When it comes to obtaining life insurance, there’s no one-size-fits-all approach to determining premiums. Insurance companies consider a multitude of factors to assess an individual’s risk profile, ensuring that the coverage offered aligns with the potential risks involved. Among these factors, health and lifestyle play a crucial role in shaping the cost of life insurance premiums. Let’s delve into how these factors can impact your life insurance premiums.

Health factor

Your medical history is a key determinant in the calculation of life insurance premiums. Pre-existing conditions such as diabetes, hypertension, heart disease, and cancer can lead to higher premiums due to the increased risk they pose. Insurance providers meticulously assess these conditions to gauge the potential impact on your lifespan and overall health.

Another health-related metric considered is Body Mass Index (BMI). A higher BMI often indicates health risks, which can result in elevated premiums. This is because obesity is associated with various health issues, including cardiovascular diseases and diabetes.

Tobacco and alcohol use are significant contributors to health risks. If you’re a regular tobacco user or engage in excessive alcohol consumption, you’re likely to face higher premiums due to the heightened likelihood of associated health complications.

Moreover, your family medical history is assessed to determine any genetic predispositions to certain illnesses. If your family has a history of conditions like heart disease or cancer, insurers might adjust premiums to reflect the increased likelihood of these conditions affecting you.

Undergoing medical tests is common during the application process. The results provide insurers with an objective assessment of your health status, which in turn influences premium calculations. Positive test outcomes may lead to more favourable premiums while concerning results might result in higher costs.

Lifestyle factor

Your lifestyle also significantly impacts life insurance premiums. Certain occupations entail higher risks due to exposure to hazardous environments or physical demands. Jobs in industries like mining, construction, aviation, and offshore drilling are often deemed higher risk, potentially leading to elevated premiums.

Engaging in high-risk hobbies and activities like extreme sports or adventure pursuits can increase premiums. These activities raise the likelihood of accidents or injuries, which insurance companies take into account when calculating risk.

Frequent travel to regions with health risks, political instability, or high crime rates might influence premiums. Travelling to areas with prevalent diseases can also impact the cost of insurance due to the associated health risks.

Your driving behaviour matters too. A history of accidents, traffic violations, or reckless driving can lead to higher premiums, as it indicates a higher likelihood of premature death or injury.

Financial stability is also considered. Insurers often view a stable financial position as an indicator of responsibility, potentially resulting in more favourable premium rates.

Substance abuse, including tobacco, alcohol, and recreational drugs, can significantly raise premiums due to the health risks associated with these habits.

While not directly factored into premium calculations, maintaining a healthy diet and lifestyle can contribute to better overall health. This healthier profile might result in more competitive premiums.

Stress levels can indirectly impact health. High-stress professions or lifestyles might lead to various health issues. Managing stress through relaxation techniques can positively affect premiums.

Consistent lack of sleep or sleep disorders might lead to health complications, potentially influencing premium calculations.

A history of mental health disorders might influence premiums, especially if they impact life expectancy or overall health.

Safety precautions in daily life, such as wearing seat belts and helmets, can demonstrate responsible behaviour, potentially impacting premiums positively.

Some insurers offer incentives for regular health screenings or wellness programs, which can lead to discounts on premiums. Maintaining a healthy weight through exercise and proper diet can contribute to better health and potentially lower premiums.

It’s crucial to provide accurate information during the application process, as the impact of health and lifestyle factors on premiums can vary between insurance companies. Working with an experienced insurance advisor can guide you through the process and help you find the most suitable coverage at an affordable cost.

Remember, the goal of life insurance is to provide financial security for your loved ones, and understanding how these factors influence premiums can help you make informed decisions about your coverage.

The idea of owning a car evokes emotions like no other. It gives us a sense of freedom and endless possibilities that lay open—something that has often been romanticized in movies and novels. You too would have imagined yourself going on those picturesque drives, turning up the music, and driving off into the sunset. But while you plan to embark on great adventures, car ownership comes with great financial responsibility, making car insurance a crucial component.

As a responsible car owner, buying appropriate car insurance is not only a legal obligation but also a critical step in safeguarding your valuable assets and protecting your financial future by ensuring against financial security. And yet, car insurance is often perceived as a mere formality, with many car owners buying it without much thought. That’s largely due to the vast array of insurance providers and policy options that make selecting the right car insurance an uphill battle. To simplify this arduous task and assist you in making an informed decision, here’s a look at five key factors one must consider when purchasing car insurance for the first time:

Coverage That Suits Your Needs

One of the most vital considerations when buying car and motor insurance is the kind of coverage it offers. Most of the policies available on the market generally include two primary types of coverage: third-party liability and comprehensive coverage. Third-party liability insurance provides coverage for damages one might cause to someone else’s property or injuries to others in the event of an accident. When it comes to comprehensive coverage, it safeguards the insured by covering third-party liability and also covering damages to their vehicle due to accidents, theft, vandalism, and natural disasters (as per the policy). Thus, by factoring in your requirements, driving habits, and the value of your car, you can narrow down the best-suited coverage option.

Understanding Deductibles and Premiums

Having decided on the coverage option, the next crucial aspect of buying car insurance involves contemplating the deductible and premium structure. Since the deductible denotes the amount that one is subjected to paying out of their own pocket before their insurance coverage comes into effect, it can have a significant impact on the premium amount. For instance, opting for a higher deductible can lower your premium, but it will increase your immediate expenses in the event of a claim. On the other hand, a lower deductible will lead to a higher premium, but it can relatively reduce the financial burden at the time of a claim. Hence, you must analyze your financial capabilities to pay the deductible and choose a balance that is in sync with your budget and risk tolerance.

