Individual Health Insurance
Individual Health Insurance
Even a short visit to a hospital for a couple of days can set you back financially by a considerable margin. And it is no secret that the cost of medical care is always on the rise. Failing to take adequate precautions can leave you vulnerable to such expenses. Choosing a health insurance plan can be one of the most sensible options.
Another alternative is to save as much as you can. Yet even a minor surgery or hospitalisation for a few days can wipe away all these savings. A health insurance plan, on the other hand, will ensure that you are not burdened with the thoughts of expenses while seeking medical attention. Here is all that you need to know about an individual health insurance plan.
What is individual health insurance?
The lack of a health insurance plan can set you back financially in the case of a medical emergency. For individuals, these expenses can be a lot. This is where an individual health insurance plan can come in handy.
An individual health insurance plan offers coverage against medical expenses for a single person or an individual, thus the name. You can buy the plan for yourself, your spouse, your child, or your parents. Insurance providers consider a number of factors such as medical history, age, gender, etc. for determining the insurance premium for the policy.
A comprehensive individual plan will protect you against most medical contingencies. However, you can further improve the plan’s coverage by opting for add-ons by paying a small premium amount. It is one of the most effective ways to buy individual health insurance plans.
Types of individual health insurance plans available in India
This plan is ideal for individuals, spouses, children, and parents. Being a comprehensive plan, it offers protection against most medical conditions.
Treatment of crucial illnesses such as cancer, kidney failure, paralysis, etc. can be quite expensive. A critical care plan will safeguard you from such expenses.
This plan is ideal for individuals who are above 60 years old. The plan is also comprehensive in nature and offers coverage for most requirements. Insurance providers might require a comprehensive health checkup before issuing the policy.
How does an individual health insurance policy work?
Wondering how a health insurance policy works? It all starts with you choosing an individual health insurance plan. To choose a plan, you can decide on various factors such as coverage on offer, premiums, pre-existing conditions allowed, waiting periods, etc.
As per the policy and the insurance provider, the coverage for pre-existing conditions will differ. It is crucial that you keep a close eye on the coverage.
Based on the details provided by you, the insurance provider will calculate the insurance premium. Some insurance providers require you to undergo a full-body checkup before issuing a plan. Post this, the insurance provider will issue the policy. You must pay the premium decided by the insurer every year and in return, you will receive a sum insured or maximum amount of coverage.
Once the policy is issued, and you want to avail of the benefits, you will need to file a claim for it. The claims can either be cashless or reimbursement-based. Should you opt for cashless claims, the insurance provider will directly settle the bill with the hospital. On the other hand, in reimbursement claims, you must pay for the expenses out of your pockets and file for reimbursement, where the insurer will compensate the expenses.
In the event, that you do not file a claim, there are two possibilities. Some insurance providers offer a no-claim bonus, which is essentially a discount on the premium paid. While other insurance providers offer to increase the sum insured for the policy if no claims are made.
Features and benefits of individual health insurance
Choosing to add a health insurance plan to your financial portfolio can be beneficial in quite a few ways. The following are some salient features of an individual health insurance plan.
1. Medical Coverage
The plan offers medical coverage for the insured. Depending on the terms and conditions of the policy, the insurance provider will pay a certain amount for medical expenses incurred by the insured.
2. Inclusions and exclusions
Like any other insurance plan, individual health insurance plans also have inclusions and exclusions. These are essentially the conditions where your policy is valid and when it is not.
3. Co-payment
Health insurance policies usually have a clause for co-payment. If your plan has such a clause, then you must bear a certain percentage of the medical expenses and the insurance provider will pay for the rest.
4. Add-ons
You can improve upon the coverage of the policy with the help of add-ons. By paying a small premium, you can add more features to the existing plan.
5. Renewal
Most of the health insurance plans come with lifetime renewability, ensuring that you have coverage for longer periods of time.
6. Pre and post-hospitalisation
Most insurance providers cover pre and post-hospitalisation expenses. This allows the insured to get ready and recover from medical treatment without worrying about additional expenses.
The following are some benefits of choosing an individual health insurance plan.
1. Medical expenses
The biggest benefit of opting for a health insurance plan is that the policy will cover your medical expenses. Considering the ever-increasing cost of medical care, it can be a massive factor in savings.
2. Tax benefits
When you buy an individual health insurance plan, you will end up paying premiums for the policy. And the premiums that you pay will give you a tax deduction under Section 80D.
