Term Insurance
The cheapest and the most basic, this is a no-frills life cover that should be one of your first financial instruments. Being a pure insurance cover, it does not return your money if you survive the policy term.
If you don't, the sum assured is paid to your dependants. So, buy only if you have financial dependants, or you expect to have dependants in the future. If you expect to have dependants till a later stage of your life, look for a plan that has a high maturity age.
Most term plans provide cover till 60-65 years of age. Few even offer plans till age 75.
As there is no surrender or maturity value in these, you should settle for the one with the lowest premium and the longest term.
Since they are simple, term plans can be easily compared on the basis of price and the cover period. Search for a quote from at least four to five companies before buying one.
Recently, a few variants have been introduced in term insurance.
ING Vysya Life Insurance has launched limited premium paying term (PPT) plans. In these, you have to pay a higher premium in the initial years to cover the premiums for the entire term, after which you stop paying altogether. If you think, you can afford higher premiums only for a few years, this plan will make sense for you.
However, it has its drawbacks. In the event of death in the initial years, you would end up paying much more than what you would have paid till that time under a normal plan.
Also, if at any point you want to discontinue the plan in the absence of dependants, you would have paid for the entire term in any case. Switching to a lower cost plan would also be hindered.
DLF Pramerica's Family Income Plan has come up with another innovation. Unlike a conventional protection plan, where the dependants receive a lumpsum, the plan allows you to choose the monthly financial support system.
Under this, your dependants would be paid on a monthly basis till the end of the plan term.
Important
Keep the highest possible term
Keep the maturity age as long as possible
Talk to 4-5 insurers or visit their websites to get premium rates
Choose the plan that has the lowest premium at your parameters
Undergo medical tests, if required
Keep the nominees informed
Pay premiums every year
Friday, January 2, 2009
How to make an insurance claim
How to make an insurance claim
It is important for both the insured and the nominee to know the process of insurance claim settlement. A false step can lead to denial of the benefit for which life cover is bought.
What is a claim?
A life insurance policy is a contract between the insurance company and the insured in which the insurer agrees to pay a pre-defined sum upon the death of the insured. This sum is claimed by the nominee of the policy -- the person designated to make a claim in the event of the death of the insured.
Making a claim
In order to make a claim, the nominee needs to submit a claim form that is issued by the insurer. The nominee is also required to submit documents like the original policy papers, the death certificate of the insured and his death summary in case he died due to an illness. If death was accidental, these documents need to be supported by an FIR and a post-mortem report. In addition to these documents, the claimant also needs to provide an identity proof to establish that he is the nominee of the policy. The identity proof can be anything bearing the nominee's photograph and signature. That makes the PAN card, driving licence and passport eligible as identity proofs. The process of claim settlement begins once the insurer verifies these documents.
How long does take?
It usually takes a week to 10 days to settle a claim after all the relevant documents are verified by the insurer.
The Insurance Regulatory and Development Authority (Irda), the insurance regulator, has stipulated that claims should be settled within 30 days of receipt of all the relevant documents. The insurer can ask for clarifications or supporting evidence if he is dissatisfied with the documents. If this happens, a deadline of six months from the date of intimation of the claim is laid down for its settlement. If the insurer fails to meet the deadline, he has to pay an interest on the sum assured. The nominee can approach the insurance ombudsman if the insurer fails to pay the claim on time.
It is important for both the insured and the nominee to know the process of insurance claim settlement. A false step can lead to denial of the benefit for which life cover is bought.
What is a claim?
A life insurance policy is a contract between the insurance company and the insured in which the insurer agrees to pay a pre-defined sum upon the death of the insured. This sum is claimed by the nominee of the policy -- the person designated to make a claim in the event of the death of the insured.
Making a claim
In order to make a claim, the nominee needs to submit a claim form that is issued by the insurer. The nominee is also required to submit documents like the original policy papers, the death certificate of the insured and his death summary in case he died due to an illness. If death was accidental, these documents need to be supported by an FIR and a post-mortem report. In addition to these documents, the claimant also needs to provide an identity proof to establish that he is the nominee of the policy. The identity proof can be anything bearing the nominee's photograph and signature. That makes the PAN card, driving licence and passport eligible as identity proofs. The process of claim settlement begins once the insurer verifies these documents.
