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How to Maximize the Benefits of Health Insurance with a Top-Up Plan

There was a time when car drivers would dread punctured tyres. It was only in 1904 that Thomas Morris Davies of UK conceived the idea of adding an extra tyre. It can be used if any of the main tyres get damaged. Your health insurance top-up scheme plays a similar role. You can literally call them a Stepney to your existing health reimbursement policy. They come to your rescue when your original sum insured exceeds your hospital bill.

Does It Make Sense?

Let us take this example. Suppose you have health insurance with about Rs 5 lakh as the sum insured. It might be so that under some emergency circumstances, your health bill shoots to Rs 6 lakhs. Which means you would run short of Rs 1 lakh. You can make up for it without much hassle. You can either buy a separate policy or upgrade it to get covered. Your insurer can help you in this regard. However, it is going to cost you about Rs 6000, or even more. On the other hand, going for a health insurance top up would cost you just about Rs 2000 on a yearly basis. You can say that going for a top up is feasible when you wish to get higher coverage without paying excessively.

Making a Claim

Reliable insurers make it convenient for their clients while applying for top up. Almost all of them maintain an in-built team that settles claims quickly. On average, it takes about 90 minutes or so to settle cashless claims. For settling reimbursement claims, it might take about 15 days of receiving the claims. A number of service providers offer their SMS services to give periodic updates on claim settlement. Claiming for your reimbursement is very simple, as well. You can do it online through the company website, or physically submit the form to the nearest branch office of your service provider.

Partnering With Your Health Insurance Company

There are a number of perks of choosing your Health insurance plans with the premier service providers. For example, you get a cashless card as a member. If you pay the premium by cheque, then you can also get an 80D certificate. It would help you to save tax. Some companies offer floater benefits that allow covering your spouse and children under a single sum insured. If you have an existing mediclaim policy and feel that it is not good enough, then you might want to port it. Different insurance companies offer easy portability service.

What is more, many companies offer a free look period. What if you are availing the services of a company and wondering whether it works fine for you? Companies providing free look facility allows you to cancel the policy within a stipulated date after purchasing it. However, no matter the insurer that you go for, make sure that you read their company policies well in advance even before signing up.  

What is third party car insurance?

What is third party car insurance?

While purchasing a car insurance, you need to consider several factors. The type of coverage you seek is one of most important aspects you must look out for. Well, you must have heard of third-party car insurance. This is different from a comprehensive policy, and offers different benefits altogether. Here, you will come across all you should be knowing about third party car insurance policies.

When you buy a third-party car insurance plan, you get a coverage against legal liabilities that arise as a result of injuries caused to a third party. In these situations, the fault lies with the policyholder. The damages and injuries that are caused by your vehicles are covered, that are caused to any third-party person or property. According to the Motor Vehicles Act, 1988, it is compulsory for all the motor vehicle owners to get a third-party insurance when they buy a vehicle in India. Therefore, when you buy a car policy, make sure that it comes with a third-party coverage.

Benefits of having a third-party coverage

With a third-party coverage, the owners of the vehicle remain insured against any legal liability arising due to accidents. These liabilities include bodily injury or death of another person, when the insured vehicle is involved in an accident. The Motor Vehicle Act states that one can file a third-party claim under the ‘no fault liability claims’ category. However, you should be aware of the exclusions of these policies.

 The policy will not be covering any damage that has been caused to the automobile. Besides, it will not cover the damage to any of the belongings of the third party that may be inside the vehicle. You too, will not get any coverage if your vehicle is damaged or stolen. This applies to all your belongings inside the car as well.

Difference between comprehensive coverage and third-party coverage

Several aspects determine the pros and cons of these two kinds of policies. Evidently, you need to understand these aspects, so that it becomes easier to analyze, compare and evaluate the benefits before you make a decision. These factors include:

The value of your vehicle

 In case you are owning a low-value vehicle, it is recommended to buy a third-party insurance. This indicates that you can easily manage the repairs required as a result of any possible damage. Comparing the costs, it appears that you will find it economical to pay the bills for repairing the vehicle, than to pay the high premium associated with a comprehensive coverage. However, if you have bought an expensive car, or if it is a brand-new vehicle, you should get a comprehensive coverage.

