Choices!

Life is all about Choices, the choices that we make and its consequences that follow.

Entrepreneurs who were on an expansion spree now want to pause, survive and exist first.

We moved around endlessly around the globe polluting the environment, we now want to communicate digitally and stay home safely.

We wanted excitement, parties, entertainment all the time, but now we just want to live in peace.

We chose air conditioned rooms, but now we ask for open air and sunshine.

We chose cooked and processed foods, now we ask for natural and safe foods.

We loved using animals and our natural resources, but we now need the environment.

We loved being on our own, but now feel lonely and need people to talk and be with.

Gadgets were important to us, and dictated our lives, but now we just want to be Human and Natural.

Jobs and businesses were the only thing that we wanted but now just need some happy time with our loved ones.

We never listened to anybody and wanted to just talk, now we want to listen to people, listen to the nature and understand the world where we live.

Health was the last priority after we enjoy our lives, but we now seek only health, and realized that Wealth can happen anytime if we have Health.

Arrogance is now replaced with prayers, Attitude of Gratitude and Attitude of seeing and focusing on the goodness in everything.

Money meant Power, but now Health is Wealth.

Investment and Speculation was more important, now Insurance and Savings are priorities.

Doctors were treated like paid servants, now they are gods and saviors.

People rushed and pushed at Temples, theatres, malls, restaurants and public transport, now we respect and appreciate the need for our private space and social distancing.

Our ego's made us feel invincible, now we pray for survival.

Only I was important, now WE need each other.

Religion, Politics, Financial status, Countries set us apart, now we are all one for survival.

Man progressed ignoring the natural scheme of things without a Goal. Now we just want to reverse the wrongdoings and set things right for a common purpose.

We abused science and technology to lead a fictitious life outside. We now want to be spiritual and return back to reality within.

People who chose Urban cities for work and living, now dream of living at the countryside.

We were in an endless rat race, now we want to pause and be human.

Man chased and struggled for his greed, and now realise what he really needs.

Choose to see the positive side of life, Choose to connect to the universe spiritually, Choose to see the goodness in people, Choose to see the goodness in everything.

Finally it's all about the choices that we made in the past, and the choices that we make now. Choose wisely, Choose Life, Choose Love, Choose Health, and Choose Happiness. All choices will have consequences, Make good choices today so that you don’t have to regret tomorrow. It's all about your choices. The choice is yours!

 

- Dr. Ashok Chandran

ashok@ac.co.in

 

#Choices

#Pandemic

#Covid

#LifeAfterCovid

#Transformation

#Entrepreneurship

#ChooseHappiness

A peek in to the Future of Entrepreneurship and Way of Life. – Dr. Ashok Chandran

 The true nature of man and the human potential is revealed only in times of crisis. Enterprises Prosper or Doom based on their relevance to the masses at the opportune time. Staying relevant by constantly reinventing yourself is the key to success.

The markets tanked and we lost valuations, but more valuable is the need to understand the plight of people, the risks they carry and the future for all of us. Markets will definitely correct, normalize and grow, but the impact of the virus and the worldwide lockdown will leave a permanent mark in the lives of people and on businesses.

Amidst all this mayhem the people really suffering are the ones who earn their living based on their daily earning. The term ‘hand to mouth existence’ was once used only for the very poor strata of the society, but is a stark reality today for entrepreneurs and businesses too who need to earn income every day for their existence and meeting their expenses. 

Many small scale manufacturing units are completely shut down. Consultants, trainers, coaches and professionals have stopped practicing.

EMI’s and monthly fixed expenses will never stop for the household, Entrepreneur or Business, while the incomes have dried up for many.

Many businesses were already going through a challenging phase. To top up, in an already tough market the Corona Virus injected a fresh crisis and confusion almost choking or killing the Entrepreneur and Businesses.

So what is really happening? And what can we expect in the future?

Corporate India is not only fulfilling its mandatory CSR responsibilities, but a good investment is also happening from the governments to fight the Corona Crisis.

Citizens also contribute to the Prime Ministers fund specifically for the Corona Crisis.

Philanthropists, Cooperative societies, religious trusts, NGO’s are all contributing in their own ways to fight the pandemic.

While the health workers, police and other officials are on the field and doing their best even at the cost of their lives, many have chosen to just take it easy and chill with a break. There are also leaders in companies and organizations who refused to idle away precious time and have gone all out to collaborate digitally to perform or even out perform in their businesses remotely. There are also leaders who chose to support their teams for skilling or reskilling themselves. Many businesses also modified their business processes to adapt to remote working and business generation.