Extend the Scope of Your Policy with Add-On Covers

Regardless of the insurance provider one opts for, understanding the add-on coverage offered by them can serve as a platform for extending the scope of your policy. Today, modern-day insurers offer various add-on covers that could include zero depreciation covers, engine protection, and roadside assistance, among others. Though these add-ons do increase your premium, they adequately make up for it by providing extra protection that can prove valuable in dire situations. Given your driving pattern and the condition of the vehicle, you can specifically opt for the add-ons that would be beneficial for you. When purchasing car insurance for the first time, tailoring your policy with relevant add-ons can help enhance the coverage that suits your specific needs.

Evaluate the Insured Declared Value (IDV)

Determined by the current market value of your car, the Insured Declared Value refers to the maximum amount the insured can claim in case of a total loss or theft of your vehicle. Since a higher IDV leads to a higher premium and vice versa, it is essential to choose an appropriate IDV that accurately reflects your car’s true value to avoid underinsurance or overinsurance scenarios that can have serious consequences during the claims process. That’s why you must consult with the insurance provider or use online tools to determine the appropriate IDV for your vehicle. This key consideration will enable you to receive fair compensation in the event of a significant loss and help you avoid financial setbacks.

Compare Quotes and Read the Fine Print

After you’ve spent countless hours contemplating the aforementioned points, the last and definitely not the least consideration should be given to comparing multiple quotes from insurance providers and reading their fine print. Just like other things, you must not settle for the first insurance policy that comes your way. Making use of credible online tools, one must take the time to compare the quotes from different insurance firms and look beyond just the price, considering the coverage, deductibles, and additional benefits offered in each policy. Once you’ve chosen the policy, factoring in all key elements, don’t forget to read the policy documents before making the purchase. After going through all the terms, conditions, and clauses mentioned in the policy, you should not hesitate to seek clarification from the insurer in case of any doubts.

Afterword

Arguably one of the most underrated components of car ownership, purchasing car insurance demands thoughtful consideration and a thorough understanding of an individual’s requirements. The right policy should not only comply with legal obligations but also provide adequate coverage for your specific needs. By taking into consideration key factors such as coverage options, deductibles, premiums, add-on covers, and the Insured Declared value, one can make an informed decision that helps in attaining both peace of mind and financial security. When buying car insurance for the first time, remember to compare policy quotes from multiple insurers and read the fine print diligently before making the payment. Bolstered by this knowledge, you can efficiently navigate the confusing technicalities of car insurance to procure a policy that safeguards you against unforeseen risks while driving on the road.

In order to shield their finances from potential losses and damage to their properties, it is imperative for homeowners to be protected with home insurance. The subject of whether home insurance costs are deductible from taxes does come up frequently among Indian homeowners, however, the Income Tax Act of 1961 currently prohibits the direct deductibility of home insurance premiums. Indian tax regulations do not make any provisions for specifically deducting the premiums paid for house insurance when determining taxable income, unlike other insurance services like life insurance or health insurance.

Although home insurance might not offer tax benefits directly, it’s crucial to take into account the overall financial protection it offers. Homeowners must balance the possible tax benefits with the peace of mind that comes from knowing that their most valuable possession is sufficiently safeguarded in case of unanticipated circumstances like fire, theft, or natural catastrophes. It is important to remember that India’s tax laws and regulations are dynamic and might change over time. For the most up-to-date and accurate information on the tax deductibility of home insurance premiums, it is wise to keep up with the latest tax laws and consult highly trained PoSPs like the ones associated with insurance brokerage services such as Policy Ensure.

Other tax benefits for homeowners

Despite home insurance not being tax deductible in and of itself, homeowners can look into alternative options to obtain tax benefits associated with their properties. For instance, under Section 24(b) of the Income Tax Act, those who have taken out home loans may be eligible for deductions on the interest paid. In addition, homeowners may deduct, up to a certain amount, the principle of their mortgage payments under Section 80C. Through riders or add-on covers that are included with some home insurance policy cost, one can also potentially obtain tax savings. These add-ons may provide coverage for certain hazards or objects, such as jewelry, electronic equipment, or the cost of external accommodation in the event of property damage. These add-ons can also qualify for tax deductions depending on the specifics of the policy. To ensure compliance with tax rules, it is crucial to carefully analyze the policy documents and speak with tax professionals or insurance broker PoSPs.

At a glance: Home insurance and tax benefits

While the cost of house insurance itself is not tax deductible in India, property owners should not undervalue the importance of protecting their houses with sufficient insurance policy coverage. Home insurance offers security and peace of mind against unforeseen hazards that far outweigh any potential tax advantages. It’s important to keep in mind that tax regulations often change, therefore, for smart financial planning and maximizing attainable tax benefits, staying informed on the most recent developments and seeking competent guidance are crucial. To conclude, purchasing home insurance remains a wise move to safeguard one’s most valuable asset and provide long-term financial security. 

When it comes to insuring your vehicle, it’s essential to choose the right type of motor insurance that suits your needs and offers adequate protection. In most countries, there are two primary options: comprehensive motor insurance and third-party motor insurance. Each type has its advantages and drawbacks, and understanding the differences between them is crucial for making an informed decision. This article aims to compare comprehensive and third-party motor insurance in terms of coverage, cost, and important considerations to help you choose the most suitable policy for your vehicle.

Coverage

Comprehensive Motor Insurance:

Comprehensive motor insurance, as the name suggests, offers extensive coverage for various scenarios. It not only includes third-party liability coverage but also covers damages to your own vehicle. In the event of an accident, theft, fire, or natural disasters like floods or storms, this type of insurance will reimburse you for repairs or replacement of your vehicle. Moreover, comprehensive insurance usually covers personal accident benefits for the driver and passengers, medical expenses, and legal liabilities arising from accidents.

