Life Insurance in India

News Flash

Crude futures higher; breaches $50/bbl in day trade
Urgent OPEC meeting to take place in Kuwait, in Feb
IL&FS Trust: Sold 24.52 million shares (3.6%) since Dec-23
47% of the current promoter stake pledged with lenders
Satyam promoters holding down to 3.60% vs 5.13% earlier
India likely to send representative for OPEC meet in Feb
Tata Steel sales decline 14% to 1.07MT
Oct-Dec crude steel output at 1.5MT, up 17% (YoY)
SRSR Holding's stake down to 3.5% vs 5.13% in Satyam
Goldman Sachs cut China GDP forecast to 6%
Saregama India gets into big budget film production
Weak Q3 earnings reflecting current stock prices
Crude futures higher;breaches $50/bbl in day trade
Urgent OPEC meeting to take place in Kuwait in Feb
Strike not to affect ONGC, Oil India output
Strike not to hit operations of most refiners
December exports to fall 1.6% (YoY): Sources
Apr-Dec exports at $130bn vs $113bn (YoY): Sources
India FY'09 export seen at $175bn: NW
Rupee closes at 48.69/$ vs 48.56/$ on Monday
Meet to discuss the demand supply situation: Sources
Meet to discuss situation post Jan output cut: Sources
Meet to take stock of US leadership, eco policy: Srcs
Non-members participating in the meeting: Sources
India too likely to send representative for meet: Srcs
Emergency OPEC meeting to take place in Kuwait
Emergency OPEC meeting to take place in February
Don't expect RBI to put cap on reverse repo: NW
No rationale behind RBI cap on reverse repo: NW
Sensex closes up 60 pts; Nifty lower by 8 pts

Updated: 23/01/2008 | 03:41 PM IST

Personal finance

Getmeinsure

Wednesday, January 23, 2008 (Mumbai)

Blog

Comments:

Read (0)

Post

Rate the story

Term Insurance

Term Insurance is a no frills life insurance plans and covers you for a term of one or more years. It pays a death benefit only if you die in that term. Term Insurance generally offers the cheapest form of insurance. You can renew most Term Insurance policies for one or more terms even if your health condition has changed. Each time you renew the policy for a new term, premiums may climb higher.

Term policies, cover only the risk during the selected term period. If the policyholder survives the term, the risk cover comes to an end.

A Term plan is a pure risk cover plan and it meet the needs of people who are initially unable to pay the larger premium required for a whole life or an endowment assurance policy, but they hope to be able to pay for such a policy in the near future.

Money Back Life Insurance Policy

Money back policies are quite similar to endowment insurance plans where the survival benefits are payable only at the end of the term period ,plus the added benefit of money back policies is that they provide for periodic payments of partial survival benefits during the term of the policy so long as the policy holder is alive.

An additional and important feature of money back policies is that in the event of death at any time during the term of the policy, the death claim comprises full sum assured without deducting any of the survival benefit amounts. The insurance premium of Money Back Policies are higher than Term Insurance Policy because in Term Insurance there is no survival benefits after the expiry of the insurance period. Money Back Policies are good for people who want to Insure their life and also want to some return from their investment's at a later date. The return from investments in Money Back Policies would range between 5% to 8% annually depending on the interest rate movements.

Endowment Insurance Policy

Endowment insurance are policies that cover the risk for a specified period and at the end the sum assured is paid back to the policyholder along with all the bonus accumulated during the term of the policy. The Endowment insurance policies work in two ways, one they provide life insurance cover and on the other hand as a vehicle for saving. They are more expensive than Term policies and Whole life policies. Normally the bonus in calculated on the sum insured but the only draw back is that the bonuses are not compounded. Endowment insurance plans are best for people who do not have a saving and an investing habit on a regular basis. Endowment Insurance Plans can be bought for a shorter duration period.

Whole Life Insurance Policy

A whole life policy continues as long as the policyholder is alive. In whole life insurance plan the risk is covered for the entire life of the policyholder, that is the reason they are called whole life policies.

The nominee of the beneficiary are paid the policy monies and the bonus only upon the death of the policyholder. The policyholder is not get any money during his or her own lifetime, that means there is no survival benefit to the policy holder.

Unit Linked Insurance Policy

A Unit linked insurance plans are a special kind of insurance policies which have a benefit of life insurance and also serves as an investment tool. In a unit linked insurance plan there are two parts in the premium a client pays, the first part of the premium goes into covering the life of the policy holder and the second part goes into investments. Almost all insurance companies give their customers a choice to select the investment mix. They can go for 100% equity funds or 100% debt funds or a mixture of both. In a unlit linked insurance plan the customers are also given choice to switch from one fund to another. The returns from the insurance policy is directly related to the performance of the funds. The only drawback of unit linked insurance plans is its charges for first few years, which varies from 5% to 70% of the premium.

Blog

Comments:

Read (0)

Post

Rate the story