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Insurance portfolio … Think about it

admin — Mon, 07 May 2012 03:24:51 +0000

When you’re building your portfolio, you may not think about adding a life insurance policy. But it’s NOT TOO late. Life insurance can be a valuable addition with many benefits. You should have enough life Insurance to protect your family and loved ones.

What you need to look when building your Insurance portfolio has been discussed below.

Few of the features which you need to think, we have included below:

Liquidity of the death benefit

Since death benefit will be paid in cash when you pass away, it’s a liquid asset that can be accessed quickly by your beneficiaries.

Easy distribution

It can be split among any number of heirs. Ensure you have nominee represented in your policy document, else it would be a big fight and result in delay.

Predictable value

Since some types of life insurance earn cash value on a predetermined schedule, you can predict the value of your policy at any future date. With IRDA getting strict on the policies being issued by providers, we know what would be the minimum return.

Stability

When life insurance is a guaranteed product, the value of the death benefit isn’t affected by the economy or changes in the stock market

Tax advantages

Cash(Bonus) values in a life insurance policy grow tax deferred, and beneficiaries receive the death benefit income tax free (and estate tax free, too, if properly structured).

Keep in mind that only endowment insurance policies are considered assets, since they are the only policies that have cash value.

Talk to your insurance professional about whether adding more life insurance would make sense as a part of your portfolio.

Keep in mind that as your life changes (for example, marriage, birth of a child or a job promotion), so will your life insurance needs. Make sure your life insurance policy suits your long-term needs. You should weigh any associated costs before making a purchase.

Life insurance has fees and charges including costs of insurance that vary based on the insured’s gender, heath and age. There are additional charges for riders that customize a policy to fit your individual needs.

Specific premium requirements must be met to be eligible for death benefit guarantees. Please see the contract for details or check with your Life Insurance agent.

Educational website for Policyholders

admin — Thu, 03 May 2012 16:29:08 +0000

The Insurance Regulatory and Development Authority has been taking a series of initiatives under the Bima Bemisaal logo for creating awareness about insurance. The objective of having an exclusive website is to educate consumers about insurance, in particular, regarding Buying Insurance, Making a Claim etc.

The website is an attempt to reach out to all to give certain basic generic information on the subjects in order that consumers begin to think and seek answers to questions such as what they need to buy, whether they are being offered the right product, that they must read the insurance policy fully, understand procedures and documentation involved in making a claim etc. The attempt has been to keep the language simple so that a layman can understand it.

The website can be accessed at www.policyholder.gov.in and do leave feed back if any questions or want to know more about.

Please have your response on or before 21st May, 2012. You may send an e-mail to ypriyab@irda.gov.in

We shall wait to see more of this type and information from IRDA.

ING STAR Life – Enjoy Guaranteed Benefits

admin — Thu, 12 Apr 2012 19:43:37 +0000

ING STAR Life is a limited pay, non-participating and non-linked endowment plan which provides guaranteed additions for the entire policy term. This plan is best suited for anyone who is looking for guaranteed returns.

ING STAR Life guarantees the annual additions right from the start of the policy. You pay premiums for just 3 years and get to enjoy full benefits for the entire term of 12 years. Even to better that, with ING STAR Life you do not need to wait till the end of policy term to receive the benefit as Guaranteed Survival Benefit starts from 10th year itself.

Eligibility

Minimum / Maximum Age at Entry	8 years / 60 years age last birthday
Minimum / Maximum Maturity Age	20 Years / 72 years age last birthday
Policy Term	12 Years
Premium Paying Term (PPT)	3 Years
Minimum Annual Premium	Rs. 25,000
Minimum Sum Assured (Rs.)	Rs. 65,000
Maximum Sum Assured (Rs.)	Rs. 50,00,000 (Subject to underwriting)
Premium Mode	Annual only

Terms used in the Plan

Guaranteed Death Benefit: In case of the unfortunate demise of the policy-holder at any time during the policy term, 5 times the annual premium excluding service tax and premiums for extra mortality rating (if any) will be paid to the nominees/beneficiaries.

