What To Do With Your Money?

People are usually confused whether to save their money or invest it. And often their financial plan is skewed towards either of them. Saving and investing, both have their advantages and disadvantages. And an appropriate combination of both of them is needed to make a perfect financial plan.

Hence, firstly, it is necessary to understand what it is the difference between saving and investing.

Saving is putting money aside especially into cash products such as putting money in a bank account and investing means to put your money in financial products that allows to grow your money. Here are few things to remember when and how much to save or invest.

For short term goals you can save and for long term goals you can invest. Short term goals are those goals that you are planning to do in next five years. And long term goals are once where you won’t need the money for 10 years and more.

Investment provides higher returns but are bit illiquid and come with little risk. But just saving your money may not be enough to fulfill all your future requirements. As putting money in bank account may not come with risk but it gives low returns. Hence, for long term goals you need to invest so that you can reach your financial goals faster. To enhance the earning capacity of money, you need to invest.

For short term goals don’t invest in risky assets such as stock markets as it may go up or down in short term. For short term goals you can save in bank account. The funds that are required immediately and for emergencies should be held in bank accounts.

As an emergency fund, the thumb rule says that you have at least three months of your regular expenses in your savings bank account so that you can have easy access to it.

For long term goals, it is often best to invest because inflation can affect the value of cash savings over the medium and long term. The stock market usually tends to do better than cash over time. You can start investing as early as possible. You can set your financial goal that is few years away such as your child’s higher education or marriage and assess how much amount you will require to achieve that goal, factoring in inflation, and invest accordingly.

Remember to keep a track of your investments in regular intervals and if required make suitable changes.

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Why Having Multiple Life Covers Is A Wise Decision?

You are planning to buy a life insurance plan and also decided the amount of sum insured that you require, but confused whether you should go for one term insurance plan with a big life cover or break down it in multiple policies. Here are few pointers to why you should have multiple life covers.

It is advisable that you buy multiple policies. There are several reasons for buying multiple life insurance policies.

Hedge against claim rejection: Firstly, it is a hedge against claim rejection. If you have disclosed all information about your health and undergone the required check-ups, most probably, the insurer will not reject your claim, but if anyhow what will happen if your claim gets rejected and your dependents does not get claim amount. In such situation multiple policies are very beneficial as if the claim is rejected by one insurer and accepted by another, your dependents will get at least some amount.

Also, in such a situation, the family can write to the company which has rejected the claim, which will force it to relook at the claim.

Diversification: Having multiple insurance policies help you to diversify across insurance companies. It is advisable to buy life insurance policy from an insurer having good claim settlement ratio as there will be lesser chances of claim rejection.

Different maturities: You can buy life insurance policies with different maturities. Your sum insured is decided taking into account your future liabilities. You should buy multiple insurance policies in such a manner that their maturity matches with your financial goal. As your one financial goal is achieved one life insurance policy should come to an end. In this way you will not need to pay unnecessary premiums.

Flexibility: It is prudent that you align your life insurance policies with life stages and have two-three policies of varying terms and covers as this will give you flexibility to continue or discontinue policies on the basis of your requirements.

However, do remember it is mandatory to declare your existing insurance plans while buying a new one. Buy your insurance plan with PolicyMantra where you can compare different insurance quotes and buy suitable for you.

Criterion To Buy Insurance Plan

While selecting any insurance plan, main criterion for most people is its price. There is nothing wrong in choosing cheapest plan, but cheapest plan may not always be the right plan.

There are wide array of plans available in the market and while zeroing-in on a plan people often select the cheapest. But price should not be the only criterion to buy an insurance plan.

Insurance is meant to provide financial assistance at the time of need Hence, you should buy an insurance plan that fulfills your requirements.

Each plan have something unique to offer hence, you need to understand what you require and what the plan is offering. And then, you can compare prices of similar products. Insurers have come up with several attractive features catering to different types of customers. But you need to understand which features are beneficial to you. Hence, you need to understand your requirements and accordingly go for an insurance plan best suitable for you.

