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Information provided on this newsletter has been independently obtained from sources believed to be reliable. However, such information may include inaccuracies, errors or omissions. and its affiliates, information providers or content providers, shall have no liability to you or third parties for the accuracy, completeness, timeliness or correct sequencing of information available on this newsletter, or for any decision made or action taken by you in reliance upon such information, or for the delay or interruption of such information. , its affiliates, information providers and content providers shall have no liability for investment decisions or other actions taken or made by you based on the information provided on this newsletter.
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Life is full of uncertainties, in order to make the family financially secure in event of your absence one needs to have a life insurance cover. A Term insurance, offers the complete sum assured in event of the death of policyholder but in the event, the policyholder survives the term of the policy then he/she gets nothing but sum assured is pretty high at a low premium. If the policyholder’s main objective is security then term insurance needs to be a priority.

Think of a term plan as an umbrella you will need as long as it rains. Therefore, the duration of your term plan should ideally equal the number of years your family is likely to depend on you financially. To put things in perspective, ask yourself the following questions.

1.What is the corpus needed to cover the outstanding liabilities?

2.What financial difficulties can the family face in case I am not around?

3.Is the amount left outstanding after paying the debts adequate to cover family’s immediate needs?

4.What are large one-time expenses that could arise in future?

Following factors can be Considered before deciding on the duration for the term insurance Plan:

Liabilities:

One of the factors to be considered include the liabilities. If the person has a home loan for 20 years then the duration of the term insurance needs to be 20 years.

Affordability:

Term insurance with longer time horizon tends to be more expensive, in case the premium for the duration you desire is putting immense strain on your finances then you should look to adjust the tenure and coverage amount so that you can strike balance while not losing out on benefits of term insurance.

Length of Support:

Your family profile is a huge determinant of duration to be chosen for the term plan. If the age of your child is 5 years and the goal is of providing cover till the child’s education then duration could be 18 to 20 years. If one wants to provide till marriage of the child then the duration of the term plan needs to be extended.

Commitments and Dependents:

What could be more worse than leaving nothing behind for your family or loved ones? Or leaving a debt pile for them. If you accumulated debts over a period of time and are now worried that what would happen to your family if you are not alive? What would they do then one needs to take term insurance that covers the liability duration.

Current Age:

Term Insurance policies come with the term of 15 years, 20 years, 25 years and 30 years. If you choose a term plan that ends much before your expected retirement age, the whole purpose of term insurance is defeated. For example, you are currently 30 and plan to work until the age of 55, if you opt for a 15-year term plan, the plan will expire when you are 45. You are least likely to need protection until before the age of 45. Also, if you decide to go for a new plan at that point in time, it will cost you a fortune in the premium to be paid. Therefore, opting for a long duration at a younger age is advisable.
Car insurance in India is must to own a vehicle and there are so many factors that affect auto owners directly or indirectly in this age of growing needs. Nowadays, basic car insurance is not always enough and hence, add-on covers become necessary. Below is a list of common add-on covers provided by Indian car insurance companies:

Zero Depreciation

It is one of the general add-on covers bought by auto owners because it makes sure that policyholder can get a complete claim on the value of parts replaced after an incident.

Road Assistance

These covers enable basic services during emergencies while a person is driving through a remote area or a location devoid of any assistance or service centers. Under this car insurance, almost everything is covered, from an empty tank to a flat tire and batter related issues. People who opt for such covers can easily avail accommodation and tax benefits, fuel assistance when got stuck in a remote location.

Engine and Electronic Circuit Cover

It gives security against the electronic circuit and the engine, especially in case of flooding. This policy is the best way to cover expensive auto repairs and circuit replacements, which get damaged easily and cost a fortune. It can come in really handy during water-logging situations.

Return to Invoice

Under this add-on, the policyholder can receive the complete value of the vehicle in case it gets completely damaged due to accident or any other reasons. The major benefit of this policy is that the auto owners get complete reimbursements, without five percent depreciation.

No Claim Bonus Retention

This add-on is like a reward for not filing any claim in the last few years. Generally, people buy car insurance coverage and renew it each year without fail.

Personal Accident Cover

This cover includes the auto owner, the paid driver or both based on the insurer. A person is entitled to a 100 percent claim for death or permanent loss of limbs only in case of an owner-driver.

Among various illnesses, cancer is a major threat to the life of human beings globally. As per data from Census of India, the death rate due to cancer in India is 97 per 100,000 persons with high prevalence in urban regions. The incidence of cancer is highest among the elder people and among females during their reproductive age.

Cancer is on Upsurge

Types of cancers including skin cancer, lung, stomach, liver, blood, breast and mouth cancer are one of the most common ones. Over 1.15 lakh new cancer cases are registered every year in India. As per Indian Council of Medical Research, in year 2018 more than 4.13 lakh men and 3.71 lakh women died due to cancer. Moreover, 9.81% men and 9.42% women are at risk of developing cancer before the age of 75 years.

The cancer disease has become a major public health concern in India. The treatment expenses for cancer hospitalization is financed through taking debt, sale of assets and get assistance from friends and relatives. The out of pocket expenditure for cancer treatment is among the highest for any illness. More than 60% of households who seek cancer care in private hospitals need to incur out of pocket expenses.

Considering the severe financial implications, you need a disease-based approach to finance the high-cost ailment such as Cancer. In order to meet the cost of cancer treatment, you are advised to choose Cancer Insurance plan that will cover the entire treatment cost and you don’t need to pay from your pocket.

