In case of death or permanent disability of the policyholder, the sum assured is paid by the insurance company, & the policy terminates thereafter. On the other hand &, in the case of partial disability, some amount is paid on the basis of the severity of the disability. &, a weekly amount is paid in case of temporary total disability. It is considered to be an income protection plan, where the profession you are in & your income decide coverage & the premium amount.

Reasons to Buy Personal Accident Insurance

Provided are the reasons one should buy a Personal accident insurance:

• Financial Protection from Accidents & Injuries

This insurance plan secures the insured from financial losses resulting from burns, fractures, accidents, disabilities, & injuries.

• Lifetime Security for Family Members

This plan offers financial security in times of unfortunate events, i.e. disability, accidents, death, etc.

• Essential for People at Hazardous Workplaces

Individuals working in hazardous places, such as production, mining, etc., should keep their families protected with the help of personal accidental insurance.

• Lowers Disability Treatment Expenses

Whether it is the case of partial or total disability, it creates a financial burden & stress due to high treatment costs. 

• Enhanced Coverage with Add-on Benefits

It offers additional benefits over & above accidental death & disability, such as OPD expense, accidental hospitalisation, daily allowances, etc.

Difference between Personal Accident & Life Insurance

Many individuals ask What is Term Life Insurance, & how is it different from personal accident insurance. Let us have a quick look at the key differences between Personal Accident & Life Insurance:

It is critical to have life coverage in your policy so that it financially protects your family against any untimely event. To do so, it is critical to opt for the best term insurance available in India.

Steps to Buy Personal Accident Insurance

Provided are the steps to buy a personal accident insurance:

Step 1: Evaluation of requirements

Analyse your current profession, lifestyle, & potential risks that might arise in your daily routine. Consider factors such as whether your job demands physical presence or involves risky or adventurous activities. Comprehensive personal accident policies offer extensive benefits, some more limited plans might provide Ambulance Only Cover, solely reimbursing costs associated with emergency medical transport following an accident. Evaluate the most relevant requirements, including medical expenses covered, desired coverage in the event of disability, & loss of income resulting from disability. 

Step 2: Explore & compare different insurance providers

Explore & compare the different insurance companies available which offer a personal accident policy. The comparison should be based on specific factors, such as premium costs, claim settlement ratios, customer reviews & ratings.

Step 3: Understand & the coverage of the policy

Understand the policy’s coverage by going through its inclusions & exclusions.

Read: Quiet Features That Make a Loud Impact at Home

How to Raise a Claim for Personal Accident Insurance?

Provided are the two ways to raise a claim in case of Personal Accident Insurance:

• Cashless Claim Process

Step 1: Initially, an insured is required to inform the insurance company within 48 hours of hospitalisation.

Step 2: Provide the policy details, cashless card, & an ID proof at the hospital.

Step 3: Complete the pre-authorisation form with all the required details & submit it to the hospital authorities.

Step 4: You can expedite the process by filling out the form available on the official website of the insurance company. Also, inform the insurance company about the same. 

Step 5: Once your application is reviewed by the insurer, you will be informed about the same through email & SMS.

Step 6: The insurance company will then process the claim, for which the status can be checked online.

• Reimbursement Claim Process

Step 1: This claim arises when you choose a hospital that’s not covered under the list of insurance company network hospitals, or a cashless claim is not opted for.

Step 2: Inform the insurance company 3 days prior in case of planned hospitalisation, & within 2 days in case of emergency admission.

Step 3: You are required to submit the necessary documents within 15 days of discharge.

Step 4: The claim will either be accepted or rejected once the documents are reviewed.

Step 5: In case the claim is accepted, the insurance company will transfer the claim amount to the registered bank account via NEFT.

Step 6: In case the claim gets rejected, a notification will be received on the registered mobile number & e-mail ID.

Documents required to raise the claim for personal accidental insurance

Provided is the list of documents required to be filed in case of an accidental death:

• Death Certificate
• Original Policy Documents
• FIR Report
• Beneficiary’s ID Proof
• Policyholder’s Age Proof 
• Medical Certificate
• Post-Mortem Report
• Discharge Form
• Medicine Bills
• Hospital certificate
• Employer certificate
• Cremation Certificate
• Any other report, as requested by the insurer

Taxation benefits 

• Get a maximum tax deduction of INR 25,000 for self, dependent children, & spouse, & INR 50,000 in case the age is over 60 years.
• Get an exemption of tax on the amount of claim received against accidental death or disability u/s 10(10D).
• Get a deduction of up to INR 75,000 in case senior citizens are covered.
• Get a deduction of INR 1,00,000 in case both the policyholder & premium payer are senior citizens.