Coverage

When you buy a third-party coverage, you will get protection against the damage caused to any other vehicle. Besides, it includes bodily injuries that may be caused during the accident to a third party. With certain insurance providers, you may have to pay a little more premium for third-party coverage. However, it will not provide coverage for the damages that your own car might suffer.

When you buy car insurance online, you might want to buy a comprehensive car insurance plan. These plans offer a wider coverage and include the third-party liabilities too. As the coverage is broader, comprehensive policies are more expensive.

Best Term Insurance Plans

For a good period of time, public-sector insurance companies dominated the industry for term insurance plans. However, in recent times, standardization followed by the digital boom in the insurance segment brought about major changes for good. Now, you will find that many private insurance companies have included term insurance plans as a part of their offering.

In this piece, we will look into what term plans are and how to choose the right one to secure the future of your near and dear ones, thus ensuring complete peace of mind.

Everything You Need To Know About Term Insurance Plans

A term insurance plan offers to cover you for a particular period or a defined “term” of years. The premiums for such plans are lower compared to endowment policies since it is a pure risk insurance product, which means that the benefits are only payable on your demise during the policy period to your nominees and nothing is paid on surviving the defined policy term.

The features of term insurance plans are as under:

  • Flexible Policy Term: One of the main benefits of such policies is the flexibility it provides in its duration. You can opt to be covered for as little as a year and as long as 40 years or till age 80 or even more.
  • Death Benefit: In the event of your demise during the policy term, your nominee will be paid the sum assured.
  • Low Premiums: When compared to other life insurance plans, the premium for term insurance plans is reasonably low.

While determining the premiums, the insurance company will take into account the cover amount, your age at the time of policy purchase, your current annual income and the policy period.

How is term insurance different from other life plans?

Life insurance policies can be availed in various forms – endowment policies, unit linked insurance plans or money back policies. Such plans are basically investment plans where a lump sum gets paid to your nominee in the event of your demise or offer you a maturity benefit if you survive the policy tenure. Term insurance, on the other hand, is purely a death benefit plan which pays out the sum assured to your nominee if you pass away during the policy period. Should you outlive this period, the insurance provider is not going to pay any survival or maturity benefit.

Riders offered in term insurance:

Several term insurance plans come with extra benefits referred to as riders, which can enhance your coverage. Riders can be opted on your base policy for an added premium. Below are some of the riders that are offered with term insurance:

  • Accidental Death Benefit Rider: In case an accident results in your untimely death, you nominee stands to get added benefits in the form of additional sum assured.
  • Waiver of Premium: You will not be required to pay future premiums if you become permanently impaired. In case the life insured and proposer are different, all future premiums are waived off in case of death of the proposer under this rider.
  • Critical Illness: During the policy tenure, if you suffer from any of the listed critical illnesses, the insurance company will pay an amount equivalent to your chosen sum assured.

How To Buy Term Insurance Plans?

Term insurance plans can be purchased through the official website of insurance broker, Coverfox in just a few clicks. All you need to do is enter a few personal details like age, gender and mobile number and then click on View Quotes. For better results, it is recommended that you mention your smoking habits, annual income, and policy period. This will enable the broker to assess your needs better and accordingly fetch policies that match them.

When you compare policies of different insurance companies, make sure to take into account the premium rates, features, claim settlement ratio and average time taken to settle claims. Although premiums do play a huge role in determining your policy choice, it mustn’t be the sole criterion for selecting an insurance policy. Take into account the features that you are getting for a particular premium rate. Another very important factor to be considered when you compare different policies is the claim settlement ratio. Look for those insurance companies that have a high and consistent claim settlement ratio as such insurers are reliable and can be trusted for claim payment.

To find the most suitable term insurance plan, get in touch with Coverfox’s customer support team by dialling 022 6179 2900. You can also visit the company website to compare all the insurance policies offered by the leading players in the industry and buy the plan that fits your insurance needs and budget.

A guide to buying health insurance plan for senior citizens in India

With the changing lifestyles and increasing medical costs, having a health insurance policy is a must. More so for senior citizens as they are prone to illnesses and have limited or no income source.

