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Health Insurance Plan Features Comparision

Health Insurance Plan Features – Good health is the most valuable asset that we have. Still, nowadays with increasing levels of stress, negligible physical activity, and changing lifestyles, our vulnerability to diseases is increasing at an alarming pace.

The cost of healthcare is rising every day indirect costs are more than the cost of your treatment, like – hospital room rent, nursing expenses, post-discharge expenses, recuperating expenses, ambulatory charges, etc account for a major part of the overall cost incurred. Lack of sufficient savings or a suitable health policy may force you to compromise on the quality of medical treatment.

Health insurance is a must as it saves money and covers unexpected calamities. Life is unpredictable, insurance can make it safe and secure from bearing huge losses.

Best Health Insurance Plans in India 2024

Despite of the fact that it is extremely important to purchase health insurance still 30% of the Indian population doesn’t have health insurance policies. This is as per NITI Aayog report of 2021. The major chunk of 70% people that are covered with health insurance rely on the health insurance coverage given by their employer. In case of job loss, they are outside of coverage of health insurance. Not only that most people do not purchase job loss cover policy. Although you are covered by a health insurance policy under the employee scheme you should still purchase a separate health insurance policy.

comparison Health Insurance Policy

Health Insurance in India is highly affordable it can be purchased with a click of a button. This policy carries the assurance and freedom from insecurities that threaten life now and then.

If you are planning to purchase health insurance you should compare health insurance policies to get the best deal.

Here are important factors to compare while purchasing a health insurance policy including actual plan comparison.

Health Insurance Plan Features Comparision

Features that you should compare while buying health insurance policy online and offline are given below.

Premium

You should compare health insurance policy premiums offered by various insurance companies. The premium of the policy should be lower. However, the premium is not the only factor for consideration.

Coverage Amount

The coverage amount, or sum insured, is the maximum amount that the insurance company will pay for the policyholder’s medical expenses. It’s crucial to choose an adequate coverage amount that can cover potential medical costs.

Cashless Facility

A cashless facility is a must nowadays. You should consider a plan that offers a cashless facility. Insurers have tie-ups with hospitals where policyholders can avail of cashless treatment, meaning the insurer settles the bills directly with the hospital.

Pre and Post Hospitalization Coverage

Most of the time we end up doing additional expenses after hospitalization. This means you should purchase the plan that offers post-hospitalization coverage. This typically includes diagnostic tests, consultations, and medications.

  • Pre-Hospitalization: Usually covered for 30 to 60 days before hospitalization.
  • Post-Hospitalization: Coverage extends for 60 to 90 days after discharge.

Waiting Period

In the case of pre-existing diseases, coverage is not provided from day one. This is why health insurance plans come with a waiting period instead of offering coverage from day 1. During this waiting period, no claims are admissible. Hence, you should choose a health insurance policy with a minimum waiting period.

Network Hospitals

Availing treatment at network hospitals is very convenient as they allow cashless treatment to the insured. This is why you should check the number of network hospitals an insurance company has. It is recommended to choose an insurance company that has a high number of network hospitals.

Add-on Benefits

Add-ons are additional benefits that you can include in your health insurance policy, for extensive coverage. You can choose them voluntarily by paying an extra premium at the time of policy purchase.

Day Care Procedures

Modern health insurance plans cover daycare procedures that do not require 24-hour hospitalization. This includes treatments like cataract surgery, chemotherapy, and dialysis. Look for plans that cover a broad range of daycare treatments.

No Claim Bonus 

No Claim Bonus is given by the insurers for every claim-free year. It can be in the form of a higher sum insured without an increase in the premium or a discount on the premium. Check the percentage increase in the sum assured. 

Co-Payment

Co-Payment is the percentage of the claim amount you need to pay from your pocket, while deductibles are the fixed amount you pay before the insurer starts paying.

Room Rent Limit 

Many plans have room rent limits and ICU Charges that determine the daily allowance for room and intensive care unit charges during hospitalization. Opt for the plan that has no room rent limit or higher room rent.

