Choice is always good. In a globalized world, the consumer has a plethora of choices in everything, from airlines to automobiles. This is why nowadays even airlines make an announcement after the passengers land: “We know you have a choice. Thanks for flying with us!”It’s rather simple. You have a choice – if you don’t like the product or service, switch! The same goes for health insurance policies as well. In India, people have woken up to the promise of health insurance, which has led to a proliferation of health insurance providers across the board. Because of this wide variety available, the policyholder doesn’t need to stick to an insurance provider if they feel dissatisfied with the services.The Insurance Regulatory and Development Authority of India (IRDA) has a novel scheme for disgruntled policyholders to switch providers: health insurance portability. Now, what do we mean by this? Let’s elaborate.What is health insurance portability?Health insurance portability is the manner through which a health insurance policyholder can transfer his/her existing policies from the current provider to a new one. Portability offers a way for customers to opt for better service and product. That way, an insurance provider cannot take them for granted.Reasons for portingWhen and why should you port a health insurance policy to a different provider? Here are some pointers to help you decide:o Quality of ServiceIf you feel that the standards of service offered by a policyholder is not at par with what they promised while logging you in, may be it’s time to move on. Often, an insurance provider will promise the moon while getting a customer on board in the eagerness of cracking a deal, but gradually, reality strikes and the customer realizes that it was all hogwash. There’s no point continuing a bitter relationship, right?o Increased BenefitsThere might be a point when you realize the cover offered to you by your current health insurance provider is not sufficient, and after talking to them it seems clear that that’s the best they can do. Under the circumstances, it may be wise to switch to a provider that can offer the additional cover/ benefits.o ExpensiveThere is really no point in paying more for a service/ benefit that is available for a much lesser price with a competing provider. If you feel the competition offers a better product at lesser cost, it is time to make that switch.o SpecializationHealth insurance policies are offered by general insurance companies as well specialized health insurance providers. If it is felt that with the current provider, the attention is more on non-health policies, switching to a specialized health insurance company may suit your needs better.o RelocationWhen you relocate to a new city, you need to have the same services and cover as before. But your existing insurance provider may not have as better access or as many network hospitals in the city. It might then make sense to port to a provider who has those services in your city.o Claim SettlementThis is important. Some companies take ages to clear a claim. Before you land up in such a situation, it’s important to know whether your insurance provider has any such reputation. If that is the case, port out.o TransparencyOften there are hidden clauses and conditions in the contract which the policyholder is not aware of. Such hidden clauses rear their ugly head during emergencies, and you do not know where to go. Time to move to a provider with more transparency in their dealings.Now that we have a fair idea when to opt for portability, it is also important to know the benefits. What does a policyholder gain out of it? Well, here it goes:Benefits of portabilityCustomizationWhile porting to a new provider, it becomes easier to customize the features to one’s specific needs and requirements. You can add nominees, even go for additional cover or benefits.Continuity BenefitsWhen you change your health insurance company, there is no reason to lose the benefits you had accrued with your previous provider. According to IRDA, your new insurer has to give you the benefits accumulated with previous insurer.New Sum InsuredIRDA says your new insurer has to insure you at least up to the sum insured under the old policy. In most cases, the existing sum insured is added to the accrued bonus to give the new sum assured. The No Claim Bonus is also added to the new sum insured.Better service, affordable premiums, transparency Portability takes care of the inconveniences associated with your earlier health insurer, owing to which you made the switch in the first place.Yes, portability is a major advantage to those health insurance policyholders who are unhappy with their current insurance provider. But it’s also important to know the conditions and criteria for portability to occur.Conditions for portability1. The policy can be ported only at the juncture of renewal. The new insurance period will be with the new company
2. Apart from waiting period credit, all the other terms of the new policy will be at the discretion of the new insurance company
3. The process has to be initiated by the policyholder at least 45 days before renewal:o Write to your existing provider requesting a shift
o Specify the new insurer you want to shift your policy to
o Ensure that the policy is renewed without a break (there is a 30-day grace period if porting is under process)In short, if you are disappointed with your health insurance policy, portability is a good option that offers a recourse – if the above conditions are met. Now, let’s get into the most important part.How to port?Porting Process:o Application for portability should be made at least 45 days before the renewal date of the existing policy, on the portability form
o The company will then send your portability form and all the policy related documents
o The new insurer will take a decision on accepting the policy within 15 daysOther documents include all previous policies, claim experience, proof of age and others. If any other documents are required, the new insurance company may ask for it…. One more thing!These are some small pointers that go a long way in ensuring that the transition is smooth and a happy one:1. Read all the terms and conditions, product features, brochures of the new company before deciding
2. Do know that the new company can decide to hike the premium, at its discretion
3. Check the claim settlement ratio
4. Needless to say, check for good customer support and service
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The Lifestyle and Its Research
Lifestyle research stands at the boundary between a number of traditional academic disciplines, developing expertise from sociology and the social sciences in areas as distinct as business, retailing, marketing, understanding of consumers, and health and social care. The very diversity of fields and disciplines with an interest in lifestyle research creates complexity in an already dynamic and fast-changing area of research. Multifaceted approaches are used, alongside a variety of academic and business conventions, but typically, lifestyle research focuses on subgroups within the general population defined by age, occupation, religion, sexuality, medical conditions, or behaviors.In terms of business research, this market segmentation of the consumer market is a key use for lifestyle research. As the importance of the consumer in determining the success of business operations has become increasingly clear to businesses, so the importance of lifestyle-based market segmentation has increased and the importance of ongoing cultural change has been recognized. Ongoing social and cultural change, both in purchasing dynamics, in related group behavior, and in lifestyle decision making are illuminated by lifestyle research but also act as a key source of information for strategic planning within