If you are concerned about company’s goodwill and claim settlement ratio, its doing good. But if you are doubtful for any other reasons the answer is below.
When we buy a T. V., the best TV would be best for all irrespective of the buyers conditions. But insurance is different. Even if you buy most expensive one, the best plan is based on your specific needs. Like if you have any pre-existing illness, you will have to consider the plan with lowest waiting period under pre-existing illness. Similarly if you are looking for a maternity cover, you have to look for a plan with a good maternity cover.
You can reach us at ethika.co.in for exploring on which plan would suit you best.
Its always good to have a retail health policy running side by side. However portability of your group policy (including dependents) to retail policy is also allowed. Initially you have to port with same insurer. This will help you to get benefit on waiting periods by considering the continuous coverage in group policy. You should inform the insurer at least 5 days before leaving the organization. Upon fresh underwriting and payment of full premium, policy would be issued.
A fresh underwriting is done & Insurer is not bound to give you retail cover.
This is why, always take up a retail policy, especially for parents because after a certain age, you cannot get a fresh health insurance policy in regular plans. But you have option to renew it lifelong.
The core difference is, term insurance is to help -if you die, where as health insurance is to help you live long.
Term insurance is for securing your family from financial crisis, if you die.
Health insurance is to secure you and your family from financial crisis if either you or any of your family member is hospitalized.
Both are very important to have. Instead of choosing one out of these 2, I suggest you to go for a super top up policy for health insurance and go for a plain term insurance atleast to a minimum of 50 Lakhs Sum Insured.
You can reach us at ethika.co.in. for any help in selecting right product for lowest premium.
Double insurance could be a duplication of cover. For example, you have a health insurance covering cataract disease in your retail health insurance and as well as in your corporate group mediclaim. Its upto you, from which insurance you want to claim as there is double cover for the same risk. Here the insured is insuring his risk with two different insurance companies. The contract is between insured and the insurance company in both the policies.
Where as, in Reinsurance, Insurance companies will insure their risk with Reinsurance companies to protect themselves from catastrophhic loss. Here the contract is between insurance company and reinsurance company.
The Good News is, IRDA has given relaxation of 30 days in addition to the grace period of 30 days in the policy, for the payment of life insurance and health insurance premiums falling due during the lockdown time.
So, Your policy will not be lapsed. However, claims falling due after the expiry are not considerable till the payment of renewal premium.
Hence I recommend you to pay the premiums online and keep a continued cover. Don’t allow lockdown to lock your insurance cover as well.
You would be anyway paying the premium for all 12 months starting from the last year expiry date. So better have it in active mode.
IRDA has also given relaxation under motor insurance for the vehicles insured for only TP Liability to pay the premiums til April 21st. For motor cover, the risk is also assumed as covered by insurers.
I guess you mean to ask “taking a term life cover till you reach the age of 80”.
I would say, it is a smart thought and good that you started in age of 20’s. Because the premium will be low and same through out the life.
The good policies in market are also giving cover till the age of 85 years if you wish to opt for. There is not much difference in premium for the 5 extended years but high probability of claim.
I don’t recommend you to go for any other additional covers like return of premium policies etc. You would be getting higher returns in bank FD’s for the extra premium you are paying.
As we know, motor premium is of 2 types. One is Third Party liability cover which is compulsory by law and the other is Own Damage cover.
TP liability premium cannot be touched for any discounts by any insurer. It’s not even dependent on the age or IDV ( value of vehicle). Its purely calculated on the basis of vehicle’s Cubic capacity.
The other half of your motor premium is Own Damage.
The best way to lower your premium is to never lose on your NCB (No Claim Discount). You can save on your vehicle premium in following ways.
You should be conscious to track the other vehicle(if any) causing damage to you or your vehicle. Because you can claim under this other vehicle’s third party liability. Your claim is also paid and your policy is also saved with remark of claim.
Make a claim under motor insurance only if the claim amount is greater than sum of deductible and eligible NCB in next renewal premium.
Considering today’s situation, we are not sure when we will be able to take back our vehicles on the roads and how frequent. So the risk of accidental claim is very low. Don't go for nil depreciation etc. Try have plain own damage cover as much as possible.
Go for lowest possible IDV. A maximum of 15% depreciation is acceptable when compared to IDV in expiring policy. If anyone promises you lower than this, you may face problems during claims.
Opt for return to invoice cover. This will nullify your impact if putting a lower IDV in case of total loss. This cover will help you get the claim based on the today’s value of the same new vehicle.
The best health plan for anybody would be,
having a regular standard health policy upto a sum insured of 5 Lakhs and a Super top up policy with 5 lakhs deductible & a sum insured of 50 Lakhs. Deducrible is the amount under a claim upto which insurer is not liable to pay.
Lets say, you have claim of Rs 18 Lakhs during the policy year. Then leaving the first 5 Lakh, next 13 lakhs are payable under your super top up policy.
And the first 5 Lakhs can be paid from your regular health policy.
The speciality of Super Top up policy is, due to this high deductible amounts, the premiums will be very very low when compared to other regular health covers available in market.
You can select your desired Sum Insured and Deductible amount from various options available with insurers.
You have to make sure that there is no room rent capping or no co-pay involved in the plans you opt for.
If I have to suggest,
A person who has no pre-existing illness and not looking for maternity cover, can buy a base policy from Godigit insurance company for 5 Lakhs sum insured. And a Super top up policy from Liberty insurance for 5 Lakhs Ded, upto 50 Lakhs Sum insured.
Godigit is offering lowest premium for a comprehensive coverage in a standard Health insurance cover.
Liberty is offering lowest premium under a Super top up cover. Liberty Supra is the plan name.
For the people who needs maternity benefit, or has any pre-existing illness or have some health cover in any way, can reach us for a customized solution at below mentioned address.
Any standard health insurance policy you have covers the cost of surgeon’s fee, of course the extent of payable amount is as per the terms and conditions of the policy.
Further, the claim should be admissible based on the waiting periods under the policy and other terms & conditions.
You can reach out us at Best Insurance Brokers in India | Ethika Insurance Broking Pvt Ltd | India for any specific insurance needs or queries.
Life Insurance is something where insured is never a beneficiary. The life insurance contract is between the person whose life is supposed to be insured and the insurance company. Hence you can insure only your own life and not anybody else’s life. If you wish to take life insurance for your parents as well, the application has to signed by your parents only. You can only pay the premiums on their behalf and be the nominee for benefits with their consent.
One of the fundamental Principles of insurance is Insurable Interest. This principle specifies the need of having an insurable interest in the life or property being insured. That is, you can insure only those things upon losing which, you will incur a financial loss.
Generally health insurance offered by employer will be a group insurance. This group cover has multiple benefits over a retail health policy. If you will not be able to afford the premium for this, how will you manage in case of sudden health contingency to you or your family?
Hence cut down your some other expense and make budget to have this cover.
Today’s healthcare costs are rising upto 50 Lakhs in case of any critical illness. The diseases on the other hand are increasing in both frequency and severity.
Health insurance is unimportant to those who has ready cash available for any hospitalization costing upto 50 lakhs. However, it will take time till you liquidate some amount and get it to hospital for depositing to start the treatment. A person with health insurance can directly go to the best of the hospital and get the treatment started on cashless basis.
Another interesting fact about health insurance is -
Most of us end up having a health cover of 3 to 5 Lakhs sum insured.
If we are admitted to hospital for dengue, jaundice or an such non-critical illness - the max medical expense you would get is below INR 30,000/-. But we have more than 10 times of this cover.
On the other hand, God forbid, if we are diagnosed with some critical illness the medical expense would rise upto 30 Lakhs. But we have 10 ties lesser sum Insured.
This shows that we are either over insured or under insured for our needs.
Its not only important to have health insurance, it also important to have adequate health insurance.
Most of the insurance forms which are popular in India is either because of rewards or penalty by Govt. and not with the intention of financial security.
At personal level,
At industrial level,
At Corporate level,
Motor insurance cover has 2 parts.
Third Party Liability (TP)
Own Damage (OD)
If you are planning to go for only Third Party Liability cover, the premium will be same from which ever insurance company you buy and hence you can have to only review the service part of the insurance company while buying insurance.
If you wish to have OD cover as well, then the below items you can consider to select a good insurance deal.
Network Service centers in case of claiming repairs.
Service of the insurance company
Lowest premium for maximum coverage
Now let me tell you some tips on how to find out which company can give good service.
Check reviews on google: Check what people say about their experiences with the company. You should also keep in mind, service might differ from branch to branch.
Check Glassdoor: Look for what employees of that insurance company say to get the inner picture of the company. If they treat their employees good, have good management, only that company can give you good service.
Latest News about the company: Follow the news related to the insurer you wish to choose.
Since its a bike insurance which is a 1 year contract, their is no need of more review than above. If it was a case of life insurance, you should still review more on the performance and solvency of the company.Well if you need an easier path than going through above steps to get end-to-end support for your bike insurance, contact to a broker and let them do this task for you. They will have the subject expertise and deal with insurers everyday. They act as insured’s representative from getting quote, policy issuance till the settlement of claims if any. Brokers have liberty to deal with all the insurance companies unlike insurance agents.
I guess you are looking for a retail health policy.
People generally buy a health cover upto 5 Lakhs sum insured. Either as a retail policy or provided under group cover by employer.
But let me tell you the fact here.
For a non-critical illness hospitalization it might hardly cost max 50K. But the limit is Rs. 5 Lakh which is very high. Why pay a premium of 15K for an expected liability of 50k which may or may not occur.
On the other hand, for a critical illness hospitalization, 5 Lakhs sum insured is very low. It can drain your pocket for more than 20 Lakhs.
So, with this sum insured, we are either under insured or over insured for our needs.
In case of any non critical illness hospitalization, it is easier to manage the medical expense of upto 50K. What if there is some critical illness or accident? How we will manage to get lakhs of money in a day or week?
So my point here is, insure the severe risk of critical illness hospitalization first.
Here I am going to share a trick on how you can get very high sum insureds at very low premiums.
Here you have to select a combination of 2 health policies.
Regular health policy ( Base Policy) Super Top Up policy Go for a super top up policy first which covers you for a very high sum insured at very low premium. The reason of low premium in this kind of policies is, there will be a deductible amount starting from Rs. 1 Lakh. That is, hospitalization expenses over and above 1 Lakh for that policy year are payable under super top up plan.
