Friday, September 5 2025
Source/Contribution by : NJ Publications

When it comes to building a strong financial portfolio, most people focus on savings, investments, and growing our wealth. While these are important, one crucial aspect often overlooked is protection. Life has a way of surprising us, and not always in good ways. No matter how well you plan your finances, an unforeseen event such as a health crisis, accident, or damage to your car or home can derail your financial goals. That's where insurance steps in-not as an expense, but as a shield that safeguards your wealth and secures your family's future.

Having the right set of insurance policies ensures that you are not forced to dip into your savings or liquidate investments during emergencies. Instead, your insurance acts as the safety net, quietly sitting in the background until you really need it, allowing your financial plan to stay on track.

Here are five must-have insurance policies that every individual should consider including in their financial portfolio.

1. Term Life Insurance - The Foundation of Financial Security

If you are the main income earner (breadwinner) of your family -meaning if your family depends on your income, then term life insurance is a must. It provides pure life cover-meaning in case of your untimely demise, your family receives a lump sum amount (or regular income or both) to meet expenses, pay off liabilities, and continue their lifestyle. You pay a premium for a specific "term" (e.g., 20 or 30 years), and if you pass away during that period, the insurance company pays the claim. Without it, your family would be left to navigate a difficult emotional loss while also facing a financial crisis.

Why it's essential:

• Provides financial security to your dependents in your absence.
• Affordable premiums for high coverage.
• Helps cover long-term goals like children's education or marriage.

Always choose a life cover amount that takes care of all your liabilities, future goals & income replacement in your absence.

2. Health Insurance - Protection Against Rising Medical Costs

Medical expenses are rising at an alarming rate. Even a few days in the hospital can cost lakhs of rupees. Health insurance ensures that you don't have to dip into your savings to pay huge hospitalisation bills. A comprehensive health insurance policy acts as a shield, covering expenses like hospitalization, doctor's fees, surgeries, and medicine.

Don't assume your employer-provided health insurance is enough; it may not be sufficient or have limitations like co-pay, cappings, etc; and is tied to your job. Having a personal policy ensures uninterrupted coverage, regardless of your employment status.

Why it's essential:

• Covers hospitalization, surgeries, and treatment costs.
• Prevents financial setbacks during medical emergencies.
• Access to quality healthcare
• Cashless benefit

Don't just look at the premium-get adequate coverage, exclusions, network hospitals and consult your insurance sales person.

3. Health Insurance for Parents - Caring for the Ones Who Cared for You

Caring for aging parents is a financial and emotional responsibility. As your parents age, their medical needs may increase, and so does the cost of healthcare. People make the mistake of including their parents in a standard family floater plan, which might not offer adequate coverage for age-related ailments and could significantly increase the premium for the entire family.

Having a separate health insurance policy for your parents is crucial. By securing this policy, you're not only protecting them but also preventing a financial drain on your own savings.

Why it's essential:

• Covers age-related illnesses and frequent medical needs.
• Helps avoid large out-of-pocket expenses for their treatment. Reduces the financial burden on you when your parents need treatment.
• Gives peace of mind knowing their healthcare is secured.

Buy these policies while your parents are younger and relatively healthier. The earlier you buy, the fewer exclusions and the lower the premiums. By purchasing a policy early, when you are less likely to fall ill, you can serve the waiting periods without any urgency or financial stress.

4. Personal Accident Insurance - Financial Safety in Case of Disability

While life & health insurance cover death and medical treatment, there remains a gap for accidental disability. Accidents can happen anytime, anywhere-at work, on the road, or at home. If an accident leads to a temporary or permanent disability, you could be unable to work, resulting in a loss of income. A personal accident policy provides financial support in such cases.

A PA policy provides a lump sum amount in the event of accidental death, total permanent disability, or partial permanent disability. Some plans even offer a weekly payout for a period of temporary total disability, which can help cover your daily expenses while you're recovering.

It's a critical safety net that ensures your financial life doesn't come to a halt just because an unexpected event has rendered you unable to earn.

Why it's essential:

• Covers both death and disability due to accidents.
• Provides compensation for income loss during recovery.
• Affordable premiums compared to the coverage offered.

Ensure your policy covers partial and total disabilities, along with income replacement benefits.

5. Vehicle & Property Insurance - Protecting Your Assets

For many of us, vehicles (car / bikes) and property (home / shop) are the biggest assets after investments. Accidents, theft, natural disasters, or fire can cause significant financial losses if you're not covered.

These policies ensure that you don't have to bear the entire cost of repairs or replacement out of pocket, a financial blow that could easily derail your long-term goals.

Why it's essential:

• Vehicle insurance is mandatory by law, but comprehensive coverage goes beyond third-party liability to cover your own damages.
• Property insurance protects your home or office from risks like fire, earthquake, theft, or floods.
• Provides financial security against unforeseen damages to valuable assets.

Tip: Always opt for comprehensive policies that cover both natural and man-made calamities.

The Role of a Good Insurance Advisor

While understanding these policies is important, choosing the right coverage is where most people struggle. This is where a good insurance advisor or sales person (BQP/POSP) becomes invaluable.

