Health Insurance – Need of Health Insurance

Today, health insurance has become an important element in our life. Because nobody knows when he has to face a critical illness and pay huge amount to recover from that illness. It is very difficult to pay whole amount instantly. And when you don’t find any way to fetch the money then you go to your relatives for financial help. The moment when you go to your relatives you feel hesitation for taking financial help. To avoid that situation you need some preparation which health insurance provides you.

If you don’t have health insurance plan, you will be in big trouble in the event of hospitalization out of critical illness or injury. Therefore you should insure your health against health insurance and take care of by acquiring the best health insurance plan from insurance providers. There are many insurance providers with different health insurance plan. Now this is your job to identify the best health plan suited for you.

Health Insurance Covers

• Cashless Hospitalization: It is offered by all non-life insurers.
• Room and Boarding expenses: Limits are varying from company to company.
• Ambulance charges
• ICU charges, doctor, consulting, anesthetist and surgeon fees, operation and other diagnostic and surgical material costs are covered.
• Pre and post hospitalization expenses are covered.
• Day care expenses are also covered.

Important points to be taken care before buying health insurance plan

• Before buying the health insurance plan you must read the policy exclusions and limitations in various covers.
• You should know the number of network hospitals where you get every facility provided by your insurer.
• You also find out the hospital which is nearest to your location.
• You must know the name of critical diseases being covered by insurers.
• You must disclose all the pre-existing diseases because they don’t cover all critical illnesses. They cover these illnesses normally after 2-3 years.

Mortgage Loan Definition

Mortgage loan means a loan which is approved against property. In present time most people do not have enough cash to invest in their projects. Somebody wants to purchase a house and somebody wants to set up a new business. For that they need more cash. Someone can go for personal or business loan. But the problem is that they can not qualify the criteria of lenders or financial institutions. Because they charge higher rate of interest for personal and business loan which increases the installment amounts. This kind of loan is unsecured because lenders can not keep any property as collateral. That is why they charge higher rate of interest.

If you go for the mortgage loan you will be charged less interest and you will also get long period to repay the amount. In this way your amount of installments will be reduced. But in mortgage loan you have to keep your property as collateral so that if you fail to repay the amount, the lender will have the right to take the property.

Mortgage loan is a secured loan. That is why lenders do not charge higher rate of interest. And you also get more time to pay the amount of loan. If you want to take mortgage loan, you should have complete knowledge on mortgage. Learn what to do before applying for a mortgage, understand complete process and make a plan that how to use your loan amount.

For getting any kind of loan your credit will play key role. If you have bad credit in the market then it will be very difficult to get loan. A mortgage loan is a big deal. The bank risks a lot of money. For only that reason they will check your credit report whether you could be able to return back the amount or not.

Apart of these things your income is very important to get loan approval. The lenders will definitely look at your income that how much amount you can afford. These things are very important to get a loan.

Disadvantage of Having Bad Credit

Bad credit shows your creditworthiness based on your payment history on past and how much debt you are carrying. There are a lot of financial companies and lenders who have different criteria to determine one’s creditworthiness. According to their own rules they decide whether one has good or bad credit.

If you have bad credit then you face several problems to get financial help from lenders or financial institution. Because they are afraid of recovery problem. In that case if you want to purchase a car or home or you want to set up a business then you would have to save more cash to fulfill these requirements.

Under any circumstances if you get approval for loans, you will have to pay higher rate of interest and higher installments. And this is the right time when you can convert your bad credit into good credit by paying your installments within due that. To achieve this target you will have to control your finance by identifying your income and expenditure. You need to identify your source of income and how you are spending your earned money. In this way you could be able to trap your unnecessary expenses and can reduce it.

How much you could be able to save your earned money, it will be benefited for you in paying debt. If you will be able to pay your debt within due date you will again be able to rebuild your credit. If you have good credit, you can achieve your financial needs.

Knowledge on finance market

Should we have knowledge on finance market?

Without having knowledge on finance market you couldn’t be able to invest your money anywhere. You should have proper knowledge on financial market and the features of financial instruments. There are many financial companies and they have different products where you can invest your money.

Before you invest your money you will have to understand the features of these products. Because every financial company has different investment policy to attract investors. They offer different returns on different investments. It depends on you that what kind of returns or investments you need to achieve your financial goal.

There are many instruments where you can invest provided you should have deep knowledge on it. You can choose your investment for long term or short term whichever is needed to fulfill your requirement. If you need life coverage and high return then you should go for ULIP plan. But you should have knowledge that investment in ULIP plan is subject to market risk. If you are not ready to take the risk then you should go to invest in bond or fixed deposits where you can get fixed return and secure your investment.

If you think that at any moment you may need the amount you have invested then should choose to invest in share market or mutual fund. Here you are free to withdraw your invested money at any moment you need. In today’s market you will get many investment plan but it depends on how much you aware of these policies. If you have sufficient knowledge on finance then you can identify your financial needs and choose right investment plan.