First 1 Lakh has to be borne by the insured himself.
The insured can choose a desirable deductible and sum insured from many available options in market.
The Deductible amount ranges from 1 Lakh to 30 lakhs and Sum insured ranged from 1 Lakh to 1 Cr.
You can visit https://www.ethika.co.in/super-top-up-insurance/ to find out lowest premium out of all super top up plans available in market.
Once you buy this policy, if your budget permits, you can go for a regular health policy as well to cover the deductible part of your super top up policy.
In one of the many combination of sum insureds under both policies, it is possible to get 1 CR sum insured in less than 15k for a family.
No. The critical illnesses are specifically defined under the plan. Since Corona Virus is a new outbreak, it's not part of any critical illness policy as of now.
Moreover, the treatment costs are not being borne by insured. Government is taking care of the treatments.
but yes, if there is a death due to Corona Virus infection, the claim is payable under the life insurance.
Instead of just looking at buying only 1 plan with all benefits, its better to go for a combination of plans to get a cheaper cover.
Most of the insurance plans offers attractive riders ( optional Covers), but there are better alternatives to get the same cover more comprehensively at cheaper price.
You can follow my answer in below link for a good health insurance plan in India.Susheel Agarwal's answer to Where could I get low-cost self-employed health insurance?
Of course they must be. There was 30% to 40% increase in the traffic for policy bazaar and other such sites where insurance is sold. Corona is an alarm for everyone of us to be prepared for tomorrow. Due to increased demand and also increased probability of claims, very soon a hike in health premiums is expected. People are intelligent enough to learn lesson from what happened to others, if we wait till it happen with us - we will not get insurance. Because insurance is sold to healthy people.
Insurance companies have also come up with Corona specific health insurance plans.
Still there are a category of people who feel there is no need of buying health insurance with fear of Covid -19. Because, so far Govt. is taking care of treatment for Corona. Now that the number of positive cases are increasing, Govt. will not be able to continue to take responsibility for all. The per day isolation charge is around 75000/- to 1 lac.
Are we prepared to take care of that expense?
Finally I would say, as of now we are unable to step out due to Corona virus. What's next?
Out of all kinds of possible pollution and damage done to the earth and nature, there can be soon coming out something where we will not be able to use water or it would become harmful to breath in this air.
However nature had a reboot with the help of Corona. So let's be sensitive at adding anything to damage nature.
At the same time, be prepared financially to take care of your treatment in case something happens.
There are two types of health care products.
Preventive health care products Cure based health care Products
For cure based health care products like lab tests, doctor's consultations, spectacles etc. the difficulty is not much for convincing people to buy. Because they have already prepared to buy due to health situation. You will have to convince them only to buy from you among your competitors.
Here there is no much need of any special business strategies than any other non health care products in market.
But the target customers are limited to who are suffering with specific illness and need that particular health product or service.
Health is something, no one wants to believe that, there can be any health issues to them unless it really happens. Here the target customers are huge in number but for the preventive health care products like a health test package, or health insurance etc. people are resistant to buy it.
Many don't even utilizes there yearly free health check up package from their employers.
Now the question is "how to bring them out of their resistance?"
There are 3 important things which make people buy anything which they don't intend to.
One example where someone has faced issues for not having it. This will create an impression of need in prospect's mind.
Frequency and/or severity of loss for not buying that preventive health care product. This will create an urgency to buy in the mind of your prospects.
An exciting offer will disqualify there further resistance to buy.
Unlike Term life insurance, Whole life insurance policies offers an investment component. The income generated over this investment component of your policy is called as Cash Value of your policy. This income is tax free to the extent of the premiums you paid. Cash value accumulated above which is taxable.
I guess you are talking Insureds not insurers. Insurer itself means Insurance company.
Coming to your question,
In a general scenario, it is expected that only 5% to 10% of the people might claim from the total policies sold by insurer (insurance company). Hence premium will also be quoted considering that after meeting this claims and administration costs, reasonable profit is earned.
When the situation become reverse where 90 to 95% are claiming, such kind of losses are kind of catastrophic loss to the insurance company.
Being into the business of risk, insurance company are well prepared to handle their own risks. Insurance companies will also re-insure the total or partial business undertaken by them with reinsurance companies. Hence in such cases insurance companies can take care of their big losses.
This is really a good question.
Risk is calculated in 2 parameters.
When it comes to health risks, there are illnesses (non-critical) for which the probabilty of occurence (frequency) is high but the severity is low. Like Jaundice, Maleria, Dengue etc.
There are other illnesses (Critical) like cardiac, cancer etc. for which probability of occurrence is very low but severity is very high.
People generally take a health insurance cover of upto 5 lakhs or below and feel secured.
But the fact is, this sum insured is very high for non critical illnesses where the expense would be hardly 40 to 50K. Then why pay premiums for 5 Lakhs.
And for Critical illnesses, this sum insured is very low where the expense would be 20 to 30 lakhs. How will you manage nxt 20-25 lakhs above health insurance?
So either you are under insured or over insured for your health insurance needs.
Hence to answer your question:
You can always manage your expense upto 50K to 1 lakh in case it occurs, even if you dont buy insurance for those risks. What can really bring your family in despair is the critical illness risks. Though probability is low, severity of risks will drain your budget completely.
So, you can always prefer to buy a policy with high deductible option of 1 lakh to 5 lakhs and a sum insured of 20 to 30 lakhs, or even 1 Cr.
These high deductibles can lower your premium greatly. This kind of health plan will be a much less expensive than regular health plans.
Also, most of us will have a health insurance from employer as well. In such cases your initial 2 to 4 lakhs is already covered under group cover. You can simply opt for this high deductible health plan and stay fully secured.
Such plans are called as Super Top up Plans. You can visit Super Top Up Health Insurance Policy | Ethika Insurance Broking Pvt Ltd to have a premium comparison from all the super top up plans available in market.
Yes you can.
There are a number of standalone Corona Cover plans available in market.
Due to the situation of lockdown, insurance companies are collaborating with online selling sites or payment wallet sites like PhonePe, Flip Kart and Paytm.
There is no need of any pre-medical screening and you can buy it very easily through above mentioned sites.
But in case age is above 75 or if you have a recent abroad travel history , you may not be able to get this policy.
Both indemnity type and benefit type policies are available in market for covid-19.
Indemnity type of policies are those policies which indemnifies your medical expense. That will be paid to the hospital directly upon bills shared by insured.
In Benefit policies, claim is paid as a lumpsum amount.
ICICI is providing coverage as below under covid policy.
Lumpsum amount + Free chat and tele consultations with doctors + Ambulance
Paytm in Collaboration with Reliance General Insurance has launched most comprehensive cover policy for recovering the loss due to Covid -19.
The policy covers not only the treatment costs but also Loss of pay & Quarantine expenses. There is an optional cover as well to waive the exclusion of travel within 45 days before policy inception.
People may also think, why to buy any insurance policy for Corona, as Govt. is taking care of the treatment expenses. But now when the number of affected people are increasing a 1000 every day, very soon this will be shifted to private hospitals and would be chargeable. Each day isolation expenses can cost you more than 50K. Hence its a wise decision to have an insurance cover for this pandemic.
So far it is not an exclusion in any life or health insurance policies and hence if you are hospitalized - health insurance covers this as any other health claim and would pay it as per the terms and conditions in the policy.
Similarly, if there is a death due to Corona Virus, the life insurance policy cannot deny the claim on the grounds of death due to Corona Virus.
But now the life and health insurance will definitely be revised to meet the today's risks in an effective way.
The premiums are going to increase and many of life insurer's have already increased their premiums considering the increased death rate due to the outbreak of this pandemic.
We never know, soon the policies may come with a general exclusion added for not covering any issue which turns out to be pandemic.
As of now there are specific as well which provides health cover for Corona.
One fact about insurance marketing is that, insurance is never bought, it is always sold.
Initially, I have faced a lot of difficulty in getting insurance buyers. Both at retail and corporate level.
I approached my mentor with similar question as yours. My mentor shared the basic change needed to get this resolved.
That was - my intentions while selling. Let me elaborate.
I always use to have several thoughts running in my mind about the business deal I would have with the client I am approaching. I use to meet my clients with the feeling that, client is in a giving position.
My mentor asked me to reverse this feeling. Feel yourself at giving position. Think, how client is getting benefited with your help and don't expect anything in return or how you will be benefited. This feeling makes us more empathetic towards the people who would be in need of this. Our thoughts will not term them any more as 'potential buyers' but as 'people who would badly need it.'
I also connected to one of my prospect to whom I have approached every year since long time, but he was never convinced. I took his feedback for his decision of not entering into a deal. Then he said, the only reason was my desperateness.
In Bhagwat Geeta as well, Krishna has given lesson that,
"Do your Karma with out expecting anything in return."
Many of us don't find it motivating because we do not understand the complete meaning in it.
This lesson says not to expect anything in return for your Karma, because, the results will automatically come, need not be in same form as you are expecting.
This principle is applicable not only in your business but in every aspect of your life, every karma you do.
This is possible only if you turn out to be an insurance broker. Agent cannot represent any other insurer than for which he/she holds a code. A persona can have only 1 life insurance company code and 1 general insurance company code.
This is the reason I also turned out to be a broker.
Becoming an insurance broker has special terms and conditions to get the license.
You have to pass the brokering exams as conducted by NIA. There is a minimum capital requirement of 75 Lakhs.
You can go through https://www.irdai.gov.in/ADMINCMS/cms/Uploadedfiles/Registration_and_license_Brokers_UM.pdf
for further requirement details to get insurance broking license
Lets say, you have a regular health policy of Sum insured 5 Lakhs. You want to enhance your cover to 25 Lakhs looking at current risks of falling sick and the costs involved.
Then you can opt for a Super Top up policy with a deductible of 5 Lakhs and sum insured of 20 Lakhs.
Deductible is the amount which has to be borne by insured himself. Insurance company will not pay first 5 lakhs of loss. Once the loss amount crosses the deductible limit, then the medical expenses above this limit are payable under super top up policy.
The super Top up policies will cover huge sum insured for a very low premium.
There are a number of options to select a deductible and sum insured amount as per your needs.
I have taken a super top up health policy with 10 lakhs Deductible & 1 Cr Sum Insured at Rs. 1471/- premium per annum for my family (self, spouse and 1 kid).
This is one of my most liked insurance product.
