Single Premium Life Insurance Policy

In today’s world everyone is aware of the challenges and unforeseen situations that can manifest anytime, anywhere. Even though you’re cautious and aware of the pitfalls of modern life, insuring yourself against these dangers is a sensible thing to do. This is where it makes sense to avail the benefit of a life insurance policy as it buffers you against disabilities and also takes care of your family in the event of your death. Now, imagine a scenario where you are saved the hassle of coughing up a designated premium year after year for a life insurance policy. Instead, what if all this can be achieved in a single stroke without any worry? It is definitely possible with a single premium life insurance policy as it’s your best bet.

This type of policy is good for those who can pay a lumpsum in a single stroke. Like conventional life insurance policies, this policy too provides a security umbrella to the policy holder until the full policy term. This type of life insurance policy is gaining popularity because of the ease of purchase, and also ease of operation. It has been found that affluent urban groups are now preferring this policy for just these reasons.

Benefits of single premium life insurance

·         A tax benefit is provided in this type of policy on the premium paid which is applicable under section 80C.  This is applicable if the premium amount is at least 20% of the sum assured or if the sum assured is at least 5 times the premium.

·         You don’t have to worry about your policy getting lapsed.

·         In case you need to avail of a loan facility, this can come in handy and can be used as collateral against your loan. 

·         Peace of mind as you don’t have to set aside any money from your yearly spend for annual premium.

·         This type of policy is best for those professionals who are at the peak of their productivity and can afford to pay the premium in a single stroke.

·         For a frequent traveler, this is a blessing in disguise as he doesn’t have to worry about paying his yearly premium on a fixed period.

·         If you have a high salary then you can opt for a higher premium.

·         If you’re unsure about your future earning potential, then go for this policy.

·         In case a critical illness or if disability strikes the policy holder, even then his family is taken care of.

·         The accidental death clause also takes care of the family.

Buying this policy via an online aggregator makes more sense rather than following the traditional route of contacting an agent for this type of policy. This has multiple benefits as it proves to be not only cost-effective, but saves time and can be done from the convenience of your home or office. It is also a transparent process. You also have the additional advantage of comparing premium quotes and other factors like special benefits and sops. What you must watch out for are riders.

Insurance Policies That Provide A Security Umbrella During Natural Catastrophes

Acts of nature like earthquakes, floods and fire outbreaks in forested areas can happen anytime, anywhere. These not only cause considerable damage to property and life, but the consequent losses can also wreak havoc with your finances. It’s always a good thing to be prepared for the unexpected while creating the best security umbrella for yourself and your family. Therefore, it’s best to opt for certain types of insurances that will safeguard you and your finances, in the best possible way. This
blog explores four types of policies that can help you deal with catastrophic situations in a better way.

Property insurance

When a disaster strikes, besides life there can be irreversible damage caused to one’s property like a home/office/factory/shop etc. The disaster can include accidents like a sudden outbreak of fire, flood, cyclone and any other disaster. Here, a certain premium is paid to cover losses that arise owing to catastrophes. This type of cover also includes sub-categories which attempt to maximize the cover for any risk or danger that may arise to your property. These include:

A Fire Policy: This cover extends to places of worship, homes, offices, businesses etc. The best part is that property insurance also covers what are known as Acts of God, e.g. landslides, floods, cyclones, hurricanes, storms, earthquakes, etc.

Umbrella Policies: Essentially, these are add on covers that give an extra buffer in times of need. The good news is that these policies can be clubbed in a single document, saving you extra paperwork and time. Umbrella policies include shopkeeper’s policy, office package policy, building insurance, householder’s policy.

Hydrostatic Lock Cover

While taking their car insurance, most people don’t know about a very useful add-on cover called “hydrostatic lock cover”. This add-on is especially useful in flood and water logging prone areas, where it can literally keep you afloat. This policy takes care of additional expenses like engine and also takes into account full replacement of engine and other parts, if the need arises.

Whether your car is parked in a waterlogged area or passing through a deluge, water will enter your car. Never turn the key in the ignition because it can lead to engine breakdown and damage not only to one or two parts but the entire electrical circuit. They might need replacement and this could escalate expenses.

Personal accident cover & life insurance policy

During the time of an earthquake, cyclone, flood or any other calamity a temporary or permanent disability or even loss of life can impact your family severely. If you have a personal accident cover and a life insurance policy then, most of your problems that may arise because of these disasters, may be sorted. A personal accident cover offers you financial aid in times of a disability which may be temporary or permanent. Depending upon the type of policy you opt for, a life insurance cover will also take care of the policy holder’s family in case of his demise, by offering a lump sum amount.

Because a catastrophe can happen anytime, its best to always stay protected against the unfortunate consequences of such events. It’s a good idea to compare your options online before taking a policy so that you can weigh the pros and cons before making a decision.