Conclusion

In today’s unpredictable world, insurance has become important, whether it is term life, health, travel, or personal accident insurance.  An auto accident is a common cause of injury and, in severe cases, death, often triggering claims under a Personal Accident Insurance policy for medical expenses, disablement benefits, or even a death benefit. Accidents may occur with anyone at any time & anywhere, causing damage. To deal with this situation, one can buy a personal accident policy, which will help provide a sigh of relief, hence removing financial burden & stress.

The post Personal Accident Insurance: Protection against Unexpected Mishaps appeared first on Highlight Story.

What is Term Life Insurance & How it works?

Term life insurance is built for a specific period, usually from  10 years to 30 years, to provide full coverage regarding financial protection to the holders of it. This is an instant life insurance solution for saving for the future. One of the main reasons and benefits is to assist the beneficiary in case the policyholder dies during the term. Investing in term life insurance can be a better financial option for many individuals compared to permanent life insurance. You should keep in mind that if the policyholder lives more than the written period then, it policy will be considered expired and will not get any payout against it. now we will know how it works:

1. A term life insurance policy is for a specific period from 10 to 30 years.

2. It is paid so you need to pay monthly or annually as per your choice to be a policyholder.

3. If the policyholder dies due to any reason then the insurance company pays the death amount to the beneficiary to whom he/she would like to provide finance benefits.

4. You will not get any amount if you exceed the term of the policy.

Read: How to Set Your Children Up For Financial Success

Different Types of Term Life Insurance

Numerous kinds of term life insurance plans help in choosing your financial planning:

1. Level Term Life Insurance
2. Decreasing Term Life Insurance
3. Increasing Term Life Insurance
4. Convertible Term Life Insurance

1. Level Term Life Insurance: There will be no change in term life insurance premiums during the term.

2. Decreasing Term Life Insurance: There will be changes in premiums that decrease over time to cover the balances.

3. Increasing Term Life Insurance: There will be changes in premiums that increase over time to maintain inflation.

4. Convertible Term Life Insurance: This type of insurance allows you to convert or change the policy.

In addition to all these types of insurance plans, you can also prefer instant life insurance. It is another type of insurance plan. However, its premium can be expensive but services are so rapid and give same-day approval. If you need hassle-free coverage then it is the most suitable option for you.

Benefits of Term Life Insurance

Many benefits term life insurance offers through all types:-

1. Affordable

2. Income Tax Benefit

3. Additional Riders

4. Tax-Free death benefits

5. Flexible

6. Critical illness coverage

1. Affordable – If we compare this with permanent life insurance, then it is less expensive than it is.

 2. Income tax benefits – According to current tax laws, you will get tax exempted while you pay for a term life insurance plan.

3. Additional riders – This is like a plus point that you can add to your plan to get extra benefits in your insurance plan. Only what you need to do just pay some extra nominal fee for it. 

4. Tax-Free death benefits – If the policyholder dies then the beneficiary will be tax-free. And not tax-free if the holder does not die and insurance has completed its period of time.

5. Flexible – There are no fixed boundaries to choose your plan which means you can choose term time and coverage amount as per your convenience.

6. Critical illness coverage – It is an add-on benefit that you can get coverage during your critical illness phase of life.

Are Term Life Insurances Necessary?

You may need term life insurance if you are a:

• single earner of a family
• single parent
• working parents
• Home loan holders
• Outstanding liabilities individuals
• Entrepreneurs

1. single earner of a family – Every sole earner of the family who loves to care for members as they are financially dependent needs to get term life insurance.

2. single parent – Being a single parent it is your responsibility to make your children’s future secure. This insurance offers several saving options to secure a future with their financial requirements.

3. working parents – To meet daily expenses both parents may need to work. In the absence of any partner in both, this can become difficult to fulfill daily requirements. So, will need a term life insurance plan to get adequate coverage of the amount.

