Posts tagged: claims

Should You Borrow Or Earn Yourself Out Of A Financial Crisis?

crisis in financeIt is not unusual for family finances to take a tumble and for everyone in the family to get concerned about how you are going to get through it. Many things can trigger a very sudden financial crisis. In many cases, it is a business failure. Many new businesses fail and they can take all of the money that you have invested in the ventures with them. On other occasions, it is a gradual decline and you have been throwing good money after bad for years. Perhaps you even saw the crisis coming but chose to ignore it.

At other times, it is a job loss that triggers the crisis. Most families can survive a redundancy or a job loss of one wage earner if there is another wage earner that can support the family for a few months. However, if there is only one wage earner, a job loss can throw the whole family into financial turmoil.

For many families, it can be an unexpected expenditure or an accident or ill health that triggers a financial crisis. Perhaps you had a car accident or an accident at work and you can no longer earn the money that you used to. If the accident was not your fault, you may be able to start a personal injury claim and it is worth looking into that. You may even be able to get an interim payment of compensation to help you get by. Sometimes it is a big purchase that tips the family finances over the edge and it can be hard to get them back on track.

There are only two ways to get yourself out of a financial crisis. You either need to borrow or earn your way to financial security. Here are a few ideas to help you decide which is best for you.

Keep your outgoings to a minimum

You need to get a clear picture of how much you have to earn or borrow to get by each month before you can put a plan together. There will have to be some cutbacks in your family budget in the short-term. It is important that everyone participates in the savings so sit the whole family down and explain to them that you need to tighten your belts for a few months.

Start by listing everything that you pay out for each month. It is useful if you have your bank statement in front of you when you do this. List the large outgoings first. These are usually the items that you can’t avoid paying out and include the mortgage or rent, car loan and utility bills. You even have to list the minor items such as children’s activities and the takeout coffee you have every morning.

Try to work out which ones you can do without. Try to negotiate a rent or mortgage reduction for just a few months and agree to make up the shortfall once your finances improve.

Luxuries will have to go! Eating and drinking costs a lot and is a luxury that you can do without for a month or so. Try a takeout instead or save even more money by making your own. Healthy, home-prepared meals take a while to make but save you a lot of money and do you good!

Borrow what you need to get by

There will be occasions where you need to get hold of money fast and you will not be able to wait to earn yourself out of trouble. Quick loans give you the cash that you need when you need it. Everything is done online and there are hardly any forms to fill in so the process is much quicker and streamline. There is a credit check involved and there is a huge variety of lending options so you can always find the loan that is just right for your circumstances.

If you have fallen behind on your mortgage repayments, the last thing you should do is ignore the letters demanding money. It is important that you contact the company quickly and sort out a repayment schedule that is manageable.

Borrowing what you need can give you peace of mind and free up your time to get on with what is important which is finding another permanent source of income.

Find a new source of income

Obviously, your ultimate aim is to find another permanent job or to get another business up and running but this can take time. Dig out your CV and give it an overhaul. Refresh your personal statement and update your qualifications. Then start sending it out to potential employers.

In the meantime, it may be possible for you to take on a part-time job to help out with bills. There are always retail jobs and positions in catering and hospitality available. Could you do some babysitting in the evenings or sell some things to raise some cash?

Whilst you are finding it hard to manage financially, you must check that you are receiving all the benefits that you are entitled to. Check out with your local authorities or go online to find out more. There may also be welfare organizations that can help you.

If you have a spare room in your home, it may be possible for you to take in a lodger. The rent will help towards the cost of the mortgage and they will chip in for the household expenses such as gas and electricity.

You could also look into earning some money from home. Many people make good money working from their bedrooms! You just need an internet connection and a laptop and PC. You could work as a website tester, an administrative assistant or even as a freelance writer. There are literally thousands of jobs available through sites like Guru.

You do the jobs in your own time and so you will always be available to attend that important interview to get your new full-time job.

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Get the Best Deal on your Home Insurance Policy

insurance for your homeA home insurance policy is a great way to secure one of your biggest investments. That said, a lot of us are quite apprehensive about the home insurance premium. But it is essential that you get a proper home insurance policy to safeguard yourself against any distress caused in the event of a mishap. It’s all about doing some homework and get your basics right when it comes to home insurance requirements.Don’t know how to go about it? No need to worry, read on.

Today you can find a lot of home policies from insurance providers, offering different types and levels of coverage. Naturally, the first thing therefore to do is to analyze your coverage requirements carefully. With this understanding in place, you will be in good position to know what to look for and make an informed decision.

Another thing on similar lines is to identify what type of coverage is needed for your house. Basically, there are two types of home insurance coverage one can opt for. A home insurance that covers just the structure will only insure your house against structural damages. While on the other hand, a home contents insurance policy will cover your household items against loss and damage. For instance, if you happen to live in an area that is prone to floods, go with structural home insurance. In case your house is susceptible to theft and burglary, it makes sense to go with the cover that offers content protection.

In the event that you need both types of coverage, it is advisable that you subscribe to the same home insurance company. This will help you save on the policy premium as well save the troubles and hassles arising during claims.

