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Insurance

What Should Be A Priority, Life or Health Insurance?

Adulting is often hard, especially at the start. With newfound financial resources at your access, it is the time to get smart and start applying that money in the right places. This new phase of your life is characterised by first splurging money on yourself, then buying cool new gadgets and then finally realising that it isn’t the sustainable way to create wealth. That’s when you learn and explore financial planning.

Financial planning involves many different avenues to choose from. However, it also makes it clear to be prepared for pitfalls that might come as a demise or medical emergency in your family. No person is immune to these situations, it is best to take the prudent approach and plan from the very start. Here’s when you discover about insurance forming a crucial part of your financial planning. When it comes to buying one, there is a debate between life insurance vs health insurance.

A life insurance policy provides for financial support to the beneficiaries whereas a health insurance cover provides financial assistance for medical treatments. Thus, life insurance works after you are gone, whereas a health cover works while you are there. Both these insurance covers are essential in your life, but different stages of your life deem different things as important. When you are young and healthy, a health insurance cover is a better bet since the chance of a medical ailment leading to fatal consequence is remote. Thus, health insurance can be a priority at early stages. Here are some reasons why health insurance should be a priority:

The treatment costs are sky-high

When you have just started your career, an unexpected medical emergency can set you back by all possible savings you have ever made. In addition, the soaring medical inflation makes it extremely difficult to save up for such medical emergency. Also, at a young age, the income opportunities are limited thereby leading you into a financial crunch and all of it for medical treatment. Thus, you must opt to buy health insurance plan early in life. Not only does it offer necessary medical coverage, but also avoids financial hiccups in these torrid times.

Increasing health concerns

There are increasing instances of ailments that are seen to grip the young due to their sedentary lifestyles. Moreover, working for home being a standard in the post pandemic world, there is even higher risk due limited physical activities. Thus, a health insurance policy serves as a perfect backup to avoid such snags. Further, the possibility of an accident cannot be completely eliminated when a health insurance policy ensured medical treatment too.

To avoid reliance on employer’s insurance cover

Corporates often provide health insurance coverage under a group insurance policy. But the limitation of this policy is till you are associated with the organisation, your coverage exists. After quitting, there is no coverage and you are exposed to various perils. To avoid such unwarranted situations, it is best to purchase either individual policy, family floater policy, health insurance for senior citizens for your parents, or even a critical illness cover based on the medical history of you and your family.

While these are some benefits of a health cover, do not overlook the importance of a life insurance policy. you must remember to not consider either life or health insurance in isolation but, in fact, both go in tandem. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.

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Insurance

How Does Having a Zero Depreciation Car Insurance Offer Greater Benefits During Claims?

Buying a new car can be an exciting. The test-drives you get to experience and then finally coming to terms to select your favourite car among the lot. But it isn’t done when you finalise your car. Registration and insurance are compliances that need to be met. While the registration is managed by your vehicle dealer, car insurance is in your control. Selecting a car insurance policy offered by your dealer can be one alternative, but it may not always make the cut. At times, it may not be even the right fit for you. Thus, comparing various policies is necessary before finalising any.

When you buy car insurance, online or offline, there are essentially two types of plans to choose from—a third-party cover or a comprehensive coverage. The former policy is the bare minimum but lack sufficient protection for you brand new car. Hence, most buyers opt for a comprehensive policy. A comprehensive policy offers advantage of own-damage cover alongside the mandatory third-party coverage. Also, the damages that may be sustained due to natural disaster and man-made perils are also insured under this. Moreover, a comprehensive policy allows for customising your insurance cover with the help of add-on facility. * Standard T&C Apply

Add-ons are optional policy features that extend the scope of your policy and offer broader coverage for various perils. One such add-on is the zero-depreciation cover. Like all machineries and equipment are subject to deterioration due to time, cars are likewise impacted due to it. Thus, whenever a claim is raised, the insurance company pays the compensation after considering the impact of such depreciation on the car. This, in effect, lowers the compensation that is paid.

