Yearly Archives : 2021

Life insurance is something every individual must have in place to secure the financial future of their loved ones. Term insurance is one of the most popular types of life insurance because it offers large amounts of sum assured at affordable premiums. If you are a Non-Resident Indian (NRI) and are considering buying a term insurance plan in India, here are a few things you need to think about:

1. Make sure you are eligible

You can buy a life insurance policy if you either qualify as an NRI or a Person of Indian Origin (PIO). An NRI is an Indian citizen who is residing in a foreign country for an extended period – at least 183 days in a financial year.

A citizen of another country, other than Bangladesh or Pakistan, is considered a PIO if at any point they held an Indian passport or whose parents, grandparents, or great grandparents were Indian citizens. The spouse of an Indian citizen or an individual who qualifies as a PIO according to one of the above clauses is also considered a PIO.

2. Select the right insurer

Once you’re sure you qualify either as an NRI or a PIO, you should compare different insurers offering life insurance for NRIs. When selecting a term insurance policy, you shouldn’t simply compare the premiums. A low premium does not always mean the right policy or one that offers comprehensive coverage. An important factor to consider is the claim settlement ratio of the insurer. This ratio tells you how reliable the insurer is when it comes to settling term insurance claims. A 95% claim settlement ratio means they settled 95% of all the claims they received in one year.

You should also look at the turnaround time because you want to opt for an insurer who is quick in settling and disbursing the funds. Other things to look at are the quality and accessibility of customer service, brand image, and if they have a specifically designed process in place to help NRIs with documentation, medical tests, etc.

3. Figure out the medical exam procedure

A medical test is mandatory in the case of life insurance in two cases – either if your age is above the one specified by the insurer (usually 35 or 40) or if your policy amount is above Rs 10 lakhs. What the medical test entails will depend upon factors such as your age, family’s medical history, and your lifestyle habits such as whether you drink alcohol or smoke. Generally, a urine and blood test are conducted, and your height and weight are measured. Additional tests may be required to measure cholesterol levels and STDs.

As an NRI buying term insurance in India, you can go about the medical test in two ways. One, you can come to India and get your medical test done through the insurer. Or two, you can get your test done in the country of your current residence as per the terms of the insurer and send them the reports. Most insurers have tie-ups with overseas medical facilities for the medical examination.

4. Determine how you will pay the premium

Once you narrow down on the insurer and select the term insurance policy, you need to consider how you’re going to make your premium payments. You can pay your term insurance premium through a Foreign Currency Non-Resident Account (FCNR). This is a type of fixed deposit account that is held in foreign currency for depositing the income that you earned overseas.

Alternatively, you can also pay in Indian rupees through a Non-Resident External Account (NRE) or through a Non-Resident Ordinary Account (NRO) depending on whether your income source is entirely from overseas or partly from overseas and partly from India.

5. Understand how you will be taxed

When it comes to life insurance, there can be three points of taxation – when you pay premiums, when you earn interest, and when you receive the payout either as a death benefit or maturity benefit. There are different sections under the Income Tax Act, 1961 in India that allow for certain tax deductions and exemptions for various instruments including life insurance policies. However, when you look at term insurance for NRIs in India, you need to consider:

• Do these sections apply to you as an NRI
• What the tax laws are in the country you are currently residing in

You can consult a financial expert who can help you figure out how your term insurance will be taxed in the context of both India and the foreign country.

Conclusion

If you have any doubts about either the process of buying the policy or the claim settlement process, you should reach out to the insurance companies you have narrowed down. It will not only help you get a clear idea of the policy, but you will also be able to tell how the service of the insurer is.

If you are a car owner, you would be well aware that having a car insurance is mandatory to drive in India. But if you are someone that has done a bit of research about traffic regulations in the country, you will know that only a certain amount of insurance coverage is mandatory.

According to the Motor Vehicles Act, 1988, any vehicle that drives on Indian roads should be covered under at least a third-party car insurance policy. This is because the policy is aimed to cover you against any legal or financial liabilities in the case of an accident. More precisely, if your car ends up causing physical harm or property damage to a third-party, they are entitled to compensation that can be too much to bear for you. Hence, the insurance provider will cover you for it. However, a third-party policy is a minimum requirement. This means there is always more coverage that you can go for.

The other option you have is to go for is a standalone policy. It is the opposite of a third-party policy. Where a third-party policy only covers liabilities, a standalone policy only covers own damages. Hence, if you buy a standalone policy, you will have to cover the liabilities of an accident. Moreover, you might be fined for not having liability coverage by traffic authorities. Hence, what you need is a holistic coverage option. One such option is a comprehensive car insurance policy. Here is why you should select comprehensive car insurance:

Highest form of coverage

Out of all the car insurance coverage options, a comprehensive policy offers the highest degree of protection. It gets its name for the 360-degree coverage that it offers. Firstly, it offers the coverage of a third-party policy. This means that coverage for legal financial liabilities is included. Adding to that, the policy covers own damages. This means it offers compensation to you in the case your vehicle suffers any damages or loss due to an accident or any other mishap. You can either claim reimbursement of all the money you spend on repairing your car or you can make a cashless claim and have your insurance provider cover the repairs. The latter out of the two is often preferred. If you want holistic coverage for your car, you should immediately use a car insurance calculator to get an idea of how much a comprehensive policy will cost you. * Standard T&C Apply

Compensation for death or disability

A comprehensive car insurance policy provides coverage for physical injuries and/or death of the driver /owner of the car. In case, the policyholder suffers from a partial disability, permanent disability, or death, there will be a fixed amount that will be paid out to the parties concerned. In the case of a disability, the policyholder will receive the amount. In the case of death, the amount will be given to a nominee of the policy. * Standard T&C Apply

Protection from natural calamities

Usually, at the time of car insurance claims, the damage to be repaired is due to a road accident or vandalism. However, that is not the only way your car can get damaged. Sometimes, you could have simply parked your car and an earthquake, or a flood could do major damage to your car. A comprehensive policy covers your car against damages caused by natural calamities. In the case that your car gets damaged beyond repair, you will receive a pay-out as compensation for the car. * Standard T&C Apply

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.