3. Cashless services
Consider this, You undergo medical treatment at a hospital and walk away without having to pay anything or by paying minimal admission charges. This is possible if you have an individual health insurance plan and avail of cashless benefits.
4. Daily allowance
It is possible that the insured is admitted to a hospital for a few days. In such cases, insurance providers offer a daily allowance for each day the insured spends at the hospital. It can be particularly beneficial for the breadwinner of the family.
What is covered under individual health insurance plans?
On choosing an individual health insurance plan, you usually get access to the following coverages. It is important to note that the actual coverage might differ a bit, depending on the insurance provider and policy.
1. Inpatient expenses
The policy will cover expenses related to a patient who is admitted for more than 24 hours. Examples of expenses include ICU charges, room rent, nursing charges, drugs and medications, etc.
2. Pre and post-hospitalisation
The plan will cover expenses before admission to the hospital and even after discharge.
3. Ambulance charges
Plans cover the expenses related to ambulances during accidents or emergencies.
4. Daycare treatment
The policy will cover expenses related to medical procedures that require admission for less than 24 hours.
5. Preventive checkup
Insurance providers usually cover the changes related to a preventive health checkup of the insured.
6. Domiciliary treatment
If a doctor recommends the insured to undergo a treatment right from their homes, the expenses will be covered by the insurance provider.
What is not covered under individual health insurance plans?
While an individual health insurance plan covers a lot of expenses and scenarios, there are a few scenarios that are not covered.
1. Dental care treatment
2. Injuries related to nuclear perils or wars
3. Medical conditions due to drug or alcohol abuse
4. Injuries that are self-inflicted
5. Cosmetic treatment
6. Treatment of STDs such as HIV
7. Injuries or health hazards due to involvement in criminal activities
8. Experimental treatments are usually not covered
Are there any waiting periods under individual health insurance plans?
Yes, most health insurance plans have waiting periods for certain medical conditions. When you buy an individual health insurance plan, you must sail over the waiting period to file any claims for those medical conditions. Waiting periods are for very specific treatments or pre-existing conditions and the duration largely depends on the condition and insurance provider.
How to buy an individual health insurance policy online?
Fortunately, buying an individual health insurance plan is much easier than you might think. Here are a few simple steps to help you with the process.
1. Visit the website of your favourite insurance provider or insurance aggregator.
2. Look for the health insurance option from the catalogue.
3. Provide basic details of the insured such as age, gender, name, and contact information.
4. Inform the insurance provider or aggregator about any pre-existing medical conditions that you have.
5. Select a plan that offers adequate coverage and is within your budget.
6. Proceed with the premium payment of the policy.
7. Receive a digital copy of the insurance in your email ID within a few minutes.
How much individual health insurance coverage should you have?
The standard rule of thumb suggests that the sum insured by a health insurance plan should be half of your annual income. Given the rising medical expenses and the cost of some of the surgeries, a minimum sum insured of Rs. 10 lakhs is recommended.
Things to keep in mind while buying an individual health insurance policy
Before you set out to buy a health insurance plan, here are some things that you must keep in mind.
1. Policy requirements
Looking at your health requirements and buying a policy accordingly is essential. Keep a list of coverage that you would want in your policy, handy while choosing the plan.
2. Network hospitals
It is always a good idea to go through the network hospital list. Visiting a network hospital for treatment will allow you to avail of cashless benefits.
3. Sub-limits
Some insurance plans have sub-limits. These limits are essentially monetary caps on certain treatments, medical conditions, and diseases. Sub-limits can either be a specific amount or a percentage of the sum insured.
4. Premiums
Affordability of a plan is one of the most important factors in the decision-making process. It is important to look at the policy premium and coverage on offer, to help you decide whether to proceed with a plan or not.
5. Claims process
Another factor that you must look at before buying a policy is the claims process. Insurers who offer a simple claim settlement process will make it easier for you to live with the policy.
Tax benefits with individual health insurance policy
Buying a health insurance plan offers you tax deductions under Section 80D of the Income Tax Act. The upper ceiling for policy premiums is Rs. 25,000 for individual plans and Rs. 50,000 for senior citizen parents. In other words, a taxpayer can avail of tax deductions of Rs. 75,000 per year. If the insured and their parents are all senior citizens, the upper limit is set at Rs. 1 lakh per year.
Things to look at when buying individual health insurance plan
Here are a few other things that you must look at while buying an individual health insurance plan.
