Life insurance premiums are very expensive

    Term insurance is one of the cheapest forms of life insurance, a 30-year-old can avail of term cover for Rs. 1 crore at less than Rs. 700 per month. The cost is less than a bill that you will foot when you eat out. 

  5. Myth: I have a pre-existing illness, and I am not eligible for life insurance

    If you have a pre-existing illness, you will have to declare the same. In all probability, you will undergo a medical examination. Based on the results, the insurer will provide life insurance at a higher than usual premium. 

  6. Myth: I am too old for life insurance

    There are many life insurance plans which are specifically designed for senior citizens, the age of entry is up to 80 years in many of the plans. The premiums would be expensive for life insurance when you avail of it at a later stage in life. It is advised that you avail yourself of life insurance at a young age for the maximum term. 

  7. Myth: If the premium amount were to be invested in other investment avenues, it would yield better returns

    This is not how one should look at life insurance as it is a means to hedge your risk. While attempting comprehensive financial planning, hedging your life risk and health risk are the first steps that you will undertake. The amount in excess of these commitments net off your EMIs and household requirements will be allocated for investments. The only alternative approach to this mindset is to use dual benefit plans such as ULIPs which will offer you the required life insurance and yield returns. 

  8. Myth: Combining investments with insurance is a bad idea

    Another myth that dwells is the polar opposite of the previous one, the people who fall prey to this myth think that only pure life insurance is a viable option for hedging life risk. Although you may choose to do so, there is absolutely nothing wrong with clubbing your financial goals alongside your life insurance requirement.

    For example, you can avail a child plan for planning your child’s education, by availing of life insurance alongside, you also ensure that the death benefit enables your child to fulfil his / her dream even in the unfortunate event of your eventuality. 

  9. Myth: Only the person paying the premium can be the insured

    This is a nuance that people tend to miss, you can avail of a life insurance plan on any other related individual. The person paying the premium and the policyholder or insured can be two different individuals. There are scenarios when one spouse undertakes the commitment towards premium payment while getting their partner insured. 

  10. Myth: Claim settlement from insurance is a hassle, instead just keep the money safe in the bank

    Claim settlement has become quite seamless in today’s time this is one competitive aspect which becomes a determinant for availing of a policy. Many insurers have a very high claim settlement rate. Typically, one should not be looking at companies with a lower than 95% claim settlement rate whilst availing of a life insurance policy. 

    11. These are only some of the myths surrounding life insurance, but they are significant ones. Hope they have provided you with some insights on life insurance. Get in touch with Turtlemint Advisors who will ensure that you’re getting the right policy with the accurate information – you need.

    DISCLAIMER
    This article is issued in the general public interest and is for educational purposes only. The blogs should not be used as a substitute for competent expert advice from a licensed professional to best suit your needs. 

6 Tips On How College Kids Can Lower Their Car Insurance

Ankita Sejpal

As a college student, you are always looking for options to save money. If you are a kid with a car, the petrol costs must already be burning a hole in your pocket. What is disheartening is that the car insurance premium for a student is higher than that of any adult older than a college student. Here are reasons why the premium of car insurance opted for by college students is higher.

Premiums of car insurance are determined based on a slew of factors which are not favourable to college students

  1. Younger individuals tend to cause more accidents than older people or more experienced drivers, hence age as a factor works against college students.
  2. The driving experience is an integral factor, college students are newbies and hence lack of driving experience drives up the premiums.
  3. No prior violations can contribute to lower car insurance premiums.
  4. The credibility of the individual will also determine the premium; a higher credit score will indicate that the insured can pay the insurance conveniently.
  5. The location where you reside could also determine the car insurance premium rates. Some regions prone to seasonal waterlogging issues, natural calamities, higher theft rates etc., will command a higher car insurance premium.
  6. Accident rates in the area will also determine the car insurance premium.
  7. Car usage is another factor which impacts the premium. Often college students tend to use their cars for long drives and do not practice good driving habits, these factors could potentially impact the car insurance premium.
  8. Interestingly even though gender can determine the premium rates, male drivers tend to be riskier and file more claims on their car insurance. Women drivers are less riskier and the claims against their car insurance are lower. This leads to male drivers having higher premiums.

