It is said by Walt Streightiff  “There are no seven wonders of the world in the eyes of a child.  There are seven million.”
Being a parent, some important planning related to your children can be

• Education
• Daughter’s marriage
• Succession
• Planning for a business for best support of your family.

There are a number of investment options are available that can help you in the future by offering capital for fulfilling your needs. These investment options can be with fixed income such as bonds and FD’s whereas some other may offer fluctuating returns such as mutual funds, equity etc. Both are associated with the condition of the economy.

Apart from these investments, another option is child insurance that comes with a stable income and has become a necessity of these days. Child insurance along with protection offers you a list of the various benefits. Being a sensible parent, it is your inevitable responsibility to purchase an insurance policy for your child. These insurance policies are one amongst those that offer a secure financial future for your child.

In India insurance firms are offering lots of plans for your child, you have to choose the right plan for best results.

Importance of child insurance policy
Child insurance is crucial because children are totally dependent on parents, in case of any accident to parent’s in the initial stage of child’s life leads to significant hazards to a child’s survival. Child insurance polices not only enables parents to meet daily needs of their children but at the same time reveal them from their future tensions.

How does it work?
Child insurance plans are basically life insurance covers, parents are policyholders and children are beneficial in such policies. The child will be paid in case of parent’s death, if after the death of parents someone continues payments of premium the assured amount will also be paid to the child after the completion of the scheme.

Risk-return expectations
A number of insurance companies are out there in the market with various plans offerings from conventional baskets to innovative modes such as unit links insurance plans or ULIPs. The selection of insurance policy among the bunch of different bundles is totally relaying upon risk-return expectations of parents. When parents try to avoid risk through the exposure of equities best insurance instruments for them are capital guaranteed schemes or ULIPs can be good options in case of equity exposures.

Assured amount
ULIPs have an advantage over conventional insurance policies as for the same policy its live coverage is high. Longer term results in high returns as well as parents can increase assured amount by creating top-up-premium. The policy allows you to pay in single premium or regular premium. Premium payments can be on the premise daily payments, monthly, quarterly or annually.

Things to remember before purchasing a plan
There are some fraudulent bodies existing in the market therefore it is crucial to gather necessary information concerning charges, unaccredited agents and ask about the authenticity of the insurance policy before making purchases. Such information will save you from serious losses as well as help you in making long term relationships with insurance firms.

Best Reading:

• Why Car Insurance Is Must
• How to Select the Right Health Insurance Policy
• Why You Need To Diversify Your Investments?
• Tips for smarter insurance planning

Conclusion:
Think of a customized investment plan for your kid’s future with a mix of 2 or 3 investment options instead of  ready made product with a tag “Child Plan”.

Image Source : management-punditz

The place where we live provides us the shelter to stay in, so sheltering such place from unpleasant disasters should be a concern for everyone. And such shelter resides in getting home insurance.

Wait! Before actually buying a home insurance there are a few things you must know about home insurance.

1. Introduction to Home Insurance
Home insurance, a policy introduced to protect the home structures and other personal belongings from disasters for instance, earthquakes, fire set ups, floods. And such other tragedies. Moreover home insurance also covers personal valuables from theft or robberies.

2. Purpose of Home Insurance
Some people might think that they do not require insurance as they live in the areas which are quite safe from floods or earthquakes but what if, your huge investment in home purchase and décor collapse due to some unpleasant event like a short circuit in electrical wiring or a robbery. The purpose of home insurance is to compensate any kind of damage to your property.

3.  Additional Benefits or Policies
Some Insurance companies cover home appliance and electronics through other home insurance policies but not considered as total insurance. Furthermore, the damage caused by some terrorist act can also be covered through optional insurance covers. Whatever a person wants to get insured relies on his/her consent.

4. Exclusions in Home Insurance
The damage done due to the deliberate destruction of the property is not covered under home insurance. Insurance can’t be fulfilled In addition to that if the property is being used for any purpose as compare to residency.

5. Calculation of Sum Insured
The standard procedure of calculation the total insured for home is the consideration of reconstruction value that is the worth of the product of constructed area with the construction cost/sq ft. It includes the cost of base not the buying value of land. For other durables the sum is based on the market value of the products after depreciation.

6. Assessment of Claim
A surveyor appointed by the company is assessing the extent of damage caused to home or property and the compensation will depend on surveyor’s report. Remember a few insurance companies might contribute a very little proportion to the architect’s fee on hiring one for reconstruction.

7. Things to Consider Before Buying a Policy
You must take a few things into your consideration before buying insurance policy as you might not be aware of few of those tricky exclusions. For instance, frame less doors, appliances 8 years older cannot be insured.  You should also take into account whether your insurance cover include things like laptops, digital cameras and jewelry. Some companies also exclude modular kitchens from their insurance cover.

