Term insurance policies offer life insurance coverage for a designated period or “term”. The key feature of a term policy is that it offers death benefits to the nominees of the policyholders in the event of the untimely demise of the policyholder during the insurance tenure. If the policyholder survives during the period of his/her term insurance policy, there is no maturity benefit offered under the term insurance plan.

In order to ensure a robust financial cover for their loved ones, a lot of people opt to buy more than one term policy. Buying multiple term policies is perfectly legal as long as

• You have disclosed the information about your existing insurance policies before buying a new one
• The combined maturity value of all these policies does not exceed the policyholder’s Human Life Value.

Having more than one term insurances offer several benefits, such as

Protection against Claim Rejection

In case of claim rejection with one of your term insurance plans, the second insurance policy can act as a hedge for providing financial relief to your nominee. Also, there have been unfortunate cases, where an insurance company has gone under, leaving the policyholders or their beneficiaries in a financial lurch. In such cases, your second term plan can offer financial security.

Laddering On the Premium

Laddering is a technique where a policyholder buys multiple small insurance policies, in an effort to save on the premium amount. The key concept behind laddering is that our financial needs change over time. Earlier on in your career, when your financials are not in order, the need for taking out a life insurance for your loved ones is high. However, if you cannot afford the high premium, you can get a collective robust insurance plan by laddering on small insurance policies. As and when you make financial progress, you can either opt to combine these insurance plans or buy a new term insurance with a higher premium.

Opportunity to Enjoy Additional Riders

Different term plans offer different additional rider term insurance benefits. The add-on benefits covered in one plan may not be offered in another. Thus, in order to enjoy the maximum additional rider coverage, you can opt to buy for more than one term policy.

Option to Convert Into Permanent Policies

Some term insurances can be converted into permanent life insurance policies. Suppose you have multiple term insurance policies but feel that you have amassed enough assets that can offer financial support to your nominee in the unfortunate event of your death. In such a case, you can opt to cover one of your term insurance plans into a permanent life insurance policy. This way, you can enjoy monetary benefits upon the maturity of the insurance policy, as opposed to no monetary benefits on the maturity of a term insurance plan.

Things To Consider When Buying Two Term Plans

1. When you buy more than one term insurance plan, you have to pay more than one premium amount every month. Make sure that you can afford to pay these multiple premiums to avoid either of your term insurance plans from being lapsed.
2. Keeping track of more than one term plan could become a tiresome process.

While there is no restriction on the number of term insurance policies that you buy, make sure that you do not go overboard with buying these policies. Buying more than one term insurance plan should dwell well with your future financial goal.

Having a savings account is an old and faithful way for financial growth. The goal of every financial plan is to build liquid assets over the time in your account. Other forms of investments like mutual funds or bonds enable you to increase your assets. However, a savings account is still considered as one of the safest ways to do so.

In the world of investment options, here are the seven good reasons why people should have a savings account.

Easy to set up

Savings account are easy to set up. Nowadays, many financial organisations are providing the facility of online savings account. You can open your savings account quickly by applying online, though you need to submit proper documents for it.

Easy accessibility

You get easy access to your money when you keep it in a savings account. Gone are those days, when you had to wait in ques to withdraw the required amount from your bank account. Nowadays, you can access your online savings account from your home. Moreover, you can obtain cash by using ATM cards linked to your savings account without even visiting the bank.

Growing your finances

The interest rates offered on savings account ensure the steady growth over the time. Though you can always invest in other options like mutual funds, etc. for financial growth, all major investment options have risk involved in them. On the other hand, there is no risk in keeping your money in a savings account as the interest gets added up on your deposit.

Availability of easy funds

The financial emergencies are an inseparable part of human life. The money you saved serves as an excellent back-up option to cover unexpected large expenses such as medical treatment or car repair. As you have easy access to funds in your savings account, you can get an immediate financial aid during the time of need.

Developing good financial habits

Our generations considered saving the money as one the best financial practices. When you regularly keep a part of your income aside in your savings account, you develop a habit to do so. This habit eventually works in order to establish financial stability.

Achieving the savings goals

Everyone has an eye on long-term, expensive goals like buying a new car or planning a dream vacation. Your savings account can be a very useful tool to achieve such goals where you can save money for a long time.

Hassle-free maintenance

You need to maintain a certain amount in your savings account as per your bank’s rules. If your account balance falls below the limits set up by the bank, you need to pay maintenance fees. However, you can easily avoid it by setting automatic transfer. You can get the automatic transfer service to transfer money from your current or salary account to your savings account to maintain the minimum balance.

