Why is Term Insurance So Affordable?

All of us have several financial goals, but a common dream most of us share is securing the future of our loved ones. Term insurance plans can go a long way in achieving your financial goals. However, there is a general misconception surrounding insurance that it is expensive. In this article, we’ll discuss how and why term insurance is, instead, affordable and the factors associated with it.

What is Term Insurance?

As the name suggests – term insurance plans are valid for a specific ‘term’ or period. It means that the validity of the plan remains till the tenure of the policy. Insurance companies offer this life cover for a nominal periodic amount. This is called the ‘premium’.

Suppose the insured policyholder covered under the term plan meets with an unfortunate demise. Then, the insurer transfers the online term plan benefits to their nominees. It greatly benefits those who are the sole breadwinners of their families. These plans provide the much-needed financial assistance in case of an untimely event by transferring policy benefits.

Understanding How Term Insurance Plans Have Low Premiums

While you have to pay premiums periodically, several term insurance plans have low premium costs. Let us take a deeper look into how and why this is possible.

  • This is a pure life cover

Most online term plans can become pure life covers. They can get converted to insure you permanently for your entire life. This is universally one of the key reasons term plans have low premium rates.

  • Policies can be purchased online

When you choose to look for term plans online, it reduces distribution costs. Thus, the insurance companies generally pass on the benefits by way of lower premium rates. The online process is convenient, fast, and hassle-free. It involves relatively less paperwork and people costs, all of which contribute to a cheaper premium.

  • Usually purchased at a younger age

Once they understand the concept of a term insurance plan, most people lean towards making the wise decision of buying a policy or an online term plan while they are young. The possibilities of a young person losing their life are remote and significantly lesser. Hence, insurers offer these policies for relatively lesser premium prices.

  • Healthy lifestyle

Insurer companies closely examine your medical history and current lifestyle before finalising a policy premium. If you’re a smoker, you may end up paying a higher premium price than someone who does not smoke. To put it bluntly, this is because the mortality rates between a non-smoker and a smoker are vastly different.

Some more factors make term insurance plans affordable to the common man, such as:

  1. Absence of fund management charges

Online term plans have zero money management or portfolio-related expenses. Hence, insurance plans are different from money-backed plans. Term plans do not require funds that require investment or any kind of monitoring. Thus, it lets insurance companies offer a competitive premium to potential policyholders.

  1. Zero hidden comparisons

The process of buying term plans online gives you the option of comparing different plans offered by several other companies. You can use an online term insurance plan calculator to compare several quotes. Once the term insurance plan calculator gives you a fair idea about the total term cost and premium involved, you can see how well it suits your needs and budget.

The term insurance plan calculator is a great method to help you understand if additional benefits will cost you more. Should you make a move from your current plan, or upgrade? A term insurance plan calculator will help you make this decision using real-time, quantitative parameters.


Online term plans cover both anticipated and unforeseen expenses by providing your family with a large financial cover at a reasonable periodic investment. This keeps them secure even during your absence. Term insurance plans have also become quite affordable these days.

Use a term insurance plan calculator to see how this policy will fit in your budget. But with good health and the right timing, you can potentially unlock a pocket-friendly term insurance plan with low premium rates and a lot of benefits.

If you are looking to buy an insurance cover that suffices your basic needs and requirements without burning a hole in your pocket, term insurance plans are your go-to option.

read more

Postman to Provide Car Insurance at Doorstep

Whether you drive a sedan or a SUV, it’s mandatory to get the vehicle insured. There are multiple benefits of car insurance such as cost-saving while repairs and getting coverage at the time of theft or any other accidental damage. Comprehensive car insurance plans also cover third-party liability. In case of adverse circumstances or any injury or casualty to the third-party from your vehicle, the compensation to him would be paid from the insurance policy. Insurance papers are among important car-related documents. Even while buying a second-hand car, it’s crucial to check the status of the insurance policy. Before renewing it or purchasing a new one, ensure to transfer the car insurance in your name. On a car insurance calculator, you can figure the exact amount that you will have to pay as premium.