How long does take?
It usually takes a week to 10 days to settle a claim after all the relevant documents are verified by the insurer.
The Insurance Regulatory and Development Authority (Irda), the insurance regulator, has stipulated that claims should be settled within 30 days of receipt of all the relevant documents. The insurer can ask for clarifications or supporting evidence if he is dissatisfied with the documents. If this happens, a deadline of six months from the date of intimation of the claim is laid down for its settlement. If the insurer fails to meet the deadline, he has to pay an interest on the sum assured. The nominee can approach the insurance ombudsman if the insurer fails to pay the claim on time.
Sunday, December 14, 2008
करीब 93 हजार भर्तियां करेगी रिलायंस लाइफ
करीब 93 हजार भर्तियां करेगी रिलायंस लाइफ
दिल्ली, भाषा: दुनिया के अधिकतर देशों में निजी कंपनियां रोजाना हजारों कर्मचारियों को बेरोजगार कर रही हैं। इसके उलट भारत में निजी क्षेत्र की बीमा कंपनियां मंदी के इस मुश्किल हालात में भी धड़ाधड़ भर्तियां किए जा रही हैं। बीमा क्षेत्र में मौजूद मौके भुनाने के लिए देश के दूसरे नंबर के रईस अनिल अंबानी की कंपनी रिलायंस लाइफ इंश्योरेंस अगले चार महीनों में 2.5 हजार मैनेजर और 90 हजार सलाहकार नियुक्त करेगी। इससे पहले निजी क्षेत्र की प्रमुख बीमा कंपनी मेटलाइफ 32 हजार और मैक्स न्यूयार्क 44 हजार लोगों की भर्ती का ऐलान कर चुकी हैं। इनमें सलाहकार और मैनेजर दोनों शामिल हैं। अब तक रिलायंस समेत देश की सभी निजी बीमा कंपनियां करीब एक लाख 70 हजार लोगों को रोजगार देने की घोषणा कर चुकी हैं। रिलायंस लाइफ के सीईओ पी. नंदगोपाल ने बताया कि कंपनी ने भर्ती की प्रक्रिया शुरू कर दी है। नई नियुक्ति के बाद कंपनी के सलाहकारों की संख्या तीन लाख को पार कर जाएगी,हालांकि मैनेजमेंट से जुड़े कर्मचारियों की कुल संख्या 28 हजार होगी। चालू वित्त वर्ष 2008-09 के पहले आठ महीनों में कंपनी 40 हजार सलाहकार और 8 हजार मैनेजमेंट कर्मी भर्ती कर चुकी है। कंपनी सलाहकारों को पे-रोल पर नहीं नियुक्त करती है, बल्कि वे कमीशन पर काम करते हैं।
दिल्ली, भाषा: दुनिया के अधिकतर देशों में निजी कंपनियां रोजाना हजारों कर्मचारियों को बेरोजगार कर रही हैं। इसके उलट भारत में निजी क्षेत्र की बीमा कंपनियां मंदी के इस मुश्किल हालात में भी धड़ाधड़ भर्तियां किए जा रही हैं। बीमा क्षेत्र में मौजूद मौके भुनाने के लिए देश के दूसरे नंबर के रईस अनिल अंबानी की कंपनी रिलायंस लाइफ इंश्योरेंस अगले चार महीनों में 2.5 हजार मैनेजर और 90 हजार सलाहकार नियुक्त करेगी। इससे पहले निजी क्षेत्र की प्रमुख बीमा कंपनी मेटलाइफ 32 हजार और मैक्स न्यूयार्क 44 हजार लोगों की भर्ती का ऐलान कर चुकी हैं। इनमें सलाहकार और मैनेजर दोनों शामिल हैं। अब तक रिलायंस समेत देश की सभी निजी बीमा कंपनियां करीब एक लाख 70 हजार लोगों को रोजगार देने की घोषणा कर चुकी हैं। रिलायंस लाइफ के सीईओ पी. नंदगोपाल ने बताया कि कंपनी ने भर्ती की प्रक्रिया शुरू कर दी है। नई नियुक्ति के बाद कंपनी के सलाहकारों की संख्या तीन लाख को पार कर जाएगी,हालांकि मैनेजमेंट से जुड़े कर्मचारियों की कुल संख्या 28 हजार होगी। चालू वित्त वर्ष 2008-09 के पहले आठ महीनों में कंपनी 40 हजार सलाहकार और 8 हजार मैनेजमेंट कर्मी भर्ती कर चुकी है। कंपनी सलाहकारों को पे-रोल पर नहीं नियुक्त करती है, बल्कि वे कमीशन पर काम करते हैं।
Saturday, September 20, 2008
ING Term Life Plus
ING Term Life Plus
"Ensure dreams are protected, and get your premiums back" Your responsibility towards your family is something you've always held close to your heart. All your efforts are devoted to their happiness, their security. Not just for the present, but even for the future. Needless to mention, your biggest priority has always been to ensure that your loved ones are secure, even in your absence. ING Vysya Life now offers you a great way to secure your family's future. That's not all; you can also enjoy a whole range of very attractive benefits offered to you in a very convenient and economical mannerThe ING Term Life Plus is a Term Insurance Product with return of premiums. In addition to the sum assured which is payable on death, under this Plan the Company also returns a proportion of the premiums that you have paid after completion of half the policy term and another proportion on the policy maturity date. You also have the flexibility to surrender the policy .