How it works:
The aggregate total medical expenses incurred in a policy year is summed up and if it crosses the deductible amount in the Super Top-up policy, then the expenses over and above deductible is payable under Super Top-up policy.
The super top up policy has its own terms & conditions and has no impact of base policy terms & conditions. You can buy super top up policy even if you dont have a regular base policy. You only have to present the hospitalization expense bills as coverable as per super top up policy.
How it differs from Top-up Policy:
A Top-up plan is per claim basis. If the medical expenses incurred in a claim exceeds the deductible amount then the amount is payable under Top-up Policy, unlike in Super Top-up aggregate claims in a year are considered.
Hence we should first have a super top up policy and if budget permits, we can go for a base policy.
Many insurers provide such policies. You can easily compare premiums for super top up policy provided by all the insurer's in India at one single glance at
Super Top Up Health Insurance Policy | Ethika Insurance Broking Pvt Ltd
After having a super top up policy, we need not bother about few of the coverage under base policy like, Cumulative bonus, Restoration of Sum Insured etc. as we already have adequate top up cover. This will help us making our base policy little less expensive.
It's not so.
With the advancement in Science and Technology, there are certain surgeries which do not require 24 hours hospitalization but are expensive. This is where a compulsory 24 hours hospitalization clause needed relaxation to include such expenses. Because this was causing moral hazard as insured and the hospital with mutual understanding extended hospitalization to 24 hours to get coverage. Either in real time or just in papers.
Insurers have listed around 586 such treatments called "Day care procedures" where they allow the medical coverage even without getting admitted for 24 hours. Even if it is not listed, you can request them to include it and take approval before going for admission.
Don't get confused between day care procedures and outpatient expenses. No Insurance company pays for the stand alone Outpatient treatments like POP because of bone Fracture, stitches with local anesthesia, doctor consultations, health tests etc.,
Sample List of day care procedures can be found here.
On the contrary to your question, Its not that, if you are admitted to hospital for 24 hours, the exepense is payable in health insurance. There has to be a treatment which is covered as per the terms and conditions of the policy.
In India, we have an option to claim deduction under income tax for the premiums paid towards health insurance of self & parents.
You can check for the applicability of deduction for the year 2020 as per below table.
Upon observing this deduction hart, I just realized an interesting fact.
Every income group person, pays a similar premium with same GST of 18% on total premium. But due to the deductions available under income tax, the people with higher income group who are in the slab of 30% will get 30% return for the premium paid, and people with slab rate 10% rate will get 10% return on the premium paid.
In this way, the health insurance is costlier for the lower income group people.
Its possible that, in any of upcoming budgets, Govt. may withdraw these deductions.
This is possible only under corporate group health insurance. Retail Health insurance does not cover health issues which are planned and certain to happen. If insurance is provided for maternity with out waiting period, every person will opt for health insurance just before maternity.
Insurance companies runs on the concept of 2 or 3 incurring loss out of 100. So the collected premium should be sufficient for payment of claims incurred.
If this ratio is reversed that 90 to 95 people are claiming then how will an insurance company manage to pay the claim?
There are policies in market where there is a waiting period as low as 9 months. But those plans are not useful as premium is very very high.
Let's know what is Cash value first:
The premium paid by you is divided into 3 parts.
One part is saved to pool the money for meeting the death claims.
Second part is kept for meeting the administration costs of the company.
And the third part is put for a cash value where it will be invested in various ways by the insurance companies and a percentage of that income from investment is provided to insured to add to this cash value.
This is applicable to the plans which promises any survival or maturity benefit. There is no cash value concept for term life insurance plans.
It is similar to a casino business.
You would get food, snacks, good ambience and service in restaurant and also in a casino. Casino would be expensive when compared to restaurant. But in casino you would get coins to play and try your luck. And when you win out of these coins, the existing value of your coins and additional won amount is your cash value.
How does Cash Value works:
Once a cash value is accumulated, you can make use of that amount in different ways. For example, you can use that to pay your further premiums of your life insurance policy, you can take a loan against this amount or you can even withdraw up to a certain percentage.
Does it really work beneficially:
It takes really long time for the accumulation of a cash value. Secondly, its actually our own money paid as extra premium for life insurance for the extra benefit of this cash value.
If we put the same extra premium amount in any other business, it will give better benefits.
Most importantly, its not actually a guaranteed return for your investment.
Because in case of a death claim, only the sum insured will be paid, accumulated cash value will not be paid. So you will be losing on your investment unless you have already withdrawn or used it. However, withdrawal is not easy.
How Cash Value works during Surrender:
If anyone wishes to surrender their life insurance then the amount returnable to the insured is also called as cash value. But if we surrender with in 3 years of policy inception, no surrender cash value is generated. Because the company will take the amount to recover their administration costs.
Never link up Investment with Insurance. The reason is -
Insurance takes extra premium for any extra benefits provided under the policy - specially Survival benefits.
Now we are paying premium for both death and survival. So we will definitely lose on one of the deals.
If we die, we will not get survival benefit. If we survive, we will not get death benefit.
So, better go for only a term plan where premiums would be very low and invest the extra premium amount saved out of this insurance deal. Invest in such a way that, if you survive, you will get the benefit and if you die, your family will get the benefit.
The survival benefit in insurance contract is never extra of what you have already paid as premiums. Pooling of risks is required by insurance companies only for the payment of death benefit. But for Survival benefit, your own premiums are sufficient.
Being an insurance broker, we have gained a lot of expertise on how any kind of product is performing or how any of the insurance companies are performing in the market. You can reach us at Best Insurance Brokers in India | Ethika Insurance Broking Pvt Ltd | India for any doubts on above explanation.
When it comes to life insurance, its very important to judge the solvency and credibility of company as its a very long term plan.
One of my friend recently had the same question as yours while buying a Term life insurance plan for himself. He is a very wise man, who keeps himself updated with business news, does lot of research on everything he deal with.
He already had 6 to 7 different types of life insurance policies, surprisingly all with LIC only. But the max sum insured was only 25 Lakhs.
His birthday was on 11th of April, so he wished to buy life insurance before he would turn 46. As the premium would increase and then same will continue through out the policy tenure.
I shared couple of good quotations and upon his request I shared a quotation from LIC too.
Out of all he decided to choose LIC over other companies due to below 2 reasons.
LIC being the origin of insurance in our country, has build a strong trust among people of India. Infact for many of Indians, the word Insurance itself means LIC. So he had strong trust on LIC. LIC charges more premium when compared to other companies. He says, that's how they are collecting right premiums right now so that they should be capable to pay the claims in future. So it's ok if they collect more premium but does not go with strategies to deny the claims later on.
But my suggession is, we should always look at the management of the company and why they are associated with company to know whether the company will run good in future or not.
Company's Management Team:
When we talk about LIC, the management personnel they are associated because its Govt. Company. Management has no personal interest apart form this. They are not required to be creative and innovative because people are anyway having trust on them. They are getting business anyway.
When we look at companies like HDFC, ICICI etc. - there management is having a strong determination to grow as number one in the industry. They are charging competitive premiums and yet their claims settlement ratio is close to LIC.
Company's Solvency Ratio:
IRDA has shared guidelines with insurance companies to maintain a minimum solvency ratio of 150%.
LIC's solvency ratio as on 30th Sep 2019 was 160%. Where as HDFC's recent solvency ratio is 195%. It has been in a growing graph since 2018. Moreover it has the acquired Apollo Munich health insurance recently, still the solvency ratio did not go down.
Claims Settlement Ratio:
(above data is collected from economic times)
This is surprising that the private companies have outperformed LIC in settlement of claims. Hence gradually people are preferring to go for private companies. The premiums are low as well as service quality is much better that PSUs.
When this shift continues, it will be hard for LIC to continue the way its moving.
We being in the insurance broking industry, our core competency lies in reviewing the roots of insurance companies and their products. For a detailed study about any other insurance products, you can reach at Best Insurance Brokers in India | Ethika Insurance Broking Pvt Ltd | India
No. Remodeling is not an uncertain event that happened. Insurance is only to make your loss good. So unless there was a disruption due to any contingency covered under the policy, the policy will not pay. If remodeling is being done because there was a disruption due to an accidental event covered under the policy, the amount payable is as per the loss occurred and limits under the policy.
The insurance industry is one among very few industries which had more benefit than the loss due to lockdown & outbreak of Corona Pandemic.
Let's see the overall impact due to Covid-19 & Lockdown on insurance industry:
* Launch of new line of insurance covering Covid-19:
One add on to the insurance industry is, there is launch of a new line of business for covering risks related to Corona. Many insurers in collaboration with online wallet sites like Paytm, PhonePe etc. are issuing policies for covering risk of Covid-19.
- The policy is available in both retail & group cover.
- No premedical screening is required.
- Interested people can buy the policy online.
- There should not be any travel history abroad in recent past.
- There are various plans available in market. Few provide benefit on Indemnity basis, few are providing as a lumpsum payout.
- Few plans cover not only the treatment costs but also Loss of pay & Quarantine expenses.
As of now people are not bothered much to buy such polices because as of now Govt. is taking care of expenses. Once the number is going to cross the capacity of the Govt. private sector is ought to jump in. But then, the expenses has to be taken care by the people themselves. Then there will be quick rise in the sale of corona care insurance products.
* Life Insurance:
Initially there was a downfall to the life insurance sector due to sudden increase in death claims. Many insurers already revised their premiums to match the changed risk rate due to Corona Virus.
The fear penetration has led many people to think towards buying a life insurance. Few were buying urgently in fear that premiums might increase. Few others were buying with fear of being infected with Corona Virus.
* Health Insurance:
Health Insurance sector got a rise due to the increased fear of falling sick among the people. Initially there was risk to health insurance sector as well if the treatment expenses were not taken are by the Govt. of India. There could have been huge claims bringing health insurance sector to losses. The 24 hours hospitalization clause is strictly applicable in case of Covid-19 as well for the claim to be considered under health insurance.
* Motor Insurance:
It was a see saw effect to the motor insurance line. At one side, there is downfall in motor insurance sale, on the other side there is a drastic fall in claims as there are no mishaps due to lockdown.
IRDA has given guidelines that the premiums falling due during the lockdown can be paid till Apr 21st. This is allowed only for the vehicles which are insured for only TP Liability. The risk is also assumed covered during such period.