Third-Party Motor Insurance:

Third-party motor insurance, on the other hand, provides coverage only for liabilities towards third parties involved in an accident caused by the insured driver. This includes compensation for injury or death of third parties and damage to their property. However, third-party insurance does not cover any damages to your own vehicle. It is the most basic form of auto insurance mandated by law in many countries.

Cost

Comprehensive Motor Insurance:

Comprehensive motor insurance typically comes with a higher premium compared to third-party insurance due to its wider coverage. The premium amount depends on various factors such as the vehicle’s make and model, the driver’s age and experience, previous claim history, and the location where the vehicle is primarily used or parked. While the upfront cost may be higher, the additional protection and peace of mind make it a preferred choice for many vehicle owners.

Third-Party Motor Insurance:

Third-party motor insurance is generally more affordable as it covers a limited scope of risks. While it provides the necessary legal coverage, it might not be sufficient for those seeking greater protection for their own vehicle.

Considerations

Vehicle Value and Age:

The value and age of your vehicle play a significant role in deciding the type of insurance you should opt for. If you own a brand-new, expensive car, comprehensive motor insurance would be a wise investment to safeguard your substantial financial outlay. On the other hand, if you own an older vehicle with a lower market value, third-party insurance might suffice.

Personal Financial Situation:

Your personal financial situation should also be considered when choosing insurance. If you can afford a higher premium and want comprehensive coverage, it could save you from significant financial burdens in case of accidents or damages. However, if you have budget constraints, third-party insurance might be the more viable option.

Driving Habits and Location:

Assess your driving habits and the environment in which you drive regularly. If you frequently commute in heavy traffic or live in an area with a high incidence of accidents or thefts, comprehensive insurance could be beneficial. Conversely, if you rarely use your vehicle or drive in low-risk areas, third-party coverage might be sufficient.

Additional Riders and Deductibles:

When choosing comprehensive insurance, consider the additional riders available, such as roadside assistance, zero depreciation, or engine protection. Additionally, check the deductible amount, which is the portion of the claim you’ll have to bear in case of an incident. A higher deductible can lower your premium but might increase your out-of-pocket expenses during a claim.

In conclusion, the choice between comprehensive and third-party motor insurance depends on your individual needs, budget, and risk appetite. Comprehensive vehicle insurance offers broader coverage, including damages to your own vehicle, while third-party insurance provides essential legal coverage for third-party liabilities. Carefully evaluate your vehicle, financial situation, driving habits, and location before making a decision. Ultimately, having any form of auto insurance is essential to protect yourself and others on the road, providing you with the peace of mind that comes with knowing you are financially secure in the event of an unforeseen accident.

Owing to rising pollution levels, sedentary lifestyles, and changing food habits, the incidence of critical illnesses has skyrocketed. Yet, very few people buy a critical illness cover that can offer them protection against these financially ruinous ailments. A study by PolicyX.com found that of every 100 policies purchased on their platform over the past year, only two were critical illness covers (89 were hospitalisation plans, seven were senior citizen plans, and one was an accidental cover).

How do they work?

Critical illness policies cover diseases like cancer, kidney failure, heart attack, coma, stroke, organ transplant, bone marrow transplant, paralysis, major burns, and others listed in the policy.

Says Naval Goel, founder and chief executive officer (CEO), PolicyX, “These policies cover a broad spectrum of life-threatening diseases and pay a lump sum amount if one is detected after the policy has commenced.”

Reasonable premiums

Critical illness policies usually come with a high sum insured, as the cost of treating these illnesses is very high. A Rs 10 lakh cover costs approximately Rs 3,500-5,000, depending on the number of ailments covered.

Two variants of these policies are available. Says Roopam Asthana, CEO and whole-time director, Liberty General Insurance, “First is the bundled plan which covers a range of critical illnesses. Typically, the bundles cover nine, 25, or 43 conditions. Second are the disease-specific policies, which cover one particular condition such as cancer, kidney failure, etc.” Both offer similar benefits.

Compensate for loss of income

The lump-sum payout acts as a replacement for loss of income and can also be utilised for costs that are not covered by a normal health insurance (hospitalisation) cover. Says Rahul M Mishra, co-founder and director of PolicyEnsure. “The receipt of a lump sum allows the policyholder to focus on recovery without worrying about medical expenses.”

Parthanil Ghosh, president, retail business, HDFC ERGO General Insurance Company, points out that that a critical insurance policy offers coverage even if the policyholder avails treatment abroad.

They also offer tax deduction on the premium paid.

Only listed ailments covered

One drawback of these policies is that they only cover the illnesses specified in the policy. Says Mishra, “Many policies have waiting periods before certain illnesses are covered.”

Be aware of exclusions

The exclusions vary from one insurer to another. Says Goel, “Critical illness policies do not cover dental care, cosmetic surgeries, illnesses not listed in the policies, maternity and infertility treatments, critical illness arising due to a congenital disorder, etc.”

A claim under this policy cannot be sought during situations of war or natural calamities like earthquake, tsunami, etc. Says Ghosh, “Claims will be rejected if the insured participates in or is involved in naval, military, or air force operations, racing, diving, aviation, scuba diving, parachuting, hang-gliding, rock climbing, or mountain climbing.”

Points to keep in mind

Review the list of critical ailments covered by the policy and see whether those relevant to your family’s medical history are included. Says Ghosh, “Before deciding the sum insured, assess your current health status and lifestyle habits and then determine an appropriate coverage amount that will be adequate to handle medical expenses, loss of income, and financial obligations during a critical illness.”

Check the total tenure. Says Asthana, “Some insurers put a cap on the maximum age of renewal. Check this particular ceiling before buying a plan.” It is advisable to go with a plan that offers lifelong renewal.