Key Benefits
Protection Cover: Upwards of 5 lacs Sum Assured
Flexibility to choose a policy term between 10 and 30 years
Mid-term benefit on surviving to 50% of the term
On maturity Total premium less any extra premium paid and mid-term benefit, shall be payable
In the event of death of the LA during the policy term, the sum assured chosen under the policy shall be payable
Optional riders for comprehensive accidental coverage in regular payment option
Tax benefit under Sec. 80c and Sec. 10(10D) of the Income Tax Act 1961
Eligibility
Minimum Entry Age: 18 years
Maximum Entry Age: 65 years
Maximum maturity age: 75 years
Sum Assured
The minimum sum assured you can opt under this plan is Rs.5 Lakhs
Premium Amount
This Plan allows you to choose the amount of premiums you wish to pay
Policy Term
You have the flexibility to choose a policy term between 10 and 30 years
Premium Payment Terms
Regular premium - till policy term completion
Limited premium - 3 or 5 years
Single premium - is a one time payment
Premium Payment Options
Annual, half-yearly, quarterly or monthly
or FOR MORE DETAIL YOU CAN CONTACT ME.
"Ensure dreams are protected, and get your premiums back" Your responsibility towards your family is something you've always held close to your heart. All your efforts are devoted to their happiness, their security. Not just for the present, but even for the future. Needless to mention, your biggest priority has always been to ensure that your loved ones are secure, even in your absence. ING Vysya Life now offers you a great way to secure your family's future. That's not all; you can also enjoy a whole range of very attractive benefits offered to you in a very convenient and economical mannerThe ING Term Life Plus is a Term Insurance Product with return of premiums. In addition to the sum assured which is payable on death, under this Plan the Company also returns a proportion of the premiums that you have paid after completion of half the policy term and another proportion on the policy maturity date. You also have the flexibility to surrender the policy .
Key Benefits
Protection Cover: Upwards of 5 lacs Sum Assured
Flexibility to choose a policy term between 10 and 30 years
Mid-term benefit on surviving to 50% of the term
On maturity Total premium less any extra premium paid and mid-term benefit, shall be payable
In the event of death of the LA during the policy term, the sum assured chosen under the policy shall be payable
Optional riders for comprehensive accidental coverage in regular payment option
Tax benefit under Sec. 80c and Sec. 10(10D) of the Income Tax Act 1961
Eligibility
Minimum Entry Age: 18 years
Maximum Entry Age: 65 years
Maximum maturity age: 75 years
Sum Assured
The minimum sum assured you can opt under this plan is Rs.5 Lakhs
Premium Amount
This Plan allows you to choose the amount of premiums you wish to pay
Policy Term
You have the flexibility to choose a policy term between 10 and 30 years
Premium Payment Terms
Regular premium - till policy term completion
Limited premium - 3 or 5 years
Single premium - is a one time payment
Premium Payment Options
Annual, half-yearly, quarterly or monthly
or FOR MORE DETAIL YOU CAN CONTACT ME.