The policy statement provides details of the clauses and policies may vary in different companies.

Conclusion:
Just as you care about our health or your vehicles by getting them insured, you must also pay attention to the most valuable asset you own and that is your home. Building other assets over and again is easy but you get only rare chances to build your home and when you own one you must get it insured. However do not take a hasty decision in buying insurance policy as you should check out the scheme manual yourself instead of relying on agents.

There is something to rejoice from among the policy holders who usually complain with regard to the practice of some insurance companies which violates the cashless practice in view of medical situations.  The Chairman of the insurance regulator Insurance Regulatory and Development Authority (IRDA), Mr J. Hari Narayan, said in view of this scenario that action will be taken against insurance companies violating the terms of cashless health insurance policy for consumers.

It has therefore been cleared by the beloved and smart chairman that “if there is a violation of contract entered into between the policy-holder and an insurance company, certainly the primary function of the IRDA is to uphold the contract, particularly in favour of the policy-holder,” Mr Narayan told reporters on the sidelines of a FICCI conference.  Well, obviously this is something that each and every insurers should take into consideration very seriously if they do not want to be penalized.

In connection to this, the said IRDA chairman said that “an insurance company can be fined up to Rs 5 lakh for such wrongdoings. The aggrieved consumers can seek relief by calling the IRDA on a toll-free number 155255, he said, adding that orders have been given to insurance companies to regularly send to policy-holders the latest list of partner hospitals with cashless facility.”  This move will surely benefit the insurance holders themselves.

It must be noted that in view of this set up there is indeed a great need for these insurance companies and the hospitals to agree some things that will benefit all the concerned parties.  However, he maintained that there is no need to look into the issue from a regulatory point of view, and hoped that insurance companies and partner hospitals will sort it out among themselves.

CASHLESS FACILITY TO BE RESTORED: This reality has been discussed lately by a lot of concerned people primarily from among those in IRDA, the insurance companies and the hospitals concerned.   Later, the issue was discussed at a CII-initiated discussion between private hospitals Fortis Healthcare, Apollo Hospitals, Max Healthcare Institute and Medicity, representatives of insurance companies United India Insurance, Oriental Insurance, National Insurance and New India Assurance and Raksha TPA, the third party administrator.  There is therefore a great hope that things will be settles soon with this events going on.

What happened therefore in view of this talk between the different parties?  After the meeting, Medicity Chairman, Dr Naresh Trehan, said that both sides will resolve their differences and restore cashless treatment under Mediclaim policies within 10 days. From July 1, the PSU insurance companies had removed around 150 hospitals from its list of Preferred Provider Network (PPN) that provides cashless treatment to policy holders. There are around eight crore Mediclaim policy holders in the country.  Thanks then to the people particularly from IRDA who made this good move of gathering together all the concerned institutions in restoring the cashless policy.

Hence, he issue concerns instances of over-billing by hospitals for cashless facility, much higher than the facility where cash is paid in advance and reimbursed by the insurance company. This meant higher claims for cashless facility and subsequent losses to insurance firms. Insurance firms have also said that lower treatment cost will also reduce loading on policy premium at the time of policy renewal.  This is something great indeed!

One thing that has been emphasized by the concerned insurance companies was: that  the hospital rates be the same for cashless and reimbursement facilities. “There is a need to bring alignment and a balance between best price and quality healthcare,” Mr Trehan said, adding that there could be standardisation of the billing process in different hospitals.

Moreover, Mr Narayan also referred to a Parliamentary Committee report calling for the Government to consider setting up a regulator in the medical field. He said that either the Health Ministry or a medical regulator comprising experts should prescribe the standard procedures to be followed by the medical sector.

Separately, in a written reply to a question, the Minister of State for Finance, Mr Namo Narain Meena, said the insurers have confirmed that in case of emergency and trauma cases, cashless facility will be provided at all hospitals irrespective of whether they are part of the PPN or not.

Best Reading:

• Life Insurance Quotes in New Delhi : Max Life Insurance
• Top 10 Life Insurance Companies In The Whole Of India
• The Indemnity Principle of General Insurance
• How to Select the Right Health Insurance Policy
• Detecting Flaws in Business Insurance

In conclusion, this move of gathering together the various insurance companies together with the owners and Board of Trustees of the various hospitals will finally rest the minds of the worried policy and plan holders who may shell out extra cash from their pockets once the cashless policy between the patients and the hospitals will not be realized soon.  But with the intervention of IRDA, hopefully things may finally become normal and once again settled.  This move of IRDA is obviously something commendable by every policy owners knowing the fact that it is indeed not a joke to get hospitalized with all its bills concerned and involved.

