Tag: Millenials

Don’t try to board the running train..!!

We are not saying that stock market is a bad place to invest. Just that it is not for everyone and not every day is a good day to invest. Let’s not get carried away with the rally and feel left out. There are other ways of making money and they are safer. Caterpillar will help you identify those and consider your goals are a priority.

Super top-up plan – A cheaper way to enhance your health cover..!!

We hear everyone say save money for a rainy day. Most of us do. We have our umbrellas in place. But, what if rains don’t stop? Or, it keeps raining for days or weeks? Our umbrellas won’t be enough. We would need a raincoat and a solid roof over our head.

What is your solid roof in case of a health emergency? Some of you may have bought a health insurance policy. But, would that be enough if you stay hospitalised for more than four-five days or face multiple hospitalisation in a year? It won’t be. Your base health insurance policy is just an umbrella. Your need a raincoat and a solid roof of a super top-up plan.

What is a super top-up plan?

A super top-up plan is a cost-effective way to boost your health insurance coverage. It compliments your base health insurance policy and gets activated after you exhaust the sum insured in base policy. For example, if you have a health plan of Rs 5 lakh coverage and a super top-up plan of Rs 10 lakh coverage, total coverage available to you is Rs 15 lakh. First your base plan will get used up, and if need be, the Rs 10 lakh super top-up.

One may buy a standalone super top-up plan (and no base policy), but it is not advisable. We will explain it soon in the article.

Super top-up versus higher base sum insured

Taking ahead the above example, you may wonder why not take a base policy of Rs 15 lakh, instead? Here comes the affordability factor. A combination of Rs 5 lakh base and Rs 10 lakh super top-up will be much cheaper than a pure base policy of Rs 15 lakh. Take, for example, a family floater (2 adults and 2 children) insurance with a base cover of Rs 25 lakh will cost you around Rs 29,000 per annum compared to a combination of Rs 5 lakh base policy and Rs 25 lakh super top-up (with a deductible of Rs 5 lakh) at nearly Rs 21,000 per annum premium.  What is deductible, you ask? Read on.

Call us on 8178271045 for more details

Why super top-up plans are cheaper?

If something comes cheap, you must ask, ‘why?’ Super top-up plans are cheap because these policies comes with a deductible, that is, it comes to your rescue only after you have taken care of certain medical expenses by yourself (up to the deductible amount). This could either be through your base policy, group health insurance from your employer or simply paying the amount from your pockets. Need more clarity? Let’s take an example.

All super top-up plans have a deductible amount. So, if you buy a Rs 20 lakh super top-up plan, the deductible amount could be Rs 5 lakh. This is how deductible in super top-up plan works:

Scenario one: If your approved claim amount comes in at Rs 4 lakh, nothing from Rs 20 lakh will be paid to you. Pay Rs 4 lakh either by yourself or from a base policy.

Scenario two: You get hospitalised again in the same year. The approved amount this time is of Rs 3 lakh. In this case, super-top plan will get activated but only for Rs 2 lakh. Rs 1 lakh will have to be paid by you.

Scenario three: You are again in the hospital in the same policy year. The approved claims amount to Rs 8 lakh. The full amount will be taken care of by the super top-up plan.

Thus, one has to pay the deductible amount only once in a year, and super top-up plan takes care of your medical bills from then on. Super top-up plans are different from top-up plans in which deductible is to be paid every time you get hospitalised before top-up policy cover comes into picture. Top-up plans are largely in extinction now as super top-up plans are clearly much more beneficial.

Who should buy a super top-up plan?

Super top-up plans are available for individuals and for a family plan too. Even if you keep a lower deductible amount, you can still boost your coverage significantly. These become absolutely necessary in case of a family floater policy, especially in covid times, when chances of more than one family members getting hospitalised in a year are quite high. Remember only once you have to take care of the deductible amount. Rest of claims in a single policy year will be covered under super-up plans.

Pick up your phone and connect with us for more clarity. We are available at 8178271045.

Attention millenials! Learn all about peer-to-peer lending.

Hunting for newer investment avenues?

Any luck beyond equities, debt and low-yield small savings schemes?

Bitcoins, you say! But don’t you fear volatility? Can you digest 20-30 per cent freefall just every other day?

Most of you cannot. Let us introduce you to a product that has become a rage among millenials!

Peer-to-peer lending, or P2P lending, is a short-term investment avenue that may give you double digit returns in a year or two. Unlike Bitcoins (another popular millennial investment), P2P lending is regulated by the Reserve Bank of India (RBI). The central bank gives licences to P2P platforms that facilitate P2P lending.

Let’s get going.

What is P2P lending?

There are salaried professionals who may need extra cash for emergencies, a gadget purchase or just to survive the last few days of the month before the next month’s salary gets credited. There are small businesses which may need some working capital to get their cashflow intact. Their borrowing needs will  not be so much that they approach a bank. Why don’t you be the bank? You can be a lender to borrowers.

Here comes the role of P2P platforms. Such platforms connect the borrowers with lenders. Borrowers easily get the required funding and lenders get to earn decent returns on their lending amount. These platforms are licensed by the RBI, and are called NBFC-P2P.

When did it start in India?

P2P players have been in existence since 2012, when the first platform – i-Lend – was launched. Initially, there was hardly any regulatory oversight. Seeing the potential of the evolving technology and growth of lending to the underserved, the RBI came out with guidelines in September 2017, to convert P2P players into NBFCs by issuing NBFC-P2P licences. It issued fresh guidelines in 2019.

There are around 30 P2P players in the country of which 21 have got the NBFC-P2P licences as of January 2021.

What are the regulations?

Going by the RBI guidelines, one can invest up to Rs 50 lakh across P2P platforms. The minimum amount is Rs 25,000. The central bank has specified that the tenure of a single loan cannot be more than three years and exposure to a single borrower cannot go above Rs 50,000. Besides, different P2P players may fix their lending limits and loan tenures within the RBI prescribed limits.

How to start investment?

You may sign up on one of the P2P platforms and start your journey. Or, you can connect with us. On no extra charge we will take care of your investments and queries. Call us on 8178271045.

Why choose us?

P2P lending is a road less travelled by! Not many people understand the risks involved. With any lending comes the default risk. But if you diversify well across borrowers and platforms, you may control your default risk to a great extent. We help you do that. Not only do we take care of the operational aspect of it, but also the expertise side of it. We emphasise again – no servicing charge! Better to come with us than walk alone.