Many of us have bought one or more ULIP policies in past one Decade, it may be in the form of ULIP, Unit Linked Pension Fund, Unit Linked Children Fund, Guaranteed return plans etc… But did you able to find out how these ULIPs and their funds performed in past few years compared to the Benchmark Index (Nifty/Sensex etc.) and also how they fare compared to the Mutual funds of similar nature. For most of us the answer will be NO, we can’t find these details.

We provide you details on how to find the value.

1. Select the Insurance provider
2. Select the policy name
3. Select the fund type

Just remember that day, when your insurance agent gave you assurance about your ULIP policy and you were happy when you were signing the application form. Both you and your agent were happy on that day. You have planned for your children or your pension or investment. Your agent have told you that you will get return like full of planet. You were glad by thinking that you will be rich in next 3 years or 5 years. Surprisingly your agent is happy till date now but what about you.

One day you have informed that your total fund value is less then you have invested, how that day was? Now how are you feels? Have you cheated by agent or company is making you fool? You never read your Policy documents because you had faith in your agent. Perhaps you don’t have any option other then surrender to your lovable policy by now.

But real story is that, if your agent gives you services like advice on fund switching on time then this will not be like it. Switches made across your ulip portfolio, will gain you profit.

Health Insurance plan must take care……

1. Daily Expenses in Hospital
2. Surgical Expenses
3. Out Patient expenses
4. All expenses in and out of Hospital
5. Waiver of premium during stay at Hospital
6. Risk Coverage in case of any exigencies

Now knowing what a health Insurance plan must be, below is what LIC’s Jeevan Arogya gives you. This policy is the best and would change lifes of many.

1. Valuable financial protection in case of hospitalisation, surgery etc
2. Increasing Health cover every year
3. Lump sum benefit irrespective of actual medical costs
4. No claim benefit
5. Flexible benefit limit to choose from
6. Flexible premium payment options

Benefits Under Jeevan Arogya

1. Hospital cash benefit (HCB)
2. Major Surgical Benefit (MSB)
3. Day Care Procedure Benefit
4. Other Surgical Benefit
5. Other Optional benefits(PWB)

Details About Each Benefit:

Hospital Cash Benefit (HCB)

1. HCB (Within India only) is payable on per day basis. Double the cash benefit for ICU.
2. Max 30 days hospitalization & not more than 15 days in ICU (2 times HCB) for 1st policy year for each one
3. Max 90 days and incl not more than 45 days in ICU in the 2nd year onwards for each insured
4. Limited to a max of 720 days (incl of 360 days for ICU) during entire policy term for each insured
5. HCB to increase 5% till it reaches 1.5 times And arithmetic addition of an amount equal to “No Claim Benefit”
6. Stay in Hospital exceeds a continuous period of 24 yrs or part thereof thereafter. Stay more than 7 days even for 1s 24 hours also payable.

Major Surgical Benefit(MSB)

1. Quick Cash facility: 50% of eligible MSB amount subject to approval from TPA in select Hospitals
2. MSB shall be a percentage of Sum Assured and is payable regardless of actual costs incurred
3. Rs. 1000/- towards Ambulance expenses Premium Waiver benefit for next one year
4. Surgery within India.

Day Care Procedure Benefit (DCPB)

1. If a DCPB is performed, no HCB shall be paid
2. DCPB is payable as one lump sum and proof of surgery is required
3. All surgical procedures should be done by a Physician or Surgeon, to the satisfaction of the Corporation
4. No transfer of left over benefit to other insured
5. Surgery within India

Other Surgical Benefit (OSB)

1. OSB is payable as daily benefit
2. Proof of surgery done by a Physician or Surgeon, is subject to the satisfaction of the Corporation
3. No transfer of left over benefit to other insured
4. Surgery required but not listed under MSB or DCPB

