Search Results

How can I get a life insurance policy if I have diabetes? You can still get life insurance if you've been diagnosed with diabetes. However, the type of plan you may acquire and the premium you'll have to pay will be determined by your diabetes level. When compared to someone who does not have any current medical concerns, it will always be higher. Each case is assessed by the insurance company based on a number of variables, including: a) Age b) Ailment kind (diabetes or other) b) The illness's stage (progressive or manageable) c) Medical history of the family If you apply as a diabetic proposer, you will almost certainly obtain a higher premium quote than usual. Only under exceptional circumstances may the insurance reject your application outright, such as: i. Where the danger of early death is either extremely high, or ii. Where the financial cover and expense do not make sense. When it comes to life insurance, there are five things to consider if you have diabetes. 1. Diabetic Control/Progression If you have diabetes but keep it under control, getting life insurance may be easier. You may or may not be able to purchase life insurance if you have had a clean record but have extra health risks. If your diabetes is uncontrolled and worsening over time, you may or may not be eligible for life insurance. The premium for life insurance with the latter two requirements will be on the higher side. 2. Your Age and Diagnosis at the Time of Application When you're diagnosed with diabetes, the age you're diagnosed makes a big effect. If you're diagnosed when you're young, the disease has more time to do damage. If you are diagnosed with diabetes later in life, your chances of acquiring insurance are substantially better. The age that determines whether you are early or late is 40. It implies that if you are over 40 and diabetic but have no other health issues, your life insurance rate may not be affected much. 3. Diabetes Types If you have type 2 diabetes, your premium will be lower than if you have type 1. The reason for this is that type 2 diabetes appears later in life. It's also easy to control with insulin and oral medication. 4. Check Your Blood Sugar The HbA1c test can be used to determine the severity of your diabetes. This test determines your average blood sugar levels during the last 2 to 3 months. If the level is 7.5 or lower, the condition is under control. If your number is less than 7.5, you can easily obtain life insurance. If the level is up to 8.5, you may be eligible for insurance. The sugar level is checked as well. The optimal blood sugar level is 140, but if your sugar level goes up to 180, you may be eligible for life insurance. If you have diabetes, learn how to purchase a term insurance policy. 5. Required number of doctor visits The insurance provider would also like to know how frequently you go to the doctor to keep your diabetes under check. If you go to the doctor twice a year, your premium will be lower. If you have to visit four or more times (once per quarter), the insurance company will know you are actively involved in keeping diabetes under control, which may not be in your favour. Diabetes and Your Overall Health Diabetes is one of India's most serious health issues, and it is one of the top five primary causes of mortality. Diabetes can be efficiently managed if detected early. If you don't address it, though, it can lead to serious issues. Nerve damage, kidney damage, stroke, and heart disease are all dangers to your health. Diabetes is the major cause of a variety of life-threatening illnesses. Even during the COVID-19 epidemic, persons with diabetes are at a higher risk of getting life-threatening illness complications. As a result, diabetes may not be a life-threatening condition in and of itself. However, it raises your chances of acquiring other, more significant health problems. If you have diabetes and are concerned about the safety of your family, get a life insurance policy as soon as possible. You'll probably have a life insurance policy with a somewhat higher cost, but your family will have that much-needed safety net in case of rainy days.