Till now customers sought advice regarding car insurance plans with either car dealerships or visited offices of insurance providers. Now, Indian Post will sell car insurance plans as well. So, either you can visit your nearest Post Office or the postman will visit your home. Starting July 1, 2021 Indian Post will be selling car insurance plans in the districts of Kaushambi and Prayagraj. The Post Department plans to extend it to other districts as well. The insurance policies would be provided by IPPB (Indian Post Payment Bank), a branch of the Indian Post that provides financial services to unbanked areas.

How to Buy Insurance from the Postal Department?

In order to enquire about car insurance plans and book a slot, you can either visit the website of the post department and request for car insurance. You can also call the Post Office and ask them for a home visit regarding car insurance. You can cross-check the monthly amount on a car insurance calculator.

Documents Required to Buy Insurance

  •   If you want to buy car insurance, you must have a valid Aadhar card and car registration document. The postman may also ask for previous insurance policy details.
  •   Those who have an account with IPPB, just need to provide a car registration number and their account number.

What are Advantages of Buying Car Insurance from Postman?

Buying car insurance plans from Indian Post offers the following benefits:

  •   Authenticity: Indian Post is a large government department that operates across the nook and corner of the country. It selling a particular insurance plan means that there are negligible chances of it being dubious or a sham.
  •   Convenience: You won’t need to make multiple visits to the office of insurance providers. Once the postman collects your identity documents and the car details from your home, the insurance papers too will be dispatched at your home address.
  •   Time-Saver: With the postman paying you a visit, it will save your time as well.
  •   Auto-Debit: In case you have an account with the IPPB, the payment amount will get automatically deducted at a particular date.
  •   Smooth Process: Upon the verification of your car’s registration documents, the insurance would be issued without any further delay.

Key Takeaway

While selecting car insurance plans look for maximum coverage and other additional benefits. For the purpose of third-party accidental liability, it’s mandatory to get your car insured. With a postman providing car insurance right at your doorstep, the process would be easy and save time. It will also get rid of unnecessary documentation. Just keep your personal ID proofs and car registration paper handy and after verification the insurance papers would be delivered at your home by post. Bajaj Allianz car insurance renewal is among the plans offering value for money. Head over to the Finserv MARKETS platform for more such products and useful information!

read more

6 Things to Remember When Renewing Two-Wheeler Insurance

As a biker owner, you probably already know that it is mandatory to have at least third-party two-wheeler insurance to ply your vehicle on the roads. However, simply renewing your third-party coverage each year might not be enough. If your bike insurance plan is due for renewal anytime soon, this article is just for you. Read on to discover 6 things that you must keep in mind when renewing your bike insurance this year.

  1. Review your coverage

Start off by reviewing your existing bike insurance plan and whether it has served your needs for coverage adequately till date. For instance, if you have a third-party insurance plan, think about whether you would benefit more from comprehensive insurance. Remember that a comprehensive insurance plan goes above and beyond to cover your own damages as well as damages from natural and man-made calamities. For instance, if you live in a region that is prone to floods, you might want to opt for comprehensive insurance to stay covered against any natural disasters.

  1. Opt in for add-ons

If you decide to upgrade to a comprehensive bike insurance plan, you can improve on the protection you receive by opting for add-ons. Think about getting add-ons like zero depreciation cover, consumables cover, and roadside assistance. While these add-ons come at a slight increase in your premium, the extra amount you have to pay is worth the peace of mind you receive in return.

  1. Check the premium pricing

Once you have finalised the type of two wheeler insurance coverage you want, compare the premiums charged by at least 3 to 4 insurers. It helps to know whether you are paying more with your current insurance plan so that you may shift to a cost-effective option. After all, any money that you save is money earned.

  1. Compare insurance companies

There are so many insurance providers out there and each one offers you great deals. However, it helps to compare them too based on certain factors such as – how long they have been in the industry, what is their claim settlement ratio, what extra benefits or discounts they offer, and so on. By evaluating insurance companies with these parameters, you can truly select the best company.

  1. Read customer reviews

When renewing your bike insurance plan, do make sure to check what other customers have to say about the insurer you are planning to go with. Look whether most of the reviews are positive or negative. While a few negative reviews are normal, too many negative reviews can be a red flag.