There is no doubt that the medicine and vaccination for Corona Virus will be found, but are we ready for battling such new viruses and crisis in the future? How vulnerable are we to such unknown attacks. Will everything be the same after this health crisis? Almost every five years we have seen some or the other kind of financial crisis in the markets and we also overcome it, but when the combination of health crisis and financial crisis has hit us this time that too very badly, its high time for some forced learnings, thinking and decisions . Also this time the impact is likely to transform many things around us.

Startups have identified generic needs in the markets and are trying to launch products and services that will cater to the needs of people. Now that in many verticals the priorities and needs of the consumers have changed and it may no more be viable to create and run a startup with the same model that was originally planned. Moreover many Investors have lost money in the market and will want to play safe and may want to curtail further investments in startups whose products may not fit the new scheme of things in the market. Many startups will have to be flexible to provide value in newer ways than what was envisaged by them originally. One good thing for new entrepreneurs is that they will go frugal from the beginning and they will get advantage of doing many things digitally, cost-effectively and appropriately right from the beginning.

Managing the working capital is the key to existence. Enterprises are making sure that the most important needs are met on priority, and the good to have and luxury purchases are completely stalled. There will be layoffs and salary cuts in most organizations.

Businesses will definitely stand back on its feet and reclaim its true valuations in the market. Products that have value will continue to be consumed by the people. The traditional, stable, must-have product making companies will definitely grow and prosper.

Entrepreneurship will be the way of life for the future as enterprises will not be able to afford full time employment for many, and many professionals will be forced into consulting and contract work when the job markets are not in their favor.

The markets were not great even before the lockdown, and enterprises had already geared up with Plan A, Plan B and even Plan C. So now they will move directly in to the most aggressive survival plan instead of a quarter wise wait and watch model of financial planning and investments.

Companies who needed an excuse for downsizing has now got a strong reason and they will use the axe at the earliest possible moment.

Employees in their comfort zones will have to perform or perish, as the companies themselves have to be competitive to be able to survive.

Not only entrepreneurs but you will see an intrapreneurial mindset within organizations too, as people will be forced to stretch and perform like an entrepreneur within limited resources within their departments or functions with clear goals.

The post pandemic years will unleash an era of a new breed of entrepreneurs who are educated professionals, experienced, well grounded, matured, talented, ambitious, young and vibrant. They will be genuine and attractive to the investors, and will generate employment that is much needed. The governments will also support entrepreneurs as that will be the only way for taking the economy forward, after a terrible crisis and downfall.

Social Entrepreneurship will hold higher demand and respect in the new scheme of things where there is a general focus on all citizens and not on selective few. There will be more of innovative products and offerings that will emerge for mass must-have needs and less of niche glamour products for select audience. The government will encourage and guide entrepreneurs to execute socially relevant projects and products, which satisfies the needs of the masses and also creates employment.

Professional employees are not having the upper hand anymore and salaries will be cut down to more reasonable levels; in many cases it will be a kind of correction to make salaries more realistic.

The biggest of organizations and the most qualified professionals also resist change. Change management is tough, I have personally seen companies and employees reluctant to adapt computers, digitization, ERP, Internet, Etc. in business for a long time. However when you are forced to adapt change or perish, willingly or unwillingly things change and sometimes transform for the better.

Reskilling will be needed for almost all industries as many organizations have used this opportunity to invent new processes that are more efficient, digital, less expensive and automatic. Thus the digital transformation that the CIO’s and CEO’s were trying and talking for decades have either forcibly or by design happened through a Virus.

The technology push will unleash innovative and efficient digital processes in almost every field like health, shopping, Insurance, Investment Brokers & Distributors, Banks, Food Delivery, Consulting, real estate, Automobile, Music, entertainment and almost everything that you can imagine. Technology will regain its importance and innovative work will happen to enhance customer experience, automate and to go digital as a strategy.

Sales function will be in demand as the cash flow inwards is the key to keep the business alive.

Finance function will also be very important to control and monitor the working capital needs for survival.

Travel will reduce significantly as corporates have adopted remote working and Web Meetings as a new Normal.

Telemedicine will be available to all as it was used extensively for doctor consultations during lockdown. Mental health will also gain importance as the need for the same will be higher.

