Monday, September 30, 2013

What is Recharge of Insurance Sum Assured?

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The Recharge feature is available with Religare health insurance. Taken from Policy wordings of Religare Care, the explanation of Recharge of Sum assured is as Under:

Recharge is the Reinstatement of the Sum assured. If the claim is payable in the policy, then the company agrees to automatically make the reinstatement of upto the sum assured for that policy year only provided:

1) Recharge will be utilised only after the sum assured and No claim bonus has been totally exhausted in that policy year.

2) The Recharge shall be available only for all future claims and not in relation to any illness or injury for which a claim has already been admitted for that insured person during that Policy Year

3) The total amount of Recharge shall not exceed the sum assured for that policy year

4) The Recharge amount will not be available in case there is only a single claim in the policy year.

5) The balance of recharge amount shall be available during the policy year till it is exhausted completely.

6) Any Unutilised recharge cannot be carried forward to any subsequent Policy Year.

 

Now what the above exhibit shows is that Recharge was not available for the first claim, and as per the policy wording also recharge amount cannot be claimed for the first/single claim in policy. But for second claim where the sum assured was not proving sufficient, recharge gets activated and supported the claim payment. There's only one condition, which is that the claim where recharge will be utilised should not be related to any of the previous claim in that policy year. This means that if in all the scenarios above the Claim 2 was related to claim 1 then No Recharge of sum assured benefit would have been available.

Happy Investing!!

We can help. Call 0 94 8300 8300 (India)

Leave your comment with mail ID and we will answer them

OR

You can write back to us at PrajnaCapital [at] Gmail [dot] Com

---------------------------------------------

Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

Download Tax Saving Mutual Fund Applications

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

  1. ICICI Prudential Tax Plan Invest Online
  2. HDFC TaxSaver Invest Online
  3. DSP BlackRock Tax Saver Fund Invest Online
  4. Reliance Tax Saver (ELSS) Fund Invest Online
  5. Birla Sun Life Tax Relief '96 Invest Online
  6. IDFC Tax Advantage (ELSS) Fund Invest Online
  7. SBI Magnum Tax Gain Scheme 1993 Invest Online
  8. Sundaram Tax Saver Invest Online
  9. Edelweiss ELSS Invest Online

------------------

Best Performing Mutual Funds

    1. Largecap Funds Invest Online
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Birla Sun Life Front Line Equity Fund
    2. Large and Midcap Funds Invest Online
      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
    1. Mid and SmallCap Funds Invest Online
      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
    1. Small and MicroCap Funds Invest Online
      1. DSP BlackRock MicroCap Fund
    1. Sector Funds Invest Online
      1. Reliance Banking Fund
      2. Reliance Banking Fund
    1. Tax Saver MutualFunds Invest Online
      1. ICICI Prudential Tax Plan
      2. HDFC Taxsaver
      3. DSP BlackRock Tax Saver Fund
      4. Reliance Tax Saver (ELSS) Fund
    2. Gold Mutual Funds Invest Online
      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund

Posted by Sameer at 5:38 PM 0 comments  

Four Different Types of Personal Insurances

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Call 0 94 8300 8300 (India)

 

Generally there are four kinds of insurance policies which should be a part of your portfolio – life, health, personal accident and critical illness. Now the question arises as to who should take what and when? The purchasing of any policy should be guided by your life cycle stage and goals.

Life Insurance:

 It is very clear that when there is anyone financially dependent on you, you should definitely buy life insurance policy with adequate sum assured.

 

Health Insurance:

This is a very important cover which must be taken even if there are no dependents. Looking at the rising health care costs one must buy this policy the moment they become financially independent. Sometimes people avoid taking health insurance since they are already covered by their employer. But to cover up the uncertainties in the job market this insurance is must. Moreover one should understand that it would be very difficult to get a health cover once you get diagnosed with some illness or when you retire. The earlier, the better.