Have you been to New Delhi? Do you know that a good business trivia has it for this city?  It’s a haven and a heaven for insurance business.  New Delhi, India is one city not only in Asia but even in the world that is loved by a lot of businessmen simply because of its hardworking citizens and very fond, loving and kind citizens.  It’s indeed an obvious reason why among these business corporations thrive in numbers in this nice Indian city.  Among others is the insurance business.  It is indubitable that insurance companies would like to invest their businesses in this state due to the fact that they will simple earn a fortune if not enough profit to break even or give them more than enough income in return.  The people of this city always see to it that they will have a portion of their incomes invested in those insurance policies.

Among the most noted life insurance company attracted to establish its insurance business roots is the Max Life Insurance.  Let us talk about this insurance company in a nutshell.

About Max Life Insurance Company: Max Life Insurance Company is one name in the field of insurance in India that offers a diverse range of products for a wide ranging variety of customers. The company Max New York Life Insurance is a joint business enterprise between India’s leading Multi-business Corporation Max India Limited and New York Life, a Fortune 100 Company. The company aims to become the most admired life insurance company in India and has developed a strong corporate governance model based on the central value of excellence, honesty, knowledge, integrity and teamwork.

Moreover, Max Life Insurance puts special emphasis on the selection process of the insurance agent advisers. The selection process comprises of four stages namely: screening, psychometric test, career seminar and the final interview. All the training is provided in-house to ensure control on the quality of the training offered. The company has a multi-channel distribution that is spread across all parts of the country. Max offers a suite of products covering the sectors of both life insurance and health insurance sectors.

Max Life Insurance Company in India: Merged in 2000, the company started its commercial operations in India one year later in 2001. Max Life Insurance Company has around 87,688 agent advisors at 712 offices across 389 cities in the country. Besides this, the company also has 36 referral tie-ups with banks, 24 partnership distribution and alliance marketing relationships. The company has put in place a unique model of distribution to deepen our rural penetration and has 137 offices dedicated to rural areas. Currently the company has more than eleven thousand employees in India working in the various insurance divisions.

Max Life Insurance Solutions: Max New York Life Insurance provides individual, group, life and health insurance options to customers in India. Other services like investment plans, retirement plans, insurance plans for children, group credit life plan, health insurance plans, saving plans, rural plans, group gratuity cum term insurance plan, protection plans and deposit linked insurance plans to groups are also on offer.

One of the easiest means for these citizens of New Delhi in looking for their best and most suited insurance policies is basically through the internet.  Online life insurance quotes are indeed easy to find with the help of search engines such as Yahoo, Google and the latest Bing.  It is of no doubt that these search engines will lead you to hundreds if not thousands of sites in view of these life insurance companies.  It is up to you then to check and balance or weigh the pros and cons, advantages and disadvantages regarding these life insurance companies with their respective offers and quotes.

It is interesting to note that most citizens of New Delhi find it very easy to invest in life insurances maybe because of the fact that they are well informed or well advised by most of their friends and relatives to get for themselves and their loved ones, not to mention their assets and valuables, such as their homes, cars, jewelries and the like.  It is therefore implied that insurance agents are more than willing to give most of their time and efforts in convincing their clients in this state simply because of the fact that these citizens are most probably purchase their products or services.  The city of New Delhi therefore in this regard attracts more insurance business organizations to establish their offices in this great state simply because of the fact that they will be well accepted and supported by the citizens.

Now, as regards to life insurance quotes, these would-be clients must also be informed well regarding all the ins and outs, the black and white including the gray side of insurance policy contract or guidelines.  It would be easier however for the agents to deal with these clients simply because of the fact that they are well informed and at the same time are always ready to accept their respective offers whether it be a fire insurance, a health insurance, a house insurance, a car insurance, death and life insurance.  Name it, and they have it.  If this is the case, insurance businesses will eventually triumph in New Delhi.

Please visit official website of MAX Life Insurance for more details.

Best Reading:

• Why Car Insurance Is Must
• Dispute an Insurance Claim
• The Indemnity Principle of General Insurance
• How to Select the Right Health Insurance Policy
• Detecting Flaws in Business Insurance

As a conclusion, let me share with you some practical tips before getting the best insurance for you and your family:first is to be very conscious about your needs and wants in view of becoming insured.  This way, you will easily find the exact, perfect match for all your needs, insurance wise.  You too may consult certain experts on the matter for their valuable advice and you may also ask your relatives and trusted friends to give feedback regarding your plans of entering an investment in this and that insurance company.  This will save you from regretting in the future.  In the meantime, calling all insurance business to hurry up in establishing your offices here in this great city of New Delhi!

India has been recently hit by economic inflation due to various reasons such as the roller coaster change of prices of various primary commodities starting off with fuel.  Once the fuel’s price is affected, all the rest will eventually follow.  Therefore, you must take into account of saving for the crisis and one best way is definitely to purchase for yourself a life insurance policy.