1. Inclusions and exclusions
Do not forget to go through the list of inclusions and exclusions of a health insurance plan. Overlooking the list can result in even claim rejections.
2. Waiting period
If you are looking for a specific cover, make sure to look at the waiting period for it. And if there is a waiting period, whether you are willing to wait for it to conclude. Waiting periods can range between a few months to a couple of years, depending on the condition.
3. Immediate diseases
Insurance plans do not cover illnesses within 30 days of buying the policy. Unless it is due to an accident.
4. Room rent
Insurance companies usually have a cap on the room rent. Make sure that you read the policy features in detail and are aware of any such caps.
5. Modern treatments
Another important aspect to check in your health insurance plan is the coverage of modern treatments. Since there are a lot of new types of surgeries available, such as robotic surgery, cyberknife, and even stem cell therapy, ensure that your policy covers these.
Documents required for individual health insurance
You would need the following set of documents to purchase an individual health insurance plan.
1. Proof of address
○ Driving licence
○ Rent agreement
○ PAN card
○ Passport
○ Aadhar Card
○ Utility bills
2. Proof of age
○ Birth certificate
○ Driving licence
○ Aadhar Card
○ PAN Card
○ Passport
3. Proof of identity
○ Driving licence
○ Passport
○ Voter ID
○ Aadhar Card
○ Passport size photographs
○ Application form filled out and signed
Individual health insurance claim process
There are two types of claims that you can opt for and the processes differ a bit based on them. And here are the steps.
Cashless
- You must reach out to the insurance desk of a network hospital and inform them about the intent to file a cashless claim.
- You will need to fill out the claim form either from the website of the insurance provider or from the insurance desk.
- The hospital will then send the estimate of the medical treatment along with other necessary documents to your insurance provider.
- Once the claim is approved, you can undergo the treatment.
- Before discharge, your insurance provider will directly settle the bill with the hospital.
Reimbursement
These steps are valid if you visit a non-network hospital for your medical treatment.
- The insured is admitted to the hospital and undergoes the necessary treatment by paying for the expenses.
- Post the hospitalisation phase, the insured can file a claim with the insurance provider.
- The insured will need to fill out the claims form and submit all the necessary documents such as bills, receipts, medical summary, reports, discharge summary, etc.
- Once the claim is approved, the insurance provider will submit the amount directly to your account.
Who should buy individual health insurance?
A lot of individuals can benefit from an individual health insurance plan. For example.
- Individuals looking for comprehensive coverage, rather than relying on floater policies.
- Individuals looking for additional coverage, apart from employer-provided health insurance plans.
- If other members of the family are already insured, it might be sensible to opt for an individual health plan.
- Individuals who have a greater risk of health hazards should have medical coverage.
- If you do not want to worry about the age limit when it comes to renewing the policy.
- It is for individuals who want to have a higher sum insured, as compared to the family floater plan.
Family health plan vs. individual health insurance
A family health plan offers coverage for each member of the family on a floater basis. While it offers coverage to each member, the sum insured is shared among all the members. Thus, multiple claims during a year can be a bit difficult. By paying a single premium, you can secure the policy for all the members of the family.
An individual health plan, on the other hand, requires a separate plan for each family member. Though the overall premium in such instances can be a bit high, they do offer better and higher coverage. For example, a family floater with a sum insured of Rs. 10 lakh will provide the same coverage for all the members. But an individual plan will offer Rs. 10 lakh coverage for each individual.
While family floaters can be more affordable, individual health insurance plans offer better coverage and sum insured.
How many claims are allowed in a year?
Most insurance providers do not have a cap on the number of times that you can file a claim. However, the amount of each of the claims is important. If the sum of all the claims exceeds the sum insured by the plan, the benefits will cease. Thus, you can file as many claims as you want to, as long as the total claim amount is less than the sum insured.
Is OPD benefit covered under individual health insurance?
OPD benefit or outpatient department benefit refers to medical treatment and consultations that do not require the patient to be admitted. These usually include doctor consultations, diagnostic tests, etc. Usually, OPD coverage is available as an add-on for individual health insurance plans.
To Sum Up!
An individual health insurance plan offers a lot of protection for an individual with and without any health issues. By investing in the plan, you can protect your finances in the future and even avail of tax benefits.
Frequently Asked Questions
Yes, you can choose add-ons for your individual health insurance plan during renewal. It will provide additional cover on top of the base cover.
Yes, you can. You can have group health insurance provided by your employer and choose another individual health insurance plan.
