What Is Insurance Planning? Insurance planning is the process of evaluating and managing risks associated with potential losses and taking appropriate measures to mitigate those risks by selecting suitable insurance policies. The aim of insurance planning is to provide financial protection against potential risks and to ensure that an individual, family, or business has adequate insurance coverage to meet their needs. Insurance planning involves assessing potential tisks and determining the appropriate types of insurance coverage to protect against those risks. This can include health insurance, life insurance, disability insurance, auto insurance, property insurance, liability insurance, and other types of insurance policies.What is insurance? Insurance is a risk transfer mechanism that shifts responsibility for losses to specialists called insurance companies who handle the risk by spreading it over a large number of people or firms. Insurance can help you cover the cost of unexpected events such as theft, illness or property damage. If you purchase insurance for any of your assets, the insurance company will pay you an amount equal to the value of the asset that has been lost. You can also purchase life insurance to protect your loved ones on your death.Why should | purchase insurance? Insurance can protect you against financial loss if something unexpected happens. Accidents and disasters can and do happen, and if you are not adequately insured, it could leave you in financial ruin. When you buy insurance, you transfer the cost of a potential loss to the insurance company in exchange for a fee known as the premium. Insurance companies invest the funds securely, so they can grow, and can be used to pay claims as they arise. The decision to get insurance will depend on your circumstances and your stage in life. Examples of insurance protection include: e Automobile insurance: This will pay for the cost of repairs to your vehicle if you have an accident or pay you the insured value, if your vehicle is stolen. It will also protect against loss to third parties. Life insurance: This will pay your family on your death. Property insurance: This will pay the cost to repair your property in case of fire or damage by causes as stated in the policy terms. Insurance can be obtained for both residential and commercial property.Types of insurance Insurance can be broadly classified _ into conventional insurance and Takaful, also called Islamic insurance. Takaful is the Islamic alternative to conventional insurance and is designed to be Shariah compliant. Both conventional and Takaful offer the same insurance types and products. Some of the most common types of insurance policies offered include: Motor insurance There are two basic types of motor/auto insurance coverage Third Party Liability: Third party coverage protects the policyholder against liabilities incurred to third parties in the event of an accident such as property damage, bodily injury or death. In Pakistan, purchase of third party insurance is mandatory for all vehicle owners. Comprehensive: This is the widest form of coverage. You are protected against financial losses from an accidental loss to vehicle, theft, and third party liability claims because of an accident.Premium rates depend on several factors that may include: e Make and model year of car e Purpose of vehicle use, private vs. commercial e Tracker installed and geographical location where car will be used You can reduce your premiums by agreeing to take on more risk by increasing the deductible amount. This means self-insuring the increase in the deductible amount. Tips for buying automobile insurance Here are some important points to keep in mind. e When purchasing a new or used car you must buy insurance cover. Please note that insurance cover of the previous owner becomes invalid on the sale of the vehicle. The insured value or sum insured depends on the market value of the vehicle. The maximum compensation you will receive is the market value of the vehicle. Over insurance occurs, if the sum insured is greater than the market value of the vehicle. Under- insurance occurs, if the sum insured is less than the market value; you are self-insuring the difference, and will only be partially compensated. For example, if you have insured your vehicle up to 70% of the market value, the insurance company will only pay 70% of the total repair cost.Life insurance Life insurance is protection against financial loss from death. The named beneficiary receives the proceeds, and is protected from the financial impact of the death of the insured. The death benefit is paid by a life insurer in consideration for premium payments made by the insured. Life insurance can offer a combination of protection and saving components, and the proportion of these components in an insurance product may vary depending on the product type and consumer needs and preferences. An insurance product may have variable proportions of protection and savings, which under certain life insurance products can be chosen by the policyholder.Policyholder's duties and rights As an insurance policyholder, you have certain duties and rights as under. Policyholder's duties e Provide all required information truthfully; © Do not misstate or make false declaration; e Complete the proposal form and nominate the beneficiary; e Meet all documentary requirements at the time of taking out insurance policy; e Make claim in accordance with policy provisions and follow the claim process; and © Complete all documentary requirements for making claim.Policyholder's rights Choose the insurance product you want from the insurance company of your choice; Do not be influenced by aggressive sales tactics; Obtain quotes from multiple insurance companies before making final insurance purchase decision; Add the riders to your insurance policy at any time, and get additional insurance