Also, read How to calculate car insurance premium. 

Top 6 tips on how college students can lower their Car Insurance premium:

There are some hacks which can help college students to save on their car insurance. Here are a few of them:

  1. Avail student discounts:

    Some insurance companies offer discounts to students subject to certain predetermined criteria. You should compare vendors to ascertain if there are any such provisions.

  2. Good driving practices discounts:

    As stated earlier, if you have a clean track record without any violations in the past, then it may result in lower premium charges. Typically, for a student this may not kick-in in the first year, however, with a no-claim track record, the student may build a reputation for good driving practices and this could result in lower premiums.

  3. Multiple policyholders:

    If you hold multiple policies on you as a college student like home insurance, life insurance, and health insurance, then your premiums on car insurance could be competitive.

  4. Infrequent driver discount:

    If you are a student who drives occasionally, then your premiums could cost you a lot lower. Here again, in the first year, you may not avail of this benefit, however, you can establish a pattern over a few years and show records of less than 25% utilisation of the car’s mileage which will translate to a potential discount in insurance premiums.

  5. College Tie-Up:

    Often insurers provide discounts when they tie-up with organisations and provide insurance to a group of individuals within the organisation. An insurer may tie-up with your college/university to provide car insurance at competitive rates. For this, you may have to reach out to the college administration to find out if there is such a tie-up.

  6. Premium linked to IDV:

    College students typically buy older or cheaper cars with lower IDV (Insured Declared Value). Thus, their car insurance premiums on old cars tend to be lower. This is because of the lower car value which will result in the insurance company making a smaller payout in the event of damage. The extent of coverage will be lower and hence the premiums would be lower.

For a first-timer college student, it could be overwhelming, so consult your parents and seek their help to choose the most competent car insurance.You can also reach out to Turtlemint Expert Advisors to help you with your car insurance!

DISCLAIMER
This article is issued in the general public interest and is for educational purposes only. The blogs should not be used as a substitute for competent expert advice from a licensed professional to best suit your needs.

Everything First-Time Car Buyers Must Know About Car Insurance

Rupanjali Mitra Basu

Your first car always brings a sense of euphoria, it brings a sense of freedom and independence. It also means that now you are responsible to inculcate good driving practices and ensure the upkeep of your car. Among the many decisions that you need to make, one additional decision would be regarding the car insurance that you need to avail yourself of. Insurance is a very vast world with multiple technical terminologies. We first decipher the technical terms and then get into the nuances of car insurance for your benefit. 

Technical terminologies you should know

  1. NCB (No claim bonus): 

    It is a discount offered when you renew your car insurance provided you have not made any claims during the previous policy year. NCB is extended for every claim-free year, it normally is given as a discount on the insurance premium (up to 50%) or may also be extended in the form of an increased sum insured in some cases.

  2. IDV (Insured declared value):

    This is the amount that your vehicle is valued at, in the first year of purchase of a new vehicle it will be valued at 95% of the ex-showroom price. This is also the value at which your car will be insured, also called the sum insured.

    As your vehicle ages, the depreciation catches on and the sum insured reduces. This is the amount which will be paid to you in the event of total loss or damage to the car that is insured.

  3. Deductibles:

    Under deductibles, there are two types:

    1. Compulsory Deductible:

      The minimum quantum of funds should be paid to begin an insurance claim.

    2. Voluntary Deductible:

      An amount that the policyholder is willing to pay during the occurrence of an unfortunate event. This would translate to policyholders sharing the financial burden.

To know more about the top Insurance Terms, click here. 

Types of car insurance policies

There are various types of car insurance which may often overwhelm you, here is a brief on each of these to help you understand what they cover. This will help you assess the suitability and accordingly choose the plan that best aligns with your requirement.