Ghosh suggests checking the claim settlement ratio of the insurer.

These policies come with a survival period condition. Says Bhaskar Nerurkar, head of the health administration team, Bajaj Allianz General Insurance, “The insured needs to survive for a specific number of days after being diagnosed with a listed ailment to make a claim.” The lower this period, the better.

Making a claim under this policy is simple. All a policyholder needs to do is submit the diagnostic reports for the listed ailment.

Finally, Goel suggests that if you have a family history of a critical illness or work in a risky and polluted environment, then you must purchase this plan.

Key features to look for

 Go for a policy with minimum waiting period

 Also select one with the minimal condition regarding survival after diagnosis

 Select a policy that offers lifetime renewal

 Some policies allow you to pay the premium for up to three years; some discount is available if you pay for a longer tenure in   one go  

 Many policies offer additional benefits, such as cancer reconstructive surgery, cardiac nursing, dialysis care, physiotherapy,   etc. (there may be caps on these benefits)

Inflation is an inevitable economic reality that erodes the purchasing power of money over time. As prices rise, the value of the currency diminishes, impacting your ability to afford the same goods and services. While inflation is a concern for everyone, it can be particularly worrisome for those planning their financial future, especially when it comes to retirement and providing for loved ones after they’re gone. This is where life and health insurance plays a crucial role in safeguarding your financial well-being against the effects of inflation.

The purchase value of money gradually decreases over time as a result of inflation, an unavoidable aspect of the economy. You may find it harder to afford the same goods and services if prices rise due to the declining worth of currency. While inflation is a concern for everyone, it can be particularly worrisome for those planning their financial future, especially when it comes to retirement and providing for loved ones after they’re gone. Hence, to protect your financial security from the consequences of inflation in this situation, life insurance is essential.

Preserving the Value of the Payout:

One of the primary methods by which life insurance policy shields your future finances from inflation is by offering a death benefit that keeps its true worth constant. Regardless of how the economy is affected by inflationary forces, the sum assured, or death benefit amount, for a life insurance policy stays the same. Consequently, in the event of your passing, your beneficiaries receive a payout that still holds significant value, even if it was purchased years or decades ago.

Long-Term Financial Security:

Life insurance provides your loved ones long-term financial security, ensuring that they possess the resources to cope with the effects of inflation on their standard of living. Mortgage payments, cost of education, unpaid debts, and ongoing living expenditures that can rise due to inflation can all be covered with this death benefit, ensuring a financially protected life for the policyholder’s family.

Supplementing Retirement Income:

Whole life and universal life permanent life insurance policies include a cash value component that increases over time. As an added benefit, these policies create a cash reserve that policyholders can access at any moment during their lifetime. This cash value builds up on a tax-deferred basis, which allows it to expand more quickly than taxable savings accounts. Policyholders can also augment their retirement income by accessing the accrued cash value, which lessens their reliance on other assets that might be impacted by inflation.

Inflation-Indexed Policies:

Some insurers offer inflation-indexed life insurance policies to more effectively keep up with inflation. Inflation rates or a particular consumer price index are taken into account when adjusting the death benefit and cash value under these policies. This allows the policy’s coverage to grow in step with the cost of living, guaranteeing that beneficiaries will have enough money to cover rising costs.

Avoiding Financial Strain for Loved Ones:

 In addition to safeguarding your financial future, life and accidental insurance policy offers the peace of knowing that your loved ones won’t suffer financially in your absence. Living expenses can rise significantly as a result of inflation, and without careful financial preparation, your family’s finances may be put under financial stress. By securing life insurance coverage, you create a safety net that shields them from the potentially devastating effects of inflation.

At a glance: Life insurance and protection against inflation

Life insurance is an effective instrument to protect your financial future and combat the damaging impacts of inflation. Life insurance makes sure that your family receives the support they require, even in the face of escalating costs, by supplying inflation-indexed policies, a consistent death benefit, or generating cash value. You may safeguard your family’s financial stability, take care of their needs, and leave a long-lasting legacy of security and stability by investing in life insurance. 

In our fast-paced world where uncertainties loom large, the need to plan for the future is undeniably imperative. Similarly, when it comes to medical emergencies, a lack of planning for exorbitant expenses can lead to major financial upheaval. One of the most effective, yet underrated, ways of doing that is by virtue of a health insurance policy that is tailored to the specific needs of customers. 

While one doesn’t really need an incentive to buy health insurance, the COVID-19 pandemic surely reinforced its importance in our lives. The global pandemic exposed our unpreparedness in case of health-related emergencies, altering our perception of health insurance and raising pertinent questions. Is my health insurance good enough? Does it cover unforeseen health hazards like COVID-19? Will it still burn a hole in my pocket? 

With these growing questions, people now seek better awareness, guidance, and understanding to find the right health insurance plans that can cater to their specific needs – a promise that is being fulfilled by the ever-growing network of Policy Ensures certified Point of Sales Person (PosP). Therefore, in the post-pandemic era, as you go about finding the best health insurance plan for yourself or your family, here are 5 key elements you must consider before investing in a policy:

Health Insurance: No Longer A Luxury, But A Necessity

For a long time, health insurance was perceived as a luxury, especially in growing nations like India. While some deemed it as an added expense, others remained unperturbed by the idea of safeguarding their health via an insurance plan. But, it eventually took the global pandemic to reiterate the importance of health insurance in the country.

According to The Hindu report, demand for health insurance has shot up by 321% in the post-pandemic era. This is a valid indicator of the changing perception and increased awareness among customers towards the health insurance industry. With uncertainties akin to Covid-19 looming large, the importance and relevance of buying health insurance that provides holistic and adequate coverage simply cannot be overlooked.