coverage; Refuse to accept anything contrary to the insurance policy document provisions; Shift your investments between various unit linked funds attached with a unit-linked insurance policy, keeping in view your investment and risk appetite; Ask for any valid benefit stipulated in the insurance policy document; Ask the insurance company to act in accordance with the written terms and conditions of the insurance policy; Lodge complaint with the designated dispute resolution forum regarding maladministration of the insurance company or its representative or agent; and Surrender the cash value policy at any time and obtain underlying amount of the insurance policy.How to make a claim? An insurance claim is a notification to an insurance company requesting payment of an amount due under the terms of the policy. This is the right of the policyholder. In case of death of the policyholder, the claim can be filed by the nominee as agreed upon at the time of issuance of the policy. There are certain guidelines outlined by the company that has to be met when filing a claim.Here are some important points you should note: e The policyholder should obtain the contact details of the claims department of the insurance company at the time of buying the insurance policy The policyholder should educate the beneficiary of the policy about the benefits to which he/she is entitled on the occurrence of death or other insured events In case of non-death claim, the policyholder has to contact the claims department of the insurance company as soon as the loss is incurred. In the event of death of the insured, the nominee of the policy has to make the claim If certain time limit for making claims is specified in the insurance policy terms and conditions, the policyholder is bound to make claim within that specified time limit. Nevertheless, it is in the best interest of the policyholder to file the claim with the insurance company as soon as possible. Policyholder must make claim in writing if explicitly required by policy terms. The insurance company will require certain documents related to claim processing. It is the responsibility of the policyholder to provide all documents as required in writing by the insurance company.Protection Planning Protection Planning is all about preparing for the unexpected. A thorough protection review can give you peace of mind that following illness, injury or worse, you can still provide for yourself, your family and your business.Key Features There are many areas of Protection to think about, we help break down what you need. Below are some areas of consideration. We can help answer questions on these and olan what cover is right for you.¢ You can guarantee lump sum cash payments for your loved ones should the worst happen e Income Protection gives peace of mind that your income doesn't need to stop working just because you have e You're more likely to fall ill, or injured than to die, so we can arrange cover to pay out for these circumstances ¢ Do you know how much cover you require? This is different for everyone, contact us and we can help. e What will happen to your business if you fall ill, or were to die?Insuring against the unexpected Protecting your finances is one of the most important contingency plans to safeguard you, your family and your business. Our protection planning advisors have years of experience in constructing robust plans to deal with any eventuality. Whether you require insurance to repay your mortgage if you're unable to, look after your family or specialist business insurance, the team are passionate about easing our Clients’ financial concerns. Protection planning usually involves looking at several areas that are relevant to your life and circumstances, including:Personal Cover ¢ Life Cover * Critical Illness Cover ¢ Income Protection Business Cover e Relevant Life Insurance ¢ Shareholder Protection e Key Person Insurance ¢ Business Loan ProtectionWhat Does Mortality Risk Mean? Mortality risk is the risk that an insurance company can suffer financially because too many of their life insurance policyholders die before their expected lifespans.Actuaries working for insurance companies rely on mortality tables to make informed assumptions about how long their policyholders will live. With these estimates, they can get an idea of how much they will earn in premiums compared to how much they will pay out in death benefits or annuitization. If a fair number of their policyholders die well before their life expectancy, the insurer will make less profit than anticipated.Cause of Death Leading Mortality Risk Factors Heart disease Cigarette smoking, high blood pressure, high cholesterol, obesity, poor diet and nutrition, and physical inactivity '22) Cancer Cigarette smoking, ultraviolet (UV) radiation exposure from sunlight or | tanning beds, heavy alcohol consumption, being overweight, or having obesity "3! COVID-19 Cigarette smoking and comorbid (simultaneous) diseases, such as diabetes, high blood pressure, | obesity, and cancer !14] Accidental _ Being prone to falling, injuries driving recklessly or under the influence, and exposure to toxic chemicals "5!Stroke Physical inactivity, cigarette | smoking, poor diet and | nutrition, having obesity, high blood pressure, and high cholesterol !61 Chronic lower Cigarette smoking, respiratory secondhand smoke, air disease pollution, allergens, and exposure to toxic chemicals (17) Alzheimer's Exposure to aluminum and | disease traumatic brain injury"®! Diabetes Chronic poor sleep quality, cigarette smoking, cardiovascular disease, high blood pressure, obesity, and physical inactivity '19!Flu and Having a comorbid health pneumonia condition, especially dementia, congestive heart failure, diabetes, and chronic pulmonary disease !201 Kidney Diabetes, high blood disease pressure, high cholesterol, poor diet and nutrition, physical inactivity, and obesity [21]What Is Health