Team Turtlemint, Author at Turtlemint

5 best ULIP plan to invest in 2018

September 4, 2018May 11, 2021 Team Turtlemint

Unit linked insurance plans are dual benefit insurance plans. They not only provide the quintessential life insurance coverage, but also market linked returns on your invested premiums. ULIPs are, therefore, investment avenues which provide inflation adjusted returns and grows your money with the growing economy.

Nowadays, the unit linked plans which are available offer more in terms of features. They not only give you market linked returns but also loyalty additions and other benefits. That is why buying a ULIP makes for a good investment. Here are the best five ULIPs which you can consider for investments in 2018 –

1. Edelweiss Tokio Wealth Ultima
  Wealth Ultima offered by Edelweiss Tokio offers many benefits which make it one of the best unit linked plans available in the market today. Some of the main benefits include the following –
  - You have the choice of managing your investments yourself or let the insurance company manage them based on its pre-defined investment strategies
  - Systematic Monthly Plan requires monthly premiums which are affordable and also give you the benefit of rupee-cost averaging
  - Under Systematic Transfer Plan (STP) investment strategy, the gains are protected from volatile market movements
  - There is a Systematic Withdrawal Plan under which you can withdraw your fund value systematically. This helps you in generating a source of regular income
  - Guaranteed additions, loyalty additions and wealth boosters are added to the fund value besides the market-linked returns
  - The plan can be taken to run lifelong till you attain 100 years of age

1. HDFC Life Click 2 Invest
  HDFC Life is a reputed and leading insurance company. Its Click 2 Invest plan is a good plan because of the following reasons –
  - In case of death, the sum assured or the fund value, whichever is highest is paid
  - Premiums can be paid regularly, for a limited time or in one lump sum
  - There are 8 investment funds for asset allocation
  - No premium allocation or administration charges are levied under the plan

1. ICICI Prudential Smart Life Plan
  This is a child oriented ULIP plan which has an inbuilt premium waiver rider. The plan thus helps you in fulfilling your child planning need. The benefits of the plan include the following –
  - Even if the insured dies, the plan continues after the payment of the death benefit. The company pays the premium till maturity whereupon the fund value is paid
  - There are two portfolio strategies of Fixed portfolio strategy and lifecycle based portfolio strategy
  - Loyalty additions and wealth boosters are added under the plan

1. Bajaj Allianz Life Future Gain Plan
  When it comes to insurance, one cannot forget Bajaj Allianz which is one of the leading insurance companies in the insurance market. Future Gain plan offered by the company scores on various fronts which include the following –
  - Five optional riders are available for making the coverage under the plan more comprehensive
  - Top-up premiums are allowed if you want to increase your investment under the plan
  - You can choose to invest your premium yourself or invest according to the pre-defined investment strategy available under the plan
  - You can also change the investment strategies during the term of the plan

Bajaj Allianz Life Future Wealth Gain Plan
This plan is a step up from the Future Gain Plan. The plan provides enhanced death benefit and is thus a good plan. Here are its salient features –
- Two variants of the plan are available – Wealth Plus and Wealth Plus Care
- Inbuilt cancer cover is available under Wealth Plus Care
- In case of diagnosis of cancer during the plan tenure, regular income is paid under the plan. Each income is equal to the annual premium paid under the policy
- Optional riders are available under both the plan variants
- Loyalty additions and fund boosters help in enhancing the fund value
- You can choose to invest your premium yourself or choose the readymade investment strategy offered by the insurance company

All these plans promise something extra. They give insurance cover, provide market-linked returns and also provide unique benefits of guaranteed additions, enhanced scope of coverage and readymade investment strategies. So, take your pick of ULIP from this list and enjoy the benefits the plans provide.

Read more about Common terms in life insurance policy

Health Insurance- Types of Health Insurance Plans in India

August 21, 2018February 25, 2022 Team Turtlemint

The health insurance universe is large and dynamic. Apart from the all-too-important health plan which pays for your medical expenses, there are other variants of a health insurance plan as well. Each variant is designed keeping a particular need in mind. Since your health insurance needs are varied, each type of a health plan aims to fulfil the varied needs. Do you know the types of health plans available in the market and their suitability?

Let’s find out –

- Individual health insurance plans
  These are health insurance plans which cover the medical costs incurred on an individual life. These plans, thus, insure only one individual for a single sum insured.
  Suitability – Individual health plans are suitable if you do not have any dependents on you. Unmarried, young individuals can opt for this plan.