Guaranteed additions: With this plan you get guaranteed additions for the entire policy term and the rate of guaranteed additions varies with chosen Sum Assured. The guaranteed additions will be calculated on the sum assured on simple basis (not compounded). The rate of Guaranteed Additions is fixed for the entire policy term of 12 years.

Guaranteed Survival Benefit: With ING STAR Life, you don’t have to wait for the end of policy term to receive the full policy benefits. Guaranteed Survival Benefit is equal to sum assured and is paid to you in two equal installments

Guaranteed Maturity Benefit: The guaranteed maturity benefit is paid to you at the end of the policy term and is equal to the sum of all guaranteed additions.

Benefits of ING Star Life

Guaranteed Death Benefit of 5 times the annual premium.
Attractive Guaranteed Additions from 8% to 10% per annum for the entire policy term.
Guaranteed Survival benefits in the 10th and 11th year.
Premium commitment for only 3 years.

Death Benefit : A guarantee of 5 times the annual premium is paid to the nominee.

Guaranteed additions : This is a guaranteed fixed interest rate (Simple) which is paid based on the sum assured. The higher the Sum Assured, the %age of return is more. The maximum interest rate that can be availed is 10.00% on the sum assured. Below information explains.

Sum Assured	Guaranteed additions rate (p.a.)
65,000 to Less than 1,30,000	8.00%
1,30,000 to Less than 1,95,000	9.00%
1,95,000 to Less than 2,50,000	9.50%
2,50,000 and above	10.00%

Survival Benefit: ING Star life policy is for a short period of 12 years, the survival benefit starts to pay during the 10th and 11th year. 50% of the Sum Assured is paid during the 10th year and 50% paid during the 11th year. On the last year (12th year), you receive Guaranteed Maturity Benefit.

End of policy year	Guaranteed Survival Benefit payable
10	50% of Sum Assured
11	50% of Sum Assured

Premium

Premiums for ING Star Life is done backward, meaning to say you first decide on the Sum Assured, and then based on SA value premium is calculated.

Sample illustration of the plan based on different Sum Assured is shown below.

Age at entry(Years)	Sum Assured	Annual Premium#	Guaranteed Death Bnefit	Guaranteed Additions Rate	Guaranteed Survival Benefit End of 10th year	Guaranteed Survival Benefit End of 11th year	Guaranteed Maturity Benefit
35	65,000	25,338	1,26,688	8.00%	32,500	32,500	62,400
35	1,30,000	50,675	2,53,377	9.00%	65,000	65,000	1,40,400
35	1,95,000	76,013	3,80,065	9.50%	97,500	97,500	2,22,300
35	2,50,000	97,453	4,87,263	10.00%	1,25,000	1,25,000	3,00,000

Loan

You can avail a policy loan as eligible after paying the premium for two full years and after completion of 2 policy years.

Income Tax Benefit

ING STAR Life qualifies for Income Tax Benefits under section 80C and section 10 (10D) of the Income Tax Act, 1961, subject to provisions contained therein.

U/S 80C of the Income Tax Act 1961 on your premiums.
U/S 10 (10D) of the Income Tax Act 1961 on the maturity proceeds of your policy.

Overall

We recommend this product, due to the nature of the return. A return of 8% if considering the minimum sum assured opted. No tax on maturity, Life Insurance is covered. Another way of doing a single premium, but actually u pay the premiums in 3 years rather than running thru for the entire policy years.

Retire Rich – Retirement Plan from Bajaj Allianz

prakash — Tue, 27 Mar 2012 17:18:48 +0000

Bajaj Allianz CashRich Insurance Plan is a Carefree retirement plan which requires your attention now. A VERY GOOD retirement plan which allows peace of mind once retired. Not only that, it also ensures that your dependants are financially secure.

