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SixinsurancepoliciesyoushouldavoidbuyingFullStoryTheEconomicTimes
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Sixinsurancepoliciesyoushouldavoid
buying
BySanjeevSinha,ECONOMICTIMES.COM|31Dec,2014,01.51PMIST

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READMOREONUlips|TheFinancialPlannersGuildIndia|SubhabrataGhosh|sebi|ITprofessionals|
insurancepolicy|financialplanning

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SPOTLIGHT
PerksforGlobalIndians

Everyassethasaneconomicvalue,but
afteritslifetime,theassetneedstobe
replacedwithasubstitute.However,there
canbeanunfortunateeventlikean
accidentwhichmaydestroytheasset
(includinghuman)earlyormakeit
Thesimpleruleis:allthosethings,whichwillcauseyou
incapableofgeneratinganyincome.For
economiclosstoreplaceorreinstate,shouldbeinsured.
reducingthefinancialeffectofsuch
adversesituations,insurancecomesinto
ETSPECIAL:
thepicture.So,thesimpleruleis:allthose
Saveprecioustimetrackingyour
investments
things,whichwillcauseyoueconomicloss
Lifein2015
Startupsin2015
Education
toreplaceorreinstate,shouldbeinsured.
"Butpracticallyit'snotpossiblebecauseifyoutrytoinsureeverythingunderthesun,you
willbeleftwithnomoneyforyourlivingexpenses&financialgoals.Oneshould,
therefore,considertwothingsbeforetakinganyinsurancetheprobabilityofanevent&
itsfinancialimpactonyourlife,"saysHemantBeniwal,Director,ArkPrimaryAdvisorsPvt
Ltd(aSebiregisteredinvestmentadviser).

GlobalIndians'moneytobe
treatedaslocal

Job,education,startups,tech
14globalstartupslikelyto
Itcanbesimplyunderstoodbythisgrid:
whattoexpectin2015?
makeitbigin2015

HRDminurgesPreztose
DineshSingh'sexplanati

Apanelsetupbythefinanceministryand
cochairedbyDIPPisfinalisingthe
contoursoftheinvestmentplan,saidtwo
officials.

Expectshareholdermeetingstobenoisier
andminorityinvestorstoinfluencemore
corporatedecisionsthaneverbeforein
2015.

TheHRDministrytookcognisanc
whitepaperreleasedallegingfin
andadministrativeirregularitiesin
varsitysfunctioning.

Foreignbanksawaitmandateonlocal
arms
GovttomergePIOandOCIcardsmay
amendIndianCitizenshipAct

MarcLore,formerlytheCEOofQuidsiis
workingonunveilinganewecommerce
websitecalledJet,whichisrumoredtobe
anAmazonkiller.

Indianslikelytowitness2celestial
15hotstartupsfor2015
Sanskritteachershopingfor'ac
A:HighProbability,HighFinancialImpacttypeshouldbecoveredwithoutanysecond
eventsin2015
underModigovernment
Tata,Reliance,Airtel,Infosyscollaborate
thoughte.g.healthinsurance&motorinsurance.
Destinationsfor2015:Milan,Cuba,
withstartupecosystem
Delhischoolstoldtoputupnur
QueensandMore
admissioncriteriaonwebsite

B:LowProbability,HighFinancialImpacttypecanhaveasignificantfinancialimpact.
Soshouldbeconsideredafterlookingatpersonalsituations&assetse.g.term
insurance,accidentalinsurance&criticalcareinsurance.
Fromourpartners
HLTechnologytransformingBFSIspace

C:HighProbability,LowFinancialImpactInthiscaseriskshouldberetainedor
transferredtoinsurancecompaniese.g.extendedwarranties.

Technologyvitalforbetterhealthcare
TheBigBangRetailShift
TechnologyandRetail:Asuccessfulpartnership
Transformationalroleoftechnologyinvocational
education

D:LowProbability,LowFinancialImpactSuchinsurancecanbeoutrightlyignored,like
creditcardinsurance.
Sometimestheprobabilityofaneventmaydependonyourjobprofileorindividual
situation.TakethecaseofITprofessionals,forinstance.Theysitinfrontoftheir
computersorlaptopsformostpartoftheday.Theprolongedsittingleadstoproblems
suchasbackpain.Thismeanstheyhaveagreaterriskofphysicalhealthproblemsand
sotheywillbemoreconcernedaboutthem.Nowconsideramanufacturingcompany.

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31/12/2014

SixinsurancepoliciesyoushouldavoidbuyingFullStoryTheEconomicTimes

Theprobabilityofanaccidenttakingplacethereishigh.So,accidentalinsurancemaybe
essentialforthepeopleworkingthere.
Stilltherearesomeinsurancepolicieswhichpeopledon'tneedinnormalcircumstances.
Herewetakealookatsomeofthem:
InsuranceforInvestmentPurpose:Insuranceisaninvestmentisamythwhich
companiesoragentshaveplayedaroundwithtomaximizetheirearnings.Sinceweare
usedtolookingatreceivingareturnoneverypennywespendinourlifetime,agentsor
companiespushexpensiveproductswithreturnmaximizationstrategies.Thisleadsusto
buythewrongproducteverytime.
Most
Read