To circumvent this, you can buy car insurance online with a zero-depreciation cover. What is does, basically, eliminates any effect of depreciation that will impact the pay-out at the time of claim. Hence, the insurer no longer considers the depreciation factor on your car when paying for the claim raised. Popularly, zero-depreciation cover is also known as nil depreciation plan and is often offered as a bundled feature with comprehensive policies. * Standard T&C Apply

Not considering depreciation in your insurance claim has the effect of lowering the out-of-pocket expenses in addition to enhancing the insurance pay-out. Thus, you will be required to pay for the deductibles in your policy while the majority of the expenses are covered under the insurance scope.

You must also note that every spare isn’t covered under this add-on. Consumable spare like batteries, tyres, and those accessories that aren’t part of the standard product are outside the purview of this coverage. Additionally, breakdowns due to wear and tear are also not covered. Since the insurance cover is an add-on, each insurance has different terms and you must read the fine print to understand what is included and excluded from this policy.

Moreover, the zero-depreciation add-on being an additional feature impacts your premium pushing it even higher than your comprehensive policy. You can make use of a car insurance premium calculator to know its impact on the premium. A zero-depreciation policy is best suited for new cars that aren’t older than 5 years. But, the terms of certain insurance companies may differ.

So, to protect your brand-new car, it is advisable to buy a nil depreciation add-on with your comprehensive policy. Also, make sure to buy at ever car insurance renewal online that helps to ensure continued coverage. Lastly, do keep in mind that insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.

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Insurance

When is the right time to buy life insurance policy?

Someone has rightly said, “Planning to support your loved ones, even when you are not there, is the real sense of responsibility”.

It is interesting to note that people often refer to life insurance as ‘love insurance’ because it secures the future of your family. While some people may delay taking term insurance others may completely ignore it only to regret it later.

If you are wondering when is the right time to buy a life insurance policy, allow us to get you at pace with all the relevant information. So, let’s get started.

What is Life Insurance? 

This is a contract between an insurance company and the policyholder. Here the insurer assures to pay a promised sum amount to the beneficiary upon the death of the insured person.

Types of Life Insurance Policies: 

  • Term insurance
  • Term insurance with return of premium
  • Unit Linked Insurance Plans
  • Endowment plans
  • Moneyback policy
  • Whole life insurance
  • Group life insurance
  • Child Insurance Plans
  • Retirement Plans

When is the Right Time to Buy a Life Insurance Policy?

The answer to this question is extremely simple.

You should start investing in term insurance as soon as you can. The reasons for starting early are plenty.

If you invest in a life insurance policy early on in life, the premium payout will be lesser. It is a general notion among buyers that one should invest in life insurance only once they have settled in their life. But if you choose to do so, you may have to pay a higher premium.

Not just that, but there could be additional expenses at that state in your life like your children’s higher education, unexpected medical expenditure, and so on, which may put you in a stiff spot financially.

It is a wise decision to invest in a personal or joint life insurance policy as soon as you have dependents. This could include your retired parents, spouse, or children. On a rough estimate, a person in his early 30s would have to pay about ₹ 8000 for a term cover of ₹ 1 Cr whereas a person in his 60s might have to pay more than ₹ 11,000 for the same amount.

Not only life cover, but a good insurance policy can give you returns as well as double up as a retirement plan. In this dynamic market, you can go for the most profitable term policies when you start early.

Benefits of Buying a Life Insurance Policy

Some of the top benefits of a life insurance policy are –

  • It provides financial security
  • It secures your child’s future allowing you to give them the best education.
  • Life insurance prevents the burden of a loan over your family’s head.
  • If your life insurance scheme gives you a pension upon maturity, it works as a good retirement plan
  • Assured tax benefits

Several financial companies offer a variety of life insurance policies with multiple benefits. You can take some time to compare one term insurance with another and choose the best one that suits your needs.

With a simple policy, give your family the financial assurance they need.