Individuals must be within the age limit of 18 and 65 years to buy an individual health insurance plan.
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A person in their 20s will pay a much lower premium than a person in their 40s, even for the same coverage. This is because younger people are naturally healthier and there are lower chances of their death. Buying a life insurance term plan early is always cheaper. Health Condition– What’s Your Medical History Insurance companies often ask for health details or even a medical test before they issue term life insurance policies. A person with conditions like diabetes, high blood pressure, heart issues, or some other serious illnesses is at increased risk. A healthy and fit person will pay less and the one with pre-existing health problems will pay more. Lifestyle Habits– Smoking, Drinking etc Smoking is never liked by insurers and they charge smokers up to 40–60% more than non-smokers for the same life insurance plans. Similarly, those who consume excessive alcohol also face higher premiums. The reason is simple. These habits tend to shorten life expectancy and increase insurer’s risk. Occupation– What’s Your Nature of Work? People with a regular office job are considered at low risk. Those who work in high-risk jobs (like mining, construction, armed forces etc) will be charged higher premiums. After all, these professions involve greater danger to life. Policy Term and Coverage Amount In providing longer term plans, the insurer is taking a risk for more years and so, they cost more. Similarly, a higher sum assured means a higher premium. But at the end, term insurance remains the most cost-effective way to get large coverage. Gender– Women Often Pay Less Stats show that women live longer than men and so, the premiums for women under life insurance term plans are often slightly lower. Yes, men of the same age and health profile have to pay extra. Family Medical History Insurers may charge more if genetic diseases run in your family like heart issues or cancer. However, if your family history is clear of illnesses, you may most likely enjoy lower premiums. Add-On Benefits (Riders) Riders add an extra protection. Accidental death cover, critical illness cover, or disability benefit are very useful but they also increase the premium. A term plan with a critical illness rider will be more expensive than a plain policy with the same coverage amount. Let’s take an example to understand premiums. Varun, age 25, buys life insurance term plan of ₹1 crore for 30 years. The annual premium is ₹8,000. Abhishek, age 40, buys the same policy for 20 years. He pays ₹22,000 per year. Here, Abhishek pays almost 3 times more for the same coverage. Why? Because he wasted so many years waiting. It shows how age and health are such big factors in premium calculation. How Do Insurers Actually Calculate? Let’s make things very simple for you to understand. So, all insurance companies use “mortality tables”. These are data banks of statistical information that is all regarding life expectancy. In this, they look at: The age bracket you fall in Chances of survival at different ages Risk factors, if any, like smoking, diseases or occupational hazards They use this data to calculate the total cost of covering you. On top of it, they add in extra charges for expenses, riders and profit margins and that’s how it’s decided what your final premium will be. So, for example the company is calculating the car insurance amount. Now, the premium of a person with a clean driving record will obviously be less than that of someone with a history of accidents. Why Premiums Differ Between Companies As it ever happened that you found out that one insurer is offering a life insurance term plan for a lesser price than the other for the “same” cover? Yes, it happens because: Not all insurers use the exact same data and assumptions. Some may also offer lower premiums to attract more customers to buy. Some insurance plans have built-in benefits that just make the plan costlier. That’s why it’s always recommended to compare life insurance plans before signing up for one. How to Keep Your Premium Low: Useful Tips Buy Early– Don’t wait for your later years. The younger you are, the less you
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Life is so unpredictable that one day, you feel your future is safe & secure and the other day, some unpleasant event can turn everything upside down. While you can’t know what’s going to happen, you can be ready for the unexpected with life insurance for family. It ensures financial stability to your family when you’re not around to provide for them. But the real question is how much life insurance coverage is actually required by your family? Too little coverage is of no use and too much involves paying unnecessarily higher premiums. It takes some thought and planning to find the right balance so let’s make it simple for you. Why Life Insurance Matters At the core of it, life insurance aims to provide financial security to your family when you are not here for them anymore. It brings in income, pays off debts (if any) and even ensures your dependents continue to maintain their standard of living. Life insurance isn’t about the policyholder but those who are left behind. Think of it as an invisible shield that will protect the home, education and future plans of your dear ones. Here’s what the life insurance plans will help with: Cover the everyday household expenses Repay any outstanding loans eg. home loan Support the education and milestones of your kids Create separate fund for medical or other unexpected costs protect the retirement years of your spouse