A bike insurance policy is a very handy kind of insurance. It offers many benefits and keeps your bike safe and secured. The insurance provider offers this protection. In return, you pay the insurer a premium. The premium is calculated after taking several factors into consideration. From the make and model of the bike to the scope of the cover, many components determine the final premium that you are expected to pay. Unfortunately, some people end up paying a higher-than-required premium. Do you fall into that category? Let’s find out.

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Reasons why you may be paying a higher bike insurance premium

  1. You have the incorrect type of cover – You need to see if the type of two wheeler insurance you have is correct. 2 wheeler insurance is available in two forms – comprehensive and third party. If you need a third party cover and you have a comprehensive cover, you are unnecessarily paying a higher bike insurance premium. So understand the two types of cover and choose wisely thereafter.
  2. You did not compare – Did you compare bike insurance online before you bought the plan? If you didn’t then probably you bought an expensive cover. Comparing is the key to finding the best plans at the lowest rates. If you don’t compare, you don’t even get to know about the cheaper motor insurance covers that may offer the same kind of coverage.
  3. Your IDV hasn’t been calculated properly – Every vehicle depreciates in value with time. And since the value of a bike insurance policy is proportional to the value of the bike itself, the premium should also reduce every year. If your IDV is not calculated properly, you may be paying higher for a bike that has a lower value. So use an online calculator and ensure your IDV is correct.
  4. Your NCB has not been deducted – If you don’t make any claims in the previous policy period, you get a discount on the premium of the following policy period. This is known as the No Claim Bonus [NCB]. At times, the insurance provider doesn’t deduct your NCB and this leads to you paying a higher premium. Do ensure that NCB is calculated properly when you renew your 2 wheeler insurance cover.
  5. Your deductible is too low – You can choose to pay a deductible at the time of claim. If you opt for a higher deductible, your premium will be lower and vice-versa. You may have blindly agreed to the deductible offered by your insurer, which pushed up your premium. When you renew your policy next, calculate a reasonable figure yourself. This will help to reduce your bike insurance costs.
  6. Your bike isn’t safe – You can get a discount on your bike insurance plan if you install some safety gadgets in your vehicle. Currently, you may be paying a higher premium because there aren’t any such devices. If yes, then you need to install the gadget right away!
  7. You have too many riders – Did you choose to buy a lot of riders when you bought bike insurance online? If this is the case, then you need to drop some riders as riders push up the premium of your bike plan. Keep the riders that you absolutely need and discontinue with the others.

Conclusion

If you actually find these points hold true, make some changes to your cover when you renew bike insurance online. You do not need to carry on with the same cover – you can always make amends and get your two-wheeler insurance costs reduced. So do your homework, choose the right policy and you will surely be paying the most accurate price for it.

A bike insurance plan has various components to it. This is why no two plans are identical in nature. This is a reason why you should always compare two wheeler insurance. Certain plans offer a particular type of cover, other plans offer a different cover. For instance, if you need a cover for your own vehicle, you will have to pay the own damage premium. Take a look at this article to know more about this very crucial bike insurance component.

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‘Own damage premium’ calculation

The own damage premium calculation depends on a number of factors. These include

  1. The scope of cover – Own damage refers to the money you are expected to pay if your vehicle is damaged or stolen. The damage can result from a road accident, from a natural calamity such as a cyclone or an earthquake, from mishaps such as fires, etc. You also need to replace your vehicle if it is stolen. For all these purposes, you can opt for an own damage bike insurance and get a claim. The insurance provider will compensate for your loss. You can then use the insurance money to either repair your bike or replace it altogether, depending on the situation. Higher the scope of the cover and the fewer the exclusions, higher will be the bike insurance premium. You can use a bike insurance calculator to understand what your premium liability will be like.
  2. Value of the two-wheeler – An insurance cover depends on the value of the object being insured. So quite naturally the make and model of your two-wheeler plays an important role in determining the own damage premium. When you use a two wheeler insurance premium calculator, you are first asked what kind of a two-wheeler you own. If you have a TVS Scooty Pep, your premium will obviously be lower as compared to the premium for a Yamaha ZTR!
  3. IDV – Every vehicle depreciates in value with time. The Insured Declared Value [IDV] is calculated keeping this in mind. A bike insurance calculator first calculates the IDV and then arrives at the accurate own damage premium. Your own damage premium liability is also dependent on the IDV. The older the bike is, the lower your premium is likely to be. Use a two wheeler insurance premium calculator to get a better understanding of the exact figures.
  4. Insurer’s pricing – Bike insurance plans from different insurers have different rates. The own damage premium charged by one insurance provider will vary from the other. You, therefore, need to compare two wheeler insurance before you buy the plan. You will then find a good plan with the lowest and most comprehensive own damage premium.
  5. Inclusive of third-party liability – Your own damage cover is usually available with a comprehensive plan. It is an optional cover, whereas a third party cover is compulsory. When you use the bike insurance calculator to find your own premium liabilities, you see a combined price of your third party as well as own damage premiums. Do not get duped into paying a separate third party premium. A comprehensive plan that offers an own damage cover automatically offers a third party cover too.