  1. Third-Party Insurance Plans:

    As per the Motor Vehicles Act, 1988, third-party car insurance is mandatory. This offers coverage for liabilities or claims that may arise out of any unfortunate incident like an accident where a third-party individual or property is involved. It is illegal to drive in India, without third-party insurance, you are likely to be severely fined or imprisoned.

  2. Own Damage Insurance Plans:

    This policy is to cover the damages that may be caused to the insured vehicle (own vehicle). Third-party insurance does not offer coverage to your vehicle, it covers the damage for the counterparty in an accident or unfortunate incident. You can avail of this plan only if you have a valid third-party-only car insurance plan.

  3. Comprehensive insurance:

    To put this in easy terms, it is both third-party insurance and own damage insurance put together. It covers damages to your vehicle and that of the third party. It also offers coverage against theft, fire, natural calamities, explosions etc.

    It is also termed the ‘all-in-one’ policy which offers complete coverage under a single policy with a single premium. There are add-on riders available to cover all bases. You can choose them based on your requirements.

Once you know about the basic terminologies and the type of car insurance that you need, it is time to consider other aspects such as:

  1. Assessment of insurance requirements:

    You must assess your requirement before you zero in on the type of insurance and the quantum of insurance that you may need. Two important considerations that you need to assess are the purpose of the vehicle, if you are likely to use the vehicle frequently for long-distance travel under heavy traffic or travel in accident-prone zones, then a higher quantum of the sum insured and wide coverage would be required. If you are likely to use it for short distances with minimal traffic, then lower coverage would suffice.

    Tip: All types of insurance, including car insurance, has to be budgeted, to ensure that you do not go overboard by adding riders unnecessarily. Insurance companies tend to upsell, hence, having an assessment and budget of your own always helps. Your insurance premium should be such that it aligns well with your requirement and does not hurt your monthly budget overtly.

  2. Product comparison:

    Before you buy any insurance policy, ensure to do a product comparison, there are umpteen websites which offer comprehensive comparisons across products. This is a cardinal rule that you should not miss. Further, whilst comparing, don’t just watch out for premium rates, ensure to go through every product feature to ensure that the product that you eventually choose aligns well with your requirement and offers optimal coverage for the premium rates.

    Tip: Read through the product features, understand the claim procedures, and also sift through the customer reviews and their experiences with claim settlement to gain a comprehensive idea about the insurer you wish to associate with.

  3. Inclusions and exclusions in the policy:

    A very important aspect that people tend to miss is understanding in detail the inclusions and exclusions. Complete and comprehensive coverage is what you typically should aim at. This can be achieved by understanding the gaps and evaluating if there are any add-ons which will help you bridge the gap. Of course, all this is based on your assessment of the need for such coverage.

    Tip: Try to pick car insurance which offers a wider coverage and has minimal exclusions, also one with no loose ends. In case you have inhibitions or doubts, do not hesitate to reach out to the insurer and clarify your doubts, always look for documents which substantiate the claims, this will help you keep them for future reference. 

Finally, you need to enhance the coverage of your car insurance plan with add-ons.

What are add-ons?

A host of add-ons are available for achieving comprehensive coverage of the policy by paying an extra premium.

Here are some add-ons that you may consider if it aligns with your requirement:

  1. Zero depreciation cover:

    This is also called the bumper-to-bumper or nil depreciation cover. The insured will not have to account for the depreciation value of the car or account for damages, replaced parts etc., the coverage is over and beyond the IDV.

  2. Roadside assistance cover:

    If you are stranded in the middle of nowhere, your insurance company will immediately send assistance. This is around-the-clock coverage.

  3. Engine protection cover:

    The engine replacement in your car can be an expensive affair, there is an add-on which helps you deal with this without any financial stress.

  4. Consumables cover:

    Any ad-hoc replacements, nuts and bolts purchases, engine oil replacement etc., can be claimed under this add-on.

    All these add-ons come at an additional cost, hence it is important to avail only those ride-ones that are necessary.

Also, read the 5 Best Add-on Car Insurance Covers in 2022

This is a comprehensive note intended to give a holistic picture of car insurance and its nuances. Hope it eases your anxiety as you embark on your journey to buy your first car insurance. If you need help in choosing the right policy, you can also contact Turtlemint’s expert advisor!