or the needs of dependent family members The Smart Coverage Rule Most experts will agree on the point that ideally, your life insurance coverage should be 10x to 15x of your annual income. Yes, not the same. So, let’s say you earn ₹12 lakh per year, then your coverage has to be between ₹1.2-₹1.8 crore. But why? Logically and practically, it will ensure that your family has enough to take care of their regular expenses, life goals and even future inflation and they don’t face hard times. However, this rule is just a basic advice. Your personal situation like debts, lifestyle and family responsibilities will influence the correct coverage amount for you. Factors That Decide Your Ideal Coverage The best life insurance plan actually depends a lot on your personal and financial situations. Here are the key factors that help you calculate: Monthly Expenses of Your Family: The first thing is to estimate your household expenses. Then you multiply that amount by 12. This will give you the annual cost of living. Now you can calculate for at least coming 10–15 years. Current Loans and Liabilities: If you have a home loan or maybe a car loan or any other debt for that matter, your life insurance should be enough to clear those dues after you. Education and Future Goals of Your Children: Your child’s higher education or marriage expenses are big-level financial goals that must be secured. So, these need to be thought of. Your Current Savings and Investments: If you already have savings or investments in place, like a fixed deposit or mutual fund, it can cover a portion of your family’s needs. Hence, you won’t need as much life insurance. Inflation: With every year, the cost of living increases. Your life insurance for family should also consider inflation so that the amount you get remains sufficient for the years to come. Types of Life Insurance Plans to Choose From Ideally, it’s always protection first and then investment. However, each family has its unique needs. Exploring the available life insurance plans will help you make a better decision: Term Life Insurance: It’s the most straightforward and affordable plan that provides large coverage at a low premium. You only get protection; no savings or maturity benefit. This will give you maximum coverage within a limited budget. Whole Life Insurance: Just how the name implies, this will cover you for your entire life. There may also be a savings element that builds cash value over time. This makes it useful for creating long-term wealth and asset planning. Endowment Plans: These plans bring the benefits of both insurance and savings. If all goes well and you survive the policy term, you receive a lump-sum amount. This money will help you in your retirement, for your child’s marriage or other life goals. Unit Linked Insurance Plans (ULIPs): These are the perfect mix of insurance and investment. Some part of your premium goes toward life cover and the rest of it is invested in market-linked funds. If you want both protection and wealth growth, this is it! Common Mistakes that People Make Many people buy life insurance just because they think that they have to. They never fully understand their needs. Keep these points in mind: Underestimating coverage needs: People choose a smaller sum to save on premiums. This may actually leave your family short of funds after some time. Ignoring inflation: A ₹60 lakh policy might sound large enough to you today but it surely won’t hold the same value in the next 8-10 years. Not reviewing policies regularly: Since your income and family responsibilities grow through the years, your coverage amount should also be updated. Relying solely on employer insurance: It’s not good for the long term because corporate insurance ends when the job is over. Ignoring debts and expenses: You have to include all your loans, bills and other financial commitments while doing the math. How do You Calculate the Correct Insurance Amount? Okay, so there is a simple formula for it that goes like- Total coverage Required= (Annual Expenses × Years of Support Needed) + Outstanding Loans + Long-term Goals – Current Savings/Investments For example: Annual expenses = ₹5.5 lakh Years of support = 12 Outstanding loans = ₹23 lakh Future goals (education/marriage) = ₹25 lakh Existing savings = ₹17 lakh Then, your coverage amount comes out to be: (5.5 × 12) + 23 + 25 – 17 = ₹97 lakh or almost ₹1 crore and hence, you ideally need a life insurance cover of around ₹1 crore. How Adequate
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Introduction As we age, we start taking our health more seriously. But with rising medical costs, we can’t rely only on savings or family support. Health insurance is important for adults and super essential for senior citizens. The right policy covers you in medical emergencies without draining retirement funds. Choosing from so many health insurance plans available in the market can be so overwhelming. The best health insurance policy for seniors will always be the one that lets them access quality healthcare without financial worries. Choosing insurance for senior citizens is not the same as for younger people because their health needs and risks are very different. Here we will discuss what to look for, how to compare the various options and how to choose the right cover. Why Senior Citizens Need Special Health Insurance Regular health insurance plans are often not suitable for older adults. The reason is simple. With increasing age, there’s a rise in medical needs, doctor visits and chances of hospitalizations. Most definitely, the policies designed for younger people don’t offer the coverage that seniors really need. Here