This is a very good product from Bajaj Allianz, and if looking for retirement cum pension plan , we say YES to this plan.

Features of Bajaj Allianz CashRich Insurance Plan

Key features of the plan are

Get cash benefit in three tranches

Accumulated compound reversionary bonus on completion of premium payment term.
Cash Back benefit of 5% of the sum assured plus cash bonus, if any declared every year, during the cash back period
Sum Assured plus terminal bonus, if any on maturity of the policy.

Flexibility to Select your policy term from 10 years to 65 years depending on your financial need.
Flexibility to Select your limited premium paying term (PPT) from 5 years to 30 years, in multiple of 5 only.
Flexibility to Pay your future premiums in advance and get benefit of appropriate discounts.

Option to Keep your policy in-force for full sum assured for a period of two years, even if you miss to pay your premiums on due dates, provided you have paid at least 3 year’s premiums in full.
Option to Convert your policy to a “single premium term cover with return of premium (ROP)” policy, if you miss to pay your premiums on duedates provided you have paid at least 5 years’ premiums in full.

Get more value for money with attractive high sum assured rebate

Optional riders to enhance your protection

How does Bajaj Allianz CashRich Insurance Plan work?

Bajaj Allianz CashRich Insurance Plan is a limited premium payment, participating, anticipated, endowment plan. The whole policy term consists of two phases; a premium payment term and a cash back period, both selected by you at the inception of the policy. At the end of the premium payment term, the accumulated compound reversionary bonus shall be payable to you, followed by the payment of Cash Back benefit of 5% of the sum assured plus the annual cash bonus (if any as declared by the company), at the end of each policy year, till the end of the policy term. On maturity of your policy, full sum assured plus the terminal bonus, if any, is also payable to you.

In case of unfortunate death of the life assured during the premium payment term, the sum assured plus the accumulated compound reversionary bonus plus interim bonus, if any plus terminal bonus, if any, is payable to the nominee. On the happening of such death after the premium payment term but during the cash back period, irrespective of the Cash Back benefits paid to you before the death, the full sum assured plus the interim cash bonus, if any plus the terminal bonus, if any shall be payable to the nominee.

Bonus

The plan receives bonus, and there are 3 different type of Bonus the plan can accumulate. End of each year, the Company will announce bonus, and follow the guidelines as per IRDA.

Compound Reversionary Bonus

This is a regular bonus expressed as a percentage and is applied to the sum assured and the compound reversionary bonus amount already attached to your policy. The compound reversionary bonus, once declared, shall vest in the policy immediately, provided all due premiums till date have been paid and shall be payable as part of the death benefit or as survival benefit at the end of the premium paying term.

Interim Bonus

The Company may pay interim bonus as well for the policies, where any premium has been paid after the last
valuation date and the death benefit or survival benefit (at the end of PPT) becomes payable before the next valuation date.

Cash Bonus

After the premium paying term, the Company may declare a cash bonus as a percentage of the sum assured which will be payable along with the Cash Back benefits at the end of every policy year during the cash back period.

Terminal Bonus

If your policy has completed 10 years or more and all due premiums have been paid, the company may pay a terminal bonus as well on the termination of the policy due to death or maturity.

Eligibility

Minimum Entry Age	0 years (18 years for additional riders)
Maximum Entry Age	60 years (50 years for additional riders)
Minimum Age at Maturity	18 years
Maximum Age at Maturity	100 years
Premium Paying Term	5, 10, 15, 20, 25 & 30 years, (maximum premium payment ceasing age is 65 years)
Cash Back Period	5 to 35 years
Minimum Policy Term	10 years
Minimum Policy Term	65 years
Minimum Premium	Rs. 8,000 per Yearly Installment Rs. 4,000 per Half-yearly Installment Rs. 2,000 per Quarterly Installment Rs. 750 per Monthly installment
Maximum Premium	No Limit
Minimum Sum Assured	Rs. 100,000
Maximum Sum Assured	No Limit
Premium Payment Frequency	Yearly, Half-yearly, Quarterly and Monthly.