By offering protection against financial liabilities that may arise in case of accidents, two wheeler insurance safeguards the vehicle and its owner. When purchasing a motorcycle, it is also vital to purchase two wheeler insurance to ensure that your vehicle is covered in case of unforeseen accidents. One needs to have proper knowledge of two wheeler insurance policy and all its inclusions and exclusions must be understood before purchasing the same.

Let’s discuss the inclusions and exclusions of your two wheeler insurance policy.

Types of two-wheeler insurance

Liability Only Insurance Policy

Third-party liability policy is mandatory in India by law. It covers against property damage, loss, death or bodily injury to a third party because of a mishap caused by the insured’s two-wheeler.

Inclusions of Third Party Insurance Plan

Third-party insurance for bike covers the insured against any third party legal liabilities in case of a third party death or injury in case of a mishap.

Exclusions of Third Party Insurance Plan

Any damage done due to non-collision is not covered under the two wheeler insurance third party liability plan. You need to bear the expenses of repairs yourself.

Your own vehicle will not be covered when it is damaged in an accident and only third-party liabilities will be covered by the plan. The company provides compensation for the claims made by victims. To get your bike repaired you have to pay from your own pocket.

Any damage done to the vehicle due to natural disasters or theft will not be covered under this plan.

Comprehensive Insurance Policy

This insurance policy covers everything included in a third party liability policy along with additional coverage for damage or theft of the two-wheeler. However, this policy is optional.

Inclusions of Comprehensive Insurance plan

The comprehensive Insurance plan covers damages caused to your vehicle due to non-collision. Along with the third-party cover, it covers the damages done to your own vehicle during the accident.

The best thing about the comprehensive two wheeler insurance is that you can get coverage against damages caused due to natural disasters like an earthquake and heavy rains. In case your two-wheeler gets stolen, you can file a claim. If it is not traced after a few months then it is declared as non-traceable and you will be provided compensation based on the current market value of your motorcycle.

Exclusions of Comprehensive Insurance Plan

The coverage is applicable only when you are driving with a valid license. If you are involved in an accident without a valid license, the insurer doesn’t pay any compensation.

In the same manner, if the driver is riding the vehicle under the influence of alcohol or drugs during an accident, then the claim will not be entertained.

You can’t claim for the coverage if you use the vehicle out of the geographical location specified in the policy. The coverage will be valid throughout the country and any damages that happen outside the country will not be covered under this plan.

The inclusions and exclusions may differ from one insurance provider to another. Therefore, make sure you read all the points mentioned in the policy document, especially the exclusions and the insurance claim process. By doing so, you won’t have any confusion or litigation in the near future.

You might be unsatisfied with your term plan due to various reasons. It is possible that various things can go wrong after you purchase a life insurance policy. However, it does not mean that you have to continue with the term plan.

Here are different steps you can take to get yourself out of the situation.

Five things to do if you are not happy with your life insurance policy

If you are in a situation where you are not happy with the policy, you should take the below-mentioned steps:

• Make the most of your free-look period

When you realize that you have purchased the wrong policy, the first thing you need to do is make the most of your free-look period for life insurance. Insurance companies offer a 15-day period. During this period, you can contact the company and inform them that you want to discontinue the policy. The premium will also be refunded to you after deducting the cost of medical test, risk premium, and stamp duty.

• Exit the term plan

Term insurance plans have a low premium. However, you are not allowed to surrender a life insurance policy. In case you exit the plan, you end up losing the corpus that you paid for in the form of premiums and will not get any death benefit. However, you can exit the plan during the free-look duration to avoid losing any money.

• Get additional life cover

If you think that the sum assured is low, you can invest in an additional life insurance cover. The plan will be over and above the sum assured and the benefits of the current plan. This means you will be able to enjoy comprehensive coverage. You can buy an additional life insurance rider that is suitable as per your coverage requirements.

• Surrender Unit-Linked Insurance Plan (ULIP) and endowment plan

If you want to know how to cancel a life insurance policy, you need to understand that companies offer a policy termination option. You can use the option any time after your policy completes three years. However, you will earn no return if you surrender the policy during the first year itself. The Insurance Regulatory and Development Authority [IRDA] states that if you surrender a policy after five years, you need not pay any costs such as fund management charge and surrender charge.

• Convert (ULIP) and endowment plan into a paid-up plan

Many insurers give you the option to continue a paid-up plan. This means you need not surrender your policy but can discontinue paying premiums and the policy will exist until maturity. The benefit will be proportionate to the premium amount that you have paid.

Your present financial situation is a very important factor when choosing a policy. You need to choose wisely and access the financial needs of your loved ones before you make a decision.

