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What Are The Features Of The Florida CE Requirements For Health Insurance?

Published on October 9, 2020October 28, 2020

In the aftermath of the Florida amendments regarding the insurance framework, there are noticeable changes in the industry. With the flurry of amendments, the paradigm has shifted from the initial set-up to favoring adjusters and producers. These amendments have personalized continuing education requirements and have simplified the confusing structure. Today, licensees can apply and reapply for licenses with greater ease. Not only that, but it has also proved to be pivotal in mitigating the burden on the existing producers and adjusters regarding the workload. The key focus areas in the CE requirements have eased the reinstating and obtaining of the agents’ appointments. You can see more information by clicking here.

Prior to these amendments the industry was facing a lot of issues in terms of meeting the requisite compliance standards. The provisions for specialized training etc. for the producers were not accurate. The industry in general was lagging in terms of professional commitment and level of the producers.

It is also a setback in terms of the level of knowledge and proficiency in the standards of the producers. Though the continuous education commitments are required since the 1993 Insurance Code the effectiveness of these CE courses are found today.

In the compliance period ending 31 October 2014, anyone who has a license to solicit or sell insurance has certain compliance standards. The said insurance producer must mandatorily undergo 5 hours of CE as approved by the department. The commitment hours of the compliance includes Law & Ethics.

This is specially important for both residents and non-residents who fulfill the criteria to appear for license renewal. Apart from the usual amendments to hours and course selections specialized training for specialized subjects is also a valuable addition. It helps to keep the professional standards at par the expectation of the consumers.

A brief look at the core features of the health insurance CE compliance requirements are as follows

Long Term Care Training

All health agents have to undergo training for 8 hours for long term care insurance. Additionally, they are also required to complete 4 hours of training for every 24 month compliance period. The Appointing Insurers have to confirm the training requirements met by the agents.

Flood Insurance Requirements

The state of Florida has also laid down express guidelines vide a notice. This notification states that the licensees who sell Flood Related Insurance must comply with a minimum of 3 hours of training requirements as per the FEMA and the National Flood Insurance Program.

Resident Requirements

A producer or an adjuster who has been licensed for a term not more than six years must complete 24 hours training. This 24 hour CE requirement includes a mandatory 5 hour of Law and Ethics and 19 hours of elective credits. Licensees are required to undergo the CE requirement every two years.

A licensee, whether an adjuster or a producer licensed for six years and above, should complete 20 hours instead of the prescribed 24. These 20 hours of training include 15 hours of elective credit and 5 hours of Ethics and Law. These compliance cycles are for agents whose license is obtained on or after 31 October 2014 or later.

The total hours of a licensee’s training commitments include a mandatory 5 hour of Law and ethics course update after every two years, which is related to the licensee’s specific type of license. Licensees holding different insurance licenses should go through a course related to at least one of the licenses held by the licensee. Otherwise, all remaining requisite hours of CE are elective and may comprise any CE course.

Non-Resident Requirements

Non-resident Florida licensees compliant with the Continuing education criteria in their home state are exempt from the Florida CE. Similarly, non-resident adjusters must comply with their home state’s CE requirements or any other state whose adjuster license they have. Non-resident agents are also required to be compliant with the LTC training. This compliance pertains to this state or any other state which meets the criteria laid down within the NAIC LTC model outline.

Course Repetition

Courses cannot be repeated for credits, and a course has to be taken only once within two years calculated from the completion date.

Exam Rules

Online Certification exams follow closed books. This means that the course materials are not available to the examinees in the duration of the exam. Candidates seeking CE credit must secure a 70% or higher aggregate to pass. There is no express bar on the number of attempts that a candidate can take, and therefore students can take any number of retakes to qualify.

Proctor/Monitor Requirements

Licensees must recognize that the course examination must be completed without any assistance from any person whatsoever. In this regard, student acknowledgment includes the further understanding that the violation could cost a loss of course credit and administrative sanction by the Department of Financial Services of Florida state.

