Friday, November 28 2025
Source/Contribution by : NJ Publications

As our parents age, their health becomes one of our top priorities. They have spent years caring for us, ensuring our wellbeing, and now it becomes our responsibility to care for them. One of the most practical and loving ways to do that is by ensuring they have the right health insurance coverage.

Let’s understand this in detail - and by the end, you’ll see that health insurance for parents is a wise and caring investment.

The Reality of Ageing and Rising Healthcare Costs

As people age, their health needs grow. Medical problems like diabetes, hypertension, heart diseases, joint pain, cataracts, or other chronic conditions are more common among older people. Even routine check-ups, tests, or medicines can add up to significant costs.

According to various health surveys, the cost of hospitalization in India has been increasing by 10–15% every year, and the cost of medical treatment for senior citizens can be even higher.

For example:

• A simple heart procedure can cost ₹2–4 lakh in a mid-range hospital.

• A knee replacement can go up to ₹3 lakh or more.

• A week’s hospital stay due to a viral infection can easily exceed ₹50,000–₹1 lakh.

• Modern medical technology (like robotic surgery, advanced diagnostics, etc.) is expensive, and insurance ensures your parents can access the best available care without compromise.

Without insurance, these expenses can drain savings quickly. Most families end up using their retirement corpus or children’s savings to pay for emergency medical needs.

Health insurance for parents helps you avoid such financial stress. It ensures that quality healthcare is available when they need it, without worrying about the cost.

Why You Cannot Rely on Self-Funding

Some people believe they have enough savings to handle an emergency. While admirable, this strategy carries massive risks:

• Unpredictable Severity: Can your savings handle multiple severe illnesses, or illnesses affecting both parents?

• Inflation Erosion: Medical costs are rising so fast that what seems adequate today may be insufficient five years from now.

• The "Double Loss": You not only pay the medical bill but also lose the opportunity for that money to grow (foregoing future interest/returns).

Health insurance is a superior mechanism for risk pooling and risk transfer. You transfer the financial risk of a medical catastrophe to the insurance company in exchange for an affordable premium.

Why It’s a useful Investment

Health insurance for parents is an investment in their health, comfort, and dignity. Here’s why:

• It safeguards lifetime savings: Without insurance, even a single hospitalization can wipe out years of savings.

• It ensures better medical care: Insurance allows access to quality hospitals, advanced treatment, and timely care.

• It reduces financial dependency: Parents don’t have to depend on children for medical bills; it helps maintain their independence.

• It offers tax benefits: Under Section 80D of the Income Tax Act, you can claim deductions on premiums paid for parents’ health insurance (up to ₹50,000 for senior citizens).

So, the money you pay as premium today can save you from paying lakhs tomorrow - a classic example of a wise investment.

The “Cheapest Plan”

When buying insurance, many people look for the lowest premium plan. However, the cheapest plan is not always the best.

Low-cost plans may have:

• Lower coverage limits (e.g., ₹2–3 lakh sum insured, which may not be enough).

• High co-pay clauses, A cheap plan might have a 50% co-pay, meaning for a ₹5 lakh bill, you still pay ₹2.5 lakh! Out of your pocket. This defeats the purpose of the insurance.

• Room rent restrictions that limit your hospital room eligibility.

• Exclusions or long waiting periods for pre-existing / other diseases.

Instead of choosing based on price, focus on value and suitability. Your goal should be the right coverage, not just the lowest premium.

Why Consulting an Insurance Advisor Matters

Health insurance can be complex - with technical terms, varying benefits, and hidden conditions. This is where a qualified insurance advisor becomes invaluable.

An experienced advisor can:

• Assess your parents’ health condition and needs.

• Compare plans across insurers for the best combination of benefits and cost.

• Explain policy terms in simple language.

• Help you avoid common mistakes, like choosing too low a sum insured or missing important add-ons.

• Guide you during claims, ensuring a smooth process when you need it most.

In short, your advisor acts as a bridge between you and the insurance company - making sure you get the right protection without confusion or regret.