Insurance? Health insurance is a type of insurance policy that can cover various medical expenses incurred due to an illness or injury. These medical expenses can include hospitalisation costs, cost of medication, diagnostic test costs, doctor/physician fees and more. Read onWhy Do You Need Health Insurance? Never before has it been so important to take care of your health. The Coronavirus outbreak has made that abundantly clear for all of us. However, even before the global pandemic, there were several threats to our health present in the environment, because of which we need to understand what is health insurance. You might lead a healthy lifestyle, but unfortunately, a medical emergency can occur without warning. In times of a health crisis, the financial burden can become immensely stressful. With the skyrocketing healthcare costs, it can be challenging to pay for them out of your savings. Therefore, it is essential to plan for medical emergencies.Benefits of Health Insurance gee oe wee There are several benefits to investing ina health insurance plan next to understanding health insurance meaning. Following are the benefits of health insurance plans in India: © Optimum Coverage ¢ Cashless Claim Benefit ¢ Additional Protection ¢ Tax Benefits Let’s discuss the above health insurance benefits in detail.1. Optimum Coverage The principal reason to know what is health insurance and buy it is to create a financial shield for your future. There are several kinds of health insurance plans available to cater to specific requirements. It is crucial to understand your financial needs and choose a suitable policy. A carefully selected plan will provide optimum coverage, including regular check-up expenses, ambulance expenses, hospitalization charges, alternative treatment, and more. Some policies also offer coverage for treatment at home under medical supervision as apart of domiciliary treatment. Make sure you understand health insurance meaning in various facets before you choose a plan.2. Cashless Claim Benefit To make things easier, most insurance companies offer cashless treatment athospitals. The insurance providers have tie- ups with certain hospitals for such cases. It means that you do not have to pay medical bills directly when you avail of treatment ina network hospital. The expenses are settled between the hospital and the insurance provider. In the case of an unforeseen medical emergency, cashless treatment can be incredibly helpful.3. Additional Protection Most employers provide health insurance for their employees. However, many people find it to be unsuitable to their specific requirements. It may also be affected by a change in employment. A health insurance policy of your choice will put your mind at ease. A plan that is customized to your requirements will offer better security and stability. Furthermore, several riders can be attached to your existing plan and expand the scope of security. For example, the critical illnesses rider offers protection against life-threatening diseases such as cancer, heart attacks, kidney failure, and more.4. Tax Benefits One of the most significant benefits of investing in a health insurance plan is the tax benefits. Many people find it to be a substantial incentive behind opting for health policy. It is so because tax relief is a massive advantage for an individual's ongoing expenses. Tax Benefits of Health InsuranceIf your annual income falls under the taxable category, health insurance can prove beneficial in more than one way. The government allows tax deductions for specific expenses that will help reduce your taxable income. A health insurance plan comes under the list of expenses eligible for tax deductions. Under Section 80D of the Income Tax Act, you can claim a tax deduction of up to Rs. 25,000 for the self, spouse, or dependent children. If you have a health plan for your parents of less than 60 years of age, an additional deduction of up to Rs. 25,000 is applicable. In case the parents are above the age of 60, the deduction amount can be increased up to Rs. 50,000.In case both the taxpayer and the parent are above the age of 60, this section allows a maximum deduction up to Rs. 1 Lakh. There are also taxation reliefs for preventive health check-ups between Rs. 5,000 - Rs. 7,000 for the age brackets mentioned earlier. You can avail of the tax benefits under Section 80D and Section 80C by adding a critical illness rider with a Max Life term plan, thereby serving as a health insurance plan. You can use an online calculator to pay the premium.Types of Health Insurance Every individual has different requirements from their insurance plan, depending on their financial situation. Therefore, you must be exceptionally careful and thorough while investing in a health plan. Itis a critical life decision that will impact your future significantly. Consequently, it is essential to understand the types of health insurance plans available today to provide optimum coverage for yourself and your loved ones.There are two categories of health insurance policies. 1. Indemnity Plans 2. Defined-Benefit Plans Indemnity Plans e Mediclaim Insurance - This provides compensation for the hospitalization expenses that occur due to accidental stay or illnesses. It includes nursing charges, surgery expenses, oxygen, anesthesia, doctor's fee, etc. ¢ Individual Insurance - This is the most common type of health plan available. As the name suggests, it is meant for the insured individual only. The payable premium depends upon the insured individual's age, medical history, and other relevant factors. You can add additional members to the plan by paying an extra premium.