You make a wise decision by investing in an insurance policy. You invest in a plan to safeguard for the future and cover the uncertainties in life. You pay your hard-earned money to the insurance company to remain secure in the future. Hence, the thought of an insurance company going bankrupt and a life insurance policy being of no use is quite scary and it can make anyone nervous.

Is it possible for an insurance company to go bankrupt?

You need to have detailed information about life insurance to find an answer to the aforementioned question. A company has to adhere to the norms of the Insurance Regulatory and Development Authority of India [IRDAI], the regulator of the Indian insurance industry to function in the industry.

According to the IRDAI, an insurance company needs to be registered and requires approvals to start a business in India. Any company cannot simply start an insurance business. It is important to meet the capital requirement in the country. For a company to sell insurance policy in India, the capital should be INR 100 crore and the IRDA has a right to cancel the license if the insurer does not abide by the guidelines.

Once the company starts operations in the market, the ‘Solvency Margin’ will help check its financial standing. This margin is the cash reserve, which is kept by the company to pay claims in an emergency. A company has to maintain an average solvency margin of 150%. When the solvency margin is high, the company is safe. Different companies in India have different solvency margins but they cannot go below this benchmark.

The best thing about the guidelines is that they apply to both, government-run insurance companies and private insurers. This means nobody can close the business and abscond. If an insurance company intends to close the business, it needs to merge the business with another organization. In this scenario, the other organization will take control of the particular insurer’s operations, as well as its assets and liabilities.

IRDAI aims to protect the interest of the policyholders and is responsible for bringing the insurance company into operations by establishing the rules and regulations and ensuring that they are met. IRDAI has the right to cancel the license of an insurance company and this will help prevent insurance company bankruptcies.

In case a customer has a complaint against an insurer, he can approach the grievance cell of IRDAI and remain assured that a resolution will be provided. Given the regulations and strict rules, life insurance bankruptcy cannot happen.

Hence, remain rest assured that your money will be safe and stop worrying about the solvency of the company.

Like a car or your home, vacation is not a big investment. However, it still includes many of your lifetime savings. To make the vacation memorable and enjoyable, you book the best flight and accommodations. You do most of the payment in advance. So, is it not worth insuring against any unforeseen problems or life events, which can ruin your travel plan?

When you are travelling to a foreign country, you can come across any of the following: illnesses, accidents, theft of personal belongings, loss of baggage, or any other issues. The best way to minimize the risks that can hamper with your travel plans is by taking travel insurance for yourself and your family. You should opt for a travel insurance for senior citizens if you are travelling with your parents or grandparents.

Let us look at some specific scenarios that will explain the need for a travel insurance plan.

Buying travel insurance ensures that all expenses are borne by the insurer, which helps you to come out of any unexpected financial problems.

If you are insured, you can get a buffer against baggage loss and the insurer will cover for the loss.

The above are the most common issues encountered by travellers and underline the importance of travel insurance coverage while planning a holiday.

Disadvantages of Not Taking Travel Insurance

Spiralling Medical Costs

Travelling in western countries without travel insurance is the riskiest thing to do as the medical expenses and hospitalization costs are very high. The graph of the medical cost increases rapidly with each passing day in the hospital. If you are not covered with a travel insurance policy, you will have to pay for these hefty expenses from your own pocket. When you have travel insurance with emergency medical benefits, it can help you by paying the losses incurred due to medical emergencies that occur during your trip.

Medical transportation with emergency benefits can pay for medically necessary transportation to the nearest appropriate medical facility, also the cost of getting you home following a covered injury or illness.

Loss of property and baggage

One common issue, which you can face while travelling, is thefts and baggage losses. In such an event, you lose your belongings and pay additionally to buy new ones. Thus, travel insurance indemnifies you against such losses. You can buy travel insurance online without much hassle.

Damaged Destination

No one can control or predict the activities of nature. If in case hurricane excessive rains close the airport for days keeping you from reaching the resort you are heading to, you could lose the cost of an airfare and accommodations. Therefore, buying a travel insurance plan while you book your trip will help you to get reimbursed for the costs.

Flight Delay

Nothing will ruin the beginning or the end of your vacation more effectively rather than flight problems. If your flight is delayed for more than 12 hours than the originally scheduled departure time then you are provided with the compensation. Travel insurance covers the cost of the hotel stay if you are forced to buy an accommodation in a city you had not planned to visit because of the delay of the flight.

Going abroad without considering buying an international travel insurance policy is not a wise decision at all. Do not compromise while paying the premium amount which is insignificant compared to the risky situations you might encounter during your travel.

Thus, by checking the reviews or individual travel insurance or family travel plans you can find out the best one for you according to your needs, budget, and make your trip protected.