Why you need one:

• Helps you assess risks based on your life stage, income, and responsibilities.
• Suggests the right coverage amount instead of simply selling a product.
• Keeps you updated on new policies, features, and changes in regulations.
• Guides you during claims-ensuring smooth processing without stress.

Unfortunately, many people buy insurance randomly. The result? Under-insured or misaligned policies that fail during emergencies. A trustworthy advisor ensures your insurance portfolio is both adequate, efficient and the one that really protects you.

Sample Premiums

*Disclaimer: Monthly premium is for reference purposes only, actual plan may not have the facility of paying premiums on a monthly basis.

Conclusion

Insurance is not an expense, it's investing into your future, it's about financial preparedness. By including term life, health insurance (for yourself and your parents), personal accident, and vehicle/property insurance in your financial portfolio, you are setting up a strong safety net for yourself and your loved ones. Pair this with the guidance of a knowledgeable insurance advisor, and you can rest assured that no unexpected event will derail your financial journey.

Your financial plan is only as strong as the protection around it. So, review your portfolio today. Do you have all five? If not, maybe it's time to call your insurance advisor and get that safety net in place.

Disclaimer: Mutual Fund investments are subject to market risks, read all the scheme related documents carefully.

Friday, August 01 2025
Source/Contribution by : NJ Publications

In the past few weeks, India has witnessed a spate of accidents that have shocked the nation. From the tragic Ahmedabad plane crash landing incident that injured multiple passengers, to the unfortunate stampede during Royal Challengers Bengaluru's IPL victory celebrations, Mumbai local train and multiple reports of vehicles plunging into gorges in hilly states-these incidents are grim reminders of how unpredictability surrounds our daily lives.

While we often insure our lives, cars and health, Personal Accident Insurance still remains underutilized and poorly understood. Yet, it's one of the few covers that directly supports individuals and families when sudden mishaps derail everyday life. This article breaks down how a personal accident policy can be a financial lifesaver, especially in light of recent real-life tragedies.

A Personal Accident (PA) Insurance policy provides financial compensation in case of injuries, disabilities, or death due to accidents. Unlike a health policy that pays for hospitalization or a life policy that pays only on death, PA insurance covers a wider spectrum-death, permanent disability, temporary disability, fractures, burns, and loss of income due to injury.

Such a policy ensures that an accident doesn't result in both physical and financial disability.

• Financial Security for Your Family: In the unfortunate event of your accidental demise, the policy provides a (100% sum assured) lump sum to the family, helping them manage immediate expenses, clear debts, and maintain their lifestyle. This is particularly vital if you are the primary or sole earning member.

• Income Replacement during Disability: Accidents can lead to disabilities that prevent you from working, either temporarily or permanently.This is where the Loss of Income (Temporary Total Disablement - TTD) cover becomes paramount. If an accident renders you temporarily unable to work (e.g., a broken leg requiring months of recovery), this cover provides a regular income for a specified period, ensuring your household expenses are met even when your regular salary stops.

• Protection against Permanent Disabilities: If an accident leads to a permanent partial or total disability (e.g., loss of a limb or eyesight), the policy pays out a percentage (upto 50% - 100%)or the full sum assured, respectively.This compensation can be crucial for adapting to new circumstances, making necessary home modifications, or even pursuing new livelihood options.

• Worldwide Coverage: Many personal accident policies offer worldwide coverage, meaning you're protected whether the accident occurs in India or during international travel.This is especially relevant in a world where travel is increasingly common.

• Affordability: Compared to other insurance products, personal accident policies are generally quite affordable, offering substantial coverage at a relatively low premium. Sample Premium - Approx. Rs 21,000/- for 50 Lacs comprehensive PA policy for Self, Spouse and 2 kids.

Key Add-Ons You Should Not Ignore

1. Loss of Income / Temporary Total Disability (TTD) Cover

This add-on pays a weekly benefit (usually ₹25,000 to ₹50,000/week) if the policyholder is temporarily unable to work due to an accident. For salaried individuals, freelancers, or shop owners, this protects livelihood during recovery. It can be availed for up to 100 weeks, depending on the severity.

Example: A small business owner fractured his hip in a minor car accident. Though not hospitalized, he couldn't walk or operate his shop for 2 months. With a TTD add-on, he received ₹50,000 per week, totaling ₹400,000-critical to keep his business afloat and pay EMIs.

2. Fracture and Bone Injury Cover - A Must for Children & Elderly

Children and the elderly are especially prone to falls, injuries. As individuals age, their bones become more brittle, making them more susceptible to fractures from even minor falls. Yet, their injuries may not lead to hospitalization, meaning health insurance may not come into picture.

A dedicated fracture cover within a personal accident policy specifically provides a lump sum payout upon diagnosis of a covered fracture, regardless of whether it leads to a permanent disability.

• A 7-year-old injures her forearm while playing cricket.

• A 70-year-old grandmother fractures her ankle slipping in the bathroom.

In both cases, the insurer pays a predefined amount (e.g., ₹15,000 to ₹50,000), regardless of actual expenses. This helps cover diagnostic tests, consultations, splints, or physiotherapy.