Period Requirements

Florida resident licensees should fulfill the CE criteria every 2 years until their’ birth month’s last day. If the licensee has not been licensed for a complete two year by the initial deadline? It will get a 1 year extension.

Carryover Requirements

Students can carry over their excess hours up to 24 hours to the next compliance period.

Reporting Requirements

To report within 21 days of completion of the CE requirements, candidates would require an agent’s license number.

Instructor Credit

Individuals who fulfill their roles in the capacity of instructors for Continuing Education courses can receive the same amount of CE credit that their students receive.

Conclusion

Ultimately, the insurance agents must find out electives that are better suited for their license types and course credit requirements. Adjusters and producers alike need to be equally proactive in identifying the targets for CE requirements and fulfilling them satisfactorily. It is also crucial for adjusters to recognize the importance of proficiency as well as commitment hours. Ultimately it reflects well on their customers and their practice as well.

What to know when Moving to Qatar?

Published on April 2, 2020

Travel

Being the richest country in the world, Qatar is very appealing to expats from around the globe. With excellent living conditions and endless opportunities, it is no wonder so many people want to move there and provide a better life for their families. The stability the country offers is another appealing factor. The luxury and the magnificent architecture, high-quality healthcare, clean streets, and the possibility to prosper attract thousands of expats every year who come and work in amazing Qatar. However, before you go, you should be familiar with the basic rules of functioning and prepare yourself for all the requirements to be able to get a job and move to Qatar. Here are some things you should know about.

Visa Requirements

When it comes to visa requirements, your status will largely depend on the country you are coming from. Citizens of the Gulf Cooperation Council do not need a visa to enter Qatar. These are as follows:

United Arab Emirates
Saudi Arabia
Oman
Kuwait
Bahrain

Citizens from the following countries do not need a visa for a stay shorter than 90 days:

Citizens of the European Union
Antigua and Barbuda
Argentina
Armenia
Bahamas
Brazil
Dominican Republic
Iceland
Liechtenstein
Malaysia
Norway
Russia
Serbia
Seychelles
Switzerland
Turkey
Ukraine

Expats coming from some countries do not need a visa for a stay shorter than 30 days, while others can obtain the visa once they enter Qatar. The best thing is to check your visa status before making any arrangements.

How to find work

There are a few ways to find a job in Qatar. The most popular method first is by getting a good reference. If some of your family members or friends are already working in Qatar, you can ask them to refer you to their boss because in most cases, employers ask their employees for referrals before they advertise a position. Of course, this doesn’t mean that you will get the job automatically, you will still need to pass the interview and meet the requirements when it comes to skills, education, and experience. However, in this case, it will be much easier for you to apply for the best jobs that are not publicly announced.

The other way is by applying for jobs on job portals. Many companies seek employees this way and in most cases, there is no fee to pay. However, you must be aware of potential scams. For example, be careful when applying to jobs for companies that you have never heard of. Make sure you first do your research about the company you plan to apply to. The reviews will tell you a lot about the overall reputation of the company and the previous experiences that the employees had with them.

Based on the reviews you can easily conclude which company can be trusted. Doing research online will make the whole process easier. Make sure you create an impeccable CV and include all the relevant information. Also, do your best to create a great cover letter that won’t be generic. Proofread both your CV and cover letter a few times before submitting it to make sure there are no grammatical errors or typos. Once you pass the application process, the employer will pay for the visa and travel expenses in case they want to hire you.

Healthcare

Healthcare in Qatar is known for offering quality care for all patients. The fact that it is among the top 5 healthcare systems in the world demonstrates the quality of service you can expect. Expats are eligible for healthcare in Qatar. The only thing you need to do to start using it is to apply for a health card; besides having a residence permit and a valid ID. You should know that most companies offer health insurance and include it in the employment package.

However, before you check health insurance off your to-do list, you must first check with your employer that you are covered with everything you will need. If not, you will need to arrange this. The health of children is a prime concern in Qatar and all clinics and hospitals provide the essential children’s healthcare services. For more information, visit Expatica where you will find all the crucial information you need.