Saturday, July 19, 2008
5 rules on how much insurance you need
If you are an earning member of your family, and there are members of your family who are financially dependant on you, you need life insurance. But how much life insurance do you need?
There are many factors that are relevant in determining the amount of life cover you should buy.
Need for minimum protection
It is essential that a particular level of income should be maintained for the family even when its breadwinner is not around. Suppose a family's present needs are Rs 25,000 p.m. The extent of life insurance for its earning members should be such that interest income from the sum assured can meet the family's monthly expenses of Rs 25,000.
If one also wants to provide for the future fall in the purchasing power of rupee due to inflation, one must necessarily take policies for higher amounts. No widow, they say, has ever complained that her husband bought too much insurance.
Current income level
Payment of insurance premium results in an outflow of disposable income. You may, therefore, not like to buy too much insurance. One might have to limit the quantum of insurance keeping in mind the cash flow problems that will be created as a result of the obligation of regular payment of insurance premia.
Tax benefits
You should also take into account the tax benefit under Section 80C.
Accumulating for specific needs
If you expect to spend a particular sum of money for the education and / or wedding of your children, you may like to buy an insurance policy for a specific sum to meet such a lump sum commitment.
Present age
Your present age is a critical factor in deciding the quantum of insurance that you can afford. The rates of premium go up with the advancing age of the life assured. Hence, one can buy more insurance for the same premium at a younger age than at an older age.
The final decision rests upon a careful consideration and balance of all the above factors. The need for minimum protection may be quite high, but the current need for disposable income may not immediately permit buying adequate insurance.
You then have to make a compromise and buy extra insurance as and when you can afford it.
The 5 simple rules
In the event of any misfortune, well-planned life insurance can protect your loved ones from financial difficulties. However, in most cases, people find it difficult to estimate the correct value of insurance they need.
Partly this is because life insurance needs change through different stages of life. Young people with no dependants may not have much need for life insurance.
As one's family responsibility grows, life insurance needs too increase. Thus, a periodical review based on your family circumstances is required in order to ensure that the coverage is adequate.
There are several simple methods available to broadly estimate your life insurance needs. Five simple rules are:
1. Income rule
The most basic rule of thumb is provided by the income rule which holds that individual insurance cover should be at least around eight to ten times one's gross annual income. For example, a person earning a gross annual income of Rs 1 lakh should have about Rs 8 to10 lakh in life insurance cover.
2. Income plus expenses rule
This rule suggests that an individual needs insurance equal to five times your gross annual income, plus the total of basic expenses like housing or car loans, personal debt, child's education, etc.
3. Premiums as percentage of income
By this rule, payment of insurance premium depends on disposable income. In other words, one should decide the quantum of insurance after meeting the regular outgo from salary.
From the first two rules, you can make a broad estimate of the minimum insurance you should have. The premium as percentage of income rule can help you fine-tune your cash flow by committing an appropriate percentage of your income for paying life insurance premium.
4. Capital fund rule
This rule suggests that if you need Rs 1 lakh p.a. for your family needs, and assuming you do not have any other income-generating assets, you may like to create a capital fund of Rs 12.5 lakh (Rs 1.25 million) which can yield Rs 1 lakh (Rs 100,000) annual income @ 8% p.a. You may therefore buy a life insurance policy of Rs 12.5 lakh.
5. Family needs approach
This rule holds that you purchase enough life insurance to enable your family to meet various expenses in the event of key earning person's death. Under the family needs approach, one has to divide his family's needs into two main categories: immediate needs at death (cash needs), and ongoing needs (net income needs).
There are many factors that are relevant in determining the amount of life cover you should buy.
Need for minimum protection
It is essential that a particular level of income should be maintained for the family even when its breadwinner is not around. Suppose a family's present needs are Rs 25,000 p.m. The extent of life insurance for its earning members should be such that interest income from the sum assured can meet the family's monthly expenses of Rs 25,000.