4. Home loan holders – if you are a dreamer to have your own house then term life insurance assist you in buying your dream house with the help of a home loan.

5. Outstanding liabilities individuals – If policyholders have taken a loan or have some liabilities example buying a car, personal goals, or setting up a career. If you die in any phase of your life then to reduce the liabilities burden, insurance helps them.

6. Entrepreneur – Despite the inexplicable joy of owning and running a business, self-employed people must accept an unsteady income. As business becomes more unstable, saving for term insurance becomes more important. As well as that, business people have a legacy they must take care of and leave behind for future generations. You can still take care of your business even if you are no longer around with the death benefit from a term plan.

FAQs – Term Life Insurance

1. What is the rule of term life insurance?

The rule of term life insurance is that you need to pay a specific amount of money to provide financial help to your nominee or family in your absence due to death.

2. What are the disadvantages of term life insurance?

The one of main disadvantages is that the nominee cannot get benefits if the survivor survives the term. And the amount of premium keeps increasing as ages.

3. Is term life insurance important?

Yes, Term life insurance is important for your family after policy policyholder’s death.

4. What happens if you do not use term life insurance?

If you do not use term life insurance the policy will end and you won’t get any coverage.

5. What is the purpose of term insurance?

The main purpose is to assure financial help to families and provide a shield against uncertainties.

Conclusion

An effective term life insurance plan helps you ensure financial protection for your precious one. You might be aware of its importance, benefits, and why it is required in your life. This is a comprehensive plan for saving your family’s future. However, an individual should invest time in choosing the right policy with setting his goals.  Seeking guidance from Financial Advisors can be crucial when determining the appropriate coverage and structure for a Term Life Insurance policy.

The post Understanding Term Life Insurance: A Comprehensive Guide appeared first on Highlight Story.

Understanding Individual Tax Preparation in 2024

Individual tax preparation involves gathering your financial records, understanding deductions and credits available to you, and ensuring you file accurately to meet IRS requirements. For many, the complexity lies in the variety of tax rules, especially when changes occur from year to year.

In 2024, there are a few key tax changes that individuals must be aware of, including adjustments in tax brackets and potential changes to deductions or credits. Keeping updated on these will save you money and headaches when the time comes to file.

Before diving into the changes, let’s clarify: if you earn income in any form—be it salary, freelance earnings, or even investment income—you’re likely required to file an individual tax return. Not doing so could lead to penalties and interest charges.

Key Tax Changes for 2024: What You Need to Know

2024 brings a few critical updates to the tax code that could impact your filing. Here are the key changes:

Tax Bracket Adjustments

The IRS updates tax brackets each year to account for inflation. These changes could impact how much tax you end up owing. If your income pushes you into a higher tax bracket, you might have to pay more taxes.

Standard Deduction Increase

In 2024, there’s a small increase in the standard deduction. This means that many taxpayers will be able to deduct more from their taxable income, which could lower their overall tax bill. For single filers, this could mean a larger deduction than in previous years.

Changes to Child Tax Credit

There are some slight adjustments to the child tax credit this year. It’s important for parents to review eligibility and benefits closely, even though some of the pandemic-related enhancements have ended. The credit still offers significant savings for eligible families.

Retirement Contribution Limits

The limits on how much you can contribute to retirement accounts like 401(k)s and IRAs often change each year. Increasing your retirement contributions can help secure your future and also reduce your taxable income.

Health Insurance Premiums 

Changes to health insurance premiums and how they affect your taxes are important to consider during tax preparation. Stay updated on any modifications to the Affordable Care Act’s subsidies and how they might impact your tax return.

Read: 6 Powerful Tips For Instagram Monetization To Increase Your Sales And Conversion

Step-by-Step Guide to Preparing Your Individual Tax Return

Here’s how to prepare your individual tax return in 2024, step by step:

1. Gather Your Documents

Before you can even begin filing, gather all necessary documents. This includes W-2s, 1099s for freelance work, interest or dividend statements from investments, and any documentation related to deductions like mortgage interest, student loans, or charitable donations.

2. Choose Your Filing Status

Your filing status significantly impacts your taxes. You may be single, married filing jointly, married filing separately, or head of household. Selecting the correct status will help you claim the right deductions and credits.

