Buying health insurance for

children: Here are some key

points parents should keep
in mind
Parents are always concerned about the wellbeing and safety of their
children till they are capable of taking independent decisions. Buying
adequate health coverage for children can help in keeping the children
well. It can also be an important component of financial planning for
children. However, buying a good health insurance plan could be tricky.
There are so many plans available. But to decide which plan will suit
your needs best is not easy. More so, while planning to buy a health
insurance plan for children. Hence, here we take a look at key things you
should consider while buying health plans for children:
Check basics first
As a first step before buying a health plan, experts say that parents
should check the basics of health insurance. For example, according to
Naval Goel, Founder & CEO, PolicyX.com, you should check the
following:
 Network hospitals available in your vicinity for any kind of
emergency. As kids are prone to accidents in schools or during
playtime, thus the health insurance company’s cashless treatment
provided in their network hospitals must be easily reachable.
  The sum insured should be sufficient to meet the regular medical
expense of a child along with their parents. It is important to have a
policy with ample coverage amount that will cater to any
hospitalization expenses arising out of accidents or infections so that
you needn’t worry about paying out-of-pocket and thus putting a
dent in your savings for their future needs.
Check for OPD, vaccination facilities
The healthcare plan should also come with an OPD facility. “A health
care plan should come with an OPD facility as kids at a younger age are
sensitive to weather changes and seasonal flues due to which they may
require frequent doctor visits,” Goel told FE Online.
According to Nayan Goswami, Head of General Insurance at Sana
Insurance Brokers, parents seeking coverage for kids between ages 1 to
12 should look for a health insurance plan that takes care of vaccinations
required to boost their immunity.
Check admissible age of children in family floater plans
It is given that kids are included in a family floater or adults plans.
However, it is important to check the admissible age of the kid in the
health care plan. “The health care plan should offer cover to the newborn
baby from the 91st day onwards and the renewal should be permitted up
to the maximum age. Now a days, kids can stay a part of their parents or
family floater plan up to the age of 30 years however it varies from a plan
to plan,” said Goel.
If you wish to add the child to your family floater plan, lower age at entry
for dependents would be preferable as it would enable you to include the
child very early on. Instead, if you would rather opt for an individual
health insurance policy, then, too, low age at entry would be good.
Check for the range of coverage of diseases
If a baby is detected with any kind of illness since birth then the health
insurance plan should provide coverage for that particular disease and
that too with the least waiting period duration. Alongside, the plan should
have a wider range of coverage of diseases.
What newlyweds should check
Goswami said that newlyweds who wish to have a child should consider
selecting a health insurance policy that offers sufficient maternity
coverage and benefits which takes care of the mother and the just born
baby.
“An optimum plan should ideally cover pre- and post-hospitalization
expenses along with delivery-related costs (be that for normal or
caesarean procedure). Newborn vaccination expenses should also be
covered, as should any complications arising during delivery,” Goswami
told FE Online.
“Typically, external congenital diseases may be excluded from coverage,
however internal congenital diseases and genetic disorders are now
taken care of by new age health insurance plans,” he added.
It is also important to remember that coverage for the newborn (i.e. post
say 60-90 days from birth) might not be effective by default. The parents
might be required to intimate the insurance firm post-birth and pay an
additional premium for the baby’s coverage unless otherwise specified.
What to check for a child with special needs
Goswami said that for a child with special needs it is imperative to have
a comprehensive health insurance policy since the possibility to seek
urgent medical attention would be higher in such cases.
As is the case with all major financial decisions, those looking to buy
health insurance should carefully scrutinize and comprehend all terms
and conditions attached to the plan before zeroing in on any particular
option. It is better to compare multiple plans across policy features and
benefits to select the best fit for your family’s dynamic and long-term
medical requirements.

Ways in which life insurance

can help in times of
financial crisis
Right life insurance not only helps ensure financial security for the family
but also relieves mental tension for the individual. When an individual
buys insurance for his family, he knows that there is a financial
arrangement for his family when they need it. Life insurance can help
secure a family’s future in many ways:
Retirement planning
When an individual plans for life insurance at the right age, he continues
to pay a premium for his life. This helps deposit quite a huge amount into
insurance plans, and allows the individual to withdraw a huge amount at
the time of accomplishment of plan or at times of need.