Virtual meetings, Virtual Teams, Virtual Collaboration and even Virtual companies will emerge in different verticals. Also expect innovative business models and products both digital and otherwise that will transform the way we live our lives. Tools like Slack, flock, Microsoft Teams and WebEx Teams will emerge powerfully to collaborate, meet and manage projects and teams more effectively in a virtual environment.

Online Trainings and Education will emerge and e-Learning will flourish as everyone has experienced online learning and Webinars, and a good part of it will be the new Normal due to its effectiveness and scale of reach. Teachers and Coaches have realized that the reach they can have online is unmatched compared to the traditional classroom mode of teaching/coaching.

Healthcare systems will improve significantly and so will their costs.

Based on past experience of the industry business will increase significantly for Health Insurance and Life Insurance, as people are now aware of the thin line between normal life and a crisis. Savings and Investments will also be more systematic and higher as people will want to be ready with an exigency corpus for all kinds of crisis situations in the future.

Focus on Natural resources, increasing Immunity, Health & fitness, Yoga, Spirituality, Ayurveda and research will increase. Doctors, Nurses, Health workers and Police will have more respect and dignity as they were the real saviors on the field for the citizens in times of crisis.

People and Enterprises will have more gratitude towards God and each other for what they have, and will crib less for more or for what they don’t have.

Irrespective of any class distinctions, we all know that we are equally vulnerable in the area of health and this will probably alter the way we treat other people. Dignity of Labor will emerge in a new light as people realize the importance of cleanliness, domestic labor, drivers, plumbers, electricians, house-keeping staff, blue collared workers and others who were earlier treated as insignificant.

Just like the differences between the upper and lower class of the society will come down the differences between Advanced, emerging and not so rich economies will reduce. New equations of power, politics, business and Money will emerge between nations.

Since the equation between countries will be different and the markets will behave as per their culture and impact of the lockdown, buying patterns will change, Supply chain models will be reconfigured, Production centers will be relocated, new markets will emerge

Advertising world will see a huge downfall as enterprises realize that any amount of money will be insufficient to lure the grounded consumer. Enterprises will focus on selling what is genuinely needed by consumers’ at the most competitive rates. Unwanted glamorous advertising will be replaced with innovative digital marketing to keep the costs to the minimum.

Media will lose its power on people and true journalism will emerge. Social media and people’s voice will emerge stronger than the political and advertising driven media that has misrepresented the facts of the world for vested interests for long.

The world will not end, we will come out victorious over this pandemic, we will continue to live happily; what really matters is whether we used this period to sharpen our skills, transform our mindsets, dream and define new possibilities that is inspiring and is our true calling and purpose of life. Our positive attitude and actions at all times is what define our future.

Nothing much will be lost if the learnings from the crisis is leveraged for the betterment of mankind. Let’s dream of a new world of opportunities, Entrepreneurship and optimism that is truly democratic, tolerant, spiritually mature, financially stable, Performance driven, fair to all, healthy, culturally rich, innovative, advanced yet grounded, educated, animal and nature friendly. Cheers to a New way of Life, cheers to a New Normal.

Dr. Ashok Chandran, is a Business Consultant, Wealth Advisor, Executive Coach, Author of the upcoming book “The Magic of Entrepreneurship” and a believer in the endless possibilities of human potential. You can reach him on ashok@ac.co.in

#Covid-19

#Corona

#FutureOfEntrepreneurship

#FurureAfterCovid-19

#NewNormal

#FutureWayOfLife

#Entrepreneurship

#TheMagicOfEntrepreneurship

Is your corporate Health Insurance Adequate for you and your family?

Is your corporate Health Insurance Adequate for you and your family? - By Dr. Ashok Chandran, ashok@ac.co.in

Your Company Group Health Insurance Cover may no more be adequate for you and your family’s health and financial protection. Here is a reality check for all employees.

While all Mediclaim policies help you in some way, not having the right and adequate policy cover is as good as not having a cover.

Most youngsters today bank on their company Insurance Policy for taking care of their family’s’ and their own Health Insurance needs. However most employees never go through the policy kit unless there is an emergency; In the current times the Group Mediclaim Policy almost always throws a shocking reality at them when they need it the most. During these tough times you not only need to keep your policy documents handy, but you should also know the exact coverage and wordings of the policy.

Irrespective of whether you work in an office, a factory, for a large multinational company or for a small entrepreneur you need to know what you are covered for, to be prepared and to avoid a last minute crisis.