Insurance affects your entire financial plan that is why it is essential to be very careful while purchasing an insurance plan.

To make an informed decision you can keep few points in your mind. First review your insurance needs, understand your requirements and evaluate your financial plan. And plan fulfilling all this criterion can be bought by you. And finally, rather going for an insurance plan offering lowest premium go for an insurance plan suitable to you.You must visit policymantra.com to get best insurance policy for yourself and for your family.

Buy A Health Insurance Policy Online

Health is the most important asset of one’s life and rising healthcare cost makes it essential to have adequate and best health insurance policy. Buying a health insurance policy has no longer remained a strenuous task. You can easily sitting in the comfort of your home can buy a right health insurance policy online in few minutes.

Comparison sites like policymantra.com can help you to buy best health insurance policy. You just have to visit policymantra.com and fill in details and you will be provided with various options and instant quotes. You can compare products of different insurers based on both premiums and features. You can go through all plans and choose the best that suits you.

After deciding the policy you can click to buy it. You can make the payment. Your premium will be calculated based on various parameters such as age, amount, medical history etc.

To buy a health insurance plan online, you need to fill in proposal form. Do not conceal any detail asked or else you will have issues at the time of claim settlement. You will get premium estimate that needs to be paid. If you decide to buy the product, you can make the payment using internet banking, credit card or debit card.

After successfully completion of all the steps, insurance company will verify your details and finally they will send you documents to your address. And you can either send required documents to the insurer’s branch office or upload it online.

Buying an online health insurance policy through policymantra is very simple and transparent. You can readily get authentic information about various online health insurance plans available in the market. In few clicks of a mouse you get all the details like policy procedure, policy quotes and premiums. It is very simple and hassle free process to buy online health insurance policy from policymantra and if you have any queries or need any assistance www.policymantra.com is there for you.

Scope Of Health Insurance For Organ Recipient, Donor

People are becoming more and more aware about life saving organ transplants these days, but cost of such surgeries is very high. Hence, it is essential to know what kind of coverage a health insurance plan offers. Having a health insurance plan will ensure that you don’t have to worry about your finances before giving your assent to a possibly life saving organ transplant surgery.

At present, most general insurers cover organ transplant surgeries as part of their regular policies. They also cover organ donor’s expenses, some reimburses the entire cost, while others place caps on these expenses or offer it as add-on cover.

Any organ transplant entails two people having to undergo surgeries –insured recipient and the organ donor. All hospitalization expenses medical, surgical as well as pre- and post-hospitalization -incurred by the recipient are covered under the policies. Expenses incurred on organ donor for harvesting- that is surgery and storage of organ – are covered. The treatment expenses of the former will be fully paid for up to the sum insured of his policy, but cover of donor expenses depends on the insurer.

Organ donor cover includes hospitalization expenses for the donor up to the specified limit. Provided that the organ is donated to the insured and the claim is admissible as per the terms and conditions of the health policy, there is no specific exclusion.

However, typical exclusions include cost of screening the donor, post- surgical complications and donor’s pre- and post-hospitalization costs.
Check out the products which gives organ donor facility with policymantra where you will get proper listing of features provided by that particular policy and buy the best one.

Understanding Health Covers

Realizing the necessity of health insurance in today’s world, you have decided to buy a health insurance plan. But in the cluster of products available in the market, you are unable to understand which is the right product for you. Whether you should go for a cashless or reimbursement plan; should you buy an indemnity or benefit plan; or you should go for a disease specific or worldwide cover or not. In such situation it becomes imperative that you understand some basics about different types of health insurance so that it becomes easy for you to select best product that suits your needs. Different plans differ from each other in the kind of coverage they offer. They include benefits and features as per the specific health risk.

Understanding types of health covers

Cashless or reimbursement: There are two types of health insurance policies–cashless and reimbursement. In a cashless policy you don’t need to pay bills upfront to the hospitals, insurance companies directly settle bills with hospitals. In a reimbursement policy, you need to pay bills from your pocket and later you can claim the amount from the insurance company. However, it is advisable that you buy a cashless policy as you don’t have to take the hassle of retaining and collecting documents and submitting them.