Today there is an array of health insurance plans that assure you high benefits at low premium rates. But the real challenge lies in opting for a right health policy that will cater to the needs of your parents.

So how do you choose the right Health Insurance for senior citizen above 60 years? Quite a daunting question, right?  We would say no, if you read the below guide that helps you understand all about health insurance for senior citizens in India.

What is a senior citizen health insurance plan?

You never know when a sudden medical emergency for your parents can result in a financial crisis. Hence, at times like these, having a senior citizen health insurance plan is beneficial.

A senior citizen health insurance plan offers financial coverage to individuals aged between 65 years to 80 years.

Why to buy senior citizen health insurance for the elderly?

Here are a few reasons on why you should consider buying a health insurance plan for your parents:

Skyrocketing medical expenses

Parents might have limited income

They might be dependent on their heirs

Senior citizens are more prone to illness

Types of health insurance plans that provide coverage for senior citizens:

When you are a child, you are your parent’s responsibility. But as you grow younger, your parents become your responsibility. Hence, taking care of them when they grow older is a necessity.

So here are health insurance plans that provide coverage to senior citizens.

Individual plans:

This type of plan provides cover only for one person who can avail hospitalization benefits.

Group plans:

Many employers today offer health insurance plans that cover family members of the employees. But, a few plans don’t provide parental coverage and cover only the spouse and kids of the employee.

Family Floater plan:

This type of health insurance plan provides cover for the entire family of the policyholder. It lets you claim the entire amount for the medical expenses of one member and covers the cost of individual family members up to the sum insured. If you are thinking to cover your parents under this plan, then it would cost you a higher premium. This is because the premium for the family floater plan is calculated on the basis of your parent’s age.

Senior citizen plan:

IRDA has mandated all the insurance companies to give insurance to people up to the age of 65. Under this plan, the waiting period for pre-existing diseases is low as compared to other plans.

Factors to keep in mind while buying health insurance for senior citizens:

Waiting period:

Health insurance policies come with a waiting period, on the fulfilment of which a policyholder can make claims. Generally, a health insurance policy has a waiting period of over 30-90 days. Certain policies also have a waiting period for specific illnesses.

For eg.x: Bajaj Allianz Silver Health policy has a waiting period of 30 days, before which policyholder cannot make claims. Also, the same policy covers diseases like hernia, piles, cataract and others after a waiting period of 1 year.

So always check for the waiting period as senior citizens fall prey to illnesses soon and then you might end up paying from your own pocket.

Pre-existing diseases:

This is a critical factor that can affect your policy. If your parents have any existing diseases, then you will have to wait for a few years before you claim. Health Insurance policies have a cap limit for covering these diseases after a year or two or even more. The illness and resultant hospitalization, days after buying the policy won’t allow you to make any claim.

Sum Insured/ Cover:

Considering the growing age of your parents and rising medical costs, it’s always a better idea to opt for a cover with the highest sum insured. But, higher the sum insured, higher the premium, which is also subjected to an increase on the renewal of the policy.

Entry age:

A few insurance companies limit the entry age up beyond which your parents are not eligible for a senior citizen health insurance policy. The Bajaj Allianz-Silver Health Plan for Senior citizens has an entry age of 46-70 years. While the Apollo Munich and Tata AIG provide health insurance without any entry age restrictions

Alternative treatments:

Always check if the plan provides coverage for treatments like Ayurveda and homeopathy. This is because your parents would not always opt for cumbersome hospitalization process and high doses of medicines.

Sub-limit:

A few insurance policy specific a sub-limit for various diseases. For instance, a policyholder can only claim 50,000 for treatment of an eye operation even if he has a sum insured of Rs. 5lakh.

It’s always better to opt for a health policy without any sub-limit as you never know when your parents would need medical treatment.

Co-payment:

Co-payment requires the policyholder to pay a certain percentage of the medical expenses incurred. This means that if you have a claim settlement of 2 lakh then you will have to pay 10-30% co-pay as mentioned in your policy. And the rest of the amount will be borne by the insured. Policies without this factor usually have a higher premium.