There have been relaxation given to life & health premiums as well for 30 days in case the due date falls within the lockdown period. However, risk is not assumed to be covered by insurers till the premium is received. This relaxation is only to benefit the continuation of waiting periods in the policy and any such benefit which requires continued cover in the policy.
So, your policy will not be lapsed. However, claims falling due after the expiry are not considerable till the payment of renewal premium. Hence it is advisable to pay the premiums online and keep a continued cover. Don't allow lockdown to lock your insurance cover as well.
You would be anyway paying the premium for all 12 months starting from the last year expiry date. So better have it in active mode.
Impact of Pandemic and lockdown on us:
Being a part of insurance industry, I am keen to share the impact on us of this pandemic outbreak.
As all my colleagues are working from home, we have saved good time, energy and efforts of travel. Good part is, we are having client meetings online, which is saving really good time to our sales team. As both travel and the waiting time at client's place both are saved.
We are having self development sessions everyday during this special saved time.
In India, Insurance is something which is never bought, it is always sold.
Here I mean that, we Indians are quite optimistic in terms of taking risk. It shard to make anyone believe that some loss can happen to them.
To make people buy, we have to work on the reasons why people do not buy insurance policy.
We also should make note of what are the reasons people buy insurance policy.
In India maximum people buy insurance due to 2 reasons. Either they are awarded with some benefits by Govt like tax redemption or if they are penalized by Govt. for not having insurance like - Motor insurance.
The following are the risks insureds feel while buying insurance today.
1) Insurer's solvency:
Especially while buying life insurance people are very concerned about insurer's solvency as it's a very long term insurance compared to other lines.
But such cases the insolvent insurer is taken over by a solvent insurer and the existing insureds are still covered for getting their benefits.
2) Claim Rejection:
Sometimes the claim is rejected as per the terms and conditions of the policy. There are instances where claims are rejected unreasonably as well. Especially in health insurance, it has been observed that, TPA's were given a limit for the claims to be settled. This made TPA's to deal every claim with an attitude of digging on what grounds they can reject the claim. It is ok till finding how it can be rejected, but they also started creating such reasons.
IRDA has created many norms and formed many organizations to deal with grievances of insureds, primarily with an objective of protecting the interest of the insureds.
This has to be conveyed to the insureds when they buy the policy so that they feel secured.
3) Difficulty in understanding the policy terms:
There are certain terms and conditions which are ought to be included in policy to define that only uncertain risks are covered. The insurers are complicating such terms & conditions unnecessarily to limit their liabilities but still give a broader cover picture. It disappoints the insureds once they go through terms & conditions.
4) Waiting periods & Exclusions:
If after paying premium, we incur some medical expenses which may fall during waiting period or under exclusions, then we will lose the claim benefit as well as the premium.
This kind of fear is also one of the risks people hesitate to buy insurance.
So idea is, you will have to be empathetic with them to resolve their fears while buying the policy and making them realize the benefits they will get out of it.
Now the question is, how will you make them realize.
Just reading out the benefits in the plan will not help. You have to give live examples how your existing clients got benefited. Or you can also give example of people who suffered for not having insurance.
For example, if there was a short circuit in a shop and everything got destroyed due to fire, you can give example that if the shop owner had paid this small amount every year, he would have saved himself from this great loss.
You should always put efforts to connect your prospect to the outcome of buying insurance.
If you wish to know, how I could overcome this issue, please refer to my answer at below link:
Susheel Agarwal's answer to How do I get insurance buyers?
And You can also visit our website to get idea about insurance products and how we present them for sale at Best Insurance Brokers in India | Ethika Insurance Broking Pvt Ltd | India
Yes, ofcourse you should have one retail health policy too.
Good that you are healthy as of now. Because if you were not healthy, you would not get health insurance cover.
The Sum insured provided under Corporate health cover will be very low. It is sufficient to cover your non critical illness hospitalization. In case of critical illness hospitalization, you need to have atleast 30 Lakhs of sum insured. Each day of hospitalization can cost you more than a Lakh.
Most of us will be in a perception that I am so healthy and happy, nothing can happen to me. But here I would like to share about my mentor.
My mentor has the healthiest lifestyle. He has devoted his life to God, never eating out since decades, Meditation etc. He is the man who keeps detoxing both his body and soul. But he has been diagnosed by Cancer recently.
Out of every 8 women, one is being diagnosed by breast cancer.
Not only cancer, risk of other critical illnesses, known or new break outs like Corona has increased greatly. Hence its impotant to be financially secured to deal with such situations.
If nto a retail policy, atleast having a super top up plan can help you greatly during any contingency of critical illness.
A Super top up health insurance policy covers your very high sum insureds at a very low premium. The reason for this low premium is - a high deductible amount.
Let me tell you what is a deductible. It is the medical expense which is covered as per the policy terms and conditions but the Insurance company does not pay.
The expense is payable only when the total medical admisible expenses during the year crosses the deductible amount.
I have 3 policies for my family of Self, spouse & 1 kid.
One is my Spouse's Corporate health insurance for a sum insured of 3 Lakhs.
Second is a super top up health insurance with 3 Lakhs Deductible & 10 Lakhs Sum Insured. (Premium: 3,372/- per annum)
Third is one more Super top up policy with 10 lakhs deductible & 1 Cr Sum insured. (Premium: 1471/- per annum).
So I have a cover of 1 CR at less than 5000/- premium for my family.
Youc na have various sum insured & deductble options from market. Go fr it and be secured.
You can have a look at premium comparison chart for all super top up plans available in market at Super Top Up Health Insurance Policy | Ethika Insurance Broking Pvt Ltd
In this lockdown scenario, there is no chance of accidental damages to the car.
The only risks we have right now are
1) damage due to no-usage for long time. and
2) A total loss due to flood/heavy rainfall and water accumulation in cellar or theft etc.
We can take care of first risk of damage due to non-usage by driving near by once in a while. Now that lockdown is being relaxed a little, traffic will be still less on the roads.
I have a Baleno. At once I thought to go for only TP liability cover this year as there is very less chance of accident on the roads due to less traffic.
But the problem is, I will loose on my No Claim Bonus accumulated discount of 35% next year.
And I have to bear the risk of Total loss as well.
Then I got one idea where I should be able to save on my NCB, at the same time pay as less as possible.
I am not taking bumper to bumper cover this time for my vehicle. No other add on benefits. Just a minimum own damage cover to continue my NCB.
Then recently Reliance General Insurance has come up with a new concept of floater cover in motor insurance. That means, you can cover upto 5 vehicles registered under your name in 1 single policy.
The sum insured will be the heighest IDV among all the vehicles. Here at one go, premiums will be lowered for all the vehicles you have. NCB is also transferable and considered while shifting to this policy.
The only drawback is - in case of total loss to both the vehicles, you would be paid only upto sum insured. That means, claim for only primary vehicle (with heighest IDV) will be paid.
It is possible that, due to Covid -19 and lockdown consequence of social distancing - there is a big downfall in the risk of accidental losses.
So there should be change in motor tariff for decreasing the premiums.
One more idea is, you can approach an insurance broker like us to get negotiated quotes with a service of end to end support from policy issuance to the claims settlement. Here is the link: Best Insurance Brokers in India | Ethika Insurance Broking Pvt Ltd | India
No claim bonus as the name says is the bonus discount which we receive on renewal premium upon a claim free year. This is applicable only on Own Damage premium. It is not applicable to Third Party Liability premium.
It starts from 20% in first year then continues to increase as per the specified percentage as mentioned below.
New car: 0%
First year: 20%
Second year: 25%
Third year: 35%
Fourth year: 45%
Fifth Year: 50%
50% is the maximum discount one can avail as NCB.
What happens when we claim after 2nd or 3rd year:
There will be no discount on renewal premium that year. You need to wait for next 12 months of no claims to start accumulating the NCB and it will again restart from 20%.
If there was no claim but there is a lapse in Car insurance:
In this case, the NCB is active upto 3 months from the date of expiry. If not used, it will be lost.
As this is a year with lockdown. I thought once of insuring only upto TP Liability for my car insurance. But then I realised that, I would be losing on my NCB discount which is going to be 35% next year.
NCB is for benefit of Insured or Insurer?
It looks like NCB is beneficial to insured as it adds a good discount to renewal premium.
But It also very beneficial clause to insurer. Let me tell you how:
When there is a claim: A deductible amount of minimum 1000 is payable by insured himself. Then lets say the remaining claim amount is 3000. The insured has to make sure that this amount exceeds NCB for next year because once this claim is made, he will lose on NCB benefit. So generally the insured will raise the claim only if the total amount is above the NCB + Deductible applicable next year.
If we see, we pay an Own Damage premium which is about 5 to 6K and then have to bear the claim upto 1000 and then we will lose on NCB that is upto 4K. It looks like, we are insuring but NCB comes in middle when we wish to claim.
So my suggession would be - Either never go for Own damage cover, and if opted, continue to have it. Well, when you are not going for Own Damage cover, do invest the saved amount in some other way to get you some returns. This will help you have your money in control and spent only when made a loss.
Reliance General Insurance has recently come up with a unique plan for motor insurance. This plan has no dependency on lockdown though.
Under this plan, you can insure all vehicles registered with your name in one single motor policy. The sum insured would be the value of the vehicle with highest value.
You can have maximum of 5 vehicles covered under single policy, be it 2 Wheeler or 4 Wheeler.
In case of total loss of the vehicle with highest value, the claim is settled for total sum insured and hence the policy will be cancelled for other vehicles insured under this policy.
The only drawback with this plan is, in case of total loss to all the vehicles at the same time, the total amount payable under this policy would be only for the vehicle with highest value. Because that was the total limit under the policy.
To have a comparison, what could be better solution for insuring our car you can reach us at Best Insurance Brokers in India | Ethika Insurance Broking Pvt Ltd | India
Material facts are those which can make a difference to the frequency or severity of loss.
Like if you are addicted to alcohol, this can be a material fact to disclose. If you have got any severe injury, problem with eye sight which make you difficult to drive etc. can be some material facts which an insurance company must know.
Non disclosure of such facts or misrepresentation of material facts can make your insurance contract void. If this is proved during claim, the claim is disqualified, policy is cancelled and premium is also not returned.
You can always prefer to buy with the help of insurance broker like us (www.ethika.co.in) in order to avoid any loopholes in the coverage or for hasslefree claim settlement.
The online websites like policybazaar or coverfox are user friendly to compare the plans. But having a good idea about what all types of plans are available in market and which coverage items you should focus will make your job easier.