Critical Illness (CI) policy:

 One can buy a separate policy or can take it as rider with the life insurance policy. This insurance covers major illnesses related to the heart, brain, kidney etc. and provides a one-time lump sum amount for treatment. ( also read: All about critical illness policy)

Personal accident (PA) policy:

This is the most ignored amongst the lot as it does not have any tax benefit. On the other side it is the cheapest, so sometimes you find its benefit attached with your credit card, bank accounts etc. But like other policies this policy has its own impact on your financial well-being and insurance portfolio. This policy covers you in the case of accidental death, permanent total disability, permanent partial disability and temporary total disability. You can purchase this policy separately or can take it as a rider with any life insurance policy. But it is advisable to take it separately as you can manage it better. Also, the stand alone policies are generally more comprehensive than riders

Happy Investing!!

We can help. Call 0 94 8300 8300 (India)

Leave your comment with mail ID and we will answer them

OR

You can write back to us at PrajnaCapital [at] Gmail [dot] Com

---------------------------------------------

Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

Download Tax Saving Mutual Fund Applications

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

  1. ICICI Prudential Tax Plan Invest Online
  2. HDFC TaxSaver Invest Online
  3. DSP BlackRock Tax Saver Fund Invest Online
  4. Reliance Tax Saver (ELSS) Fund Invest Online
  5. Birla Sun Life Tax Relief '96 Invest Online
  6. IDFC Tax Advantage (ELSS) Fund Invest Online
  7. SBI Magnum Tax Gain Scheme 1993 Invest Online
  8. Sundaram Tax Saver Invest Online
  9. Edelweiss ELSS Invest Online

------------------

Best Performing Mutual Funds

    1. Largecap Funds Invest Online
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Birla Sun Life Front Line Equity Fund
    2. Large and Midcap Funds Invest Online
      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
    1. Mid and SmallCap Funds Invest Online
      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
    1. Small and MicroCap Funds Invest Online
      1. DSP BlackRock MicroCap Fund
    1. Sector Funds Invest Online
      1. Reliance Banking Fund
      2. Reliance Banking Fund
    1. Tax Saver MutualFunds Invest Online
      1. ICICI Prudential Tax Plan
      2. HDFC Taxsaver
      3. DSP BlackRock Tax Saver Fund
      4. Reliance Tax Saver (ELSS) Fund
    2. Gold Mutual Funds Invest Online
      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund

Posted by Sameer at 4:58 PM 0 comments  

Financial Discipline in Investing to reach your Goal

Invest In Tax Saving Mutual Funds Online

Call 0 94 8300 8300 (India)

 

The word financial discipline has 2 parts- Financial and Discipline, and both are you aware of separately but finds it very difficult to follow connected. Discipline by definition is the practice of training people to obey rules or a code of behavior using punishment or motivation. All of us have experienced discipline in our life in one way or other.

Schooling lays foundation is one's life. And it is the place where we first experience discipline. To lay discipline in our studies there were a set of curriculum, set of rules, punishments and behavioral strategies to regulate children and adolescence to maintain order. We've experienced a defined standard of clothing, time keeping , social behavior etc. in school. The one who follows every rule with obedience and sincerity gets best student of the year award. Parent teacher meeting gets organised every month to review the kids' progress and point out the gaps if any, so that all the stake holders remain on the same page and goal of kids' betterment be achieved.
 

Discipline and habit

 

Discipline can be brought in through Punishment and motivation. You may scold or punish your kid to refrain him from doing something; also you may offer him some gift or anything of his liking to make him do something like getting good marks in exam etc. As the kids started growing old the former method starts losing its importance. Motivation plays a big role than punishment. Same way some people work hard in job, follow the code of conduct , rules and policies laid down by company, with the fear of losing job , which shows the reason of his discipline is Punishment. On the other side some people work hard with a view of getting promoted or earning appraisal next year and this is motivation. Getting up early for a morning walk might be sort of punishment for many but slowly when one starts feeling the improvement in his health it becomes a motivation and he starts enjoying it and generates more positive results. Many times discipline starts with punishment or we take it as punishment but when we become regular to that and find good results we get motivated to continue with it and later it becomes our habit.

 

What is financial discipline anyway?

 

Complete financial sector work in a defined and disciplined business strategy. They follow the rules and laws set out by regulators which keep a check on their work and financial discipline. And those who don't follow the basic rules of borrowing, spending, investing …face situations like what kingfisher is facing today or what has been happened in the western countries. We have our seniors /bosses who keep a watch on us for our work discipline. But in our personal financial life we are so mismanaged, that many times we find it difficult to go for a movie in the last days of month. We don't take holistic view of our finances and what effect one decision is going to give on other. We come to know of our financially undisciplined behaviour when we get punished in the form of Loan rejection due to bad credit score or life Insurance rejection due to not filing proper income tax return etc.