Sum Insured: What’s Sufficient Today Might Be Inadequate Tomorrow

Health insurance policies, akin to ones related to motor vehicle and home insurance, work on the principle of indemnity. Simply put, these insurance policies compensate the customers for all the losses covered by the policy. The extent of damages that a policy covers in a stipulated time period is what is termed as the sum insured. For instance, in medical policies, the sum insured denotes the maximum amount that an insurer will pay for hospitalization in a given time.

In the event of unexpected medical emergencies, one can be easily exposed to financial debt instigated by medical bills, diagnostic charges, and other hospitalization costs. With the bills often running higher than the sum insured in the insurance plan, an individual’s savings can take a direct hit. That’s why it’s important to opt for a plan with a high sum insured to minimize out-of-pocket expenses. While it might push the premium up, you can thoroughly reap its benefit with better coverage than regular plans.

Selecting A Plan? Flexibility Is Key To Effective Health Insurance

While there are numerous things one can factor in before making up their mind for a specific health insurance plan, flexibility is undeniably one of the most important elements to take into consideration. In the event of a medical emergency that involves more than one member of your family, having individual health insurance plans surely won’t cut it. As witnessed during the recent pandemic, many families were exposed to the ramifications of not having a floater plan that covered health insurance of their family members.

Unlike individual health insurance policies, family floater plans are relatively cost-effective which make them ideal for providing medical coverage for all members of the family. Factoring in the age and other necessary information of the members, one can opt for a floater plan which is tailored to the needs of the family. While there are a lot of floater plans available in the market, one must leverage the expertise of insurance brokers like Policy Ensure to efficiently review and compare them in their bid to find the one that is flexible enough to accommodate all members of the family.

Room Rent Cap: Go For A Higher Limit

Health insurance plans might seem easy to purchase, but understanding the nitty-gritty pertaining to a policy is an uphill battle that can have a direct impact on your finances. Among some key elements that need a lot of demystification, the room rent limit is arguably the one that needs special attention from customers. A cap imposed on the coverage of boarding expenses of the hospital room rent limit has a significant impact on the overall cost of treatment.    

Therefore, you must lay a greater emphasis on the cap on room rents to avoid burning through your savings during an uncertain medical emergency. While selecting a health insurance policy, people should also factor in inflation costs and look for a plan with a higher limit on room rent to reduce personal expenses. Though it might attract a higher premium than other available policies, the one with a high cap on room rent can surely help ensure that you get the best possible treatment without fretting over additional expenses.

Employer Health Insurance: It May Not Be Enough During Uncertain Events

In the modern world, the majority of organizations offer health benefits and insurance plans to their employees. People, for long, have been content with the health insurance offered by their employers. That is one of the reasons why most of the individuals still don’t opt for an individual policy despite better coverage on offer. However, this over-dependence on employer health insurance can cost you dearly in the event of a medical emergency.

Since most of the health insurance policies offered by employers have limited coverage, depending solely on that can translate into additional out-of-the-pocket expenses. On the other hand, relying solely on employer health insurance also means that, in the event of a job loss, you would have to shell money from your savings to negate health-related challenges. Hence, while a healthcare plan offered by your employer might seem like a great deal for now, an individual policy with better coverage is what you’ll really need to sail through future uncertainties financially.

Future-proof Your Health By Consulting Certified Insurance Brokers

Regardless of age, time, and even financial planning, there is little doubt over the fact that a medical emergency can come knocking anytime. This, in turn, makes us all vulnerable to the risk of healthcare debt owing to rising medical costs. One of the cost-effective ways to beat medical treatment inflation is by buying a health insurance plan. 

However, spoilt for choices in the market, most of us dread the painstaking process of reviewing and comparing available policies in our search for finding the right one. That’s why you need the expertise and experience of Policy Ensures certified PosP who can help you understand the vital aspects of the available policies and guide you towards the right health insurance plan. As the popular saying goes, health is surely wealth. But considering the uncertainties of life, one truly needs some wealth in the form of health insurance to ensure good health.

Health issues often do not wait to strike till your old age, especially due to modern lifestyle. Even those who are as young as 30 years old often need treatments that require hospitalisation and may make a big dent in their savings. Health insurance comes in handy in such a situation. Moreover, if you buy a health insurance policy early, even with a low premium you can afford high coverage.

But how much health insurance coverage do you need? What are the things to look at while buying health insurance cover when you are in your 30s? ET Wealth Online spoke to a number of experts to find out what will be the ideal health insurance sum assured for those who are in their 30s and how to choose it.

Why do you need to buy a health insurance policy when you are young?

There are several benefits you will get for buying a health insurance policy in your 30s. Firstly, you will get a comprehensive health insurance cover at an affordable price. “As young consumers fall into the bracket of higher immunity and lower risk of contracting several medical conditions like diabetes, hypertension, or critical illnesses such as organ failure, cancer, cardiovascular diseases, etc., they have the advantage of getting higher coverage at a lesser premium,” said Siddharth Singhal, Business Head – Health Insurance, Policybazaar.com.

Further, most health insurance policies have waiting periods for specific treatments or pre-existing conditions. By purchasing health insurance early, you can serve out these waiting periods while you are still healthy, ensuring that coverage is available when you need it in the future, explained Rakesh Goyal, Director, Probus Insurance Broker.

Moreover, it offers you peace of mind. Knowing that you have a financial safety net in place can free you from stress and worry when it comes to managing healthcare costs.

What should be your ideal sum-assured amount?

When buying a health insurance policy, the most important question is how much coverage you should get. The ideal sum assured depends on various factors like lifestyle, income, family size, location, and medical history.

“Consider the potential healthcare costs you may incur in the future. Evaluate the average medical expenses in your region and factor in any specific health concerns or pre-existing conditions. Ensure the sum assured is adequate to cover potential medical bills,” said Goyal.