The Final Word

As you can clearly see from the points mentioned above, an insurance premium depends on various factors. When it comes to your own damage premium, you need to be careful and see whether or not you are being charged accurately. Use the online premium calculators for this purpose. Also, keep your bike’s IDV in mind. If you do the math properly and more importantly if you compare before you buy, you will surely find the accurate rate that you have to pay as your own damage premium.

Buying insurance for your sports car is just as important as buying the car itself. Not only is insurance legally mandatory, but your insurance policy will protect one of the biggest financial investments you will make. We will discuss the top models of sports cars, and give 10 tips to help you buy your car insurance policy.

Image Source – Car Insurance

Top Sports Cars

There are many brands of sports cars, but the top brands of sports cars are the following:

  • Porsche 911 Turbo S
  • Audi R8 LMX
  • Lamborghini Aventador
  • Aston Martin Vanquish

There are many others, but these are some of the trendiest cars in India. Once you have bought your sports car, it is time to buy car insurance online.

Tips When Buying Insurance

We recommend following the ten tips when buying insurance for your sports car. Sports cars are always at the top in the car groups of insurance companies, thus premiums will be much higher than a normal car.

#1 Buy Comprehensive Insurance

We would not recommend third-party car insurance for a sports car. We would recommend comprehensive insurance. This is because third-party car insurance will not cover damage to your car. If you have an accident, your car can end up as a worthless heap of metal, and you will have to foot the bill to replace it.

#2 Buy Insurance Add-Ons

Make sure that you buy insurance add-ons, such as engine cover. This will ensure that you are not out-of-pocket if anything goes wrong with your car that is not a part of the insurance coverage.

#3 Use Online Comparison Websites

The online comparison websites can compare car insurance quotes with a few clicks, saving you from doing the math. You can buy car insurance online through a comparison website.

#4 Theft Cover

Ensure your insurance policy covers theft. Sports cars are highly desirable and can be at a risk of theft. Most comprehensive insurance plans offer this as a part of the coverage. This is yet another reason not to go for third party car insurance for a sports car.

#5 Secure the parking space

Do you store your car in an unlocked garage or leave the doors unlocked? Your insurance company will often not pay you a penny, read your policy documents closely. Ensure your car is kept secure at all times. Ensure your driveway has CCTV.

#6 Renew your policy in time

Renew your car insurance as soon as it expires. This can save money, especially if you shop around. At the end of your policy, try bargaining with your current insurer instead of just renewing before you change providers, you might be surprised at the cost savings.

#7 Buy Tailored Insurance

Buy car insurance online that is tailored to your make and model of car. This is most certainly the case in the case of sports cars. Different brands of cars are in different groups, and this is used by insurance companies to determine premium costs, such as the cost of parts/labor. This is why it is important to shop around for insurance tailored to your make/model of sports car.

#8 Drive Carefully

This shouldn’t even need to be said, but drive with care. This will protect your no-claims bonus and will keep your insurance premium down.

#9 Customer Loyalty

This is often not rewarded in the car insurance industry, but if you have insurance with a certain provider already such as house insurance, you may find owning a car insurance policy with them to be much cheaper.

#10 Maintain Your Car

A well-maintained car will protect your no-claims bonus and will be required by some insurance companies to complete the process of insurance.

Now that you are armed with the above information, you can buy car insurance online for your sports car. Go with a good comprehensive insurance plan, follow the above advice, drive carefully and enjoy your new pride and joy that is your properly insured sports car.

As a child, you probably wanted to do many things when you grew up: become an astronaut or a detective like Sherlock Holmes, go underwater in a submarine, play cricket for India and own your dream car. However, as you grew, your perspective in life changed and your dreams took on new shapes. But despite all the ‘growing up’, one thing remained constant: your dream car. You wanted to own it then, and you want to own it now. Instead of taking a loan to make your dream come true, how about investing towards it?

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Buying a car through loan

Most people take out an auto loan to purchase a car. This seems like a simple solution but you need to think of different aspects such as:

  1. How much money do I have to put down as down payment?
  2. How much money should I take as the loan amount?
  3. What is the rate of interest I have to pay?