¢ Family Floater Insurance - It provides coverage for the entire family under a single premium amount. This amount is comparatively lesser than that of an individual health plan. For a family with no significant health issues, this option might be preferable. However, if there is a family member with severe health issues, they might require a sizable amount of the sum insured, which will leave other members with a lesser coverage amount. Unit Linked Health Insurance - Commonly known as ULIPs, this plan is a combination of investment and insurance coverage. A portion of the premium amount is invested in mutual funds while the rest of it goes into securing insurance. The returns are subject to market performance. Group Mediclaim - This is a popular choice among large and medium scale enterprises. It offers health coverage for the employees under a common plan.Definite-Benefit Plans These are the type of health plans that provide compensation for a lump sum amount when the insured is detected with an illness. Here are the plans included: ¢ Critical Illness Plan - This plan offers a pre- determined amount of compensation upon detecting a critical illness regardless of pre or post-hospitalization charges. These critical illnesses majorly include life- threatening diseases such as cancer, multiple sclerosis, paralysis, kidney failure, stroke, paralysis, and more. Hospital Daily Cash Benefit Plan - Under this plan, a pre-set sum assured is offered as compensation for each day of hospitalization. These plans are available as standalone covers or riders. Personal Accident Plan - This plan provides compensation in case of an accidental injury or demise. Some Plans also cover loss of income due to a temporary permanent disability rendering a person unfit to go back to work for a few days.How to Choose Health Insurance Plan? While deciding to purchase a health insurance plan, there are certain things you must consider. Here’s how to choose a plan that provides maximum benefits: ¢ You must choose the sum-insured precisely based on your age, marital status, and health condition. Inadequate coverage will defeat the purpose of a health plan and cause financial strain. It is often recommended to invest in a health plan ata younger age since the premium amount is comparatively lesser and waitig periods can be consumed during the early years when one is healthy When you purchase a health plan, there is a waiting period before the insured can claim the compensation. Since different plans have varying terms and conditions, make sure that your plan's waiting period is relatively lesser* Consider the claim-settlement ratio of the insurance provider as well ° Make sure to look at the network list of hospitals e Strengthen your plan by adding relevant riders to it Eligibility Criteria to Buy Health Insurance Principally, if you are an earning individual, itis highly recommended to invest in a health insurance plan. Itis a significant financial decision that helps plan the future.Eligibility Criteria to Buy Health Insurance Principally, if you are an earning individual, it is highly recommended to invest in a health insurance plan. Itis a significant financial decision that helps plan the future. Insurance providers have specific eligibility criteria in place. Most often, this includes a medical screening of the person to be insured. It evaluates their health according to specific medical parameters to make a note of any underlying medical conditions. It enables the underwriter to arrive at a reasonable cost of the premium. It also helps in avoiding any future disputes over the insurance claim.Documents Required to Buy Health Insurance Different insurance providers require a different set of documents when buying health insurance. Here is a list of standard documents that are needed: e Age Proof - A voter ID Card, Pan Card, Aadhar Card, Passport, Driving License, or Birth Certificate. e Identity Proof - A Voter ID Card, Passport, Aadhar Card, or Driving License e Address Proof - Ration Card, Driving License, Passport, Rent agreement if applicable, PAN Card, Aadhaar Card and utility bills like electricity bill, telephone bill, etc.e Passport-size photographs (if demanded by the insurer) e Medical reports (if demanded by the insurer) ¢ Proposal form duly filled in and signed How does Health Insurance Work?How does Health Insurance Work? At the time of health insurance purchase, the insurer calculates the premium that need to be paid based on factors like the sum insured, applicant age, pre-existing conditions, add-on benefits, etc. Usually the insurer carries outa medical check-up of the applicant prior to confirming the premium amount that needs to be paid. After initial purchase of the policy, the due premium amount needs to be paid usually onan annual basis to keep the policy in effect. If expenses are incurred as a result of hospitalization or treatment while the health insurance policy in effect, such medical expenses will be covered unless they are in the health insurance exclusion list. In case of covered medical expenditures, there are two ways a health policy can work - cashless method or reimbursement method.Cashless Process Health insurers offer cashless treatment through a specific network of hospitals/clinics, the details of which can be found on the insurer’s website. If the policyholder seeks treatment and/or hospitalization at a network hospital, the claim will be processed directly by the insurance company. So, out of pocket expenses by the insured individual is minimized. Reimbursement Process If the insured person gets treated at a hospital that is not part of the insurer's network, in that case, the cost of treatment/hospitalization will be initially borne by the policyholder. But, this expenditure will be reimbursed by the health insurance provider on providing detailed bills, treatment notes and other documentation as per the insurer's policies. From above you can see that when health insurance works, your out of pocket medical costs are minimized so that your savings are minimally impacted.What is Not Covered by Health Insurance? As mentioned in the earlier section, not all hospitalization