  1. Renew your coverage online

One of the best ways to get a great price on your two wheeler insurance plan is by opting to renew coverage online. The benefits of getting insurance online don’t end there! Renewing your coverage online is also faster and paperless too!

Keep these 6 things in mind this year when you renew two wheeler insurance. Remember to always wear a helmet and ride safely!

read more

Things You Should Know Before Buying an Endowment Plan

They say, “Rome wasn’t built in a day” and this very well applies to your savings. You cannot accumulate savings for your future needs unless you plan and save regularly to build a corpus. A proper guaranteed income plan that benefits you even in uncertain market conditions could pave the way for your financial freedom.

Endowment policies serve as an excellent investment that safeguards you with Life insurance and guaranteed income; they serve the purpose of wealth creation by ensuring income and further protecting your family against any contingencies.

Given the importance of these savings plans and the fact that there are a plethora of options available in the market, you must know what to look for while buying endowment plans.

The following could be used as a checklist before you buy an endowment plan.

  1. Stability and reputation of the company: Remember that you will invest a good part of your life’s savings in these plans, and hence you need to choose a financially stable company with a good reputation in terms of its policies. You cannot compromise at any stage of selecting a reliable company that you would need to trust with your life’s savings.
  2. Claim settlement ratio and customer service: The claim settlement ratio gives a clear picture of the number of claims settled against the number of claims raised. The higher the claim settlement ratio, the higher is the reliability of the policy provider. You can also check the company’s customer service experience to understand if they offer quality service to ease your future needs.
  3. Premium rates and their payment flexibility: If you are taking high premium plans, always check the premiums of different policies as they vary between plans and provider companies. Choose the plan that gives you the best return when compared to the premium paid.

The flexibility of premium payment is also an important aspect to look at when you take an endowment policy – many policy providers give the option of paying premium monthly, biannually, annually, or a one-time lump sum. You can choose the policy that offers you a suitable premium paying frequency at your convenience. For instance, Tata AIA premium pay is available online along with flexible premium payment options as per your needs.

  1. Enhanced coverage benefits: Apart from life insurance cover, endowment plans offer enhanced protection options where one can choose to add additional riders like critical illness, disability, death rider, etc. Make it a point to select those plans that give you rider benefits for broader and comprehensive coverage. These additional riders provide enhanced security to your family in the event of any mishaps.
  2. Track record for higher returns and bonus: In the end, everything boils down to getting good returns on your invested money; hence always check the bonus history and the returns track record of the policy provider before you choose the endowment life insurance plan. Ensure that you select the plan that gives you desired returns to meet your short-term and long-term financial goals.

When to take an endowment plan?

Starting early in your career helps build a significant corpus that could guarantee secured financials. There’s never an ideal age to take an endowment plan because it varies from person to person. You should choose the plan according to your current income, future requirements, lifestyle, and retirement-seeking age. And if you are someone who does not have the habit of saving money religiously, these plans will prove the most effective for situations like a child’s higher education, marriage, buying a house, etc.

How to get an endowment plan?

You can use the checklist mentioned above to conclude the features that suit your requirements the most. While choosing the plan, make it a point that the policy term and the pay-out term of benefits match with your financial planning.

Once you choose the policy provider that is offering the features that you desire, you can approach the insurance provider directly at their dedicated branches to buy the policy. Alternatively, you can also purchase these plans online at ease, but make sure that you select the suitable options and input correct information while filling up the form.

Always double-check the policy features and the benefits it offers before finalizing and paying the premium.

To sum up:

Endowment plans act as assured income plans to secure you in 3 different ways – protecting with a sum assured, guaranteed income for wealth creation, lump-sum payment at the end of the policy tenure that could act as a corpus for retirement, and personal needs.

Hence always check the suitability of the plans to your financial goals and needs before taking them.

read more

What are the Benefits of Using a Car Insurance Calculator?

When you own a car, the first thing you must do to safeguard your vehicle’s future is to get car insurance. A car insurance policy is an important document that you must possess to drive your car legally on Indian roads. If an insured vehicle gets damaged in any way, the insurance company provides the policyholder with insurance coverage. The insurance coverage would help the policyholder take care of the damage repair costs. However, the process to buy the right policy can be a bit tricky, as the insurance requirements would be different for different individuals. When you decide to purchase car insurance online, you must be extremely cautious as this plan is going to safeguard your car for a long tenure.