Riders

You can enjoy extra coverage by choosing the optional additional rider benefits at a nominal extra cost. The riders available with Bajaj Allianz CashRich Insurance Plan are:

Bajaj Allianz Supplementary Death Benefit (UIN : 116B002V01)
Bajaj Allianz Comprehensive Accidental Protection Benefit(UIN : 116C001V01)
Bajaj Allianz Family Income Benefit (UIN : 116B009V01)
Bajaj Allianz Critical Illness Benefit (UIN : 116C007V01)
Bajaj Allianz Hospital Cash Benefit (UIN : 116C008V01)

Benefits

Survival Benefit

At the end of the premium paying term, you will receive the accumulated compound reversionary bonus accrued during the premium paying term, provided your policy is in force or paid-up and has not been converted to a single premium term cover with return of premium (ROP)

Cash Back Benefit

At the end of each policy year, after the completion of the premium paying term, Cash Back benefit equal to 5% of the sum assured plus the cash bonus, if any, is payable till the end of the policy term; provided your policy is in-force or is paid-up and has not been converted to a single premium term cover with ROP

If the policy is paid-up or is in auto-cover, the Cash Back benefit will be 5% of the paid-up sum assured and any cash bonus as declared at the end of each policy year

No Cash Back benefit shall be payable in case your policy is lapsed or has been converted to a single premium term cover with return of premium (ROP)

Maturity Benefit

If your policy is inforce for full sum assured, then, on the maturity date you will receive sum assured plus the terminal bonus, if any, as maturity benefit. However, if your policy is paid up, then, the maturity benefit shall be the paid- up sum assured.

In case your policy is converted to a single premium term cover with return of premium (ROP), then, the maturity benefit shall be the single premium, as determined as on the date of such conversion.

Your policy shall be terminated upon payment of the maturity benefit.

Death Benefit

In case of unfortunate demise of the life assured during the premium paying term and provided all the due premiums have been paid, the company will pay the sum assured plus the applicable bonuses to the nominee.

In case of unfortunate demise of the life assured during the premium paying term but the policy is in auto cover period, the company will pay the sum assured plus the applicable bonuses to the nominee after deducting all the due but unpaid premiums with applicable interest.

In case of unfortunate demise of the life assured when the policy is paid-up, the company will pay the below mentioned death benefit to nominee :

Death during PPT

Paid-up sum assured plus the applicable bonuses

Death during cash back period

Paid-up sum assured plus the interim cash bonus, if any.

In case of unfortunate demise of the life assured after the premium paying term but during the cash back period, provided all due premiums have been paid, the company will pay the sum assured plus the interim cash bonus, if any, the terminal bonus, if any, to the nominee.

In case of unfortunate demise of the life assured after the policy has been converted to a single premium term cover with return of premium (ROP), the Company will pay the revised sum assured, i.e., the sum assured ascertained at the time of such conversion of the policy

No death benefit shall be payable in case the policy is lapsed.

Surrender Value

You will have the option to surrender your policy anytime after 3 years, provided at least 3 years’ premiums have been paid in full.The surrender value shall be higher of the Guaranteed Surrender Value (GSV) or the Special Surrender Value (SSV). The GSV is equal to 30% of the due premiums paid excluding the first year’s premium, premiums for all additional rider benefits, if any, and the extra premiums, if any. The SSV will be arrived at by multiplying the paid-up sum assured and the applicable bonus as on the date of surrender with the SSV factor. The SSV factors will be declared by the company from time to time

However, if your policy has been converted to a single premium term cover with return of premium (ROP), the surrender value shall be determined as mentioned below:

The surrender value will be the higher of the Guaranteed
Surrender Value and the Special Surrender Value with respect to the single premium term cover with return of premium (ROP)
The guaranteed surrender value will be 30% of the single premium (as determined as on date of such conversion to a single premium term cover with return of premium (ROP).
The special surrender value will be based on the special surrender value factor in respect of the single premium term cover with ROP, which will be applied on the said single premium. The factors will be declared by the company from time to time.