- Family floater health insurance
  Family floater health plans are those which cover the entire family in one plan. Family would mean the policyholder, spouse, dependent children and dependent parents. Many family floater plans also include dependent parents-in-law, siblings and other relations. A single policy is issued with one sum insured covering all the members. The premium depends on the number of members covered and is calculated on the age of the eldest member. All family members can use the sum insured jointly and independently.
  Suitability – Family floater plans are the most popular health plans as they cover the entire family. You should buy this type of health plan for yourself and your family members and get them insured along with you.
  Read more about What to choose family floater plan or individual policy?

- Group health insurance plans
  Group health insurance plans can be bought by a registered group covering its members. Groups like employer-employee groups, trade unions, club members, bank customers, etc. can avail a group health plan. A single policy is issued which is called the master policy. The policy covers all the group members under a single sum insured. Premium can be paid by the group itself or its members or jointly.
  Suitability – Group health plans are suitable for companies looking to provide health insurance cover to their employees as a part of their employee benefit programs. Other groups can also avail a group plan if they qualify for it.

- Senior citizen health insurance plans
  Senior citizen health plans are designed for older individuals who cannot avail normal health insurance plans. The coverage under the plan is specially designed for senior citizens with coverage for joint replacement surgeries, cataracts and other age-related ailments. The sum insured level is limited and premiums are affordable.
  Suitability – these plans are suitable for individuals who are 60 years and above. By buying this plan, such older individuals can enjoy health insurance coverage which might otherwise be not available under a normal health plan
  Read more about How to find the right health insurance plans for senior citizens

- Top-up plans
  Top-up health plans are normal health insurance plans but with a deductible or threshold limit. Only if the claim you make exceeds the deductible limit, the plan comes into action and pays the excess claim. Claims below the deductible limit are not honoured. For example, if a top-up plan of Rs.5 lakhs has a deductible of Rs.2 lakhs, claims which are more than Rs.2 lakhs would be paid. Thus, for a claim of Rs.2.5 lakhs, the top-up plan pays Rs.50,000.
  You can choose the sum insured and deductible limit when buying top-up plans and the premiums are very affordable.
  Suitability – top-up health plans are meant to increase your existing health insurance coverage without burning a hole in your pockets. Since premiums are cheap, you can buy top-up plans and choose a deductible matching the sum insured of your existing health plan. Claims up to the deductible would be paid by the normal health plan while exceeding claims would be taken care of by your top-up plan

- Super top-up plans
  Like top-up plans, super top-up plans are also normal health plans with a deductible limit. However, unlike a top-up plan, in a super top-up plan, the aggregate claims made in a year are matched against the deductible. If the aggregate claims exceed the deductible, the excess is paid. For instance, in a super top-up plan of Rs.5 lakhs with a deductible of Rs.2 lakhs, three claims are made of Rs.1 lakh, Rs.1.5 lakhs and Rs.1 lakh. The first claim is not paid. However, in the second claim, the total claim is Rs.2.5 lakhs. Since the aggregate is more than the deductible of Rs.2 lakhs, Rs.50, 000 is paid. Even the third claim is paid since the previous claims have exceeded the deductible limit.
  Suitability – super top-up plans are better if your claim frequency is higher and you want your aggregate claims to be considered.
  Read more about Why is super top-up the need of the hour?

- Disease specific plans
  These health plans cover specific diseases like heart related diseases, cancer, dengue, HIV/AIDS, etc. The plans cover treatments and hospitalisation arising out of the covered illness.
  Suitability – these plans are ideal for individuals who are suffering from a particular ailment and are unable to get health insurance coverage for such ailments.

Critical illness plans
Critical illness health plans cover major illnesses which include extensive complicated treatments and are heavy on the pockets. These plans cover a set of critical illnesses (cancer, heart attack, stroke, major organ failure, etc.) and pay the sum insured in lump sum when you are diagnosed with any covered illness
Suitability – critical illness plans are universally suitable for everyone as they cover commonly occurring critical illnesses. Premiums are low and the plan should be bought for a more comprehensive health cover.

So, choose from these types of health insurance plans based on your suitability and enjoy comprehensive health insurance coverage.