Where to live

Some of the most popular expat neighborhoods in Qatar are Al Waab, Madinat Khalifa, Al Sadd, Abu Hamour, West Bay, The Pearl, and Al Wakrah. Each of these neighborhoods has something that attracts expats. People that move to Qatar soon realize that everything is directed towards convenience for the family, so schools and kindergartens are close by. Of course, one of the main factors when it comes to the neighborhood and a place to stay is the budget you have and the number of family members you will be living with. Also, it will largely depend on the location of the company you will work for.

The weather

The weather is very hot in Qatar and nothing can prepare you for this heat. People who come to live in Qatar find it difficult to adjust because the temperature can rise to 50 degrees Celsius. In fact, it is probably the hardest thing to get used to. However, every building has air conditioning which makes the temperature more bearable. During fall and winter, the temperature drops slightly which makes it more pleasant. One thing that cannot be avoided, however, is sand. It is everywhere and you must be prepared to have it even in your home because sandstorms are frequent and battling the sand is practically endless.

Once you go to Qatar, you will notice that the culture is progressive and modernized, but still traditional in many ways. Considering that the dominant population is Muslim, dressing modestly is crucial. Most men wear white or black thobes, while women’s clothing is predominantly black and abayas can be plain or decorated with Swarovski crystals. Women who come from other countries are expected to cover their skin and dress modestly, too.

Top Reasons Why We Need Insurance

Published on December 5, 2019

Insurance

Starting considering getting insurance is usually the first sign of becoming an adult. For some reason, it’s time for you to think about the future and financial safety of your loved ones and yours. If you can’t see a reason for getting the insurance yet, you probably should take a good look at your life obligations and priorities at the moment and the plans for your future.

Basically, it’s also a sign of… being smart. It’s taking care of your living standards, stability, and peace of mind. Being aware of risks that are waiting around the corner for you is not paranoia! One of the things that give you a sense of control and safety is coverage.
What kind why do we need it? With anorak.life we chose 5 most essential reasons for getting insurance right now!

Life Insurance

People are deciding on life insurance in various situations and stages of their lives, as young students, newlyweds, first-time parents. All that in order to take care of the people you love:

Student loan

Already as a student, you might want to consider getting life coverage. If you’re getting a student loan (and later — any different kind of loan) you’re going to need the cosigners. Doesn’t matter if they’re your parents or other family members — if anything happens to you, the cosigners are fully responsible for the expenses of the loan. In this case, your potential life insurance will possibly cover at least a part of the expenses.

Getting married

People are often applying for life insurance right after getting married. The ultimate reason for that is, of course, their partner’s safety. Unexpected deaths are happening more often than you would think. And again, taking that into account is not paranoia. If you decided to share life with someone, you want to protect them as much as you can, even after you die. This coverage can help you do that.

The birth of their first child

Sometimes we only are ready for the expense of life insurance after our first child coming to the world, and that’s ok, too! In such a case though, you want to choose the right coverage plan wisely. Your life insurance will have to support your spouse and kids in daily life, as well as cover the costs of your child’s education!

Health Insurance

Getting the right health insurance is always a bit tricky but still necessary! It’s just like with life coverage— you never know when something bad might happen so it’s better to have your back covered. Medical emergencies happen all the time and without health insurance, you can get a heart attack after receiving the bill from the hospital.

Choosing the health insurance plan think of your physical and mental condition. How often do you usually go to a doctor, do you have any chronic illness — that is your needs.

Another thing are the offers of different health coverage companies — what is the exact coverage, what do they understand under the terms of a medical emergency, will they be open for negotiations, and so on.

It takes some time on planning but once you’ll decide what company will be the best for you, you can sleep tight. It’s irrational to be constantly afraid of going to a doctor because of financial reasons. Your health is priceless!