and treatment-related expenses are covered by health insurance. Such medical expenditures are commonly termed as health insurance exclusions and not covered by the health insurance company. These are out-of-pocket expenditures for the policyholder and some common examples of excluded expenditures are: ¢ Non-medical expenses such as food costs during hospitalization e Pre-existing conditions * Cosmetic procedures such as plastic surgery ¢ Costs associated with dental treatment ¢ OPD treatments unless otherwise covered by the plan ¢ Cost of treatment for self-inflicted injuries, etc. The above list of exclusions is not exhaustive and there can be additional exclusions as per the insurer’s individual criteria.What Is Disability Insurance Planning? Disability insurance planning is the process of evaluating your potential risks and financial needs in the event that you become unable to work due to a disability, and then determining the type and amount of disability insurance coverage that would best meet those needs. Disability insurance can help replace a portion of your income, cover medical expenses, and provide financial security in the event of a disability. Disability insurance planning involves assessing your current financial situation, determining how much coverage you need, and selecting the right type of disability insurance policy to protect you and your loved ones.Types of Disability Insurance Short-Term Disability Insurance Short-term disability insurance provides income replacement for a limited period, typically three to six monihs, following a brief waiting period. Long-Term Disability Insurance Long-term disability insurance offers income replacement for an extended period, often up to retirement age, with a longer waiting period than short-term disability insurance. Social Security Disability Insurance (SSDI) SDI is a federal government program that provides income replacement to eligible individuals who have become disabled and can no longer work.Workers' Compensation Workers’ compensation is a state-mandated insurance program that provides benefits to employees who suffer work-related injuries or illnesses. Private Individual Disability Insurance Private individual disability insurance policies are purchased independently and provide customizable coverage options based on individual needs.Group Disability Insurance Group disability insurance is offered by employers as part of their employee benefits package, providing coverage at a lower cost than individual policies. Business Overhead Expense Insurance Business overhead expense insurance helps business owners cover operating expenses if they become disabled and are unable to work.Comparing the Types of Disability Insurance hdd) Short-Term Disability Insurance Long-Term Disability Insurance Social Security Disabi Insurance (SSDI) Workers’ Compensation Private Individual Disability Insurance Group Disability Insurance Business Overhead Expense Insurance COVERAGE PERIOD Limited, Typically 3-6 Months, Extended, Often up to Retirement Age Until Retirement Age Varies by State Tailored to Individual Needs Varies by Policy and Employer Typically 12-24 Months of Coverage PPM Life) 9} Brief Longer Five-Month Waiting Period Typically None Varies by Policy Varies by Policy Typically 30-90 Days LT Tel Income Replacement Following a Brief Waiting Period Income Replacement for a Longer Period Federal Government Program That Provides Income Replacement to Eligible Individuals Provides Benefits to Employees Who Suffer Work-Related Injuries or Illnesses Purchased Independently and Provides Customizable Coverage Options Offered by Employers as Part of Employee Benefits Package Helps Business Owners Cover Operating Expenses if ‘They Become Disabled and Cannot WorkAssessing the Need for Disability Insurance Evaluating Personal Financial Risk Consider your financial obligations, such as mortgage payments, student loans, and living expenses, to determine the potential impact of a disability on your financial stability. Estimating Monthly Expenses and Income Replacement Needs Calculate your monthly expenses and the amount of income replacement needed to maintain your current lifestyle in the event of a disability. Assessing Existing Coverage Review any existing disability insurance coverage, including group plans and government programs, to determine if additional coverage is necessary.Determining the Appropriate Coverage Duration Consider factors such as your age, health, occupation, and financial goals when determining the desired duration of disability insurance coverage. Ptciot ASH Me UNM NCard DET] eA = Tater) 2} Evaluating Personal Financial Risk Estimating Monthly Expenses and Income Replacement Needs Assessing Existing Coverage 9ee99 Determining the Appropriate Coverage DurationUnderstanding Disability Insurance Policy Terms Elimination Period The elimination period is the waiting period before benefits begin, ranging from 30 days to several months. Benefit Period The benefit period is the length of time during which disability benefits are paid, which can range from a few years to retirement age. Definition of Disability Disability definitions vary among policies and can include total disability, partial disability, or occupation-specific disability.Residual or Partial Disability Benefits These benefits provide income replacement for individuals who can work but have a reduced capacity due to a disability. Cost-Of-Living Adjustments (COLAs) COLAs are optional policy features that adjust benefits to account for inflation over time. Future Increase Options Future increase options allow policyholders to increase their coverage without undergoing additional medical underwriting. Non-cancelable and Guaranteed Renewable Provisions Non-cancelable policies guarantee that premiums will not increase, while guaranteed renewable policies ensure that coverage cannot be canceled as long as premiums