Read more about De jargonizing health insurance terms

Unit linked pension plans- All you need to know

August 13, 2018May 12, 2021 Team Turtlemint

Unit linked insurance plans became a rage among investors when they were launched. With various investor-friendly changes in the plan, ULIPs are now more in demand. Such is the popularity of ULIPs that even pension plans are offered in the unit linked version. However, many of you are unaware of the various aspects of unit linked pension plans. So, here is everything you need to know about such plans so that you can buy one for your retirement funding –

What are unit linked pension plans?

Unit linked plans are insurance plans which are developed along the lines of mutual funds. The premium collected under unit linked plans is pooled together and is then invested in different stocks and shares of the capital market. Investors can, thus, earn market-linked returns along with enjoying insurance cover and other flexible benefits. Unit linked pension plans create a corpus which is specifically designed to fund your retirement. The fund created under unit linked pension plans is used to pay annuities which create a regular source of income post retirement.

How do the plans work?

Here is how unit linked pension plans work –

You pay the premium you want to invest, choose the sum assured and the policy term
Relevant charges are deducted from the premium
The allocated premium paid is invested in a fund which is chosen by you
The fund value increases or decreases according to the market performance and the premiums paid

The benefits payable

The benefits under a unit linked pension plan are as follows –

If the insured dies during the policy term the death benefit is paid which is higher of the fund value or the sum assured. The nominee can choose to take the death benefit in lump sum or in annuity pay-outs.
When the plan matures you get various options. You get an option of receiving 1/3rd of the fund value in cash. This benefit is called commutation of pension and is tax-free. Thereafter, the remaining value is to be taken in annuity instalments. You can defer the annuity date or buy a single premium deferred annuity plan with the remaining fund value.

Charges involved

Unit linked plans have various charges which are deducted from the fund value. These charges are as follows –

Premium allocation charge – this is the first charge which is deducted from the premium amount before the premium is invested in the chosen fund
Fund management charge – this charge is deducted monthly for managing the portfolio of the fund
Policy administration charges – administration charges are incurred in servicing the policy. These charges are also deducted monthly
Mortality charge – this charge is deducted for the insurance cover provided with the plan.
Discontinuance charge – there is a lock-in period of 5 years before which the plan cannot be surrendered. If you surrender the plan during the lock-in period, discontinuation charge is levied.
Other charges – the plan might charge you for any changes in the policy. Moreover, there might be a charge for switching, premium redirection or partial withdrawals if they are not free.

(Here are 5 simple tips to buy life insurance)

Flexible features of the plan

Unit linked plans offer various flexible features which are unique to them. Unit linked pension plans are no different. Here are some of the flexible features you can find –

Switching – switching lets you change between the available funds if your investment strategy changes. Specified number of switches in a policy year is free under most plans exceeding which there might be a charge
Partial withdrawals – after the first five policy years you can withdraw a portion of your fund value. This is called partial withdrawal. Every plan has a limit on the minimum and maximum partial withdrawal
Top-up – investing an additional premium under the plan can be done through top-ups. Top-ups are allowed under some unit linked pension plans which also increase the sum assured.
Premium redirection – under this feature you can redirect subsequent premiums to be invested in another fund.

Unit linked pension plans, therefore, not only ensure a retirement income, they also grow with the economy. Moreover, the death benefit or the commuted benefit is tax-free. (Know more about the tax benefits of life insurance here). Thus, if you want to create a substantial corpus for your retirement, unit linked pension plans should be your ideal choice.

Check out our video if you wish to know more about charges in ULIPS

Top 5 insurance myths that you need to bust NOW

January 12, 2018May 13, 2021 Team Turtlemint

When it comes to insurance, most of you shirk away from it. In spite of the innumerable benefits bestowed by an insurance plan, people shy away from it. Why? The reason is a lack of knowledge. Insurance is a technical concept which escapes the understanding of many. Other than the premium cost and the benefits promised, most of you don’t want to go deeper into the concept of insurance. As they say, a little knowledge is a dangerous thing and, therefore, limited knowledge of insurance gives rise to many myths. Most of you believe in these myths and don’t buy insurance. Are your myths justified?

Of course they are not. Here are five popular myths which most of you have along with their cold hard facts. Bust these myths NOW –

#1 Life insurance is not worth the investment

When you put it this way, life insurance is not. But do you see the bigger picture? Life insurance is a tool of financial security. It secures your family financially in case you, the bread-winner, were to die prematurely (God forbid!). It, therefore, buys you financial security in case of an emergency, something which you can’t get with any other investment avenue. So stop looking at life insurance as an investment. If you want returns, look elsewhere. Life insurance is a gift of financial stability which you can give your family in your absence. When you talk about premiums, term plans guarantee such minimal rates that the benefits far outweigh the trivial amount you invest.

