Insurance on r/IndiaInvestments Wiki

Should I invest in this LIC policy?

Mon, 01 Jan 0001 00:00:00 +0000

Should I invest in this LIC policy?

LIC doesn’t create money out of thin air. Over-simplified & shortened description of how it works: It collects premium from policyholders, then it invests that in market-linked securities (bonds, stocks, CP, CD, commodities etc.). Eventually, it pays out policyholders after keeping some cut for itself.

Unlike bank or post-office deposits, LIC returns are not legally guaranteed. Govt. of India is a major stakeholder in LIC, but that does not mean it’s a major stakeholder in your future. Govt. would do its best to prevent LIC from going under. But your returns come at the cost of LIC’s income - when those two are at odds with each other, Govt. would pick LIC over your financial future.

Opinions on investing in smart wealth plan by bank?

Mon, 01 Jan 0001 00:00:00 +0000

Opinions on investing in smart wealth plan by bank?

This is not that different from the query on LIC. Bank / Insurance company would take your money, invest in some market-linked securities, deduct insurance related charges; and give you back peanuts. Upside is limited, but bank would sell you on the idea that downside is also limited.

As a rule of thumb, any policy or plan sold by bank, especially one that has a smart in its name, can be avoided without further consideration.

Up to what age should I take term cover?

Mon, 01 Jan 0001 00:00:00 +0000

Up to what age should I take term cover?

What really is term cover?

A term cover is an income replacement plan. It should be covering you, till you’ve dependents who’re reliant on your income, and miss it if something were to happen to you.

This money would never be yours. It’s meant for your family, in the event of something highly unlikely.

How does it matter?

It matters because for most people with income from salary or contract work; it’d be hard to sustain their income after age of 55-60.

Do I need my own health insurance? Employer already has group policy

Mon, 01 Jan 0001 00:00:00 +0000

Do I need my own health insurance? Employer already has group policy

Intro 🍁

According to IRDA (Insurance Regulatory & Development Authority) of India

A group insurance policy gives you advantages of standardized coverage and very competitive premium rates

The risk for a group insurance provider is spread over a larger population, hence making the premiums cheaper.

Group covers have lot of benefits.

Features ✨

Salient features of Group health insurance:

Should I take top-up policy or super top-up?

Mon, 01 Jan 0001 00:00:00 +0000

Should I take top-up policy or super top-up?

Introduction ✨

Before we get to the answer for this, we need to define and establish common understanding around some domain specific terms.

A Base Policy, which could either be a group, an individual, or a family floater policy, covers you and/or your family members up to the Sum Insured.

This is for any hospitalizations; for a minimum period of 24 consecutive in-patient care hours, except for specified procedures/treatments where such admission could be for a period of less than 24 consecutive hours.

Is it worth paying extra premium for term insurance?

Mon, 01 Jan 0001 00:00:00 +0000

Is it worth paying extra premium for term insurance?

Intro 💫

When buying a term cover, anyone would want to do their best to ensure their nominee(s) can claim the cover amount in their absence, if the worst were to happen. But it’s easy to let our emotion guide us, what should be a rational process.

With various restrictions in place by IRDA (Insurance Regulatory and Development Authority), there aren’t that many advantages of paying a premium to large reputed companies for their insurance cover.