Now you have two options. Either get the signals in the right sense and find out motivation in that punishment or close your eyes on your financial matters as you always do. Please understand that you just can't blame on government, economy or employer for all those mistakes that you have or are committing. This is your financial life, make it or break it. Going forward your child will ask for a certain amount for his education, you will not be receiving regular pay checks after retirement, Your employer or government will not be there to support your family in case something happens to you. It's high time to understand the responsibilities and show some financial discipline. As I said above that in starting you may have to compromise on many things like you could not be able to buy latest I phone or LED or may have to postpone your vacations …and thus you start taking it as punishment, but going forward the results will motivate you to continue and it will become your habit.

Smart tips to inculcate Financial discipline

  1. Prepare a monthly spending budget and stick to it.
  2. Invest with a goal. Goals give direction and help you in selecting right product.
  3. Avoid loans for your desires. Better do a financial planning check before going in for a big purchase.
  4. Invest monthly to become regularise in your savings and this will also help you maintain consistency.
  5. Motivate yourself by visualising the goals and the end result for which you are working for.
  6. Pamper yourself. Give yourself a party/vacation or whatever you feel like when you achieve your savings/spending target. But please make sure to do this provisioning in your monthly budget. After all your efforts should be properly rewarded.
  7. Penalise yourself if you stop your investments before target date or spend more than what you have budgeted for. Your penalty can be not having any dine out in that particular month.
  8. Be accountable to someone. Both spouses can keep a check on each other on the spending habits.
  9. Take help of financial planner where ever you require. They can be a good source of support.
  10. If your credit cards are bothering you and coming in the way of being disciplined …get rid of them.
  11. Take review of the situations after a set period.

Unfortunately we did not learn in school on how to be in financial discipline, thus you yourself has to find it out. There are a number of obstacles that stand in your way when it comes to financial discipline. Over time we haven't practiced the basics and unfortunately that has led many of us being in debt, unprepared for retirement, with little to no emergency fund. Many of us aren't even aware of what our debt really costs us. We don't really know what our debt looks like, or think about how it affects our future.

See, it's all about giving a start. In the words of Robin sharma -New habits become old habits when you do them every day. So adopt one great new habit today. We only do challenging things if we can convince ourselves that the reward for doing these things is greater than the cost of doing them. I have read somewhere that psychologist say it takes 30 days to create a new habit. Getting up at 5 a.m to jog daily may be hard at first, but after 30 days it will become a routine. The same thing goes with money.

Happy Investing!!

We can help. Call 0 94 8300 8300 (India)

Leave your comment with mail ID and we will answer them

OR

You can write back to us at PrajnaCapital [at] Gmail [dot] Com

---------------------------------------------

Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

Download Tax Saving Mutual Fund Applications

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

  1. ICICI Prudential Tax Plan Invest Online
  2. HDFC TaxSaver Invest Online
  3. DSP BlackRock Tax Saver Fund Invest Online
  4. Reliance Tax Saver (ELSS) Fund Invest Online
  5. Birla Sun Life Tax Relief '96 Invest Online
  6. IDFC Tax Advantage (ELSS) Fund Invest Online
  7. SBI Magnum Tax Gain Scheme 1993 Invest Online
  8. Sundaram Tax Saver Invest Online
  9. Edelweiss ELSS Invest Online

------------------

Best Performing Mutual Funds

    1. Largecap Funds Invest Online
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Birla Sun Life Front Line Equity Fund
    2. Large and Midcap Funds Invest Online
      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
    1. Mid and SmallCap Funds Invest Online
      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
    1. Small and MicroCap Funds Invest Online
      1. DSP BlackRock MicroCap Fund
    1. Sector Funds Invest Online
      1. Reliance Banking Fund
      2. Reliance Banking Fund
    1. Tax Saver MutualFunds Invest Online
      1. ICICI Prudential Tax Plan
      2. HDFC Taxsaver
      3. DSP BlackRock Tax Saver Fund
      4. Reliance Tax Saver (ELSS) Fund
    2. Gold Mutual Funds Invest Online
      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund

Posted by Sameer at 4:00 PM 0 comments  

HDFC Life Health Assure Plan

Invest In Tax Saving Mutual Funds Online

Call 0 94 8300 8300 (India)

 

 

·         Minimum entry age is 18 years (90 days for dependent children) and Maximum entry age is 70 years.