After you decide on the answers, you apply for a loan from a bank or a lending company. Once your loan is approved and you get the car, you have to start paying EMIs. This can result in a significant outgo from your monthly salary.

This is why many experts don’t encourage auto loans. It is because, on a fundamental level, an auto loan does not create an asset that appreciates over time. In fact, the value of a car depreciates as years go by. And by the time you finish paying the loan, it may be time to purchase a new car.

Let’s take an example to illustrate how much you have to spend to purchase a car

Assume you wish to buy a car that costs you Rs. 10 lakhs. You make a down payment of Rs. 3 lakhs and take a loan amount of Rs. 7 lakhs. With the tenure of 6 years and 11% rate of interest on the loan, you would have to pay Rs. 12,000 as EMI each month throughout the loan.

Going the investment route

It is a great feeling to own and drive your dream car each day. But as mentioned above, a car is a depreciating asset that can result in a cash outgo from your pocket. But what if you could offset this outgo through investments.

This is how it is possible

As you pay the EMIs, you can simultaneously begin investing in mutual funds through a Systematic Investment Plan [SIP]. For example, let’s assume you invest Rs. 6,500 each month in a balanced mutual fund that offers 15% annual rate of return. By the end of 6 years, you would have earned an amount equal to Rs. 7.6 lakh. This is more than what you paid for as EMI for your car loan.

Therefore, an overall monthly outgo of Rs. 18,500 [12,000 + 6,500] over the tenure of the car loan can prevent a dent in your savings.

Investment planning

Another way is to bypass the auto loan route completely. Buying a car is a crucial decision in your life. It is something that you plan and think about carefully. So, if you are planning to buy your dream car, say, in another 5 years’ time, it is a good idea to start investing for it right away. You can invest regularly in equity funds or index funds through SIP and create a substantial lump sum right in time to buy the car you want.

There are many other benefits of investing in Mutual Funds such as good returns, tax benefits, investment discipline and easy diversification.

Conclusion

Taking a loan to purchase a car is common but investing for a car is easier and more cost effective. By planning carefully, you can invest a lot more in SIPs because you don’t have to pay monthly EMIs anymore. And when you finally get the car of your dreams, think of it as a gift by you to you.

The rising real estate prices are the reason why many people become reluctant to buy the house of their dreams. Therefore, most people opt for a housing loan to fulfill their heart’s deepest desire. Besides, there are many other benefits that can also be availed with a home loan. This is why people don’t mind going through the lengthy process, because after all, everyone deserves a home.

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Here are some of the home loan benefits that one can enjoy

  1. No Prepayment Charges For floating rate home loans, there are no prepayment charges applied. This means that you can pay the home loan amount whenever you have surplus money.
  2. Tax Benefits The Government of India provides tax deductions on the interest paid on home loans and on the principal amount. These efforts are made to encourage more and more people to buy their own houses.
  3. Balance Transfer You can transfer your housing loan to another lender if you are getting the loan at a lower interest rate.
  4. Capital Appreciation One of the best home loan benefits is that you can enjoy the capital appreciation, which becomes visible over time when the rate of the property rises.
  5. Repayment Tenure The repayment tenure for any home loan is the longest as compared to other loans. You can receive a repayment tenure of up to 30 years, which enables you to repay the loan slowly and without any stress.

More on Tax Benefits

As stated in the Income Tax Act under two different sections, home buyers can get many tax benefits on the housing loans that they opt for.

  • Under Section 24 The prospective buyer can avail a tax benefit through deduction on the interest paid on home loan. Under this section, the buyer can claim a deduction of up to Rs. 200,000.
  • Under Section 80C The prospective buyer can avail a tax benefit through deduction on the repayment of the principal of the home loan. Here, the buyer can claim a deduction of up to Rs. 150,000.

Therefore, the total tax benefit that the buyer can get is of Rs. 350,000.

Tax Benefits on Joint Home Loans

If you apply for a joint housing loan along with your family member or spouse, then you can avail the tax benefits under Section 24 and Section 80C separately. On joint home loans, if your ratio is of 50:50 then you can claim deduction on interest paid for up to Rs. 400,000 and a deduction on principal amount of up to Rs. 300,000 maximum!

This will reduce the overall loan for your family considerably. The total deduction will amount to Rs. 700,000. Moreover, if both the entities in the joint loan are in the highest tax slab, then they can avail a tax benefit of Rs. 210,000 which is about double compared to the tax benefit on an individual housing loan.