are the reasons that make senior citizen health insurance so crucial: Higher medical risks– Older adults are obviously more prone to illnesses. Heart disease, diabetes or joint problems are common. Rising treatment costs– With every passing year, the cost of hospital stays, surgeries and medicines is going up. Limited income after retirement– Most seniors depend on their pensions or savings. This may just not be enough to cover sudden expenses. Peace of mind– Having a health insurance means the financial load is off from your pocket and emergencies can be handled. Features of a Good Senior Citizen Health Insurance When you’re looking for the best health insurance policy for seniors, take a little time to decide but don’t jump on the first policy you see. After all, you must carefully compare the options and look for these key features: Higher Sum Insured You can never expect the medical bills and so, the higher the sum insured, the better. It’s generally recommended to go with plans that offer at least ₹5–10 lakhs cover for insurance for senior citizens. Pre-Existing Disease Cover Most seniors already have certain health conditions like diabetes, high BP, or arthritis when they are looking for a plan. A good policy should start covering these after a short waiting period. Shorter Waiting Periods Some policies actually make you wait for about 3–4 years before covering pre-existing conditions. Always look for policies that start providing cover in 1–2 years. Cashless Hospitalization An insurer with a wide network of hospitals will make hospital stays easy. You will get cashless treatment and don’t have to worry about arranging money on the spot. Daycare Procedures With science being so progressed, modern treatments don’t require long hospital stays. Hence, daycare procedures should be a part of the best health insurance policy for seniors. Ambulance & Home Care Cover Getting extra benefits like coverage for ambulance charges and home treatment can be such a huge help during emergencies. Affordable Premiums with Value Honestly, plans with the lowest premiums are not always the best. Try to balance the cost with the benefits and coverage you get and the insurer’s claim settlement record. Factors to Consider Before Buying Health Insurance for Seniors Reading brochures is not enough while choosing the right health insurance plans. You also need to consider some points while making a purchase: Age Limit of the Plan Some policies only accept people up to 65 years of age. If you’re older, look for senior citizen health insurance that caters to even above 70 or 75 years. Co-Payment Clause In many policies, seniors are asked for co-payment (sharing a part of the bill). For example, if co-payment is 20% and the bill is ₹1,00,000, then the individual will pay ₹20,000. Hence, look for a lower co-payment. Renewal Age The policy should offer lifetime renewability, which means that the cover should continue smoothly even at a very old age. Coverage for Critical Illnesses Many old people fight with heart conditions, kidney failure and even cancer. The best health insurance policy for seniors is the one that covers critical illness. Claim Settlement Ratio The claim settlement record of the insurer tells a lot about its reliability. A higher ratio means there will always be better chances of your claim getting approved quickly. How to Compare Senior Citizen Health Insurance Plans When comparing senior citizen health insurance, we mostly focused on premiums and coverage but actually, we must look at a few more things. Here’s a checklist you must refer to: The premium vs the benefits you get Waiting periods for covering existing illness Hospital network size Percentage of co-payment Extra benefits (like ambulance, home care and alternative treatments) You can make a simple comparison table with a few policies so you can know which one gives the most value. Common Mistakes to Avoid While Buying Insurance for Seniors Going only for the cheapest plan– The biggest mistake! Remember that low premiums may also mean there are chances of high co-payment % or exclusions. Not checking exclusions– Common illnesses like cataracts or knee replacements for seniors are also excluded by some plans. Ignoring the waiting period– If the senior person is already having a condition, a waiting period of around 4 years might be too long. Skipping lifetime renewability– Some policies stop their benefits at a certain age and so, seniors are left uninsured later. Not reviewing the hospital network– the nearest hospital should also be covered, else you won’t get cashless treatment. Tips for Getting the Best Health Insurance Policy for Seniors Start early– Naturally, the earlier you buy a plan, the lower the premiums you have to pay. Waiting till 70+ is not a good idea. Choose family floater carefully– If your parents are very old, it’s better to take an individual insurance for senior citizens instead of a floater. Read the fine print– Before signing, go through all the documents