This is like you want to buy the grocery but you don't know what all you should buy and which brand is good in quality at lowest possible price. This is where we as insurance broker do a hand holding with the insurance buyers by guiding them with smart solutions to their insurance needs. This support from us will be extended till the settlement of claims. But as you are buying online, I can guide you with few smart tips by which it will be easier for you to select insurance plan for your family.
well, I am not sure whether you are planning to buy health insurance, life insurance or motor insurance.
If it is health insurance, following are the tips to compare the health insurance plans online.
I have an insurance for my family for a sum insured of 1 Cr for a premium of less than 5000/-. Initial 3 Lakhs of sum insured I have it in my corporate group health insurance plan. Rest 97 Lacs of Sum Insured, I could buy it for less than 5000/-.
This is the magic of Super Top up Health insurance plans.
Firstly, please note down what all coverage you already have. Like health insurance from employer.
If you dont have that, you can go for a base health policy with sum insured of 5 Lakhs to 7.5 Lakhs. with following items into consideration.
The main coverage items to consider are:
2) Room Rent (There should be no capping)
4) Sub-limits for certain treatments
5) Pre-policy Health Check-up requirement ( and who will be bearing cost)
The above 5 are the items where there can be outflow from our pocket.
Items of second priority:
6) Organ Donor
7) Complimentary Health Check-up
8) Alternative treatments options (Ayush) Cover
9) Waiting periods:
a) Lowest Pre-existing diseases waiting period - Only if you have any.
b) Lowest waiting period for certain diseases like cataract, Hernia etc. ( So far the lowest waiting for this option is 1 Year in certain plans)
Here is a list of standard covers which every product has. There can be slight difference with respect to the quantum of cover but it would hardly make big difference. Hence not to consider while comparing.
10) Pre & Post Hospitalization
11) Day care treatments
12) Domiciliary hospitalization
13) Emergency Ambulance
14) Wellness Benefits
There are certain new types of coverage items even for which you need not bother either as an inbuilt cover or optional cover because you can buy a Super top up policy instead and get more wider unconditional cover.
15) NCB or Super NCB or Cumulative Bonus
16) Cancer or Critical illness cover
17) Recharge or Restoration of Sum Insured
And If you are planning for a Life Insurance, go for a term life plan with increasing sum insured option. To know the reason why, please follow my answer on Susheel Agarwal's answer to Which is better and why: term or whole life insurance?
Now that you have a focus it will be easier for you to finalize a life insurance plan.
For any assistance to finalize your insurance needs, you can reach us at Best Insurance Brokers in India | Ethika Insurance Broking Pvt Ltd | India
If you are referring to health insurance, every health policy is providing coverage for Corona, but only on inpatient hospitalization.
There are some new products in market specific to the covid-19 related risks which you can get it for a very low premium. Reliance in collaboration with Paytm is providing most comprehensive coverage for Covid-19 risks. This policy also covers loss of pay and quarantine expenses.
But as of now Govt. is taking care of the treatment costs. This is useful once the burden shifts to people, when the number of cases increases to the extent that private health care has to step in.
Hence you can prefer to buy benefit policy on covid-19. Benefit policy means, a lumpsum pre-decided claim amount is given to the policy holder in case insured is diagnosed with Covid-19. In this case, you will not lose benefit of the policy in case the treatment costs are taken care by Govt.
You can try for a group cover as well for covid-19.
I work for an insurance broking firm Ethika Insurance Brokers. We have got many inquiries from corporates for a group covid policy for their employees.
Health insurance could be unimportant to only those people who has a financial security of atleast 30 to 50 Lakhs at anytime in case any contingency occurs.
I can share one more situation where you can skip buying health insurance.
I got married in a joint family where 22 people stay in a single house. One House, one kitchen, one Business and every expense is planned under a single budget. I being specialised in insurance, the very first thought came to my mind was buying health insurance for my whole family. But soon I realized, the total premium amount is coming upto 45,000/- for a sum insured of 5 Lakhs.
The probability is that if any member of our family may get hospitalized from some illness like jaundice, maleria or dengue. The medical expenses will not be more than 25000/- to 30,000/-. Then why should I pay a premium of 45000/-?
So I dropped to buy health insurance for that particular sum insured. it became unimportant for me to buy this particular cover. The core purpose of risk pooling is happening at home itself.
And if there is going to be any critical illness, having a sum insured of 5 Lakhs will definitely not help. I need atleast 20 to 25 Lakhs cover for each member.
Soon one of my uncle was diagnosed with multiple organs failure. He was hospitalized for 25 days. Each day's expense was 1 Lakh. Unfortunately we could not save him.
I realized, I was too late to buy a super top up policy for my family. Hence I purchased it immediately with the help of an insurance broking organization.
They suggested me to go for super top up cover for all my family members. Because any risk till 5 Lakhs is bearable. But its important to have health insurance cover for a bigger risk. Super top up policies covers very high sum insureds at very low premiums, but when the bill crosses a predecided limit in the policy called deductible.
Many others do not feel health insurance can help them because they have lot of insecurities while buying health insurance. Whether the loss will fall in waiting period, what if it is excluded in policy some other way etc. Here I am sharing a related article link. Risks while insuring Risks
I request you to be little more specific in your question. However I am attempting to answer various situations where the life insurance premium increase.
The term insurance premiums tariff is revised regularly in 5 to 6 years gap. But if there is a sudden increase in risk of deaths, which disturbs the premium Vs claims ratio then the premiums can be revised out of the scheduled time. For example, the life insurance premiums have been increased by 30% to 40% due to the outbreak of Covid-19 Pandemic.
If you are about to purchase a plan, the term premium will increase if you are a smoker or if there is some critical illness. As the risk of death increases.
Premium also increases as per the age, but once purchased will remain same through out the policy term.
Hope I answered to your question.
I work for an Insurance Broking firm. After a good research and comparisons between all the options available in the market, we came out with some unique solutions for all kinds of health insurance needs.
And understanding your concern to have hasslefree claims and getting the best coverage in lowest price, I would sugegest you to buy the policy with the help of a broker. Brokers act as customer's representative and has expertise to handle end to end processing of a policy. Infact, brokers will have a dedicated team to handle every aspect of your policy - right from getting negotiated quotations from various insurers till the settlement of claims.
Assuming that you both are healthy and recently married, I would be suggesting you a plan with maternity benefit.
Future Generali Superior plan is offering the best coverage with lowest waiting period for maternity. Both husband and wife has to be insured under the same policy with floater sum insured. The premium would come around 14,000/- including GST for a sum insured of 15 Lakhs. The coverage is highly comprehensive with a OPD Benefit of 10,000/- Per annum. The waiting period for maternity cover is just 2 years.
If you are not looking for a maternity cover, you can then go for Godigit insurance company and get a policy with sum insured of 7.5 Lakhs. The best part of godigit policy is, there is an inbuilt cover of automatic sum insured enhancement by 25% in case of critical illness. So considering that we have a cover of total 7.5 + 1.87 Lakhs.
But if any of you have a corporate health insurance policy, you can skip buying the above policy.
Now, to have a coverage over and above this 15 lakhs/7.5 Lakhs or to the health insurance you have from your office, go for a super top up policy.
It costs really very low for a sum insured of 1 Cr too. I have purchased 1 policy for my family with 10 lakhs Deductible and 1 Cr sum insured at just 1471/- per annum.
If your need is not yet satisfied, you can approach our team and share your requirements in detail at Best Insurance Brokers in India | Ethika Insurance Broking Pvt Ltd | India
So far there is no exclusion in any term insurance policy for death due to corona virus. All the term insurance polices in market provides coverage for Covid-19 and are already paying claims incurred so far.
Instead of excluding a claim with Corona virus, insurance companies have revised their policies and increased the premiums to deal with the risk of Covid-19.
But the good news is, there is no waiting period clause in such policies. The cover is applicable from immediate affect except in case of Suicide.
So, if you are not already tested positive with Covid-19, you can get the life insurance policy covering the risk of death b Corona Virus too.
If you want to have a consultation for your insurance requirement, I suggest you to approach an insurance broker rather than an agent. Because,
Agent can represent only one insurance company for which he holds an agency code. Hence you will not be exploring complete market before finalizing.
Insurance broker is not one person but an organization who is not bound to represent only one insurance company. Brokers deals with all the insurance companies in the market.
They will have the dedicated teams for every process in the policy life cycle. These teams acts as customer's representative and extends end to end support through out the policy year.
The best way to find cheap life insurance quickly is through Online websites like Policybazaar.com.
For more quick results, I can help you set your filters as below.
Term life insurance is the best plan as well as cheaper in premium when compared to all other plans available in market. It is also advisable to opt for increasing sum insured option which will help you have right sum insured as per the inflation.
Now that plan is decided, check out your needs.
Check out the sum insured requirement and the term upto which you will need the life insurance policy. Never to forget that, its just 10% chance that you may claim this money. Please go through my answer in the link below for a better idea on choosing sum insured and term.
Susheel Agarwal's answer to I have taken a term plan of Rs 1.00 Cr, should I take another life insurance policy?
Then put the details in the policy bazaar. The premiums will be displayed.
Not only the product, but we also need to verify whether the insurance company would be capable of settling a claim in long run.
You can go through my answer in the link below to know more on company's solvency and claim settlement ratios.
Susheel Agarwal's answer to Which is best for life term insurance, LIC or HDFC Life? Is it recommended to get coverage with private players?
Finding a cheap life policy will not even take a minute. But finding a right policy as per your need at cheapest premium would take time. Lot of research has to be done.
Being an insurance broker we specialize in finding the best insurance solutions to help insurance buyers for all their insurance needs.
You can approach us on Best Insurance Brokers in India | Ethika Insurance Broking Pvt Ltd | India to quickly help you find a suitable life policy at cheapest price.
Its a good policy compared to other standalone corona policies available in market.
Getting a cover of 50K at just 199/-. The cover under this policy is as similar to a regular health insurance policy. The major difference is - Regular health policies covers many other illnesses where as Covid-19 is restricted to hospitalization due to Covid-19 only.
Having a sum insured of atleast 3 Lakhs is very important in case you would require a treatment in private hospitals. Because due to the increased number of cases, soon private healthcare centers need to stand with Govt. to take charge of them. But this may not come free of cost to us. Hence we should have an adequate sum insured to deal with this.