To make the process easy for their customers, insurance companies for cars have launched the car insurance calculator. This calculator is generally available on the insurer’s website and is entirely free of cost. The insurance calculator will provide you with an estimate on your insurance policy premium, depending on the information you provide. The premium amount estimation will be done on factors like your age, location, car’s make and model, the policy you have chosen, tenure, etc. The insurance calculator will provide you with instant quotes on comprehensive and third-party insurance. You can use the calculator for both new and old cars.

Benefits of using a car insurance calculator:

  • Saves time:

The calculator will help you calculate your car insurance premium with high accuracy quickly. When you are trying to buy a plan, you will not have to conduct manual calculations. With the calculator’s help, you can get the premium quotes for an insurance policy within seconds.

  • Easy to use:

These calculators have a simple user interface and are relatively easy to use. Before using the calculator, you must ensure you have all the required information ready. To use the calculator, you will have to add the relevant information in their respective slots. The calculator will do the rest of the task.

  • Helps you compare:

When you are trying to purchase car insurance online, it can be challenging due to the availability of different online plans. Picking one policy out of the wide range of plans available can make buying a policy somewhat confusing. However, with an insurance calculator, you can understand the suitability of different plans, with regard to their cost as well as your needs and your budget. You can compare other plans and customize the different plan elements to find the most suitable plan for you.

  • Can lower premiums:

The calculator provides you with the premium quotes you will have to pay through a plan. You can understand how different factors like IDV, voluntary deductible, etc. play a part in your premium. Once you know how they factor into your premium amount, you can customize them in the calculator and select a low premium plan.

  • Add-ons:

Add-ons and riders are the other additions you can add to your plan. A rider will provide you with additional coverage for a specific event. Adding riders can improve the insurance coverage you get from the policy. Adding a rider to your plan can affect the amount you pay as premiums, as the addition of add-ons to the plan increases the amount, depending on the rider you choose. With the calculator, you can see how the addition of a rider can affect your premium amount. Once you understand this, you can select the right mix of riders to add to the plan.

  • No agent required:

An insurance agent would be the one who told you about the different plans available for you in the past. But, they would generally have biased opinions about policies and charge you for their services. With the calculator, you can choose an insurance plan all by yourself, without any outside opinions and free of cost.

  • IDV:

The calculator helps you adjust your IDV (insured declared value) to the one suitable for your car’s make, model and age. Including the correct IDV will ensure that you will be fairly compensated with your car’s current market value if your vehicle gets stolen or completely damaged.

The calculator will first analyze the information you have provided, like details about yourself, your car and your policy and then provide you with the premium amount you can pay. Using the car insurance calculator has a lot of benefits; for instance, it would remove the requirement of an agent, help you understand how to lower premiums or what add-ons to include, etc.

Therefore, when you buy a car, you must also purchase a car insurance policy and be sure to use a car insurance premium calculator. While four-wheeler insurance is a good way to save yourself from paying damage repair costs on your vehicle, the calculator makes the process of purchasing a car insurance policy easy. Before making the car insurance online payment, it would help if you used the calculator.

read more

5 Questions Buyers Normally Have About Two-Wheeler Insurance

Buying your first two-wheeler can be pretty exciting. You probably can’t wait to take your bike out on long trips over the weekend or post selfies with your ride on Instagram. But before you head out, it is important to get your bike insured. Now, buying insurance might be confusing if you are doing it for the first time. You may have many queries that need answering. You’re not alone; a lot of other new bike owners too have similar doubts. To help you out, here are the answers to 5 questions buyers normally have about two-wheeler insurance.

  1. What is my bike’s IDV and how is it calculated?

IDV stands for the ‘insured declared value’ of your bike. The IDV figure is calculated based on your bike manufacturer’s current estimated market value of your vehicle minus depreciation. Any extra charges that you have paid to own your bike – such as road tax and registration costs – are not included in the IDV. The IDV is important as it is the amount your two-wheeler insurance will pay you if your bike suffers from irreparable damage in an accident or if it gets stolen. Many people often opt for a lower IDV to reduce their two-wheeler insurance premium but, this is a mistake as you may end up getting a very low compensation if things go awry.