Another great tip to get the best home insurance deal is to compare policies online. You can find several aggregators and comparison sites on the internet that present you with in-depth comparisons. This is a great idea to avail the best offer. Additionally, there is a high chance that you will get a good discount on the premium too. This makes it a win-win for the customers.

Next, you should ponder about something called as the ‘excess’. Simply put, it is the amount that you pay out of your pocket during a claim settlement. The simple calculation here is that the excess is inversely proportional to the premium. However, this needs to be thought through as it is all about striking the right balance between the two.

You can also reduce your premium costs by installing safety equipment such as fire and smoke alarms. An anti-theft alarm is also something that’s gaining popularity these days. With such precautions in place, the insurance company will reduce the perceived risk for insuring your home and will in turn reduce the premium.

Once you have finalized the policy, you can aim for the no-claim-bonus. When you don’t file a claim for a certain period of policy coverage, the insurance company will offer a discount on the premium during renewal. However, this varies across companies and thus needs to be checked before buying. That’s it! With the help of the aforementioned pointers, you will be able to get the most out of your home insurance policy.

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Buying or renewing a bike insurance is a click away: 10 Benefits to Go Online

byke insurance renewalIn today’s internet savvy world, we all purchase something or the other online. From apparels, airline tickets, to gadgets, literally EVERYTHING is only a few clicks away! Even while writing this article, I ordered for a purple kurta to be worn in my office Holi party!

In fact, it’s not just clothes and groceries that are selling like hotcakes in the internet world, as people are buying insurance online as well.

Either you or someone in your acquaintance might have bought bike insurance online. After all, as per the research across 18 cities, more and more people are buying insurance online. Of the 3007 respondents,24% purchased motor insurance online.

However, if you are reluctant about going ahead with the online mode and prefer the conventional mode of arranging a meeting with various insurance agents and visiting their offices for detailed discussion, this article is meant just for YOU!

Benefits of online buying/renewing bike insurance:

Buying or renewing bike insurance online can prove advantageous in various ways, such as:

1. Automated servicing: The online platform is not meant for buying insurance only. As a prompt and efficient servicing channel, current policyholders can adopt the online mode to renew their policy as well, regardless of whether they purchased their policy online or not. Further, with just one click, you can download product literature like brochures, policy wordings, etc. and get instant premium quotes online.

2. Online assistance: If you are purchasing the insurance online, it doesn’t mean you will not get any assistance. Most of the insurance companies have live chat facility on their websites where customers can seek clarification in case of any query. Also, customers can call on the toll-free number of insurance companies to clear all doubts. You can go further and ask the insurer for a face-to-face meeting. The insurer will send an executive for further assistance.

3. Paperless transactions: Getting into paperwork is both time consuming and boring. But when you go online to buy an insurance policy, it requires just a few easy steps. Besides being efficient, you are protecting the Mother Nature by going paperless!

4. Time-saving and convenient: To purchase insurance offline, you need to go through the tedious task of filling long insurance forms. However, when you buy insurance online, you need to submit only a few details. Also, at the time of policy renewal, it’s easy to reload your information. As the insurer already has your details, you only need to submit your policy number. Further, insurance companies have designed an easy-to-understand user interface which has made the entire process of buying the insurance quicker and easier. And who wouldn’t love to cut the hassles of going out and standing in long queues, when buying and renewing of bike insurance can be done from the comfort of home. While watching the ‘Friends’ season on television, or during the office break or even from your mobile, bike insurance can be purchased in a hassle-free manner.

5. Cheaper premium rates: It is disheartening to see that nearly 75% of two-wheelers plying on roads are uninsured even when it is mandatory to have a third-party insurance to ply your vehicle on roads. Many times, people avoid the insurance to save some penny.However, buying a bike insurance online ensures additional savings. The insurance quotes are given for free, and in fact, you can ask for as many quotes as you want. Moreover, there is no obligation to purchase either! As there is no involvement of any agent and the insurer saves on paper and administrative cost, the same is passed on to policyholders in the form of cheaper premium rates.

6. Away from nasty agents: Though, an insurance agent plays an important role, sometimes they may not be helpful. Often, insurance agents prove to be pushy and may even have vested interests in a particular insurance policy. But when you go online, you get an option of comparing and choosing the right insurance policy after analyzing every aspect carefully. Also, there will be no interference or biased suggestion from insurance agents!

7. Instant policy issuance: When you buy a policy offline, the insurer takes a lot of time in processing physical documents. Whereas, in the internet world, the processing of information is instant and so is the issuance of your bike insurance.

8. Storage of policy documents at one place: When you go online, you will always have the soft copy of your insurance policy in your email. It means, you can access your policy anytime and anywhere. Did you know the Insurance Regulatory Authority of India (IRDAI) has introduced a digital motor insurance initiative known as e-VahanBima?It says that you don’t need to carry your motor insurance policy document every time you take out your vehicle on the road.

9. Check policy review: As you do it at the time of purchasing other things on the internet, you can check the reviews of previous customers and their experience with the insurance company before going ahead. It means, you can compare features of different policies and know about the reputation of a company before zeroing in on.