Maternity and Newborn Coverage

Some health insurance plans provide maternity and newborn coverage, that includes expenses related to childbirth and newborn care. Few plans come with a waiting period for maternity benefits.

Annual Health Checkup

Many health insurance plans offer annual health check-ups as a part of their coverage. Regular health check-ups help in early detection and management of potential health issues.

Benefits of Health Insurance

Financial Security

Health insurance provides financial security by covering high medical costs. It ensures that individuals can access necessary medical care without depleting their savings.

Access to Quality Healthcare

With health insurance, policyholders can access quality healthcare services, including consultations with specialists, advanced medical treatments, and hospitalization.

Cashless Treatment

Most health insurance plans offer cashless treatment at network hospitals, where the insurer directly settles the medical bills with the hospital. This eliminates the need for policyholders to arrange funds during emergencies.

Tax Benefits

Under Section 80D of the Income Tax Act, health insurance premiums are eligible for tax deductions, providing financial benefits to policyholders.

Additional Benefits

Health insurance plans often come with additional benefits such as ambulance charges, alternative treatments (like Ayurveda, Yoga, Naturopathy, Unani, Siddha, and Homeopathy), and wellness programs.

Challenges in Choosing the Right Plan

Complex Terminologies

The insurance industry is filled with complex terminologies that can be confusing for consumers. Understanding terms like sum insured, co-payment, and deductible is crucial for making informed decisions.

Hidden Clauses

Insurance policies often contain hidden clauses that can affect the claim process. It’s essential to read the policy documents carefully to understand all terms and conditions.

Premium Increases with Age

As individuals age, the risk of health issues increases, leading to higher premiums. Planning for these increases is important to maintain continuous coverage.

Selecting Adequate Coverage

Choosing the right coverage amount can be challenging. It’s important to assess personal and family health needs, potential medical costs, and financial capacity.

Claim Settlement Process

The claim settlement process can be cumbersome and time-consuming. It’s important to choose an insurer with a high claim settlement ratio and a smooth claim process.

Conclusion

Selecting the best health insurance plan in India requires careful consideration of various factors such as coverage, premiums, hospital network, and additional benefits. By understanding your needs and comparing different plans, you can make an informed decision that provides comprehensive protection for you and your family. Invest time in researching and choose a plan that not only fits your budget but also ensures peace of mind in times of medical emergencies.

Term Insurance Plans Comparison- How to Select a Term Plan?

Term Insurance Plans Let me start this post with the famous saying of Michael J Fox – “Family is not an important thing, it’s everything”. So, if you care for your family, you should buy an insurance policy (term plan). A term plan provides financial assistance in case of an unfrozen event.

Term insurance policies are very popular nowadays. Premium rates of such policies are very low, companies are advertising term plans in a big way.

Financial planners also recommend that a term plan is best for insurance, as it covers high risk at a low price. The premium of the term plan is the lowest compared to ULIP, endowment, or money-back plan. Term plan policy is purely for risk cover.

Term Plan Comparison India

What is a Term Insurance Plan?

Term Insurance Plan is a pure life insurance policy. Term Insurance means an agreement between the insurer and the policyholder. In this policy, the insurer will pay the fixed sum assured to the nominee on the death of the policyholder. If the policyholder survives the policy term, the insurer will not pay anything.

In a few term plans, the policyholder can select how death benefit will be paid to the nominee. The payment could be either lump sum or monthly.

What are the Benefits of a Term Insurance Plan?

There are multiple benefits of Term Insurance Policies. Details are given below.

  • A term insurance policy provides higher-risk coverage at a lower premium.
  • Your nominee will get a lump sum amount in the event of sudden death.
  • You can opt for an additional sum assured benefit in case of accidental death.
  • Term insurance plan takes care of the family in case of disability or critical illness.
  • One can get a lump sum amount if diagnosed with a critical illness.
  • You can avail of tax benefits for the paid premium amount.
  • If opted, one can get supplementary income in case of loss of income due to accidental disability or illness.
  • An online option is available. It can be purchased easily without the help of an agent.