#2 Medical underwriting is just a formality

Is it? Then why can your claims be rejected if you lie about your medical health?

Your medical health is a very important consideration in both life and health insurance plans. It is important because of the simple reason that your health affects your longevity. If you are sick or have been sick, the insurance company undertakes a higher risk because any medical complication might cause death and a subsequent claim. That is why medical underwriting is done with utmost care. If your risk is found to be higher the company might either reject accepting your policy or accept it at higher premiums. If you lie about your medical health, your claim faces the danger of rejection. So, always fill your proposal form yourself and provide all the required medical information correctly and truthfully.

#3 Insurance companies don’t pay a genuine claim

This is a very common misconception which many individuals believe. They feel that though they pay premiums, their claims have a high risk of rejection because the company is perceived to be untrustworthy. It is not true. The insurance company cannot reject your claim if you correctly and honestly fill your proposal form at the time of buying the policy. If you provide all the required information without lying, the company knows the risk it is accepting. As such, they cannot reject your claims and are forced to pay the total claim as and when it arises.

#4 Stay-at-home parents don’t need life insurance

Don’t they? Aren’t they financially useful? Think of all the chores a stay-at-home parent does. Grocery shopping, cooking, laundry, keeping the house clean, looking after your kids and managing your entire home are not easy tasks. Stay-at-home parents multitask and complete their chores. In fact, as per an article in Economic Times, the average monthly salary of a home-maker is about Rs.45, 000 (Source:https://economictimes.indiatimes.com/news/economy/indicators/how-much-salary-should-a-homemaker-get/articleshow/61761686.cms) In the absence of the stay-at-home parent, you would have to engage the services of a maid, a cook, a personal shopper and what not. Don’t these appointments cost money? Stay-at-home parents definitely have a financial worth and they too require insurance coverage.

See how much India spends on health costs

#5 Term insurance is cheap. Why hurry?

Yes, term insurance is cheap. The premiums are peanuts compared to the benefits promised. But do you know that the premiums depend on age? Yes, as you age your premium increases. Why pay an additional premium outgo every year by delaying a term plan? Moreover, as you age you develop medical complications. These complications increase your mortality risk and your premiums are loaded to compensate for the high risk. Therefore, it is always advised to buy a plan younger.

Which of these myths do you believe in?

Bust your myths about insurance. Insurance is a financial life-saver when emergency strikes. So insure yourself against financial disasters and have a secured life. When buying insurance choose Turtlemint. You get the facility of comparing between the different plans before buying one. Moreover, Turtlemint offers you claim assistance too. So, understand the necessity of an insurance plan and insure yourself today.

Read more to know why insurance is necessary.

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The umpteen benefits of buying car insurance online

November 28, 2017May 13, 2021 Team Turtlemint

A car insurance policy has been mandated by law and so there is no escaping it. Most of you, when buying this compulsory coverage, tend to become ignorant. While the simple grocery items of everyday use are shopped with much consideration, a car insurance policy is, usually, bought in a hurry. You either buy a policy which your car dealer offers you or select one which your neighborhood agent sells. There are other policies available in the market which you conveniently ignore. Is it wise?

No, it’s not. You should compare before buying a car insurance policy. Thanks to the online media, this comparison is available right at your finger-tips. Besides providing a platform for comparison, the online marketplace also offers various other benefits which make your car insurance purchase a wonderful experience. Do you know what these benefits are? Let’s find out –

You can opt for the best all-inclusive cover

The best part about comparing and buying a policy online is that you can get a comprehensive coverage. Though the coverage features of all comprehensive car insurance policies are same, there are some unique benefits which are added to different plans. These benefits make all the difference. When you go online and compare you can find out which plan promises which benefit. You can then choose a plan whose benefit structure suits you the most. Thus, you can ensure that you get the best all-inclusive cover from your car insurance policy.

You don’t have to compromise on the IDV

The Insured Declared Value (IDV) of your car represents the maximum liability of the insurance company towards a claim. It is the fair market value of your car after depreciation. Different insurance companies calculate the IDV of your car differently. The IDV affects your premium rate. A higher IDV is always better as you can get a higher claim settlement in case of theft or total loss of your car. When you buy a policy online you can see the different IDVs offered by different plans and choose the highest one for better coverage.