Cancer Health Plan to Cover Treatment Cost

In view of medical advancements, there has been increased chances for early detection and successful treatment of cancer. Although the cost of its treatment is quite huge, by buying cancer insurance plan it’s possible to get the complete cover against cancer treatment cost.

A cancer plan is a specific type of health insurance plan that provides financial assistance for different stages of diagnosis including Carcinoma in Situ (CIS), minor, major & critical. With this cancer cover, your family feel financially and mentally secure to deal with the distressing situation that comes with cancer disease.

Benefits of Choosing Cancer Plan

There are some key factors that focus on the need to buy a Critical Illness Health Plan.

Cover for Treatment Cost

The average cost of cancer treatment is around 15 to 20 lakhs or even high and its cost of treatment is extremely tough to pay from pocket. Buying a cancer insurance plan safeguards you against the huge and cumbersome treatment cost. A cancer plan pay a fixed amount upon getting the treatment done of an insured person.

Financial Back Up

Due to cancer disease, you will not be able to continue your normal lifestyle that will result in loss of income due to poor health conditions and treatment costs make a dent to your pocket. With help of cancer plan, you will not have to meet treatment expenses from your previous savings instead this plan covers cancer treatment expenses.

Peace of Mind Ensured

A cancer insurance plan provides financial aid to cover the treatment expenses of cancer. In case of diagnosis of cancer disease, you will feel assure that there is a plan that will pay the fixed benefits that will cover the entire treatment cost.

Health insurance plans come with a host of benefits to help you tide through any medical crisis. But the often repeated benefit that helps sell a medical plan is the tax benefit. This is the one everyone keeps talking about even without knowing much of the details. A health insurance policy is much more than just tax benefits, but if you can save some money while getting adequate medical care, why not do it?

Let’s get the details out in the open for you to know and use it to your maximum advantage.

Under the income tax act, section 80D is associated with tax benefits on insurance products. This means that you will get tax benefits on the premium amounts you pay on the insurance policy. The tax deductions can go up to a maximum of Rs 1 lakh per annum. This is definitely a massive saving in addition to getting health insurance benefits with your insurance policy.

For a mediclaim policy, you can claim tax deductions as specified in a table mentioned below.

 

 Health Insurance Premium for Self & Family

 Health Insurance Premium for Parents

 Below 60 years

 Rs 25,000

 Rs 25,000

 Above 60 years

 Rs 50,000

 Rs 50,000



A tax deduction of Rs 5,000 can also be claimed on expenses incurred from preventive health check-ups. This limit applies to all expenses that occur in the health check-ups in a family.

How Does It Work?

The income tax act has set the limits for such deductions based on various parameters and depending on who has bought the policy. Following are the details for the same:

Benefits for Insurance Premium for Your Family

If you have bought a health insurance policy for you and your family, you can claim the tax benefit up to Rs 25,000/- per annum. This would mean you get the best medical care in some of the best medical centers in times of need even as you get to save money for making a provision for that by purchasing an insurance policy. In case you’re a senior citizen, the tax benefit limit extends up to a maximum of Rs 30,000 per annum on the premium paid. Additional money in your pocket to take care of some other priorities as well!

Benefits for Insurance Premium for Your Parents

Apart from your financial gains as mentioned above, you can also get tax benefits by providing health care benefits to your parents. They are the ones in need of maximum medical care as with age, complications also increase. The way hospitalization expenses and treatment costs are rising it is a wise decision to provide your parents with a health policy at the earliest. Once you buy a plan and pay premiums out of your pocket, you can claim deductions to a maximum of Rs. 25,000/- per annum. In case your parents belong to the senior citizen category and you’re paying for their health insurance policy, the maximum limit goes up to Rs. 30,000/- per annum to claim tax benefits.

Preventive Health Check-Up

This is yet another benefit provided to you under the income tax act. This means that if you have to undergo a preventive medical check-up and conduct some tests, you can do so and claim tax benefits for the same too. The limit prescribed under the act is a maximum of Rs. 5,000/- per annum. However under this category, the beneficiaries will be you, your spouse, kids, and parents. Also, this is not an individual benefit, but a cumulative one covering everyone in your family including parents. Therefore, for example, if you and your father go for a check-up and the total expense incurred is Rs. 7,000/-, then you can claim a deduction of Rs. 5,000/- only and not more than that. Income tax act has provided these health care benefits with limits so as to ensure there is no exploitation of the same. Also, the intention is to ensure that citizens are encouraged to buy health insurance.

Who all are Eligible?

As per the income tax act, any and every taxpayer is eligible to claim these tax deductions under section 80D. One can buy a health insurance policy for any or all of the following family members:

1)Self
2)Spouse
3)Dependent Children
4)Parents

The only factor to be considered is that the total insurance premium payment should not exceed the maximum deduction limit. Even if it does, you can claim the benefit only up to the limit and not beyond that. Section 80D is a boon when it comes to health insurance benefits. Make the best use of it by investing wisely and ensuring that you and your family members are insured against any medical emergencies. And in case of more clarity you can always talk to your financial advisor.
Please mark all your queries / responses to
Information provided on this newsletter has been independently obtained from sources believed to be reliable. However, such information may include inaccuracies, errors or omissions. and its affiliates, information providers or content providers, shall have no liability to you or third parties for the accuracy, completeness, timeliness or correct sequencing of information available on this newsletter, or for any decision made or action taken by you in reliance upon such information, or for the delay or interruption of such information. , its affiliates, information providers and content providers shall have no liability for investment decisions or other actions taken or made by you based on the information provided on this newsletter.