Why Term Plan?

You might be wondering, “Why would I go for a term plan instead of other types of insurance?” Here are a few reasons:

  • Affordability – Term plans typically offer higher coverage at lower premiums compared to whole-life policies.
  • Simplicity – These plans are easy to understand without complicated investment components.
  • Flexibility – You can choose the term length based on your financial goals and needs.

There are many term insurance plans in India, but all of them have different features and premium rates which confuses a prospective customer to choose the best term insurance plan. Look at the following comparison chart and Important features before purchasing the term plan.

How to Select Term Plan – Step-by-Step Guide

#1 Evaluate Your Financial Needs

Take a look at your financial situation. Ask the following questions to yourself.

  • How much coverage do I need?
  • What loans and liabilities do I have?
  • What future expenses should I consider (kids’ education, marriage, retirement, etc.)?

Making a financial plan will assist in calculating the required coverage amount. Being underinsured could put your family in a tough spot, while over-insuring might be a pointless expense.

#2 Determine the Policy Term

The next step is to decide policy term means for how much period you need insurance coverage. The term should ideally include the time when you have the most financial responsibilities.  

  • 20-30 Years: If you have young children, a mortgage, or are far from retirement.
  • 10-20 Years: If your kids are older and you’re closer to paying off significant debts.
  • 5-10 Years: If you’re nearing retirement and just need a little extra coverage.

#3 Compare Different Plans

Now you need to find out and compare various plans to see which plan is suitable for your needs. You should at least look at the following features while deciding.

  • Premium – Ensure the premiums fit within your budget without compromising on coverage.
  • Riders and Add-ons – Some insurers offer additional benefits like critical illness coverage, accidental death benefits, etc.
  • Claim Settlement Ratio – This indicates the reliability of the insurer in settling claims. Higher ratios are generally better.
  • Unique Feature – Any Unique feature provided by a plan that is of your need.

#4 Check the Reputation of the Insurer

You should find out or research about the reputation of the insurer. You can look at the following –

  • Customer Reviews  – Check online reviews for insights from existing customers.
  • Financial Strength – Look at the company’s financial ratings to ensure they’re capable of paying out claims.

#5 Understand Terms

You should understand policy terms and exclusions. Some common things to look at –

  • Suicide Clause – Most policies won’t pay out if the insured commits suicide within the first couple of years.
  • Claim Settlement – You should take a look at the claim settlement and its history.

#6 Seek Professional Advice

Seek professional advice. It is a fact that If you are uncertain, seek advice from a financial consultant. They have the ability to offer customized guidance tailored to your specific circumstances and assist you in understanding the intricacies of choosing a term plan.

Top 6 Best Online Term Insurance Plans in India

Term Plan – Comparison

Term Insurance Plans Comparison - Moneyexcel

Key Features of Various Term Plans

ICICI – iProtect Smart

  • ICICI iProtect Smart plan is available in four different options Life, Life Plus, Life Health & All-in-One.
  • ICICI Pru iProtect Smart Offers the facility of Life stage protection (increase in coverage) without any medical.
  • Accidental Death coverage is offered in Life Plus and All-in-One Plan Only.
  • 34 Critical illness is available in Life Health & All-in-One Plan.

HDFC Click 2 Protect Super

  • HDFC Click 2 Protect Super plan is offered in three different options Life Plus, Increasing Coverage + Terminal Illness Coverage & Decreasing Life Cover options.
  • Accidental Disability, Critical Illness, and Health Rider Options.
  • Option to choose increasing Death Benefit up to 200% under Life option.
  • Option to vary your Death Benefit according to your need under the Life Goal option.

