A guide to buying health insurance in India

There is no doubt in the phrase saying ‘health is wealth.’ And it is highly significant to insure your health to fight all the unforeseen medical emergencies. Investing in health insurance plans guarantees to beat costly medical treatments. There are three ground rules while selecting a health insurance policy- Don’t buy in a hurry; don’t purchase based on a friend’s or agent’s recommendation; and lastly, don’t buy based on cost.

Here is a checklist to go through before selecting medical insurance in India.

1) Adequate coverage:
The first thing to check is that the policy offers sufficient coverage for you and your family. Do not compromise cover to save money on premium. For the same sum assured, premiums may vary across different insurance companies. Instead of merely going for the cheapest plan, compare features. By paying a little extra amount, you may be able to get higher benefits.

2) Pre-existing diseases:
According to the Insurance Regulatory and Development Authority (IRDA), a pre-existing illness is an ailment for which one had signs or symptoms, was diagnosed, or received medical advice or treatment within 48 months before the purchase of the health insurance plan. The waiting period for protecting pre-existing diseases differs from one insurer to another and ranges from two to four years. Make sure you are well versed about the waiting period guidelines of your health insurance company before purchasing the plan.

3) Cashless facility:
It is a wiser option to hold health insurance in India that offers the cashless facility. It is a critical feature that saves the applicant to pay the hospitals from his own pocket. Here, the health insurance company will directly fund the hospital. It also involves limited paperwork and hassle than the reimbursement facility.

4) Health cover for senior citizens:
Some insurance companies provide the best health insurance plans specifically designed and catering to the senior citizens. These policies usually cover both hospitalisation and domiciliary hospitalisation (critical ailments where the patient is bedridden but not hospitalised). If the applicant has bought the policy before 55years of age, companies offer insurance policies renewable up to the age of 75 years.

5) Medical examination:
For a person aged above 45 years need to go through a medical check-up before insurance companies offer health insurance plan. If your medical report is unfavourable, the insurance company may turn you down. The age limit at which a medical examination becomes compulsory varies from company to company.

Things you must know before buying a forex card

Are you a travel bug and are always on the go? Planning for abroad usually involves finding the best airline tickets, cheap hotel bookings and places to visit and see. However, you must also give utmost importance to thinking about how to carry money for your trip abroad.

When you are travelling abroad, foreign exchange rates are the first thing to notice. Plastic money like international debit or credit cards are quite popular among travellers, but they have few drawbacks as well. Hence, you must buy a forex card which is the most and inexpensive way to carry money abroad.

Know the forex card benefits:

• Allows you to carry multiple foreign currencies
• Universally accepted mode of payment
• Cheaper than using credits cards abroad
• Better exchange rates than currency

A forex card is a prepaid travel card that allows users to load single foreign currency or multiple currencies. Much like other financial products, forex card also comes with a set of terms and conditions. Here are a few points to remember while travelling with the forex card.

1)  Understand the fees and charges:
Before buying your forex card consider inquiring about the fees and charges associated with the card. These charges may include:
• Card issuance fee
• Balance Enquiry Charges
• Replacement Card Fee
• Statement Request Charges
• Cross Currency Mark-up Charges
• International SMS Alert Charges
• Charge Slip Retrieval Charges
• Inactivity Fees

2) Swipe in the same currency as loaded:
When you are swiping your multi-currency travel card at a store, make sure that the payment is made in the same money format as you have loaded. For example, if you have loaded your card with Euro currency but the payment is made in Indian Rupee, then you will incur significant cross-currency charges.

3) Safety:
International fraud in cards is a known issue. Cloning of cards is the biggest threat for forex cards while travelling. Hence, it is essential to keep your card safe from such activities. Make sure you do not hand over your card to anyone else for swiping. Before you buy the forex cards, compare and choose a card with the safest facilities.

4) Check your insurance on forex card:
Like credit cards, most forex cards also offer some insurance cover. There can be insurance protection for you against personal accident, loss of checked baggage at the airport and against credit card fraud. You must confirm these insurance plans your bank about what type of insurance cover is being offered on your card.

Factors that determine your chances of getting a business loan

Business loans serve as a backbone for an organisation. With them, you can efficiently manage your cash flow, upgrade business equipment and grow the business. It is specifically intended for business opportunities and should be repaid with added interest.

When you purchase a business loan in India from banks, it may be either secured or unsecured. In secured loans, banks will ask for collateral, which will be lost if repayments are not made. The bank will possibly wish to see the business’s balance sheet, accounts and business plan, as well as studying the principals' credit histories.

Following factors play a significant role in determining how easy or difficult your loan raising process would be.

