Four reasons that will convince you to invest in Cancer Insurance

Cancer, just the mere mention of this word can send a shiver down your spine. This disease is one of the deadliest ones out there and claims well over a million lives all over the world, every year. Apart from the aggressive treatment and the uncertainty of whether it will save the patient, what scares people is the cost of cancer care treatment. Everything from the diagnosis of cancer to the treatment and medication can cost well over 10 lac rupees. Even if one survives this disease it can easily leave you bankrupt. To ensure that does not happen, banks have devised an insurance plan called cancer insurance.

An ordinary health insurance plan does not cover cancer treatment expenses since they are high. If you want to safeguard your family against the financial turmoil caused due to this disease you need to consider investing in cancer insurance plan.  

A cancer policy is designed to meet the specific insurance needs of a cancer patient. However, the pre-requisite for getting insured remains the same even here, the patients who have a pre-existing cancer condition cannot be covered under a cancer specialist policy. A cancer insurance policy ideally covers you against cancer, both at the early and advanced stages. Unfortunately, there are not many insurers committed to offer this kind of cover to the needy.

If you believe that you don’t need this policy, then here are some facts that will probably change your mind.

1.  According to estimates of various global and domestic organisations, lifestyle related diseases like cancer, heart diseases and hypertension are on the rise in India. One out of four Indians is at a risk of contracting one of these diseases before they reach the age of 70.

2.  Cancer treatment can cost you anywhere between 2.5 lakhs to 20 lakhs in just six months. You need something to fall back on when the costs are this high and cancer care Insurance Plans will have your back during this time.

3.  A heart and cancer insurance plan can be tailor made to meet the financial costs arising from the treatment require from one of these ailments. You can either choose one or both heart and cancer cover in your plan. The policyholder will receive lump sum payments throughout the various stages of his or her treatment.

4.  Cancer care insurance also provides a life insurance cover to the policyholder. This cover pays the nominee a certain amount of money in case of the death of the policyholder. This is a good way to secure your family’s’ future in case of the unfortunate.

Buying a Heart and Cancer Care Insurance Plan may seem like an added expense right now, but in the long run it might help you to preserve the finances of your family in a time when they need it the most. 

What you should consider when you invest in a ULIP Policy

What would be the ultimate way to save your money and at the same time have it increase? What if we told you that there is a scheme that helps you do just that and all you have to do is pay a set amount every month for a stipulated period of time? No, we’re are not talking about some Ponzi scheme that may or may not give you any returns. We’re talking about ULIPs or Unit Linked Insurance Policies. 

ULIPs are both insurance and investments. In a Unit Linked Insurance Plan the premium that the policy holder pays is divided into two parts, one goes to the life insurance and the other goes to mutual funds as investment. A ULIP holder has the option of either investing in equity or in debt. An aggressive policy holder will choose to invest his money in equity while a conservative policy holder might chose to invest his money in debt. The money is invested during the term of the policy which may range between 5 to 15 years. The returns from any ULIP are completely exempted from tax. 

A ULIP policy is designed to suit the needs of the policy holder. For it to effective one needs to invest in ULIPs the right way. Let us tell you how. 

1.  If you are single and just starting out with your career, you need low protection but high wealth creation and accumulation as you are just starting out in life. You can choose a ULIP plan with a low death benefit and allocate more of your money to equity oriented investment funds.

2.  If you are newly married and have no kids, your protection need is medium and the need for wealth creation is high since you might be planning on starting a family. You can choose an Insurance Plan with high death benefit and an investment plan that focuses on balance and growth of your investment funds.

3.  If you are married with young children, you need high protection as well as high wealth and asset creation because you need to save for your kids. You should choose a ULIP plan with increased death benefit and balanced investment fund for the creation of assets. 

4.  If you have a well settle job, are married and have school going children, you need high protection and high wealth creation along with liquidity to meet your child’s needs. Opt for partial withdrawal of your policy to meet your liquidity needs.

5.  If your children want to pursue higher education or start their own business or want to plan their wedding, you need medium protection again and also liquidity to meet their needs. You can again liquidate accordingly.

6.  If you have independent children and are nearing retirement your protection needs are low but you need to accumulate wealth for your retirement. At this stage of life you should lower your death benefit and opt for debt oriented investments.

Three reasons why term plan are THE insurance plans for you

Term life insurance is the simplest and also the cheapest form of insurance. In this type of insurance once the policy term is up or in case of the death of the policy holder, whichever’s first the nominee receives a lump sum payment from the insurer. If the policy holder outlives the policy he/she receives no benefit. But on the other hand the premium for term insurance is minimal. Hence opinion about this type of insurance is torn.

Term plans are the most cost effective way of insuring your life. It comes at a low premium and the pay-outs are sizable. It’s the most cost effective type of insurance policy. But the fact that on maturity the policy holder does not receive anything, since there is no investment option in this type of insurance is what holds people back from buying it. But there is a type of term life insurance that take care of that factor as well. These plans are called TROP or Term Return of Premium plans. 

These plans provide income replacement and refunds of the premiums paid at maturity, apart from offering all benefits of a traditional term life insurance plan.  You can also opt for life insurance riders like as Critical Illness and Accidental Death or Disability riders.

If there’s still a doubt in your mind about whether or not term plans are the best fit for you then let us clarify them for you with the following three points. 

1.  Simplicity: Term life insurance plans are straightforward. Unlike other insurance plans this type of insurance is simple and easy to understand even for the layman. This makes it easier for the policy holder to make proper, timely premium payments.

2.  Flexible: Opting out of a term life policy is much easier than getting out of other policies. In term policies if you stop paying premium the risk cover ceases and the policy ends. Nothing is payable to you as there is no savings element in the policy.  

3.  Renewable: Many term life insurance policies are "renewable" and "convertible." Renewability ensures that you can go in for another term policy without a medical exam at the end of the first term policy. Convertibility allows you to convert your term life policy into an endowment policy for the same sum assured with associated increase in premium, should this make sense during the term of the policy.