You can shop for discounts

Discounts make every deal sweet, don’t they? Car insurance companies also offer various discounts to their customers. You can find out these discounts when you shop online. You can see which plans offer which discounts and what are the discount rates. You can then choose a plan which offers the highest discounts. Cool, isn’t it?

Here are the various car insurance discounts

You can customize your plan with different add-ons

Comprehensive car insurance policies offer add-ons which increase the scope of coverage. Some popular add-ons include roadside assistance, zero depreciation, return to invoice, NCB protect, etc. Many policies also have inbuilt add-ons. You can easily find the available add-ons when you shop online. This gives you the flexibility of customizing your plan’s coverage as per your needs.

Online shopping also saves your money

The best is saved for the last! The online marketplace is thriving because it always has a saving element. This is true for car insurance policies too. Different insurance companies sell different car insurance policies which have different IDVs and are, thus, priced differently. Since premium rates differ, you can find the difference when you shop online. You get to see the available policies, their coverage features and their premium rates. After comparison of features vis-à-vis premium you can buy a policy which not only gives you a comprehensive cover, but promises the best premium rates too.

Doesn’t the online medium promise you umpteen benefits? So what are you waiting for? The next time your car insurance policy is up for renewal or you are buying a new car, go online. There are insurance aggregator websites which help you compare between the different car insurance policies available in the market. Visit our car insurance page compare between the different insurance plans and buy one which is the best. So, be smart, go digital!

Afraid of your car insurance claim being rejected? Follow these steps

September 27, 2017May 13, 2021 Team Turtlemint

Your car insurance policy is a mandatory attachment with your car. You might choose to avoid accessorizing your car but you cannot choose to avoid a car insurance plan. It is legally mandatory and you face legal consequences in the absence of a car insurance policy. Besides being mandatory, a car insurance policy is also useful in times of an accident. It pays for any third party liability you might incur or any damages faced by you and your bike. However, at the time of any accident, there are a few steps which you should follow to raise a claim. How many of you know about such steps?

Very few do. Most of you don’t know how to raise a proper and valid car insurance claim. This results in rejection of your car insurance claim. Are you afraid of your insurance claim being rejected?

Don’t be. Here are some common instances of claim rejection and how you can avoid being stuck in the same:

Rejection due to non-adherence to claim process

After an accident there is a claim initiation process which you are required to follow. If you do not follow the prescribed steps or if you miss any step your claim might get rejected.

How to avoid rejection – know and follow your car insurance plan’s claim settlement process. For starters, you should inform the insurance company as soon as you face an accident and are planning to raise a claim. This intimation is necessary so that the insurance company arranges for an inspection of your vehicle. If you get your vehicle repaired without an inspection, any claim you make has high chances of rejection.

Know the process to claim your car insurance with the help of below video

Rejection due to lapsation of policy

If your car insurance policy has lapsed and you have not renewed it you can bid adieu to any possible claim settlement. A lapsed policy means that your insurance cover is inactive. If you raise a claim in a lapsed policy it would get rejected.

How to avoid rejection –A car insurance policy is an annual contract and needs annual renewals. You should renew your policy diligently every year without fail. Only if your cover is active would you be able to get your claims settled.

Rejection due to excluded damages

There is a list of exclusions in your car insurance policy. These exclusions are not paid for. For instance, if you face any damages when driving outside the geographical boundaries of India, such damages are not paid. Similarly, if you face damages when driving under the influence of alcohol, the claim is rejected.

How to avoid rejection – You should pay heed to the exclusion list given in your car insurance policy. Before making a claim know whether your claim is for a valid damage or for a damage which is excluded.

These were the possible causes of rejection. You have also been advised on how to avoid these causes. Besides these, you should also try and become a ‘good customer’ for your insurer. If you are a good customer you would have a good insurance history with your insurer which would build your rapport. To be a good customer you should:

Avoid making small claims. When you make any claim you lose out on the accumulated No Claim Bonus discount available on your renewal premiums. So, when claims are of a smaller amount, try and pay them from your own pockets. Do not raise a claim and save your NCB from getting lost.
Renew your policy on time. As stated earlier, on-time renewals are very necessary because a lapsed policy does not settle claims. On-time renewals also have other benefits. Your NCB discount is protected and you can also avoid the hassle of inspection of your vehicle which happens when the policy lapses.Read more about Car Insurance terminologies you should know .
Carry important claim-relevant documents at all times. Your Insurance Certificate, PUC certificate and driving license are important at the time of a claim. You should always carry them with you whenever you are driving.Read more about what documents to carry when you are driving your car
Install safety devices in your car. Devices like ABS, anti-theft mechanisms, etc. help you lower your claim. Moreover, you should follow traffic rules when driving and drive safe. Here are some safety features in your car which you might not know.

