100 FAQ's on Basic Finance
Module Units
- 1. 100 Most Asked Finance Questions
- 2. When and why should you start saving?
- 3. Have you ever thought about how much you should save every month?
- 4. How is investment different from Savings?
- 5. When to start investing? What are the steps in the investment process?
- 6. What care should you take while investing?
- 7. What are various options available for investment?
- 8. What is meant by Interest?
- 9. How Does Inflation Affect Interest Rates?
- 10. What is Simple Interest?
- 11. What is Compound Interest?
- 12. Why 0% is not really 0% in EMI schemes?
- 13. What is Return?
- 14. What is the difference between return and interest?
- 15. What are the types of Asset Classes?
- 16. What is a PAN Card and its importance?
- 17. What are the types of bank accounts in India?
- 18. How to select a suitable savings bank account?
- 19. What is a Credit Rating?
- 20. What is a MAB (monthly average balance) and how does it affect you?
- 21. What is the maximum EMI I can service?
- 22. What is a credit card and how to use it?
- 23. What is credit score (CIBIL score) and importance of credit history?
- 24. Pay off credit card debt or Invest?
- 25. Meaning & usage of NEFT / RTGS / IMPS
- 26. What is a Bond?
- 27. What is a Derivative?
- 28. What is a Mutual Fund?
- 29. Public Provident Fund (PPF)
- 30. Employees Provident Fund (EPF)
- 31. National Savings Certificate (NSC)
- 32. Post Office Monthly Income Scheme (PO MIS)
- 33. Senior Citizen Saving Scheme (SCSS)
- 34. Kisan Vikas Patra (KVP)
- 35. Company Fixed Deposits (FDs)
- 36. RBI Savings Bonds
- 37. Capital Gain Bonds or 54 EC Bonds
- 38. Sukanya Samriddhi Scheme (SSS)
- 39. Non-convertible Debentures (NCDs)
- 40. Coupon Bearing bonds
- 41. Tax-Free Bonds
- 42. New Pension Scheme (NPS)
- 43. Atal Pension Yojana (APY)
- 44. What is meant by a Stock Exchange?
- 45. What is an Index?
- 46. What is a Depository?
- 47. What is Dematerialization and what are the benefits of having a demat account?
- 48. What is an ASBA facility and when can you use it?
- 49. What is meant by Securities?
- 50. Rights Issue Shares
- 51. Bull and Bear markets
- 52. Stock Split & Bonus Shares
- 53. Pay-in and Pay-out & Auction
- 54. Buyback of Shares & Open Offer of shares
- 55. Book-closure/Record date & Ex-Date
- 56. Where to find the stocks related information?
- 57. What makes stock prices go "up" and "down"?
- 58. Dividend & Dividend yield
- 59. What is a Clearing Corporation?
- 60. Rolling Settlement
- 61. How does one decide to buy and sell any equity share?
- 62. What are the various types of the risks once I start trading?
- 63. What is an Overvalued Stock or an Undervalued Stock?
- 64. Explain the terms -selling short and Margin Trading
- 65. What are Circuit filters & trading bands
- 66. What is Insider Trading?
- 67. What are advances and declines?
- 68. How much equity should I have? OR What should your asset allocation be?
- 69. What are the good parameters while selecting a good blue-chip company stock?
- 70. How to analyse whether a new IPO will succeed or not while going forward?
- 71. How to calculate gains on sale of equity funds?
- 72. What does ownership of a company give you?
- 73. How to obtain Annual Report / Quarterly report?
- 74. What are Company Earnings and its importance for an investor?
- 75. What is Financial Planning?
- 76. How do you budget? Is it necessary to have a budget?
- 77. How much emergency fund should I hold?
- 78. How much money should I save towards retirement?
- 79. How to fix timelines for your goals and align them with the proper investment vehicles?
- 80. How many years will it take to double your investment?
- 81. What should you choose - Fixed Deposit OR investment in Stocks?
- 82. Are debt funds better than fixed deposits?
- 83. Should I rent or buy a house?
- 84. Can I afford to buy a house?
- 85. What are the major points to consider while taking a housing loan?
- 86. How many mutual funds should an investor have?
- 87. What should be your ideal mutual fund portfolio?
- 88. What is the difference between dividend and growth options while selecting a mutual fund?
- 89. Which is the best mode to select in mutual funds - monthly, half-yearly or annually?
- 90. How to choose the best investment instrument for your goals?
- 91. What are the charges that I should keep in mind while investing in mutual funds?
- 92. How does the taxation on redemption of SIPs work?
- 93. How are your dividends taxed across shares and mutual funds?
- 94. What are the must know things about family finance?
- 95. What is a Nominee and why is it important to have a nominee?
- 96. What happens to your policy if you discontinue your premiums?
- 97. Explain what is Deposit Insurance?
- 98. Family floater health plan or individual policy – which is a better option?
- 99. How much life insurance should I have?
- 100. Importance of life insurance
- 101. What is health insurance?
What is health insurance?
Selecting health insurance is one of the most crucial financial decisions you will make. For this, you must have a comprehensive understanding of this concept. In this module, we will explore the health insurance definition, how it works and its types.
Concept of Health Insurance
A health insurance policy is an agreement between the insurance company and the policyholder in which the former is liable to pay for the latter's hospitalization and treatment expenses in lieu of regular premium payment during the policy term. In simple words, health insurance is an insurance product that covers the medical and surgical expenses of an insured individual.
With a health insurance policy in place, the policyholder can seek the benefits of either cashless treatment or reimbursement of the amount spent on treatment, if and when required. However, the insurer is liable to pay off the medical bills subject to the condition that the total billing amount does not exceed the amount of the sum assured and premiums are paid on time.
How does Health Insurance work?
Let’s understand how health insurance works with an example.
Ravi Kumar, aged 34, is a married man with two children. In addition, his aged parents are also living with him. The entire family runs on Ravi’s income. This means that Ravi is not only responsible for their financial security but has to also take care of their hospitalization and treatment expenses irrespective of whether the medical treatment is planned or sudden. This makes it even more important for Ravi to know the health insurance meaning. Suppose Ravi’s wife has been suddenly hospitalized and needs to be treated for some medical disorder. The total hospital bill amounts to ₹3,69,000. Ravi who already had bought a health insurance plan with a sum assured totalling ₹4,00,000 and had opted for the cashless treatment option, will simply submit the health insurance card at the insurance desk of the hospital. The insurance company is now liable to pay off the medical bills, thus, relieving Ravi from the liability of having to pay such a huge medical bill from his accumulated savings.
Different Types of Health Insurance
Different people have different health needs, so there are various types of health insurance plans to choose from:
Personal Health Insurance: This covers you, your spouse, children, and parents. It pays for hospital stays, treatments, and more. Each person on the plan has their own coverage amount.
Family Floater Health Insurance: This covers your whole family under one plan. The total coverage is shared among family members, making it cost-effective. It's great for small families.
Senior Citizens Health Insurance: This plan is made for older folks and considers their specific health needs. It may cover things like home treatments and mental health care. Since seniors often have more health issues, these plans might cost more.
Critical Illness Insurance: This policy covers major illnesses like cancer or heart problems. You can add it to your regular plan or buy it separately. If you're diagnosed with a covered illness, you receive a lump sum payment.
Group Health Insurance: This is for a bunch of people, like employees or residents of a building. It's usually cheaper but may only cover basic health needs. Employers often offer this as a perk.
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