Who Needs Personal Accident Insurance?

Everyone. But it's especially important for: Salaried, Self-employed, Housewife, Elderly, Children, Frequent travellers, etc.

Key Benefits to Look For

When choosing a PA policy, prioritize:

• Accidental death cover (₹50 - 100 lakhs or more)

• Permanent disability benefit

• Temporary disability (TTD) income support

• Fracture benefit

• Burns and disfigurement compensation

• Child education benefit (on policyholder's accidental death)

• No hospitalisation requirement for minor claims

Prevention is Good, But Protection is Better

We can't prevent every accident. But we can prepare for the aftermath. Whether it's a stampede, a holiday mishap, or a freak accident at home-Personal Accident Insurance offers the critical financial shield your health or life policy may miss.

In India's rapidly urbanizing and mobile society, where public events, travel, and daily commuting bring new risks, a personal accident plan is no longer a luxury. It's a necessity.

Talk to your Insurance Sales Person today to review your accident coverage-especially if you have elderly parents, school-going kids, or are self-employed. It's an investment in your safety and security that truly pays off when you need it most.

Friday, June 27 2025
Source/Contribution by : NJ Publications

When it comes to health, we all want the best care for ourselves and our family. Medical expenses are rising quickly and unexpectedly, having a good health insurance policy is no longer a luxury-it's a necessity.

Insurance policy is an agreement(contract) between the insurer (insurance company) and the insured (policyholder). It is based on the information the insured provides in the proposal form, making it the most important part of the entire contract (agreement). An insurance company offers a policy on the basis of a proposal form and other information related to the insured. It seeks all the relevant information from the policyholder in order to underwrite the risk.

The proposal form includes

• The insured's basic information such as address, age, name, education, income, etc;

• Occupation, medical history, lifestyle habits like smoking / drinking, etc;

Still, many people make mistakes when buying health insurance. These mistakes can lead to policy/claim rejections, inadequate coverage, or even policy cancellation. This article will help you understand how to avoid some common mistakes. Whether you're buying health insurance for the first time or reviewing your current plan, these tips will come in handy.

In-appropriate practices

Some of the most important points while filling proposal form.

1. Consult an Insurance Expert

With so many policies in the market, it's easy to get confused. Many people buy policies just because a relative or bank executive recommended it-not because it fits their needs.

Take the help of a qualified insurance advisor. An insurance expert will:

• Understand your health needs, age, and family size

• Recommend plans with suitable cover, benefits, and premium

• Explain terms & conditions in detail

• Help you compare plans from different companies

This small step can prevent a big mistake.

2. Disclosure of Medical Condition, Lifestyle habits honestly

When filling out the application, be completely honest about your health history. Disclose any past or current illnesses, surgeries, injuries, or regular medication. Insurance companies measure you based on your current and past health information provided in the proposal form.

Insured members must inform about his/her lifestyle habits like the consumption of alcohol, tobacco and other drugs. Addictive/intoxicating substances such as tobacco & alcohol have a negative impact on health.

Insurers also check for inconsistencies in the proposal, telecalling along with medical reports. They (Insurers) also verify the proposal form details with diagnostic reports or insured's remarks on the phone call.

Many times, people do not disclose their current health condition, recent medical diagnosis or ongoing investigations in the proposal form so as to obtain better coverage for lower premium or to avoid the waiting period or rejection.

If they(insurance company) find out you've hidden anything important, they have the right to reject your claim-even if the illness is unrelated to what you've hidden. Hiding any important information may result in your policy being cancelled as well.

For example, Mr. Raj was hospitalised for treatment of a heart ailment, the insurance company from the hospital sources came to know that he had diabetes before taking insurance policy and as a result the claim got rejected. This is because he did not mention diabetes in the proposal form while buying the policy. Therefore, complete medical history must be given in the medical questionnaire asked in the form.

3. Understand the Moratorium Period

The moratorium period means after continuous completion of 5 years from inception of your first health insurance policy, the insurer cannot question the validity of your policy based on non-fraudulent errors or non-disclosure.

It's different from the waiting period (when some diseases aren't covered), but it's equally important. Once this period is over, your claims are far less likely to be rejected due to errors made while buying the policy.

So, buy your policy early and continue it without breaks. That way, you complete the moratorium period sooner and enjoy stronger comprehensive protection.

4. Don't Ignore the Fine Print - Verify the Policy Document

Once your policy is issued, verify the details in your policy document thoroughly. This includes:

• Name, age, and details of all insured members

• Health declarations made during the application

• Policy start and end date

• Sum insured (risk cover amount)

• Waiting periods, exclusions, sub-limits

If there are any mistakes or missing details, get them corrected immediately. Don’t wait or delay till you need to make a claim.

Final Thoughts: Secure Your Health, Secure Your Future

Health insurance is not just a formality-it's a financial safety net. Buying the right policy means you don't have to worry about hospital bills during a crisis. It means your savings remain safe, your family stays protected, and you can focus on recovery, not expenses.

Health is uncertain, but your financial preparedness doesn't have to be. Act early, choose wisely, and avoid the mistakes that many regret later.