Insurance Policy - 5 Things To Consider according To A Finance Expert

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Life Insurance During COVID-19 — 5 Things To Consider according To A Finance Expert | Money

I'm Devendra Shah From healthpolicy.xyz, author at 'HealthPlicy'. I made a big commitment. I have 15 years experience in the insurance field. And then I realized I needed to share my experience about life insurance policy. So today we're going to be talking about five things you should know when shopping for a life insurance policy.


1) How much do you need? Or How to Gift insurance policy for a family member?

The first step is figuring out how big of a life insurance policy you need. Now, even if you are covered through work, it might make sense for you to go ahead and have your own policy, especially one that isn't tied to you keeping your current job. Plus, that policy just might not be enough. A common rule of thumb when figuring out a life insurance policy is to 10 times your annual income.

Now, that is just a rule of thumb, and it's much better for you to actually run the numbers yourself. Now, when you're doing that, you want to consider things like your annual income. How much it would cost for you to have a funeral. As well as, big upcoming costs like sending children to college or any medical procedures your family members might need.

This isn't just about primary breadwinners and the working spouse. But, those who are primary caregivers and have children or parents who depend on them also need to have a life insurance policy. And the money from that policy can be directed towards getting new care for those dependents. Another thing to consider is whether or not you have cosigned loans.

If you do, you need to check the policy to see if those debts are discharged in the case of death. If not, you need to have a life insurance policy that's at least big enough to cover those debts for your cosigner. Life insurance can also be used to cover burial expenses because even a simple funeral can be very cost prohibitive for your family.

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2) Who is your beneficiary?

The person who receives the payout from your life insurance policy is known as your beneficiary. And when you sign up for the policy. You're going to need to know things like their full legal name, their address, their birth date and their Social Security number. Plus, it's a good idea for you to let your beneficiary know, in addition to including it in your will.


3) Should you wait for a life event before you get a policy?

The young and the healthier you are, the cheaper you can usually lock in a rate for your life insurance policy. That means that you might not want to wait for an event like a marriage or buying a house or starting a family in order to get your policy. In fact, women should get a life insurance policy prior to getting pregnant. Not only could your health change post-baby, but, this is morbid. You do need to consider maternal mortality.

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4) Do you need to go to the doctor?

Traditionally, you have to go to the doctor, maybe get some blood drawn and have a physical in order to get a life insurance policy, but today, there are options for you to apply online. Answer an extensive questionnaire about your medical history and possibly be offered a policy. Now, there could be a cutoff based on age or your medical history, but there are options to receive life insurance without having to go to the doctor. Number five, what type of policy best suits your needs? There are two main categories of life insurance, term and permanent.

When you hear the expression 'whole life insurance,' that falls under the umbrella permanent life insurance. Term life insurance is the simplest cost effective option. But it is a use it or lose it policy. Meaning that if you don't die during the term of the life insurance policy. Then, there is no cash payout. However, because it is simple and cost effective.

It often can be much easier to get the appropriate amount of coverage that you actually need. Permanent life insurance often has a six year sales pitch because of the cash value component. But that doesn't necessarily mean it's the best fit for you. A permanent life insurance policy might make more sense for you if you're already maxing out all other tax advantaged accounts or if it's part of an overall estate plan. Or if you have a disabled dependent who is going to need care after your death.

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5) Beware of the person who is trying to sell you your life insurance policy

He or she may call themselves a financial advisor, but that doesn't mean that they're a fiduciary working in your best interest and in fact, might just be receiving the highest commission for the policy that they're trying to sell you.

How to Gift insurance policy for a family member?

As a part of Indian culture, the tradition of gift giving has a special significance. Gift giving is a special gesture that shows the bond of love, concern and closeness between relationships. Be it on any occasion like birthdays, anniversaries or festivals, a perfect gift to your loved ones is always appreciated and nurtured by them. 

Ever thought about giving your loved ones financial security for a lifetime? The financial security. Independence of your family is extremely important and you struggle to provide for them as long as you are with them and work hard.

Beside this, the most relevant gift is to ensure a financial safety net to your family through your health insurance policy. A life insurance policy helps you to meet the short-term or long-term financial goals of your loved ones through a disciplined savings mechanism in the form of regular premium payments. There are various types of life insurance plans such as a term insurance plan, child plan, retirement plan, investment plan. Which act as a prudent gift by providing your loved ones with a strong financial system the means to meet their financial goals. Will do.


Whether depreciation imposed on an insurance policy in case of a claim -Miscellaneous Policy

1) Partial Repurchase of TTD Claims under PA Policy: The insured had an injury to the right thumb of a practicing doctor, for which he could not attend his practice for 6 weeks, for which he claimed TTD under his PA policy did. On the advice of the respondent's medical examiner, the respondent offered TTD for 2 weeks. In the absence of any other suitable index available, the Golden Mean rule was applied and the defendant was instructed to pay TTD for 4 weeks in full and final settlement of the claim.

Ahmedabad Ombudsman Centre
Case No. 11-005-0034
Dr. G T Patel Vs Oriental Insurance Company Ltd.
Award Dated : 25.10.2007

2) Repatriation of claim under travel elite policy. During a trip abroad in a tourist coach, the insure has to lose his passport, passenger's check, cash, gold, jewelry, credit card, bag and his belongings due to fire. The defendant admitted liability only for the lost passport. The policy terms of the above policy specifically cover coverage for loss of jewelry, valuables, cash etc. Also the lost item is not checked and not 'checked' and hence its loss is not covered as per the terms of the contract. As such, the decision of the respondent to settle the claim for the lost passport was only upheld.