Endowment policies are a sort of life insurance. It not only provides you with life insurance, but it also helps you to save money on a regular basis. When the insurance matures, you will get the money you have saved in a lump payment. An endowment plan has very minimal risk. The USP of endowment insurance is the security of returns. You may plan and aim to attain crucial long-term goals with them since the rewards are guaranteed. You'll become a more disciplined saver and investor as a result of it. You can also get a tax break if you invest in an endowment insurance. You can deduct up to Rs 1.5 lakh in taxes on premiums paid under section 80C of the Income Tax Act 1961. Aside from that, under section 10(10)D of the Income Tax Act, the maturity benefit may be tax-free. Another advantage of an endowment insurance is that it allows you to take out loans against it. This comes in in during a financial emergency and keeps you out of debt. Other features, such as premium protection and a limited payment period, add to the plan's worth. Endowment Plan Eligibility Criteria Here are the eligibility factors to consider before deciding whether or not you require an endowment policy: 1. For a simple endowment plan, the minimum age is zero. This implies that as soon as your child is born, you may purchase an endowment coverage for him or her. A minimum age of 18 is also required for some programmes. 2. You must be at least 60 years old to get an endowment policy. As a result, you can put your retirement savings in an endowment policy for long-term preservation or legacy intentions. 3. You must be at least 18 years old to be considered mature. So, if your parents purchased an endowment plan for you when you were still a minor, it's a great method to pay for your further education. An endowment policy can thus be purchased by nearly anybody with a sound mind or a guardian. Let's take a look at its features and benefits to see when you might require it. When is it best to use an endowment plan? There are several circumstances in which an endowment plan is the ideal option. The situations are as follows: 1. Makes up for a Gap in Your Retirement Fund Endowment policies might be a fantastic way to supplement your current retirement fund. Assume you've calculated a sum that you believe would make up a suitable post-retirement corpus. However, while you labour, you discover that you are falling far short of the goal you set. The endowment strategy comes into action to fill this void. Endowment plans pay you a lump payment when you reach retirement age. If you pay your premiums on time, you will get this amount. You don't have to be concerned about returns because your money is protected in an endowment plan. 2. Assisting your child in achieving his or her further education goals One of the most important tasks to fulfil is to ensure your child's education. When it comes to your child, you don't want to take any chances. Even if you are not there, you may ensure that your child completes his higher education with the aid of an endowment plan. The premium protection plan is a provision included in many plans. a) The promised money is given to the family as soon as possible following the death. b) The remaining premiums will be paid by the life insurance, and your family will get the maturity benefit as usual. 3. Ensure the Future of Your Dependent An endowment plan helps you develop the habit of saving. For a long time, you have been saving a certain sum. This sum can be utilised to cover your dependents' future expenses. For instance, you must raise finances for your daughter's wedding. You create an endowment plan and invest for a specific amount of time, say 10 years. When your insurance matures, you will get a guaranteed maturity benefit, as well as extra incentives based on your policy's conditions. An endowment plan can also assist you in achieving other significant goals, as well as those of people who rely on you. Consider the following scenario. You are now married with children, and your next aim is to purchase a home in 15-20 years so that you may enjoy your retirement. With an endowment insurance, you may invest little amounts over the course of 20 years to build up a big corpus. Use this sum to purchase a home without placing a strain on your budget. 4. Leave a Legacy for Your Children's Children's Children's Children's Children's Children You want to assist not only your children, but also your grandkids in achieving their ambitions. It's been said that grandkids are the finest gift you'll ever get. You undoubtedly want to leave a legacy for them. You can achieve this with an endowment plan. By adopting this policy, you are ensuring a bright future for future generations. Endowment plans allow you to build money over time, which might be useful in the future. 5. Protect your hard-earned money What if you took a significant risk on an investment and it paid off handsomely? You now have a corpus on your person. You don't want to take any chances now that you've built up so much riches. At this moment, the endowment insurance is the safest instrument you may utilise. The value of an endowment plan's assets is unaffected by market fluctuations. Market volatility is largely absent. As a result, your money is built while the principal remains intact. You will receive the maturity advantage that was expected. Furthermore, you are eligible for wealth boosters and loyalty adds, both of which raise the worth of your money.

