Money Guru: Drive away all your tension with insurance – health, term, home loan, travel and more
In this edition of Money Guru, Zee Business’ Swati Raina speaks to Anil Chopra, Group Director, Financial Wellbeing at Bajaj Capital and Feroze Aziz, Deputy Chief Executive Officer (CEO) at Anand Rathi Wealth Limited to explain viewers the importance of different types of insurance
In this edition of Money Guru, Zee Business’ Swati Raina speaks to Anil Chopra, Group Director, Financial Wellbeing at Bajaj Capital and Feroze Aziz, Deputy Chief Executive Officer (CEO) at Anand Rathi Wealth Limited to explain viewers the importance of different types of insurance.
Drive away tension by taking insurance plan
Shield yourself through insurance plans
Insurance is not just for health but various other things
How to create an insurance portfolio?
Which insurance plans are a must buy for you?
Reach of insurance in India
Low penetration of insurance is a big challenge for the industry?
IRDAI’s annual report for 2020-21
Insurance is just 4.2 per cent of GDP in India
The global penetration of insurance is at 7.4 per cent
As of March 2021, the reach of non-life insurance is just 1 per cent
Why is insurance planning important?
You must take insurance even before you start investing
Important to have health plan and term plan
Health insurance is important as the medical expenses are only growing. It will protect you financial in health emergencies.
You must take plan according to your age, city, income and lifestyle.
Diversify your insurance portfolio.
What is important in insurance plans?
Term Insurance
- Disability insurance
- health insurance
- ULIP
- Deferred Anuity plan
- Immediate annuity plan.
- Travel Insurance
- Motor Insurance
- Home Insurance
- Money Back policy
-Cyber Insurance
Disability Insurance
You might find challenges in earning your livelihood in the event of disability.
Insurance jhelps you meet your needs and also your family’s needs.
You may avail income from insurance on a monthly basis.
Permanent total disability and permanent partial disability.
Temporary total disability is covered under the insurance cover.
Critical care cover
Under the critical illness plan, serious illness is covered
It includes health conditions like cancer, heart attacks, kidney ailments and others.
Critical Illness rider, standalone policy available
In critical illness rider, limited health conditions are covered
Standalone policy is a comprehensive plan
A lump sum amount is given when the policyholder knows about his condition.
In health insurance plans, a separate critical illness plan must be taken
How much should be the critical illness cover?
Rs 1-50 lakh should be the sum insured
If you are a lone bread-earner insurance is a must
It is also a must if there is some family history of illnesss.
If you have a risky lifestyle and you live in metros, then the health insurance is a must.
There is a 90-day waiting period in critical illness.
Term Insurance Plan
Term plans are pure life insurance policies
It will be of great financial help in the event of something untoward happening to you.
You can be covered handsomely even on low premium plans
Up to Rs 1 cr cover with just Rs 500 monthly premium.
Death benefit in case of term insurance plan.
The amount is given to the nominee if the policyholder dies while the policy is ongoing.
No monetary benefit if the person remains alive at the time of expiry of the policy.
Tax incentive under Section 80C of the Income Tax Act on term plans.
What should be term plan coverage?
Term plan should be taken in accordance with income and age
At 40 years of age, the term cover should be 20-30 times
At the age of 40-50 years, 10-15 times coverage is good
If the age is 50 years or above, 5 times coverage is good
Keep the insurance cover till the time of retirement
Home Insurance Policy
Your home is at a danger because of heavy rains or storm
Rains pose a danger to your home and office
There is a danger of short circuit or fire
Protect your house against floods, storm through insurance
It is important to have insurance for homes
Which incidents will be liable for coverage?
Fire
Lightening Storm, Tsunami
Landslides
Earth quake
Theft, burglary
Terrorist activities
Natural Calamities
Cyber Insurance
Coverage against digital attacks
Coverage against financial loss because of online frauds
Loss due to illegal transactions, online thefts will be compensated
Financial security against cyber security
Why cyber insurance is necessary?
Digital transactions are on the rise
The cyber fraud cases have been on the rise
Financial loss if there in the event of online frauds
The insurance provides a financial cover on your losses
What all is considered in cyber insurance?
Ransom ware attack/ cyber extortion
Data loss
Email spoofing
Phishing
Cyber stalking
Loss due to malware
Third party privacy, data breach
ULIP
ULIP- Unit Linked Insurance Policy
It gives twin benefits of investment and insurance
One part of the premium goes for investment while the other for insurance
It invests in equity, corporate debt and G-Sec
5-year lock-in period in ULIP
Tax benefit under Section 80C
Partial withdrawal allowed in case of emergency
Tax on annual premium over Rs 2.5 lakh
Annuity Plan
One is immediate annuity and the second is deferred annuity
In deferred annuity plan, there is a lump sum investment
Deferred Annuity – monthly income on retirement
In immediate annuity plans, payouts starts immediately
Immediate annuity is a good option when nearing retirement
You can change deferred annuity into immediate annuity scheme.
No tax benefit to policy holder on annuity schemes
The payout to policyholder is lifelong or indefinite
LIC’s Jeevan Akshay policy – immediate pension plan
LIC’s Jeevan Shanti Policy – deferred pension plan
Travel Insurance Plan
Compensation if the journey gets cancelled
In medical emergencies, travel insurance is necessary
Terrorist incidents/ helpful in any mishappening to the family member
On natural calamity, the loss is compensated to the traveler
Compensation if the insured misses his connecting flight
Coverage if there is theft in case of holidays
Home Loan Insurance
In the event of the death of loan account holder, the insurance company will bear the loan payment
Many insurance companies cover loan repayment
No regular premium payment in home loan insurance
In home loan insurance there is a lump sum premium payment
There is now worry of loan default payment, the onus of repayment lies on the insurance company
There is no cover on death due to natural reasons or suicide
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Power of Compounding: How many years will it take to reach Rs 3 crore corpus if your monthly SIP is Rs 4,000, Rs 5,000, or Rs 6,000
Power of Compounding: Salary Rs 25,000 per month; is it possible to create over Rs 2.60 crore corpus; understand it through calculations
Liquor stock under Rs 300: Can this smallcap scrip double your money in 1-2 years? Check targets by Anil Singhvi
Reduce Home Loan EMI vs Reduce Tenure: Rs 75 lakh, 25-year loan; which option can save Rs 25 lakh and 64 months and how? Know here
05:33 PM IST