Other Options that are available

Term Rider Benefit

Min Term Assurance SA: Rs. 100000/-
Max Term Assurance SA: Equal to MSBSA
Min Entry Age: 18 Years completed
Max Entry Age: 50 Years NBD
Max Maturity Age: 60 Years NBD
Max Term: 35 Years
(SA be in multiples of Rs. 25000/-)

Accident Benefit Rider (AB)
Min AB SA: Rs. 25000/-
Max AB SA: Equal to Term Assurance SA
AB SA shall be in multiples of Rs. 5000/-

Death Benefit
No death benefit unless TA Rider benefit is opted for

On death of the Principal Insured(PI)

Surviving Insured Spouse will become PI, if already option given at the beginning of contract
If the Insured Spouse had predeceased the PI, Then the other Insured will have the option to take new policy on following conditions
The new policy will be issued without any underwriting if the new policy is bought within 90 days of the termination of the existing policy
The maximum entry age will not apply for the new policy
The outstanding Waiting periods and outstanding period of any Exclusion will however apply under the new policy
Other terms and conditions including premium rates will be as applicable for the new policy

Maturity Benefit
No benefits are payable at the end of the cover period

Points to be noted

Waiting Period

1. 90 days from DOC other than accidental bodily injury
2. 45 days from DOR, if request for revival recd within 90 days from the due date of FUP
3. 90 days from DOR, if request for revival recd beyond 90 days from the due date of FUP

Specific Waiting Period (treatments)

1. 2 years from Date of Cover Commencement
2. 2 Years from DOCC, if request for revival recd within 90 days from the due date of FUP
3. 2 Years days from DOR, if request for revival recd beyond 90 days from the due date of FUP

Treatments in respect of Specific waiting period
i. Treatment for adenoid or tonsillar disorders
ii. Treatment for anal fistula or anal fissure
iii. Treatment for benign enlargement of prostate gland
iv. Treatment for benign uterine disorders like fibroids, uterine prolapse,
dysfunctional uterine bleeding etc
v. Treatment for Cataract
vi. Treatment for Gall stones
vii. Treatment for slip disc
viii. Treatment for Piles
ix. Treatment for benign thyroid disorders
x. Treatment for Hernia
xi. Treatment for hydrocele
xii. Treatment for degenerative joint conditions
xiii. Treatment for sinus disorders
xiv. Treatment for kidney or urinary tract stones
xv. Treatment for varicose veins
xvi. Treatment for Carpal tunnel syndrome
xvii. Treatment for benign breast disorders e.g. fibroadenoma, fibrocystic disease etc

Termination of Policy
If policy is issued on a single life,

1. Non Payment of premium within revival period
2. On death
3. On Date of cover expiry
4. On exhausting all the life time maximum Benefits Limits as specified above

If policy is issued on more than one life

1. Non Payment of premium within revival period
2. On death or Date of cover expiry of the PI and if the Policy does not continue with the IS as the PI
3. On death or Date of cover expiry of IS after Policy continues with the IS as the PI after the PI dies or reaches his/her Date of cover expiry
4. On PI exhausting all the life time maximum Benefits Limits as specified above

What is different from Mediclaim

1. Pre defined benefit- No reimbursement, but lump sum paid based on pre-defined benefit
2. Not based on expenses incurred
3. This will tend to indirectly reduce the Health care cost, which is rising due to cash less mediclaim benefit
4. All benefit is dependent on HCB

Why wait Get LIC’s Jeevan Arogya Enjoy Your Life with your family

To start with, let us understand what this policy is and how it effects our life.

This is an Endowment Assurance Plan issued on the lives of husband and wife. The plan provides financial protection against death of both the lives. It pays the maturity amount on survival of one or both the lives to the end of the policy term.

