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What is the best procedure for choosing health insurance policies for a family? Rajni Billa's answer: To choose health insurance policy for your family: 1. Group your family’s adults in such a way that people with high age difference are kept in separate groups, as the premium is based on age of eldest member in the group. 2. For senior citizens in family, choose separate p.....

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Premium paid for health insurance for both self (+family) as well as parents, is eligible for tax-saving under section 80D.

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नव वर्ष का सही अर्थों में स्वागत तभी माना जाए जब हम अपने आपको पुराने विचारों से स्वतंत्र करें और नवीन कार्य कलापों को अपने जिंदगी और कार्य क्षेत्र में जगह दें क्योंकि विचार से ही विकास जुड़ा हुआ है।
आप सभी के लिए यह नव वर्ष 365 नये विचारों का संवाहक बने मैं इसी आकांक्षाओं के साथ आप सभी को और आपसे जुड़े सभी परिवारों को नव वर्ष की शुभकामनाएं प्रेषित करती हुँ

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TOI: Here is why Indians are retiring poor with more debt and no pension

Indian families borrow and invest in very different ways than families in the US, UK or Germany, and even those in China. The depth of these differences, across all ages and economic levels, is revealed in a recent report on household finances prepared by the RBI.

It shows that a major proportion of household wealth in Indian families is kept as real estate or gold, even among younger families, and even by the poorest 40 per cent of population. This is not the case in other countries. Institutional borrowings by Indian families are low in early life and go on increasing leaving many retired persons with a debt overhang, unlike advanced countries where mortgages reduce after retirement.

And, pensions are virtually absent in India while in most Western countries they are a major asset in old age. More than three quarters of family wealth is invested in real estate (land and dwelling units) by an average Indian family compared to just 44 per cent in the US, and 37 per cent in UK and Germany. In China, about 62 per cent of wealth goes into real estate.
Even among the poorest 20 per cent of the population, 59 per cent have some land or dwelling unit in India, while in China, the similar proportion is 61 per cent. But in the rich countries a minuscule share of the poorest quintile has real estate — 4 per cent in US, and less than 1 per cent in UK and Germany.
This may sound bizarre considering India's poverty but here is the thing: average value of the main residence in the poorest Indian households is Rs 22,000, while it is Rs 15 lakh in Germany and Rs 3.7 lakh in the US. The RBI report is talking of proportion of different types of family wealth. Their absolute values are obviously very different.

Besides real estate, the other main target of investment in India is gold. About 11 per cent of family wealth goes into buying gold. Families in other countries spend virtually nothing on this, with the Chinese spending a mere 0.4 per cent of their wealth on gold. Indian families also have gold loans amounting to about 8 per cent of their total liabilities, again a feature not found anywhere else.

"Most households use debt to cope with emergency expenses, such as hospitalisation, or property damage due to a natural disaster. The interest rates on unsecured debt are very high. Therefore, households prefer to put their savings in real estate and gold, which can also be used as collateral," RBI's Household Finance Committee chairman Tarun Ramadorai of Imperial College, London, told TOI.

Detailed data on countries drawn from various surveys is available in a paper by Ramadorai and co-authors published in 2017. Although 73 per cent of families in India have financial assets like cash, bank accounts and pension accounts, they hold very small amounts adding up to just 5 per cent of their total wealth, he added.

Medical emergencies, especially among the elderly, are one of the main reasons why families in India seek loans at usurious rates from money lenders. Such unsecured loans make up nearly 56 per cent of all liabilities for Indian families, much higher than China at 26 per cent , US (13 per cent ) and Germany (24 per cent ).

The RBI report notes that "some of these risks could be mitigated through strengthening the public provision of health and social welfare services." Indian families are also exceptional in that housing loans are low in early life and rise beyond retirement ages. In other countries such loans rise in middle age but fall off at retirement.

This happens because Indian families borrow later in life and it is customary to bequeath property to future generations who in turn look after the elderly. These traditional structures are increasingly under pressure from shifting demographic patterns, social norms, and changing economic conditions, introducing risks to economic well-being especially as households age, the report says.

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Why you must have life insurance

www.advisorkhoj.com Life Insurance article on Advisorkhoj – Why you must have life insurance. Contact Advisorkhoj 76761-76761

What are the benefits of renewing Two Wheeler Insurance?
All know that insurance of two wheelers is very essential; as well as the timely renewal of your two wheeler benefits in various ways. It makes certain the continuity in the cover and also gives the sense of security to the owner of the vehicle. It is mandatory by the law that if you have any two wheeler then it should be insured. Here we are listing some benefits of renewing Two Wheeler Insurance. These are as following:

Shield of lawful interests :
Person should be aware that the third party insurance is compulsory which entails that the plan should cover liabilities which arise out of damage or injury to a third party property or person. The renewal of the two wheeler insurance makes sure that your duties as vehicle owner are fulfilled. In addition, the cover also offered the financial assistance in case of an adverse event.

Shield against artificial perils:
Various events such as theft, strikes, accidents, burglary and various other calamities which are man made can also lead to loss of vehicle as well as damage to it. If your vehicle would be insured then it will assure that your pecuniary legal responsibility is limited as it compensates a sum insured in case of loss of vehicle or covers the prices of replacements and repairs.

Access to perks and discounts:
By making sure that the renewal of the insurance plan on time makes certain that you remain entitled for discounts like NCB (No Claim Bonus). Furthermore, if there will be a break in the plan period then it can lead to the spasm of discounts and perks also.

Shield against usual perils:
Renewing the two wheeler insurance on time make sure the continuity in the safety and security against the natural happenings like earthquake, flood, fire, storm, self ignition, landslide, cyclone, explosion and various others. It compensates towards the repair work for damages which are caused because of any of the hazards and also pays loss of life or damage to the rider owner and its inhabitants also.

Provides a wisdom of security:
If your two wheeler is covered then it provides you a sense of security and safety to ride in a confident manner. Additionally, it also saves you from the fines which were imposed by the enforcement agencies like traffic police for not carrying an applicable insurance.

Insurance Cover in foreign country:
Now a days it is a fad to cross travel in a two wheeler such as Motorcycle. Having insurance for it compensates for damages outside the Indian Territory also. During the time of immigration, 2 wheeler insurance might be obligatory in the country or in the territory you are travelling to. So, renewing on time also helps in gratifying the legal compulsions.

Apart from this, it is recommended to keep the track of validity date of the policy and renew in advance according to the timelines for saving on the added prices like inspection charges. You should also make the utilization of the discounts like NCB and deem rising your share in Voluntary Excess for getting a lesser amount of premium.

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