Hence if you have a health policy already, make sure you have an adequate sum insured. If you have a good coverage in existing health cover, then you need not go for this covid-19 policy.
If you are still interested, you can go for a policy which pays you lumpum benefit upon testing positive with Corona Virus. Such policies are called as Benefit Policies.
You can ping me at Best Insurance Brokers in India | Ethika Insurance Broking Pvt Ltd | India for a comparison chart of all the covid-19 policies in India.
If you do not have any health insurance policy as of now, then you can atleast have a policy for Corona care. The reason is - the risk of getting infected is increasing everyday. And the cost of treatment could be as high as 2.5 L in a private health care center.
You can get a cover of 50K for a premium as low as Rs.199/- per annum.
Reach us at Best Insurance Brokers in India | Ethika Insurance Broking Pvt Ltd | India to get a comparison chart for all the corona care products available in market.
I have gone through the other answers and also your further question in comments.
I completely agree with you that we need to have a very high sum insured and a comprehensive cover under our health policy.
I have a health cover of 1 Cr for all my family members. Interestingly, I have paid a very low premium for that.
Since you already have a health cover for 10L. You can go for a Super top-up policy with 1 Cr sum insured and a deductible of 10 Lakhs for a premium of upto Rs. 2000/- for your family.
This policy will cover your medical expenses upto 1 Cr, once the first 10 Lakhs is exhausted.
So the total sum insured you will now have is 1.1 Cr.
Please reach us at Best Insurance Brokers in India | Ethika Insurance Broking Pvt Ltd | India to know more about super top up policy.
Unfortunately there is no insurance for unemployment in India.
Hence it's now our utmost priority to have a Plan-B to deal with sudden unemployment. Else we never know, what is coming next.
Can we have a plan-B which would require no investment, no much learning, no extra time?
Can this plan-B could be something which will help me to get income as well as opportunity to serve the society?
The Answer is Yes. All you need to do is bridge the gap. We will also guide you for the same.
Reach us to know more at Best Insurance Brokers in India |
I am sure every reader of this answer can relate himself/herself to one of the below situations.
Finally the day arrived when we decided to live with it rather than choosing death due to unemployement due to lockdown. Lucky are the ones who are yet having a capacity to avoid coming out in an environment of Corona virus.
If you fall under the lucky people as described above, I want to highlight that, we would be in close contact with the unlucky ones during this UNLOCK 1.0. Are we prepared to be lucky again by having enough savings to get treated and save ourselves?
It has started with 300 cases per day in India when lockdown has started. Slowly the number of cases per day rise up to 6000 per day. And this is still increasing. How far are we from corona virus now, when the Unlock 1.0 already started?
Now whether coming out or still keeping themselves isolated, it's highly important for everyone to be prepared to bear the cost of treatment for Covid-19 which could be from 2 lakhs to 20 lakhs.
Best way is to have adequate health insurance.
You need not opt for a Covid specific health insurance policy when you already have standard health policy in force with good sum insured. Sum insured good enough in case more than 1 family member gets infected.
Please note, Critical illness policy will not cover Covid-19 unless specifically mentioned by insurer.
If you do not have adequate health insurance, please buy one at the earliest as there will be a waiting period of 15 to 30 days during inception.
If you want to get idea at one glance about all covid specific policies available in market, you can find the comparison chart at www.ethika.co.in
. You can also reach out for any other smart solutions to all your insurance needs.
Lock your budget for health insurance before welcoming Unlock 1.0.
Yes you can include your wife in floater policy, but the cover will be valid for the treatment within India.
If your nose is broken as a result of an accident, the plastic surgery for the same is covered under insurance. The intentional injuries or injuries due to participation in any sports is not covered under insurance. .
I am not sure, what is the context of this question. Ofcourse the normal health insurance covers housewives as well.
Health insurance is for everyone (unless critically ill). Unlike Life insurance, you need not have any earning source to get insured.
You can reach us for more details at
Best Insurance Brokers in India | Ethika Insurance Broking Pvt Ltd | India
For Personal Accident rider, I would suggest you to compare the premium of a standalone Personal Accident policy and as a rider with Term insurance or any other plans. As a rider, it costs around 600 for covering only limited benefits in case of accident. But if you buy this cover separately, it considers the Permanent partial disability & Temporary disablement as well.
Once you buy Personal accident cover from any insurer, you can claim loyalty discount of 5 to 10% for any other plan you might purchase from the same insurer.
This way you can get cheaper Personal Accident cover with a wider coverage.
Moreover, we all do have Personal Accident covers to some extent which we have not purchased intentionally. For example, our credit and debit cards holds a benefit of 5 Lakhs or more upon accidental death. Our train tickets, air tickets also hold the PA cover. Most of us have also opted for Pradhanmantri Suraksha Bima Yojna. We also get PA insurance from employer.
Hence I do not recommend you to go for any additional rider in Term Life insurance.
The Critical illness benefit also, prefer buying it separately if you need it for a wider and cheaper coverage. Because it impacts your Life insurance cover upon claiming under critical illness.
Well, instead of Critical Illness plan, you can go for a Super Top up Plan. Super Top up does not pay lumpsum benefit but takes care of your high level hospitalization expenses. Its cheaper when compared to Critical illness plan. Moreover, there is a waiting period of 90 days in critical illness plan. where as super top up plans comes with only 30 days waiting period.
For any more queries you can reach us at below address.
As of now, unit-linked health insurance plans does not exist in India. There is only Life insurance unit-linked plans.
Well, I do not recommend you to look insurance as an investment option. For investment, there are better options which can give you better returns. Because, you would be spending higher amount on Unit Linked plans when compared to normal insurance plan. And this extra paid premium, if you invest it some other way will give you better returns than what this unit linked plans offer.
In India - Yes, you can buy insurance from any state. Any claim within India is admissible. But you can get better administration support if you have your policy in the local branch of insurer.
Following are the basic types of Term Life insurance:
Return of premium Increasing Sum Insured
There are some add on benefits also available for Accidental death and critical illnesses.
Secondly, you will have many options for premium payment and claiming benefits (like monthly, yearly or lumpsum).
Let me explain you the plan and its impact in detail:
1) Return of premium: In case of death, total sum insured is paid. But in case insured survives after the maturity of term, a lumpsum payment is made as return of premium. The premium is very high when compared to plain term insurance plan.
Such lumpsum benefit is found to be lesser than what you can get in case you hold that extra premium in bank FDs. Hence do not go for such policies.
2) Increasing Sum Insured: The policy Sum insured starts increasing by 10% every year after the fifth year of policy till the sum insured in doubled. Here the premium is little higher when compared to normal term insurance plan.
This is basically to consider the inflation as it comes. This is a very good option to choose. Because if you select the double sum insured now it self, premium will be very high.
Today what you can get in 1 CR, you cannot get same thing after 15 years. Hence its good to opt for increasing sum insured option. This way we can pay a lower premium and the have the adequate sum insured whenever needed.
Now when it comes to Riders, please go through my answer in the link below.
Susheel Agarwal's answer to Is it wise to take additional riders (accidental, critical illness) along with term insurance?
For any more queries you can reach us at below mentioned address.
Life insurance policies are not indemnity policies like general insurance policies where benefit is limited to make the loss good. Because a life is priceless.
If it is a valid claim as per the terms and conditions of policy then, having N number of other life insurance policies cannot become the reason for not getting claim settled. You can claim under all policies.
Before answering this, I have a question - What benefit you are expecting from insurance company by doing so?
If the case is that, sometimes your friend also drives the car and you are not sure if the claim is admissible in case of accident when he is driving, the answer is -
The claim is admissible under your motor policy, provided he has a valid driving license. Not only your friend, anybody else who would be driving your vehicle should have a valid driving license.
In case of any bodily injury to your friend, it is automatically covered under Indian Motor Insurance policies under Third Party liability.
So, I don't find any need for you to add your friend to your insurance policy.
Insurance is subject to making your financial loss good. Hence in case of loss to car, only the owner of the car would be the insured to get the claim paid.
In some of the countries outside India, there is Named Driver concept, where in you can add your friend as a named driver under your car policy but not as the main insured.
The basic feeling among people while buying Term life insurance is - "What if we do not die during the policy term?" All premiums paid are wasted.
But actually its other way around. In other life insurance plans with maturity benefit, there is a lose of premiums paid in both the cases - either you die or survive.
Because for this extra benefit apart from death benefit, the insurers charge extra premium, which is quite high when compared to premium for term insurance.
So if the insured dies during the term, he will not get any maturity benefit, although he has paid that extra premium. Hence this extra premium paid every year is wasted.
And if the insured survives till maturity, he will get maturity benefit but the premiums paid for death benefit are wasted.
This is main reason why, you should not go for investment options or maturity benefit options in life insurance. Secondly, there can be better returns in bank FDs than the maturity benefit for the extra premium you pay.
We have other kind of investments for taking care of our retirement or old age.
Life insurance is purely to take care of your family from financial crisis in case of your death.
At personal level, Life Insurance is a guarantee of financial security to your family in case of your death.
At society level, it is a social security system which helps by pooling of money for the one who will incur a loss.
At business level, it is a contract between life being insured and the insurance company. The insurance company promises to pay a pre-agreed lumpsum amount called sum insured in case of death of the insured in return of a amount called premium.
The definitions above reflects the advantages of life insurance at various levels.
Well, there are a number of plans available in market which gives not only financial security upon death but also benefits like - return of premiums, money back policy, unit linked policies etc.
But life insurance is advantageous only if purchased for the purpose of insuring life and not as investment.
Yes, the life insurance premiums would be at a hike now because of increased death rate. Companies like ICICI Lombard & Tata have already revised their life premiums.
There is 20% hike from the earlier premiums. The fact is, nothing looks cheaper unless it becomes more expensive.
But the people who already have bought the policy earlier to this, the same existing premiums will continue.
I can share with you a health plan which I have for my family and suggest the same to anyone in need.
Having a sum insured of atleast 30 to 40 Lakhs is very important now a days to be prepared for future uncertainties. But the question is - 'how can we get this in our budget?" The answer to this question would be your ultimate health insurance guide.
I have studied all the items of coverage in a standard health insurance plans, all the different types of health insurance products in market, and latest new types of coverage items being included in health insurance plans.
After thorough study and comparisons, I have found some smart solutions to get the best coverage by a combination of policies to customize as per our needs.