DISCLAIMER
This article is issued in the general public interest and is for educational purposes only. The blogs should not be used as a substitute for competent expert advice from a licensed professional to best suit your needs.

5 Ways Practising Yoga Helps You To Lower Your Health Insurance Cost

Ankita Sejpal

Yoga originated in India thousands of years ago when the learned sages and Gurus preached their knowledge of harmonising the body and soul. Today, Yoga has gained international recognition and is celebrated, every year, on the 21st of June. This year too the world International Yoga Day is around the corner and would be celebrated worldwide. 

Yoga has been recognised internationally for a very simple fact, the health benefits that it offers. Yoga is a complete exercise that can attune your body and mind and help you stay healthy and fit. Furthermore, Yoga also helps in reducing your health insurance cost. 

Surprised? Don’t be! Though indirectly but practising Yoga sure can help you lower your health insurance cost. Here are five ways how –

1. Lower premiums when buying the policy

When you practice Yoga regularly, you can stay fit and healthy. This fitness determines the premium calculation when you buy a health insurance policy. If at the time of buying the health insurance policy, you suffer from a medical complication, the premium of the policy would be increased to bear the increased health risk. However, if you are healthy, you can avoid this loading and enjoy lower premiums.

Infact, some insurance companies also offer discounted premiums for healthy individuals. You can avail of such premiums when you practice Yoga and are healthy.

2. Enjoy no claim bonus

No claim bonus is a reward that health insurance plans offer if you don’t make claims in the previous policy years. When you practice Yoga, you can stay fit and avoid possible lifestyle illnesses and complications. This reduces the probability of claim allowing you the no claim bonus in the policy.

The no-claim bonus can either be given as a free increase in the coverage amount or as a premium discount on renewals. In either case, your health insurance cost goes down. If the sum insured is increased, you enjoy higher coverage at lower rates. Alternatively, you can reduce the premium outgo if there is a renewal discount offered by the insurer.

3. Get wellness discounts

Many health insurance plans offer wellness benefits and discounts when you renew the coverage. If you lead a healthy lifestyle, such plans allow a discount on the renewal premium. Yoga can help you lead this healthy lifestyle and opt for the available discounts. And where there are discounts, the costs ultimately go down.

4. Avoid claim-based loading

Some insurance companies load the renewal premium if you make a claim on your policy in the previous year. This enhances the premium outgo making the plan dearer. However, with Yoga, you can stay healthy and avoid claims. When there would be no claims, there would be no claim-based loading allowing you to keep your health insurance costs affordable.

5. Get the best deal

Lastly, when you practice Yoga and stay fit you get a variety of health plans to choose from. You can compare the coverage across multiple policies and choose a plan that offers the best coverage at the most affordable rates.

There is a reason Yoga is acknowledged worldwide to be a way of healthy living. It improves your body functions, and its systems and helps you stay fit and healthy. In fact, if practised regularly, you can also bid adieu to common lifestyle illnesses. If you also add meditation to your routine, you can improve your mental health too.

So, this World Yoga Day, add Yoga to your lifestyle and witness a positive change in your health. Use this chance to get low-cost health insurance plans which offer a comprehensive scope of protection. Maximise the full potential of this age-old practice and benefit physically, physiologically, mentally and financially.

Get Insured
Quick Links
Contact
  • Turtlemint Insurance Broking Services Pvt Ltd (f/k Invictus Insurance Broking Services Pvt Ltd)
  • IRDAI License No. 487,
    Composite Broker,
    Valid upto : 02/04/2026 (Renewable)
  • Principal Officer: Vilas Gandre,
    1800-266-0101
    +91-9833248023
Secured by:
SSL
  • Insurance is the subject matter of the solicitation. For more details on policy terms, conditions, exclusions, limitations, please refer/read policy brochure carefully before concluding sale.
  • © 2020 Turtlemint. All Rights Reserved. Privacy Policy  and Terms