India is one great country that offers a lot of insurance benefits for its citizens.  This is one Asian country that provides enough support to all its eligible citizens in order for them to get the suitable and best insurance policy.  When disasters or man-made calamities arrive, the government won’t find it difficult to help its citizens to recover once again in view of the disaster since they have these insurance companies at their side aiding them to start all over again if needed.  Financial supports are always available to compensate all the destroyed properties of the clients.  In moments of natural calamities, their respective insurance companies will reimburse or refund all the money or most of the portion of the expenditures they spent for damages and repair of any of their valuables or to facilitate the burial of a family member and the like.  This is truly a big help foe the victims because they will not anymore worry on what to do and find extra money for their problems.  Because of this huge benefits and big advantages, the people of Nebraska tried all their best in order to purchase for themselves at least one life insurance policy.

The majority of people of India are getting aware of the vital role of insurance policies and bear in mind that it is better to suffer a little than to suffer big in the future this wise idea should be seen and followed by most of the population in the world who prefer more to be happy go lucky than practical.  Tears won’t flow hard and pains won’t be unbearable once you know that one day when disasters come you have something to resort on and you have enough money to withdraw for all your monetary needs and expenses.  This reality attracts the Indian people towards insurance policies.  For them it is better to have a security in the long run than to enjoy life just now.  They realize the beauty and wisdom of getting a life insurance as a way of protecting their lives and valuables towards a more worthwhile, happy and truly satisfactory life.

Hence, insurance policies are very popular in every Indian city and even households, even with immigrants and those non-citizens of India.  This nationwide awareness makes insurance companies to give enough attention to their clients’ questions and queries as a way of saying thank you for their interest and enthusiastic support.  These agents will therefore not think of abusing their clients because in the first place they knew very well that these clients are serious and generous enough thus they don’t deserve to be victimized of any form of abuse whatsoever.

Best Reading:

• Why Car Insurance Is Must
• Dispute an Insurance Claim

As a conclusion, among the tips that may help these people of India include the careful searching of the best and possibly the most affordable quotes from among these insurance agencies.  These insurances will become more and more generous too in giving the best products and services for their clients simply because of the fact that they are welcomed well by these buyers from the whole of India.  It is therefore important to note that these clients should never be in a hurry of buying an insurance policy since there a lot of companies who are willing to give them their specific and special needs.  Clients must compare and contrast one quote from the other, in this way he or she can be sure that he or she is getting the best quote possible in the insurance market.

Life insurance is one of the most bought policies among the citizens of India.  In fact, because of this successful reality, the government of India supports very much these insurance agencies knowing that these agencies will be a helping hand in times of calamities and disasters for its millions of citizens.Here is the list of the top 10 insurance companies in the entire Indian nation:

List of top insurance companies
Following are some of the top 10  insurance companies in India.