Max Life Smart Secure Plus

  • Max Life Smart Secure Plus offers Life Cover and  Increasing Life Cover options up to 200%.
  • Max Life Smart Secure Plus comes with death benefits, including a cover for terminal illness and an exit value.
  • This plan provides optional benefits such as premium breaks, joint life cover, additional payout on accidental death

Bajaj Allianz Life eTouch

  • Bajaj Allianz Life eTouch offers a shield for your life to cover death, terminal illness & disability.
  • This plan offers flexibility to pay premiums throughout the policy term.
  • Bajaj Allianz Life eTouch provides a unique feature of Premium Holiday. This means you can skip your premium during the policy term for 1, 2, or 3 years.
  • Bajaj Allianz Life eTouch is available in three different policy options Life Shield, Life Shield Plus, and Life Shield ROP.

PNB MetLife Mera Term Plan Plus

  • PNB MetLife Mera Term Plan Plus is available in three different variants Life, Life Plus (Terminal Illness Benefit, Premium Waiver Benefit) & Life Plus Health.
  • PNB MetLife Mera Term Plan Plus offers an Additional Spouse Coverage Option.
  • This plan also offers step-up benefits, life stage benefits, and child education support options.

Kotak Life – Kotak e-Term

  • Kotak e-Term offers 3 plan options Life, Life Plus, and Life Secure Options.
  • Kotak e-Term comes with 3 payout options Immediate Payout, Level Recurring Payout & Increasing Recurring Payout.
  • This plan comes with a Step-Up option to increase coverage of future life-stage events.
  • You can purchase additional riders of Permanent Disability & Kotak Critical Illness Plus with the Kotak e-Term Plan.

Aditya Birla Capital – DigiShield Plan

  • Aditya Birla Capital – DigiShield Plan is a customized term plan with 10 plan options.
  • DigiShield Plan offers flexible death benefit payout options – as a lump sum, monthly income, or a combination of both.
  • This plan offers the option to cover your Spouse under the same Policy with Joint Life Protection.
  • DigiShield Plan comes with an Inbuilt Terminal Illness Benefit and Accelerated Critical Illness cover for 42 specified Critical Illnesses, on payment of an additional premium.

Tata AIA – Sampoorna Raksha Supreme

  • Tata AIA – Sampoorna Raksha Supreme offers multiple plan options Life, Life Plus, Life Income, and Credit Protect
  • In this plan, you can increase your life cover at important life milestones.
  • This plan comes with a range of rider options, you can be covered against critical illness, accidental death, etc.
  • This plan allows you to select a payout option.

edelweiss – Zindgi Protect

  • edelweiss – Zindgi Protect offers Life Cover and Return of Premium options.
  • You can add the Better Half Benefit or Future Protect Benefit by paying an extra premium.
  • edelweiss Zindgi Protect provides a premium break facility by paying an extra premium
  • This plan offers different payout selection options.

SBI Life – eShiled Next

  • SBI Life – eShiled Next offers three plan options life cover, increasing cover, and level cover.
  • You can customize this plan with a death benefit payment mode and a better half benefit option.
  • Terminal illness benefit is offered under the eShield Next Plan.
  • Additional Rider options are available under this plan.

LIC – New Tech Term Plan

  • LIC New Tech Term Plan is an Individual Pure Risk Premium Life Insurance plan with the option of level sum assured and increasing sum assured.
  • This plan is offered with differential premium rates for smokers and non-smokers.
  • You can opt for Accident Benefit Rider with LIC New Tech Term plan.
  • LIC New Tech Term plan is an online term assurance plan. This means you can purchase this plan online only.

Tips For Buying Term Insurance Policy

  • Go for an Online Term Plan instead of an Offline plan. Online term plans are much cheaper as no middleman agent is involved in between.
  • Claim settlement is one of the leading indicators don’t rely too much on the claim settlement ratio.
  • Fill up the complete details given in the form without hiding anything. Never allow someone to fill out the proposal form.
  • I would not advise going for any type of rider while buying a term plan.
  • Review your insurance requirements regularly and make changes to growing needs.