This is a joint life plan and covers lives of two partners say husband and wife simultaneously. Premiums are payable till the end of the specified term or till death of either of the insured persons, if earlier. The plan contains extensive benefits; an overview of which appears as under:

On the death of the first life, the sum insured will be paid to the survivor. Further premiums under the policy will be waived, but the insurance protection of the second life will continue. Also, the policy will continue to participate in profits of the Corporation. On death of the second life,again the sum insured will be paid together with the attaching bonuses. In this event the policy will terminate. If the second life survives the term of the policy, he or she will be paid sum insured together with the attached bonuses, even though the sum insured has been paid once, on the death of the first life. If both the lives survive the term of the policy, the sum insured will be paid to them jointly, only once, together with the attached bonuses. Different supplementary covers are also available for increasing coverage under the policy.

Jeevan Sathi Plan is best suited for those married couples who want to enjoy insurance coverage for a comparatively lesser premium. Moreover, housewives who are otherwise not insurable can also enjoy the benefits of insurance policy through this plan.

Death Benefit :
On first death the Sum assured is payable in a lumpsum. If the survivor of the two lives dies thereafter during the remaining policy term, Sum Assured along with the all bonuses is payable again in a lumpsum.

In case either of the couple dies during the policy’s term, two things happen. One, LIC pays to the surviving spouse the full sum assured. And, two, the policy continues on the life of the surviving partner without him/her having to pay any further premiums, i.e. the life cover on the survivor continues free of cost.

The sum assured is again be payable on the death of the other partner in case both the husband and wife were to die during the term of the policy. Vested bonus would also be paid along with the sum assured on the second death.

Maturity Benefit :
If one or both the lives survive till the end of the policy term, Sum Assured along with all bonuses declared up to maturity date is payable in a lump sum.

Supplementary/Extra Benefits :
These are the optional benefits that can be added to your basic plan for extra protection/option. An additional premium is required to be paid for these benefits.

Survival benefits:
If one or both the lives survive to the maturity date, the sum assured, along with the accumulated bonus, is payable.

Surrender Value :
Buying a life insurance contract is a long-term commitment. However, surrender values are available under the plan on earlier termination of the contract.

Guaranteed Surrender Value :
The policy may be surrendered after it has been in force for 3 years or more. The guaranteed surrender value is 30% of the basic premiums paid excluding the first year’s premium.

This is an Ideal Plan for a married couple. It would be for a Newly Wed, Married for1 year or 5 yrs or 10 yrs.

Retirement is a new life, a life different from what we have lived through out our life. Retirement is about doing what you always wanted to do but the life did not permit. Retirement is a life full of bliss but with a few ifs and for many with numerous ifs. This is true about retired life world over and is becoming a reality in India too.

The economic and demographic landscape of India has changed over the last one decade or so. The economic growth has given more disposal income in the hands of Indian households. At the same time the improved healthcare has significantly improved the life expectancy. Today an average Indian lives 8 years beyond the retirement age of 60 years. A great news for the country but it also brings with it new challenges especially in a country like India where no real social security system exist.

This brings a new angle to the financial planning, which was earlier limited to children education & marriage, building house, expanding business and creating corpus for emergencies.

The biggest mistake anyone can make in planning for retirement is to consider retirement far off. In fact it is correctly said that the day you earn your first money, start planning for retirement. Is it taking the logic of starting early too far? In my opinion a big no. I also believe, retirement plans from Life Insurers should form an important part of any financial plan because retirement planning requires the discipline of saving for long-term.

With multiple retirement plans from life insurers available and many more to come in the market, the decision making many a time becomes a difficult task. While selecting a life insurance plan for retirement, one needs to focus on just a few things.

The first and foremost is the allocation of funds for investment over a period of time because more the invested funds more would be the return. Retirement planning is a long-term game hence even a small incremental allocation in the first few years could lead to significantly higher return at the end of the period.