• Life Insurance Corporation of India- The Life Insurance Corporation of India (LIC) is undoubtedly India’s largest life insurance company. Fully owned by government, LIC is also the largest investor of the country. LIC has an estimated asset of Rs. 8 Trillion. It also funds almost 24.6% of the expenses of Government of India.
  Established in 1956 and headquartered in Mumbai, Life Insurance Corporation of India has 8 zonal offices, 100 divisional offices, 2,048 branch offices and a vast network of 10,02,149 agents spread across the country.
  Please visit official website of LIC for more details.
• Tata AIG Insurance Solutions- Tata AIG Insurance Solutions, one of the leading insurance providers in India, started its operation on April 1, 2001. A joint venture between Tata Group (74% stake) and American International Group, Inc. (AIG) (26% stake), Tata AIG Insurance Solutions has two different units for life insurance and general insurance. The life insurance unit is known as Tata AIG Life Insurance Company Limited, whereas the general insurance unit is known as Tata AIG General Insurance Company Limited.
  Please visit official website of Tata AIG for more details.
• AVIVA Life Insurance - AVIVA Life Insurance, one of the popular insurance companies in India, is a joint venture between the renowned business group, Dabur and the largest insurance group in the UK, Aviva plc. AVIVA Life Insurance has an extensive network of 208 branches and about 40 Bancassurance partnerships, spread across 3,000 cities and towns across the country. There are more than 30,000 Financial Planning Advisers (FPAs) working for AVIAV Life Insurance. It offers various plans like Child, Retirement, Health, Savings, Protection and Rural.
  Please visit official website of AVIVA India for more details.
• MetLife Insurance - MetLife India Insurance Company Limited is another popular player in Indian insurance sector. A joint venture between the Jammu and Kashmir Bank, M. Pallonji and Co. Private Limited and other private investors and MetLife International Holdings, Inc., MetLife Insurance offers a wide range of financial solutions to its customers including Met Suraksha, Met Suraksha TROP, Met Mortgage Protector and Met SurakshaPlus etc. It has its branches situated over 600 locations across the country. More than 50,000 Financial Advisors work for MetLife.
  Please visit official website of MetLife for more details.
• ING Vysya Life Insurance - ING Vysya Life Insurance entered into the Indian insurance industry in September 2001. A joint venture between ING Group, Ambuja Cements, Exide Industries and Enam Group, ING Vysya Life Insurance uses its two channels, viz. the Alternate Channel and the Tied Agency Force to distribute its products. The first channel has branches in 234 cities across the country and has got 366 sales teams. On the other hand, the later one has more than 60,000 advisors. Currently, ING Vysya Life Insurance has tie ups with more than 200 cooperative banks.
  Please visit official website of ING life for more details.
• Birla Sun Life Financial Services - Birla Sun Life Financial Services is a joint venture between Aditya Birla Group and Sun Life Financial Inc, Canada. It has got an extensive network of more than 600 branches. More than 1,75,000 empanelled advisors work for Birla Sun Life, which currently covers over 2 million lives.
  Please visit official website of Birla Sun Life for more details.
• MAX New York Life - Max New York Life Insurance Company Ltd. is one of the top insurance companies in India. A joint venture between Max India Limited and New York Life International (a part of the Fortune 100 company – New York Life), Max New York Life Insurance Company Ltd. started its operation in April 2001. It currently has around 715 offices located in 389 cities across the country. It also has around 75,832 agent advisors. Max New York Life offers 39 products, which cover both, life and health insurance.
  Please visit official website of MAX New york Life for more details.
• Reliance Life-This famous insurance company is actually based in India and it offers the best plans for Life Insurance in the whole of India. Moreover, it is interesting to note that Reliance Capital Limited’s associate company is Reliance Life which is one of the leading private sectors in India. This business institution provides also the Protection Plans,Child Plans,Retirement Plans and Investment plans and is also the ultimate solver of solutions for Groups and Individuals.
  Please visit official website of Reliance Life for more details.
• Bajaj Allianz - Bajaj Allianz is a joint venture between Bajaj Finserv Limited and Allianz SE, where Bajaj Finserv Limited holds 74% of the stake, whereas Allianz SE holds the rest 26% stake. Bajaj Allianz has been rated iAAA by ICRA for its ability to pay claims. The company also achieved a growth of 11% with a premium income of Rs. 2866 crore as on March 31, 2009.
  Please visit official website of Bajaj Allianz for more details.
• Bharti AXA Life Insurance - Bharti AXA Life Insurance, one of the top insurance companies in India, is a joint venture between Bharti group and world leader AXA. Bharti holds 74% stakes, whereas AXA holds the rest of 26%. Bharti AXA has its branches located in 12 states across the country. It offers a range of individual, group and health plans for its customers. Currently more than 8000 employees work for Bharti AXA Life Insurance.
  Please visit official website of Bharti AXA for more details.

These top life insurance companies of India are primarily guided by a department agency so that there will be more transparency in between the clients and the providers.  The quotes from these insurance agencies either online or from their respective offices are also under the watch of the department so as to ensure proper and appropriate charges to the clients.  This is something very ideal and other countries should follow this same practice of establishing a department that will take care of all the laws and guidelines for all these insurance matters.

Best Reading:

• Types of General Insurance
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• The Indemnity Principle of General Insurance
• How to Select the Right Health Insurance Policy

In conclusion, there is no doubt that the Mission Statement of these insurance companies is basically to promote safety and security of all the lives of the Indian citizenry.  Making it as one of the most important needs for each and every individual citizen is also part of their mission.  These particular top 10 insurances companies also ensure that the welfare of the clients is taken into serious account most especially when it comes to the benefits and affordability.

Do you have a life insurance already? Is your life and those of your family members are secured or protected?  How about your Car?  Your house, real estate and other valuable properties?Life insurance these days are not anymore a luxury or the need of rich and business people. In fact majority of ordinary people are getting one for themselves and their loved ones to face the hassles and challenges of tomorrow’s unexpected turn of events.  The majority of smart and practical people or citizens of the first world countries are one big example. These people are focused in view of anything or everything they do for themselves and their loved ones.  They are smart enough to do all that needs to be done to its maximum level. If they eat they really eat well, if they drink they get really drunk and if they get insurance they see to it that they will get the most out of which. Hence, doing so will not only give them the guarantee of living their lives to the fullest but also having a less-worry future in view.  No wonder they belong to the first world countries!