Over to you –

Looking at the above term insurance comparison you must have got fair idea about various term plans. So, Which term plan do you have currently? If you are planning to buy one, and seeking guidelines get in touch with us at sk@moneyexcel.com.

Real Estate Investment – Good or Bad?

Today multiple investment options are available in the market and one of them is real estate. When asking anyone about investing in real estate most people including financial experts give instant responses that real estate is a good investment option.

Everyone thinks that one can earn lacs of rupees by buying and selling real estate and it provides decent returns. Yes, real estate does provide good returns after a few years or months of investment. However, apart from a return, you have to consider various other factors before deciding whether real estate investment is a good or bad investment option. In this post, I will guide you to decide whether real estate is a good investment option or bad.

Real Estate Investment Option

Real Estate Investment – Good or Bad?

Thinking of real estate as a good investment option my friend purchased a 2 BHK flat at a prime location in Navi Mumbai in 2010 for investment purposes. After 1 year that flat was giving him a return of 15% and to fetch a profit he sold this flat.

Unfortunately, he was unaware of the capital gain tax on selling property. He ended up paying a substantial amount as tax on the profit. He also had to shell out the tax exemptions that he was availing of on the home loan. After considering this tax implication he was earning a 7% return only. 

Learning – Financial transactions without knowledge can turn into disasters. 

10 Best Real Estate Apps on android smart phone

Let’s understand all factors described above, before making any real estate investments –

Real Estate Investment Implications 

Short-term Capital Gain Tax 

As per income tax rules, if anyone sells real estate within 24 months (2 years) of buying it, the profit (difference between the purchase price and the selling price) will be added to his income for that particular year and taxed as per the tax bracket he is in.

So if you come in the highest bracket (tax at 30%), your gains will be taxed at 30%. Therefore if you gained 10 lakhs from the sale, you will have to pay 3 lakhs as tax.

Long-term Capital Gain Tax

As per tax rules if you sell real estate after three years or 24 months, then it’s considered long-term capital gain (LTCG) and you have to pay 20% of the profit as tax with indexation.

You can get an exemption from this tax under certain conditions. “To get the exemption, you need to purchase the new residential house within a period of one year prior to or two years after the transfer of the original house. As far as the under-construction house goes, the construction needs to be completed within three years from the date of transfer of the original house.”

If the cost of the new residential property exceeds the capital gains, then all capital gains are exempted from taxes.

Loan implications

Due to lack of money if you have bought the house by taking a home loan then you can take advantage of tax exemption on your principal amount (up to 1 lakh per year) and interest (up to 1.5 lakh per year).

The Income Tax Act says, that if you sell a house within five years of buying it, the tax benefits on the principal repayment on the home loan are reversed. These are then included in your taxable income in the year of sale.

Therefore, if you have availed 5 lakh tax exemptions for the principal (in 80 C) in the last 5 years (since the purchase of this house), you have to add this entire amount to your taxable income & you will be taxed at whatever income bracket you fall in. If you’re in the highest bracket of 30%, then 30% of 5 lakhs will have to be paid to the income tax dept.

There is no provision for levying income tax on tax benefits claimed for home loan interest. Therefore, any tax advantage you have claimed under Section 24(b) for interest will not be subject to tax at this time.

Maintenance & Other Cost 

If you have purchased a flat then you are liable to pay a fixed maintenance cost to society every month. Not only that every year you will be paying municipality/ property tax.

RBI has passed a directive that a prepayment penalty is not applicable otherwise it could lower your profits even more as banks were charging up to a 2% penalty.

Rental Income

Many people think that they will rent their real estate investment and earn money. Nothing is wrong but the maximum rent in most of cases is around 6% of the investment amount. This 6% return will not even cover inflation.

Apart from this, you have to declare this rental income as taxable income which may increase your income tax burden.

Cost of Time and Trouble 

It is very easy to buy property but sometimes it is very difficult to sell. You might have to wait months or years together to get a good deal for your property, During that time, you are investing your time and money in efforts to sell this property.