Check out the points below to understand your reality and ensure that you and your family are covered adequately with the best personal comprehensive health Insurance policy.

1) Health Inflation/costs is almost doubling every 5 years. 5 years back the surgery that cost Rs. 2.5 Lac today costs more than Rs. 5 Lacs. Today's treatment/surgery that costs Rs. 5 Lac will cost more than Rs. 10 Lac after 5 years.

2) The cost of ICU is around Rs. 1 Lac per day in many good hospitals. For a single incident like covid or a major surgery a patient may sometimes require around 5-7 days of ICU care and 3-4 days of normal room; this itself will cost around Rs. 7 to 10 Lacs. And if multiple members of the family get affected then the total cost to the family can be exorbitant and unbearable without a good and adequate Insurance cover.

3) The Pandemic has increased cost of every treatment as the risks of infection is very high. Safety Procedures and compliances in the hospital and need for disposing equipment’s and PPE kits after every treatment has increased costs exponentially.

4) Company Insurance cover in most cases are for their own compliance and legal requirements or part of a limited employee benefit program, and may not fulfill your real Health Insurance requirements.

5) You may not need it now when you are healthy, but with age if your health deteriorates you will never be able to get an Insurance, even by paying more money.

6) You may not be employed with the company forever, it will be difficult to get a policy of a good value at a later part of your life. These are tough times jobs are uncertain, also as we progress in life we will move on to other companies or entrepreneurship. Each company has its own kind of mediclaim policy and many companies irrespective of being big or small do not have any such scheme at all. Many companies also do not cover pre-existing diseases or declined risks from day one of your entry in to an organization.

7) Do not procrastinate once you decide to do something important in life. If you can afford it now and have money now, just do it now, you may not have ready money later and your health situation may also not be in your favor.

8) No increase in Sum Insured will be possible ever, in case of unexpected Critical Illness involving huge costs.

9) Insurance can be difficult and will not be possible atleast for 6 months if you are detected Corona positive and even if you have got treated successfully.

10) Companies normally offer the least cost Group Mediclaim with minimal features with coverage of a few lacs per person. It may sometimes not cover all members of the family especially your parents. The coverage may also put limits to the room rent and a cap on different treatments, limiting your options for treatment.

11) You need to check if your policy covers you in a cashless mode in the hospitals near your office and home and has a good network in India.

12) You need choice of good treatments, doctors and hospitals with all facilities and specialities for your precious family, and not just basic healthcare from a local nursing home.

13) Major surgeries and organ transplants involve huge costs and may be needed any time for anyone.

14) You get your tax benefit under Sec 80D in your Income Tax if you pay for yourself, family and parents directly.

15) Even some of the Government BPL/Subsidy schemes offer more than Rs. 3 Lacs cover and this kind of value is definitely not for all and will not serve your requirements.

16) The flagship product of Star Health, the market leader in this space in India, is the most selling and popular Comprehensive Health Insurance, which covers you for Rs. 1 Crore; High sum insured is the new normal.

17) Your savings and financial goals in life will be jeopardized at one go in case of a medical emergency, if you are not adequately covered, and can cause hardships, lack of good treatment, debts and loss of peace and happiness to the family forever.

18) In case of your own policy you have the choice to increase the sum insured or port it to a new scheme or to port it to a new insurer, and get the best and adequate insurance for yourself and your family, however in case of group mediclaim such flexibility of porting to the best and adequate solution will not be possible.

19) Worldwide there is increase in life expectancy, the need for a good and adequate Health Insurance is highest post retirement. All corporate medical insurance facilities end with your retirement. It is very difficult to get the best medical cover especially when you are over 65 years old as all insurers have an upper limit for entry in to their comprehensive policy; As some or the other ailment/disease comes in due to old age, the insurance is declined in many cases where the senior citizen needs it the most. Also if a new policy is issued to senior citizens the sum insured will be limited and there will be many limits and co-pay applicable under such special insurance products for seniors.

20) Post retirement life is for peace and happy living with spouse, kids and grandchildren. If you have an adequate Health cover of your own, right from your healthy young age, it will continue to serve you; It will take away the financial burden of health emergency not only from your retirement funds/corpus but also from your family’s savings. You will not only be financially independent but will also be able to give yourself and your spouse the best treatment during your old age.    

Wishing you Good Health and Happiness at all times. Stay Safe, Stay Protected, Stay Insured!

