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Are you financially prepared for a natural disaster?

May 27, 2024 by admin_ipohubs

Natural disasters are unavoidable, but one can be prepared to handle these and recover financially. ET Wealth lists how to do so by putting together an emergency financial kit.

The 3-step programme

Here are the three essential steps you need to take at the following junctures to overcome a disaster and get back financially on your feet.

BEFORE

Build an emergency corpus that will help you cover your family’s needs for at least six months. Keep a bit extra for repair or renovation work, or hidden costs like hotel stay and rental car.
Review insurance policies across all areas. Check that you have the right type of cover and adequate coverage.
Secure important documents online as well as in a fi reproof, waterproof safe. Make an inventory of precious belongings. Take photographs or record a video of your car, the rooms in your home and any valuables.

DURING

Tap into your stash of emergency cash as well as investments that you can access for immediate needs, such as liquid funds.
Inform your bank to stop any auto debit payments that are not essential. Ask for a moratorium in case of loans or outstanding credit card bills to avoid late payment charges.
Check with your local authority or community about aid, shelter or provisions being provided to cover daily needs. Share address of alternate accommodation and numbers with office, school authorities, banks, etc.

AFTER

Contact your insurers and provide all documents needed, such as a list of property damage, to file your claim. Check for other eligible covers like warranty on products and insurance offers on credit cards.
Priorities your spending and cut down costs. Find out if you’re eligible for any tax breaks or compensation. Start rebuilding your emergency corpus.
Be wary of scamsters offering you instant loans, quick submission of claims or any other disaster relief. Do not sign any documents without verifying them thoroughly.

Before a disaster strikes
A) Safeguard critical documents
Store important documents and their copies in a locker or safe, an external drive and even on the cloud, if possible. The last option will make it easy to access these during or after a disaster. Here’s a checklist that you can fill up for your documents and share with the family:

B) Check your insurance coverage
Insurance is an important part of financial emergency preparedness as it covers you in case anything bad happens. While almost everyone has health, auto and life insurance, here are two more you can consider.

Flood, fire, cyclone, earthquake and man-made disasters: Check that your home insurance policy covers all these. If your area is prone to a certain type of disaster, such as earthquakes, see if you can add more coverage under such categories.

Renters’ insurance: If you’re a tenant, the house you live in may be covered by your landlord, but your belongings won’t be. So, consider getting a tenant insurance that offers coverage against fire, theft and burglary, electrical breakdowns, manmade hazards, and natural calamities. Some plans will also cover expenses for an alternate accommodation while the damaged house is being repaired or you shift to another apartment.

Insurance checklist
As insurance is one of the most important elements that will help you recover financially, fill up this card with your details and share it with everyone in the family.

Beware of scams after a disaster
A disaster often leads to scamsters coming out of the woodwork. To avoid being conned, always ask lots of questions and documentary proofs. Watch out for:

People who ask you to pay up-front fees to help you get benefits or instant loans.
Con artists posing as government employees, insurance adjusters, law enforcement officials, or bank employees, especially if they ask for payment or financial information.
Suspicious charities offering you financial help if you share personal documents and make a small donation to get a bigger aid.
Anyone sharing a ‘limited time’ offer and pressuring you to take it immediately as it could be something you take in haste and regret later.
Insurance agents who try to sell you policies after the disaster, promising that you will still be able to file a claim and get reimbursement.

Never sign anything if the other person isn’t giving you time to review it. Ask a trusted friend, relative or lawyer before taking a decision.

By Namrata Dadwal ( Economics Times )

Navigating the Complex Landscape of Insurance: A Comprehensive Guide

by admin_ipohubs

In a world marked by uncertainties, insurance stands as a financial safeguard against unforeseen risks. However, choosing the right insurance can be a labyrinthine process, necessitating careful consideration of various factors. As a seasoned financial journalist with a profound understanding of the industry, I present a detailed guide to help you make informed decisions when navigating the complex terrain of insurance.

1. Precise Definition of Insurance Needs:

Before delving into the plethora of insurance options available, it is imperative to precisely define the type of insurance needed. Whether it’s health, life, auto, or home insurance, a clear understanding of specific coverage requirements lays the foundation for a tailored and effective insurance plan.