Life Insurance Charges: Five Factors to Conside As a savvy investor, you should set away a portion of your monthly profits for your long-term investments. As a result of this increased public awareness, numerous life insurance products have been introduced to assist you in investing cash for your long and short term life goals. However, insurance firms are sometimes blamed for imposing high life insurance premiums since these costs reduce the amount of the premium that may be invested. Furthermore, these insurance charges are rarely publicly discussed to policyholders and are never specified in the policy. As a result, in order to familiarise consumers and investors with these costs, the following are the many sorts of charges that may be found in an insurance policy. Charges for Premium Sum Allocation The advance costs deducted from the policyholder's life insurance premium are known as premium sum allocation charges. It is added to the insurance premium as a percentage. In addition, these charges account for the insurance company's primary expenses in allocating the life insurance policy. Medicals and expenses connected to distributor charges, cost of underwriting, and so on are examples of this. Furthermore, after subtracting these fees, the remaining premium amount is re-invested in the insured person's selected funds. Charges of Surrender or Discontinuance For premature encashment of a life insurance policy, a surrender charge may be deducted, either partially or completely. The annualised premium funds are frequently used to calculate the life insurance surrender charge. In addition, the IRDAI established standards for the maximum costs that life insurance firms can charge. The surrender or discontinuance fee on the unit capital value shall not exceed 50 basis points per year, and the insurance company shall impose no extra costs. You should also be aware that the IRDAI has set restrictions to limit the impact of these changes on the total benefit from the investible portion of your premium. Charges of Mortality These expenses are enforced in order to provide you with insurance coverage. When a life insurance policy is granted, the insurer assumes that the person covered will live to a certain age based on their current age, health, and gender. These monthly life insurance costs and charges recompense the insurance company if the covered individual does not survive to the predicted age. Furthermore, the exact amount spent under this heading is determined on the amount of life insurance sought, the policyholder's age, and other factors. The death charge table and this technique of computing the mortality charges are frequently included in the policy document. Furthermore, when customers buy an insurance or investment life insurance product like a ULIP, their primary goal is to make a profit. They must still pay the mortality costs on the chosen insurance package, even if they have adequate coverage. Fee for Fund Management These fees are normally levied by insurance companies for running your fund, and they are calculated as a percentage of the fund's value. Before arriving at the net asset value, or NAV, this life insurance fee is deducted. While the amount varies depending on the policy sum, life insurance firms cannot charge more than 1.35 percent per year in fund administration fees, according to the IRDAI's established limit. Debt-oriented life insurance policies, such as ULIPs, often have lower fund administration fees than equity-oriented life insurance products. It's also worth noting that fund management fees are applied to the accumulated value, not only the premium paid. As a result, the precise amount deducted as a fund administration charge increases in real terms as the corpus grows. Charges for Insurance Policy Administration This policy administration fee is deducted from the firm's organisational expenses related to the life insurance policy's maintenance. The filing fee, premium intimation, and other fees are normally included in these monthly fees. This fee might be constant throughout the life insurance policy's term or it could climb at a set rate. Alternatively, it may be a constant rate for the first 3-5 years and then multiply by a fixed rate each year. To summarise, as an investor, you must be knowledgeable about the many sorts of life insurance rates. Knowing about these fees will guarantee that your money are never depleted by unneeded costs and that you receive the most beneficial returns for a long time.

