Author: nilkanthadvisory.com

What is Group Medical Cover (GMC)? A group medical cover is a policy that covers a defined group of people, usually members of a professional association, or a society or employees of a company. Group medical insurance policy will cover health and medical expenses. What is a Group? According to IRDAI, a group means a group of members who assemble together with a purpose of engaging in a common economic activity and not formed with the main purpose of availing insurance cover. A group can be majorly divided into two: Non-employer- employee groups They may include members of registered welfare associations, holders of credit cards issued by a specific company/ banks, customers of a particular business where insurance is offered as an add on benefit. Employer- employee groups They may include employees of any specific registered organisation. Star Health and Allied Insurance Company Limited is the health insurance specialist in issuing group mediclaim policies for existing groups. Eg. Employers- employees Who is a group administrator/proposer? Group Administrator / Proposer means the person/organization who has signed in the proposal form/declaration form and is named in the Policy Schedule. The person may or may not be insured under the policy. What Is a Group Health Insurance Plan? Group Insurance health plans provide coverage to a group of members, usually comprised of company employees or members of an organization. Group health members usually receive insurance at a reduced cost because the insurer’s risk is spread across a group of policyholders. There are plans such as these in both the U.S. and Canada. KEY TAKEAWAYS Group members receive insurance at a reduced cost because the insurer’s risk is spread across a group of policyholders. Plans usually require at least 70% participation in the plan to be valid.  Premiums are split between the organization and its…

What are Child Education Insurance Plans? Child Education Insurance Plans are insurance plans that take care of your protection and savings needs for securing the future of your children. As a parent, one of your most important goals would be to make sure that your children have a bright future and lead their lives comfortably. These plans can help you achieve this by saving for your children’s higher education at a prestigious university.In our Child Education Insurance Plan, you pay premiums for a specified period (monthly, half-yearly, yearly or single pay). Once the policy term ends, you receive a lump-sum amount called the Maturity Benefit. In case of an unfortunate event during the policy term, the company offers your nominee the life cover amount. The company also waives the future premium payments* for the remaining policy term to ensure that your children’s future is always secure. This benefit is available, provided all due premiums are paid. Why do you need a Child Education Plan? You want to provide quality education to your child. A child education plan enables you to stay financially prepared for your child’s education needs. These plans help you save for your child's future needs and provides you with returns that help you fulfil your child’s goals.These plans can offer the following benefits: Immediate Assistance for Financial Emergencies Child education plans offer the benefit of immediate financial assistance in case of any financial emergency. Some child plans offer you the flexibility to withdraw money from the plan partially in times of your need. This feature of the plan is called Partial Withdrawal and is available after 5 years from purchasing the plan. Tackling Rising Education Expenses Inflation increases the cost of goods and services over time. This could apply to education expenses as well. This is why…

What Is Retirement? After working whole life to earn money, a time comes when rest from the daily work routine becomes necessary. Retirement is a life stage when you decide to leave work and live off a pension or savings without any active work or income source. The standard age to retire in India is 60 years. However, one may retire early or extend their work life according to physical and mental health, financial planning, and personal preferences. What Is Retirement Planning? Retirement planning is the process of preparing your finances today so that you can meet your dreams and goals independently by the time you retire and live a comfortable life afterwards. It involves setting goals by assessing the current financial situation, measuring future expenses, and creating a strategy to build a sufficient corpus. The primary objective of planning is to maintain a similar living standard after retirement with financial security and independence. How Retirement Planning Works? Simply put, retirement planning prepares you for life post-retirement, not just financially but in all life aspects. The non-financial aspects include ways to spend time, place to live, and deciding the right time to retire. The key components and considerations to plan for retirement vary according to your life stage: Early Life: In the early stages of work life, planning involves saving enough money for your golden years. Mid of Your Career: When you are in the middle of your career, retirement planning includes accumulating enough income and assets. Post-Retirement: This is the stage when you stop working and use up your savings and assets to lead a comfortable life. You may take the help of professional financial advisors to decide when to retire, set goals, and find ways to achieve them. Advantages of Retirement Plans Retirement plans are crucial to achieving financial independence even when income sources stop. Some significant advantages of…