If one also wants to provide for the future fall in the purchasing power of rupee due to inflation, one must necessarily take policies for higher amounts. No widow, they say, has ever complained that her husband bought too much insurance.
Current income level
Payment of insurance premium results in an outflow of disposable income. You may, therefore, not like to buy too much insurance. One might have to limit the quantum of insurance keeping in mind the cash flow problems that will be created as a result of the obligation of regular payment of insurance premia.
Tax benefits
You should also take into account the tax benefit under Section 80C.
Accumulating for specific needs
If you expect to spend a particular sum of money for the education and / or wedding of your children, you may like to buy an insurance policy for a specific sum to meet such a lump sum commitment.
Present age
Your present age is a critical factor in deciding the quantum of insurance that you can afford. The rates of premium go up with the advancing age of the life assured. Hence, one can buy more insurance for the same premium at a younger age than at an older age.
The final decision rests upon a careful consideration and balance of all the above factors. The need for minimum protection may be quite high, but the current need for disposable income may not immediately permit buying adequate insurance.
You then have to make a compromise and buy extra insurance as and when you can afford it.
The 5 simple rules
In the event of any misfortune, well-planned life insurance can protect your loved ones from financial difficulties. However, in most cases, people find it difficult to estimate the correct value of insurance they need.
Partly this is because life insurance needs change through different stages of life. Young people with no dependants may not have much need for life insurance.
As one's family responsibility grows, life insurance needs too increase. Thus, a periodical review based on your family circumstances is required in order to ensure that the coverage is adequate.
There are several simple methods available to broadly estimate your life insurance needs. Five simple rules are:
1. Income rule
The most basic rule of thumb is provided by the income rule which holds that individual insurance cover should be at least around eight to ten times one's gross annual income. For example, a person earning a gross annual income of Rs 1 lakh should have about Rs 8 to10 lakh in life insurance cover.
2. Income plus expenses rule
This rule suggests that an individual needs insurance equal to five times your gross annual income, plus the total of basic expenses like housing or car loans, personal debt, child's education, etc.
3. Premiums as percentage of income
By this rule, payment of insurance premium depends on disposable income. In other words, one should decide the quantum of insurance after meeting the regular outgo from salary.
From the first two rules, you can make a broad estimate of the minimum insurance you should have. The premium as percentage of income rule can help you fine-tune your cash flow by committing an appropriate percentage of your income for paying life insurance premium.
4. Capital fund rule
This rule suggests that if you need Rs 1 lakh p.a. for your family needs, and assuming you do not have any other income-generating assets, you may like to create a capital fund of Rs 12.5 lakh (Rs 1.25 million) which can yield Rs 1 lakh (Rs 100,000) annual income @ 8% p.a. You may therefore buy a life insurance policy of Rs 12.5 lakh.
5. Family needs approach
This rule holds that you purchase enough life insurance to enable your family to meet various expenses in the event of key earning person's death. Under the family needs approach, one has to divide his family's needs into two main categories: immediate needs at death (cash needs), and ongoing needs (net income needs).
Sunday, June 29, 2008
Update: About Indian Insurance companies
Date: June 27, 2008
1.Aegon Religare Life Insurance Company Limited, a joint venture life insurance company promoted by Religare Enterprises Limited, India, Bennett Coleman & Company Limited, India and Aegon N.V., Netherlands has been registered as a Life Insurer under Section 3 of the Insurance Act, 1938 with the Authority. Besides DLF Pramerica Life Insurance Company Limited, a joint venture life insurance company promoted by DLF Limited, India and Prudential International Insurance Holdings Ltd, USA has also been registered as a Life Insurer under Section 3 of the Insurance Act, 1938 with the Authority. The Certificates of Registration (Forms IRDA/R3) have been issued by the Authority to the two companies today. With the registration of these two companies today, the total number of life insurers registered with the Authority has gone up to 21.
