Reasons to buy term insurance before you turn 30

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

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

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

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

  • You can get a policy easily

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

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  • Your employer’s sponsored coverage is not enough

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

  • You can secure your loans

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

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

  • Buying young ensures lower premiums

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

  • You can save tax too

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

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Know How term plans helps in saving tax

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

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Types of life insurance

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

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

Types of life insurance plans

  • Term insurance plans

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

Usefulness of term plans

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

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  • Return of premium plan

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

Why do you need return of premium plans?

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

  • Whole life plans

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

Importance of whole life plans

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

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

  • Endowment Plans

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

How endowment plans help?

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

  • Money back plans

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

Why are they needed?

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

  • Unit Linked Insurance Plans

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

Why you need ULIPs?

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

  • Pension plans

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

What is the use of pension plans?

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

Read more about Common terms in life insurance policy

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

Read more about 5 reason why you need life insurance

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

Health insurance not an option anymore but a necessity!

Have you crossed your 20s and haven’t bought a health insurance yet while planning your saving all these years? If yes, be ALARMED! An expense worth lakhs might swipe your entire savings in a jiffy without even giving you a chance to prepare for such an unforeseen situation.

While in their 20s and 30s, majority of the people think, “I’m healthy! I don’t need to worry about any medical emergency or large hospital expense. I don’t need a health insurance”. If you fall under this majority then read to know why, it is not only important but a necessity to invest in a good health insurance plan before planning any further investments.

Double-digit medical inflation

Researchers across the globe would agree on one thing – healthcare costs will continue to rise, unfortunately at a faster pace when it comes to developing countries like India.  As per the 2017 Global Medical Trends Survey Report, there is a 12.5% inflation in the Indian healthcare sector which only re-affirms this statement further. The report says, more than half of health insurers across the world expect this rising trend to continue more steadily over the next three years. What this means is that even a single bypass surgery, which would cost you anywhere between 2-6 lakhs, would cost you more than 10 lakhs within next 6-8 years. Are you prepared to bear such large expenses if need arises?

Your choice of delaying today may subject you to an insurer’s denial tomorrow

There’s a saying, “Better late than never!” By the time you realise the need for buying health insurance, be aware it might be too late to get one even at a higher cost. This is because, insurance companies just like any other business, have to maintain their balance sheets and hence they look after providing cover to healthy individuals with little or no health risk at the time of availing the health insurance. As you age, you start to fall under high risk category and thus, an insurance company would usually ask you to go for a health check-up before deciding to cover you. They may even choose to refuse you a cover at all in case you are found to be suffering from a critical ailment. While your medical condition already left you distressed, you wouldn’t want to face a cover denial when you most need it.

Your employer cover may not always help you

One reason not to buy a personal health insurance may be because you think you are already covered under your employer provided group health insurance. However, what you may not know is that your company cover would remain valid only until you are employed in that company. Once you move from your existing company, you will remain uninsured until you are covered by your new employer, if at all. Besides, the company provided cover is limited and not based on your needs. It may not be sufficient-enough for you and your family’s needs. In which case, you would need a separate health cover anyway. Do you know how much cover your company has provided and whether it’s sufficient for your needs?Read about 5 reasons why your company Health Insurance is not enough

You think you are physically fit and don’t need health insurance now

Even I feel so but doesn’t mean I am not prone to diseases especially when it comes as a result of factors like sedentary and unhealthy lifestyle. Adding to it the stressful lives we live in today’s digital era, we are more prone to illnesses than our forefathers when they were of our age. Although medical improvements have increased the life expectancy and chances of survival, to avail the advanced facilities, one needs to be financially viable as well. Besides, health insurance not only covers hospitalisation due to illness or planned surgeries but also medical expenses for treatments and injuries caused due to accidents. With road accidents in India again on an upward trend, you surely aren’t 100% immune to accidents, are you?

Bottomline

Nobody is immune to accidents or illnesses. Unfortunately, these medical contingencies can come along to anyone at anytime without prior warning. What can we best do but be proactive and prepare for the worst? So don’t wait or waste your time in thinking. Act now and buy Health Insurance today. If you are confused which one to buy, you can compare health plans on Turtlemint or call our experts 1800 266 0101 in case of any doubts.

Read more about How to save money on health insurance

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Did you know these taxation facts about your insurance policies?

Insurance is popular not only for its benefits but also for its tax saving nature. Whether you buy life insurance or health insurance you get tax saving on both. In fact, in a life insurance policy, even the surrender value is tax-free in your hands. However, when it comes to taxation, there are certain rules which should be kept in mind. For health insurance plans there are limits up to which you can claim a tax exemption. Furthermore, for the surrender value of a life insurance policy, there are certain conditions which, if fulfilled, will result in tax relief. Let’s explore these tax facts of your health and life insurance plans –

Tax benefit for health insurance

Premiums paid for a health insurance policy qualifies for tax exemption under Section 80D of the Income Tax Act. The maximum exemption which you can claim for the premiums paid is up to Rs.60, 000. Here’s how –

So, if you and your dependent parents are both senior citizens and you pay premiums for two separate health insurance plans (one for yourself and one for your dependent parents), you can claim a maximum tax exemption of Rs.60, 000 in one year.