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Insurance

Should You Buy a Term Policy after You are 50?

While setting financial objectives and goals throughout your career, purchasing a term life insurance is among one of those plans that is ideally executed at a young age. That is simply because; buying a term policy can become inconvenient and costlier as you get older. Generally, the premiums will not be as low for a person purchasing the policy in their 50s as compared to a person opting for a policy in their 20s or 30s. However, taking a term policy late in life can still act as a safeguard substitute of payments towards the policyholder’s dependents in the event of his/her demise.

Is buying a term policy above the age of 50 the right decision?

The sole purpose of taking a term policy is to ensure that your dependents are not left helpless by your demise. But taking life insurance coverage after crossing the age of 50 is relatively unusual. However, there are certain term policies specifically for those who fall in that category and these plans have great advantages as well. Nevertheless, there are still questions over whether these term policies are wholly beneficial to those who are nearing the retirement age. So, here’s a look at the benefits of taking a term policy even after you turn 50:

  • Financial security of your dependents/loved ones: By taking a life insurance policy after the age of 50, he/she may be able to leave behind a sum of money at the time of his/her passing. If the policyholder has kids who are not financially settled, those funds might help them survive without their primary dependence. Here, the term policy insurance can play a huge role in securing the future of the policyholder’s loved ones.
  • Alternative to income from pension:In most cases with government workers, the income received from the pension for spouse or children may come to a halt after the policyholder’s demise. Hence, the ‘death benefit’ from an over 50s life cover can be a suitable replacement for regular income for the family. Also, a term policy with survival benefit options allows the policyholder to enjoy its benefits even during his/her lifetime, by providing monthly income on attaining 60 years of age.
  • To pay off liabilities and debts: Term policies can also be taken by those who have outstanding debts that need to be paid off. It can be considered as an excellent option for those above 50 if they owe money to others or are still paying off their loans. Following the policyholder’s passing, the insurance from the term can pay for the money owed by him/her.
  • Continuing work after retirement: One more situation where term insurance benefits might come in handy is when the policyholder is officially retired but continues working owing to his/her financial responsibilities. A term policy can provide income for the family even after his/her passing and the plan can preferably be taken if the person is the sole breadwinner of the family.

Even though most term insurance policies provide protection to the close ones of the policyholder at his/her untimely departure, insurance companies classify deaths into various categories. Based on whether the deaths are covered or not covered is then decided but in certain cases, the insurance company may decline to pay depending on the life insurance term plan. If your family is unable to receive the sum assured in your absence, buying a term plan will be considered meaningless. Hence, it is vital to understand and go through the fine print of your policy before purchasing it.

What is the term insurance age limit?

When purchasing a term insurance policy, it is also crucial to know the term insurance age limit as the investment plan has a minimum and maximum eligibility age. A term policy can be purchased from anywhere in the range of 18 to 65 years of age. It is also possible to opt for coverage until the age of 99.

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What Are The Advantages Of Life Insurance?

People generally ignore buying a life insurance policy because they believe it is not required. But a mishap or sudden accident can take the lives of the people. What would happen after that? If that person is the only earning member of the family, managing rents, loans, child expenses, EMIs, etc. would be extremely difficult for the other members without a stable source of income.

Critical illnesses, medical conditions, road accidents, etc. can claim your life or leave you with permanent disabilities. Road traffic injuries affect the lives of up to 50 million people each year and result in approximately 1.35 million deaths. This is why planning for an uncertain future is advisable.