How Technology Is Changing The Future Of Insurance

Like everything else, over the years insurance 

sector has undergone a paradigm shift and a metamorphosis from its original avatar. Today, technology has bridged the gap between an insurance company and the insured via digital revolution where online aggregators have made the insurance sector more transparent, accessible and easy to understand. But the march of technology will not end here. As there are continued advancements in this field, it is but obvious that the insurance sector too will be impacted by changing technology and its demands. This blog explores that aspect.

The first and foremost impact which is already manifesting itself is the digital revolution which has led insurance companies to interact and deal directly with their customers, rather than  go down the traditional route of interfacing via middlemen. The emergence of online aggregators is already proof of that fact. Thanks to technology, insurance business is now more accessible and it is convenient to buy a policy at just the click of a button. What’s more is that the prospective customer has the advantage of comparing the pros and cons of each policy along with sizing up which premiums are low and suit his budget the best.

The other most impactful change is that insurers are now offering mobile applications which are helpful in reporting claims and accessing information. For example if a car is involved in an accident, the car owner can now immediately transmit the accident picture live, thereby speeding up the process of filing the claim in a big way. This could well be a common scenario, for the future.

Thanks to major advances in software and hardware, insurance companies are now witnessing a major surge in data collection that is translating into higher business returns. For instance, the process of underwriting, which depends on individual risk assessment which sets the premium pricing is impacted in a big way. Now, customer data is providing actionable insights resulting in improving the customer experience.

One of the most interesting trends unfolding itself in the insurance sector is probably the rewriting of some traditional insurance methods. Take the concept of self-driven cars.The question is when cars are in a futuristic scenario where most of the functioning is based on software that works on certain formulae and algorithms, if something goes wrong who will be held responsible? Will the car manufacturer take responsibility or will the onus rest on the shoulders of the person driving the car? The insurance industry, software companies and the car manufacturers will have a lot to think about and consider. The other aspect of auto driven cars is that the number of accidents and cases of drunken driving will reduce drastically. Severity of accidents is also expected to reduce in this scenario thereby bringing down insurance costs. But natural factors like cars being damaged due to floods, cyclone, earthquakes and other calamities could still be a risk to auto driven cars. These factors could potentially impact the underwriting business and usher in technology driven and related changes.

Protecting The Future Of A Growing Family

When 25-year-old Vivek Jain got his first job, buying an insurance policy was the last thing on his mind. A few years later, his younger brother was detected with cancer while his father was to undergo a major cardiac surgery. Jain’s group insurance cover was limited and he had had no option but to break into his savings. Though his family survived the crisis, he had another problem at hand. The money he had been setting aside for his child’s education was used up paying hospital bills. At this point, Jain realized his greatest folly: Had he insured himself and his family today, he would not be debt ridden and on the edge of financial ruin.

Unforeseen mishaps and challenges do not come announced. It’s always safer to invest in certain life insurance policies that will hold you in good stead. Whether you’re a young or a mid career professional, you need to invest in health and life insurance policies along with a solid child plan to meet the needs of your growing family. What you must know is that all these policies give you a tax benefit.

As the term suggests, a life insurance policy is a cover where you pay fixed premiums to an insurance company that provides compensation to your family in case of your death or loss of livelihood.  In the current scenario, there are three types of policies available which you can choose depending upon your requirement and financial planning.

The first type, a Term Insurance policy essentially provides compensation to the family of a policy holder in case of his death. This compensation, also known as the death benefit is given as a lumpsum amount. On the other hand, Unit-linked Investment Policies (ULIP) have the dual benefit of being an investment and insurance, while Money Back Insurance policy  gives the policy holder money back after a fixed time.  The policy holder can either reinvest this money or use it for other purposes. The third type of policy—pensions or annuities are used to create a retirement corpus where you’re required to affix an age for retirement and earn benefits based on that premise.

All of these policies will not only give you peace of mind for yourself and your family, but will also prevent any financial battering in the face of unforeseen mishaps.

Though you and your elderly parents may be covered under a group health insurancecover provided your employer,  it may not be enough. This type of cover usually has limited compensation like Rs 2-3 lakh. In case your ailing parent has undergone a major surgery or has incurred high hospital bills, finances may be impacted. However, if you have bought your parents a health cover, then all additional expenses that your group medical cover could not take into account, will be taken care of. Many insurers have policies that offer coverage to parents/ senior citizens aged between 60-80 years. Always go for a policy where the sum assured is high and offers maximum coverage in terms of serious illness and even if they have a history of pre-existing diseases. 

Your third must-have policy is a child plan. This is more an investment for your child’s future than an insurance cover. The prime objective of life insurance is to protect the financial interest of the surviving members of the policyholder’s family in the event of the death of policyholder. Since children have no income of their own, most plans dedicated to them are essentially saving plans with a layer of protection in the event of parent’s death so that there is no disruption in their education and provide for other basic needs of the life.