·         This policy has lifetime renewability

·         Premium guarantee for 3 years even if you make a claim, there's even an option to pay single premium for 3 years (with discount).

·         Under the family floater plan spouse, children, Both Parents and Parents in law can be covered.

·         No claim bonus (which they call as Multiplier benefit) is 50% for first year and 50% for next year. This means that if you don't make claim in the first 2 years, then the policy sum assured will get doubled. But it has one clause, if you make claim in any year then Multiplier Limit will be reduced by 50 % of the policy sum assured. Claims in 2 consecutive years will reduce the Multiplier benefit to

 

HDFC Life Health Assure Plan – Other benefits and Restrictions

·  Per day room rent limit is 1% of Sum assured in regular rooms/ward and 2% of Sum assured in ICU.

·  There are 200 defined day care procedures in the policy which is covered upto the full sum assured. However If the Insured is advised by the Medical Practitioner to undergo a new Day Care Procedure which is not yet listed then the claim will be considered subject to it being pre-authorised by the company.

·  Pre and Post hospitalisation benefit is 30 days and 60 days respectively.

·  Emergency Ambulance expenses are covered upto Rs 2000/- per policy year only if hospitalisation is in ICU or emergency ward, and inpatient claim has been accepted.

·  Maternity benefit is covered only in the family floater Gold Plan. This benefit is available for hospitalisation as an inpatient due to Pregnancy or any other complications thereof including delivery and medical termination of pregnancy. The maximum limit is 3% of Sum assured per pregnancy upto maximum of 2 episodes of pregnancy. Also note that this benefit is only available to Policyholder (if female) or his spouse.

·  Co-Payment of 20% will be applicable if claim is made in non network hospitals

 

HDFC Life Health Assure Plan – Should you buy?

Frankly, this policy is more or less like already available health insurance plans. Multiplier benefit is a different feature which as of now is available only with Apollo Munich optima Restore. Single premium payment for 3 years (with good discount) and premium guarantee of 3 years even if you make a claim is also good feature. But one's decision to purchase the policy should not be based on these features only. Covering parents and Parents in law is also not different as it is available in many policies these days. Among some restrictive features are room rent limits and co pay condition in non network hospital.

Happy Investing!!

We can help. Call 0 94 8300 8300 (India)

Leave your comment with mail ID and we will answer them

OR

You can write back to us at PrajnaCapital [at] Gmail [dot] Com

---------------------------------------------

Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

Download Tax Saving Mutual Fund Applications

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

  1. ICICI Prudential Tax Plan Invest Online
  2. HDFC TaxSaver Invest Online
  3. DSP BlackRock Tax Saver Fund Invest Online
  4. Reliance Tax Saver (ELSS) Fund Invest Online
  5. Birla Sun Life Tax Relief '96 Invest Online
  6. IDFC Tax Advantage (ELSS) Fund Invest Online
  7. SBI Magnum Tax Gain Scheme 1993 Invest Online
  8. Sundaram Tax Saver Invest Online
  9. Edelweiss ELSS Invest Online

------------------

Best Performing Mutual Funds

    1. Largecap Funds Invest Online
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Birla Sun Life Front Line Equity Fund
    2. Large and Midcap Funds Invest Online
      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
    1. Mid and SmallCap Funds Invest Online
      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
    1. Small and MicroCap Funds Invest Online
      1. DSP BlackRock MicroCap Fund
    1. Sector Funds Invest Online
      1. Reliance Banking Fund
      2. Reliance Banking Fund
    1. Tax Saver MutualFunds Invest Online
      1. ICICI Prudential Tax Plan
      2. HDFC Taxsaver
      3. DSP BlackRock Tax Saver Fund
      4. Reliance Tax Saver (ELSS) Fund
    2. Gold Mutual Funds Invest Online
      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund

Posted by Sameer at 1:36 PM 0 comments  

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