The yearly tax credit statement, Form 26, is very significant. This form includes information on any TDS deductions made from your previous year's earnings. When it comes time to file your income tax taxes, this paper will come in helpful. It's a document that contains a variety of tax-related data, including the following: a) Tax withheld from your earnings b) Tax paid in advance c) Tax paid through self-assessment d) Tax refunds received A valid PAN card is required to view the tax credit statement. From June 2020, 26AS will additionally contain data on some financial activities. What is the purpose of Form 26AS? Form 26AS is a declaration that accomplishes the following: a) A document that keeps track of the taxes you've paid when filling out your tax returns. b) It serves as evidence that TDS was deducted and collected. c) Serves as proof that the taxes have been received by the government. d) Assists you in matching and verifying real transactions with those that have been recorded. What is TRACES, and How Can I Use It? The Income Tax Department's TDS Reconciliation Analysis and Correction Enabling System, or TRACES, is an online platform. Both tax deductors and taxpayers benefit from TRACES. You may check and reconcile your taxes paid by enrolling on this page. This website provides easy access to Forms 16, 16A, and 26AS. Why is it necessary to obtain a copy of Form 26AS? Form 26AS is a consolidated statement that contains information concerning TDS and TCS, as well as the payment of refunds. This one form so aids you in identifying numerous aspects of your income tax and assists you in submitting returns. There are three methods to obtain a copy of Form 26AS. These are the following: 1. Using TRACES 2. Using the internet banking system 3. e-filing of income tax returns How can I get a copy of Form 26AS from Traces? To obtain a copy of Form 26AS, complete the procedures below: 1. Verify that you are a registered user. If not, go to https://eportal.incometax.gov.in/iec/foservices/#/login to get started. To register, use the register button. This may be found in the website's top-right corner. 2. Enter your PAN number in the registration option and continue. Will the application and your account be secure? You may skip this step if you've already registered. 3. Fill in your login information on the login screen. This will be your PAN, AADHAR, or any other kind of identification you used to register. Continue by pressing the enter key. 4. Select 'please confirm your secure access message' from the drop-down menu. You may make your message more secure by modifying it. This may be done by going to the profile part of the website. 5. Type your password in. 6. Select 'file' from the section's dropdown menu. Select Income tax returns, see form 26AS from the drop-down menu. You will be routed to the TRACES website after verifying. 7. Select View Tax Credit Traces from the drop-down menu. This information will be provided at the bottom of the page. 8. The Form 26AS window pops up. 9. Fill in the blanks with the information requested. The following are some of them: PAN card data for the year of assessment Your full name and mailing address To verify, enter the verification code that appears on your computer and then click on download. The PDF version of the form will be shown.

You may have aimed to attain several goals in your working life. You toil and earn to ensure that your life is valuable. You want to achieve all of your objectives and see that your family members reach their investing objectives as well. However, life is unpredictable. What if you were the sole breadwinner and died suddenly? Your family would face a financial catastrophe in such a situation. Everything they've been thinking comes to a standstill. Life insurance is required to ensure that your family members' ambitions and desires are realised. What is the definition of a life insurance policy? Life insurance protects you and your loved ones by providing financial support if you are unable to be with them. In the case of your death, your dependents will receive a lump sum payment from the insurance. You must pay tiny amounts known as premiums on a monthly basis in exchange for this coverage. Your coverage will not be activated unless premiums are paid. ULIPs, Savings plans, Term plans, and other types of life insurance are available. What is the definition of term insurance? Term insurance is a sort of life insurance that covers you for a set amount of time, or a 'term.' It is the most basic and cost-effective type of insurance. a) You may purchase a policy for a period of time ranging from 5 to 30 years. b) You choose the term and pay the premiums throughout the duration. c) If you die within the policy's term, your family will get the sum assured that you agreed to when you bought the policy. d) However, if you live to the end of the insurance term, you will not be entitled to any benefits at maturity. e) Some plans in case you live to the end of the insurance term, you will be refunded the amount you paid in premiums.

You may have aimed to attain several goals in your working life. You toil and earn to ensure that your life is valuable. You want to achieve all of your objectives and see that your family members reach their investing objectives as well. However, life is unpredictable. What if you were the sole breadwinner and died suddenly? Your family would face a financial catastrophe in such a situation. Everything they've been thinking comes to a standstill. Life insurance is required to ensure that your family members' ambitions and desires are realised. What is the definition of a life insurance policy? Life insurance protects you and your loved ones by providing financial support if you are unable to be with them. In the case of your death, your dependents will receive a lump sum payment from the insurance. You must pay tiny amounts known as premiums on a monthly basis in exchange for this coverage. Your coverage will not be activated unless premiums are paid. ULIPs, Savings plans, Term plans, and other types of life insurance are available. What is the definition of health insurance? In exchange for recurring premium payments, health insurance promises to cover all or part of your medical expenditures. The value of having a health insurance plan for yourself and your family cannot be overstated, especially as medical expenditures continue to rise year after year. There are two forms of health insurance: private and public.