Tax benefit on the surrender value of a life insurance policy

If you surrender your life insurance policy and avail the surrender value, the value can be claimed as a tax-free income. However, to avail this tax exemption, you have to fulfil the following conditions –

  • For your single premium policies, if you surrender the policy after the first two years of buying the plan, the surrender value you receive is tax-free.
  • If you have a regular premium plan, the surrender value is tax-free only if you have paid the premiums for the policy for at least 2 full years.
  • In case of Unit Linked Plans, the surrender value becomes tax-free only if the policy is surrendered after 5 years.
  • For your pension plans, the surrender value is always taxable. It is taxed at your income tax slab rate in the year in which you receive the value.

So, if you want to surrender your life insurance policy, find out the type of policy you have. Then determine whether the qualifying conditions have been fulfilled so that you can receive the surrender value without any tax implication.

Read more about Life insurance policy in india – How it works?

Tax is a complicated subject where there are various qualifying conditions and limiting amounts. Even though your life and health insurance plans promise you tax benefits you should read the fine print of availing this tax benefit. You would not be in for a surprise when you know the tax relief you would get, right?

Turtlemint helps you in buying the best life insurance policy and health insurance policies. It also helps you with your queries regarding the tax aspect of these plans. So, if you are planning on investing in life insurance, health insurance or both, come to Turtlemint. You would be surprised with the experience you get.

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5 technologies that are transforming healthcare

Together, technology and healthcare share an interesting past. Technological breakthroughs have almost always resulted in simultaneous breakthroughs in the medical field. A good example is how the advent of information technology revolutionized the way patients’ records were stored and recalled. Some technologies, like social media and health apps, have even brought medicine to the masses.

Furthermore, the integration of technology into healthcare has birthed a variety of brilliant innovations. From adhesive bandages to robotic prosthetic limbs to minimally invasive surgeries: healthcare has technology to thank. Not only have technological innovations improved the quality of medical care, they have also added years to lives.

Let’s check out 5 new and exciting technologies that are transforming the face of the healthcare industry as we know it:

3D Printing

3D printing – the latest technological craze – has taken the manufacturing world by storm. With a 3D printer, it’s possible to produce an object from design in a matter of minutes. Healthcare researchers have adopted this technology to create exact multi-dimensional models of organs, using them to create precise and personalized treatment plans. Scientists are now exploring 3D printing to construct organs for transplant! From growing skin for burn victims to replacing cartilage, bone or kidney, this technology’s venture into healthcare promises an amazing makeover of medicine.

Brain-to-Computer Interface (BCI)

The Brain-to-Computer Interface enables a human-computer connection. The scope of this technology in healthcare is enormous as BCI can simplify complex tasks such as managing pain and controlling robotic limbs. Harvard University researchers have gone another step ahead and achieved mind-control. They have successfully developed a Brain-to-Brain Interface (BBI) that allows the subject to control a rat’s tail: Proving, thus, that science has finally caught up with science-fiction!

Digestible Sensors

Once the bio-monitoring sensor is swallowed like a pill, it wirelessly transmits the body’s internal information to another device. This technology lets healthcare professionals gather remote diagnosis and monitor treatments. Since the sensor can detect diseases early, its use in preventive medicine is also growing. A new revision in this technology has removed the need for a battery with a sensor that uses the body’s energy to stay powered.

Microchip Modeling

This technology has reformed the way clinical trials are done. The microchips are small, just like the name suggests, and resemble live tissue. They provide a replica of the complex structure between organs and capillaries, making them apt subjects for clinical tests. Microchip modeling has gained support from animal rights organizations across the world as the technology makes the exploitation of animals in the product-testing phase redundant.

Wearable health monitors

The wearable technology aims to pass the onus of health from professionals to the patient. With a health-monitoring device that can be worn, a person remains aware of their health status and, therefore, becomes more responsible towards it. Gadgets like Fitbit help in personal wellness and activity tracking by monitoring heart rate and calories burned. More advanced technologies involve diagnostic mobile apps that can analyze health remotely and even detect diseases like Ebola and Cancer. Researchers at Scripps Translational Science Institute, San Diego are developing wearable tech that can read biomarkers and alert the wearer to any alarming levels of stress or anxiety.

With technology on its arm, the future of healthcare looks bright. Most technological marvels aim to simplify medicine and allow the individual to become the custodian of their own health. Much of this technology is expensive and healthcare has become costly as a result. But, when it comes to your health you must take every precaution including protecting yourself against financial risks. Make sure that you can afford all the medical help (and the associated technology) you may need in the future by investing in a health insurance plan, today.

Technology has also made selecting and buying health insurance plans way more convenient and hassle-free. Go online to compare plans and invest wisely with the help of Team Turtlemint. Talk to our Chatbot, call our Health Expert at 1800-266-0101, or visit the Turtlemint website to ask your insurance related queries or to get quotes from different health insurance providers.