... Introdcution Your workspace is your safe space. You spend years building it and invest your money and heart in maintaining it. But what if one night there’s a spark in faulty wiring that sets off a fire? Or there’s a huge theft that wipes away your valuable stock? Such risks are always there and cause a big loss to businesses every year. This is where commercial property insurance will protect you from the unexpected. Now the question here is: Is your precious property really covered against fire and theft or are there any loopholes that might surprise you when you need this protection most? Why Fire & Theft Coverage Matters so Much? Profits, sales and growth keep the energy of running the business alive but you also have to protect what you already have, right? Two of the most common risks that most businesses face are fires and theft. You could be operating a small coffee shop or a big factory, the threats remain the same. Fire Risks: There could be some electrical faults, short circuits, accidents in the kitchen or even natural disasters. It all can cause fires that not only damage the building but also destroy the assets in the facility. Theft Risks: Robbers and burglars can break in and take away your stock and other stuff. This leads to loss of valuable machinery, office equipment or even inventory. Property insurance helps you recover from all such losses that can otherwise be almost impossible. Insurance will make sure that you don’t have to start all over again after a disaster. What Does Commercial Property Insurance Cover? If you have a good commercial property insurance plan, it will be a solid financial shield. Depending on the policy, it will cover damages caused by fire, theft, destruction and natural disasters. Usually, this is what it includes: Protection of Building: It covers the whole structure, including the walls, roof, floors and installations. Coverage of the Contents: All the office furniture, machinery, equipment, computers, inventory and other assets in the space are protected. Fire Damage: You will be reimbursed for losses that are caused by fire accidents, explosions or lightning. Theft or Burglary Losses: If the items are stolen or any damage is caused by forced entry during a burglary, it will be covered. Business Interruption (Optional): Some commercial property insurance plans offer an additional benefit of covering the loss of income in case your business has to temporarily shut down after a fire or theft. Common Shortfalls in Fire & Theft Protection Many businesses make the mistake of assuming that having commercial property insurance means they’re fully covered. However, you must know that all policies are not the same. Some may even carry their limitations that can cost you later like: Underinsured Property: If the coverage value is less than the actual worth of your property and assets in it, naturally, you’ll get less money than your claim. Exclusions in Theft Coverage: While some policies do cover burglary, there’s no coverage for employee theft. Normally, the cover is only for a clear theft or there was forced entry into the premises. Old Equipment or Furniture: Some insurance providers don’t provide any insurance for outdated machinery or would give only partial value for these old assets. Temporary Assets: If you transfer your stock or equipment to a different place and it gets damaged in a fire there, it might not be covered without any specific mention. It’s very important to understand these gaps to get assured protection from your commercial property insurance plan. How to Ensure Your Property Insurance is Fully Covered from Fire & Theft We have some simple steps that business owner should follow for assured safety: Review Your Policy Regularly The needs of a business change with time. There could be purchases of new equipment, space may be renovated or operations could expand. Your property insurance policy should also match your current situation. Understand the Exclusions The fine print has all the details, so read it carefully. There may always be some exclusions in commercial property insurance plans like if fire is caused due to negligence and it causes damage or if employees steal something. With the right information, you can add useful riders or additional coverage. Go for an Adequate Sum Insured Going for a lower coverage amount to save on premiums is not right. If your policy covers only ₹30 lakh but assets are worth ₹70 lakhs, then it’s pointless. You’ll face huge losses in both fire or theft situations. Ask About Business Interruption Cover Being covered for fire or theft damages is good but will you also get help for the days your business is not able to operate because of the damages? With business interruption cover, you continue having an income during downtime. Compare Multiple Commercial Property Insurance Plans There are many policies that you can choose from. It’s good to compare different commercial property insurance plans to find which one offers your business the best fire and theft coverage. Example of Fire & Theft Coverage Saving Businesses: A sudden electrical fire happened in a popular cafe that destroyed all the furniture and kitchen equipment. But since the owner has the right property insurance, he got reimbursement for repair work and replacement of things. Hence, the cafe could reopen in just a few weeks. Tips to Reduce Risks of Fire & Theft While you can get the necessary financial protection from insurance, prevention is always better. These simple steps can help: Install fire alarms and sprinklers to control the situation. Regularly maintain electrical wiring and equipment. CCTV cameras and security systems should be used to keep an eye. Conduct background checks of the employees before hiring. Secure all points of entry and exit to reduce the chances of theft. Besides providing the protection, these measures also reduce the premium for your commercial property insurance. Why Businesses Often Overlook Full Coverage Insurance is an investment. However, many small and medium businesses avoid