are paid.Property Insurance Property insurance broadly covers policies that provide either property protection coverage or liability coverage for property owners. It offers financial reimbursement to the owner or renter of a property and its contents in case there is damage or theft— and to a third-person other than the owner or renter if that person is injured on the property. Personal property is usually covered by ad homeowners or renters policy. * PROPERTY \ INSURANCE ~Home Insurance Home insurance offers coverage to a house and its content from unforeseen circumstances such as damages caused by natural calamities (earthquake, fire, flood, storm, landslide, etc.) and man- made activities (theft, burglary, terrorism, riot, etc.). Be it a damage or loss to your owned apartment, luxurious bungalow or d rented flat, a home insurance policy covers your home to ensure it always stands strong to give you the shelter and protection you need. Features Below are some of the key features of Home Insurance: Cover for Damages The fundamental feature of a home insurance policy is the coverage it offers against different damages. Home insurance policies not only protect your house but its surroundings, and the contents of the house.Cover for Building/ Structure Cover for the building/structure is the basic coverage that every home insurance plan offers. This protects the physical structure of the building/house/dwelling against different risks and perils. The coverage offers protection to the structure including electrical apparatus, air-conditioning, building, plumbing, heating etc. Cover Additional Structures Apart from coverage to the building, home insurance policy also offers coverage to the additional structures around the house (that might not necessarily be attached to the building). Some of the examples may be fence around the house, detached garages, retaining wall, backyard shed, mailbox, the driveway, pool etc.Covers Personal Property/ Possessions Home insurance policies also offer cover for personal possessions/property or the house's contents against different perils and risks. House insurance policy might include electrical appliances, personal computers, television sets, refrigerators, microwaves, air-conditioners, etc. It includes furniture such as dining tables, couches, beds, together with furnishings such as rugs, curtains etc. Most often, expensive assets including jewellery are also covered.Coverage e Fire & Allied Perils ° Coverage for building © Covers contents of the dwelling belonging to the proposer and his/her family members permanently residing with him/her. © Fire, Lightening, Explosion of gas in domestic appliances © Bursting and overflowing of water tanks, apparatus or pipes. ° Damage caused by Aircraft o Riot, Strike, Malicious or Terrorist Act o Earthquake, Fire and/or Shock, subsidence and Landslide (including Rockslide) damage ° Flood, Inundation, Storm, Tempest, Typhoon, Hurricane, Cyclone. © Impact damageBurglary Theft & House Breaking All Risks (Jewelry & Valuables) e Plate Glass e Breakdown of Domestic appliances e T.V. Set (ALL RISKS) e Pedal Cycles © Covers loss or damage to pedal cycles by: o Fire & allied perils o Burglary, housebreaking, theft © Accidental external means © Third party personal injury or Third-party property damage e Accompanied Baggage Insurance e Personal Accident e Public LiabilityExclusions e Damage as a consequence of war, invasion, act of foreign enemy, hostilities (whether war be declared or not), civil war, rebellion, revolution etc. Any damage due to confiscation, commandeering, acquisition or destruction by the order of any government or lawfully constituted authority Any damage directly or indirectly caused by or contributed to or arising from ionizing radiation or contamination by radioactivity Depreciation and damage caused by wear and tear or gradual deterioration. Damage to property and contents due to pollution of any kindRenter’s Insurance A rented house is also a home and should be protected. One may feel that the landlord would insure his property anyway, then why should they bear this additional expense. But what about your belongings and valuables in the house? This particular indemnification can draw the fine line between losing everything you possess and getting back on your feet in a flash when misfortune strikes you. Hence renters insurance protects valuable possessions against unforeseen circumstances and damages. Coverage This insurance provides coverage for individual assets and the legal accountability of the insured: e Coverage against unforeseen catastrophes like fire, burglary, theft etc.Recover or replace all your personal valuables, furniture, electrical or mechanical appliances, garments and even items of everyday use. Coverage against natural calamities and manmade hazards Compensation for third party injury incurred while in your rented place Damage to property is also covered with the expenses required for all the legal hassles. Based on your plan and deductibles opted, you can get compensation for legal, medical and other repair expenditures. Shifting expenses, rent for alternative/hotel accommodation, emergency purchases, and brokerage in case your home becomes unfit for living because of any covered cause of loss.Add-on Covers Portable Electronic Equipment such as laptop, camera, binoculars, musical equipment; sports gear any other specified item of portable nature. Jewellery and Valuables like ornaments or articles made of gold or silver or any precious metal including diamonds as well as sculptures and watches. Losses to static exercise cycle as well as your pedal cycle with or without gear. It covers losses caused by fire, calamities, theft and accidents. Loss due to d terrorist attack wherein your home structure/content gets destroyedExclusions The following eventualities are generally not covered: ° Loss and/ or damages arising out of situations