An insurance policy at the right stage helps add benefits to retirement.

For example, a life insurance plan not only helps provide financial
security but also helps obtain a lump-sum amount at the time of
retirement when there is no other hope of obtaining financial support.
Bill payment
Sometimes, some unexpected bills may come up. In such cases, the
amount from insurance plans can help pay those bills. These bills can be
related to medical expenses or other general household-related bills.
Therefore, one must obtain insurance so that family can meet expenses
for these bills in the absence of the policyholder.
While obtaining an insurance plan, one can compare different life
insurance online. Moreover, the sum received from insurance can help
meet all the costs. Therefore, this insurance helps meet the quality of life
for the family.
Children’s education
These days, higher education involves huge expenses. The candidate
must obtain life insurance so that these expenses can be met. When the
right plan is obtained, it can help in children’s higher education.
Before one chooses the best insurance plan, it is important to
understand the life insurance definition so that the best insurance can be
chosen.
Debts repayment
An individual obtains a loan at various stages of life. This may include
loans for education, car, or home loans. The repayment of a loan can be
tough at times when there is a financial crisis after a particular age or in
the absence of the person who obtained the loan. Thus, it is better to
obtain life insurance beforehand.
The amount of insurance helps repay the loan even when the borrower
is not present to repay it. It is thus essential to obtain insurance for
repayment of loans.
Income arrangement
In the absence of the earning member of the family, financial support is
much required. When life insurance is obtained at the right age, it can
help later when the family needs funds. In the absence of income, the
sum amount from insurance can really act as a true blessing. One can
choose to obtain an insurance plan that can be used as a source of
income when there is no other source of income. There are various
expenses that need to be accomplished. The amount from such
insurance helps meet all these expenses easily.
Life insurance is financial help to families in times of need. When an
individual goes to buy insurance, he must wisely analyse different
insurance plans before choosing the one that can meet the needs of the
family. Comparing plans is a must before finalising the best plan.
Investing for the girl child: How can
Sukanya Samriddhi Yojana
(SSY) help?
In view of rising costs, there are many ways in which parents can save and invest to
provide a better life to their girl child. However, most of the investment options come
with certain associated risks or limits. No parents would like to take any risk while
saving money to secure the financial future of their girl child. If you are also looking to
save for your girl child then Central Government’s Sukanya Samriddhi Yojana (SSY) is
something you must take a look at.
SSY is a government-backed deposit scheme aimed at saving for the financial goals of
the girl child. The returns under the scheme are guaranteed by the government.
Moreover, parents can also enjoy tax benefits on the amount deposited in an SSY
account.
At present, SSY is offering 7.6% interest on deposits. This rate is revised quarterly by
the Government. However, for the last several quarters, the Central Government has
not changed the SSY account interest rate. The SSY interest rate is higher than other
small savings schemes like Public Provident Fund, National Savings Certificate (NSC).
It is also better than the interest rates on fixed deposits currently being offered by most
of the leading public and private sector banks.
SSY was launched by the Central Government as a part of its ‘Beti Bachao, Beti
Padhao’ campaign. Since then, the government has offered higher than other savings
scheme interest rates on SSY deposits.
For parents worried about rising costs of education and every other thing around, safety
and high-interest rate make SSY the go-to investment option.
The SSY account matures in 21 years. So if you open an SSY account for a 5-year-old
girl child, the account will mature after 21 years, i.e. when she becomes 26 years old.
However, withdrawal from the SSY account is allowed after age 18 on account of
marriage. The girl child can make a deposit in the scheme on her own after age 18
while the parents can also continue to do the same.
Interestingly, while the SSY account matures in 21 years, parents need to make
deposits in the scheme only for the initial 15 years. After that, the account will continue
till maturity but no deposit will be required.
SSY account can be opened only in the name of a girl child aged below 10 years. In
one family, two SSY accounts can be opened.
Under SSY, the maximum deposit allowed in a financial year is Rs 1.5 lakh. One can
open the SSY account in the name of a girl child by depositing as little as Rs 250.
Since the interest rate under the SSY account can change in any quarter of a financial
year, it is not possible to calculate the exact maturity in advance. However, assuming a
return of 7.6 per cent on deposits of Rs 1.5 lakh for 15 years, the maturity amount after
21 years can be expected to be approximately Rs 66 lakh.
Tax Benefit
SSY scheme is beneficial from the income tax point of view as well. The SSY deposits
enjoy E-E-E tax benefits. This means, contribution to the SSY account gets tax benefit
under Section 80C, while the interest earned and the maturity amount also remain tax-
free.
What should you do? 
For parents looking to save money to meet the financial goals of their girl child, SSY can
help in accumulating funds. However, to create a sizeable corpus for long-term goals,
parents should also look to invest in equity mutual funds and other options after taking
suggestions from a professional financial advisor.