Advantages Of Buying Life Insurance Policy

Apart from securing your family’s financial future, life insurance also offers tax benefit. The death benefit (insured amount) to be paid to an insurer’s family is generally tax-free. Even if the insurer survives, the maturity benefit offered is tax-free to some extent. The benefits of such policies are –

  1. Helps In Managing Debt – You may have a house loan or a car loan on your head. If anything happens to you unexpectedly, your family would have to bear the burden of your loan. However, if you have invested in an insurance policy, the amount your beneficiary will receive from the insurance payment could be utilized for paying the loan.
  2. Peace Of Mind – When you hear the news of a relative or acquaintance dying suddenly due to an illness or accident, you may get worried thinking about what would happen if something of that sort happens to you. As a sole bread-winner, it is your responsibility to provide for your kids and family but in your absence, they would have to struggle and compromise on their living standard to save money. These thoughts can be stressful. However, if you have bought a policy, you can be completely stress-free about your family’s financial future.
  3. Monthly Payment – You can choose whether you want your family to receive monthly payments or a lump sum amount after the policy matures. If you go for monthly payments, your dependents would get a fixed amount each month, which can be used to pay for electricity bills, loans, rents, tuition fees, and other monthly expenditures. This income would compensate for the finances that would discontinue if the earning member dies.
  4. Various Choices – Life insurance policy is of several types, such as whole life policy, term life policy, etc. and even within those types, there are numerous choices. So, you can buy a policy according to your need as well as for a specific time period. You can even buy insurance without any term or time period. There are policies with decreasing premium amount as well.

The Bottom Line

A life insurance policy has become an essential investment in the current time as it offers numerous benefits. The biggest advantage of buying a policy is that it offers financial protection and security to the people who are dependent on your income.

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Insurance

Five things you need to know about National Insurance Contributions (NICs)

If you are over the age of 16 and want to quality for certain UK benefits, including the State Pension when you retire, you will need to pay National Insurance Contributions (NICs) as part of your tax obligations to HMRC. You will also need to be an employee earning more than £166 per week, or be self-employed and making a profit of £6,365 or more per year.

Calculating your NICs eligibility is easily done as part of your self-assessment tax return filing, or your employment PAYE arrangements. Employees can see the details of their NIC payments that have been deducted at source on their payslips, while their self-employed counterparts will need to work out what they need to pay via their tax return calculations.

You can work out your earnings in precise detail using payslips, paper/electronic evidence of self-employed income, such as client invoices and bank records, plus any details of expenses you intend to deduct from your taxable income that have been recorded in a receipt management tool, software package or filing system. This will help you work out exactly how much you owe HMRC for both NICs and income tax purposes.

Know your number

To start making NIC payments and building up your future entitlement to State Pension and other benefits, you will need to know your National Insurance number. This is set up for you when you turn 16 years old and remains the same throughout your entire life. As soon as you start making NICs, your payments will be recorded and tracked against your National Insurance number to make sure that you have contributed enough to qualify for the appropriate benefits when the time comes to claim them.

If you earn between £118 and £166 per week, your NICs will be treated as having already been paid, in order to protect your National Insurance record. Any earnings you make over the £166 weekly threshold will be subject to you making your own NICs.

Know your class

A system of various classes differentiates the amount of NICs you need to make, and the way in which they will be paid. The details are as follows:

Class 1: Employees who are earning less than £166 and are under State Pension age. NICs are paid directly by your employer, deducted from your pay at source via PAYE and detailed on your payslip.

Class 1A or 1B: These contributions are based on an employee’s expenses or benefits, as opposed to their main salary or wages, and are paid directly by the employer, again via PAYE with details on the payslip.

Class 2: Self-employed people earning more than £6,365 per year. If you earn less than that, you are not obliged to pay Class 2 NICs, but you can still make contributions voluntarily to help avoid any gaps in your National Insurance record.

Class 4: Self-employed people earning profits of over £8,632 per year. Class 4 NICs are calculated and settled via the self-assessment process and are often paid alongside Class 2 NICs.

More information

Some people will qualify for more than one class of NICs, for example if your main source of income comes from an employed position, but you also carry out paid, self-employed work alongside it. In this case, your employer would take your Class 1 contributions directly from your salary via PAYE, while you cover your Class 2 or 4 NICs yourself via your self-assessment tax return. The total amount of NICs you will need to pay in total will depend entirely on how much you earn as a combined income. Employers also have to pay National Insurance contributions for each of their eligible employees, with their rate depending on how much each separate employee earns.