Read also What is insurance and how does it works?

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Play safe this Monsoon with the umbrella of health insurance

Don’t you just love the monsoons – the heavy clouds that bring respite from the scorching heat, the cool showers that uncover the real shades of green, and the light breeze, which carries the smell of wet earth?

Although monsoons are such a welcome change from the long, hot and dry spell of summer, unfortunately, they often arrive accompanied by some very unwelcome health hazards.

Accident risks during monsoons

During heavy showers, the incidence of road mishaps multiplies dramatically, leading to a lot more deaths, serious injuries, and loss of property. Mumbai alone recorded 569 accidents last year!

(Click here to find out about personal accident cover!)

Auto accidents are common during monsoon due to decreased visibility, slippery roads, water-logging, undetectable potholes, and falling trees; often in combination with reckless driving or poor vehicle maintenance.

(Want to learn how to monsoon-proof your carClick here to keep the monsoons from raining on your car-parade!)

Health risks during monsoons

Not only do clogged waters and muddy puddles result in a higher risk of road accidents and personal injuries, they also serve as a breeding ground to a host of disease-causing germs. What’s more, your body is extremely susceptible to various ailments during the monsoon season due to reduced immunity.

The high humidity and damp accelerate bacterial and fungal growth, leading to outbreaks of serious infections and diseases such as influenza, pneumonia, asthma, typhoid, cholera, hepatitis, dysentery, conjunctivitis, leptospirosis, etc. Moreover, mosquitoes thrive on stagnant water (which accumulates in abundance in monsoons) and cause dangerous diseases like dengue, malaria, and chikungunya.

How health insurance protects you

Coping with an unforeseen illness or injury can be undesirable as it is. But, having to shell out your hard-earned money for medical assistance on top of that, just makes the whole situation worse. Healthcare for most monsoon illnesses alone can be very expensive, with long durations of treatments and hospitalization ranging upwards of Rs. 35,000 in multispecialty hospitals. Health insurance coverage acts as a financial umbrella against the dangers of monsoon and safeguards you and your family by mitigating the cost of medical care and providing benefits like cashless hospitalization.

Here are 4 reasons why health insurance is important

Disease-specific plans

Nowadays, there are many health insurance companies in the market that provide disease-specific covers. The great thing about these plans is that their premiums are quite affordable. You can get a cover of around Rs. 50,000 for monsoon-specific diseases and accidents for as little as Rs. 511!

Even if you have a regular health insurance plan, you might want to consider getting a specialized plan as an add-on cover. This will let your basic plan’s No Claim Bonus remain undisturbed. If need be, you can always claim the disease-specific plan simultaneously with your existing health insurance plan.

Moreover, most disease-specific plans offer comprehensive coverage. Besides hospitalization, they pay for diagnostics, outpatient treatment, and home-care; costs for which may not be covered under a regular health insurance plan. Some of these plans (for e.g. Dengue insurance plan ) only require a self-declaration of being disease-free and don’t even ask you to a get pre-insurance check-up. A disease-specific plan also charges a low premium amount, irrespective of age. 

It’s better to be safe than sorry! So, play safe this monsoon with the umbrella of health insurance. Enjoy the monsoons tension-free by insuring your loved ones and yourself against medical emergencies.

Make sure to get sufficient health insurance coverage against monsoon health risks. Compare plans and invest wisely with the help of Team Turtlemint. Call our Health Expert at 1800-266-0101 or head over to the Turtlemint website to get quotes for different health insurance plans.

Read also An anatomy of an health insurance plan

Read more about Dejargonizing health insurance terms

Life insurance policy in India- How it works?

“What is Life Insurance? How does it work?” If these are the questions on your mind about life insurance, worry not, as our Turtle is here to explain it all, in the infographic below.

Life Insurance Explained

Now that Rahul and you, both know the crux of Life Insurance, head over to Turtlemint to find a term life insurance plan that’s best value for your money.

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Common terms in life insurance policies

Do all Life Insurance terms seem Greek to you? Well, let our Turtle help you understand these terms in a simple manner so you aren’t clueless next time you read them.

 

Life Insurance Terminologies

Hope the insurance jargon is no more an alien language to you just like Rahul. To know more, visit our website: turtlemint.com/term-life-insurance , call us at 1800-266-0101 or ask the Turtlemint chatbot.

Read more about Life insurance policy in India – How does it works?

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Reasons to buy a life insurance now

Do you think that you’re too young to take a life insurance plan? But do you know that there are many reasons you should take it right away? Our Turtle gives you these reasons below.

7 reasons for buying Life Insurance

Rahul has now understood the importance of Life Insurance and got a better credit rating for loans.

Now you too, like Rahul, stop thinking further and get a Life Insurance online. To know more, visit our website: turtlemint.com/term-life-insurance

Read more about Common terms in life insurance policies

Read more about Life insurance policy in India – How does it works?

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