 

Dr. Ashok Chandran is a Health Insurance Specialist and runs his own Wealth Advisory (www.ac.co.in), he can be reached on ashok@ac.co.in

#HealthInsurance, #Mediclaim, #MedicalInsurance, #FinancialPlanning

Losing freedom to the Pandemic: An Experience.

Here's my first-hand experience of losing freedom and adapting to the protected life ahead of us.

For the first time after the lockdown announcement, I had to step out of my house and visit a government office for an official work, and realized how life is going to be from now on.
Here are a few things that I experienced and realized, which is going to be a real pain and challenge to many in the next couple of years:

- Ensuring social distancing all the time and being mindful of your limits.

- Feeling of isolation and loneliness even when there are known people around at

  short distance.

- Avoiding outside food and water.

- Avoiding touching anything all the time.

- Fear of infection when you have to touch something unavoidable including paper,

  cash, credit card, purse etc.

- Wearing a mask all the time.

- Sweating and discomfort because of wearing the mask.

- Not being able to recognize people with mask who otherwise were well known

  and close to you.

- Avoiding use of public toilets.

- Cleaning hands very often.

- Using hand sanitizers all the time.

- Other people looking at you with suspicion while they follow social distancing.

- Not knowing who is talking inside their mask, while in a group meeting.

- Sanitizing yourself, your belonging, your clothes etc. after returning home every

  time, followed by a bath, and still wondering if we have done a complete job.

- Not touching any bag or belonging that you got home from outside.

- Attempting to boost immunity through consumption of Ginger, Lemon, Turmeric,

  hot water etc. at regular intervals.

- Last but not the least, missing the joy of closing a business deal with a nice chat,

  smile and a firm hand shake over my favorite cup of hot strong coffee.

This experience gave me a feel of what our covid warriors must be going through. Salutes to the Covid warriors who are selflessly working to save lives to make a difference to our lives.

While I am fully grateful and realize that Life is more critical than freedom, and thankful to all the good Samaritans and god for protecting us, its indeed going to be a pain and effort managing this new normal, till we find ways to get back our freedom from this pandemic. Looks like a mass experiment of social animals living alone, and indeed survival of the fittest.

Stay Strong, Go Digital, Gradually get in to action but stay safe. Always remember that there are people who need you and love you. Go Frugal with your finances and Stay protected with Insurance. Get set for a Fight to Freedom.

- Dr. Ashok Chandran
Wealth Advisor and Insurance Specialist.
www.ac.co.in

 

#Covid-19

#Pandemic

#LosingFreedom

#LifeAfterLockdown

#TheNewNormal

#GoFrugal

#StayProtected

#FightToFreedom

The Advisor of the year.

As awareness dawns on the masses, the profession of Insurance has started getting the respect it deserves. Be it Life or Health or Property, wherever there is risk, one has to cover and protect themselves. Only a negligible small fraction of the Indian population is Insured adequately. It is our collective responsibility to bridge this Insurance gap.

Insurance is a must for all, its just that some people realise it too late. Some people avoid an insurance advisor and a conversation about the reality about death and health emergency. They end up penny wise and pound foolish and very often it is their families who suffer for a lifetime, for not heeding to the advice of the Insurance advisor.

Insurance is a noble profession, a life of protecting people against risks, A life of safeguarding the future of families. It is difficult to talk about death or health emergencies, but the Insurance Advisor does his best to show the reality to people day in and day out. People often are unable to accept the scary reality, and often look at Advisors as agents for commission; but the greatest happiness for a true advisor is when he is able to financially support you in a crisis through an Insurance claim. Helping a family to stand on its feet financially when the bread earner is gone or when their financial resources are drained due to illness or accidents is the job of an Insurance Advisor. Everyone needs an Insurance Advisor to keep him adequately protected, just like children need parents to guide and protect them in life.

It is your duty to protect your family’s financial goals against all risks, and your Insurance Advisor is your partner for protection. Have a conversation with your Insurance Advisor, check how exposed you are to risks. Protect all that is of Value to you adequately, TODAY.

The whole world gives you advice, but the pandemic has made everyone realise that your trusted Insurance advisor is the one standing beside you and your family and protecting you; The Insurance advisor is the real Advisor of the year.

Dr. Ashok Chandran, IRDA Certified Life & General Insurance Specialist

www.ac.co.in

 

#InsuranceAdvisor

#GeneralInsurance

#LifeInsurance

#HealthInsurance

#Mediclaim 

Two Financial Vaccines for Covid - 19

 

Is your family really Covered with a sufficient Health and Life Insurance?