Tips to save money on a foreign holiday

As vaccination ramps up and tourism restrictions ease, most of us are
itching to start travelling again. In a joint survey conducted by
Thomas Cook India and SOTC Travel, 85% Indian respondents said
they are keen to travel in the last quarter of this year. Demand for
international travel is high. About 77% respondents wanted to take a
foreign trip during the said period.
Nishant Pitti, CEO and co-founder, EaseMyTrip, corroborated the
trend. “We have seen a jump of over 50% in international travel
bookings as compared to January-March 2021. The year-end period
will grow demand for international destinations further as we are
seeing advance bookings for the Christmas week. This indicates the
underlying pent-up travel demand and the growing sentiment among
travellers to venture out for leisure travel."
Pitti said that revenge travel is driving this demand in the segment.
“People are willing to spend extra on travel right now since they
haven’t been able to travel for the past year and a half. We have also
witnessed an increase in bookings for business class tickets."
However, emotion-driven splurging is never a good idea for your
financial health.
Here are some tips that will help you plan a cost-efficient vacation.
Rental homes vs hotels: Holiday rental homes are gradually picking
up in India because they provide lesser-crowded spaces as safety is a
top priority for travellers amid the pandemic. They are attractive from
a price point as well.
Mint’s research showed that booking a bed and breakfast (B&B) from
platforms like Airbnb, MakeMyTrip and Goibibo can save you about
20-30% over a hotel on accommodation cost. You can choose a
vacation rental home that gives you additional services of a functional
kitchen and an in-house chef and they cost up to 10% less compared to
hotels.
 
If you book longer stays of 20 or more days, holiday rental homes
reduce their rent further and bring down the total cost by 10-15%. For
those looking for work-from-vacation options, holiday rentals are
hands down a cheaper option. For instance, a 3-star hotel in
Calangute, Goa, for a month-long stay will cost you nearly ₹1 lakh,
whereas a home rental in the same locality and providing the same
amenities will cost you about ₹60,000.
International travel currently expensive: Direct flights to France,
Canada, Germany, Japan, Kenya, Maldives and the UK, among other
countries, have started for fully vaccinated Indians. However, airfare
for most of the popular travel destinations such as Paris, London,
Nairobi etc., are 10-35% expensive compared to pre-covid period.
This surge could be attributed to pent-up demand and limited flight
options. “A lot of people are undertaking leisure trips as international
travel has started to open up after a long span. This is leading to a
temporary rise in demand and prices due to limited flights and certain
restrictions," said Pitti. You can pick international destinations like
Dubai and Maldives for cheaper airfare. These were among the first
international destinations to open for Indian travellers and hence
prices across accommodation, conveyance and leisure have stabilized.