Ahmedabad Ombudsman Centre
Case No. 11-011-0146
Mr. V Desai Vs Bajaj Allianz General Insurance Co. Ltd.
Award Dated : 18.10.2007

3) Repayment of claim under House Holder Insurance Policy: The complainant submitted that heavy rain / flood property destroyed 'domestic property. The claim was revoked on the grounds that the policy covers the insured's related household property at home at the address printed on the policy schedule. Since, the destroyed household items were lying at a different address as the policy violates the policy conditions. As such, the decision of the respondent to revoke the claim was upheld.

Ahmedabad Ombudsman Centre
Case No. 11-002-0152
Mr. K J Bodar Vs New India Assurance Company Ltd.
Award Dated: 24.10.2007

4) P. A. Revocation of claim under. Policy: The insured suffered an accidental glass injury, leaving deep wounds in the right arm. He was admitted to the hospital for treatment. The treating orthopedist recommended rest for 9 weeks. The defendant referred the case paper to his medical referee for opinion.

The TTD was proposed to be dealt with for 6 weeks. According to the referee's opinion, for which the insured was unhappy. According to the treating doctor's report, the insured was confined to his bed / house. The complainant insisted that the treating doctor is the best judge to fix the period so that the patient would be confined to the bed.

In addition, a medical opinion was taken early in the injury. As with all professional skills, it cannot be final and conclusive from the report of the treating doctor. The claim was settled for 9 weeks of TTD as demanded by the complainant.

Ahmedabad Ombudsman Centre
Case No. 11-004-0115
Mr. V J Shah Vs United India Insurance Company Ltd.
Award Dated: 24.10.2007

5) Repatriation of claims under Overseas Personal Travel Insurance Policy. The insured's bag was stolen during a visit to Bangkok. He lodged an FIR at the local police station and claimed for financial emergency assistance over the telephone. The executive over the telephone agreed to send $ 600 the next day. However, since, entering Malaysia the next day, the complainant, after returning to India, requested permission to claim, which was agreed upon.

The terms and conditions of the policy define 'financial emergency' as a situation in which the insured loses all or a substantial amount of his travel funds due to theft, such as having a detrimental effect on his travel plans. From the added documents, it was clear that the co-tourists helped the insured and she continued the tour for the next 8 days. Thus, it was confirmed that the theft did not lead him to the financial urges of nature as defined in the policy terms. In addition, there was no concrete evidence to mislead the insured over the telephone by officers. As such, defendant's decision to uphold the claim was upheld.

Ahmedabad Ombudsman Centre
Case No. 11-012-0063
Case No. 11-012-0025
Ms. H R Parmar & Mr. H R Parmar Vs ICICI Lombard General Insurance Co. Ltd.
Award Dated: 29.10.2007

6) Revocation of claim under HHI policy. The property of the insured was damaged in a flood in Surat. It was claimed by the defendants that the surveyor found that the subject premises was not a dwelling, but was a warehouse being used for commercial purposes and that HHI policy included only dwellings. According to the dictionary, housing is a house that is used as a residence and not for a commercial purpose. From the picture of the premises, it is seen that the property had iron rolling shutters commonly used in motor garages or warehouses. In view of this, no further relief was given to the complainant.

Ahmedabad Ombudsman Centre
Case No. 11-010-0325
Ms. A P Gandhi Vs  IFFCO Tokio General Insurance Co. Ltd.
Award Dated : 22.03.2008

7) The insured complainant obtained a maritime inland transit policy from National Insurance Company Limited for transportation of its household cargo from Durgapur to Rourkela by truck. The journey started on 29-04-2005. The insured complainant filed a claim for goods damaged during transit. The surveyor appointed Insurer assessed the loss for A. Amount of Rs. 5025 / against the estimate of Rs. 31,000 /.

The insured complainant received an amount of Rs 5025 from the insurer and lodged the complaint due to low settlement. The Insurer while filing a Self Contad Note stated that the surveyor assessed the damages that were damaged due to transit and did not consider the loss which was not covered under the policy. During the hearing, the insurer made his case in the SCN.

The insured complainant stated that the insurer settled the claim for a very palette amount. During the hearing, the insured complainant was directed to submit the repair bills and cash memos of the damaged articles to this forum within a month. But the insured complainant did not comply. So, the Honorable Ombudsman upheld the retaliation as the assessment of the loss by the surveyor is in order.

Bhubaneswar Ombudsman Centre
Case No.14– 003-0213
Sri S.R. Rao Vs National Insurance Co. Ltd.
Award Dated: 14.01.2008

What is the expiry time for an indemnity bond for insurance policy?

The period of compensation is the period for which benefits are payable under the insurance policy. It is also used to denote the time period for which compensation. Or compensation is payable under the business interruption policy. The period of compensation is usually the most important component of determining the amount of business interruption losses.

Extended period of compensation

The compensation period can be extended so that the policy covers the loss beyond the event. The post-event reinstatement period. Extended periods of indemnity are typically found within commercial interruption insurance policies. Business interruption insurance covers revenue. So, income that a company has lost as a result of the loss of its establishment. That's it.

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