Tax Benefits

Premiums paid are eligible for tax benefits as per Section 80C of the Income Tax Act
Death benefit, maturity benefit and the surrender value are eligible for tax benefits as per Section 10(10D) of the Income Tax Act
Premiums paid in respect of the Comprehensive accidental protection, hospital cash benefit and critical illness benefit will be eligible for tax benefits as per Section 80D of the Income Tax Act

Termination of the Policy

This Policy shall automatically terminate on the earlier occurrence of either of the following events:

On full surrender of the policy.
On expiry of the revival period, if three full years’ premiums have not been paid.
On foreclosure, if the paid-up sum assured plus vested bonus is less 1,000.
On foreclosure, if the outstanding loan plus loan interest becomes equal to the surrender value available under the policy.
On the death of the life assured.
On the maturity date

Interest rates of small savings – Increase

admin — Mon, 26 Mar 2012 19:24:12 +0000

Interest rates of small savings will increase effective April 01, 2012. Today, Ministry of Finance issued a circular witht he details for Small Saving Investments. Increase of Interest rates is based on the recommendations of Shyamala Gopinath Committee.

Overview

No Changes to Saving Deposits
Increase between 0.2 to 0.7% interest across all small saving investments
Maximum increase for 5 year investments

Changes to Interest rates effective April 01, 2012

Below chart explains the different interest rates effective April 01, 2012.

Money Back Plan Comparision from AEGON Reliagre

admin — Sun, 25 Mar 2012 21:33:51 +0000

AEGON Reliagre has 3 money back plans which is currently active. With all three money back plans being sold in the market, and understanding and comparision of the plans is very important.

Money Back Plans from AEGON Reliagre

Money Back Plan
Money Back Plus Plan
Flexi Money Back Insurance Plan

Compare Money Back Plans

Eligibility

First of the comparision is to know about the eligibility conditions, am i eligible for this plan. Below is the comparision done between the 3 plans.

Benefits

The MOST important is the Benefits which a life insurance policy has. On understanding the benefits, a product can be availed and decision can be taken.

Almost all Life Insurance policy have got Maturity, Survival, Death, Surrender benefits. In a money back plan, there is another option Periodic Payment. The peridoic payment differs from plan to plan, and below is the comparision of the 3 different money back plans from AEGON Reliagre.

Premium

If comparing the premium of the 3 money back plans, Moneyback Plus plan is the best option to go with.

Overall Decision

Money back plan is a good option to go with. Remember it COST little more than regular life insurance plans. So, if you are willing to pay a 10-20% higher premium than an endowment plan then it is ok.

Only benefit, the money back plan pays at regular periodic intervals, which helps during time of difficulty.

But should i pay more premium to avail this feature? A question to be asked by self before going for any Money Back Plan.

Changes Affecting Insurance – Union Budget 2012-13

admin — Tue, 20 Mar 2012 20:47:01 +0000

Lot of Hope was expected in the Union Budget 2012-13 for the Insurance Industry. During the budget speech by Union Finance Minister Pranab Mukherjee, the Finance Minister put up few points which directly OR in-directly is going to effect every individual. The changes proposed, some are good and few were disliked by every individual.

Let us see what is changing after the Union Finance Minister Pranab Mukherjee budget speech in detail.

What is Changing

Not much was talked about the Insurance industry, but yet the Finance Minister have few points for everyone to note.