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Introduced As much as it’s exciting to have your own car, ownership is not easy. It comes with many responsibilities and amongst the most important ones is having the right car insurance. In India, having insurance for car is actually a legal requirement. Speaking of insurance, should you go for monthly premium payments or annual plans? Also, how do you find the cheapest insurance for car that gives you the required coverage? Let’s learn the difference between monthly and annual premium plans and also compare their costs, benefits, and drawbacks to know what might suit you better. What is Car Insurance? When you get an insurance for car, you get protection against financial losses in case there’s an accident, theft or damage. In such situations, you don’t have to pay huge amounts from your pocket because, as per policy terms, your insurance company will take care of it. Here’s what a good car insurance usually includes: Third-party liability– It covers damages or injuries that are caused by you to another person. Own damage cover– Damages that happen to your own vehicle due to accident, theft, fire or natural disasters are covered with this. Add-ons– You can also incorporate a few extra features like zero depreciation, roadside assistance or engine protection to make the policy even stronger. A comprehensive coverage is a very good idea because it gives all-around protection. However, many people look for the cheapest insurance for car because it offers both affordability and benefits. Monthly Premium Plans vs Annual Premium Plans When you are buying car insurance, the insurance providers often give you two options to make the payment: Monthly Premium Plan– Premium is paid in smaller amounts every month. Annual Premium Plan– You can also pay the entire premium at once every year. Now, both options have their own set of pros and cons that we must know about: Monthly Premium Car Insurance As discussed, you don’t have to pay a lump sum in one go but a small amount every month. Pros: Smaller payments are obviously easier on the pocket. It’s a lot flexible because it’s ok you don’t want to commit a large amount at once. Very practical for people on tight monthly budgets. Cons: It actually ends up being more expensive in the long run because you’ll be charged extra for opting for monthly installments. Policy may lapse in case of missed payments In India, not all companies offer the option of monthly insurance for car Annual Premium Car Insurance Opposite to the monthly option, in this, you pay a one-time payment for the premium for the whole year. Pros: If you look in the long term, it comes out as cheaper compared to monthly payments. You don’t have to worry about missed payments or the policy getting lapsed. You may also get discounts for annual payments, making it an affordable and cheapest insurance for car Cons: Since it’s a bigger one-time payment, it will certainly feel heavy on the pocket. It’s not really flexible for those who prefer smaller and periodic payments. Cost Comparison: Monthly vs Annual Premiums Let’s take an example to understand both types of car insurance plans. Person X was looking for the cheapest insurance for car and selected a monthly plan at ₹1,200 per month and by the end of the year, he paid ₹14,400. His friend, person Y, opted for an annual plan at ₹12,500 and ended up saving nearly ₹2,000. Y also had more peace of mind since he didn’t have to remember that there’s a monthly payment coming up. This is a simple example that shows that yes, monthly plans do feel lighter on the pocket initially but annual plans are actually more cost-effective in the long run. One-time yearly premiums are overall cheaper but if you prefer smaller and manageable installments, opt for monthly. Which Option is the Cheapest Insurance for Car? If you are on your hunt to find the cheapest insurance for car, you must go with an annual premium plan. This will give you financial benefit because: Insurers tend to provide discounts for one-shot payments. There are no extra charges added. You also stay away from the risk of missing your monthly payment. However, if you need to manage the existing cash flow and stay budgeted for the month, monthly plans will be more convenient for you. While overall they cost slightly more, you will be comfortable. Factors That Affect Car Insurance Premiums There are certain factors that influence the decision to make monthly or annual payments: Car Model & Age– Insurance amount for luxury and new cars is more than for older and smaller cars. Location– Metro cities have higher accident and theft risks and hence, higher premiums. Coverage Type– If you need comprehensive insurance, it would surely cost more than just third-party coverage. Add-ons– If you add extra benefits, it will add to the total cost. No Claim Bonus (NCB)– Not claiming insurance in a year gets you a discount on renewal. If you want the cheapest insurance for car, it’s suggested to choose only the essential coverage and skip any unnecessary add-ons otherwise, you will have to pay more. Benefits of Comparing Car Insurance Plans With so many insurers in the market, you can only find the most affordable insurance for car by comparing different policies. You can refer to online comparison tools for a quick and easy reference. Better Coverage for Lower Price– Each insurance company offers different or unique benefits at almost similar costs. Discounts & Offers– Some insurers also run festive discounts, offers on online purchases or even loyalty rewards. Customized Plans– You can tailor your car insurance by adding only the features you really need. Tips to Save Money on Car Insurance Some small steps can really help you land the cheapest insurance for car with the right protection: Opt for Higher Deductibles– If you agree to pay a small amount during claims, your premium can be lowered. Maintain a
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