While we all are getting vaccinated on priority, many of us are still at high risk without getting the two most important Financial vaccinations ie: Life Insurance and Health Insurance.

Its high time to take cognisance of the fact that everything has changed, and we need to act as per the changing scenario. Insurance is not just about Money anymore, It’s about life and death of people; it is saving lives of families.

Adequate Insurance cover is as important to all of us, as a PPE Kit is to a Doctor during these times.

All the traditional safety nets have been torn apart by the pandemic, be it your Financial Plans, Insurance cover or the Health Care Infrastructure.

Over 60 % population has no Insurance in India. Only a fraction of population has adequate Insurance.

Family and friends used to help in emergencies, but now many have been infected or have needy people in their families. Many people have lost their Jobs or Income too, and everyone is trying to help themselves and survive.

The costs are so high that You now have no option, but to be independent with adequate Insurance.

Life, Health and Personal Finances are no more as certain as it used to be and managing risk and financial planning requires help of professional Advisors. Health Insurance is no more just a financial cover but a life-saving tool to get the best possible treatment.

A person with lower sum assured chooses small nursing homes for treatment and then moves to better hospital and facilities only if his treatment demands the same. Thus in many cases precious time is wasted and life is endangered.

Higher Sum Insured includes all features and benefits of the policy. One should take the highest possible Health cover for all his family members.

We normally plan to leave our wealth for our family, with financial planning, however during Covid many people are leaving the families with multi-generational debts to repay. Insufficient Mediclaim can dig a unthinkably huge hole in your finances.

Insufficient Insurance is as good as No Insurance. Health care Inflation is more than double the normal inflation rate. You can expect Healthcare costs to double in 5 to 6 years; and it will continue going north as medical technologies, treatments and facilities are improving every day.

Thus a once good Traditional health cover of 5 to 10 Lac is insufficient and meaningless in today’s context. A day in a good multi-speciality hospital may cost you upward of 1 Lac a day for isolated ICU and doctor consultation.

Apart from the general increase in costs today and the expected inflation in the coming years, the following are some visible trends during the pandemic:

Entire Families are getting infected, unlike the normal times when treatments are generally required only for one person in the family at a time.

There are No Choice of hospitals; Getting a Hospital and the basic life-saving treatments itself is a big achievement. Earlier one can choose a less expensive hospital or make choices as per need.

Unlike the first wave of Corona people stay longer in Hospitals for 30 to 60 days of treatment, this increases the costs significantly for stay and treatment.

ICU/Ventilator and advanced treatments are common and may be needed for anyone anytime without notice.

Post Covid complications are uncertain and unknown; The side effects of vaccinations and Treatments over a period of time is unknown.

The new strain of Covid is not in anybody’s control.

The future impact of infections on co-morbid patients remains to be seen.

Post infection new Insurance policy/Higher Sum Insured comes under 3-4 year PED (Pre Existing Disease Exclusion) for Covid and related diseases. Insurance may also get declined depending on other health conditions. Thus it is imperative that you have a good cover while you are healthy.

The Grim reality is that a majority of the population in India is not only insufficiently covered but have no Insurance at all. We fail to prioritise the need to adequately Insure ourselves, and by the time disaster strikes it is too late.

Stay Safe, Stay Protected, Use Masks, Maintain Social Distancing, Wash Hands, Improve your Immunity with Exercise and Nutrition, Write your Will, Take adequate Health and Life Insurance. Have a review of your Insurance Portfolio done with your Financial Advisor today and do the best you can for yourself and your family. Share with your loved ones, ensure all families are Financially Vaccinated with a good Life and Health Insurance.

There is no Bigger Virus than Fear, There is no Bigger Action than Vaccination

-          Dr. Ashok Chandran

The Author is a Health Insurance Specialist and can be reached at ashok@ac.co.in or 9821157708.

TWENTY THINGS THAT EVERYONE SHOULD BE AWARE ABOUT LIFE INSURANCE.

 

TWENTY THINGS THAT EVERYONE SHOULD BE AWARE ABOUT LIFE INSURANCE.

By, Dr. Ashok Chandran

While many of us know about Insurance, the startling fact is that India’s insurance penetration at just 3.76% of the GDP is “extremely low” against comparable Asian countries such as China, Malaysia and Thailand as well as the global average, according to the central government’s Economic Survey of 2020-21
India’s insurance penetration grew from 2.71% in 2001 to 3.76% in 2019 which is much lower than other global economies. India’s life and non-life insurance penetrations in 2019, at 2.82% and 0.94% respectively, are also significantly lower than the global average of 3.35% and 3.88%, respectively.