3. Determine if You’ll Itemize or Take the Standard Deduction

In 2024, the standard deduction for single filers is $13,850, while it’s $27,700 for those married and filing jointly. If your deductions (medical expenses, charitable contributions, etc.) exceed these amounts, you may want to itemize to reduce your tax burden.

4. Take Advantage of Credits and Deductions

Review the credits and deductions available to you, such as the Earned Income Tax Credit, Child Tax Credit, or credits for education and retirement savings. These credits directly reduce your tax liability, so it’s essential to ensure you claim everything you’re entitled to.

5. File Electronically

E-filing is fast, secure, and ensures you receive your refund quicker. Many software programs will also check for errors and guide you through the process, minimizing the risk of mistakes.

Here are Some Mistakes to Avoid When Filing Taxes in 2024

Tax filing can be tricky, and even small mistakes can lead to delays or penalties. Here are the common pitfalls to avoid in 2024:

• Incorrect Social Security Numbers: This is a surprisingly common error. Ensure that all Social Security numbers on your return are correct, whether for yourself, your spouse, or dependents.
• Filing with the Wrong Status: Misunderstanding your filing status can result in lost deductions or an incorrect tax bill. If you’re unsure whether to file jointly or separately, consult a tax advisor.
• Overlooking Deductions: Many taxpayers forget about deductions they’re eligible for, like student loan interest or retirement contributions. A comprehensive review of your financial situation could uncover potential savings.
• Ignoring State Taxes: Federal tax filing often takes the spotlight, but don’t forget about state tax obligations. There are different rules and deadlines for each state.
• Not Filing on Time: The IRS filing deadline is generally April 15, but extensions are available if needed. Filing late without an extension can lead to penalties and interest on any taxes due.

Final Thoughts

Filing your taxes doesn’t have to be a daunting task. Understanding the process, staying informed about changes for 2024, and taking a proactive approach will help ensure you meet IRS requirements and possibly save money in the process. Whether you’re managing finances with a personal loan online or crafting a budget plan to start investing, individual tax preparation is an essential part of financial health. Avoid common mistakes, take advantage of credits and deductions, and don’t hesitate to seek help if needed.

Author’s Bio:

Anna Michaelson is a tax and accounting expert who channels her passion for writing into insightful articles for “Tax & Accounting Hub.” With over three years of experience in tax services and accounting, she enjoys helping others understand complex financial matters.

The post Everything You Need to Know About Individual Tax Preparation in 2024 appeared first on Highlight Story.

In relatively minor accidents, you might not even need to report it. Accidents only need to be reported to the police when bodily injuries occur or if $500 in property damage is exceeded. Unfortunately, it is incredibly simple to meet these standards and this means your accident will be recorded on your driving record and therefore reported to insurance.

That said, not all accidents will result in a higher insurance premium for you. There are a few key factors to consider, which we’ll go into more detail about now.

Fault vs. Innocence

A critical starting point is the difference between fault and innocence.

Generally, if you are the reason for an accident, then you are found to be at fault. This means you directly did something dangerous like failing to yield, rear-ending someone at a red light, or running a stop sign that caused a crash with another car.

When you are at fault, you are viewed negatively by insurance companies because you are now a riskier driver to insure. This results in the most severe increases to your insurance costs because now insurance assumes you may cause another incident in the future.

On the other end of the spectrum, being innocent in an accident can still cause your rates to go up. Making any claims and being involved in any accidents regardless of fault means more potential liability than a driver with no issues whatsoever. In turn, even innocent drivers are seen as riskier to insure.

Further complicating the situation is the fact that different states have varying laws regarding fault and negligence. This means you can be partially blamed for an accident and this can result in insurance companies treating you equally as a fully at-fault driver.

With this in mind, determining fault is crucial to receiving compensation during a claim but it won’t always prevent your insurance rates from going up.

Accident Factors

Another consideration is the circumstances of the accident. While any accident is likely to raise your insurance, how much it is affected is partially determined by what type of accident happens.

A crash with another car where you were to blame will have the greatest impact. Accidents where you were partially at fault or even completely innocent will have a lesser yet still significant increase.

On the other hand, you may have less serious accidents. Car maintenance is essential to preventing car accidents. These incidents may be filed under a comprehensive coverage claim rather than one stemming from a car-on-car collision. Examples of this include hitting wildlife or hydroplaning during a rainy day and hitting a highway barrier.