There are a few exceptions for whom different NIC rules apply, including company directors and landlords running a property business. Check online to find out more if you think this applies to you. You can also read more about NIC classes and rates via the Government’s website: www.gov.uk, as well as what to do if you think you have overpaid NICs.

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Insurance

Here’s how you can accurately calculate your term insurance premium

The sudden demise of a person not just creates a void in life but puts financial pressure on the family members as well. The best a person can do is to opt for an insurance plan to secure its family member’s life which wouldn’t wreak havoc in their life after their beloved’s demise. The term insurance premium calculator comes to the rescue for future planning. It can be paid depending upon the option that the person may opt for like monthly, quarterly, half-yearly or annually.

What is Term Insurance Premium Calculator?

It’s a tool to calculate the premium to be paid by an individual based upon their salary and the plan they opt for. The premium calculated depends upon various factors such as age, gender, income, lifestyle and term period. The term insurance premium calculator allows an individual to easily compare different term plans offered by different companies. The number of term plans being offered by different companies is huge, so to escape the trouble of selecting the best plan for your family, an individual can just enter a few details and within no time you will get the e-premium to be paid by an individual. They may customize this information as per their convenience.

Factors to calculate your term insurance premium:

Certain factors influence the premium policy rate. So, to get hold of the best plan, a person needs to provide with credentials which are as follows:

Age

The first and foremost vital point to be considered for calculating the term insurance premium plan is age. An individual’s age will be one of the deciding factors for the premium rate. The younger the insurance buyer is, the lesser the amount of premium he has to pay.

Insurance requirement

Different plans offered caters to different need of the insurance buyer. So, the term plan should be availed as per the financial goal and the needs of the buyer,

Coverage amount

According to the future needs and the rate of inflation, the coverage amount should be decided priorly to calculate the premium for the individual.

Gender

It is considered to be important because females are assumed to live longer than their counterpart.

Selected Policy term

It is often seen that longer the duration of the chosen term plan, the lesser will be the insurance premium. So, it’s always suggested to opt for plans with longer duration rather than the plans with shorter duration.

Occupation

The industry in which the individual has been working is required to be mentioned to compute the risk factor in that industry. For example, insurance buyer from fishing, mining and shipping industries are subjected to higher risk at work rather than the one working at an office. So, they have to pay higher premium rates.

Benefits of term insurance premium:

  • Time-saving technique: The computation of e-premium for an individual, doesn’t require them to submit any hard copy document. Once the details have been entered, it would suggest the best plan in no time.
  • Comparison of various plans: Fretting over the comparison of numerous plan available in the market can be frustrating but with the help of this tool, things ease out.
  • Cost-effective: The individual can get hold of the required information for his insurance plan without having to pay any hefty amounts.

The credentials provided by the individual should be correct to get the most beneficial plan. So, with proper research and taking into consideration the future plans, an individual can always opt for the best plans offered. To know more about how to calculate term insurance plans, read the above-mentioned points thoroughly.

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Top 6 Reasons to Take Travel Insurance for Your Next Trip Abroad

Travel insurance is one of the most crucial things to purchase for an overseas trip. It does not matter if you are abroad for a short duration, for leisure, or for a business purpose. If you are taking a flight, cruise, coach or any mode of transportation, check for an ideal insurance plans suited for your needs. Insurance for travel can cover theft, personal loss, medical care, and other damages, events that are unforeseen.

Here are 6 major reasons why you should get travel insurance for your next trip overseas.

  1. Loss of Baggage

The most common snag that you can encounter during a trip is the airline or coach company losing your baggage. It can mean you having to repurchase everything that you lost in the luggage, including valuables. Though more often than not the luggage is returned to the customer, the time taken for recovery needs to be considered.

And the loss you go through if the luggage is never recovered, is something you have to bear on your own, until you choose to buy international travel insurance to safeguard against such events. It is then you will receive an adequate cover for the replacement of the lost items.