Most
Shared

Therefore,"youshouldnevermixinsuranceandinvestments.Thisisalsoapplicableon

Most
Commented

investmentproductswhichofferinsurancebenefits.Likesomemutualfundsofferthe

Eighthabitsoffinanciallysuccessfulpeopleyou
shouldimbibe

benefitofhealth&lifeinsurance,ifyouinvestintheirschemes.Theseoffersshouldbe
ignoredastheyalwayscomewithsomehiddenT&Cofexitloads&expenses.Also,

Sixwaystohelpyousavetaxnexttimeyoupayit

ignorehealthinsurancepolicieswhichhaveinvestmentcomponentsandgoforplain

Sevensmartwaystoreduceloanburdenwithout
stressingyourwallet

vanillahealthinsuranceproductsinstead,"explainsBeniwal.

Howtomakethemostofinvestmentopportunities
in2015

LifeInsuranceforChildren:Allparentswanttoensuretheirchild'sfuture.Andtodo

HowtomakethemostofyourEmployees
ProvidentFund

Butbuyingapolicyonchild'snameisnottherightsolutionastheobjectiveofinsurance

this,somewanttobuyachildpolicywhichcanmeettheirchild'sfinancialrequirements.
istosupportyourdependentsfinanciallywhenyouarenomore.Hence,theinsurance
hastobeinyournameratherthanthatofyourchild.

NewsinPics

1/20

Also,"childplansbeitULIPsortraditionalonesarehighlycostlyandcanfallshortof

Dhoniquitstestcricket:Some
interestingfacts

inflationadjustedcorpusatthetimeofneedforeducationormarriage.Evencoverage
mayfallshortofrequirement,takingintoconsiderationthehighcostofprimaryeducation,
leaveasidehighereducation,"saysSubhabrataGhosh,CertifiedFinancialPlannerand
MemberofTheFinancialPlanners'GuildIndia.
ExcessAccidentalInsurance:Accidentalinsuranceisamusthaveinsurance,butin
Indiatherearesomelimitationsintheproduct.Thebiggestflawisthatinmostofthe
casesaccidentaldeathisthebasepolicy,whichisalreadycoveredintheterminsurance.
Soifsomeonealreadyhassufficientlifecoverthroughatermplan,thisinsuranceisnot
required.Alotofpeoplealsooptforaccidentaldeathbenefitriderincaseoftraditional
insurancepolicies.Theyshouldchecktheirtotallifecoveragebeforetakinganydecision.
Ininternationalmarkets,dismembermentpolicycanbeboughtwithaccidentaldeath
benefit,whichisnotthecaseinIndia.

SlideShows

WeddingInsurance&FlightInsurance:Bothofthesefallunderthelowprobabilitybut
highimpactcategory.Flightinsurancecanbeclearlyignoredasthatwillbecovered
underlifeinsurance.Weddinginsuranceisanewcategoryingeneralinsurance,which
coverslossduetoweddingcancellation,damageofproperty,personalaccident&public
liability.

HondaAmazevsHyundai
XcentvsMarutiSwiftDzire
Diesel
Wecomparethefullyloadeddiesel
versionsofeachtofindout!

HyundaiGrandi10versus
MarutiSuzukiSwift

"Accidental&propertydamageisalreadycoveredunderanycomprehensiveaccidental
insuranceandhouseholderinsurancepolicy.Soaseparatecoverisusuallynotneeded
forit.It'sweddingcancellation&publicliability,however,whichcanhaveasignificant
financialimpact.ButinIndiapeoplearemoreaccommodatingincaseofcancellationof
aneventincomparisontothewesternworld.Addtoitthelistofexclusioninsuch
policies,andweddinginsuranceisstillnotinaprioritylist,"informsBeniwal.

TheHyundaiGrandi10isgood.No
doubt.But,isitbetterthanthe
popularandfuntodriveM...

MarutiCiazvsHondaCity:
PetrolComparisonReview
MarutihasbighopesfortheCiaz,
notjustasacarbutasagateway
intomorepremiumfuture...
MoreSlideshows

ET PANACHE
2015:Bollywoodgearsupfor
majorreleases

Email,Internetremaintop
workplacetools:Study

CreditCardInsurance:Howmanytimesyoulostyourcreditcard?Evenifonce,what's
thefirstthingthatyoudid?Infact,youaskedtoblockyourcardandthecardcompany
issuedanewcard.Soratherthantakinginsuranceforlossofcreditcard,makesureit's
notlostorratherkeeplesserlimitcardsinyourwallet.
Thereisanotherissuetoo.Wheneveryougetyourcreditcardfromabankorfinancial
institution,theyusuallystartpitchingalotofinsurancepolicieswhicharemarketedas
'especiallyavailableforourcardholders'healthinsuranceandaccidentalinsuranceare
themostcommon.Inmostofthecases,eitherthesepoliciesareexpensiveorcomewith
alotoflimitations.Moreover,insuranceinthesepoliciesmaynotbetransferredifyou
don'twanttocontinuewithyourcardcompany.So,whytogetstuckwithsuchpolicies?

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31/12/2014

SixinsurancepoliciesyoushouldavoidbuyingFullStoryTheEconomicTimes
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