Complete FAQs on Insurance, Investments, Loans, and Financial Tools – SSS Financial India (2025 Guide)
Introduction
When it comes to financial planning in India, many individuals have common questions regarding insurance, investments, loans, and financial tools. At SSS Financial, we understand the importance of clear, reliable information. That’s why we’ve compiled a comprehensive FAQ guide to address the most common queries across all major financial categories. Whether you are securing your family’s future with insurance, planning your investments, or applying for a loan, our FAQ section is designed to simplify your journey.
Section 1: Insurance FAQs
Health Insurance
- What does Health Insurance cover?
It typically covers hospitalization costs, pre- and post-hospitalization expenses, surgeries, and sometimes critical illnesses. - Are pre-existing diseases covered?
Yes, but usually after a waiting period (commonly 2–4 years depending on the insurer). - What is cashless hospitalization?
Treatment without direct payment; the insurer settles the bill with the hospital.
Personal Accident Insurance
- What is covered?
Accidental death, permanent disability, and partial disabilities. - Are there tax benefits?
Yes, premiums qualify for tax deductions under Section 80D.
Life Insurance
- What is Life Insurance?
A contract that pays a sum to beneficiaries upon the policyholder’s death or after a set period. - Difference between Term and Traditional Plans?
Term Plans provide pure risk coverage; Traditional Plans offer savings + life cover.
Term Insurance
- What is Term Insurance?
High sum assured for low premiums, covering only death risk. - Can riders be added?
Yes, riders like critical illness or accidental death can enhance coverage.
Traditional Plans
- Returns guaranteed?
Traditional plans generally provide fixed, lower-risk returns.
Motor Insurance
- Mandatory in India?
Yes, third-party Motor Insurance is legally required. - Third-party vs Comprehensive Insurance?
Third-party covers damages to others; Comprehensive covers both third-party and your own vehicle.
Travel Insurance
- Coverage?
Medical emergencies, trip cancellations, lost baggage, and passport loss. - Is it mandatory for international trips?
Some countries require it for visa approval (e.g., Schengen).
Home Insurance
- What does it cover?
Damages due to fire, theft, natural calamities, and more. - Is it linked to Home Loans?
Many banks recommend it during loan approval.
Section 2: Financial Tools FAQs
SIP Calculator
- Why use it?
It helps estimate future investment value based on monthly SIP amount, tenure, and expected returns.
EMI Calculator
- How is EMI calculated?
Based on principal, interest rate, and tenure.
Retirement Planner
- Importance?
Ensures you accumulate enough funds to maintain your lifestyle post-retirement.
Tax Planner
- Top tax-saving options?
ELSS funds, PPF, NPS, and insurance policies.
Section 3: Investment FAQs
Mutual Funds
- Difference between SIP, SWP, and STP?
SIP = invest regularly, SWP = withdraw regularly, STP = systematic transfer from one fund to another. - Choosing AMC & Scheme?
Based on past performance, risk appetite, and financial goals.
Government Schemes
- Examples?
PPF, Sukanya Samriddhi Yojana, Senior Citizens Savings Scheme, etc. - Safety?
Backed by the Government of India; considered very safe.
Investment Risk Factors
- Types of risks?
Market risk, liquidity risk, credit risk, inflation risk.
Section 4: Loan FAQs
Home Loan
- Fixed vs Floating rates?
Fixed rates stay constant; floating rates vary with market changes.
Personal Loan
- Eligibility factors?
Credit score, income, job stability.
Education Loan
- Coverage?
Tuition fees, accommodation, travel expenses, and other education-related costs.
Business Loan
- Common types?
Term loans, working capital loans, equipment financing.
Loan Against Property
- What is LAP?
Borrowing against the market value of residential/commercial property.
Vehicle Loan
- Hypothecation?
Lender holds the ownership rights until the loan is fully paid.
Gold Loan
- What happens if I default?
The lender can auction your pledged gold to recover the loan amount.
Section 5: Information FAQs
Glossary of Financial Terms
- NAV: Net Asset Value of a mutual fund.
- Sum Assured: Fixed amount guaranteed in insurance.
Guide to Policy Documents
- What is a free-look period?
A 15-day window to review and cancel an insurance policy.
Investment Risk Factors (Expanded)
- Systemic vs Unsystematic Risks
Systemic risks affect the whole market; unsystematic risks are company-specific.