As a thumb rule, it is recommended to have a sum assured of at least 2 to 3 times your annual income, mentioned Rahul M Mishra, Co-Founder & Director, Policy Ensure.

“For a person staying in a metropolitan city like Delhi or Mumbai, a sum insured of Rs 10 lakh per member is recommended. However, for a family of two adults with one child, the policyholder should opt for Rs 30 lakh of coverage,” said Singhal.

Echoing the same, Pankaj Goenka, Business Head of InsuranceDekho said, the ideal sum assured for a 30-year-old smoker as well as a non-smoker should be around Rs 10 lakh.

How much a health insurance policy of Rs 10 lakh can cost you at the age of 30
Company	Plan	Cover Amount	Annual Premium
Care Health Insurance	Care Supreme	Rs 10 Lakh	Rs 8,419
Niva Bupa Health Insurance	ReAssure 2.0 Bronze+	Rs 10 Lakh	Rs 8,756
Star Health Insurance	Star Comprehensive	Rs 10 Lakh	Rs 11,476
Aditya Birla Capital	Activ Fit Plus	Rs 10 Lakh (+ Rs 10 Lakh extra)	Rs 8,032
HDFC ERGO General Insurance	Optima Secure	Rs 10 Lakh (+ Rs 10 Lakh extra)	Rs 10,443
ManipalCigna Health Insurance	Prime – Advantage	Rs 10 Lakh	Rs 11,522
Reliance General Insurance	Health Gain	Rs 10 Lakh	Rs 6,072
Tata AIG Insurance	Medicare Premier	Rs 10 Lakh	Rs 11,909
Digit Insurance	Infinity Wallet	Rs 10 Lakh	Rs 8,796
Source: PolicyBazaar.com

If affordability is not a concern, you should take a health insurance policy that has a sum assured of more than Rs 10 lakh but not less. As a young person, you would need this health insurance cover for a longer period. Therefore, a higher sum assured will not only help you fight the current cost of treatment but also higher costs in the future due to inflation.

If you live in a metro, the sum assured can be around Rs 20 lakh, said Kapil Mehta, Co-founder, SecureNow Insurance Broker. Explaining two important reasons behind it, Mehta mentioned, “Firstly, many diseases that impact the young, such as cancers, can cost Rs 10 to 15 lakh to treat. Secondly, the insurance you are buying today should have a sum assured that factors in medical inflation and the higher costs expected in the future for treatment.”

“This medical inflation is between 10 per cent and 15 per cent per annum. That is why a higher sum assured of Rs 20 lakh makes the most sense. From a pricing standpoint, the premium difference between a Rs 10 lakh and a Rs 20 lakh cover is not that significant. Both smokers and non-smokers should have a Rs 20 lakh cover,” he added.

How much a health insurance policy of Rs 20 lakh can cost you at the age of 30
Company	Plan	Annual Premium (Rs)
ICICI Lombard General Insurance	Health AdvantEdge Apex Plus	14,202.00
Future Generali Indian Insurance	Health Absolute(Platinum)	14,217.00
SBI General Insurance	Arogya Supreme Health Insurance	11,432.00
Star Health Insurance	Star Comprehensive Insurance Policy	16,638.00
Niva Bupa	Reassure 2.0(Platinum+)	15,598.00
Aditya Birla Capital	Activ Health Fit	12,036.0
Reliance General Insurance	HealthGain Insurance	10,060.68
Oriental Insurance	Arogya Sanjeevani Policy	11,097.0
HDFC Ergo General Insurance	Optima Secure	12,779.00
Iffco-Tokio General Insurance	Individual Health Protector Policy	13,934.62
Royal Sundaram General Insurance	Lifeline Supreme	9,921.52
Chola MS General Insurance	Flexi Health Supreme(Plus)	11,237.00
Tata AIG Insurance	Medicare	14,059.00
Bajaj Allianz	Individual Health Insurance(Gold Plan)	11,120.32
Manipal Cigna	ProHealth Prime	13,142.84
Source: SecureNow Insurance Broking Pvt. Ltd.

The data pertains to individual health insurance cover of Rs 20 lakh for 30-year-old (unmarried), non-smoker, residing in a metro, as of August 1, 2023. Data is indicative. Actual premium and information may vary.

Do keep in mind that if we compare the premium for different sums insured, then when we move from Rs 5 lakh to Rs 10 lakh, we get 2X coverage, but the premium increases only 30-40 per cent. Similarly, for Rs 10 lakh to 20 lakh, the premium increases only 20-30 per cent and a similar trend is observed for a higher sum insured, said Goenka.

How to choose your health insurance policy in 30s

As you get a rough idea about how much health insurance coverage you need, let’s find out how to choose your insurance policy. It’s crucial to take into account a number of things while choosing health insurance coverage. “The main factors to consider are product features, claims payment record, and premium,” said Mehta.

To make it easier for you, ET Wealth has listed eight points that you need to keep in mind.

Coverage and benefits:You must look for comprehensive coverage that includes hospitalisation expenses, pre and post-hospitalisation costs, daycare procedures, ambulance charges, and other relevant benefits based on your specific needs, explained Goyal.

Plans with no sub-limits:Ideally, you may choose a health insurance policy that does not have any kind of co-payments and covers expenses like room rent, ICU charges, domiciliary treatment costs, etc. Plans with sub-limits limit the scope of coverage and result in out-of-pocket expenses, explained Singhal.

Network of network hospitals:Your insurer should have a good number of network hospitals so that you can get quality treatment in a cashless manner. The more the number of network hospitals, the more beneficial it is for you as a policyholder, said Goenka.