Indemnity or benefit: Indemnity policies cover hospitilisation. These policies reimburse room rent, doctor fee and other hospitilisation expenses. On the other hand, benefit policies pay lump sum amount if you are diagnosed with the disease you are covered for.  It is advisable that your first policy should be a basic indemnity plan. After this you can look at specific plans such as critical illness covers.

Top up plans: Medical inflation is on the rise hence, you need to have large covers, but if you are unable to pay high premiums then you can go for top-up plans. These plans help to reduce cost with in-built deductibles.  These plans helps in enhancing sum assured at affordable price. The deductible is the amount that must be paid for treatment before the insurer pays. You can use your individual/ group policy to pay the deductible. A combination of basic and top-up policy is cheaper than a standalone indemnity cover.

Worldwide covers: There is increasing trend of going abroad for treatment but cost of it can be huge. Hence, now many health insurers have started covering treatment taken abroad. However, it is offered on large covers.

Disease specific covers: If you are suffering from any serious diseases such as diabetes than it become difficult to get health insurance. For such situation, insurers have come up with disease-specific covers. However, premium in such plans is high and hence, it is advisable that you should go for a basic cover instead of these plans.

Health insurance policies not only indemnify against medical exigencies but also help in maintaining your fitness through wellness programmes. Looking at high cost of healthcare, it may get unaffordable at any point. But if you have health insurance you will be able to afford expensive treatment.Buy health insurance with PolicyMantra and get best, suitable and affordable deal for yourself and for your family.

Is It Prudent To Buy Overseas Health Insurance Cover?

The new Insurance Act has changed the definition of health insurance from covering risks only in India to providing service worldwide. In other words, now health insurers can come up with plans providing medical coverage outside India as well.

Till now, you would have to buy a travel insurance plan that covered only medical emergencies and evacuation costs. The new plans will provide overseas benefits like pre-diagnosed planned hospitalization, second opinions, outpatient treatments, apart from sudden sickness during travel.

Insurers say that there are many consumers, who for various reasons, prefer to avail certain specialized treatment overseas. Price is not a deterrent in this case and they have no problem in opting for a higher sum assured to avail treatment abroad.

Few standalone health insurers including Max Bupa, Religare health and Cigna TTK Health already provide some kind of international coverage for certain specialized treatments under higher sum insured plans.

However, going ahead, insurers are expected to offer comprehensive coverage. The major difference between a regular health plan and the new plans with international coverage is that these plans will typically have higher sum insured. The premiums will also be higher considering the currency exchange rates.

The new plans will be add-ons or will be incorporated within comprehensive policies with higher sum insured.

Eligibility criteria will require you to be medically fit. These covers may not be easily available to  those with pre-existing diseases and critical illnesses.

Also, it will be a regular annual indemnity coverage that covers in-patient coverage. Out-patient expenses will not be covered.

The coverage will be classified under two categories –elective planned hospitalization and emergency treatment. In case of emergency, immediate care will be covered but beyond a certain period the policyholder would have to continue treatment in India to be eligible for claims. In case it is a planned hospitalization, where the patient needs special treatment abroad, mostly you will have to take the reimbursement route as it is very difficult for insurers to have such a huge global cashless network.

But, here question arises whether it is prudent to buy such a plan. Currently, only a handful of insurers provide this option. Till the industry comes up with better and more cost effective coverage, it doesn’t make sense to pay a higher premium for international plans with limited benefits.

Assuming that you want to go for a specialized treatment only for serious ailment, a more economical way will be to purchase a combo of a critical illness plan with your hospitalization plan. If you buy a high sum insured critical illness plan, you will get the full amount as lump sum. And frequent travelers can add a multi-trip travel insurance plan to this.

Visit www.policymantra.com and compare insurance policies not only depend upon it's cost but also on policy features, and buy reasonable one for yourself.

