Q&A
Q I had purchased a bike long ago and one of my cheques bounced. The same evening I paid the amount to the bank. After clearing all the EMIs. I used to get a call asking me to pay Rs 300 as fine and get my NOC.
I ignored those calls due to my schedule. The matter entered Cibil, where my score is now 691. When I went to purchase a TV, my loan was rejected. I want to know how to overcome this.
Chandrakant
Vizag
First get a copy of your credit report by logging onto www.cibil.com, so that you get to know what is the exact cause for your low score. A score of 691 is not that bad and if the only issue is of this Rs 300 default, then you might just pay it off along with any interest or penalty on that amount and get an NOC as well for your two-wheeler loan.
Q I am 33, and my annual income is Rs 7 lakh. I want to take a health policy for my father who is 63.
Dinesh
Bengaluru
Yes, your father can certainly get health insurance. You can buy Bank of Baroda Health Insurance policy of Rs 5 lakh for your father, which will cost you Rs 7,079 per annum.
The insurance cover is available till age of 80 years and premium is fixed to age of 80 years. However, this policy is available only for Bank of Baroda account holders.
So you have to open a bank account with Bank of Baroda. Please disclose all the facts while buying fresh insurance plan including health history if any.
Q I am 37 years old and my annual income is Rs 3 lakh. What should be my term insurance cover and please suggest a life insurance company with details about premiums as well.
Raju
Chennai
You should buy online term insurance since they are the cheapest. As a thumb rule, you should buy life insurance cover equal to 12 times of your annual income. The life insurance cover should be up to your retirement age because your family members are financially dependent on you up to your retirement age.
Considering your retirement age at 60 years, you should take a term policy for 23 years. Please disclose all the facts correctly while applying for fresh insurance.
Looking at your age we suggest Kotak E-Preferred or Aviva I-life. Based on your age, the policy term for 23 years and sum assured of Rs 35 lakh, Kotak e-preferred will cost you Rs 6,814 per annum and Aviva I-Life will cost you Rs 7,556 per annum.
(The writer is the CEO of Apnapaisa.com. You can send in your queries to movingmoney@ deccanmail.com)