New & Useful Benefits for Sr. Citizens

Easy to get a new policy - Earlier, If a senior citizen had a pre-existing disease like diabetes / hypertension. It was very difficult to get a health insurance policy. But now, insurance companies are providing adequate & comprehensive health insurance coverage for seniors with PEDs.

Waiting Periods - Earlier, senior citizen health plans had long waiting periods-sometimes up to 4 years-for pre-existing diseases like diabetes, hypertension, or heart problems. That meant you couldn’t claim for those conditions for several years after buying the policy. Now, many insurers have reduced this waiting period to just 1, 2 or 3 years, and some even offer coverage from day one. This is a big relief because most seniors already have some ongoing health conditions.

Preventive Health Check-ups and Wellness Benefits - Previously, health insurance was seen only as a “hospitalization cover.” But today’s health insurance plans encourage preventive care. They offer annual health check-ups, wellness programs, and discounts for maintaining healthy habits. This helps seniors stay proactive about their health and detect problems early.

Restoration of Sum Insured - You get more insurance coverage when you need the most.

No medical test required to buy - Earlier, there used to be mandatory medical tests to get the policy. Now some insurers offer policies without pre-medical tests for seniors. 

Summary

Health insurance for your parents is more than a financial product - it’s an expression of love and responsibility. It says, “I’ve got you covered, no matter what.”

Premiums may seem high as age increases, but the cost of not having insurance can be far higher - both emotionally and financially.

So, instead of viewing it as an expense, see it as:

• A gift of health security,

• A shield against medical inflation, and

• A smart financial decision for your family’s future.

Before making a choice, always consult a trusted insurance advisor who can help you find the right plan based on your parents’ age, health, and budget. Remember - the right plan today can be a lifesaver tomorrow.

Don’t wait for a medical emergency to make the decision. Talk to your insurance advisor today and secure a healthier, worry-free future for your parents.

Friday, October 24 2025
Source/Contribution by : NJ Publications

Owning a car is more than just a convenience-it is an investment and, for many, a dream fulfilled. But with this ownership comes responsibility, one of the most important being car insurance. As a car owner in India, understanding the nuances of your policy is crucial for your financial security and peace of mind.

Despite being mandatory in India under the Motor Vehicles Act, many car owners still view insurance as a burden or as something that doesn't add much value. This is largely because of the many myths and misconceptions that circulate around car insurance.

Let's debunk some of the most common myths and get to the truth about car insurance.

Myth 1: "I drive carefully, so I don't need car insurance."

This is perhaps the most dangerous myth of all. While being a cautious driver is commendable, It doesn't stop accidents from happening. Even if you're the safest driver on the road, you can't control the actions of others. A sudden lane change by another driver, a stray animal on the road, or a simple mechanical failure can lead to a collision. More importantly, car insurance isn't just about accidents. It also covers damages from natural disasters like floods and landslides, thunderstorms, and man-made incidents like riots, malicious damage and fire.

Furthermore, third-party liability insurance is legally mandatory in India under the Motor Vehicles Act, 1988.Driving without this basic coverage can lead to heavy penalties, suspension of your driving license and even imprisonment. Think of insurance as a safety net, not an expense. It's there to protect you from the financial fallout of an unforeseen event, saving you from potentially high repair costs or legal liabilities. It's an affordable annual premium that provides a huge shield against the unknown.

So, whether you drive carefully or not, insurance is a necessity, not a choice.

Myth 2: "Insurance companies apply a lot of deductions during a claim."

Many people believe that when you file a claim, the insurance company will find a way to reduce the payout to a very low amount. This isn't true. While there are deductions, they are often a standard part of the policy and are applied transparently.

The most common deduction is the depreciation on parts. Over time, the value of your car and its parts depreciates.An insurer won't pay the full cost for a part that has been in use for years. However, you can opt for a "zero depreciation" or "bumper-to-bumper" add-on cover. This special cover ensures that no depreciation is deducted from the cost of replacing plastic, fibre, or metal parts in case of a claim.

If you understand your policy and choose the right add-ons, you can significantly reduce or eliminate these deductions. Insurance provides financial support when you need it the most.

Myth 3: "It's only useful when the car is brand new."