What is a Liquid Fund, and how does it work? A Liquid Fund is a Debt Mutual Fund that invests in short-term assets such Treasury bills, repurchase agreements, commercial papers, government securities, and certificates of deposit.  Liquid funds must invest exclusively in debt and money market securities, according to the SEBI. Liquid Funds have a 91-day maturity period and no lock-in period. Taxation of Liquid Funds A conventional rule of thumb is that a mutual fund is considered equity-oriented for tax purposes if it invests 65 percent of its assets in stocks. As a result, even Debt Funds that invest a portion of their assets in shares are subject to the same taxation. The remaining assets are placed in fixed maturity plan funds, gold funds, or liquid funds, which are taxed similarly to Debt Funds. Let's take a closer look at the tax consequences of Liquid Mutual Funds alone. Dividends are subject to taxation. You can pick between dividend-paying and capital-gain-paying Liquid Funds while investing. If you choose the former, the fund will pay you dividends from its earnings and revenue. Dividends are a type of income that, in theory, compels taxpayers to pay income tax. The Dividend Distribution Tax was repealed by the government in Budget 2020. As a result, dividends generated on Debt or Liquid Funds are tax-free Capital Gains Tax (CGT) Liquid Fund is a non-equity investment vehicle. As a result, it is taxed in the same way as a Debt Fund is. Liquid Fund gains are referred to as Short-Term Capital Gains when held for less than three years (STGC). Long-Term Capital Gains apply to Liquid Funds that have been held for longer than three years (LTGC). LTGC is taxed at 20% for Liquid Funds, and investors can take advantage of the indexation benefit. The term "indexation advantage" refers to the recalculation of the purchase price to account for inflation, hence lowering the tax effect on LTGC in Debt Funds. The Debt Liquid Fund earnings are added to normal income and taxed according to the investors' income tax slabs for short-term gains. As an investor, if you are in the 30% tax bracket, your maximum tax rate is 30%, but if you are in the 20% bracket, your maximum tax rate is 20%. If you want to add a short-term investment tool to your portfolio, liquid funds are a great option. Although taxable, Liquid Funds can provide tax benefits if held for prolonged periods of time.

A sector fund is an equity fund that invests in a certain industry or industry sector. These mutual funds invest in areas such as utilities, real estate, healthcare, and communication, among others. These funds, also known as Sectoral Funds, may invest in the stocks of top-performing firms in a given sector. What are Sector Funds and How Do They Work? Sectoral Funds, like Equity Funds, invest in securities from a variety of firms. The main distinction is that different firms may be in the same industry. On certain days, the banking sector may outperform the technology sector, while on other days, pharmaceutical stocks may be positive. Investors may put all of their money into a single area and profit from growth prospects with Sector Funds. According to the SEBI mandate, fund managers must invest at least 80% of their total assets in a specific sector's equities and equity-related securities. The Advantages of Investing in Sector Funds When a sector does well, the firms that make up that sector prosper as well. You may generate high returns by investing in specialised Sectoral Funds. Sector Mutual Funds for Diversification allow you to diversify your investing portfolio. You can acquire stocks from different firms in the same industry. Sector Funds have volatility and liquidity concerns in addition to concentration risk. As a result, if a sector performs well, you can anticipate higher returns, and if it performs poorly, you may expect lower returns. Fund managers may have to sell shares at a loss to limit prospective losses. Horizontal Investment A sector, like any other investment in any other business, will take time to mature and deliver positive outcomes. If you can invest for five years or longer, you should consider Sector Funds. Taxation Short-term capital gains (STCG) are taxed at 15% on Sector Funds held for less than a year. Long-term capital gains tax is a tax on funds held for longer than a year (LTCG). LTCG profits of up to INR 1 lakh are tax-free, however gains of more than INR 1 lakh are subject to a 10% tax.