With the advent and dynamic development of technology especially the internet, finding the best life insurance quote for the people of the first world countries seem easy as a bee.  It’s basically one click away before you get the best suitable life insurance that is tailored-fit to all your needs and those of your family.  In fact a lot of independent life insurance companies mushroomed in these countries to address the great demands of people looking for the best insurance for their lives. Insurance experts however said that not all of these insurers can be trusted thus clients and would-be insurers should see to it that the quotes that they are looking are valid verified and have no hidden charges.

It is indeed a fact that these insurance providers in the first world countries are offering quite expensive quotes as anywhere in the world.  Because of tight competition in USA and European continent, other various life insurance companies emerged and made these prices more affordable and better package wise, thanks to the reality of competition.

One of the most consulted or sought after associated life insurance state agency in the whole world in particular in the USA, is the Wholesale Insurance company.  In this company, your hard earned dollar will surely get the most out of each.  Their life insurance quotes can easily be viewed and downloaded from the internet through their website and office address:Associates Insurance Agency, Inc.    Phone: 813-988-1234 813-988-1234   Fax: 813-988-0989; 11308 N. 53rd Street, Temple Terrace, FL  33687, Email: mail@associatesins.com or Web: associatesins.com

Best Reading:

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• How to Select the Right Health Insurance Policy
• Give yourself the annual premium advantage
• The Indemnity Principle of General Insurance

In conclusion, these are some of the few ways on how to save from life insurance.  First, you must be very critical in choosing the best company or life insurance provided.  This will surely prevent you and your loved ones from future regrets most especially when it comes to penalties, hidden charges and other incurred payments.  Secondly, choose the company which has a reputable and credible history of service.  This will assure you that you are in good hands, otherwise if you will choose a provider which is new yet very cheap, the big possible problem that may occur one day, is perhaps a possible closure since it is new in the business.  This will be a big loss just in case because your investment may not be returned.  Lastly, choose the insurance company that is recommended by your trusted set of advisers or friends who are also investing life insurance from that particular company, this way you will surely be safe as well.

Have you bought lately a personal insurance which is currently taking a portion of your wage or income?  Well, the following tips will guide you in view of this form of investment:

1. Split your Term Insurance: The first you should do is to split your Term Insurance for two reasons. Top most reason is flexibility in decreasing the cover later. So in case you need cover of 60 lacs , you can divide the cover into 30:30 or 20:40 and then in future whenever you need that your insurance requirement has gone down , you can just stop one of the policy . The second reason is that your risk of claim decline from insurance company goes down, but this is a secondary reason thus not that really important.

2. Invest in Tax Saving Products for long term goals: A lot of the people still invest in tax saving funds for their shot term financial goals. The fact that the money invested there will get locked for long term should be taken in positive way and hence you should invest in these for your Long term goals, so that you don’t feel bad about the lock in period because you anyways need money after many years for those goals. For example Child Education, Retirement, Holidays  abroad after many years.

For short term goals like buying , saving for some short term commitment should not be taken care by Tax saving Instruments , You should use Fixed Deposit , Fixed Maturity Plans , Debt Funds , Balanced funds and Non Tax saving Equity Funds (Risky) for Short term goals . Once you think like this, the lock in period will not matter to you at all.

3. Use Top up’s in ULIP’s to minimize Cost: In view of those investors who are going to buy ULIP’s or using ULIP’s for their long term goals, should use Top up facility in ULIP to minimize the cost. The Allocation charges are generally linked to the regular premium your pay and not the Top up’s.

So if you are investing 60,000 per year as premium you should rather take a 20,000 policy and top up your policy with 40,000. This way you will save charges on top up money. You can decrease your cost (charges) by anywhere from 50% – 75% using Top ups.

4. Investing in GOLD ETF’s instead of physical GOLD: Common question asked to investors is this: Why do you want to invest in physical gold? The biggest reason is for your daughter’s wedding and simply for jewelry, But the underlying reason always is capital appreciation.

So why not always invest in gold ETF’s [ Understand what is ETF ] and whenever you need Physical gold , sell the ETF’s , take the money and buy the physical gold at that time. Most of the people invest in gold physically for your daughter’s education, But the better way would be to invest in ETF’s and when time comes you buy the physical gold by selling the ETF’s. That is a better way because it’s more flexible, safe and easy route.

5. Use your LTA, HRA and Medical Reimbursement: I wonder and am awed to see that many salaried employees especially youngsters do not care to take the benefit of LTA, medical reimbursements and HRA, just because of being lazy. So make sure you take advantages of these benefits, even if you partly use these things you will save couple of thousands in tax. All you have to do is, save the bills, take the xerox and walk couple of steps to your Finance department and submit them, don’t you think it’s worth if it can save you couple of thousands in tax saving.