Many believe that insuring an older vehicle doesn’t make sense because the market value is lower. While a new car has a higher market value and thus higher repair costs, older cars are also at risk.

Older cars are still at risk of accidents, theft, or damage from natural disasters. Repairing or replacing major parts can still cost a significant amount.Also, an older car might be more prone to mechanical issues, and while standard policies don't cover general wear and tear, they still protect against accidents, theft, or damage from fire. Moreover, third-party insurance is mandatory regardless of the car's age. Car insurance is about protecting your financial liability and your asset, no matter how old it is.

Myth 4: "A third-party policy is enough."

A third-party vehicle insurance policy is mandatory by law in India. It covers damages to a third person's property, or bodily injury or death to a third person caused by your car.However, it does not cover any damage to your own car.

For example, if your car is damaged in an accident, stolen, or destroyed in a flood, you won't receive any compensation under third-party insurance.

Also, If you're involved in an accident that's your fault, and your car is damaged, you will have to bear the entire cost of repairs yourself. This could run into lakhs of rupees for even a minor collision. A comprehensive policy, on the other hand, provides a much broader safety net.It includes third-party liability and also covers own-damage to your vehicle due to accidents, theft, fire, and natural disasters. While a third-party policy protects you from legal trouble, a comprehensive policy protects your wallet. The small increase in premium for a comprehensive policy is a small price to pay for the extensive protection and peace of mind it offers.

So, while a third-party policy keeps you legally compliant, only a comprehensive policy truly safeguards your investment.

Myth 5: "I can only buy from the car dealer, not from any broker or agent."

Many new car buyers assume they must purchase insurance through the dealer at the time of purchase. It's a myth, you have the right to choose your insurance provider. The dealer-offered policy might not always be the best or most cost-effective option for you.

You can purchase your policy from a wide range of sources, including insurance brokers, agents, etc;. Brokers and agents can also help you understand the finer details of policies, ensuring you make an informed choice. They will suggest more suitable add-ons (like zero depreciation, roadside assistance, or engine protection), and you can expect better service from your insurance advisor than the dealer.

Why It Matters

Falling for these myths can lead to under-insuring your car, unnecessary financial burdens, or even legal troubles. By understanding the truth about private car insurance, you not only protect your vehicle but also secure peace of mind.

Here are a few quick tips to keep in mind:

• Always read your policy document carefully.

• Opt for add-ons that suit your needs and driving conditions.

• Keep track of renewal dates to avoid policy lapses.

• Drive responsibly, but also stay prepared for the unexpected.

Conclusion

Car insurance is more than just a legal formality-it is a financial safety net and a critical part of responsible car ownership. Whether your car is brand new or a few years old, whether you drive carefully or face the chaos of Indian roads daily, the right insurance policy ensures you are protected against unforeseen losses.

Don't let myths cloud your judgment. Choose the right coverage, and enjoy peace of mind - knowing that both you & your car are safeguarded. After all, your car is not just a machine-it's your companion on countless journeys. Make sure it is protected the right way. Safe driving!

Friday, September 26 2025
Source/Contribution by : NJ Publications

In today's uncertain world, securing your family's financial future is not just wise—it's essential. One of the most effective ways to do that is through term life insurance. Term insurance is a pure life cover that offers a large sum assured at relatively low premiums. It is designed to protect your loved ones in the event of your untimely demise. A promise to your family that is simple, yet powerful. 

This payout can be a lifeline, helping them manage daily expenses, clear debts, and secure their future dreams. This article serves as a guide, highlighting five essential things to remember before you make the right decision.

1. Assess Your Needs - Risk Cover Amount

One of the biggest mistakes people make is underestimating their life cover needs. The primary purpose of term life insurance is to provide financial support to your family in your absence. Hence, choosing the right coverage amount—also known as the sum assured—is crucial.

A ₹1 crore life insurance cover might sound impressive, but is it enough to sustain your family's lifestyle for the next 20-30 years? How much is adequate? As a general rule, your life insurance should be at least 15 to 20 times your annual income. But that's just a thumb rule. Consider your existing liabilities (like home or car loans), future expenses (children's education, marriage), day-to-day living expenses, and inflation. An insurance sales person can help you with this calculation, but understanding the basics empowers you to make a sound decision.