Tips For First Time Life Insurance Buyers

Life insurance is a long term contract and meant to provide your loved-ones financial protection when you are not there hence you need to pay little attention while buying a life insurance policy.

And if you are going to buy a life insurance policy for the first time in your life then here are some tips to help you to choose right product. Usually, we buy a life insurance policy on someone’s recommendation; it is not the right way.

Evaluating need: First and foremost reason for buying a life insurance policy should be its requirement. You need to analyze do you really need it. If you have dependents and you are sole breadwinner of the family then it must undoubtedly be your top priority to have a life insurance policy.

Type of policy: After this, you need to think which type of policy will help to achieve your financial goal, whether you need only term cover, or a traditional policy or a unit-linked insurance plan (ULIP). If you need protection at minimal cost then you can go for a term plan. If you are a conservative investor then and need savings element with protection then you can opt for a traditional policy. And if you have a risk appetite, then go for a ULIP.

Coverage amount: After that you need to ascertain how much coverage you need. Having less coverage defeats the whole purpose of insurance. Usually, to ascertain right amount of coverage, you can take in account your all outstanding loans, education and marriage expenses of your children and ten times of your annual income to arrive at a coverage amount.

Right company: As life insurance is a long term contract, choosing the right company becomes imperative. As your family members have to deal with the company to claim the amount hence choose a company that has a good track record in claim settlement.

Comparative study: Don’t buy a policy just because someone have recommended to you. Give little time to compare plans available in the market. And then choose the best and most affordable product that suits your needs.

Safeguard Your Financial Health

There is a saying that Health is wealth. This is true as only a healthy person is able to achieve anything in his life. Therefore, people are becoming more and more health conscious. And health insurance policy helps you in not only maintaining good health but financial health too.

Health insurance provides risk coverage against expenditure caused by any unforeseen medical emergencies. In current times of high medical inflation, if you don’t have adequate health insurance, it can prove to be a major personal financial disaster.

We often forget to include health insurance in our financial planning. Hospital bills for very small or considerably large ailments are a pain. It can completely upset your financial planning and put a big dent in your pocket. It is difficult to meet such costs on your own without burning a hole in your savings. And sometimes even worse, it burdened people with huge debt.

In such a situation, people liquidate their savings or assets to meet any medical contingencies. This might affect your budgeting and financial plans that you hold for achieving your goals.

Even if you have enough savings to cover that expense, it will take you another few years to build back the savings and that even if there are no foreseen expenses in between. And on the other hand, if you have health insurance then you don’t have to pay from your savings. And that savings will grow further to achieve your future goals.

And also due to high medical costs, some even have to compromise on quality healthcare. Hence, health insurance provides you the ability to afford better healthcare facilities for yourself and your family.

Due to advancement in technology and medical science, many new procedures have been adopted in critical surgeries and treatment of severe illnesses, which come at extra cost. Also, a change in lifestyle is encouraging people to take treatment in super-luxury hospitals. If you can afford the premium, for such expenses you can opt for higher sum assured.

Along with a support of medical care that a policy provides, it can make a huge difference in the financial status of a family. A health insurance policy helps to save in two ways firstly you save on the cost of medical treatment and secondly in you can avail tax benefits on premium paid towards health insurance.

Emergencies are always unpredictable and hard to control. And medical emergencies can knock at anyone’s door. In such a situation, cashless hospitalization facility can be a big help. This clause allows you to get hospitalized without the hassle of cash.

Health insurance not only helps you in your difficult times but it also helps to save tax.

Health insurance premium for self, spouse, dependent children and parents of up to Rs 15,000 (Rs 20,000 for senior citizens) is eligible for deduction from gross taxable income under section 80D of the Income Tax Act, 1961. If you pay for health insurance of parents who are senior citizens, then you can claim an additional maximum deduction of Rs 20,000. However, if parents are not senior citizens, then a maximum of Rs 15,000 can be claimed as additional deduction. Hence, total amount of deduction that you can claim for health insurance is Rs 30,000, if parents are not senior citizens and Rs 35,000, if parents are senior citizens.

