FLAME Newsletter - October 09, 2013


QUOTE OF THE WEEK:

“What essentially binds customers to their bank is quality of services offered, the fairness and affordability of pricing and the promptness of service” — Dr KC Chakrabarty, Deputy Governor, Reserve Bank of India

YOUR FINANCE DEMYSTIFIED:

Tips to care about your medical insurance policies

A very important doubt that pops up in your mind when you think about the health insurance policy is the coverage amount. How much is the right amount for my health insurance coverage? Every individual will have this question and needs to find the right answer so as to avoid financial complications in the future. Even a decent coverage amount today might look meager in the near future. Medical inflation proves to be high and individuals have to plan for the next 15 years accordingly.

Here is a simple math: The current medical inflation rate in India is 15%. Assuming a 38-year old person has taken a policy of Rs. 3 lakh for his medical coverage, and then it would have translated into Rs. 9.31 lakh at the age of 65 years. (3 lakh * (1 + 0.15) * 27)...
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Buy insurance online for easy claim settlement

Get top up plan to enhance your health insurance

Mediclaim policies are useful for minor cases of hospitalisation or surgery. However, they may be insufficient to meet the high costs involved in treatment of ailments like a heart condition, a stroke or an organ transplant. This is where top up plans come into the picture.
Top up plans serve as add-ons to your indemnity health insurance policy. They are similar to the base health plan, except that they come with a higher deductible limit. The deductible—the amount one would have to settle before the top up kicks in, usually ranges from Rs. 1 lakh to Rs. 5 lakh...
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Common health insurance mistakes




Health insurance for your parents
Anuja Gupta, 63 years old, recently renewed her health insurance for senior citizens for the second year. Ms Gupta felt that she was lucky as she had an adequate health insurance cover. When Ms Gupta, a widow, was suddenly hospitalized a couple of months back, she didn’t have to worry about the high cost of her medical treatment because of her health insurance policy.

Ms Gupta said that during her recovery her savings kitty was impacted the least because of her health insurance policy. If she didn’t have her health insurance she would have probably contributed more to her recovery than anything else...
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DID YOU KNOW?

Why take a personal accident policy if you have a term cover?
Acting wisely, Mr. X has been planning his finances ever since he started earning. On the recommendation of his financial advisor, he took a term life insurance policy to secure his dependent wife and children against financial adversity in the event of his demise. He also took indemnity health insurance plans for each family member for protection against medical exigencies. Unfortunately, Mr. X meets with an accident leading to severe fractures which incapacitate him for a year. Whilst the health insurance suffices for a part of the hospitalization expense, Mr. X is forced to dig into his savings to meet the remaining treatment expenses. More importantly, with the only bread-earner unable to work for a year, the family faces severe difficulty in making ends meet... Read more

TERM OF THE WEEK

Non-deliverable forward

A non-deliverable forward is a cash-settled, short-term forward contract on a thinly traded or non-convertible foreign currency, where the profit or loss at the time at the settlement date is calculated by taking the difference between the agreed upon exchange rate and the spot rate at the time of settlement, for an agreed upon notional amount of funds.

IN THE NEWS THIS WEEK

UIDAI e-KYC accepted as address, identity proof: SEBI

MF assets fall by 4.5% in Q3 2013

FM likely to raise PF wage cap to Rs. 15,000 per month

MF transactions via stock exchange infrastructure allowed: SEBI

IRDA extends deadline for life insurance plans till Dec 31

Insurers won’t be allowed to sell highest NAV plans from Oct 1

ABOUT FLAME

FLAME (Financial Literacy Agenda for Mass Empowerment) is an IIFL initiative to promote financial literacy amongst the masses in order to make them an integral part of India’s spectacular growth story.

In an era of accelerating GDP and rising per capita growth, financial literacy has become more critical than ever before such that we all reap the tangible benefits of the nation’s economic prosperity. Financial inclusion has been quite high on the governmental agenda, given its emphasis on widening the Banking & Financial services network across the country. IIFL’s FLAME initiative stands committed to complement this effort by helping common people gain financial growth and security though better awareness and education on the variety of financial products while avoiding the lure of and loss from unrealistic claims made by unscrupulous agents and ponzi schemes.

Our objective is to light a FLAME, as the name suggests, which will set ablaze a chain of FLAMEs across the country. The new-found light of knowledge will undoubtedly dispel the dark clouds of financial illiteracy and ensure the bright sunshine of financial growth and prosperity.

This portal is but one of the various IIFL initiatives that would be part of FLAME.



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