Car Insurance

Source:autoinsurancerateonlines.myautoinsurancesolution.com

First of all — having car insurance is lawfully obligatory for every licensed driver. It covers such financial emergencies as car accidents where your car got damaged and/or another driver/passenger/pedestrian got injured. If the accident was your fault, the injured party get the compensation. Car coverage can also cover the costs of car repairs, regardless of who is to blame.

There are three levels of car insurance:

Property damage

It’s about the property of others — either private or public property. The property damage coverage prevents you from unexpectedly high costs of repair and even lawsuit for caused damages.

Comprehensive coverage

This coverage compensates you for the costs of damage that was not a traffic accident, such as vandalism, theft, natural disasters, a collision with an animal, fire.

Collision coverage

It will cover the expenses of repair after hitting or being hit by another car and single-car accidents that either involve, e.g., falling over or a collision with a different object, e.g. a pole or a tree.

Business Insurance

Think of your business as of your second home and observe the close connection between your business and your family. If something goes wrong at your company, your private life will suffer as well. You don’t want your loved ones to experience the financial effects caused by some crisis out there, in your work life.

Since you already are picturing your company as your second home — you want to protect it almost as much as the real one. Your successes, your workers. You’re responsible for them, as well. Business insurance will help you take care of this particular aspect of your life.
Every day some company has to close up, every day we can hear of bankruptcy cases or forced layoffs. Thanks to business insurance we can avoid some of the situations or at least make it less stressful and easier to survive.

And besides every other reason, you can think of — if you’re an entrepreneur hiring people, business insurance is lawfully required!
The complicated world of insurance can be overwhelming. So many companies, different offers, and hidden costs. Nobody said adulthood was easy! If you have doubts even after seeing a customer service representative, don’t hesitate to consult a legal adviser. It’s all in order to take good care not only for yourself but also for the people you love and are responsible for.

The Real Reason Our Politicians Are Not Taking Mental Health Seriously

Published on May 28, 2019

Health/Politics

Despite the fact that mental health problems are steadily increasing in the United States, the national stance on mental health doesn’t seem to be changing. Even though more and more people are being diagnosed with conditions like anxiety and depression, very few improvements are being made to mental health infrastructure.

If there’s such a rapid increase in these issues, why aren’t our politicians making a point of improving the situation? In this article, we aim to answer this question for you.

Mental Health Money – Insurance

One of the main reasons that politicians aren’t taking the mental health situation seriously is because of the potential profit involved. Or, one could say, they are taking it seriously – but instead of focusing on finding a solution, they are reaping off of the profit.

There are a number of ways that mental health insurance companies are doing this.

First and foremost, they make it notoriously hard for patients to get authorized to have help with their treatments. In fact, they are known for paying mental health practitioners so badly and being so difficult to deal with that many psychiatrists refuse to even accept insurance from patients.

This means that patients are paying into their insurance but not being able to receive the benefits that they deserve. Meanwhile, anxiety levels are creeping up, more and more people are paying into insurance funds, and these funds are not being used to improve the state of mental health.

This shadiness further profits the health authorities because desperate patients will still fork over the money to get treatments even if their insurance doesn’t cover it.

What Can We Do?

If you don’t want to buy into the shady health insurance business of America, there are still some options available for you.

One of the best ways to find an improvement is to look into your own potential for self-help. This means perusing self-help resources such as websites like E-counseling.com and Help Guide, books, articles, and magazines. These can help set you on a path towards self-recovery.

Many people don’t need a psychologist or a therapist – they simply need the knowledge that these professionals can offer. If you don’t have a serious condition and you have good self-motivation, you may be able to find this information in one of these resources.

Understanding Insurance: 3 Policies You Should Have and How to Use Them

Published on March 28, 2019

Business

Life is full of risks. When we lead long and prosperous lives, we are bound to run into pitfalls sooner or later. In fact, some of them are inevitable. Thankfully, there are ways to protect ourselves and our loved ones from some of the worst financial consequences of disasters, whether those things be expected or unexpected. If you want to rest easy knowing that you and your family are as protected as possible, then you’ll want to learn about these different types of insurance policies — and how to make the most of them.