  1. Health Treatment

What if you fall sick or need medical attention during travel? What if you are in a different country and due to a medical condition you need to cut your trip short? All the medical attention and emergency trip back can incur a heavy expense. Travel insurance will usually come with a health cover, which will take care of all the related costs and arrangements.

  1. Loss of Documents

One of the biggest disasters you can face while travelling, is losing your Passport. Losing your passport can mean difficulty in making any further trips and getting through the security checks at airport. Good travel insurance will cover assistance to replace the Passport and help you get home or continue your trip, if any such untoward incident occurs.

  1. Trip Cancellations and Connections

If you had to cancel your trip due to an unfortunate event or missed connecting flights, then insurance for travel will cover for the arising expenses. It will also cover alternative transport arrangements to your destination and help find accommodation in case you are stranded on route.

  1. A Worriless Trip across Europe

When visiting Europe, you can be financially covered for any possible challenge such as that related to health, unanticipated expense, baggage loss, personal accident, legal liability, etc. All you have to do is opt for Schengen travel insurance from your insurance provider. It can be availed by anyone travelling temporarily to Europe from a country, which has visa requirements.

  1. Civil War or Terrorism

Some of the travel insurances can reimburse journeys that you do not undertake because of an act of terrorism or civil war at the destination spot. Though such acts are relatively uncommon, but if you plan to travel to a country that is going through a politically tough phase or susceptible to acts or terrorism, then taking an insurance for overseas travel should not be avoided.

So when you book a trip abroad next and given an option to add travel insurance along, do not think twice.

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Insurance

What Kind Of Travel Insurance Policy Claims Can Be Denied?

Travel insurance policies are must whether you are going on a domestic or international trip. Availing an insurance scheme helps you overcome financial losses incurred due to any unwanted incident that may happen during your trip.

Travel insurance companies offer policies that can safeguard you against monetary loss due to missing baggage, flight cancellation, loss of wallet, and many other similar situations. Abiding by the terms and conditions laid down by the insurance providers will help you avail reimbursement of your losses without any hassle.

However, your claims must comply with the same for a successful acceptance. There are various scenarios when companies can reject the same.

These include:

  1. Loss or damage to your belongings due to intoxication

Travel insurance cover loss or damage to your belongings. However, you will not receive the reimbursement if the same happens due to intoxication on your part.

For instance, baggage loss is covered under perosonal trip effects cover offered by Bajaj Finserv under its Pocket Insurance product category. However, it excludes baggage loss claims if the baggage is lost when the policyholder was under the influence of any intoxicating substance.

  1. Reporting baggage loss after 24 hours

You must make a claim for baggage loss within 24 hours. Travel insurance companies may deny the same if you report the loss post this period.

  1. Loss or damage to your belongings caused deliberately

Any deliberate loss or damage to your belongings will make the insurance company to reject your claim.

  1. Not providing documents to claim baggage loss

Travel insurance companies in India will reject claims for baggage loss if you don’t provide the necessary documents. Some of these include Property Irregularity Report (PIR), copy of passport/visa, documents to show proof that you have availed airline compensation, a letter from the airline accepting loss of your luggage, etc.

Hence, make sure to get all of these documents in place before claiming reimbursement against baggage loss from your insurance company. Pocket Insurance schemes like domestic holiday cover brought to you by Bajaj Finserv further simplifies the claiming process.

  1. Damages to your home caused by nuclear, biological, or chemical events

Home protection insurance policies cover theft and damages to the items in your house when you are away. The scheme will not come into effect if the same is caused due to nuclear, biological, or chemical events.

Travel insurance providers offers policies that cover financial losses caused due to theft and damages to your belongings in case of a burglary when you are on vacation.

Pocket Insurance schemes like home protection insurance from Bajaj Finserv offers coverage up to Rs. 5 Lakh in case of loss due to burglaries.