2. Thorough Assessment of Coverage Amount:

Conducting a comprehensive assessment of the coverage amount is crucial. For life insurance, this involves calculating the funds needed to cover outstanding debts, provide for dependents, and meet future financial needs. In health insurance, consider the nuances of coverage, such as hospitalization, preventive care, and prescription drugs.

3. Evaluation of Premiums and Affordability:

The financial commitment involved in insurance is encapsulated in premiums. Scrutinize the cost of premiums and ascertain their compatibility with your budget. Comparing quotes from multiple providers is essential, providing insights into the cost-benefit trade-offs. Consider the balance between a lower premium and a higher deductible, keeping in mind long-term affordability.

4. Understanding Deductibles, Copayments, and Policy Limits:

Beyond premiums, understanding deductibles, copayments, and policy limits is paramount. Higher deductibles may result in lower premiums, but they also translate to increased out-of-pocket expenses in the event of a claim. Delve into the policy limits to ensure they align with your coverage needs.

5. Thorough Review of Exclusions and Limitations:

Unravel the fine print of insurance policies by conducting a meticulous review of exclusions and limitations. Knowing what is not covered is as crucial as understanding what is covered. Seek clarity from the insurance provider on any ambiguities to avoid unwelcome surprises when a claim is made.

6. Evaluation of Provider Reputation and Financial Stability:

In the realm of insurance, the reputation and financial stability of the provider are non-negotiable. Research industry ratings, read customer reviews, and analyze the provider’s track record in fulfilling obligations. Opting for a financially stable and reputable insurer ensures peace of mind and confidence in the policy’s efficacy.

7. Understanding Renewal Terms and Conditions:

Anticipate the future by understanding the terms and conditions related to policy renewal. Some policies may have automatic renewal clauses, while others require reevaluation and adjustment of premiums. Awareness of any changes in coverage or premiums upon renewal is key to maintaining comprehensive protection.

8. Claim Process Efficiency and Customer Service Quality:

The true test of insurance lies in its claim process. Familiarize yourself with the steps involved, the documentation required, and the expected timeline for claim settlement. Equally important is the quality of customer service provided by the insurer. Efficient and helpful customer support can alleviate stress during challenging situations.

In conclusion, the journey through the insurance landscape demands diligence and a nuanced understanding of the intricacies involved. By considering these eight factors, you equip yourself with the knowledge needed to make well-informed decisions, ensuring that the insurance you choose aligns seamlessly with your financial goals and risk tolerance.

Finance Your Future Dreams Through SIPs

May 4, 2024 by admin_ipohubs

Any dream can be achieved if you work towards it. Building wealth is no different. A Systematic Investment Plan (SIP) can help you work towards your financial goals. Let us look at the features of a Systematic Investment Plan and how it can help you fulfill your investment objectives through SIPs.

1. Finance your future dreams:

The ultimate objective of investing is to achieve financial goals like buying a house or creating a corpus for your children’s future education. SIPs can help you achieve these goals over a period of time through small but regular investments.

2. Minimize your exposure to stock market volatility:

Through an SIP, you have the option to invest regularly in equity markets irrespective of the bull and bear phases. By investing a fixed amount every month, you may be able to pick up more units when the prices are low and vice versa so that, over a period of time, the acquisition cost per unit may come down. This is called rupee cost averaging.

3. Become disciplined with savings:

SIPs help you inculcate a regular saving habit as they require you to invest a fixed sum of money on a regular basis. Investing regularly in small amounts may often lead to better results than investing a lump sum.

4. SIPs offer flexibility:

SIPs offer you the flexibility to select an amount that you intend to invest. SIP is a simple, convenient and affordable way to invest for your future with as little as 1000 every month.

5. Create wealth with the power of compounding:

Compounding is a disciplined investor’s best friend. A Systematic Investment Plan (SIP) is one of the most effective means to beat market volatility and benefit from the enormous power of compounding over time.

With SIPs, you can dream bigger and achieve much more over a period of time. Start investing through a SIP today and work towards realizing your dreams.