The second thing to be kept in mind is the various charges deducted by the life insurer such as fund management charges, policy admin charges, the top up allocation etc. The fund management charges charged every year may again seem to be a small amount but cumulatively over the long-term can make a difference, which certainly would be a significant amount. Another thing to be kept in mind is an understanding of your own risk profile, a periodic review of that to consider any change in your profile and management of your funds accordingly. Depending on the time horizon of the investment and your personal risk taking ability you may choose between fixed income funds where 100% of the fund is invested in fixed income or a fund, which has the mandate to invest 100% in equity or a balanced fund having a mix of fixed income and equity. Everyone cannot be financially savvy to judge one’s risk profile and thus should ideally leave it in the hands of the experts. I would always suggest that one should go in for a retirement plan which has the automatic risk management facility in fund management i.e. it will change your fund options based on your life stage. This will take away some of the hassles though I would add that one should always keep one’s financial advisor informed about the changes in one’s life. And last but not the least look for a company that understands financial planning, has a good track record and is financially robust

Just keeping these few things in mind and starting early can be the trick to a fun filled retired life – a life to live, a life to enjoy and a life to remember for the lifetime.

There are so many retirement plans by different providers. Some are ULIP based, some follow the old traditional plans. Better recommendation is to go for Traditional Plans like Jeevan Suraksha from LIC.

Each picture is self explanatory, on how is the process. You can read the text below the image and understand. This is just for your understanding, and if needed more information please consult your Life Insurance agent.

To start with, let us understand Term Life Insurance:
Term Life Insurance is pure insurance. When you purchase a term policy, you are buying coverage for a specified period of time. If you die within the specified period, the insurance company will pay your beneficiaries the face value of your policy.

Next is Variable Life Insurance.
Variable life insurance is cash-value life insurance with values reflecting the performance of a variety of funds that you select. It differs from traditional permanent life insurance.

Most important is Whole Life.

When you purchase a whole life policy, you traditionally pay a fixed premium for as long as you live or for as long as you keep the policy in force. Part of your premium goes to the insurance company for the pure protection element of your policy.

Next in our series of Life Insurance in Pictures is Universal Life Insurance.

Unlike traditional whole life insurance policies, universal life policies are very flexible. If your policy has sufficient cash value, you may vary the frequency and amount of the premium as you see fit (subject to policy provisions). You may also increase or decrease the face amount of your policy to suit changes in your situation (subject to underwriting).

Last but not the least, Variable Universal Life Insurance

Variable universal life insurance policies operate much the same as “traditional” universal life policies. IN exchange for a periodic premium, the insurance company provides a specific death benefit. The policies accumulate cash value on a tax-deferred basis. And like traditional universal life policies, variable universal like policies offer the flexibility to change either your premiums or death benefit to suit changes in your situation (subject to policy provisions)

But there is a unique difference. Instead of investing your cash value in its general account, the insurance company invest the cash value of your variable universal life insurance policy, at your direction, in a separate account made up of a variety of investment sub-accounts, Each of these sub-accounts follows a specified investment objective.

We shall understand each one of them in details in the coming days. Please check back shortly.

Mr Atul Shah was looking to invest some amount in Life Insurance ULIP plan. Mr Shah initially taken Endowment Life Insurance plan from LIC which  matured and wanted to re-invest.  He is not keen to invest in Stock Market, but has bought few stocks.

He was looking out for a ULIP plan which gave good returns and wanted to make a Single Premium. After lot of consultation, reading and talking to Life Insurance Agents, Mr Shah shortlisted 2 ULIP plans.

1. SBI Life Smart Wealth Assure and,

2. IDBI Federal Wealthsurance Premier Insurance Plan.

Below is the summary comparison what Mr Shah shared.

Mr Shah, looking at all the options decided to go with IDBI Federal Wealthsurance plan.

Why did he Choose the Plan?

1. Tax Benefit, as he got Medical Tax Benefit.

2. Policy term is Short or Long, both ways he would benefit

3. More Investment Fund Options in IDBI compared to SBI Life.

4. Riders, he has the option to take Hospital Benefit, which does not make mandatory for him to buy Health Insurance.

5. Partial Withdrawal Fee, this was a good eye catcher for Mr Shah.

On this basis, Mr Shah was able to decide where he is going to deposit the amount to build his wealth.