Deduction of upto Rs 5000 for preventive health check-up
Setting up of Infrastructure Debt Funds to tap the overseas markets for long tenor pension and insurance funds
Excemption of the services provided by business facilitators and correspondents to banks and insurance companies
“The Insurance Laws (Amendment) Bill 2008” will be moved in the current session of the Parliament
DTC recoemmendations on hold until next year
Increase in service tax by 2%
Tax exemption eligibility condition under section 80 C and 10 (10D) has been revised from the previous sum assured to multiple of 5 times to 10 times
The budget appears to be neutral for general insurance sector

Sahara Vatsalya-Jeevan Bima another Money Back Plan

prakash — Tue, 20 Mar 2012 19:26:55 +0000

Sahara Vatsalya-Jeevan Bima is a with profit endowment plan with added advantage of life cover upto maturity and educational benefit of four annual installments @ 20%, 25%, 25% and 30% of sum assured are payable at the end of each year during the last four consecutive years of policy term for the educational expenses of the nominated child to ensure the child’s safe future. It also provides financial protection against death during the term of the policy by paying sum assured along with attached bonuses on the death of life assured (parent) in lump sum and additional annual ‘Family Income Benefit’ installments each of 10% of sum assured commencing from the policy anniversary following the death of the life assured and upto commencement of educational benefit and thereafter four annual educational benefit installments @ 20%, 25%, 25% and 30% of sum assured are payable at the end of each year during the last four consecutive years of policy term.

Eligibility

Minimum Issue Age (parent) the Life Assured	20 Years (Nearer birthday)
Maximum Issue Age (parent)	50 Years (Nearer birthday)
Minimum Issue Age (Child)	0 year
Maximum Issue Age (Child)	12 Years (Nearer birthday)
Minimum Sum Assured	Rs. 1,00,000/-
Maximum Sum Assured	No Limit subject to underwriting
Policy Term under the plan is	22– Age at entry of child
Premium Paying Term	Same as the policy term.
Maximum Coverage Age (parent)	70 Years

Benefits

Maturity Benefits: If the policy is in force for full sum assured, attached bonuses will be payable at maturity and four annual installments of ‘Educational Benefit’ @ 20%, 25%, 25% and 30% of sum assured are payable at the end of each of the last four policy anniversaries respectively.

Death Benefits: If the policy is in force for full Sum Assured at the time of death of the Life Assured (the parent), following benefits will be payable to the nominee, and in case nominee (child) is minor to the appointee:

A lump sum payment of Sum Assured along with all vested bonuses is payable immediately on death of the life assured.
Annual installments of ‘Family Income Benefit’ each of 10% of sum assured commencing from the policy anniversary following the death of the life assured and upto 18 years of assumed age nearer birthday of named child on the anniversary following the death of the life assured.
Four annual installments of ‘Educational Benefit’ @ 20%, 25%, 25% and 30% of sum assured are payable at the end of each of the last four policy anniversaries respectively.

Tax Benefits

Premiums paid under the policy are eligible for Income Tax benefits under section 80C of the Income Tax Act, 1961.
The maturity proceeds including fixed money back annual installments payable and death benefits including family income benefit under the policy are not taxed as income of the policyholder or his successors under section 10(10 D) of the Income Tax Act, 1961.

Riders

Accident Benefit & Accidental Total & Permanent Disability Benefit Rider

Family Income Benefit

Sahara Vatsalya-Jeevan Bima provides financial protection against death during the term of the policy by paying sum assured along with attached bonuses on the death of life assured (parent) in lump sum and additional annual ‘Family Income Benefit’ installments each of 10% of sum assured commencing from the policy anniversary following the death of the life assured and upto commencement of educational benefit and thereafter four annual educational benefit installments @ 20%, 25%, 25% and 30% of sum assured are payable at the end of each year during the last four consecutive years of policy term.

Illustration

Let us assume Mr X, opted for this plan. Details as below.