Pitti said fares would stabilize for other destinations as well in the
coming months. “The availability of more flights and seats will help in
meeting the demand and reduce the airfares in the time to come," he
said.
Save on forex: Travellers often miss out on accounting forex costs
while budgeting for overseas trip. A recent study conducted by money
transfer company Wise revealed that before the pandemic, Indian
travellers spent about ₹4,200 crore in foreign exchange fees in 2019
alone. Of this amount, ₹2,400 crore was hidden in exchange rate
markups.
Different payment modes of credit or debit cards, forex cards and cash
involve a variety of charges that can add up through the course of your
trip if not planned ahead (see graphic). For instance, every time you
swipe a credit or debit card overseas, it attracts double charges of
foreign transaction fee and currency conversion fee that can add up to
5% on each transaction. Using cash for all transactions too has its own
challenges. Carrying a huge amount to avoid converting repeatedly is
not only inconvenient but also unsafe. There’s a cost involved every
time you exchange over an exchange kiosk or withdraw from an
ATM. However, up to 20% of the total spending budget you set
should be in cash as it comes handy.
When converting cash, Rashmi Satpute, country manager India, Wise,
warned against too-good-to-be-true deals like ‘zero commission’ as
they are marred by unfavourable exchange rates. “Travellers should
look for exchange rates that are closest to the mid-market rate as
presented on Google/Reuters."
It would be prudent to exchange cash in local currency of the country
you are visiting before the trip starts as exchange kiosks at airports
offer poor exchange rates.
Satpute added that a traveller should always use local currency to
transact. “When you swipe your debit or credit card or withdraw
money from an ATM abroad, the machine asks if you want to pay in
INR or in the local currency. This is called dynamic currency
conversion (DCC) and it’s a complete rip-off. It may seem smart to
pay in rupees, but these machines offer worse exchange rates than the
average bank," she said.
A prepaid forex card is the cheapest medium to transact overseas.
Forex cards offered by BookMyForex and Niyo come with zero
reloading fee and offer transparent and competitive exchange rates.
“Niyo global card can be reloaded in INR easily through NEFT,
RTGS and IMPS. The card is on the Visa platform, hence it is
accepted widely and all currency exchanges happen at Visa exchange
rate. International ATM withdrawals, however, involve a small
convenience fee of over ₹100 after adding taxes," said Vinay Bagri,
co-founder and CEO, Niyo.
Forex cards offered by banks involve forex mark-up and reloading
fees.
For frequent travellers, it is better to buy a multi-currency forex card
to avoid paying cross-currency charges when travelling to different
countries. For instance, if you use an INR to EUR card in the US,
there will be a cross-conversion charge of about 3% on the transaction
amount.

What is the ideal term cover for you?

A plain vanilla term plan is a key component of every individual’s
financial plan. However, insurance needs vary as per one’s age and
liabilities. For instance, a middle-age working woman with high
income, sizeable assets and very few liabilities may not need life
insurance at all. On the other hand, for a young professional with an
education loan, it is advised that a term cover equivalent to the loan
amount should be bought. Mint tells you how much insurance you
need at different life stages and what will it cost.
Age: 24-29 years: Young professionals usually do not need insurance.
However, if you have an education loan or are supporting parents or
sibling, get a term plan that covers your loan or sibling’s education
expenses, whichever is applicable.
Age: 30-35 years: One is most likely to be married and have kids by
this age. Insurance should be bought to support dependent kids,
parents and spouse. You may even be servicing an education or car
loan. A cover amount of at least ₹1 crore or 8-10 times your annual
income should be bought. ₹1 crore term cover will cost ₹1,100 every
month.
Age: 36-45 years: At this stage, liabilities increase manifold as you
start planning for children’s college and take high-ticket loans. Early
40s to early 50s also mark peak earning years with high lifestyle costs.
One has to buy insurance to protect income for dependents, support
financial goals and cover loans. Buy a plan equal to 12-15 times your
dependents’ annual expenses.
Age: 46-55 years: One may take an education loan to fund children’s
education. If you already have a term plan, you can top it up with an
additional cover of ₹50-60 lakh.
Age: 56-62 years: As you start nearing retirement, liabilities of
outstanding loan and supporting children start coming down. Buy a
new plan if you have outstanding loans. A retiree with no liabilities
does not need insurance.