1) Stage of your business:
This factor is similar to an individual getting a loan. If your business is at an early stage and has been in existence for a short period, banks may hesitate to lend. You might need to apply for new business loans. However, a business that has been around for some time with a proven track record of operation is likely to find the loan raising process much simpler.

2) Competition:
The nature of competition that your business faces impact the decision for lending institutions. Bank may look at your competition to figure out where you stand among your peers. If you are at par or do better in the market, getting money becomes easier and vice-versa. If the competition is intense, applying for business loans will be tad difficult, because banks may not be to gauge your repayment capacity.

3) The amount you need:
If the amount you need is relatively modest, it may be easier to get a loan. However, for higher loan amounts banks may ask for additional details and set provisions that may make the loan processing tougher. Small amounts that are in sync with your earnings or cash flow may be easier to raise, but anything that goes beyond your financial position may make a bank think twice.

4) Relationship with the lending institution:
It is always easier to raise a business loan in India if you have good relations with the bank. Choose a bank or bank that have greater visibility of your business, a good understanding of the state of your finance and may have already extended a loan previously. It gives better comfort to your bank in arriving at a lending decision and may make your loan processing easier.

Why should you get a travel insurance plan?

Are you trying to escape the monotony of your office life and planning a trip? The checklist of your journey is carefully drafted, and you just can’t wait to take an off. However, life can be a bit uncertain. What would happen if you misplace your baggage or passport; worse still, you face a medical emergency abroad. Are you ready for an eventuality like this?

Travel insurance can protect you during such occurrences. It will provide you with monetary compensation and ensure you against a financial loss. Travel insurance is a legal contract created by the lawyers. Read the fine print and description of the coverage (policy wording) thoroughly before selecting the plan. Here are some reasons for investing in a travel insurance plan.

1) Support in  a medical emergency:
Adventures like parasailing or hiking can be a once in a lifetime experience, but what if something goes wrong in these faraway places? Medical help will be difficult and expensive too. That's when a comprehensive travel insurance policy can come in handy: It can help you avoid out-of-pocket expenses. It will cover the patient treatment, diagnostic tests, ambulance charges, evacuation charges and travel cost to the hospital. Most importantly, the policy could give you the facility of cashless hospitalisation.

2) Trip delays or missed connecting flights:
Cancelled or rescheduled flights can wreak havoc even on the best-made travel plans. Weather, strikes and technical issues could lead you to miss your connecting flight. Hence it is a reason to invest in the best travel insurance to cover these expenses, so you won’t be over budget before you even set off.

3) Replacement for lost or stolen luggage:
Losing your luggage amidst travelling can be frustrating. Even if you are travelling light, the cost to replace everything can be high. You may need to pay to renew your passport and any other travel documents for example or buy a new set of clothes. Travel insurance in India and abroad can reimburse you for these expenses.

4) Peace of mind:
Travel is unpredictable. If you’re involved in an incident where you are found legally responsible for someone else’s injury or damage to their property, travel insurance can help you cover up to the amount specified under your plan.

5) Pre-existing illness:
Insurance is crucial for a stress-free trip, especially when you are suffering from a pre-existing illness. The insurance company will honour your claim arising due to pre-existing illness, in case of any life-threatening events or acute pain.

Whether you’re in an unfamiliar country or at home, getting proper travel insurance for your needs will keep you at ease and allow you to recover your losses against any unforeseen eventualities. Check out travel insurance online on various banking sites to get better deals.

How to choose a life insurance policy?

Introduction:

A life insurance policy is a contract between an insurer and policyholder in which the company promises to pay a designated amount in exchange for a premium, upon the death of an insured person. Buying a life insurance policy may seem bewildering for most of us. It's hard to know where you must start with the selection of plans. If you have decided to get insured, then your next step is to go through types of life insurance and make sure you buy the right one.

1) Purpose:
Often the purpose of buying life insurance depends on personal reasons. If your salary is supporting your family, paying the mortgage or other recurring bills, or sponsoring your kid’s education, you should consider life insurance as a way to ensure that these financial obligations are protected in the event of your death.

2) Types of insurance policies:
Insurance companies offer various life insurance policy plans depending on the needs of the individuals. These policies include whole life, term life, variable life, and universal life. The primary objective of having an insurance policy is protection against unforeseen activities. Ideally, experts believe one must consider term plan, as it gives you a higher sum assured for a lower premium.

3) Life insurance costs:
The factors that decide the cost of life insurance plans vary as per the chosen policy. It may depend on how much you buy, the underwriter's practices, and how much commission the company pays your agent. Life insurance policies often have hidden costs, such as fees and large commissions, that you may not find out about until after you purchase the plan.