For instance, if you earn ₹10 lakh per year, a life insurance cover of at least ₹1.5 crore can be adequate. However, if you have a home loan of ₹40 lakh and two children whose future education would cost ₹10 lakhs, you should opt for a cover of ₹2 crore.

Remember: Life insurance policy is not just to clear your loans but to replace your income. Don’t underinsure yourself just to save on premiums. Your family’s future should not be compromised due to inadequate planning.

2. Select the right policy tenure

Another important factor is the duration of the term plan. Ideally, the policy should cover you until you reach financial independence—that is, when you have enough assets or savings that your dependents won’t need an insurance payout if something happens to you.

A term policy is a contract for a specific period, and if you outlive it, you don't receive any payout. The ideal term should cover your primary earning years and key financial responsibilities.

Most people in India opt for coverage until age 60 or 65, coinciding with retirement. However, some term plans allow coverage up to the age of 75 or even 85. Be mindful, though—longer tenures come with higher premiums.

How to determine this - is by asking yourself:

• When will your children become financially independent?

• How long will your family depend on your income?

• Will you have significant savings by a certain age?

Choose a policy term that adequately matches your life stage and responsibilities. This ensures that even if something were to happen to you, your family would have a safety net until they can stand on their own feet.

3. Do Not Hide Health or Lifestyle Information

Life insurance is based on the principle of "utmost good faith." This means you must disclose all relevant information to the insurer, especially regarding your health or lifestyle. Always be honest while filling out your proposal form. Hiding a pre-existing medical condition, smoking/alcohol habit, any other health-related information, existing insurance policy or a rejected proposal, can impact your new policy.

Be honest and transparent. If you're a smoker, declare it. If you have a history of diabetes or high blood pressure, mention it. Insurance companies assess your risk profile based on the information you provide. While it might slightly increase your premium, it guarantees that your family's claim will be honored when they need it the most. Hiding facts may lead to denial of claims later, defeating the entire purpose of buying insurance. 

4. Expand the cover with add-ons/riders

Basic term life insurance covers death due to natural or accidental causes. But additional protection can be obtained through riders—add-on benefits that enhance your base policy cover for a minimal additional premium.

Common riders include:

• Critical illness rider: Pays a lump sum on diagnosis of serious illnesses like cancer, heart disease, etc.

• Accidental death benefit rider: Pays an extra amount if death occurs due to an accident.

• Waiver of premium rider: Waives future premiums in case of permanent disability or diagnosis of critical illness.

5. Consult a Professional 

While term life insurance may appear simple, making the right choice requires professional guidance. The complexities of identifying the need for life insurance & process of getting one requires help from an expert. Consulting an insurance sale person can help you:

• Customized Needs Assessment: An advisor will go beyond the basic calculations and understand your specific family dynamics, income patterns, and future aspirations to recommend a policy that is truly customised to your needs.

• Understand Policy Terms & Conditions: Insurance policy documents can be dense and filled with technical jargon. An expert can help you understand the exclusions, riders, and terms and conditions, ensuring you are fully aware of what you are buying.

• Claim Settlement Assistance: In the unfortunate event of a claim, an advisor can provide crucial support to your family, helping them with the documentation and processes, and ensuring a smoother settlement experience.

• Informed Decision Making: An Insurance sales person can help you compare different policies from various insurers based on their policy benefits, add-on riders, claim settlement ratio, empowering you to make an informed decision rather than just choosing the cheapest option.

Summary

Buying a term life insurance policy is a long-term commitment and a crucial step towards securing your family's financial future. By adequately assessing your life cover, choosing the right policy term, being transparent about your health, getting rider/add-ons, and most importantly, consulting a professional, you can ensure that the policy you buy provides the security and peace of mind you intended it to. 

However, while affordability matters, don't make price (premiums) the only deciding factor.

Disclaimer: Mutual Fund investments are subject to market risks, read all the scheme related documents carefully.