Sometimes in need of urgent money, you may sell this property at a discounted rate or may end up paying brokerage charges to broker. This will further reduce your profit.

So, real estate is a good investment option only if:-

(1)   You can hold property for a long time (more than 3-5 Years)

(2)   If you have excessive cash you need not take any loan for making an investment.

(3)   You are making a profit in black transactions and the white transaction profit is much less.

(4)   You are always reinvesting profit from real estate to real estate.

After reading this article if you are thinking of hiding your transaction for not paying tax then think again, every transaction done above a certain value is in the eye of income tax.

Every registry paper requires your PAN card and Aadhaar Card details and these details are captured by income tax. The income tax department may send you notice & you may be in other trouble.

So next time you get advice that real estate is a good investment option do remember what you read here. It may save you time and money.

Happy Investing!

Learning from Warren Buffett Life – Simple Living High Thinking

Warren Buffett – The Oracle of Omaha & icon of Simple Living High Thinking “Warren Buffett was born on August 30, 1930. Where the people are going mad behind money and materials there is an example of the person who is richest around the world but lives a simple life.”

There was an hour interview on CNBC with Warren Buffett the World’s 2nd richest man who has donated $31 billion to charity. Let’s discuss Warren Buffet.

warren buffett life

Learning from Warren Buffett’s Life

Life Experiences

Life Facts and Suggestions of Warran Buffett’s

1. He bought his first share at the age of 11 and he now regrets that he started too late!

Things are very cheap at that time Encourage your children to invest at an early stage.

2. He bought a small farm at the age of 14 with savings from delivering newspapers.

One could have bought many things with the little saving Encourage your children to start some kind of business.

Home of Warren Buffett  

3. He still lives in the same small house in mid-town Omaha, that he bought after he got married 50 years ago. He says that he has everything he needs in that house. His house does not have a wall or fence.

Don’t Buy more than what you “really need” and encourage your children to do and think the same.

Simplicity

You can accomplish things economically!

He drives his own car everywhere and does not have a driver or any personal security people around him.

You are what you are!

He never travels on a private jet, although he owns the world’s largest private jet company.

Always think about how you can accomplish things economically.

Berkshire Hathaway!

Warren Buffett’s Company

His company, Berkshire Hathaway, owns 63 companies. He writes only one letter each year to the CEOs of these companies, giving them goals for the year. He never holds the meetings or calls them regularly.

Assign the right people to the right jobs.

He has given his CEO’s only two rules:

            Rule number 1: do not lose any of your shareholder’s money.

            Rule number 2: Do not forget rule number 1.

Set goals and make sure people focus on them.

No Mobile no Computer!

He does not socialize with the high society crowd. His past time after gets home is to make himself some popcorn and watch television.

Don’t try to show off, just be yourself and do what you enjoy doing.

Warren Buffett does not carry a cell phone, nor has a computer on his desk.

Warren Buffett and Bill Gates

Bill Gates, the world’s richest man met him for the first time only five years ago. Bill Gates did not think he had anything in common with Warren Buffett.

So he has scheduled his meeting only for half an hour. But when Gates met him, the meeting lasted for 10 hours and Bill became a devotee of Warren.

Being Generous

Warren buffet believed in the power of giving and he made pledge that more than 99% of his wealth would go to philanthropy during his lifetime or upon his death.

Warren Buffet’s Investment Quotes

“I am a better investor because I am a businessman, and a better businessman because i am an investor.”

“It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.”

 “We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.”

Warren Buffett Infographic

Warren Buffett’s Advice to Young Generation

  1. Stay away from Credit Card (Bank Loan) and Invest in yourself and remember :
  2. Money doesn’t create man but it is the man who created money.
  3. Live your life as simple as you are.
  4.  Don’t do what others say, just listen to them, but do what you feel good.
  5. Don’t go on Brand Name; just wear those things in which you feel comfortable.
  6. Don’t waste your money on unnecessary things, just spend on those who are really in need.

After all, it’s your life so why give a chance to others to rule your life?