Buy a combination of a Super top up health insurance and a regular health insurance policy.
A Super top up health insurance policy covers your very high sum insureds at a very low premium. The reason for this low premium is - a high deductible amount. Let me tell you what is a deductible. It is the medical expense which is covered as per the policy terms and conditions but the Insurance company does not pay. The expense is payable only when the total medical admisible expenses during the year crosses the deductible amount.
I have 3 policies for my family of Self, spouse & 1 kid.
One is my Spouse's Corporate health insurance for a sum insured of 3 Lakhs.
Second is a super top up health insurance with 3 Lakhs Deductible & 10 Lakhs Sum Insured. (Premium: 3,372/- per annum)
Third is one more Super top up policy with 10 lakhs deductible & 1 Cr Sum insured. (Premium: 1471/- per annum).
So I have a cover of 1 CR at less than 5000/- premium for my family.
Soon we would be launching a booklet for a perfect health retail health insurance guide. Follow us at Best Insurance Brokers in India | Ethika Insurance Broking Pvt Ltd | India
for the same.
This booklet will be giving you many interesting and smart solutions to match the different kind of needs on the people for health insurance.
I would like you to consider Life insurance as an option for securing your family in your absence.
Because investment is something for which you should get some good returns in future. In insurance this is not possible. To know why, please follow my answer on Susheel Agarwal's answer to Which is better and why: term or whole life insurance?
I always recommend you to go for pure life secure options rather than maturity benefits or return for invested premiums.
Because return is not guaranteed. It is only if you survive. If you don't, all the extra premium paid for returns on maturity will be lost.
If you survive, all the premiums paid for death benefit are lost.
So instead of paying expensive premiums, better invest that extra premium in such a way that, you should get returns for the amount spent to get maturity benefit. Either you die or survive. And when it comes to death benefit, go for a term life insurance plan.
It is a good amount for next 5 to 10 years. But considering inflation it may not be sufficient in further years. Hence it is good to go for Term life insurance plans with increasing sum insured option. The sum insured will be doubled in 15 years.
it starts increasing by 10% every year from 6th year of the policy.
You may either wait for next 5 years and then buy another term plan with increasing sum insured. There can be further smart options coming up in life insurance industry in next five years.
In India, you will not be able to drive on road unless there is an active motor insurance at least up to TP Liability.
Considering the lockdown, I have also thought if I can either delay in insuring the vehicle or if I can go only for TP liability, but upon late payment, there is a chance to lose the No Claim Bonus discount which keeps increasing every claim free year upto 50%. This discount is applied only on Own Damage cover and will expire if not renewed for 3 months.
You will have a grace period of 30 days after the expiry of the policy to continue the cover without any lapse. During which the cover is granted upon inspection of the vehicle.
Health insurance policies covers expenses for covid-19 only on hospitalization. That too there will be a waiting period of 30 days from policy inception.
Hence if you are looking specifically for Covid-19 cover, you should prefer buying the standalone special plan for Covid-19.
There is no pre-medical screening required to get the cover but the only condition is, there should not be any recent foreign travel history.
The most comprehensive cover is provided by Reliance General Insurance in collaboration with Paytm.
The Sum Insured is 2 Lakhs. The policy covers not only the treatment costs but also Loss of pay & Quarantine expenses. There is an optional cover as well to waive the exclusion of travel within 45 days before policy inception.
You can directly buy through Paytm or you can approach an Insurance broker (Best Insurance Brokers in India | Ethika Insurance Broking Pvt Ltd | India ) to have support right from policy issuance to the settlement of claims.
Unlike health insurance, life insurance has limited criteria to compare among the plans of various insurance companies. Once you finalize which plan type, there are only 2 things to check - one is premium and other is Company's sustainability and claim settlement ratio.
For the plan I would suggest you to go for Term plan with increasing sum insured option. Don't go for any riders or additional covers. There are better alternatives to avail those benefits.
If you wish to know the company's sustainability, always look for the management team and why they are associated with company. How is the company performing since last decade. What their employees say about the company (can find at glassdoor). What is the claim settlement ratio so far.
I found that ICICI is doing really good in terms of growth and also settlement of claims.
Premiums are also competitive at ICICI.
One more option is, always be associated with an insurance broker. They will have a specific team to deal with claims of their clients. They act as your representative to deal with insurance company right from policy issuance till the settlement of claim. Since they deal on daily basis, they will have expertise which you may not. Youc an reach us at Best Insurance Brokers in India | Ethika Insurance Broking Pvt Ltd | India .
You can get a perfect answer in the below mentioned link.
Susheel Agarwal's answer to Which is best for life term insurance, LIC or HDFC Life? Is it recommended to get coverage with private players?
The most needy insurance cannot be same for every person.
According to me, for people who have no dependents, Super Top up Health insurance is the most needy insurance.
For people who have dependent family, then Life insurance as well as Super Top up health insurance both are most needy insurance. One is to support your family if you die and other is for you & your family to live long.
Super top up health insurance is just like a lifeline at lowest cost which everyone of us must have, whether you have regular health insurance or not.
Please visit Super Top Up Health Insurance Policy | Ethika Insurance Broking Pvt Ltd to know how Super top up health insurance works. You can get to know the premiums from various insurers in 10 seconds.
Waiting period is the time for which policy is in force but still the claim is not considered.
What are the common waiting periods:
There are mostly 3 types of waiting period in a standard health insurance policy:
1: 30 days waiting period at inception
2: 2 years waiting period for some specified illnesses like cataract.
3: 4 years waiting period for pre-existing illnesses.
Other types of waiting periods:
There will be a waiting period of 2 to 5 years to cover the maternity benefit.
There will be a waiting period of 90 days in critical illness benefit policies.
Why it is needed:
If there will no waiting period in the policy, people will buy the policy only when they are actually going to claim. Hence to avoid this, different types of waiting periods are introduced with respect to the ailment.
So far in India, there are no such exclusions for a pandemic outbreak causing a catastrophic loss to insurance companies. In case of Covid-19 as well, the losses were considered by life & health insurance companies as per the terms & conditions of policy.
You are right that this kind of situations are expected in future as well. Hence insurance companies has revised their premiums to meet the increased risks in the society.
Secondly, insurance companies are also re-insured with the reinsurance companies to save themselves from catastrophic losses.
If by opting deductible, there is a good discount in premium, you can opt for a low deductible. Well I can tell you some solution where you can go for very high deductible which will give you very low premiums for your health plan.
I have an insurance from my employer for a sum insured of 3 Lakhs. But this is not sufficient for my family to be secured with critical illness contingencies.
Hence I purchased a plan with a deductible of 3 Lakhs and a sum insured of 20 lakhs. This costed me only INR 4500/-.
This is how deductible was very useful to me to lower the premium in my health plan.
You can get a lower waiting period in Senior Citizen health plans available in the market. But you need to be careful with the co-payment conditions.
I would recommend you to go for Bajaj Silver Health plan. This plan has no co-pay in network hospitals and only 1 year waiting period for pre-existing illness. There is 4 years waiting period for joint replacement. However, cover is subject to pre-medical screening.
I would also suggest you to take help from broker to design a cover for you by a combination of good plans in the market. You will get support not only during policy issuance or getting quotations from various insurers, but you will also get complete support during claims.
In term insurance, the premium remains the same through out the term of the policy including the critical illness rider benefit.
But if you are asking generally for knowing the ratings in tariff, the tariff rates ranges with an increase of approximately 35% in critical illness premium for ever 5 years.
If you wish to have immediate financial security to face the unforeseen events, insurance is the only means. Such events never wait to happen only when we have some savings. This can happen anytime. There are 2 most important insurance if you are the breadwinner for the family. 1. Term Life insurance 2. Super top up health insurance. **1)Term Life Insurance: ** Go for a term life insurance plan with increasing sum insured option. This will help you have coverage as per inflation at low premiums. Do not go for any riders in the life insurance. There are better alternatives for the same. You can go through an article on this at Better alternatives for Optional covers in insurance policies (https://www.linkedin.com/pulse/better-alternatives-optional-covers-insurance-policies-agarwal) . **2)Super Top up Health Insurance:** Super Top Up health insurance helps you have a very high sum insured at very low premiums. Because this comes with a high deductible. Deductible is the first loss amount which an insurer does not pay. This has to be borne by us. But next big sum insured is covered under this policy. Hence prioritize this over base sum insured regular health plans. Let me tell you why: You would be paying a premium of around 10K for securing your family for a sum insured of 5 lakhs, But the most probable losses are expected to be only 30 to 40 thousand. The medical expense of rare possibility like heart attack, cancer or any such similar ailments can cost you more than 20 lakhs. The persons to whom this occurred, never thought this can happen with them. Irony is, most of them were unprepared to handle such huge medical expenses. Hence go for super top up insurance which costs you really low when compared to other plans and helps you to be secured for such contingencies. You can skip at once to buy a basic health insurance policy of 5 Lakhs Sum Insured for premium of 10 to 15K. That amount is still manageable in case it occurred. The probability has increased heavily for critical illnesses. The moment I say cancer, or heartattack, everyone of us can recognize one or more such cases in our near and dear ones. I have purchased a health cover of 1 Cr with a deductible of 10 Lakhs for my family at just INR 1471/- per annum. I also purchased another Super top up policy with a sum insured of 7 Lakhs and deductible of 3 Lakhs at just INR 4500/- per annum. For knowing what can suit you best as per your requirements and budget, you can always take help from an insurance broker. Having a broker will help you not only in getting quotes from various insurers but also in claims settlement.
The Health Insurance comes with continuity benefits which you may lose once discontinued. Moreover its hard to get a fresh policy after a certain age, but once you have a policy in force, you can renew it lielong till any age.
Hence I would suggest you to port your policy to a good insurer or change your health plan/product if you are not satisfied with existing terms and premiums. But do not discontinue the cover. You can take help from a broker to get idea on what is the best product as per your need.
I am surprised a little, when people are jumping to buy a health & life cover due to this increased risk of loss by corona virus, you are thinking of dropping a cover which you already have.
You can follow below steps to be successful as an insurance agent.
Know your Product:
Firstly, know your product very well. Have a good comparison from market. Have a good explanation how your product is best from market.
Target right Prospects:
No single product can suit to everyone. Select your target audience according to the best features of your product from market. For example, if you have best maternity cover in your health product from market, pitch on that.
Target good number of prospects:
Reach out atleast 10 prospects as above everyday.