business and for the ongoing development of successful corporate strategy.The links between lifestyle research and the development of successful marketing strategies are currently being discussed within the academic literature, both from a management perspective and from a social science perspective. The development of an increasing understanding of the diverse research that contributes to this area of study is key to the ongoing development of successful and strategic business development. Typically, research in this area is grounded first in the concept of lifestyle and relates this to various aspects of an individual or group lifestyle. Key themes that may influence lifestyle include activities/behavior, values and attitudes, individuals versus groups, group interaction, coherence, recognizability, and choice.Within this definition, lifestyle research may focus either upon the implications of belonging to a certain group or upon the implications of certain lifestyles, including areas such as the role of lifestyle in the management of clinical conditions or the impact of a voluntarily adopted lifestyle on other areas of an individual’s life. In business terms, lifestyle research is used both to classify consumers in terms of patterns of behavior, purchasing, etc., and as a way of looking at lifestyle as a key factor in the generation of new products, services, etc. One important distinction lies between research that attempts to identify causal relationships between a lifestyle and the development of certain patterns of health and behavior and an alternative pattern of lifestyle research that evaluates the impact of lifestyle changes.Both have considerable implications for business, being directly linked to the development and promotion of goods and services. The lifestyles assessed may be proscriptive-and much of the research in this area lies in health-or broader changes that reflect the development of society, the economy, and the workplace. Business research generally focuses upon this latter scenario, where the intertwining of cause, effect, and incremental change provides fruitful ground for research. One useful example of this intertwining is the relationship between the availability of processed ready-meals and the lack of availability of time for cooking. Does a lack of time trigger the demand for ready-meals? Or does the availability of ready-meals facilitate broader changes in lifestyle that tend to mitigate against the “ring fencing” of time to devote to cooking?The answer to such questions is unlikely to be simple-and in this example the ongoing development of skills within the consumer group would play a contributing role-but this example illustrates the complexity of cause, effect, and contributing factors within lifestyle research. Lifestyle retailing is an additional important area of study, where the promotion of a “lifestyle package” linked to a brand, a group of products, or a service forms part of the marketing strategy for many companies. The creation of aspirational brands within a consumer economy-be they products or services-is a key driver for many businesses. Typically, however, this builds upon initial market-segmentation work, and successful lifestyle retailing strategies tend to indicate a very well-researched and clearly identified market-segmentation strategy.Building upon this, so-called subcultures of consumption have been a focus for some additional study focusing around ideas and theoretical frameworks from general consumption literature and applying these in a variety of servicescapes. A more recent approach to segmentation, for example, has included Web-based-related lifestyle research, where access, enthusiasm, and propensity to use internet resources formed a key defining a part of an individual or group lifestyle and hence the basis for recent research.
Business Finance and Business Loans Versus Residential Loans
More residential real estate investors are exploring commercial real estate and business loan alternatives as a result of the increasingly chaotic investment environment for residential financing. In these circumstances prospective commercial property owners, business investors and business owners should educate themselves about choices for the business opportunity financing and commercial loan climate that currently prevails throughout the United States.Environmental requirements for business finance will be a complex issue for numerous business investments. Environmental issues involved in a business loan will primarily depend upon the commercial lender as well as the type of business. More extensive requirements can impact both the cost and timing for a commercial mortgage loan.Tax returns and financial statements for a business loan are likely to be a concern for all commercial borrowers. Whereas residential mortgage financing is likely to involve only personal tax returns, most business financing will include a review of business tax returns as well. Business financial statements and personal financial statements will be required for certain kinds of business opportunity financing and commercial real estate financing.Secondary financing will often be a means of acquiring desired commercial loans. The use of seller financing or secondary financing is a prudent business financing strategy to reduce capital requirements for the borrower. Secondary financing will not be accepted by all commercial lenders.An unexpected requirement for many commercial loans involves sourcing and seasoning of funds. When purchasing a business, some lenders will require that borrowers document where the down payment is coming from (sourcing) and how long the funds have been in that location (seasoning). If a borrower cannot adequately provide this documentation, the choice of commercial lenders will be more restricted.Collateral and cross-collateralization for business loans will be an insurmountable obstacle for some commercial borrowers. Collateral requirements for business financing will depend on many factors such as down payment, type of business, credit scores and the type of financing needed. Cross-collateralization refers to lender requirements involving personal collateral such as a home used as collateral for a business loan.Any requirement for a business plan when obtaining commercial mortgages is likely to be expensive and time-consuming. A business plan is not always required for a business loan, but when one is required this will add significantly to the cost and length of the loan process.An increasing problem for commercial borrowers seeking refinancing is an unreasonable limitation for getting cash out of the new loan. Commercial lenders differ significantly regarding restrictions imposed on the amount of cash out to the borrower when refinancing. Some lenders will not permit any cash out whatsoever while others will limit cash received by the borrower to a particular amount. The preferred approach is to use a lender that will allow cash to be paid out up to an agreed loan-to-value (frequently 75%).It is important to to thoroughly analyze business financing lockout penalties. A lockout penalty is much more severe than a prepayment penalty in that such penalties can effectively prevent a commercial borrower from selling or refinancing during a prescribed period (often two to five years).In addition to the issues noted above, numerous other key business finance and real estate mortgage issues will also be important to evaluate. Commercial mortgage requirements are very different from residential financing requirements in the United States. We have prepared several other business finance overviews addressing additional factors that will be significant for most commercial borrowers. Separate report topics include SBA loan refinancing, business opportunity financing, stated income business loans and commercial appraisals.