Waiting period:The waiting period is the time period that you have to wait before you can file a claim on your health insurance policy. Some policies have longer waiting periods than others. So, while buying a health insurance plan , you must check the waiting period as it varies from insurer to insurer.

Flexible coverage:Individual health insurance allows you to select coverage options and add-ons that align with your personal health needs. It provides flexibility in choosing deductibles, coverage for pre-existing conditions, maternity benefits, and other specific requirements, said Goyal.

Claim settlement ratio:The claim settlement ratio refers to the insurer’s efficiency in settling health insurance claims. You should ideally choose a company that has a higher claim settlement ratio.

Customer service:The insurer should have good customer service to answer all your queries. You can check the insurer’s customer service by calling their customer service number or by reading online reviews, said Pankaj Goenka, Business Head Head, InsuranceDekho.

Look for plans with a renewal bonus:Since medical inflation in India is 14 per cent, it is important that your health insurance premium increase every year. Hence, the renewal bonus is an important factor to look at, Goenka added.

Should you opt for critical illness health insurance cover?

Once you have comprehensive medical insurance, you can consider buying a standalone critical illness insurance cover. This policy covers a large number of ailments and you get a fixed amount if diagnosed with a named critical illness. If you have a critical illness in your family history or have a high-risk job then opt for a critical illness or disability rider respectively, said Naval Goel, Founder and CEO, PolicyX.

Some common critical illnesses that often result in significant claims include cancer, heart-related conditions, neurological disorders, kidney diseases, and organ failures.

“If you opt for critical illness cover, carefully review the policy terms and conditions to understand which critical illnesses are covered and the payout structure. Consider factors such as family medical history, lifestyle, and the prevalence of specific illnesses when deciding whether to choose critical illness cover or riders. Additionally, it is crucial to compare the cost of critical illness riders or standalone policies with the benefits they offer. Some individuals may prefer to have a separate critical illness policy to ensure higher coverage amounts, while others may find riders more cost-effective,” said Goyal.

Should you add your family to your health insurance policy?

The 30s could be a time when many people have just started a family or planning to start one in the next few years. When you are purchasing a health insurance plan in your 30s, you need to take into account how you are planning to take care of your family or dependents going forward.

To address the healthcare needs of your family or dependents, you go for a family floater plan where you can add your family members to your health insurance policy. Many insurers allow you to add family members during policy renewal or within a specific timeframe after marriage or childbirth.

Do remember that individual health insurance does not allow you to add dependents. “A family floater plan is cheaper than an individual plan as the sum insured is shared by an entire family,” said Goyal.

“The cost of adding family members depends on the number of individuals, their age, and the sum assured chosen,” said Mishra.

“Insurance companies usually have provisions to add a spouse during the policy term, subject to the payment of an additional premium. Most health insurance policies allow the inclusion of dependent children up to a certain age (usually 18 to 25 years) under the family coverage. Some policies may also have provisions for extended coverage for children pursuing higher education or until they become financially independent,” said Goyal.

When adding family members to the policy, be aware of any waiting periods associated with specific coverage benefits. Some policies may have waiting periods for maternity benefits, pre-existing conditions of family members, or certain illnesses.

Should you add your elderly parents in the same family floater plan?

Now should you add your elderly parents to the family floater plan? When compared to your parents you may need your health insurance policy for a much longer period. At old age parents may need frequent hospitalization which may adversely impact the available sum assure for younger members.

Do note that you have the option to add your aging parents to your family floater plan. However, Mehta suggested buying separate standalone insurance for parents.

“That is because they should have a sum assured that they can exclusively use and often the products for seniors are different from those below 65 years,” he added. Moreover, you can also claim a deduction of up to Rs 25,000 for health insurance of self/family and Rs 50,000 under Section 80D of the Income-tax Act, 1961, for senior citizen parents while filing income tax returns.

A comprehensive car insurance policy may not be adequate to protect your car from the damage that monsoons can cause. Unless you have certain specific additional coverages, your insurance company will not pay a penny to fix your engine if it’s flood damaged. In case you need to change your seats or replace your windshield, the insurance company usually pays only a part of it. That’s where add-on covers or riders come in handy.

Why are damages more frequent in monsoons?

“During heavy rain, waterlogging or floods, water can enter the vehicle, seep into the engine and damage it. This is one of the most common claims during monsoons. The engine is one of the most expensive parts of a vehicle and repairing or replacing can be expensive,” Kunal Jha, Head – Motor Product and Actuarial, Go Digit General Insurance.

He added: “Trees or poles uprooted due to heavy rain can seriously damage the exterior of a vehicle. Multiple such instances are witnessed during heavy rain because many vehicles in India are parked on the roads.”

Rahul Mishra said, “Even if the car is not submerged in water, heavy rain can cause water damage to the car’s upholstery and electrical wiring, resulting in costly repairs.” said Rahul M Mishra, Co-Founder and Director, Policy Ensure.

When it rains heavily, visibility on the roads can be significantly reduced, leading to accidents. Many experts added that the risk of skidding and hydroplaning increases as the roads become slippery.

How auto insurance add-ons cover plug the coverage gap?

Add-ons are optional coverage that can be added to a comprehensive car insurance policy to enhance your coverage and provide additional protection. Here are four essential additions during the monsoon season.

Why is it critical to add an engine protection cover?

Purchasing an engine protector add-on is essential to protect your engine safeguard your car engine from losses due to liquid ingress. If you try to start your car over and over again while it is submerged in water, the car could get stuck. Engine repair can be expensive. This engine damage is not paid for under a normal car insurance policy because it is considered collateral damage. “An engine guard covers your car in the event of a hydrostatic lock, where water can seep into the car’s air valve and block the engine,” said Nitin Kumar, Head – Car Insurance, Policybazaar.com.