  1. Are there any tips to follow to qualify for a lower premium on my insurance?

The premium should not be the sole deciding factor when buying two-wheeler insurance. Never go for the cheapest premium as you may end up with insufficient coverage. That being said, you can consider fitting your bike with anti-theft devices as doing so may qualify you for a reduction on your premium. Also, remember to ask for the No Claim Bonus (NCB) when you renew your bike insurance every claim-free year.

  1. What are the documents generally required when filing for a claim?

The exact answer to this question may differ between insurance providers. However, the documents that are generally required include –

  • Filled insurance claim form
  • Copy of bike registration papers
  • Proof of repair costs
  • Copy of FIR (in case of theft)
  1. What do I need to know about the deductible in my policy?

The deductible is the amount that the vehicle owner needs to pay before the Janitorial Cleaning Services Insurance company can honour a valid claim. There are two parts to the deductible – compulsory and voluntary. The compulsory value is determined by the IRDAI. The voluntary value can be set by you; the higher the voluntary deductible, the lower your insurance premium. However, make sure to do your calculations properly before selecting the deductible.

  1. Are there any exclusions to my two-wheeler insurance plan?

Yes, there generally are exclusions to any two-wheeler insurance plan. For instance, insurance providers do not honour claims that are raised in the following scenarios:

  • If the insured person was riding under the influence of alcohol or drugs
  • If the insured person was riding without a valid driver’s licence
  • If the insured person was involved in criminal activity at the time of the accident

There may be further exclusions that can vary between insurance companies and policies selected.

Make sure to read your two-wheeler insurance policy fine print well before buying coverage. We hope this article has helped you. Ride safe!

read more

Does Your Insurance of Bike Cover Damages Due to Natural Calamities?

Most of us know that we can file a claim in case our bike gets damaged in an accident. But what to do if it gets damaged due to a natural calamity?

While a bike insurance plan covers accidental damage, it also provides cover against natural calamities. Read on to know more about it.

Mostly, a natural calamity occurs without warning. It can cause a lot of damage to your house and other assets. One such asset that can get severely damaged is your bike. Repairing it might require a lot of money. However, two-wheeler insurance can come to your rescue in such a situation.

Bike insurance provides various benefits to cover against natural calamities. In case of a natural disaster, the likelihood of your bike getting damaged is high. However, if you have two-wheeler insurance, then you can get financial assistance to repair your bike. With the help of a bike insurance plan, you can get protection against natural disasters such as cyclones, floods, earthquakes, storms, etc.

How to File a Claim in Case of a Natural Calamity

  • If your bike gets damaged due to a natural disaster, you need to inform your insurance provider immediately. Make sure you have your policy number and bike registration details with you.
  • Try to click detailed pictures of your bike, which explains the extent of the damage. Send these pictures to the insurance company.
  • The insurer might appoint a surveyor to investigate the damages.
  • After the investigation, the insurer will inform you if the claim is approved or rejected.
  • If the claim is approved, then you can initiate the repair work.
  • If you get your bike repaired at a network garage, then you can avail the cashless facility. As per this benefit, the expenses will be directly settled by the insurer.
  • If you get your bike repaired at a non-network garage, then you will have to pay for the expenses first. The insurer will then reimburse the amount after you submit the documents like receipt of repairs done.

Reasons Why a Claim Can Get Rejected

A claim can get rejected due to multiple reasons. Here are some of the most common reasons that can lead to the rejection of a claim-

  • If you provide false information, then the insurer will reject the claim.
  • Your claim will be rejected if your bike insurance is inactive.
  • You need to inform your insurer within the stipulated timeframe. If you don’t notify the insurer within that timeframe, your claim can get rejected.
  • Your claim might get rejected in case you make any modifications to the bike without informing the insurer.
  • If you repair your bike before inspection, then your claim can get rejected.
  • If the surveyor suspects that you have intentionally damaged your bike, then the insurer might delay or reject your claim.

Insurance of bike provides a variety of benefits such as cover against accidental damages, protection against natural disasters, etc. By purchasing a two-wheeler insurance plan, you can protect yourself from the repair costs.

read more
1 2
Page 2 of 2