How to get the best health insurance without a medical test?

Buying a health insurance plan has become the need of the hour as medical costs are increasing every day. If a medical contingency strikes, it threatens to wipe out your financial savings and leave you penniless. In such a situation, having a health insurance plan comes as a blessing as the plan covers the medical costs and spares you the financial horror. Health insurance policies provide coverage against medical expenses and safeguard your finances. You should, therefore, invest in a comprehensive health plan to cover the financial implication of a medical illness.

When you buy a health insurance plan, you might be required to undergo a pre-entrance health check-up based on which the policy would be issued. The requirement of this pre-entrance check-up depends on your age and the coverage that you choose. Many health plans require you to take such medical tests while many don’t. Among the different plans where medical tests are not necessary, one of the best available policies is the HDFC Ergo Health Suraksha Silver Smart health insurance policy. The policy does not require you to undergo any medical test before buying the policy.

Besides the no medical test benefit, the reasons why HDFC Ergo Health Suraksha Silver Smart health insurance policy ranks among the best health insurance plans are as follows –

• An inclusive scope of coverage 

HDFC Ergo Health Suraksha Silver Smart health insurance policy offers you three sum insured levels which are INR 3 lakhs, INR 4 lakhs, and INR 5 lakhs. This is, therefore, an affordable health insurance policy which also provides an inclusive scope of coverage through its coverage benefits, the most notable of which include the following –

• Coverage against mental illnesses
• Cashless home hospitalization benefit for specific illnesses
• No room rent sub-limits
• Recovery benefit of INR 5000 if you are hospitalized continuously for 10 days or more

Moreover, there are a host of optional coverage benefits that you can choose from to customize your coverage at a small additional premium.

• Coverage for all family members

Under HDFC Ergo Health Suraksha Silver Smart health insurance policy you can cover your entire family under a family floater policy. There is no maximum entry age allowing even older dependents to enjoy coverage under your policy without restrictions.

• Emphasis on healthy living 

This health insurance plan gives you the benefit of free annual health check-ups so that you can track and monitor your health every year. Moreover, there is my: Health Active benefit under the policy which rewards you for healthy living. If you maintain a healthy lifestyle by walking and exercising, you can accumulate healthy weeks. The accumulated healthy weeks in a policy year can then be exchanged for premium discounts when you renew the policy. Moreover, the policy provides wellness services and a health coach so that you can live a healthy lifestyle, keep illnesses at bay, and also avail premium discounts on renewals.

• Sum insured rebound

Also called sum insured restoration, the plan allows a free refill of your sum insured if your existing coverage gets used up on previous claims. This rebound facility ensures that your coverage does not run out due to frequent claims.

Besides these salient features, the plan has low premiums which are further made affordable through different types of discounts. Besides availing the healthy living discount, you can claim a family discount of 10% if two or more individuals are covered under the policy as well as a loyalty discount of 2.5% if you have invested in other policies issued by HDFC Ergo.

So, if you are looking to buy a health insurance policy without undergoing any medical tests, you can opt for HDFC Ergo Health Suraksha Silver Smart health insurance policy. The policy allows a good scope of coverage which can be customized through optional add-ons and riders. Lastly, the premiums are also affordable ensuring that the coverage does not prove heavy on your pockets.

How mutual funds performed during the COVID-19 period, how to invest during a pandemic?

The novel coronavirus has taken the entire world by a storm. A turbulent one though. Even mutual funds have come under its attack. Read on to know how funds are faring right now and how to invest during this pandemic.

Mutual Funds in the times of coronavirus

Economies across the globe have come almost come to a standstill as a result of the coronavirus pandemic. Stock markets have crashed and mutual fund values have plunged to rock-bottom. As per data published by Morningstar India, the equity scheme categories have given 25%- 26% negative returns in the period starting mid-Feb to mid-March. Here is how the individual sub-categories have performed:

Category of Equity Funds	Negative Returns
Large-cap Funds	26.58 percent
Large and Mid-Cap Fund	26.63 percent
ELSS	26.47 percent
Multi-Cap Funds	26.45 percent
Small-Cap Funds	26.32 percent
Mid-Cap Funds	24.84 percent

One important point to note is that all funds have fallen lesser than their respective benchmark during this bearish phase. During this period, Sensex fell down by about 29% (from 41,000 to 29,000).