Health insurance is critical, especially after a global virus which brought the world to a standstill. The importance of having a health insurance coverage cannot be emphasized. Any minor medical treatment in 2021 can not only mean deep expenses, but also can result in a debt trap. Since health is something that you do not wish to compromise upon, so why hold back when selecting a health insurance cover.

To ensure the safety of your entire family, a family floater health insurance comes handy. Here, a common sum assured is shared among all the beneficiaries and thus you need not worry about availing multiple insurance covers for each member. However, as age increases, the health needs of different family members change. This is when reassessing your coverage is required. Revised insurance coverage helps to update your family floater policy as well as stay prepared for future medical treatments.

Do you need to update family floater health insurance periodically?

• With soaring medical inflation, healthcare has become highly expensive. A single case of hospitalisation can burn a hole in your wallet. Moreover, a policy with smaller sum assured can easily get exhausted for a minor medical procedure thereby leaving no coverage for future treatments.
• Upgrading your health insurance policy can often be a lengthy process, not in terms of documentation, but for the research that is required. With myriad insurance plans available in the market, it becomes difficult pick one. Hence comparing them thoroughly is essential.
• The estimated cost of treatment in the future needs to be assessed only after which the sum assured must be selected. Thus, you need to keep revaluating whether your health insurance policy covers for the same or not. The existing cost of medical treatment will help you decide if the coverage is adequate or not. If not, it is best to upgrade your insurance coverage.

So, for being ready to tackle unexpected medical exigencies, it is best to keep updating your family health cover periodically.

What are the benefits of health insurance that an upgrade offers?

Here are some benefits of health insurance that you can avail by updating your health insurance cover:

1. Higher sum assured

With increasing cost of treatment, a revision in your sum assured helps you stay abreast with the expected medical cost. Such higher coverage helps provide a comprehensive treatment without having to worry about financial stress.

2. Modification of beneficiaries

If your family is celebrating the arrival of a baby, updating your health insurance policy can help to add insurance coverage for the newborn too. Generally, family health insurance policies offer coverage as early as 90 days thereby ensuring protection for your newborn right from the start. * Standard T&C Apply

3. Adjusting the deductible component

Health insurance plans have a deductible clause wherein a specified amount of claim needs to be borne by the policyholder. Since it is an out-of-pocket expense, it directly impacts the premium. So higher the deductible, lower is the premium and vice versa. You can adjust such deductible component based on your present finances. * Standard T&C Apply

With these different benefits, make sure your family health insurance coverage is always updated and look for any updated requirements in coverage. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.

Traders are working hard to fulfill their dream in the market. But, the real truth is, 92% to 95% of them fail to succeed in the market. However, by listening to this, as a trader, you should not think, you can’t achieve your goal in the market. Remember, if you can make the right decision, it would become easy for you to make money in the market. However, most of the traders fail to make the right decision in the market and thus lose money. Bear in mind, in stock trading, traders should take the steps of thinking properly. Or else, it wouldn’t be possible to do well.

However, in this post, we will discuss the five common errors of the stock trader. We hope it would help you to solve your problems.

Overtrading

Many traders start overtrading in the market. They think they can easily earn more by trading more. But, in stock trading, it’s important to choose the profitable trade to make money. Being a stock trader, if you try to trade more but you have made the wrong selection, you can’t get success in the market. For this reason, you need to avoid overtrading. Try to trade by following the plan properly. Make an advanced plan where you need to mention how much trade you will do.

Using high leverage

Some traders use the high leverage for trading more. For this reason, if the market goes against them, they face a major loss. The leverage indeed allows the traders to make more profits, but it also risky. So, before borrowing the leverage, traders need to consider their capital. Some traders take the high leverage and lose huge money in the market. So, they can’t trade for a long time. If you intend to know more about the optimized leverage, see here. Remember, the good broker will never offer insane leverage as it makes things hard. Keep the leverage factor low and try to improve your skills rationally.

Try to beat the market

As a trader, you should understand, you can’t control the scenarios of the market. That’s why smart stock traders change themselves to adjust to the market. But, newbies can’t understand the scenarios properly and can’t take the right steps. However, if they gather knowledge about the market, they might recognize the different characteristics of the market. Besides this, the newbies can take help from their mentors to make the right decision. So, the most important thing is, they have to take the proper preparation to run their trading process systematically. Or else, they can’t do better in the market.

Not being confident

Some traders are not confident in terms of trading. They feel fear, they will lose money. That’s why they can’t apply the right strategy and can’t grab the good opportunities of the market. For building confidence, they need to prepare themselves properly. Such as, they should focus on developing the skills, making a better plan, and applying innovative techniques. However, if they are confident about their abilities, they might not lose their money. So, being a stock trader, you should follow the professionals to know how they have taken the preparation.

Excessive emotions

Remember, excessive emotions let you down in the market. So, you should try to avoid your emotions in the market. To avoid emotions, it’s important to increase the courage level. If you have enough courage, you will not take any wrong steps in the market. However, if you know how to handle the various situations of the market, you might get the courage to deal with the market. So, firstly, traders should collect the basic ideas of the market to perform properly.

So, these errors are responsible for losing money in the market. That’s why being a trader, you should avoid the major emotions which will help you to do better in the market. However, take some necessary measures to avoid making errors.