Car insurance claims do not get rejected if you understand the claim process and make a valid claim. Your policy should be in-force so that your cover is active. Also, being a good customer not only lowers your chances of claim (which lowers the chances of rejection), it also earns you great savings. So, be a good customer, know about your car insurance claims and avoid possible rejections.

Know more about how to choose hassle-free car insurance which is claim friendly

Why newly-wed couples need maternity expense and new born benefit

May 12, 2017May 13, 2021 Team Turtlemint

Rohan and Seema were planning their wedding. All the preparations were done for the big day. Rohan was considering buying a health plan now that he was settling down and starting a family. He talked to his insurance advisor who advised him to go for a health plan with maternity and new born coverage. Rohan took the advice and three years later when Seema delivered a healthy baby boy, the couple was ecstatic. No worries about the hospital costs of childbirth, thanks to Rohan’s pre-planned move to buy a health plan!

Having a baby is the most joyous part of our lives. The experiences and emotions associated with it are unique and priceless. But what about the maternity costs incurred at the time of delivery? They have a price tag, don’t they? Considering the trend in medical inflation, the price tag is substantial. So, how does one deal with the financial implication of childbirth?

Relax! A health insurance plan comes to your rescue in this instance too. There are many health insurance plans available in the market today that provide maternity and new born related coverage. Such coverage eases your financial burden substantially. But before you settle on buying a health plan with maternity coverage, here is a complete guide to understand the relevant coverage and exclusions of such a feature.

What is maternity expense?

Expenses incurred when giving birth to a child are termed as maternity expenses. These expenses include the cost of delivery, pre and post hospitalization expenses, in-patient hospitalization expenses, ambulance costs, etc.

What is maternity cover?

Some health insurance plans have a feature which covers maternity expenses. This coverage feature is called maternity cover.

Who is covered under the maternity cover feature?

The mother is covered under the maternity cover feature.

What are the expenses covered under maternity cover?

Maternity cover includes coverage for a host of expenses which are as follows:

Hospitalization expense – expenses incurred on pre-hospitalization, in-patient hospitalization and post hospitalization of the expecting mother are covered.
Delivery expenses – expenses on both normal and cesarean deliveries are covered. However, there is a capping on the amount of coverage available for these deliveries. This capping varies across different health plans.
Pre and post-natal expenses – expenses incurred on pre and post-natal care of the mother is also covered under the plan.
Emergency ambulance costs – the cost incurred in taking the expecting mother to the hospital is covered.
New-born baby cover – this cover is not universally applicable in all maternity cover health plans. Under this cover, the new born bay is covered for a specified period.

What is not covered under maternity benefit?

The maternity cover has exclusions which are as follows:

Firstly, maternity cover is available after a waiting period. This waiting period ranges from 9 months to 4 years depending on different plans.
Termination of pregnancy within 12 weeks of conception is not covered.
The maximum age of the mother for availing maternity cover is 45 years.
Expenses incurred on regular doctor visits, medicines and tests during the period of pregnancy are not covered.
Expenses incurred on ectopic pregnancy are not covered.
Maternity benefit is allowed for a maximum of 2 children.

What is new-born baby cover?

Some health plans include new-born baby cover along with maternity cover. This feature covers the new born baby under the plan.

What are the conditions for availing the new-born benefit?

A new-born baby cover has some conditions which are as follows:

The cover is available in plans which also have a maternity coverage benefit.
Some plans might allow the new-born cover as an inbuilt feature. In other plans, this cover is optional. The policyholder can avail the cover by paying an additional premium.
The new-born baby is covered for a period of 90 days after which the policyholder is required to pay an additional premium to include the baby in the plan coverage.

What is covered under the new-born baby cover?