Comprehensive claims still count as a crash, so they are likely to raise your insurance despite not involving another car. That said, the effect will be far less significant than a crash with another driver.

This means the factors of your accident are necessary for determining how much your insurance goes up.

Driving History

Lastly, your driving history will affect your insurance rates after an accident.

Insurance companies rely on your driving record to evaluate how risky you are to insure. More tickets and accidents mean greater risk, which translates to higher premiums for you.

In particular, accidents tend to stay on your driving record for three to five years. You will experience the greatest increase in your insurance costs during your first premium renewal following an accident. 

As you approach the point where the accident falls off your record, your insurance costs will gradually decrease until it is no longer affected by your accident.

What can complicate this is if you get into another crash or continue to rack up tickets. This will effectively extend your period of risky driving and keep your premiums high.

Take this into consideration and understand that an accident has long-lasting consequences on your insurance. With better driving habits, this impact will eventually fade.

Closing Thoughts

Car accidents are painful and stressful to experience. What can make the situation more frustrating is when you face increased insurance costs as a result of a crash.

You are highly likely to experience increased annual premiums regardless of who caused the accident and how it happened. That said, fault, the circumstances of the crash, and your driving record are relevant for determining how much your insurance is raised. Car insurance cover helps to pay for repairs to your car and medical expenses if you are involved in a car accident.

Should you run into higher insurance bills because someone else caused an accident, you deserve better treatment and a lower cost. Patient healthcare practices during COVID for car accidents may include telemedicine, drive-thru testing, and curbside pickup of medications. Consider exploring quotes from other insurance companies or earning discounts through bundling coverage and using driving monitoring technology to help cut back on insurance expenses.

The post Will a Car Accident Increase My Insurance? appeared first on Highlight Story.

Sporting injuries account for several cases in a hospital every weekend, while those who indulge in a little too much socialising are also prone to be on the receiving end. Road incidents also provide nurses and surgeons with much work. The one thing in common is that nobody involved could predict such occurrences. It doesn’t matter if it’s someone being negligent, plain stupid, or completely innocent. They all have repercussions, one being a severe financial hit, which is why it’s a sensible course of action to at least take out ambulance cover only to lessen the burden.

Not everyone is in the fortunate position to be able to afford full insurance to cover every accident and healthcare situation. That said, there is far more chance of being able to do so when purchasing a policy from a local agent that has been taking care of the community in the Hunter region since 1952, originally set up to look after miners and their families. Ambulance-only cover can help you access the best medical facilities, even if they are out of network, without having to worry about the cost of transportation.

It offers a superb service, with the organization being set up not to make a profit. Any surplus funds are ploughed back into providing the best service and offering incentives to members by teaming up with other local companies, while any other cash goes into the community. It is not at the mercy of greedy shareholders looking to make a buck out of misfortune and can therefore offer the very best of healthcare at a great value. Some of the members may need to look at what to expect when preparing to become foster carer.

The ambulance cover provides peace of mind that once in the hands of the paramedics on the scene and then in the vehicle, the costs will be covered. Hospital queue management should prioritize ambulance-only patients to ensure they receive immediate medical attention. Imagine not only being in agony and thinking how long you will be away from work costing you money but also having the nightmare of knowing that there is no money in the bank account to pay for the service being administered which is not covered by Medicare.

This can have terrible effects on anyone’s mental health, stress, and anxiety, exactly at the time when a healthy mind and clear positive thinking are required. That clear thinking is required as policy holders should ensure that they are only treated by a State Government Service or one improved by the insurance agent, while the ambulance must be contracted to States Ambulance Service for policyholders to receive their benefits. Maybe some later recuperation can be enjoyed in a stunning national park. It cannot be stated enough that having an ambulance only cover will save anyone requiring the services of a vehicle or its paramedic’s money and incalculable peace of mind, so that they can concentrate on their recovery without undue stress.

The post How Ambulance Only Cover can Save Strife from a Community Caring Insurance Broker appeared first on Highlight Story.

A credit card has made people’s life much easier since it came into existence. In the modern world, credit cards even help to pay your insurance premiums. Get your life insurance with no medical exam, where you don’t need to sit for any life health insurance exam. You need to know how term life insurance without a medical exam works to leverage its benefits, and with credit cards, you can pay premiums easily.