2.Bharti Axa General Insurance Company Limited, a joint venture general insurance company promoted by Bharti Ventures Limited, GIBA Holdings Pvt Limited, India and Societe Beaujon, a wholly owned subsidiary of AXA S.A., France has been registered as a General Insurer under Section 3 of the Insurance Act, 1938 with the Authority. The Certificate of Registration (Forms IRDA/R3) has been issued by the Authority today. With this registration, the total number of general insurers registered with the Authority has gone up to 20.
(C R Muralidharan)
Member
Source: http://www.irdaindia.org/
Sunday, June 15, 2008
Ulips set to get costlier
Ulips set to get costlier
The next time you buy a unit-linked insurance plan, you will be shelling out more money depending on the type of Ulip you buy and the company you buy from.This is because the Finance Bill that had proposed applying the service tax (12.36 per cent) on all charges that are deducted by an insurance company in a Ulip, such as the fund management charge (FMC), premium allocation charge, policy administration charge (which is deducted on a monthly basis), switching charges and various miscellaneous charges, has been passed by both the Houses of the Parliament this month. The chief financial officers of life insurance companies met last Wednesday and have decided to pass on the service tax burden to customers, confirmed officials of various life insurance companies. However, sources said a few insurers have agreed to pass on the service tax on fund management charges and policy administration charges to customers, but are yet to take a call on whether to pass on the service tax on the policy administration charges. Insurance companies will deduct the service tax amount from the premium that will be invested in the fund of your choice. As a result, lesser amount will get invested in the fund. The service tax will be applicable not only on the first year premium, but also on subsequent renewal premiums and the lump sum amount (top-ups) you add to your fund in any year.Therefore, you will lose more if you opt for a Ulip from a company that has higher charges. The charge structure varies across Ulips and insurers. The premium allocation charges across insurers range from 0 per cent to as high as 100 per cent in the first year. Fund management charges vary from 0.25 per cent to 3 per cent, while insurers deduct policy administration charge (normally Rs 50) on a monthly basis. "As a result of the service tax, Ulips with lower premium allocation charges will now become attractive. Besides, insurers will now be forced to reduce their premium allocation charges," said a senior insurance official. Life insurance companies clocked new business premium of Rs 92,988.71 crore (Rs 929.88 billion) in 2007-08, of which around 70 per cent came from Ulips. The life insurance industry will be paying over Rs 3,000 crore (Rs 30 billion) as service tax.
http://in.rediff.com/money/2008/may/28perfin.htm
The next time you buy a unit-linked insurance plan, you will be shelling out more money depending on the type of Ulip you buy and the company you buy from.This is because the Finance Bill that had proposed applying the service tax (12.36 per cent) on all charges that are deducted by an insurance company in a Ulip, such as the fund management charge (FMC), premium allocation charge, policy administration charge (which is deducted on a monthly basis), switching charges and various miscellaneous charges, has been passed by both the Houses of the Parliament this month. The chief financial officers of life insurance companies met last Wednesday and have decided to pass on the service tax burden to customers, confirmed officials of various life insurance companies. However, sources said a few insurers have agreed to pass on the service tax on fund management charges and policy administration charges to customers, but are yet to take a call on whether to pass on the service tax on the policy administration charges. Insurance companies will deduct the service tax amount from the premium that will be invested in the fund of your choice. As a result, lesser amount will get invested in the fund. The service tax will be applicable not only on the first year premium, but also on subsequent renewal premiums and the lump sum amount (top-ups) you add to your fund in any year.Therefore, you will lose more if you opt for a Ulip from a company that has higher charges. The charge structure varies across Ulips and insurers. The premium allocation charges across insurers range from 0 per cent to as high as 100 per cent in the first year. Fund management charges vary from 0.25 per cent to 3 per cent, while insurers deduct policy administration charge (normally Rs 50) on a monthly basis. "As a result of the service tax, Ulips with lower premium allocation charges will now become attractive. Besides, insurers will now be forced to reduce their premium allocation charges," said a senior insurance official. Life insurance companies clocked new business premium of Rs 92,988.71 crore (Rs 929.88 billion) in 2007-08, of which around 70 per cent came from Ulips. The life insurance industry will be paying over Rs 3,000 crore (Rs 30 billion) as service tax.
http://in.rediff.com/money/2008/may/28perfin.htm
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