such as war, invasion, act of foreign enemy, Loss of precious collectibles like bullions, stamps, work of art, coins etc. Old items that are over 10 years old Consequential losses Willfully done damage to your property, Damage caused to your property due to third party construction Usual wear and tear or maintenance/renovation. The cost of land Under construction propertyfeatures eature enefits 7EATURE features features Loatures oO g eS oO 2 The average penetration and density of life insurance in India is a measly 2.76%. There have been improvements in this arena but overall the growth has been rather slow in India. Not many people are aware of the benefits of life insurance and the numbers for penetration are an indicator of the same. Accidents and mishaps are strong indicators of how fragile human life can be and how we need to systemically insure our lives. It is an important tool for providing an individual's family with safety and security. It acts as a protective cover to safequardsecurity. It acts as a protective cover to safeguard the insured's dependents. In the event individuals do not insure their lives, their dependents end up facing the tragic loss of their loved one along with a whole host of liabilities such as rent, loans, EMI's and child services. Life insurance is crucial for families to feel security and a sense of confidence to continue their lives without losing their everyday stability. To help understand the key features and advantages of life insurance, here's a quick lowdown: Features of Life Insurance Plans 1. Policyholder Policyholder is the individual who pays the premium for the life insurance policy and signs a life insurance contract with a life insurance company.2. Premium A premium is the cost the policyholder pays the life insurance company for covering his/her life. 3. Maturity Maturity is the stage at which the policy term is completed and the life insurance contract ends. 4. Insured Insured is the individual whose life is secured via the life insurance. After his/her death the insurance company is accountable to provide a financial amount to the dependents.5. Sum Assured The amount the insurance company pays the dependents of the insured if those events occur which are specified in the life insurance contract. 6. Policy Term Policy term is the specified duration (listed in the life insurance contract) for which the insurance company provides a life cover and the time period during which the contract is active (listed in the life insurance contract). 7. Nominee A nominee is an individual listed in the life insurance contract who is entitled to receive the predetermined compensation, as a part of the policy. 8. Claim On the insured's demise, the nominees can file a claim with the insurance provider in order to receive the predetermined payout amount. vyAdvantages of Buying a Life Insurance Policy 1. Death Benefits Life insurance enables individuals to protect themselves and their families, in case of any unfortunate happening in the life of the insurer. The insurer pays an amount equivalent to the sum assured as specified in the contract along with applicable bonuses. This is known as the death benefit. 2. Wealth Creation through Investment Components A few life insurance policies offer wealth creation benefits as well. In such life insurance plans, you can invest your premiums in different funds based on your risk appetite. These life insurance plans are excellent wealth builders in the long run.3. Financial Security The primary importance of a life insurance policy is that it provides your family with long-term financial security. Life insurance policies provide a lump sum money to financially support your family in the case of your early demise. Plans like iSelect Smart360 Term Plan term can look after the family’s regular expenses, future goals and any ongoing debts after your death. 4. Loan Option A cheaper loan facility is one of the important benefits of life insurance plans. You can use your life insurance policy with the investment part for a loan as well. Life insurance plans like guaranteed savings plans, money back plans and whole life insurance policies acquire a cash value over time. You can borrow at a low rate of interest against this cash value.5. Life Stage Planning The importance of life insurance grows as you progress through your life stages. Life stages refer to the multiple major stepping stones like marriage, childbirth, home purchase, retirement, etc. You can use life insurance plans to prepare for each of these life stages. For example, term insurance for protection, child plan for child’s marriage and education, ULIP for building wealth, the pension plan for retirement, etc. 6. Assured Income Benefit Assured Income benefit is another important benefit of life insurance plans. iSelect Smart360 Term Plan offer a regular income payout option for your family after your early demise. Similarly, life insurance pension plans can offer a long-term guaranteed income to you and your spouse.Why do you need a Life Insurance? Pays on diagnosis of lifestyle diseases Provides monetary help for accidents Offers benefit on disabilities due to accidents Covers medical expenses Pays the nominee on the demise of policyholderWhat is a Non-Life Insurance Policy? The definition of non-life insurance is, the losses that are incurred from a specific financial event are compensated to the insured this is called non-life insurance. General insurance, property insurance and casualty insurance are other names of non-life insurance. It can be defined as any insurance that is not related to life insurance. People, legal liabilities and properties are covered under a non-life insurance policy. Examples of Non-Life Insurance: There are some examples of non-life insurance policies that completely justify the meaning of the term. General insurance policy examples are homeowners policies, motor insurance policies, marine insurance, damage coverage from fire, calamities, theft, travel insurance or any online breach incident related to cybersecurity. It is very difficult to measure the amount of damage caused by online incidents as the probability of occurrence of these risks is extremely difficult to ascertain. However, these can be covered with the help of a non-life insurance policy.Key Features & Benefits of Non-Life Insurance Policy: Non-life policies features include the following: 1. The amount specified in the policy is the sum insured which, during the policy period, symbolizes the insurer's maximum liability for claims. The insurer may specify the available amount of sum insured. 