Sum Assured: Rs.1,00,000
Entry Age of Life Assured : 35 years
Child’s Entry Age: 7 Years
Term: 15 Years
Mode: Annual

Mr X’s, annual premium is Rs.8069.00

AEGON Religare Flexi Money Back Insurance Plan

admin — Tue, 13 Mar 2012 19:26:19 +0000

This is the thrid Money back plan Aegon Religare has come up with. The previous two money back plans “AEGON Religare Money Back Plus Plan” and “AEGON Religare Money Back Plan”. “Flexi Money Back Insurance Plan” is the 3rd.

Flexi Money Back Insurance Plan has got 3 different policy terms of 14, 17 & 21 years with premium paying term as 10, 12 & 15 years. There is BONUS from the very first year and TERMINAL BONUS at the end of the term (maturity).

Eligibility

Minimum Entry Age	90 days completed; risk cover will commence after Life Assured attains 7 years last birthday
Maximum Entry Age	60 years last birthday for 14 yearsPolicyTerm; 58 years last birthday for 17 years Policy Term; 54 years last birthday for 21 years Policy Term
Maximum Maturity Age	75 years last birthday
Minimum Sum Assured	Rs. 1,00,000
Policy Term	14 years OR 17 years OR 21 years
Premium Payment Term	10 years OR 12 years OR 15 years
Premium Payment Mode	Annually, Half Yearly & Monthly

Features : Flexi Money Back Insurance Plan

Life cover continues even after the end of Premium Payment Term
Additional Accidental Death Benefit
Bonus accrues first year onwards
Inflow of income at regular intervals
Choice of three Policy Terms to suit your financial needs
In case of death during the Policy Term, 100% of Sum Assured along with accrued bonus paid
You will get periodic survival benefits (Survival Benefits)
Policy Loan Available

Benefits : Flexi Money Back Insurance Plan

Maturity Benefit

At the end of the Policy Term, you will be entitled to receive 40% of Sum Assured i.e. last periodic survival benefit for inforce policies or 100% Paid-up Sum Assured for policies under Paid-up status, as applicable with the simple reversionary accrued bonus.

Death Benefit

In case of your unfortunate demise, the nominee receives the Sum Assured or Paid-up Sum Assured along with the simple reversionary accrued bonus and terminal bonus, if any, irrespective of the periodic survival benefits already paid and the plan ceases to exist.

If death occurs before attaining 7 years of age then the Death Benefit will be sum of all premiums paid irrespective of the periodic survival benefits already paid under the policy. In case of death due to an accident, the nominee receives an additional benefit equal to the Sum Assured. This benefit will be paid only if the age of the Life Assured at inception of the policy is 18 years & above.

Survival Benefits

You will receive certain percentage of sum assured as periodic survival benefit during the policy term. The below table provides details on when and how much will be received during the life of the policy.

Bonus

Simple reversionary bonus as percentage of Sum Assured every year provided the policy is in-force for full Sum Assured. Bonuses once declared form a part of guaranteed benefits of the plan. The bonus will be paid in case of maturity or on an earlier demise. The reversionary bonus is declared keeping in mind a long term view of investment returns, expenses, mortality and other experiences. Bonus will be declared at the end of every financial year and will be credited on subsequent policy anniversary. Bonus will only accrue if the first three years premiums have been paid. The bonus at the end of third year will include the bonus declared in previous three years.

Tax Benefit

Tax benefits are available as per the prevailing tax laws. (please read our article related to Insurance TAX)

Surrender Benefit

Firstly, try not to surrender your policy, until it is mature. If you want to surrender your policy, then policy will acquire guaranteed Surrender Value on payment of 3 full years’ premiums and Surrender Value will be paid after the completion of 3 years.

Loan on the Policy

Loan is available from the 4th policy year. The minimum amount of loan available under this policy is Rs. 5, 000 and maximum amount is not more than 60% of the Surrender Value.

