Mediclaim policy vs LIC Health Plus policy

Partiulars	Mediclaim Policy	LIC Health Plus policy
Class of insurance	General insurance	Life insurance
Benefits	Reimburses medical expenses	1) Death coverage  2) ULIP investment    benefits 3) Other benefits  Hospital Cash benefit Major Surgical Benefit Domicilary Treatment Benefit
Entry age	3 months - 60 yrs	18 yrs - 55 yrs
Tenure	Valid for 1 year	Min - 7 yrs
Cash less facility (TPA)	Available	Not available
Expenses covered	1) Pre and post hospitalization       expenses 2) Hospitalization expenses  Hospital room rent Doctor fees Medical tests OT (Operation Theatre) charges Medicines	1) No pre and post hospitalization expenses 2) No hospitalization expenses
Premium Allocation	Towards risk coverage	Towards policy administration, fund management and risk coverage
Surrender benefit	Not Applicable	Available
Maturity /Death Benefit	Not Applicable	Available

Tips to buy Life Insurance Policy

Understand your needs:- No one understands your financial situation better than you. That means you should avoid letting someone else tell you how much protection you need. You can get a rough estimate of your insurance needs by adding together your debt, estimated funeral costs, and six months to a year of income replacement. “One common rule of thumb is to multiply your yearly income by between 5 and 10, using the lower level if you don't have many dependents and few debts, and the higher level if you have larger debts and multiple dependents. But Ray is right: understand your own needs.” Taking stock of your financial policy can allow you to select the right policy for your needs. As sales representative, we were trained to sell large policies. Remember, you may not need an exorbitant policy — you need the policy that’s right for you and your family’s financial situation.

Understand term insurance versus permanent insurance:- Understanding the difference between term and permanent life insurance (such as whole life) can help you make an informed decision about your insurance needs. Today, a term insurance policy should be able to cover most of your debt and financial needs. In turn, you may not need to purchase a whole life policy. Try not to be sold by the “what if” scenario you might hear from an insurance sales rep. Insurance companies traditionally make more profit from whole life policies than term policies, so be prepared to hear a sales representative promote whole life as the best possible choice (even though it might not be the best fit for your needs). Remember, buy what you need and make adjustments as changes become necessary. Term insurance is typically renewable and should have a convertibility clause which allows you to make changes in the future. There are certain situations where a whole life policy maybe more advantageous than term; however, do not purchase it simply because your sales representative told you should.
 
Speak with an independent broker:- These brokers will have access to many more products than just one firm can provide. When I worked as an independent broker, I was able to offer much more to my clients than just a company product.

Avoid one-meeting recommendations:- If your broker makes a recommendation in the first meeting, you know that they have not really analyzed your situation and looked for best options. So just say, “No, thank you” and keep researching.

Understand how the advisor gets paid:- Find out if they are compensated through commission, fee-plus-commission, or fee only. If there is any commission involved with the sale, make sure to look at all alternative products available. With commissions, the advisor may have a conflict of interest. Just because your advisor is commission-based doesn’t mean they are bad — just ask more questions with them. I always worked on 100% commission, but I would give my clients several options and disclose if I got paid differently.

Recognize that insurance is for protection — not investing:- Term insurance provides protection only, without a savings component. Whole life and universal life policies have a savings component and are much more expensive. You are almost always better off just paying for term insurance, and using the cost savings to invest elsewhere.

Ask the tough questions:- Don’t be afraid to ask the advisor questions. You should know the product inside out before buying it. Is the policy renewable and non-cancelable? How long are premiums guaranteed for? Is there an accidental death rider? What are the exclusions?

Watch out for “know-it-all” advisor:- If the advisor answers all your questions without referring to anything, or pretends she “knows it all”, chances are that she does not. Insurance policies are complicated, and even the best advisors do not know every product 100 percent and may have to look things up. There is nothing wrong with that.

Compare similar products:- When you price shop, make sure you compare similar products.

Don’t replace old whole-life policies:- If you have had a whole-life policy for several years, try not to replace it. You may lose all the premiums you have paid. You may also have to pay new administration fees (if applicable), and reset some clauses (such as the suicide clause). If your situation has changed and you need more insurance, just buy more. (This warning does not apply to term life.)

Do not buy expensive riders:- The advisor might ask you to add on all types of riders. Stay away from them unless you fully understand them and need them. Again, in training there was always an emphasis on selling riders. Often I didn’t see any benefits to the client.

Do your homework:- Make sure you do your homework before purchasing an insurance product. Make sure it fits your needs and budget, and make sure you understand the contract. The advisor is obligated to explain it to you. Don’t sign until you understand the contract.

Take a 30-day free look:- You have 30 days to look at the policy and understand it. If you are not satisfied with it during that time, cancel the policy and you will get your premium back.

Keep it simple:- Do not make your insurance planning complicated. Because it is based on protecting your family, it should be based on your needs. Don’t fall for all the bells and whistles the company may try to sell to you.

Tips to buy Medical Insurance for your Parents

1. Look for a Specialist Mediclaim Advisor: -  Look for an advisor who specializes in Health Insurance services and provides professional assistance at the time of claims. An advisor will also sound you on the background of various insurers as well as provide you detailed solutions. 
   
2. Renewal Ceasing Age:- Look out for the Renewal Ceasing age in the Mediclaim policy. This is the age, when the cover will stop and would not be renewed. For instance, in case of Bajaj Silver Health, though it is a very good product, the policy ceases renewals at the age of 70.
3. No Medical Checkup Options:- Generally, Medical checkups become mandatory for people aged more than 45. There are medical insurance policies available, which can provide covers from the age of 46 to the age of 69 years without medical tests. In case Medical Checkups are not convenient, one can look at these options.
4. Declare current Health history honestly:- Note, any misrepresentation or omission of information in the proposal form regarding health of your parents can result in cancellation of the policy and exposing your parents without a Health Insurance cover. Please ensure all health facts are clearly mentioned.

How to Calculate Indian ESI from Employee Salary

Employee's State Insurance scheme is a self-financing social security and health insurance scheme for Indian workers. Any labour who earns below Rs 15000 as his or her monthly salary will be covered under the ESI. Both the employer and employee donate for ESI. Employer's contribution is around 4.75% and employee's contribution is 1.75%.


Example 1:
Find out the ESI for the basic salary of Rs 9000?

Step 1: Enter the salary, For e.g. 9000

Step 2: Employee contributes 1.75% for ESI. Now compute as shown here,

              ESI = 9000*(1.75/100) = 158

Step 3: Employer contributes 4.75% for ESI. Compute as shown here,

              ESI = 9000*(4.75/100) = 428

Gratuity Calculation in India

Gratuity calculator to calculate the collectable amount for an employee when he/she works more than a minimum period of five years at an organization. Gratuity calculation in india is based on his/her average salary, dearness allowance and working years.

Formula Used :

Gratuity Calculation In India = [ (Basic Pay + D.A) x 15 days x No. of years of service ] / 26

Where,
 D.A = Dearness Allowance.

Gratuity Eligibility :-

    1.  Any person employed on wages/salary.
    2.  At the time of retirement or resignation or on superannuation, an employee should  

         have rendered continuous service of not less than five years.
    3.  Payable without completion of five years only when death and disablement.

 This gratuity calculator is applicable only for indian employee.