Thursday 19 September 2013

5 reasons why the IndiaFirst Mediclaim Plan is important



Hospitalization not only affects us physically but it also has a deep impact on our finances. Here are 5 reasons why having the IndiaFirst Mediclaim Plan will help you safeguard your finances …

Being unwell and having to be admitted to the hospital is not only emotionally and physically hazardous, but financially too. While doctors are there to take care of the physical condition, one needs to cope with the emotional upheaval.

But then, who takes care of the financial burden?

Here’s where IndiaFirst’s Mediclaim Plan comes to the rescue.

There are 8 key reasons why you should consider IndiaFirst’ Mediclaim Plan:
1.     Comprehensive Health Insurance for you and your Family
You can now insure the health of your entire family (spouse, two children and two parents) under the same plan.

2.     Instant 2 swipe Health Claim Card
The IndiaFirst Health Claim Card is very convenient to be used in case of financial emergencies.  You no longer need to worry about carrying cash during hospitalization. Just swipe your Health Claim Card like you do your credit card or debit card –
§  First swipe during admission: Leading to immediate transfer of personal details – no documentation required
§  Second swipe at  discharge: And our call center will immediate approve the claim after checking your eligibility

3.     Access to the Best Doctors
Access over 50,000 best minds in the field of medicine across the country through the network of the ‘Best Doctor’ services during the first plan year. 

4.     Cover over 200 Day Care Procedures
No more unnecessary hospitalization – you can avail complete medical care without staying overnight for 200 day care procedures!

5.     Reimbursement of all Expenses
Break free from limited reimbursements - your actual expenses get reimbursed. You are completely covered in terms of medical expenses and that too both - pre and post hospitalization.

6.     Guaranteed Premium Rate
Enjoy the benefits of a premium rate which is guaranteed for next three years – irrespective of changes in your health

7.     Twin benefits
Enjoy two in one benefit of life cover + health cover by opting for the IndiaFirst Term Rider under the Plan

8.     Tax Benefits
Get tax benefits on the health premium you pay under Section 80D of Income Tax Act, 1961. You will also get tax benefits on the rider premium if any you pay for life cover under Section 80C of Income Tax Act, 1961.

End note
With IndiaFirst’s Mediclaim Plan in hand, you will always be well-equipped to deal with a medical emergency.  You can rest assured that you can access good treatment without worrying about the costs involved – spending time with you family instead.

Monday 3 June 2013

HLV – Key to an optimum insurance cover



Life is unpredictable. Though you may commit yourself to planning each and every rupee of your financial life, you never know what is round the corner. An unfortunate and unexpected event may lead to a life cut short, a financial plan cut short and a family not only in an emotional but also a financial turmoil. This is where life insurance comes in. Purchasing a life insurance cover in any form (term, endowment, etc.) ensures that your family is financially secure even when you are no longer there to provide for them.

Importance of HLV
The key to ensuring your family’s financial security lies in the quantum of insurance cover you wish to purchase. So, how do you arrive at this magic figure? Well, by knowing your Human Life Value (HLV). The HLV provides an indication of the insurance cover required to ensure the financial security of your dependents after taking into account your life’s existing and future financial situation.

Factors impacting your HLV

Factors such as your age, annual income, age of retirement, goals, assets and liabilities, current and future expenses and of course, the existing insurance cover, if any, are considered.

  Annual Income- Your average annual income is computed for a given number of years, beginning from your present age to the age of retirement, adjusting for increments. All expenses such as taxes, EMIs, household expenses, etc. are deducted from the annual income.

Sources of Income other than Salary- Over and above your salary, you may have other sources of income such as rental income, investment income, dividend income, pension received by your parent(s) if any, etc. All these are also considered as annual cash inflows. 

Inflation - If you maintain the existing pattern of household expenses, the same will increase year on year due to inflation. 

Existing Investment Portfolio - The present value of future streams of income derived from current investments is taken into account after adjusting for inflation. 

