#Financial-Planning  #Insurance  #Finance 

4.1 Insurance

  • The life and property of an individual are surrounded by the risk of death, disability, or destruction.
  • These risks may result in financial losses. Insurance is a prudent way to transfer such risks to an insurance company.
  • Important point to know before buying insurance
    • Add Rider
      • Accidental disability
      • Critical illness
    • Check these ratios before buying an Insurance
  • Claim Settlement ratio > * Claim amount ratio > * Solvency Ratio

4.2 Life Insurance (LI)

  • Term life insurance (Term Plan)
    • 0 investment(i.e. No return)
    • Similar to vechicles insurance
    • It’s very cheap
  • Endowment policies
    • Get some maturity benefits
  • Whole life policies
    • Pay premium for some time-frame
    • But still you will get benefit for the entire life
  • ULIPs
    • Its premium gets invested to Stock Market
  • By Govt:
    • Pradhan Mantri Jivan jyoti bima yojana(PMJJBY)
    • Sum assured: 2 Lakhs
    • Premium: Rs. 330/pa

4.3 Medical insurance 🚑

  • Need to get admitted for 24 hrs

Personal Accidental Insurance

  • Only when you meet accident
  • By Govt:
    • Pradhan Mantri suraksha bima yojana(PMSBY)
    • Sum assured: 2 Lakhs
    • Premium: Rs. 12/pa

Health Insurance (HI) 🏥

  • Check those details before buying:
  1. Pre and post hospitalization
  2. Premium
  3. Bed Charges
  4. Claim settlement
  5. Tie up with hospitals
  6. In house claim settlement - no 3rd party settlement
  • HI includes
    • Accidental cover
    • Critical illness cover
    • MediClaim
  • NOTE:
    • Accident and critical illness cover add as Rider in LI
    • Better option than adding it in HI
    • Also, less premium is required

How much insurance amount is needed and when?

  • Take insurance only
    • If Anyone depended on you
    • If no-one is depended on you then –> no insurance is required
  • Cover Amount
    • Min –> 5 * income (Minimun insurance should be5 times of income )
    • Max –> depends on income and age
    • Eg of HDFC life
      • Age(18 - 35) = income * 25
      • Age(35 - 40) = income * 20
      • Age(40 - 50) = income * 15
      • Age(59 - 60) = income * 10

4.4 Default Insurance

  • Many banks and card providers(Rupay) provide a default accidental insurance to their Cardholders
  • We don’t have to pay for the insurance.

What is Accidental insurance

  • Accident insurance is complementary to, not a replacement for, health insurance
  • A person can avail this only if he meets an accident(road/train/flight),
  • Or can be availed by the nominee on accidental demise of the insured person.

HDFC card insurance

Hdfc: Accelerated Personal Accidental Death

PMJDY insurance

  • People have Rupay Card form Pradhan Mantri Jan Dhan Yojana program also has Insurance
  • Sum insured of Rs 1 lakh for RuPay cardholders of Old*
  • PMJDY Cards and of Rs 2 lakhs for RuPay cardholders of New* PMJDY Card.

RuPay PMJDY Cards: Frequently Asked Questions claim documents to be submitted i

  • The claim documents needs to be submitted within 60 days from the date of claim intimation
  • Please contact RuPay cardholder Bank / Bank branch of which RuPay cardholder has a card for intimating the claim.
  • Must have done transaction* within 90 days before the date of an accident

NOTE:

  • PMJDY OLD –> RuPay PMJDY Cards issued on PMJDY accounts opened till 28th Aug 2018
  • PMJDY New –> RuPay PMJDY Cards issued on PMJDY accounts opened after 28th August 2018
  • Transaation –> ATM/MicroATM/POS/e-com/online

Rupay Card insurance

Gayan

  • Take PMSBJ and PMJJBY through net-banking from any account

PMJJBY

PMJJBY stands for Pradhan Mantri Jeevan Jyoti Bima Yojana, which is a government-backed life insurance scheme in India. This scheme was launched by the Government of India to provide life insurance coverage at a highly affordable premium. PMJJBY is part of the larger financial inclusion initiative to bring insurance coverage to the economically vulnerable sections of society.

Here are key features of PMJJBY:

  1. Eligibility:
    • The scheme is available to people in the age group of 18 to 50 years.
    • Individuals should have a savings bank account and provide their consent to join the scheme.
  2. Coverage:
    • PMJJBY provides a life insurance coverage of ₹2 lakhs (rupees two lakhs) in case of the insured person’s death.
  3. Premium:
    • The annual premium for PMJJBY is minimal, making it highly affordable for the common person.
    • The premium is typically deducted directly from the insured person’s bank account.
  4. Renewal:
    • The scheme has to be renewed annually by the policyholder. It is not a lifelong insurance coverage, and renewal is required to continue the coverage.
  5. Enrollment Period:
    • Enrollment in the scheme is usually open from June 1st to August 31st each year.
    • However, new enrollments can be allowed with the payment of a pro-rata premium.
  6. Claim Process:
    • In the event of the insured person’s death due to any reason, the nominee can claim the insurance amount by submitting the required documents.

Reference