Health insurance

You may get your health insurance through your job, or you may have a policy from your state exchange. Regardless, you should always have health insurance coverage. In the US, where medical debt is far and away the largest proportion of bankruptcies, you simply cannot afford to not have yourself and your family covered with a robust health insurance policy.

However, health insurance is not just for those times when you get sick or need emergency care for an injury. The best way to use health insurance is to maximize your coverage for preventative health care. It’s a win-win situation: You’ll get superior proactive care, and your insurance company will be less likely to have to pay out lots of cash to your health care providers — because you’ll be a lot less likely to get sick!

Life insurance

Insurance is always about managing risk. Sometimes those risks are attached to inevitabilities, though. Whether we like it or not, we will someday pass away. When that happens, we’ll want to know that our families and loved ones are cared for. A life insurance policy that you pay into during your healthy years — hopefully many of them! — can be a godsend for your loved ones when you pass, especially if they are dealing with unexpected expenses or the loss of your income.

Life insurance can be used in the simple way in which it was designed, but you should know that it is also possible to draw value from your policy before your loved ones are able to file a claim. A viatical settlement can convert your expected benefits into cash now, which can be a big help with medical bills. Sometimes, and especially in cases of debts that generate interest, having cash now is worth a whole lot more than an eventual payment down the line. In those cases, viatical settlements can be crucial.

Homeowners insurance or renters insurance

No matter where you live, you should make sure that your space and the things within it are protected. Fires and other disasters can rob you of valuables at any time.

And don’t assume that this sort of insurance is for homeowners only. Renters need renters insurance because their valuable possessions are at risk of all the same sorts of disasters that homeowners can face. Most people wildly underestimate the amount of things that they have in their homes and the total value of those objects. Don’t wait until it’s too late to find out how expensive it will be to replace your valuables. Protect your things up front, and be sure to get enough coverage.

You should also explore the options and features of your homeowners or renters insurance policy. Make sure that you’re covered for everything that you think that you are, and examine your options for riders and add-on policies that will protect special valuables like engagement rings, musical instruments, and more. In many cases, you can get protection that covers these things even when they’re outside of your house or apartment!

Health Insurance: a safeguard for health and financial risks

Published on March 26, 2019

Health

There is no one in this world who intentionally wants to get sick or hurt. Unfortunately, such an event is not predictable and can happen at any time. Most people will need medical care at one point in their life, and in case you do not have one, you can end up paying very high amounts for treatments and medical care, depending on the type of disease.

Diseases which need many different types of medicine and medical gear, for instance, diabetes or cancer, can be very expensive over time. People without health insurance are exposed to these costs which could end up in high debts or the worst-case scenario bankruptcy. And as already mentioned, no one knows when such an unfortunate event will happen, and it is always better to be on the safe side and protected from high costs which could result from any medical treatment. Moreover, this is the best way for you and your family always to have the assurance that you will be taken care of in any medical case.

Types of health insurances in Thailand:

In Thailand two different types of health coverages can be found, one funded by the government and one funded privately. The department of medical services at the ministry of public health funds the healthcare. Government hospitals, public health, and medical services are under the control of this ministry. Treatment is completely free for Thai citizens holding a universal coverage health card. The government-funded health care works as a basic type of health insurance, nevertheless, some drawbacks are linked with this type of health care.

The capacity of the government hospitals can be exhausted at times, meaning that it can take a long time until a doctor has time to examine your medical condition. In case of a very serious disease or accident, waiting at the government hospital will make you lose to much valuable time, a few minutes more time could be already lifesaving in serious medical situations. In addition, facilities in public hospitals can be outdated or even nonexistent. In case of serious diseases, the government-funded health coverage is insufficient, is it advisable to get an additional privately funded health insurance.

Private health insurance companies offer many different additional benefits such as no waiting time at private hospitals, appointments with the chief doctor or private hospital rooms. Private hospitals are well equipped with excellent medical facilities and staff. If you are in a severe medical situation, you will be in good hands in these hospitals.