Financial Goals - All future goals too need to be accounted to ensure its fulfilment even in your aftermath. 

Time Period- The corpus (i.e. the sum assured available from the insurance policy) needs to cover the financial needs of your dependants for a specified period of time. Identify this time frame and multiply all annual expenses with this figure to compute total expenses.
Outstanding Loans -Existing loans need to be repaid. Compute the present value of all outstandings – car loan, home loan, personal loan, etc. This will ensure that your family does not have to carry the additional burden of repayment of loans that may have been taken by you.
Existing Life Insurance Cover -You may have already purchased some insurance cover. This value needs to be deducted from the recommended insurance cover
Computing your HLV
All the above factors, individually and collectively lead to a suitable HLV figure… What formula should you use? Don’t get into that, unless you really want to. These days, there are many HLV calculators available on the internet. All you need to do is be ready with the above information, fill it in and voila...your HLV figure is returned to you. Remember, while an under insurance may lead to financial insecurity, an over insurance may lead to a commitment of resources that could have been utilised elsewhere.

Friday 31 May 2013

Buy Online Insurance today


Safeguard the financial security of those who shall be dependent on you in the future by availing life insurance today…
We all know the benefit of investing early - a longer investment term combined with the practice of reinvesting your investment income speeds up the wealth creation process. This principle of investing early also holds true for buying insurance, traditional as well as unit linked…

How? Read on to know the answer…

Getting life insurance at a young age is beneficial in many ways such as:

Getting An Easy Approval: For young applicants of life insurance, the approval process is often simple and easy. This is because conventionally the young are often less prone to health risks compared to the old. In most cases, you may be granted life insurance without going through any medical checkups.

Lower Cost: Insurance premiums are calculated on the basis of the underlying risk. In case of life insurance, the risk covered is related to death or severe physical disability. With average life expectancy at more than 60 years, life insurance companies foresee an unlikely chance of the underlying risk materialising in the near time in case of the young. Hence, keeping all other aspects same, a younger applicant will have to pay a lower premium vis-à-vis an older applicant.

Wednesday 29 May 2013

‘Right’ benchmark for the correct picture



Is your investment a performer or an under-performer? Compare its performance with its benchmark to know the answer…


Taking investment decisions is not easy. It involves a lot of comparison, analysis and interpretation. When comparing the past performance of two investment products, it is very important to compare apples with apples and oranges with oranges. For instance, it is incorrect to compare the performance of a balanced mutual fund with an equity diversified fund or a mid cap fund with a large cap fund.

A valid comparison is one between products with similar features and risk profiles. Another simpler way of comparing investment avenues is simply comparing products with their respective benchmarks.

What is a benchmark?

As per Investopedia, a benchmark is ‘a standard against which the performance of a security, mutual fund or investment manager can be measured’. Thus a benchmark can be an index, a combination of an index or even a price of a commodity in the spot (i.e. cash) market. For instance, indices such as the BSE Sensex, BSE Midcap and CRISIL Balanced Fund Index or the spot price of gold can be used as effective benchmarks for an index fund, midcap fund, balanced fund and gold ETF, respectively.

How does benchmarking help?

Many a times, considering the standalone performance of an investment avenue may be misleading. For instance, an investment which may have given a 1-year return of 20 percent may seem to be a performer. However, that would be true only if its benchmark has delivered a lower return than that. But, if the return from the benchmark is higher, then, it can be safely concluded that the performance is not at par.

 
Remember…

Generally,  every  investment plans  has  its  own  pre-defined  benchmark.Investors also can create their own benchmarks for comparison as long as they have similar features and risk profiles as the investment option. There might be occasions where investment firms use inappropriate benchmarks for comparison just to highlight their performance. In such a situation, investors can compare them with the correct benchmark or with the category average. This will help investors to get a clear picture about the investment’s relative performance with the benchmark.