4) How much coverage you need:
The amount of life insurance you require depends on factors such as your sources of income, the number of dependents you have, your debts, and lifestyle. However, a generally it is advisable to acquire a policy that would be worth between 5 and 10 times your annual salary during the occurrence of your death. Beyond this, you may want to consider consulting a financial planning professional to determine how much coverage to obtain.

Conclusion:
When picking life insurance, use the internet's resources to educate yourself about basics of life insurance, find a broker or officer you trust, then have the recommended policies assessed by a fee-only insurance adviser. Experts believe people often mix insurance and investment plans. Know that these are two different entities and life insurance policy plan is a must.

Important things to look for in a savings account

A savings account is an excellent place to store your emergency fund. You can tap for this fund during rainy days like car repairs, medical crisis, etc. and informed about all options. A savings account is one of the most basic and reliable financial products of all times.  With the introduction of the Jan Dhan scheme by the government, there has been a substantial rise in the number of savings bank account.

Here we discuss some of the essential things to watch out for while planning a savings account that suits your requirements.

1) Interest rates:
Some savings account work at a fixed rate that pays a fixed set of return during the term. Accounts usually have a one-year term, but you can also lock up your savings for as long as five years. The highest rates tend to go to users who are prepared to tie up their cash for the longest period.

Individuals who want flexibility with your savings can prefer to have a variable rate account. With variable returns though, rates can change at any time, so you should always watch the amount of interest you are earning.

2) Transaction charges:
Before opening a savings account, make sure you research and compare the services charges levied by various banks. Comparisons should be made on bank services such as outstation cheque collection, cheque return charges, annual fees for debit cards and costs for issuing duplicate passbooks, statements and chequebooks. Select the type of savings account best suited to your needs.

3) Minimum balance criteria:
Some banks require you to deposit a minimum amount to open a savings account.  Often, individuals need to maintain a minimum balance requirement while handling the savings account. However, with changes in government schemes, banks do offer Basic Savings Bank Account. These accounts need no minimum balance requirements, provide essential banking services and have restrictions on the number and amount of withdrawals, transfers, deposits, and ATM transactions.

4) Debit card offers:
Most banks provide free insurance cover on debit cards. Some debit cards offer discounts, zero surcharges at petrol pumps, EMI facility, airport lounge access, reward points and cashback offers. Therefore, when choosing a type of savings account, compare the deals available with the debit card offered.

With the power of the internet, you can easily apply online savings account with a bank to park your money. You can earn interest on the amount you deposit in your savings account and enjoy the flexibility. Prominent banks like ICICI, HDFC Bank, Axis Bank, Yes Bank, Kotak Mahindra Bank have developed 24*7 secure netbanking facility. You can efficiently conduct all bank operations without any hassles.

Why is gold loan finance is better than personal loans?

For most of us, when facing a financial dilemma, the first thing that comes to mind is opting for a loan. There are several types of loans available in India. The newest block in the list is the Gold Loans. Now we know gold holds a special emotional connect for most households and taking loans against gold is not considered a preferable option. However, the value of gold is continuously rising, and it makes sense to utilise its power.

In this loan, one has to deposit the household gold in the form of jewellery with the bank or financing agency and get a loan of up to 80 per cent of the value of the gold deposit. The interest rate for gold loans in India is much lower than that of personal loans. To draw a better comparison, we have got a list of the benefits of gold finance.

1) Faster processing:
Banks consider lending against gold as a safer investment. The overall loan processing time for a gold loan is quite less, and you get the approval within a few hours. Banks have the option of selling the gold in case you default in repayment. Therefore, banks usually disburse the loan in few hours.

2) Lower interest rates:
As these loans are secured form of investment, banks charge lower gold loan interest rates as compared to unsecured credit such as a personal loan. The interest rates for a gold loan are generally in the range of 13 to 14% while personal loan interest rates usually start at 15%. Also, if you attach another security as collateral, the gold loan interest rate can be reduced further.

3) Limited repayment woes:
The worst-case scenario in repayment of the gold loan is losing the precious gold. If you are not able to recover your gold loan finance, the bank will take possession of the pledged gold or jewellery to recover its dues. There is no unwanted recovery problem as in the case of unsecured loans like personal loans or loan against property which is claimed through the sale of the property.

4) Bad credit history is not an issue:
Even though you have a bad credit history in the books of account, banks are least concerned when it comes to gold loans. Therefore, if you are in urgent need of funds, try availing gold loans irrespective of bad credit score.

5) Hello Digitisation:
With the advent of digitisation, you can easily apply online for a gold loan instead of visiting the bank. Visit the bank’s official website and calculate the loan amount to borrow on the online gold loan calculators. You can fill the application form available on the site. After submitting the form, bank officials will get in touch with you through call or SMS concerning the application.