An Home Loan Protection Plan repays the outstanding loan if the borrower dies or suffers a covered disability.
Understand your travel insurance policy before travelling abroad this summer. This article outlines what travel insurance covers, including trip cancellations, missed connections, and medical emergencies, and what it excludes, such as war-related disruptions and pre-existing conditions.
'Many policyholders do not understand that non-medical expenses, cosmetic treatments, and certain other procedures are not covered by health insurance policies.'
As heart disease increasingly impacts young Indians, understanding the complexities of health insurance, including higher premiums, waiting periods, and the benefits of specialised cardiac policies, becomes vital for financial protection.
Young buyers often underestimate future health risks.
With winter holidays approaching, some Indian travellers will venture abroad. Many will be underprepared for medical and other travel-related risks. Trip disruptions, missed connections, and steep medical costs in developed countries can leave travellers exposed if they underestimate the coverage they need.
'Pick a sum insured that realistically covers major hospitalisation costs in your city.'
'Reviewing terms such as war, invasion, acts of foreign enemies or hostilities, which often appear in industry exclusion lists, can help avoid surprises at the time of claim.'
Buyers should understand the distinction between the losses the policy covers, those that need add-ons, and those it excludes.
To handle the sudden loss of cashless facility, patients should maintain an emergency fund or a short-term credit line to manage all or part of hospitalisation costs.
With medical inflation hovering at around 13-14 per cent annually, policyholders must reassess their sum insured once every two years.
Younger customers should opt for increasing cover as their financial commitments are likely to rise in the future.
'As we get older, our health risks increase, and this makes health insurance significantly more expensive for seniors.'
Banks offer a wide range of group insurance plans -- personal accident, health, hospital cash, home insurance, credit protection, and critical illness.
Fraudsters lure individuals with false promises of recovering bonuses or maturity proceeds from lapsed policies.
Health insurance claims are often denied due to exclusions in policy terms. Buyers frequently overlook the fine print or misinterpret clauses.
'Splitting must result in tangible benefits for the customer, otherwise it will only mean more work for them in maintaining the policy and for their nominees.'
Consider a combination of a base policy and a super top-up policy.
Avoid relying on a bank RM for investment advice. Instead, approach a Sebi-registered investment advisor whose livelihood depends on the fee paid by his customers and not on product commissions.