Deductible:

This factor requires you to pay a fixed amount at the time of claim settlement. For example: If you have a claim amount of 30,000 and have a deductible limit of 5,000 then the company will only pay you 25, 000. Ideally, one should opt for a plan that has the least deductible clause.

Renewal age:

All health insurance policies have an age limit only until which you can renew the policy. Generally, health insurance policies for senior citizens in India can be renewed till 90 years. Also, a few companies have set the renewal age limit only till 80. So it’s always wise to check on the renewal age to have to understand till what age your parents are insured.

Network of hospitals:

Insurance companies offer you a list of hospitals that are covered/fall under their network. If you visit a hospital covered by the company, then you can opt for a cashless treatment. But, if you visit a hospital that is not covered under the company’s network, then you will have to pay the bills first, which will be reimbursed later.

A senior citizen health insurance policy should cover a broad network of hospitals in your vicinity as you never know when a medical emergency would strike in and your parents would need immediate hospitalization.

Exclusions of senior citizen health insurance plan:

A health insurance plan for senior citizen does not cover the following

  • Self-inflicted injuries
  • Treatment of AIDS
  • Cosmetic surgery
  • Dental treatments
  • Any non-allopathic treatment
  • Any pre-existing injuries/diseases
  • Expenses as a result of drug abuse
  • Cost of spectacles/lenses and dental treatment (except arising out of accident)
  • Injury due to war, the act of foreign army etc.

Best health insurance plans for senior citizens:

InsurerAgeRenweal agePre-existing Medical check up
National Insurance-Varishtha mediclaim for senior citizen60-80 yearsTill 90All pre-existing diseases are covered after policy has been in force for 48 monthsNot required if the policyholder was covered with a health insurance plan since last 3 years.
Star Health-Senior Citizen Red Carpet60-75LifelongCoverage provided from 2nd yearNo medical tests required
New India Assurance Co.Ltd60-80Till 90Coverage provided after 18 months

Medical health check required for new entrants

 

How To Find The Best Home Insurance Provider At Your Place

Unquestionably, home or personal property is one among the most valuable assets for anyone. It is because the concerned owners put in the money earned through hard efforts all through their lives in buying or acquisition of home or other residential properties. Though we make our best efforts to offer complete security and protection to our home however there are always chances of some damage or risk to your home from unavoidable threats. In case, such damage occurs to your property then you need to spend huge amounts of money in getting the necessary repairs or replacements done for the damaged structures or portions.

Here home insurance proves to be quite helpful for the home owners. It is because they compensate for the loss incurred by the concerned owners due to certain damages caused as a result of some unexpected or sudden incidents or accidents. Here are some of the sources or ways and means that help you to find the best home insurance providers such as Farmers Home Insurance at your place.

Get references through your acquaintances

Numbers of people around you such as your friends, neighbors, colleagues or other acquaintances may have opted for Farmers Home Insurance or insurance provided by other agents. They may know about the best home insurance providers at your place and hence guide you in finding and selecting the most reasonable and excellent one out of them.

Search through advertisements through various modes

It is also a good mode of finding the best home insurance providers such as Farmers Home Insurance. There are numbers of media sources such as newspaper, commercial magazines, Television or other sources over which you can find advertisements about the best home insurance providers. You may look through all such ads and contact such providers or agents that seem to be best to you. You may contact some agents and then select one that is most suitable to you as per your unique requirements.

Give a look to telephone directories

The local telephone directories at any place contain all the contact details of various professionals operating at your place. The services offered by home insurance agents also fall under professional services. Thus you may look through telephone directories and get phone numbers and contact details of the various agents operating at your place. It is in fact a convenient and time saving option as you can use phone to contact the concerned agents’ right from your place.

Check from concerned authorities at your place

For any types of professional services such as home insurance, certain government or private authorities are always there at any place. These authorities are meant to issue some registration number or authorization number to the various home insurance agents or other professionals. You may contact such authorities and inquire about the various home insurance agents for your purpose.

Explore internet

Again it is an easy and time saving option as you can explore various websites or other sources to find the best home insurance agents right from your own place. Also it gives you detailed information, reviews as well comparisons amid various leading home insurance providers at any place. Thus your task is simplified and eased to great extent.

By using any of these modes or sources you may find the best home insurance providers at your place.