6. Control your Credit taking Habit: Most of the people take debt more than they can actually afford to pay. One criterion for giving credit is mainly how much you earn. The company never knows your expenses and your future goals, your risk appetite and your future plans.  People tend to buy things which they actually don’t need.  This can have ill-effects later in your life. Thus,  watch out your credit taking behavior . Don’t over-do it.

7. Don’t Over monitor your Portfolio: Stop checking your portfolio.But sometimes you may look at your shares, mutual funds, ULIP’s and the like. But overdoing it can be fatal sometimes. Some of us have this obsession of watching our shares, mutual funds NAV and ULIP’s NAV on daily or may be weekly basis.

See how much time you should invest in Personal Finance. This is not a good sign for long term investing especially for people like us who are into regular jobs and have no much time to contribute in your Finances. When you are a long term investor, why keep track of short term movements, these moves will have no much value in your all growth and short term movements will affect you mentally and tempt you take decisions in short term because your money is either going up or down fast.

More of anything is bad and the same thing is true for your involvement. Couple of hours per month or every quarter is good enough. Don’t get a feeling that successful financial life means more action.

8. Share your Financials with Family: What if you are dead in another 1 hour, do you think your family will be able to find out all your investments and Insurance documents and successfully claim them?  Are they unaware of the fact that you took a huge Insurance cover for them or you invested 50,000 in a ULIP last month.

Most of us graduate from novice investors to a good investor but still are left behind in taking care of this extremely critical point of sharing each and every details of our finances and making sure that the documents are within reach . Let your wife, children have a good idea of where the documents are and where your investments are, have xerox copies of every document and have them at 2-3 different places and make sure people know about them. Emotional pain of losing someone and no idea of the finances which will take care of them is a kind of  situation you never want you loved ones to be into.

9. Don’t compare your returns with others: Indeed, you are different, be proud of this fact. If your returns are less than your friend mutual funds, that’s fine. Don’t compare yourself with others, there are many things which determines what you get in life like knowledge, luck, skills, timing and others.

So just make sure that you are getting what you try for. Don’t lose focus from your goals, your main aim in life is to achieve your financial goals easily and smoothly , Financial Planning is a race where everyone who reaches their personal target is winner, Make sure you don’t hurt yourself by competing with others .

10. Investigate everything before you buy it: Before, you buy something, make sure you try to get information on Internet, ask on forums at different websites and make sure you find out maximum about thing product you are buying.

Spending 30 minutes investigating your product can save you from lot of trouble. One person I know recently took a home loan from HDFC and went for additional Life over from same bank for 30 lacs. He didn’t investigate much about the cost.

Best Reading:

• Types of General Insurance
• Ways or tips for smarter insurance planning

As a conclusion, getting a personal insurance will be truly beneficial not only to you and your family but also your loved ones whom you will be leaving behind ones you pass away.  Therefore, try your best to apply these great tips in investing with personal insurance so as to have a worth-living life now and in the future.

With various medical breakthroughs, our lives moved higher and into better levels.  Life span now has been added with extra 10-15 years thanks to the various medical discoveries prolonging life itself.  This reality however has a disadvantage precisely when one’s life has been retained and the person needs more than the budget’s medical attentions.

Are you then surprised?  Most often than not, in case of death of a person, the expenses are for the remaining family only. But in case a person survives say, a massive heart attack or paralysis, the expenses zoom. This includes the day-to-day expenses of the family as well as the medical expenses of the patient, which can be very high.  Then there is therefore a need to exercise being practical.

It is interesting to note that the hospitalization expenses can obviously be taken care of by the mediclaim policy bought by the insured, but in case of critical illnesses like the above, the costs after hospitalization could also be huge.  What then shall you do in this regard?

Well, not only that, the cost of medicines and diagnostic tests 60 days after hospitalization is normally not included in mediclaim policies. Sometimes, these costs can be high enough to make a huge damage to finances. Also, the income normally stops or is significantly reduced when the main wage earner is affected. Thus it is a double whammy of troubles.  But there is no reason to loss hope nor give up.

In addition, in a recent article, we read that India may soon become the heart attack capital of the world. What was also stated is that with major improvements in medical infrastructure, most of us will survive the heart attack. It is to address the needs of such a person that critical illness policy is required. This pays you lumpsum money if you contract the specified critical illnesses such as organ failure, stroke, paralytic attack, multiple sclerosis, etc.  At least this would be a relieve.

Moreover, you must take note that, this lumpsum enables you to earn income by investing it in any appropriate instrument so that interest from it can act as a substitute to the income lost due to the illness. That is why such policies are part of what are broadly known as income-protection plans. Typically, your critical illness cover should be at least as much as your life insurance cover.

Hence, a critical illness policy can be bought in two forms — either as a rider to a life insurance plan or a standalone policy from a general insurance company.