Providers of private health insurance are AXAKrungthai, Bangkok Insurance, Muang Thai Life and Aetna.

In case you are interested to know more about health insurance in Thailand, see Rabbit finance.

The Benefits of Purchasing Individual Health Insurance

Published on March 7, 2019March 7, 2019

Health

With legislation ever-evolving in a fast-paced society, it can be challenging for the average person not only to know and understand all of the options available to them but to be able to discern which is best. Health insurance is one particular area that’s changed dramatically over the past decade.

Due to these changes, many people are discovering that opting out of their employers’ group health insurance and seeking individual insurance is better for their needs. Here are the benefits of purchasing individual health insurance.

Flexibility in Choice

Freedom of choice is important to many, especially in light of the Affordable Care Act. Small businesses and those employed by small businesses have limited options for group insurance plans as it is. For those organizations, it often makes more sense to pursue individual plans rather than group plans.

Individuals who wish to choose their own health insurance can look at both marketplace health insurance and non-marketplace health insurance to determine what’s right for their needs. While there are ten key requirements (known as essential health benefits) for both marketplace and non-marketplace plans, individuals can take advantage of competition and find a great coverage plan that suits their budget.

Cost Implications

source: insuranceagenthollywoodflorida.com

The main perceived perk of using a group insurance plan is the cost savings offered to a company for subscribing in bulk. However, the plan is often priced and treated as an average or generalization of what the majority of employees in any organization might require. It’s important to remember that the majority isn’t everyone.

There are a few ways in which individual insurance might be more affordable than group insurance. For one, the group insurance offering may be quite comprehensive, which is great if you think you’ll require everything that’s included. If you don’t require all the bells and whistles, then you may ultimately be paying for something you don’t need.

Another cost implication to consider is your partner’s coverage. If you have a child who you know will require braces in the next two years or you have substantial medical bills, having double coverage can be beneficial. If, however, that’s not the case, it rarely makes sense for both partners to be paying for separate insurance policies.

The best way to determine cost savings is to take a critical look at what your average medical expenses are and round up for emergencies. Then compare what you would be paying for insurance and saving by using that plan. If it will cost you more to have insurance than it would to pay out of pocket, you know it’s time to opt out.

Not Enough Coverage or Contribution

Just as there are those who end up paying for too much on an employer’s health plan, there are others who won’t receive enough coverage. Many plans won’t cover certain medications, which is often hidden in the small print. This is also an important consideration for small businesses with limited resources. For those who have extenuating circumstances, it rarely makes sense to buy additional coverage on top of an employer plan. Instead, paying for a better individual plan will streamline efforts and ensure things are covered.

Another consideration is that while many employers offer group health insurance plans, not all of them assist with covering the premiums. So, while you may be receiving a slight discount for purchasing a plan through your employer, the benefits don’t extend much beyond that. If your employer does contribute to premiums, evaluate the cost savings before opting out.

Is Opting Out Right For You?

Despite the widely advertised benefits of purchasing group health insurance, it’s not for everyone. Take time to look at what’s covered by your employer, the deductible you’ll have to pay, and the costs and compare that data to some recommended individual insurance providers before making a decision.

What types of insurance policies young people must have?

Published on February 1, 2019

Business/Health

The right time to begin investing is when you are young and are in a better position to manage investible funds after meeting all your expenses. It is during this time that you can devise a workable financial plan and set your goals to secure the future of your family and build a healthy corpus for your retired life. At a young age you not only have the widest possible options, but you can also contemplate risky investments to add muscle to your projected wealth. Among the identified and obligatory investment options with great import is your choice of life insurance policy. It is an important tool that helps you to secure the financial future of your family as well as create wealth in the long term. Life Insurance companies have a wide variety of plans to meet your specific needs with a budget and objective in mind.

Why is insurance important?