The customers can not only purchase products using the credit card, it can also be used to repay the bills at a later date, there are numerous advantages associated with it such as discounts, airmiles, reward points. It is also helpful in repaying the utility bills and payments along with your insurance premiums very easily, without any hassle. 

With the high popularity of insurance plans, many people are buying the insurance plans due to economic instability, unpredictable markets, and various reasons which are lucrative and compelling. This way, individuals can easily manage their finances for their family and unwanted situations. There are various companies which provide life insurance policies with various benefits especially payment methods as per the convenience of the customers. 

Though there are different methods of paying insurance premium payments like auto-debt, internet banking, debit card and credit cards. The significance of credit cards in an average individual’s life has increased, giving the most preference for insurance premium payments. But, it has both the advantages and disadvantages, which need to be managed by knowledge and understanding.

How To Pay Insurance Premium Via Credit Cards?

Paying for insurance through  credit card is very convenient for individuals and the premium amount gets automatically deducted from the account. Many insurance providers provide the option of auto-debit which makes the payment easy and hassle free. Thus, the auto-debit option becomes an exceedingly simplified option for many customers. This way, customers never fall behind or miss the premium payment as it gets reduced automatically timely. 

Moreover, many times it gets problematic that customers wish to switch their insurance provider, or they may try to switch to the best credit card provider. For this, there should be full convincing by the policyholder about the card and the payment method that the individual wishes to pay for insurance. Also, doing so will help you improve your credit score in the long run, and the credit score check needs to be done timely.

Advantages of Using Credit Card For Insurance Payments 

• The biggest advantage for customers paying insurance premiums through credit card is that the bank balance doesn’t get affected when the payment is made. The delayed cash flow makes it easy for the individuals to manage finances for expenses and insurance payments at the same time. If the individual becomes unable to process the payments immediately for any reason, covering this up through a credit card can provide enough time for managing the expenses. Moreover, the customers need to pay up the bill in their next billing cycle without any delay, otherwise it may hamper their credit score.
• Also, we talked about the receiving of reward points and other perks for using credit cards for the insurance premium payments. For example, when you pay your life insurance premium using your credit card, you can easily rack up some reward points of benefits like discounts on holiday plans or travel tickets. For this, you need to pay the insurance premium in a lump sum amount or you can pay monthly dues to receive the bonus points or offers by the card providers.
• Many customers are unaware but using credit cards can actually add to your credit score and help you improve your credit portfolio. This can be useful in the long run, improving your loaning chances based on the early credit card payments. Therefore, you need to make a wise financial decision of using a credit card for insurance payments which is usually wise if handled with proper planning of repayment. 

Mistakes To Avoid For Using Credit Cards For Insurance Payments

You must acknowledge various points for paying insurance payments using credit cards, as it can get tricky easily. Definitely, you can delay your payment outflow for earning credit card points, but you need to be careful for not making the mistakes like these:

• Auto-premium Deduction

Once you set your premium deduction on auto-mode for your credit card, every month at that time the premium amount will get deducted, irrespective of your choice. So, before making such an option you must be sure of the remaining money through proper expense planning of the month. 

• Confirm the Additional Charges

Many insurance providers may charge you extra for paying through the credit cards, though some insurers don’t do so. It may vary from policy to policy or insurer to insurer. Therefore, you must be aware of the additional charges levied for the same. If the charges are exorbitant, avoid doing so.

• Never Miss Deadlines

You need to pay your insurance premium on time, but credit card payment is also important for timely payments. Eventually, one way or the other this creates credit card debt. Eventually, one way or the other this creates debt on your credit card. 

Final Thoughts

With this article you can easily understand insurance premium payments using credit cards, credit score check their benefits, and mistakes to avoid while doing so. You must read the insurance terms and conditions carefully, accepting the one which favors credit card payment mode without any extra charges. 

Author’s Bio:

Abhishek Kumar is your common gigital Hooman with marketing as profession, finance as a curious habit, and sports as a survival mechanism. He has written this post for IndiaLends, leading website for Personal Loans in India.

The post How does One Pay for an Insurance Policy Premium through a Credit Card? appeared first on Highlight Story.