Choosing the Right Health Insurance: A Quick Guide
Here’s a quick guide to help you choose the right plan, packed with all the must-have features to keep you covered.
Key Features to Look For:
- No Co-Payment Hassles: Avoid policies that make you split medical bills! Look for plans that cover the full cost so you don’t have to dig into your savings.
- No Room Rent Limits: Some policies cap your room rent, leading to unexpected expenses. Choose a plan that doesn’t restrict your comfort during hospital stays.
- No Disease-Specific Limits: Illnesses can be expensive. Pick a policy without caps on treatments for specific diseases to avoid hefty bills.
- Short Waiting Period for Pre-Existing Conditions: Got a pre-existing condition? Find a policy that reduces the waiting time before you’re covered.
- Pre & Post Hospitalization Coverage: Medical costs don’t start or stop at the hospital door. Ensure your plan covers at least 30 days before and 60 days after your hospital visit.
- Restoration Benefits: If you claim, you want your coverage back quickly, especially with family plans. Restoration benefits reset your coverage!
- Daycare Treatment: Even short procedures can be pricey. Make sure your policy covers these, no 24-hour stay required.
Bonus Features That Add Value:
- Home Care Coverage
- Annual Health Check-Ups
- Alternative Medicine (Ayurveda, Yoga, etc.)
- Loyalty & Wellness Bonuses
(Ayurveda, Yoga, etc.)
Choosing the Right Insurer:
- Track Record : Stick with insurers who have been around for over a decade.
- Claim Settlement Ratio : Look for companies with a 90% or higher claim settlement ratio.
- Network Hospitals : Ensure access to 8,000+ hospitals for stress-free care.
: Stick with insurers who have been around for over a decade.
: Look for companies with a 90% or higher claim settlement ratio.
: Ensure access to 8,000+ hospitals for stress-free care.By keeping these factors in mind, you’ll secure a plan that offers peace of mind when you need it most!
(Contributed by MF Alam, Sr. Research Analyst, Hum Fauji Initiatives)
Unified Pension Scheme and NPS: What You Need to Know for Your Retirement
Why Choose UPS?
- Guaranteed pension of 50% of your last drawn salary after 25 years of service.
- Family pension at 60% in case of unfortunate events.
- Even with 10 years of service, you are assured a pension of ₹10,000.
- Your pension grows with inflation, ensuring you stay financially secure.
- Along with gratuity, you’ll receive a lump sum payout for your service.
When NPS Could Be Better for You?
While UPS offers guaranteed benefits, NPS might suit you if:
- You prefer flexibility: NPS is portable across jobs, meaning your pension can follow you if you switch jobs and sectors.
- You’re open to market-linked growth: NPS allows for investments that can grow over time, depending on the market, offering higher returns if your investments perform well.
- You want more control: With NPS, you have a say in how your pension is invested, with options for equity, government bonds, and more.
For Defence Personnel: It does not affect them since they anyway have guaranteed non-contributory pension. We have always maintained that NPS is of no use to those members of armed forces who will get the pension since there are much better investment avenues available than NPS and the tax benefit of NPS is inconsequential for all such armed forces personnel.
How to Choose?
If you’re already under the Old Pension Scheme (like the armed forces), UPS won’t affect you. But for those on NPS, reviewing how it’s performed for you and comparing it with UPS benefits can help you decide whether to switch. Talk to a financial advisor to make the best choice for your future!
(Contributed by Vishakha, Relationship Manager, Team Arjun, Hum Fauji Initiatives)
The Psychology of Spending and How to Manage It
While we often believe we’re rational about spending, but emotions can easily drive impulsive purchases and regrettable decisions. By understanding the psychology behind your spending habits, you can make smarter choices and improve your financial well-being.
Emotional Spending
Ever heard of “retail therapy”? It’s real! Buying something new can boost your mood, but if done too often, it can lead to debt and derail your financial goals.
Tip: Before buying, ask yourself if it’s a need or just to feel better. Try exercising or calling a friend instead!
Social Influences
Social media often creates pressure to keep up with friends or influencers, fueling the fear of missing out (FOMO). This can lead to unnecessary spending as you try to match others’ lifestyles.
Tip: Remember, social media only shows the highlights. Focus on your own financial goals instead of comparing yourself to others.
Instant Vs Delayed Gratification
The convenience of online shopping makes impulse buys easy, which can hinder your ability to save for larger, long-term goals.
Tip: Wait 24 hours before checking out to decide if the purchase fits your long-term plans.
Break the Cycle
To overcome unhealthy spending habits:
- Track your spending.
- Set clear financial goals.
- Stick to a budget.
- Use cash or debit cards for control.
- Seek help from a financial advisor if needed
(Contributed by Anjeeta, Financial Planner, Team Arjun, Hum Fauji Initiatives)
Question: I have some extra money to invest. Should I wait for a possible market drop before investing, or should I invest now to take advantage of current opportunities?
Our Reply: Timing the market is incredibly challenging. Historical data suggests that missing key market days can significantly reduce your overall returns.
This data highlights that attempting to time the market could lead to missed opportunities. Instead of waiting for the “perfect” time, a more effective strategy is regular, consistent investing through Systematic Investment Plans (SIPs). With SIPs, you benefit from rupee cost averaging, where you buy more units when prices are low and fewer when prices are high, reducing the impact of market volatility over time.
Waiting for a market drop means you might miss out on current opportunities. Historically, markets recover after downturns and reward long-term investors who remain invested through market cycles.
For example, if you had invested ₹1 lakh in a broad market index 10 years ago, your investment could now be worth approximately ₹3-4 lakh, despite experiencing multiple market corrections along the way.
Lastly, consult a financial professional to create a tailored plan that aligns with your risk tolerance and financial goals. They can guide you on balancing your investments while keeping an emergency fund for unexpected expenses.
(Contributed by Team Sukhoi, Hum Fauji Initiatives)