Gender Benefits on Home Loans

In a move to empower the women of our country, lenders offer many benefits to them over men on housing loans. Some such home loan benefits offered to women are:

  1. Higher Loan Application Acceptance Rate Home loan applications are scrutinized very minutely before they are passed and accepted by lenders. However, women have more chances of getting their application accepted in a short span of time.
  2. Lower Interest RatesSince home loans are usually of a high amount and therefore, even the slightest change in the interest rates can make a considerable dent in the loan amount. Most banks offer housing loans to women at lower interest rates.
  3. Lower Stamp Duty The stamp duty proves to be a burden for prospect house buyers. However, many states in the country offer lower stamp duty for women buyers, whether they have applied individually or as joint owners. A concession of about 1% or 2% is offered to women in many places.

Living life in the fast lane comes with a lot of ups and down. You will face several obstructions and challenges that will make your life difficult. The unpredictability of such events can’t be calculated as they lead to unfavorable twists and turns in life. A personal accident insurance plan ensures that you and your family members get adequate financial help to recover from such tragedies.

Image Source – Forbes

Go through these 5 points to understand the nitty-gritty of personal accident covers-

1. What Is Personal Accident Insurance?

Accidents can occur anytime, anywhere! A personal accident policy is an insurance policy issued to cover the risk of death, permanent disability, partial disability or temporary disability in case of accidents. The insured sum is reimbursed to the policyholder in case of disablement or the family members in case of death.

2. What Does It Cover?

Personal accident insurance policy covers partial/ permanent/ temporary disability and death caused due to the accident. It also includes medical expenses owing to the treatment of accidental injuries caused due to accidents. In short, a personal accident insurance will take care of your financial needs in the hours of need.

3. Benefits

An accident can lead to terrifying catastrophic events in one’s life. If you are the breadwinner of the family, then it will be even more difficult for you and your family to manage in such an untoward situation. The financial stability goes for a toss, and the family members have to go through a lot.

Hence, it is advisable to buy a personal accident cover as it offers a host of benefits –

  • No Medical Check-ups needed – Personal accident policies do not require medical check-ups for issuance
  • High Cover – You can avail a good, substantial cover for
  • Group Discounts – If you opt for group accidents cover, you stand to get discounts from the insurance companies.
  • Death and Disability Cover – It offers double indemnity for death or disability caused while traveling on public transport
  • Life Support Benefit – It provides life support benefits as well.
  • Child Education Benefits – Legal and funeral costs are covered with Child education benefits.
  • Flexibility – You can opt to buy a personal accident cover for either yourself or for the family.
  • Safeguard against the Sky-rocketing Healthcare Costs – With healthcare costs rising about 15-18% each year, within the next five years, the cost of hospitalization will be more than twice. This plan will protect you against this inflation.

4. Who Should Buy It?

Everyone, irrespective of the age or gender should buy a personal accident cover. The best time to buy a personal accident plan is the early 20’s of your life – when you start earning and don’t have many liabilities on your shoulder. Even if you meet with an accident, the insurance policy will take care of the best medical treatment and help you recover and get back on your feet.

5. How Much Is Enough?

Human life is precious! Therefore, you cannot estimate the sum insured which can adequately take care of the needs of your family when you are seriously injured or not around. However, according to the traditional approach, one should have a personal insurance cover worth 100 times of their monthly income. The amount is said to be enough to cover hospitalization expenses, medical costs, and other obligations and liabilities in your life. For example – if your monthly income is Rs. 20,000, then you should have a personal accident cover of at least Rs. 20, 00, 000/-.

If you are looking forward to buying a personal accident insurance policy for yourself, then you should research various plans online. Consider going through their benefits, features, terms, and conditions and only then decide to buy. From the information mentioned in the blog, you are fully equipped with the necessary knowledge of personal accident insurance. So, what are you waiting for? Buy a personal accident insurance plan immediately and lead a worry-free and relaxed life. You owe it to yourself as well as your family members!

The stock market is an excellent investment option if you want to earn high returns albeit at a higher risk. In India, the number of individuals investing on their own in the stock market has increased. This trend has been particularly increasing since the availability of the online trading and banking services.

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To trade in the equity markets, you will need a dematerialization or demat account. This type of account allows you to hold your shares, mutual funds, securities, and other investments in an electronic form. The account is opened with one of the several depository participants (DPs).

A DP acts as an intermediary between you and the depository. In India, there are two depositories, namely Central Depository Services (India) Limited (CDSL) and National Securities Depository Limited (NSDL).

You may open your demat account with any of the DPs. Here are five factors that must be considered when you open such an account.