Investors who used to rely on the offline mode for mutual fund investments have faced a double-whammy. As a safety measure, AMFI (Association of Mutual Funds in India) has closed down the offices of AMCs as well as Register and Transfer Agents. As a result, investors depending on physical transactions will not be able to submit the forms for any transactions (new purchase, switch in or out, withdrawals, etc). Only online transactions are permitted during this period.

So, should you not invest in Mutual Funds?

Tough times do not last, but tough people do. The same holds true for quality mutual funds as well. The markets have witnessed such volatility and fall in the past as well. Such as the Harshad Mehta Scam in 1992 (which caused the stock markets to fall more than 55%), the tech bubble burst in 2000 (more than 60% tumble in the markets), or the 2008 global financial crisis (62% loss in the markets). However, one thing that is common in all these scenarios is that the markets have always made a recovery in due time. 

So, the answer to the question is that go with mutual funds for COVID-19 crisis. All you need to ensure is that you select funds amongst the top performers during this crisis, hang in there and wait for the chaos to settle down.

Points to remember: 

• Continue with the Systematic Investment Plan (SIP) contributions.
• If your portfolio has lesser equity exposure (in comparison to your risk appetite), it is a good time to increase the level of equity investment as the valuations have become attractive.
• Remember that equities have always been a long-term game. More so, in the current pandemic. Have an investment horizon of at least 8-10 years.
• For debt funds, increased focus on funds with short duration and good liquidity can strengthen your defense.
• Opt for funds which have a solid track record, robust investment strategies and strong management team. You can select from consistent or top performers over the past five years. Such funds are likely to bounce back faster and stronger once this pandemic is over.

Top Performers during the crisis

There are some mutual funds for the COVID-19 crisis as well. These funds have contained turbulent market periods relatively well and emerged as the top performers during the crisis. Most of these funds also find a place in the list of top performers over the last 5 years.

• Axis Bluechip Fund
• SBI Focused Equity Fund
• Motilal Oswal Focused 25 Fund
• Mirae Asset Large Cap Fund
• Tata Index Sensex Fund
• HDFC Index Sensex Fund
• ICICI Prudential Bluechip Fund
• Kotak Bluechip Fund
• Quant Focussed Fund

Final Words

These are unprecedented times. There will be occasions when your patience will get tested and you will want to give up. But you need to remember that mutual funds for the COVID-19 crisis are also a thing. Just like every dark cloud has a silver lining, mutual funds (especially the top performers over the last 5 years) will start rising again. We will come out of these volatile times stronger and charged up! 

Does Your Existing Health Insurance Cover You for COVID-19?

Novel Coronavirus, or COVID-19 as it is called in short, is an unprecedented global biological threat that has gripped the whole world. Soon after originating in China, the infection spread worldwide and today, all the leading nations are grappling with the spread of the infection. Given the increasing incidence of the disease, the World Health Organisation (WHO) declared it a pandemic. Even in India, Coronavirus is slowly wreaking havoc as the numbers, though restricted, are rising with each passing day. More and more cases are coming to light every day and amidst this health panic, many of you must be wondering whether your health insurance policy would cover the infection or not. What do you think? Would your existing health plan cover the medical bills if you or your family member is struck with the infection?

One of the many medical insurance benefits includes coverage for hospitalization costs if you are admitted to a hospital for an illness or injury. So, by their nature, health plans would extend coverage if you are hospitalized for a suspected or confirmed case of Coronavirus infection. Even the Insurance Regulatory and Development Authority of India (IRDAI) has issued guidelines for insurance companies to cover claims arising out of COVID-19 infection. Thus, insurance companies are providing coverage against COVID-19 to their policyholders who are covered under an existing health insurance plan. However, there are some terms and conditions associated with such coverage. You need to know these terms and conditions to know whether your COVID-19 claims would be honored by your insurance company or not. So, here are some pitfalls to look out for –

• OPD expenses might not get covered

Coverage for OPD expenses is available only is selected health insurance plans. Most plans cover hospitalization costs which incur if you are hospitalized for 24 hours or more. Thus, if you incur medical expenses on an outpatient basis, wherein 24-hour hospitalization has not occurred, your claim might not be paid by the insurance company even though your health plan covers COVID-19. Thus, you should check whether your policy has OPD coverage benefit or not avail coverage against the expenses incurred on an outpatient basis.

• The pandemic situation might be an exclusion

Some health insurance plans specifically exclude illnesses which occur due to a pandemic or epidemic like situation. Since WHO has already declared COVID-19 as a pandemic, you might not get coverage for your hospitalization if your plan has a pandemic exclusion. 