Defining and Using the Term "Fund of Funds" Instead of investing directly in equities or other asset classes, a Fund of Funds (FoF) is a unique Mutual Fund strategy that invests in Hedge Funds and other Mutual Funds. When you invest in a Debt Mutual Fund, for example, the fund management directly invests your money in debt and debt-related assets. The fund manager will first assign money to a Mutual Fund scheme, and then the Fund of Funds Mutual Fund scheme will invest in funds of equity, debt, or mixed mutual funds in the case of FoF. What Sets Fund of Funds Apart? So, does it make a difference whether you invest directly in stocks and bonds? Essentially, Fund of Funds help with portfolio diversification and risk reduction. The FoF will invest in either the same or various fund firms' mutual fund schemes. Asset allocation funds, gold funds, overseas FoFs, and multimanager investment FoFs are the many types of Fund of Funds available in India. The Fund of Funds Scheme has a number of advantages. Diversification FoF focuses on the best-performing Mutual Funds across all assets and sectors, allowing you to maximise returns while minimising risk. They also put their money into Hedge Funds. Cost Because FoFs invest in other Mutual Funds, you may be responsible for the cost ratios of all other Mutual Funds, as well as fund manager commissions and other management expenses. Taxation FoFs are treated as non-equity schemes for taxation. Short-term capital gains apply to FoFs held for less than three years and are taxed according to your income tax bracket. Long-term capital gains on FoFs held longer than three years are taxed at a rate of 20% plus indexation. Investment vistas In India, fund of funds perform well when kept for a long time - often three years or more, depending on market conditions. Conclusion The Fund of Funds plan is perfect for investors who want to diversify their portfolios without having to worry about market timing or examining all of the schemes' NAVs. At a moderate risk, a well-diversified investment portfolio delivers decent returns. Before investing in FoFs, make sure you analyse the expenses, risks, and investment goals and make educated selections.

What is a mutual fund's SWP? The SWP is a mutual fund investment in which you specify that a set amount of money be transferred from your mutual fund investment to your bank account on a regular basis. Assume you're seeking for an investment option that will allow your investment to grow while also allowing you to collect money from the corpus on a regular basis. The money can be credited to your bank account on any day of the month, quarter, or year that you specify. By redeeming mutual fund scheme units at regular periods, the SWP Plan provides cash flow. You will continue to receive regular payments through SWP for the time period you specify or until the corpus amount is depleted. For example, an investor may contribute Rs. 10 lakh and request that Rs. 10,000 be paid every month on the first. Then, on the first of every month, units valued Rs. 10,000 will be redeemed. SWP is a good option for people who desire a regular source of money in their account throughout their retirement years or who want a regular base of money. The opposite of the Systematic Investment Plan is the Systematic Withdrawal Plan (SIP). SIP, on the other hand, is a method of investing in a mutual fund plan on a regular basis. SWP offers you with consistent cash flow and helps you to build your mutual fund investment. There are three compelling reasons to use a methodical withdrawal strategy. It's crucial to keep in mind that the tax treatment of dividends and SWPs differs, so investors should prepare accordingly.

A top-up personal loan is a loan that you can take out on top of your current personal loan. This loan can be obtained from the same lender that approved your previous loan. This facility allows you to get more cash while continuing repaying an existing debt. You can utilise the loan cash to cover any additional costs or financial obligations. Loans for Individuals You would not be required to submit any collateral because you will be paying EMIs on the initial, unsecured loan. Rapid Approval: If you apply for a top-up loan with your original lender, you'll obtain instant approval and a quick disbursement. Extended Payback Period: Your lender may be willing to prolong your repayment period. Low Interest Rates: On the Personal Loan Top-Up facility, lenders may update and provide reduced interest rates. Discounts: You may be eligible for loan processing fees and other expenses to be waived or reduced. Eligibility for a top-up loan The following are the requirements for Top-Up Personal Loans: You should already have a personal loan. You should not have defaulted on the initial Loan EMIs since you should have paid them on time. On the original loan, you should have paid at least 12 EMIs. How can I apply for a personal loan to supplement my current income? Do you want to know how and when you can pay off your loan? We've got you covered. First and foremost, see if your current lender offers Top-Up loans. If a lender offers a top-up option to existing clients, you can apply without having to submit any additional papers. If not, you might seek for Top-Up loans from other lenders. In this scenario, you must complete the documentation process and transfer your active loan to another lender using balance transfer options. You can apply for a Top-Up loan from your new lender when the balance transfer is completed. You might try topping up your loan to acquire a cheaper interest rate and a longer payback period on your present loan. Remember to weigh the charges of the top-up loan, such as processing fees, balance transfer fees, and other fees. Last but not least, Top-Up Personal Loans are beneficial in a variety of ways. You may utilise the money from the loan to consolidate debt, pay for financial crises, fund vacations, and more. The maximum Top-Up loan you may acquire varies by lender and is based on the initial loan amount repaid, the original loan's remaining term, your income, and other considerations.