The new-born benefit provides coverage for the following:

Expenses incurred on treating any critical illness
Birth defects or congenital defects (coverage available in some plans)
Vaccination expenses incurred during the first year

Heavy expenditure is incurred on pregnancy and childbirth which might not be affordable. Health insurance plans extend help in covering such expenses under their maternity and new-born baby benefit. So, if you are planning a family, like Rohan was, look for a health plan with maternity benefits for an all-inclusive coverage.

Read more about Dejargonizing health insurance terms

Read more about Anatomy of health insurance plans

Feel free to leave your thoughts or comments below

How do portability and renewal work?

January 20, 2017May 14, 2021 Team Turtlemint

Raj’s car and health insurance plan were expiring soon. When he researched, he found the car insurance plan of another company offering him a better IDV (insured Declared Value) and also a lower premium. He wanted to switch but was unsure of the process and the implications of such switching. On the other hand, his health plan was bought after extensive research and was the best for his needs. He wanted to continue with it and wanted to know about renewals. He approached his uncle who happened to be an insurance expert and understood the concepts of portability (for his car insurance) and renewals (for his health plan).

In a car insurance or health insurance plan, there are two concepts which are common – porting and renewal. Both these concepts are applicable when the policy completes its tenure. However, these concepts are different. Let us find out the complete details about porting and renewal to understand them better.

What is portability?

Portability, in simple terms, means the ability to switch or change an existing health or car insurance plan. You can change your health/ car insurance provider and port to a health/ car insurance plan of another insurer. You can, also, port to a different plan of the same insurer. On porting, the accumulated benefits (waiting period and No Claim Bonus) of your existing health or car insurance plan would be carried forward to your new plan.

How does portability work?

Porting is like buying a new policy from a different insurer. The only difference is that the credits which you have accumulated in your old plan are added to the new plan. When the tenure of your existing plan is nearing completion, you can port out of your existing plan and shift to another one. The waiting period in your new health plan would be reduced by the period for which your old plan was in force. In case of your car insurance plan, the No Claim Bonus accumulated in the old plan would be used to discount the new premium.

When and why should you port?

Porting can be done only when the tenure of the plan completes and the plan is up for renewal. The reasons for which most of us port our policies are as follows:

Lower premium – this is the most prominent reason of porting an existing plan. If another insurer is offering a lower premium, we can save money and, thus, portability makes sense. However, the new plan’s coverage should also be checked. If the coverage features of the new plan are lesser than the ones you are already enjoying, porting is not recommended, even if premiums are low. Lower premium should be the reason of porting only if the coverage is not compromised.
Better coverage – if another plan is offering you better coverage features at the same or lower rate of premium, porting is feasible. In a car insurance plan, the Insured Declared Value (IDV) should be considered in the context of coverage offered. In health plans though, the coverage features should be given weightage.
Better customer service – measure insurers on their after-sales service. If you are dissatisfied with your current insurer in terms of service, it is time to port.

Process to port a plan

Porting your health or car insurance policy is simple if you pay heed to some rules and follow some steps. Here is a guide on how to port a plan:

Intimate your existing insurer of your decision to port.
Such intimation should be given at least 45 days before the policy period completes. A lapsed policy cannot be ported.
Shortlist another plan to which you would like to port.
Inform the new insurer of the portability. For this too, the window of 45 days is required to be maintained.
The new insurer would require you to complete and submit some documents. These documents include the proposal form of the new policy, a portability request form, copy of your old policy document and a cheque for the premium.
Based on the underwriting principles of the new insurer, the policy would be ported and a new policy would be issued.

Disadvantages of Porting

Porting is a very good clause which helps in lowering premium outgo and/or increasing the scope of coverage. However, any No Claim Bonus (NCB) which would have accumulated in your health plan would be lost when you port. The enhanced Sum Assured (including the NCB) of the old plan would be treated as the base Sum Assured in the new plan.

What is renewal?

Your health or car insurance policy is issued for a specified term. While car insurance plans are for one year, a health plan can be taken for two or three years by paying the premium at once. When the stipulated term of the plan ends, it requires repayment of premium to continue the coverage. Renewal, therefore, means continuing the coverage by paying the premium for the next period.

Difference and similarity between porting and renewal

While both portability and renewal are applicable when the policy tenure ends, these two terms are very different. Here’s how:

Porting and renewal are different terms with different meanings. However, both are applicable in a health and a car insurance plan. Understand the implications of these terms and get the best benefit of your health/car insurance plans.

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