Health insurance helps to protect your family’s health and wealth in long term. It also helps you to provide your family with high quality medical treatment, without having to worry about the financial implications. If you have a good health insurance that meets a wide variety of medical needs, you will be free from health related financial concerns and focus on other important financial goals.

The only way to protect yourself from financial disaster after a medical emergency is adequate health insurance with PolicyMantra. With a health insurance policy you don’t have to worry about medical bills or be bothered about your and your family’s health.

Avoiding Some Common Investment Errors

Money needs to be invested somewhere and not just saved. And however smart one may be, but there are few common mistakes that most of us do while investing. And avoiding them can be a great help to achieve our financial goals.

Set goals: Most common mistake that we do is that we just invest without any purpose. First sit down and think what the long term financial goals of your life are and how much money you will require for each of your goal.

Inflation: Some of us may have lay down goals of our lives but often forget to think impact that inflation is going to have on our long term investments. Hence, while deciding what amount you will require for achieving your financial goals do factor in inflation.

Diversification: People often like one asset class and put all their savings in that particular asset class. However, different asset classes perform at different point of time hence, your investments should be spread out in different asset classes.

Review: We often invest for long term and forget it. But this is not the way; one should keep track of one’s investments and keep reviewing it on regular intervals.

Unique plan: We usually follow others. But what may be right for others may not work for you. The financial situation of every individual is dynamic in nature. Every individual have different needs, goals, income levels, risk appetite hence, every one should have tailor-made investment plan and invest accordingly.

Start early: When one is young, usually holdup their investment plans thinking they have sufficient time to start investing. But there is other way, the sooner you start, the less you have to save every month to reach your financial goals.

Understanding your investments: We often invest in products just because someone has recommended to us, without thinking whether it will be helpful in achieving our financial goals. Hence, before investing in anything, make sure that you understand it thoroughly.

Learn from your mistakes: Each one of us make some mistakes in your financial decisions. But it is important that we learn to accept our past financial mistakes and ensure that we correct them and don’t repeat them.

Patience: We generally lack patience when it comes about our investments. But some investments are best only when held for long term.

Combination of financial products: Every financial product is meant for different purpose and your portfolio must have perfect combination of them. Hence, before investing, understand which product will help in achieving your which financial goal.

You should give enough time to create your investment plan and stick to it. Making your investment plan with fewer errors will make sure that you reap maximum benefits from your investments.Invest through www.policymantra.com and get satisfying service for life time. 

Health Insurance Tips For Students Going Abroad

If you are preparing to go abroad for studies, here are some pointers to remember about health insurance that you will require.

Must have: While going abroad for studies, whether your university makes it mandatory or not to have a health cover, you must carry a health insurance policy with you, as healthcare is expensive in developed countries.

Preference: There are university that will give you option to buy health insurance provided by them or allow you to buy it from your local insurer in your country. In such situation, it is advisable that you buy it from an Indian insurer as university may not offer best deal.

Compare cost: Usually, health covers offered by universities are much more expensive than offered by domestic insurers. So, compare premiums thoroughly.

Compare benefits: Don’t pick a health insurance plan solely on the basis of cost. You should also compare the benefits offered by them. University plans usually have higher deductibles and sub-limits.

Also, university plans covers only health whereas domestic policies offer both medical and non-medical Benefits. Indian insurer’s offers benefits such as travel plan, compassionate visits, third party liabilities, study interruption protection and sponsor protection.

Don’t discontinue your existing health cover: If you are already covered by a health insurance plan in India, don’t discontinue it. A student plan will continue till you are studying, but a regular health plan will offer lifelong renewability. And when you will return, you will be older and have to pay more for buying a new policy.

Besides, you will lose the benefits accrued on it and you will have to serve the four year waiting period clause on pre-existing diseases coverage all over again.

Compare and buy health insurance plan with www.policymantra.com ,who provide you the best comparison between products not only depend upon policy cost but also depend features which policy pros and cons.