Now what is a rider? Well, a rider is anything bought along with a normal life insurance plan, on payment of extra premium. This is the best way of getting critical illness cover if you are also simultaneously buying term cover, as the premium for the rider normally remains constant over the tenure of the policy. However, depending on your case, you may or may not be able to buy adequate cover in this manner.

Obviously, that’s because guidelines restrict the premium payable on such a rider to maximum 100% of the base term insurance premium (30% of the base premium if you are buying the rider on top of a traditional policy or Ulip). As critical illness cover is expensive, this results in the rider being for a fraction of the sum assured. This can result in inadequate coverage.  If this will eventually happen, the patient or victim and his or her family will definitely be in critical condition, financially wise.

Furthermore, you need to buy the rider at the time you buy the term policy, since no life insurance company allows riders to be attached in later years. Thus, if you have already bought a life insurance policy, or find that the rider does not provide adequate coverage, you will have to buy a standalone critical illness policy. These are yearly policies, and need to be renewed every year.  This will make the difference therefore.

Finally, perhaps, if the guideline restricting the rider premium to 100% of the base term insurance premium is relaxed, some life insurers may start offering critical illness riders for higher amounts as well. This will help all cover yourself appropriately in case of a critical illness strikes.

Best Reading:

• The Indemnity Principle of General Insurance
• How to Select the Right Health Insurance Policy

In conclusion, each and every individual person in the family should therefore be insured with any of the various life insurance policy because of the obvious fact that in the future insurance policies will definitely serve well most especially in moments of emergencies.  This should teach a lesson to each and every family who do not give enough priority in view of getting a life insurance while it is still early.  Thus, let us not waste time before it’s too late.

Today let me share with you another facet of financial matters.  In law and economics, general insurance is defined as a form of risk management basically used to hedge against the risk of a contingent, uncertain loss. General insurance is also defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is an institution or a company selling the insurance; an insured or policyholder is the person or entity who is buying the insurance policy. The general insurance rate is a factor used to determine the amount to be charged for a particular amount of insurance coverage, called the premium. Risk management, the practice of appraising and controlling risk, has come out as a discrete field of study and practice.

The transaction involves the clients assuming a guaranteed and known relatively very small loss in the form of money or payment to the insurer in exchange for the insurer’s promise to indemnify the insured in the case of a large, possibly bad loss. The insured receives a contract which is called the insurance policy that details the conditions and circumstances under which the insured will be compensated or indemnified.

These are the common types of general insurance:

• Home Insurance: Houses, lands and other real estate properties and hard assets are subject to accidental risks like theft, damage, destruction due to natural disasters or fire accidents etc. with such large investments gone into buying a real estate property like your home or office, the problem or risk involved is a loss of large amount of money.Home and property insurance protects you in managing and protecting against these risks. The cost of a real estate property and its monetary insurance is mostly based on the value of the already insured hard assets and also the place or location in which the assets are situated.
• Travel Insurance: This is intended to shoulder or cover any of the financial or any other losses which were basically incurred by the insured while on his journey or traveling, be it nationally or internationally, such as mountain trekkers, cruise travelers or simply as a tourist.
• Auto Insurance: Any vehicle on the road, no matter how safe it is driver is, some times bound to meet with an accident or two, which may leave it with just a few scratches, or crash it up totally. Most countries today require or obliged you to have an auto insurance while on road in your vehicles.If you have an accidental auto crash, a total repair could cost you a lot or a fortune. On the other hand, a little scratch on your Land Cruiser may also soar up your bills to a high level.Whether or not you want or need auto insurance mostly depends on the type of automobile you own.If you have an expensive car and a little repair could worry you out financially, you should therefore decide in buying an all-inclusive and crash insurance which will protect you against any and every harm done to your vehicle.
• Health Insurance: Whether you like it or not, almost always we face certain health challenges that may cause us a lot through medicines, hospitalization bills and other related expenditures.  If we will not be smart and ready enough with this kind of cases then we will surely find it so hard to face sickness and other form of health problems such as therapy and many other treatments such as antibiotics treatment.
• Fire insurance: Fire is one truly big problem that may endanger our valuables, properties and even businesses.  Worse it may threaten our lives and those of or loved ones.  Well this would not be very hard unless we are ready to face such calamity with fire insurance.  This will help us become more secured and ready to face fire cases

Best Reading:

• Why Car Insurance Is Must
• Dispute an Insurance Claim
• The Indemnity Principle of General Insurance
• How to Select the Right Health Insurance Policy
• Detecting Flaws in Business Insurance

In conclusion, we must be very practical and smart these days.  In order to really live well and make the most out of our lives, we must invest with general insurances.  This way we will be always safe from all forms of challenges and calamities in view of our properties, lives and the lives of our loved ones.