Watch sales training videos, attend sessions. In one such session I learnt that,
People want outcome, not the solution. People don't want to listen what can happen, but they are very much interested to know what already happened.
For example: After this Corona Outbreak, we started getting a ringtone in our phone about the safety measures. How many of us heard it properly? Even though it is for our own benefit for no extra cost?
But when a news came: "59 people of same building were found Corona Positive. Few of them saved as they were taking safety measures properly." Now tell me how will be the impact?
Go out in the market with intentions of helping people to save them form some financial distress, not with an intention of how much business you can derive.
Once you make some good sales, Referrals starts coming in by word of mouth of existing clients.
Lastly I would say, If you have worked on any of the steps above, its a success for that day and not just by getting some lead and converting it.
Because, this is the success path, walk on it and wait for the results to shower in some time ahead.
We have a saying from our spiritual books:
"Karm Kar, phal ki iccha mat rakh."
'Neki Kar Dariya me Dal."
Which means, Do Good with out expecting anything in return.
Initially I use to feel - isn't it crazily difficult? But my mentor gave me right understanding to these phrases.
You do your job, rest leave it to God. Results will automatically come. It need not be the way you desire. its just the matter of intentions.
Hope this will be helpful to you. We as insurance broker (Best Insurance Brokers in India | Ethika Insurance Broking Pvt Ltd | India ) has wider audience as we deal with all the insurance companies. Hence we can have best product in the market for every need.
Good news is, when most of the online selling non-essential items are at halt, insurance is still being sold. Even if there is a requirement of some pre-medical checkup, it is now possible as most of the private hospitals are resuming their services. The insurance business comes under essential services and hence the offices are open and active during this lock down. You can reach us at Best Insurance Brokers in India | Ethika Insurance Broking Pvt Ltd | India (http://www.ethika.co.in) for smart solutions to all your insurance needs.
If you already have a life insurance policy in force, claim is payable for the death due to Covid-19.
If you have a critical illness cover along with your life insurance or health insurance, Covid-19 cannot be considered as a critical illness under this policy, because, the critical illness cover has a list of named diseases which have been agreed under the policy schedule. Covid-19 is not listed in any of the critical illness policies.
If you do not have a policy already and planning to buy one now, there will be definitely an impact of covid-19. The premiums are already revised by insurers with an increase of more than 30%.
You will have to mention in the proposal if you have already tested positive for corona infection. Then the insurer will decide whether to reject or accept the proposal with a loading in premium.
Its very simple to buy corona cover insurance policy.
As there is lockdown the insurance companies have collaborated with online sites like PhonePe, Paytm, Flipkart etc. to sell this covid specific policies.
The Paytm home page displays as below.
You can refer to the answer Susheel Agarwal's answer to Can we buy health insurance only for the coronavirus? for knowing more about covid policies in market.
There is only one health insurance plan for Cancer in Max Life Insurance. Just Cancer cover will not serve your purpose because, there are many other critical illnesses and who knows which one might hit. Hence it is advisable to go for a plan which will help you with adequate sum insured for whatever the illness may be.
You can opt for a super top up health insurance policy. Please refer to answer
Susheel Agarwal's answer to What is super top-up insurance? to know more about super top up insurance.
As per Godigit Transpeancy Report 4.0, they have improved on their underwriting strategies to avoid any misrepresentation of facts by the insureds. Hence they have improved on their loss ratio and claims settlement ratio.
Good Claim settlement does not mean just settling 100% claims. It also means to avoid fraudulent claims so that the good buyers will not suffer and the company will also not run in losses.
Godigit is awarded as General Insurance Company of the year in 2019 by Asia insurance Industry. Within just 2 years of its existence.
Godigit is one of the most competitive insurance company in India. It has the cheapest premiums for the most widest coverage among all health insurance companies.
I work for an insurance broking firm. We deal with almost all the insurance companies for our clients. Right from the policy issuance till the claim settlement Godigit is rated very high by our team in terms of service.
Its not that Life insurers are not selling health insurance. Because most of the insurance companies like ICICI, Future Generali, Tata, HDFC, Max etc. are both into life and general insurance.
They may use the clientele from life insurance as prospects to buy their health insurance products from their general insurance sector. The companies like Godigit, Star health etc. who does not have any life insurance branch will not have such opportunity. But still they are performing better than the companies who have their hands in both general and life insurance.
Selling a health package through their life insurance sector is not fully open because, in India, Life insurance is restricted to be a benefit policy zone only.
Benefit policies means, benefit is directly payable to the insured/nominee in full as per the terms of policy. Insured can have more than one policy and claim from all policies.
This is not possible in case of health insurance. Health insurance policies are indemnity policies which are settled based on the bill amount. The amount will be directly paid to the hospital.
Indemnity means - to make the loss good. No body can profit out of loss. Hence you will not get paid more than the bill amount even if you have more than 1 policy.
This is why health insurance comes under General insurance category in India, although it is a part of Life insurance in most of the foreign countries.
However, Health insurance packages like Critical illness cover is allowed to be sold through their life insurance sectors as they are also kind of benefit policy. A lumpsum sum insured is paid directly to the insured in case insured is diagnosed with critical illness as per the terms and conditions of the policy.
Personal Accident insurance forms a part of general insurance in India all though it's more of benefit policy. This may be switched to life insurers over a period of time but not health insurance.
Allowing health insurers to sell life insurance or life insurers to sell health insurance will simply makes it unimportant to have different entities of the same insurer for selling insurance. The main problem will arise at the capital requirement which the insurers have to make with IRDA. There is a specified capital requirement for both life & general insurance companies in India. If the life insurance company starts selling health insurance, the capital deposited with IRDA may be impacted. The solvency ratios will also be impacted.
Every health policy will have a waiting period of 30 days during inception except in case of an accidental hospitalization.
So, if yours is an accidental claim, yes, you can claim immediately after buying.
This waiting period is applicable only for a fresh health policy. On renewal this is not applicable. If you have just renewed an existing health policy, then you can surely claim for illness other than accident as well.
The insurance contract commence from the date and time as mentioned and agreed in the proposal form and premium is paid to the insurer.
If there is a delay in issuing a policy and the premium is paid already, a cover note is issued by the insurer which defines the coverage and acts as a proof of insurance and the cover is active as on the date it has to be.
Now a days, policies are generated online and a soft copy is sent immediately to the insured with in a day.
In Critical illness policies, the contract will commence on the decided date but there will be a waiting period of 90 days for the coverage to be active. If the insured is diagnosed with any critical illness during waiting period, it is not covered under the policy.
If you have more than 10 employees, then you can go for a group insurance. The premium will be paid by company's account and the benefit is paid to you and your family.
You can approach an insurance broker for helping you to get a customized solutions for all your insurance needs.
Insurance comes under one of the essential services. As per guidelines from Govt. along with other essential services like Banks and hospitals, Insurers are allowed to keep there offices running to serve the needs of their customers.
Well, with the help of technological development most of the activities are taken care online.
IRDA is issuing guidelines from time to time for some relaxations to take care of the insured's interests during lockdown.
Not only this, insurers are also finding prospects through social media and issuing policies.
I feel instead of just depending on Govt. or being judgemental on the decisions of Govt. we better be responsible for our own actions.
Sitting isolated at home for such long times is effecting adversely many other ways.
We must adhere to guidelines fully. Making sure that we and our people around us are following guidelines for wearing masks, sanitizing and keeping a distance in case of any symptoms of Covid-19 will truly help the Unlock 1.0.
Its time we have to live with it.
Please refer below link which would help you be prepared further to face this UNLOCK.
Susheel Agarwal's answer to How will unlock 1.0 in India impact the health of people?
A material fact under insurance contract is -
any situation or information which can increase the frequency and/or severity of loss which is covered under that particular insurance contract.
A Dog bite could be a material fact for a health insurance contract which has to declared by the proposer to the insurance company. But this is not a material fact in case of buying a home insurance.
Secondly, just declaration of fact is not enough to satisfy the condition of material fact. It is also important to be accurate and complete.
In short, any miss-representation or non-disclosure of even a part of information is considered as violation of material fact clause.
Its always advisable to take the help of insurance brokers to avoid anything which can disqualify your claim in future. Good part is, it will not cost you anything.
Generally people end up thinking of Hypertension, BP, diabetes etc. as pre-existing health issues because those are still continuing with their health. But this is not all.
Many health issues which might have no impact as of now but had occurred sometime in the past and a past which could be as old as 25 years ago, is also a material fact and has to be mentioned in the proposal form.
Material Facts in health insurance are any incident or a health issue happened in the past or even birth issue which can increase the frequency and/or severity of any illness in future.
And disclosing the information is not enough. Accuracy and entirety of the information is equally important. You will have to make sure there is no misrepresentation or non-disclosure.
I have taken a complete 1 Cr insurance for my family and the extended family recently. If you ask me, with God's grace all are healthy.
I would like to raise few of health conditions of my family here which were material facts and I have disclosed to the insurer.
- My husband had an appendix surgery 10 years ago. During which his gallbladder was also removed.
- My daughter is a pre-term baby. She had cardiac issue but it's completely healed till she grew 6 months.
- My parents-in laws have met an accident in 1995. My mother-in-law could not survive. My father-in-law had severe injury in the right thigh. There is a rod fixed during treatment. With his strong will power to walk on his legs for his 2 small kids, he could successfully walk in 1 year. He walks as a normal person. Since last 25 years there was no further complication or treatment.
- My uncle had a dog bite 15 years ago.
- My co-sister had 2 miss-carriage.
- Brother-in-law was diagnosed with Jaundice 2 years ago.
- My second uncle had a clot in his brain. It got treated without any hospitalization. But still, his policy was rejected. We are unable to get any retail health policy for him.
- My sister-in-law has asthama.
You must be thinking, if while buying a particular health policy you have undergone a premedical check-up then the company has no rights to decline a claim for any information which might reveal out in future. But it's not so. The pre-medical check-up will be very basic in nature and can't help in predicting every health issue.
The health issues like common cold, cough or fever are not required to be shared as a material fact for health insurance.
The treatment for any kind of pre-existing issue is not completely same with all insurance companies. Few may reject completely or few may accept after a loading.
If you have any pre-existing issue, major or minor, you can reach us at www.ethika.co.in to know more about which Insurance Company favours your situation. We are Insurance Broking organization and we deal with a number of such situations daily.