10. No impact of demonetisation: I know, the ‘demonetisation phase’ is over, but what if the government comes up with its second season? As it is said, ‘once bitten, twice shy’ so, go for the online mode to ensure that any cash crunch scenario doesn’t affect the process of buying or renewing bike insurance. All you would require doing is, log on to the insurer’s website and fill the important details, including policy information, vehicle registration number, add-ons, if any, and make payment via net banking.

Remember, accidents happen unannounced.Therefore, the least you can do is, apply for a comprehensive bike insurance that takes care of the associated expenses and ensures your financial security.

Further, it is reassuring to know that buying bike insurance online doesn’t pose any serious safety threats as every step is taken by an insurer to keep your personal information confidential.

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Is It Important to Cover Your Car Against Theft?

coverage against car theftWhen you think about car insurance, it is always about accidents and getting yourself protected in the event of an accident. We believe that having a third party liability insurance policy is enough since it is mandatory by law to provide for damages done to third parties involved in a mishap. However, is it enough?

God, Forbid! What if you meet with an unfortunate scenario of your car getting broken into and stolen? Would you be covered for the loss?

Car theft is something that would not have crossed your mind. However, looking at the alarming statistics of theft in India, it is worthy to revisit your insurance plan and get yourself covered for theft.

Importance of Comprehensive Insurance Plan

Car insurance policies fall into two categories – third party liability and comprehensive plans. Third party liability covers for damages done to third party or property in an accident and is compulsory to own one as per the Indian law.

On the other hand, comprehensive car insurance plan comprises of third party liability coverage and also covers you for damages done to your car due to accidents, theft, and unforeseen mishaps.

A comprehensive insurance policy is the most sought by all since it gives the much-needed security against unforeseen damages and provides full-proof protection for your car. It is wise to opt for a comprehensive insurance plan to give you complete peace of mind.

The compulsory third party liability insurance policy is not going to help you in any way when you discover suddenly that your car is stolen. Whereas, when you own a comprehensive insurance policy, in the event of theft, the insurance company will come to your rescue and reimburse for your loss.

All you need to do is to lodge an FIR with the police and inform the insurance company of the same. You will be covered for the loss, and your money will be reinstated back to you as per the terms and conditions of the policy. Your car is the most prized asset and going an extra mile to protect it, using a comprehensive insurance policy is essential.

Why should you consider upgrading to a comprehensive cover?

You need coverage to protect you against damage to your car as opposed to the third party only If your car is stolen, you would have to pay up in full to purchase a brand new vehicle. Whereas with the comprehensive insurance plan, you are eligible to get back your hard-earned money, even if not in full.

Added level of protection that gives you more advantages

Don’t go for the lower level of cover just to save few bucks. You will save more in the long-run when you opt for comprehensive plans.

Stay safe against the crime of theft and other unforeseen damages that can happen to you anytime

Be secured on the road and also off the road. Don’t pay up for something for which you were not at fault

As seen above, the advantages of owning a comprehensive insurance policy are plenty. So make a wise choice and don’t regret later.

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Health Insurance Tips to Use All Year

health insurance protectionEverybody has heard the saying “health is wealth”. While it is true that good health is something that money cannot buy, access to funds can certainly give you the best medical care. Life is uncertain and despite all your safeguards, accidents and diseases can strike without warning. It is therefore prudent to make arrangements for the wellbeing of yourself and your family, well in advance.

Medical costs today are prohibitive, making the need for sudden treatment or hospitalization a huge financial burden. If you are not covered under a health plan, you may find yourself in a difficult situation and can end up depleting your savings.

Benefits of Health Insurance

Financial stability – Medical costs are increasing at a rapid pace. In case of hospitalization, you will have to incur several expenses, such as doctors’ fees, diagnostic tests, medications, and lots more. If you have to pay for these, you may end up spending all your savings. When you have purchased the best health insurance coverage, all these expenses are paid for by the insurer.

Avail the best medical care – Many people who are not covered under a health plan often compromise on the quality of care they receive. However, with adequate health insurance, you can focus on receiving the best medical care and recover earlier. Most insurers offer a wide network of hospitals, which gives you the additional benefit of cashless hospitalization.

Tax benefits – In addition to the above-mentioned benefits, individuals can avail of tax benefits on the premium paid for purchasing the health insurance policy. Under section 80 D of the Income Tax Act, premium up to INR 25,000 per annum is tax deductible. An amount of INR 30,000, paid as premium for senior dependent parents covered under these health plans, is tax deductible under this section.

Tips to Avail the Best Plan

• Individuals must pay their monthly premiums on time to ensure the benefits under the health insurance plans remain valid throughout the policy term.

• If you receive any message asking for additional information and/or documentation, it is important that you submit the same quickly to avoid loss of coverage.

• It is also important to pay your renewal premium in a timely manner to continue enjoying the different benefits available under the insurance coverage.

If you follow these simple tips diligently, you can be sure to reap the benefits of your health insurance policy. Do not wait for a health crisis to learn more about health insurance.

Know more about health insurance tips at 5 Paisa Insurance

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