2. The policy period of a non-life insurance plan is usually short, i.e., one year. The duration can be longer depending upon the type of insurance. 3. The premium of the policy is paid right before the insurance company issues the policy. When an application for insurance is received by the company, they assess the risk involved depending upon the type of cover required. For example, under health insurance, the age, medical history, and current medical status of a person will be taken into account before the insurance policy is issued.4. Any claim is not fully borne by the insurance company. The policyholder needs to pay a small share, this share is called a deductible. 5. If no claims are made under a general insurance policy, then the policyholder is awarded a discount called No Claim Bonus. This is a cumulative discount on the premium of the policy that increases till it reaches a certain number. The benefits of a non-life insurance policy are: 1. In case of health insurance, financial help is provided at the time of a medical emergency. 2. It is mandatory by law to buy a third-party motor insurance policy. It can take care of the compensation to be paid to the third party in case of damage to property or life. 3. Home insurance covers the residential property of the policyholder against many unforeseen incidents, like fire, burglary, natural calamities, riots, etc.4. Travel insurance plans offer insurance coverage to senior citizens and children as well. These help with issues like loss of baggage, accidents, loss of documents, etc. in a foreign land. 5. Commercial insurance benefits the businesses with policies like employee benefits insurance, shopkeepers insurance, property and marine insurance, etc. Policies of non-life available in India: The types of non-life insurance policies in India are: e Marine insurance e Home insurance e Travel insurance Health insurance ¢ Motor insurance e Commercial insuranceIn India, insurance policies for mobile, shop protection and bicycle are also provided under non-life insurance. Is Non-Life Insurance Different From General Insurance? No, general insurance is not different from non- life insurance, both are typically the same. General insurance or non-life insurance provides coverage to people, legal liabilities and properties. Difference Between Life Insurance and Non- Life Insurance: Life insurance provides a lump sum amount of sum assured at the time of maturity or in case of death of the policyholder. Non-life insurance policies offer financial protection to a person for health issues or losses due to damage to an asset.Comparison basis Life insurance General insurance Life insurance protects against life risks where the insured individual is promised by the The insured individual is promised to be compensated by the insurance company for the damage Definition insurneé Gornpal caused due to an ompany unfortunate for uncertainties . and ambiguities of circumstance or any life-related to loss. The valuable death, ater things of people are . protected by general insurance. Policy Long-term Short-term Period tite Insurance Is Whereas general Nature of + 9 insurance can be i, an investment, and the policy it is not a contract termed as r - indemnity’s contract. of indemnity. The policyholder tho lier nonnie and + receives the insured under the The insured | benefits of the ‘ insurance policy get the coverage benefits of the ge insurance coverage. The sum assured is Claim is processed paid at the maturity as per the damage or Claims of the policy or financial loss death of the suffered by the policyholder policyholder. Depends upon the Depends upon the Cost of the amount of sum value of the insured policy assured offered by asset. the insurance policy,What is the Difference Between Participating and Non-Participating Life Insurance? A participating policy in life insurance is a policy that offers a share of the insurer's profits to the policyholder. The profit is paid out in the form of bonus or dividends. Whereas a Non-Participating is the one tl company's table that s types of Life Insurance policies: at does not offer a share of the profit to the policyholder. Here is a hows the difference between the best examples of a participating policy. Type of a 7 Non-Participating difference Participating policy policy " There is no profit The policy offers a sharing in aon. Meaning share in the articipatin company's profit. policy pating Bonus r Payout Annual Nil Higher than non- Lower than a ; participating policy er that Bfamntar due to possible profit pariclpating sharing. policy. 7" No additional Benefit Inourence and a share benefit apart from . 1, . insurance in company’s profit. coverage Unit Linked Insurance Term insurance is Examples Plans is one of the an example of a non-participating policy.Importance of Non-Life Insurance Policy: Here are the reasons why buying a non-life insurance policy are important: e Financial security at the time of need is one of the major upsides of buying a non-life insurance policy. e The insurance company will bear the cost of a financial liability. Thus, such risks are carried over to the insurance company from the policyholder. e Peace of mind related to possible financial crises.