  1. Damages to the vehicle caused by traffic rule violations

Road trip travel insurance policies provide roadside assistance in case your car breaks down. However, you will not avail these benefits if you have damaged the vehicle due to traffic violations on your part.

  1. Personal accidents claim because of mental illness

A Domestic Travel Insurance Policy keeps you protected in case of personal accidents. It will reimburse the expenses you incur to avail treatment.

However, a travel insurance company may deny a claim if the accident arises due to mental illness. For example, the policy provider may not cover self-inflicted injuries.

  1. Personal accidents caused by adventure sports

Some travel insurance schemes don’t cover accidents caused due to adventure sports. Companies have dedicated plans specifically for such activities.

  1. Trip cancellation by the travel company

Travel insurance schemes will keep you protected when you cancel the trip. What they may not cover is trip cancellation by your travel company. In such situations, the travel company will reimburse your expenses.

There may also be various other situations which your travel insurance does not cover. One of the ideal ways to keep a note of the same is to meticulously read the terms and conditions laid down by different travel insurance companies and choose the one that best suits your needs.

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Insurance

Protect Your Identity Cards While You Are On A Vacation

Vacation is your time to relax and enjoy – and the last thing you want is to worry about identity theft by fraudsters. Unfortunately, leaving your house for a trip can also expose you to several unknown threats which could paralyse you financially and legally. Therefore, it’s essential to make sure you’re protected under an identity theft insurance plan before you venture out to complete your vacation itinerary.

In this digital era, identity theft is a widespread occurrence. It can lead you to a substantial debt on your name or a damaged credit score. Salvaging from these financial tussles could take years to resolve. Thus, with an identity theft insurance from Bajaj Finance under their Pocket Insurance category can safeguard you from any financial and legal expenses.

Now let’s take a look at the 4 tips to avoid identity theft while you’re on vacation –

1 Contact your credit card issuer before leaving for vacation

You must contact your credit card company before you head out of town or country. This will alert the issuer that you’ll incur charges elsewhere and prevent you from facing unexpected declines. Moreover, make sure that if you happen to lose your credit card, you get a replacement card expedited to your present location and receive an identity theft insurance coverage for it.

Furthermore, if your wallet gets stolen, you must contact your card issuer immediately to block your account and flag any fraudulent purchases made from your cards. You can avoid all the hassles with the help of a wallet care Pocket Insurance policy offered by Bajaj Finserv. It offers 24×7 credit/debit card blocking services, financial coverage and support in case of misplaced documents such as the PAN Card, Aadhaar card, etc.

2 Be careful of the ATMs you use

Whenever you obtain cash from an ATM, make sure it has the best security features. To ensure that, try to use those ATMs which are housed inside a bank lobby. Off-site fake ATMs are the most obvious targets for fraudsters to skim off your cash and other information. You must choose the best of identity theft protection plan to financially cover yourself against such situations while you embark on a vacation.

3 Have a back-up plan for stolen bag

It’s a smart idea to not carry any valuables like jewellery while you’re on a trip. Untoward incidents cannot be guaranteed against and cause both financial and physical harm. Thus, even if you do take valuables on your journey, lock them up in your hotel room. Additionally, you can opt for a purse care Pocket Insurance scheme. This one­-of-a-kind insurance policy financially covers any damage or theft of valuables of up to Rs. 2 Lakh along with identity theft cover in case of fraud.

4 Avoid public networks

Try to avoid using public wi-fi for a boarding pass or purchasing tickets as these networks are not encrypted. Thus, to prevent any manipulations from hackers, do not save any passwords and sensitive information while carrying out a transaction. Moreover, try to use incognito mode and VPN on an unidentified network. It is also recommended to use SIM cards with international network coverage if you’re globetrotting. It’s much safer, and you also get insurance coverage over it.

Despite all the precautionary measures, try not to post details of your travel plans on social media. This could expose your house to potential thefts while you’re gone on a vacation. Nevertheless, with an identity theft insurance coverage, you can enjoy your trip completely with all unforeseen circumstances comprehensively covered.