  1. Brokerage

In addition to the dematerialization account, a trading account to buy and sell the securities is required. The brokerage is the primary source of income for the service providers. It is determined by the frequency of your trades. Therefore, choosing a competitive brokerage if you are going to be an active trader is recommended.

  1. Annual maintenance charges

The DPs levy an annual maintenance charge. It is important you check these charges and negotiate the same prior to opening the account.

  1. Trading platform fees

Most service providers offer their own software that facilitates buy and sell trades on your behalf. While some of these providers levy additional fees others may include it within the overall package. Seeking clarification on such trading platform fees and comparing these among the different service providers before you make your decision is advisable. In addition to the charges, it is crucial you choose a provider that offers an easy-to-understand trading platform.

  1. Background of the service provider

The track record of the broker should be checked for their authenticity, reliability, efficiency, and capabilities. You can always search the Internet for feedback from existing and past account holders to know more about their services. Taking the time to conduct extensive research will help you avoid any difficulties in the future.

  1. Financial institutions

Several reliable and reputed financial institutions offer three-in-one account to attract more customers. These accounts provide you with a complete package of different financial services. You might want to open your demat and trading account with such an institution to make it convenient and simple.

You must have a demat account to trade on the stock market. Most banks and institutions offer such services and conducting your research will help you make an informed decision. It is recommended you do not make a hasty decision that may have severe implications in the future.

Living in times when the food, air and water are exposed to supreme levels of contamination, the risk of life-threatening health hazards is deemed to be alarmingly high. Stress, sedentary lifestyle, unhealthy dietary habits and severe anxiety are among the key factors that are encouraging chronic health disorders and fatal diseases in people. In a critical time as this, it is imperative to prioritize one’s health before everything for the sake of a secured and independent future. This is where health insurance plays an important role in our lives.

Source – fstoppers

A good health insurance plan will offer protection to you and your family members against the uncertainties that arise due to lack of funds for proper treatment.

What are the popular choices of health insurance in each stage of life?

Primarily there are four different types of health coverage plans that take care of the requirements of the people of different age groups. It is extremely crucial that a person invests in a sound health scheme to avail its benefits at the time of need. The primary focus of people during their peak years in work life should be to protect the resources and income of their loved ones and their own. While in the latter half of their life, their focus should be driven towards planning their life after retirement and ensuring the financial security for the same.

The following are the different types of health insurance classified as per the changing stages of life.

1. Self-employed, small-scale employer and adult

Personal health insurance – This insurance plan includes all the health-related expenses that are usually not covered by a typical provincial or employer insurance plan. This mostly covers areas of personal medication, dental health and other health and wellness oriented-needs. The benefit is payable at the time of meeting the eligible expenses under the claim. Find out if your existing personal health plan is inclusive of cardiovascular ailments or if you need to avail a high cholesterol health insurance plan.

2. Working adult

Disability insurance – This plan intends to replace a portion of your income at a time when you are unable to work because of any form of disability.  The benefit is payable when the person is incapable to work as defined under the chosen coverage. Any adult whose lifestyle relies heavily on their constraint income should avail the benefits of disability insurance to safeguard their livelihood even in disability.

3. Children and adult

Critical illness insurance – This insurance is designed with the aim of helping the insurer and their loved ones to meet the expenses of treating a life-threatening disease.  The insured can claim the benefits of the policy when they are diagnosed with a critical disease and meet the requirements of the coverage.

The insured avails a sum for meeting their medical treatment. This is not an age-specific insurance plan; both children and adults should get a critical illness insurance coverage to be prepared to meet the uncertainties of life.be two steps ahead of critical illness related to heart by opting for the best of medical insurance plans for high cholesterol today.

4. Middle-aged and older people

Long-term care insurance – This plan is designed to cover your expenses for an extended period of time, especially at an age when one requires other’s assistance due to reduced mental and physical abilities. This can be deemed be as the perfect retirement planning and a step for gaining control over assets. Working class people who are thinking to start their retirement planning should consider this sort of plan for a financially secured life after their retirement from work.

More people are suffering from cardio-vascular diseases these days, why don’t you be prepared for the situation by opting for one of the best medical insurance plans for high cholesterol. Start with an investment in a high cholesterol health insurance plan if you are concerned about your cardiac health.

You can also browse through various health insurance plans online and compare the best ones to find out which plan offers the best and broadest health coverage and at what cost. Consult a trustworthy and qualified insurance advisor to avail the best health insurance scheme that not only suits your finances but also prepares you to meet any health-related emergencies.

References https://www.livemint.com/Money/r946kZa4ZiqNghWh6GUP1H/4-financial-life-stages-and-how-to-plan-for-them.html