Insurance protection is all about staying protected for the unknown future. Your family’s protection starts with your awareness about the existence of risk and the nuances of Insurance. Here is a list of terms and things to know for choosing the right Life Insurance cover and for ensuring smooth claim settlement.

1) 100 percent disclosures in proposal, like Smoking, drinking, medical history, Income, family medical history, Covid History etc.

2) Fill and read the proposal form personally to ensure accurate data.

3) Ensure All premium payments on time.

‘Premium’ is the amount to be paid to the Insurance company to keep your policy active.

4) Update Nominee Name and address, especially if Nominee passes away.

5) In case of death, file a claim immediately without any delay.

6) Do medical check-up at the time of buying a new policy.

7) Understand Policy Clauses and Exclusions.

8) Inform your family members about your policy.

9) Keep the Policy Bond/Document safely and accessible to the family.

10) Understand, Claim settlement ratio by policies, while comparing Insurers.

11) Understand Amount settlement ratio: It is important to consider amount settlement ratio in addition to claim settlement ratio by policies, else insurers will clear low value policies and reject high value policies, and this could be misleading.

12) Claim rejection ratio:

The claim rejection ratio or claim repudiation ratio is important as the claim settlement ratio may be misleading when there are high volumes of claims under process and not rejected at the time of such calculation for a particular period.

13) Assets under management: With a larger AUM the company can invest and get better returns. A larger customer base also helps manage risks more accurately. The capacity to settle claims on time also increases.

14) Solvency ratio:

The solvency ratio is a measurement of a company's cash flow and its liabilities. In simple words, it helps you know whether or not the company has adequate funds to manage its short-term and long-term liabilities.

15) Have a Will mentioning the nominee as the beneficiary of your Insurance, especially if he is not an immediate blood relative like father, son or spouse.

16) Go with MWP option wherever appropriate.

Section 6 of the Married Women's Property Act (MWPA), 1874, provides that a policy of insurance effected by any married man on his own life and expressed on the face of it to be for the benefit of his wife, or of his wife and children, or any of them, shall ensure and be deemed to be a trust for the benefit of his wife.

MWP protects and ensures that the woman gets all the maturity proceeds independent of the financial liabilities of the Proposer.

17) Define an Insurance objective before choosing an Insurance product, like Income replacement, covering dependent family members, Insuring a family Life goal, Housing Loan liability Protection, retirement planning, corpus/pension creation, tax benefit, Interest protection, leaving behind a legacy, Pure Term/whole life/saving, etc. This helps you choose the product wisely and Insure adequately. A professional Insurance Advisor plays a key role in helping you articulate your objectives and recommending the right product as per the need analysis.

Remember that inadequate Insurance is as good as No Insurance, So Insure with a clear Objective, and not just for having some name sake Insurance.

‘Sum Assured’ is the amount to be paid by the Insurance company to the Nominee 

‘Maturity Benefit’ is the amount to be paid to the insured for surviving the policy term.

‘Policy Term’ is the period for which the policy provides life coverage.

‘Premium Paying Term’ is the period for which premium has to be paid to the insurance company.

Your clear Insurance objective helps defining the Sum Insured, Policy Term and Premium Paying Term, and Maturity Benefit.

18) The earlier you buy an Insurance policy, the cheaper it will be. Younger people get Insurance cover at a very low premium and does not feel the pinch of the premium amount.

19) Probability of getting an Insurance cover: Get Insured whenever you are healthy and eligible. The chances of getting the Insurance is higher, if one does it before age related, infection, weight related, Critical Illnesses, or lifestyle diseases come up. There are many people who are unable to Insure themselves due to various health and weight related reasons.

Save your Medical Records: Discharge Certificate in case of Hospitalisation, X-rays/Scanning Reports, Histopathology Report, Vaccination Certificates Etc. You may need them for the purpose of Insurance.

20) Choose a professional Insurance Advisor, like you choose a doctor for your family. Your Advisor helps you articulate your needs accurately and choose the best suitable product. Finally it is the Advisor who stands by your family, while you are not there, to fulfil the promise of the policy.

Review of your Insurance Portfolio atleast once in a year. Apart from the annual review consult your advisor whenever there is a major life change or significant change in circumstances.