Life insurance provides financial security to your family in your absence with an assured death benefit payout to your beneficiary if you meet death during the policy term. If you survive, you are paid maturity benefit comprising sum assured and bonus during the term period. All this and much more is provided against a fixed sum called premium. Insurance premium has flexible options of monthly, quarterly, half-yearly, annual or one-time payments. To top it all, Life Insurance provides for handsome tax concessions under the IT Act 1961. Other than life insurance products, there are also general insurance products which one needs for protection against financial losses in the form of Health Insurance, Motor Insurance, Home Insurance, etc.

What are the types of Life Insurance offered by the insurers in India?

The various types of Life insurance products available in the Indian market with multiple variants of each type make you spoilt for choice. Some of the indicative plans are:

Term Plan: This is a basic insurance product and is also referred to as a pure protection plan. The key feature of best term insurance plan is that it offers a very high sum assured at an affordable On expiry of the term, the premium is not returned.
Endowment Plan: This is also called insurance plus savings plan. You are provided with life cover with a savings element which is allowed to grow with additions declared from time to time.
Unit Linked Insurance Plan (ULIP): It is a hybrid product that provides for insurance coverage and investment benefits yielding high returns through market-linked
Child Plans: Your aspirations revolve around the dreams of your children. These plans specifically cater to the milestones comprising your child’s education or marriage.
Retirement Plans: These plans allow you to plan for your retired life that essentially works out in your favor with a handsome corpus or pension income when you have no other means of earnings to fall back upon.
Health Plans: These plans meet your medical expenses in the event of emergencies, both for you and your dependents, including your parents.

Benefits of Life Insurance:

Life insurance is not viewed as an investment vehicle, but for the many advantages, it provides you with every plan. Some of the key benefits may be enumerated thus:

Life Cover: It protects you from life risk, in turn securing the financial future of your family in your absence.
Investment Vehicle: Many plans offer you the means to earn returns from your investment in addition to the life cover.
Wealth Creation: With returns for investment assured with most plans, you can build wealth, in the long run, catering to your future needs.
Tax Savings: Generous concessions in tax exemptions make Life Insurance products doubly paying and an important cog in the wheel of financial planning. Premium paid in a financial year to a maximum of Rs.1.5 lakhs is tax-free under Section 80C of the IT Act 1961. Death benefit and maturity proceeds are exempt under Section 10 (10D).

What insurance products should the young choose?

The biggest benefit that beckons the young towards insurance products is the premium amount. The premium is fixed primarily by age; so the young start with the lowest premium. You are also able to buy policies with the longest terms which is a boon as the creation of wealth works best over the long term. When you are young the policies to choose to keep your goal in mind are:

Img soruce: europeanbusinessmagazine.com

Term Plan: The best term insurance plan offers you the opportunity to protect your family in your absence with a high death benefit at an affordable cost. .You can augment the cover with several riders like Accidental Death, Disability and Critical Illness. Generally, there is no payout on maturity. LIC online term plan is one such. It is named e-Term which offers a term range spanning 10 to 35 years. The cover and premium vary if you are a non-smoker and you attract additional benefits.
Health Plans: This plan is another must when you are young. It not only provides for meeting financial expenses in medical emergencies, but it also provides you with tax concessions under Section 80D of IT Act 1961 for Rs.25000 paid in the financial year. You can augment your tax concession by buying health insurance for your parents who also get an exemption for a like amount, but if any of them is a senior citizen, the amount is Rs.50000. In case you have a family it makes good sense to buy a floater health insurance which covers for the entire family. You can consider buying Top-ups for enhancing the cover with a much lower premium.
Unit Linked Insurance Plan (ULIP): This plan scores over the endowment plans because of the high returns these plans offer from market-linked instruments in addition to the normal life cover. They come with a lock-in of 5 years. These plans are also tax-free under the provisions of Sections 80C and 10 (10D) of the IT act 1961. The high returns very similar to those from Mutual Funds, help you to nurse the health of your wealth.

Bottom Line:

The advantage of your age helps you to buy the best term insurance plan with a high sum assured over the longest term possible at a low price. When you are young, the options open to you are many and you are amenable to take risks. In such a scenario, opting for LIC plan is an ideal option.