Did you, like the majority of other automobile owners, get motor insurance just to comply with the law? Then you are aware that in the event of a natural disaster or an accident, your comprehensive motor insurance will cover any third-party damage, car repairs, and hospitalisation costs for you (owner-driver). What you may not realise is that you may boost your insurance coverage by adding some optional policies. Consider the following add-on covers: automobile insurance Zero Depreciation: Over the years, you may need to repair various components of your automobile as they wear out due to normal use. However, a standard comprehensive automobile insurance policy does not often cover these costs, and you will be responsible for them. The Zero Depreciation add-on, on the other hand, incorporates the depreciation component of the insurance, providing complete coverage. This option is typically good for five years from the date of vehicle purchase. Additionally, you can recover the complete cost of replacement components in the event of an accident with this add-on. No Claim Bonus Protection: If you do not make a claim throughout the life of your policy, you are entitled to a No Claim Bonus (NCB). This implies that when you renew your policy the following year, your premium will be reduced. However, if you file a claim, you forfeit this advantage. However, the No Claim Bonus Protection add-on guarantees that you will receive your NCB regardless of whether you make a claim, resulting in a reduced premium. Certain insurance firms, however, may deny you the NCB Protection benefit if you make more than two or three claims within the policy's term. As a result, verify with your insurer before to purchasing the add-on policy. Roadside Assistance: Even the best-maintained car might have mechanical problems and breakdown, leaving you stranded in a distant spot. This is when an add-on for Roadside Assistance comes in handy. It assures that your insurance will give services such as a technician, towing, and assistance with battery-related issues, among others. This is a great add-on if you are a frequent automobile user who travels large distances. Many car insurance policies now include this optional coverage as part of the standard comprehensive policy. Engine Secure/Protection Coverage: The standard comprehensive automobile insurance policy does not cover damage to the engine of your car. However, the add-on Engine Protect cover does. If you reside in a region prone to floods, this add-on cover is necessary to protect your engine from damage caused by waterlogging. This is also a great add-on if you own a high-end luxury vehicle, as servicing such engines may be extremely costly. Return to Invoice Coverage: This optional coverage assures that in the event that your vehicle is stolen or damaged beyond repair, your insurer will compensate you for the vehicle's original invoice value, including road taxes and registration fees. It is normally offered for automobiles with a maximum age of three years. It is possible that it will not be accessible for imported vehicles. Consumables Coverage: When repairing a vehicle, you are responsible for small-ticket consumables such as nuts and bolts, oil, and screws. Even these small-ticket things might put a dent in your pocketbook if you drive an expensive automobile. It would be beneficial if you purchased this add-on so that your insurance would pay for them. Passenger Accident Coverage: This is often a one-time payment of Rs. 1 lakh in the event of a passenger's death, injury, or disability as a result of an accident. Key Replacement Cover: Do you frequently misplace your keys? Then this add-on cover is a must-have for you. This coverage kicks in if you misplace or lose your keys. If you recover your car after it has been stolen, this coverage will replace your lock and key system. Accidental coverage for the driver: If you have a driver, this add-on makes sense. It will cover your driver's medical expenses in the event of an accident. Bear in mind that these optional coverages will increase your rate. Additionally, some of them may not be compatible with older automobiles. Ensure that you examine these conditions prior to purchasing the one that matches your requirements.