Not Investing sufficiently is a small crime, dying without adequate Insurance cover is unpardonable and a Big lifelong punishment to the family. Insure and Be Secure.

Dr. Ashok Chandran is a full time IRDA Registered Insurance Advisor and can be reached, for Consultations and Insurance Portfolio Review, on Mobile: 9821157708 or E-mail: ashok@ac.co.in

We are on a Mission to Transform a Million Lives by 2030

Be Financially Aware: Knowledge is Power!

 

Your Wealth, Health, Job, Position, Income, Family, Knowledge, Connections, Hard Work Etc. does not guarantee you any control over life.

Life consistently throws opportunities and challenges at you.

Man has no control over Death, Disability, Disease, Disaster, Accident, Incident Etc; The financial impact of the same on your family can only be minimised, with adequate Insurance covers.

There are sure events like children's education, marriage, Buying House, Retirement Etc. for which you can have a goal based financial plan, and invest accordingly. 

Your Family's Financial Future is defined by your Financial Awareness, Financial Actions and Discipline and not by your current Income or Wealth.

Insure, Invest and Allocate Assets as per your Risk Profile & goals, and Review it with your Advisor at regular intervals.

Financial Discipline and Planning over a period of time, is the only way to Financial Independence and Freedom.

Finally, God has his own ways, But never fail to do what is in your hands, to protect yourself & your family, and to be Financially Free.

All Investments are subject to Risks, Terms & Conditions. Talk to your Advisor, Read, Understand and Be Financially Aware Before Investing.

 

Dr. Ashok Chandran

We are on a Mission to Transform a Million Lives by 2030, through Free Financial Awareness For All.

The Power of Being Discontent.

Came across this post which talks about one of the key traits that make you a great entrepreneur.

Be Happy, but Stay Hungry and Stay Discontent...Never Settle, Keep Improving, Keep Growing, Keep Innovating, Keep Progressing....Sky is not the limit, Your limits are set in your mind.

The power of being discontent.
Peyush Bansal, Lenskart

Often I meet people who congratulate me for building lenskart into a great brand & every time I hear this, only thing that is going on in my mind is “Hope buddy you knew what crisis we are in and what all is broken. Glad you do not know about our this week’s  Review where 7/8 things are pending. Thank god you are not one of the 4 customer escalations that came to me this week. You have no idea what I am going through..my Discontent :)”

This is one feeling that has not changed for me for last 10 years. Only thing that has changed is that earlier when my well wishers (family, HR, seniors) used to criticise me for having this feeling, I used to feel bad, and now I don’t :)

I have come to realise that BEING DISCONTENT is a Big Value in building an ever evolving, ever surprising, ever growing…customer centric organisation. And being discontent has nothing to do with being happy, but it has everything to do with what we will be 3 years from now….it is a way of being, of improving, of pushing to BE MORE and DO MORE every day, and yet being happy:)

I am not saying I am not appreciative of what we have done as a team so far and hard work put in, but I am also saying, it is not such a bad thing if…

Every time I meet a customer who is happy with lenskart, I thank god :) and my team and every time I meet a dissatisfied one, I am filled with frustration & shooting emails!…if every time I meet an entrepreneur who is telling me what all amazing stuff they are doing such as 10 min delivery to sustainability to AI, I feel “oh my god, we are so far behind”. And every time I speak to an AMEX representative, I feel “why are we not yet delivering the same service”. And every time I am browsing an amazing experience on a new app, I am “taking screenshots and whatsapping them to my product team:)”. It is not such a bad thing if every night I go to sleep thinking “how much more is left to do …”

In my view all entrepreneurs are discontent, else they would never have become entrepreneurs. And organisations need more entrepreneurs to grow i.e. more discontent :) It is this discontent that pushes us every day to do better & deliver more & more ….

Apple releases a software update every 15 days and each update has 100s of new small features which make customer experience better….and by doing this it has become a 3 Trillion Dollar company (larger than the GDP of India). If they were so content, they would not be doing this …

“Good is not good enough” i.e. what is good today will not be good tomorrow. And BEING DISCONTENT allows us to stay humble, stay curious, stay hungry to continuously push ourselves to innovate and build an organisation for tomorrow, not just today.

Thank you lenskart team for being discontent always, despite accomplishing so much…we have a long way to go and it is still Day1

And cheers to all the Discontent yet Happy people in the world…let’s  keep doing more and being more !