Roadside assistance comes to your rescue during an emergency

Vehicle breakdowns are more common during the monsoon season. In case you are stranded in a waterlogged area and unable to move your vehicle, opting for the additional coverage of 24/7 roadside assistance can be helpful, said Pooja Yadav, Chief Product Officer, Zuno General Insurance (Erstwhile Edelweiss General Insurance).

Animesh Das, Chief Underwriting Officer – ACKO, adds that this coverage provides instant towing services by a professional that prevents further damage to your vehicle.

Zero depreciation Cover ensures full coverage in parts replacement

If you have zero depreciation coverage, you will be fully reimbursed for the damage, not just the depreciated value of the damaged components. said Aftab Chaz, Associate Director and Head of Business at Elephant.in (Alliance Insurance Brokers)

Consumable add-on coverage ensures no payment even for consumables

This add-on covers the cost of consumables such as engine oil, coolant, and brake fluid, which are required during repairs due to damage caused by flooding, waterlogging, or accidents during the monsoon season.

While there are other add-on covers, the above-mentioned are the most used by consumers due to their relevance and significance during monsoons.

Who Should Buy These Extra Monsoon Auto Insurance Coverages?

These riders come with an added cost. Should all car owners buy these additional covers to protect their cars during the monsoon season?

“It is important that vehicle owners carefully consider their needs and the location in which they are staying before selecting any additions,” Chaz said.

“If you live in an area that is prone to flooding or waterlogging during the monsoon season (such as Mumbai, Goa, Bangalore) then the added motor protection and consumables cover can be particularly useful as it provides coverage for damage to the engine and consumables,” said Mishra.

Amit Goel, director and principal officer of Raghnall Insurance Broking & Risk Management Pvt, said: “Coastal regions often experience heavy rainfall and face risks of waterlogging and high levels of humidity. Water damage and the corrosive effects of salt water can The motor protection cover and consumables cover can help mitigate the risks associated with these conditions.”

Goel added: ” Places with inadequate drainage infrastructure can lead to water accumulation on roads, increasing the likelihood of accidents due to slippery surfaces. In such areas, a zero consumption cap can be beneficial as it ensures a higher payment for spare parts. regardless of consumption.

If you live in an area where immediate assistance during emergencies, such as towing or on-site repairs, is rare or slow to arrive, having roadside assistance coverage becomes a necessity. This coverage provides peace of mind and guarantees immediate assistance in the event of a breakdown or accident, especially in adverse weather conditions.

“People living in hilly areas also witness cases of landslides during monsoons. It makes a lot of sense to consider a comprehensive motor cover with suitable add-ons to give your vehicle full protection,” Jha said.

Today’s uncertain environment has made it necessary to have an insurance policy at your disposal. While taking care of your financial needs, it also provides peace of mind for you and your loved ones. However, for any person who is looking forward to purchasing a policy, understanding the general insurance jargon and terminologies can be hard.

In a bid to procure the maximum advantages from your policy, it is necessary for an individual to know the basic technical words, which would not only help them to understand their policy in a better manner but also aid them in purchasing a good policy. Furthermore, regardless of how daunting the insurance contract appears, following a few of the recommendations can help ease the process of understanding the policy terminology.

Self-learning through research

Self-learning is an approach to gaining knowledge about any subject where the individual makes the effort to explore the necessary resources. This concept can be applied to learning about general insurance and its terminology as well. First and foremost, you can familiarise yourself with basic insurance terms, which include premium, coverage, insurer, policyholder, deductible, and more.

Then you can go to online resources, such as insurance websites, via search engines to gain information about these jargons. On the websites, you can also engage in conversations with AI chatbots that can provide valuable information regarding the insurance. This approach is efficient as it provides a certain amount of independence to learn, where you can explore different types of insurance and their respective jargons at your own pace and make an informed purchase decision.

Studying the insurance documents

An insurance policy document is a reference document that contains all information regarding cover (the scope of protection provided by the policy), insured (the person or entity covered by the insurance policy), insurer (the insurance company that provides the coverage), premium paid (The amount paid to the insurance company), policy term (the duration of the policy), and more.

The insurance firm issues the document to detail the terms under which the policy is offered. Therefore, while selecting a policy, it is advised to read the policy documents, which also include terms and conditions. In these policy documents, a person should pay attention to key details such as coverage limits, waiting periods, exclusions, claim procedures, and more.

Consult an insurance advisor

Despite educating yourself through online research or reading the general insurance documents carefully, it can sometimes be daunting to understand specific terminology while considering the right policy. In such cases, it is advised to consult an insurance advisor. With their guidance, you not only get accurate and updated information about the insurance but can also get personalised guidance based on your needs.

They are the experts who have in-depth knowledge about different types of policies and their terminologies, which are difficult to grasp. What policy advisors can do for you is break down the policy language, explain key provisions, and ensure that you understand what you are purchasing. While you can learn about different types of policies and their jargon, you can also utilise their expertise to gain maximum coverage and recommendations.

All things considered

It cannot be understated that for an ordinary person, understanding general insurance jargon and terminology can be difficult. Moreover, there are numerous types of insurance, clauses, terms, and conditions, which can be overwhelming to comprehend. However, owing to technological advancements, internet penetration, and smart devices, customers are able to research insurance policies online. Moreover, they also have easy access to insurance documents today, from which they can gain more knowledge before making a purchase.

However, the most efficient method is to contact an insurance advisor or point of sales person (PoSP) who can provide their knowledge of the technical jargon and also provide advice, recommendations, and personalised guidance on insurance policies. With a flourishing insurance market in India, there are several solutions available for customers to explore, and a lack of information on the subject should never let them be deprived of its benefits.