Premium rates

A 25 year old opting for Sum Assured of Rs 500000.00 with a policy term 21 years, and premium payin gterm of 15 years has to shell out Rs 10258 per year.

Policy term : 21 years
Perium Paying term: 15 years
Sum Assured : Rs. 500000.00
Age: 25 years

Premium to be paid: Rs. 10258.00 per year
Total Premium paid for 15 years: Rs. 153870

Periodical Survial Benefit:
On the completion of 4th year: Rs 50000.00
On the completion of 8th year: Rs 75000.00
On the completion of 12th year: Rs 100000.00
On the completion of 17th year: Rs 125000.00
On the completion of 21st year: Rs 200000.00

What is good about Flexi Money Back Insurance Plan?

Accidental benefit is in-built
Option to take Loan Against the policy
Bonus from first year

Insurance Agents … Your Opportunity Again

admin — Tue, 13 Mar 2012 04:44:54 +0000

Good News for Insurance Agents…Another Opportunity to grow your business and client base. Today IRDA has come up with a new Draft Policy, to help out our existing Insurance agents and Policy Holders.

As per the draft proposed by IRDA, Insurers can allot ‘Orphan life insurance policies’ & ‘A lapsed life insurance policy’ to other Insurance agents (Allottee Agent) who have worked with the Insurers for 5 years or more.

What is Orphan Life Insurance Policy

‘Orphan life insurance policies’ for the purpose of these Guidelines, means the policies initially effected by an insurance agent whose services were subsequently terminated or removed from the rolls of the insurer excluding those policies to which the effecting agent is entitled to renewal commission under provisions of Section 44 of the Insurance Act. The policies that are considered eligible under proviso to section 40(2A) of Insurance Act also do not fall under the purview of this definition.

Lapsed Life Insurance Policy

‘A lapsed life insurance policy’ for the purpose of these guidelines is a policy on which premium that is due and remained unpaid even after six months from the date of first unpaid premium.

Who is an Allottee Agent

‘Allottee Agent’ for the purpose of these guidelines is an individual insurance agent who is on the rolls of the life insurance company to whom the orphan, lapsed life insurance policies are allotted for the purpose of conservation and rendering the policy services.

Insurance Act Section 40(2A) and Section 44

The Insurance Act has two specific provisions, namely Section 40(2A) and Section 44 which protect the long term interests of agents.

In brief, under provisions of Section 40(2A), lapsed policies which require medical examination prior to revival can be assigned to another agent after giving due notice to the existing agent to revive such policies. In such cases, new agent is entitled to commission of only 50% of what the procuring agent would have been entitled had the policy continued to be in force.

Under Section 44, except on grounds of fraud, an agent who has served an insurance company for a period of 5 years shall be entitled, subject to certain conditions, to renewal commission on such policies if he discontinues his agency. However, agents who have completed 10 years of service with a given insurance company and stops for any reason his/her agency business but does not join another company are entitled to renewal commission on all such policies which they had placed. The commission on policies covered under Section 44 is inheritable and entitled to be passed on to the legal heirs of that agent.

Benefit to the Allottee Agent

As the Allottee agent would none other than you, who has been assigned the policy for follow up with the policy holder. This way, you get new clients and commission.

Equivalent to the commission rates mentioned in the respective File & Use
The remuneration payable only on revival of a lapsed orphan policy on account of arrears premiums received on or after the date of allotment and also on subsequent renewal premiums paid under the policy.
single Premium Life Insurance policies or life insurance policies on which no further premiums are due for payment are not eligible for allotment.

Life Insurance agents look out for this, and check with your development officer. IRDA has requested for feedback from the insurers by 31-March-2012.

Good Luck to All our Life Insurance agents…

Note: When a lapsed policy allotted is not revived / reinstated within 3 months from the date of such allotment, life insurers shall have the discretion to undo the allotment by issuing a formal notice to the Allottee agent and re-allot to any other agent as per the norms prescribed herein.

source:irda