• Suffering the infection within the waiting period of the policy

When you buy a new health insurance plan, there is a waiting period of 30 days to 60 days within which illnesses are not covered. So, if you have recently bought a new health insurance plan and you suffer from the infection during the initial waiting period of 30-60 days, you might not get coverage for hospitalization.

• If it is a pre-existing condition

This condition is also applicable if you are buying a new health insurance plan. Pre-existing diseases are not covered within the first 2-4 years which is called the pre-existing waiting period. So, if you are suffering from COVID-19 symptoms and you invest in a health plan for coverage, the infection would be treated as a pre-existing condition and you might not get covered for the medical costs that you incur.

If you have an existing health insurance policy, chances are that your policy would cover the medical costs you face due to COVID-19. However, if you buy health insurance online and then suffer from the infection within the first few days, the coverage might not be available. So, it is always better to find out from your insurance company whether you can avail coverage against COVID-19 and the associated terms and conditions of the coverage.  

Choose dynamic bond funds that have good track record and performance

We all know that markets are highly dynamic in nature. So, why shouldn’t our investment options also be the same? Luckily we have dynamic bond funds to cater to this need.

What are dynamic bond funds? 

Dynamic Bond Funds belong to the category of debt funds. As per SEBI guidelines, these open-ended debt funds have the flexibility to invest across varying durations. They can invest in short-term bond funds in one month and long-term in another, basis the direction being followed by market interest rates.

Dynamic bond fund investments are taxed as per other debt funds. If the holding period is three years or more, the returns are taxed as Long-Term Capital Gains (20% tax rate with indexation benefit). Short-term capital gains (if the investment is redeemed before three years) are added to overall income and taxed basis the applicable income tax slabs.

How do these debt funds work?

Dynamic Bond funds seek to generate higher returns by switching between varied durations basis the market conditions. Bond prices and interest rates are inversely related to each other. When the interest rates go down, bond funds with longer durations get rewarded handsomely. However, in case the interest rates climb up, these funds stand to lose out a lot. Fund managers in charge of dynamic bond funds can reduce the duration (when interest rates are going up) to soften out the blow from dwindling bond prices. Similarly, they can increase the duration of the underlying investment so as to capitalize on the rising bond prices.

Hence, if you invest in dynamic bond funds, your debt funds risk is managed and the potential for earning higher returns is also enhanced.

Factors impacting the success of dynamic bond funds

1. Performance

What do you do before making any online purchase? Read the reviews to see how the product has fared for others. Similarly, before you invest in dynamic bond funds, you should analyze the performance (in absolute terms as well as in relation to benchmark and peers) for a period of at least 3 to 5 years. Going by just the last year’s performance scorecard is likely to result in wrong choices.

2. Fund House

If you wish to invest in dynamic bond funds, then you need to choose a fund house with a healthy track record. Factors such as technical research, market knowledge and understanding and agility to respond to changing market conditions play a crucial role in maximizing the returns as well as managing the debt funds risk.

3. Fund Manager

Dynamic Bond Funds are reactionary in nature. The success of these funds relies heavily on the fund manager’s ability to catch the troughs and peaks of the interest rate cycle and change the duration accordingly.

Risk in dynamic bond funds?

Debt funds generally have lower debt funds risk quotient and are considered suitable for conservative investors. However, those who are looking at investing in dynamic bond funds need to have a healthy risk appetite. This is because sometimes the trend (for interest rates) is not clearly visible. There are times when the fluctuations (up as well as down) happen very swiftly (too fast for even the best fund managers) and these debt funds get hit severely.

Best of the lot

If you want to invest in dynamic bond funds, you should consider these top-performing schemes:

1. ICICI Prudential All Seasons Bond Fund
2. Edelweiss Dynamic Bond Fund
3. Mirae Asset Dynamic Bond Fund
4. Kotak Dynamic Bond Fund
5. Aditya Birla Sun Life Active Debt Multi Manager FoF Scheme
6. Quantum Dynamic Bond Fund
7. Tata Dynamic Bond Fund
8. Quant Dynamic Bond Fund
9. IDFC Dynamic Bond Fund
10. L&T Flexi Bond Fund

Final Words

Dynamic Bond funds need to be given a minimum of three years (five years for optimum results) to get the most out of your investment. A value research study revealed that at the 3-year time juncture, the outperformance of dynamic bond funds (over short-term funds) was around 60%-70%. The figure jumped to 80%-90% at the five-year time frame.

Invest in dynamic bond funds if you have the appetite for higher debt funds risk and hunger for higher returns!