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FOUR INSURNACE FACTS Insurance protects you and your beloved ones from unexpected financial loss which may change your life to a traffic one. These insurance facts one must know well Contents

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Page 1: Four Insurance Facts

FOUR INSURNACE FACTS

Insurance protects you and your beloved ones from unexpected financial

loss which may change your life to a traffic one.

These insurance facts one must know well

Contents

Page 2: Four Insurance Facts

1. Pure Insurance and insurance with investment

In India the concept of insurance mingled with

investment. So there is a lot of insurance product which

we can classify into three categories as follows. Continue reading →

2. How many insurance policies required for a

family

Proper insurance policies help you to cover all these risks

up to a certain level. Here we can see what type of

policies needed for a family to cover their risk. Continue reading →

3. AEGON Religare iTerm Plan, high life cover low

cost

AEGON Religare iTerm plan is an online term life

insurance plan suitable for the life insurance need of a

person who wishes to secure his or her family Continue reading →

4. Postal Life Insurance offer Low premium high

return

Postal Department of India’s Postal Life Insurance offers

high bonus with lowest premium which handles single

insurance and group insurance policies Continue reading →

Page 3: Four Insurance Facts

Pure Insurance Vs insurance with investment

You must have heard a lot of insurance policies such as Term life insurance, whole life insurance,

endowment insurance, money back insurance plan, Unit linked insurance plan, retirement insurance plan and so on. These terms may make you confused a lot and you may wonder which

schemes to be selected for your insurance needs. Insurance agents also made you more confused by narrating advantages of each type of insurance

schemes. But you must have a general knowledge about each type of insurance schemes.

Page 4: Four Insurance Facts

In India the concept of insurance mingled with investment. But in foreign countries, people do not

like to mix up insurance and investment. Once I posted a query in a forum. The query was “Can we mix up insurance and investments? Is it profitable?” But all the replies I got were against

mixing up insurance and investments. Insurance is for getting enough coverage for the expected loss and the concept of investment is growing our

wealth. Insurance compensates our monetary loss while investment increases our money or wealth.

But in India it is considered that insurance is a

product which helps investment also. So in India insurance companies issue a lot of insurance products mixed with investments. We can classify insurance into three categories as follows:-

Insurance which gives complete protection: - These types of insurance are pure insurances which have no investment factorin it. This

insurance gives complete coverage of the monetary loss of the damage as per the terms and conditions of the policy. This type of policy does

not give any monetary benefit, if the insured person or insured material overcomes the insured period. Pure term life insurance, home insurance, auto insurance, health insurance etc are

under this category. Normally this insurance period

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is one year and we should pay renewal premium every year and we will get insurance protection till

the end insurance period and this period will be extended for another year after paying the premium. Pure term life insurance policy is one of these types of life insurance policy. This insurance

policy has comparatively low premium (cheap insurance policy) when compared to insurance policy which has investment factor.

Insurance policy which gives protection and investment: This type of insurance policies cover monetary loss and at the same time a return for

your premium in between or at the end of the insurance period. A large portion of life insurance policies are under this category. Endowment policy, money back policy, whole life insurance

policy, unit linked insurance policies etc. are gives insurance protection and a return for your premium amount. As per the nature of the policy

we have to pay high premium than pure insurance policies. Whole life insurance policy gives insurance cover till the end of your life, all other insurance

policies gives life cover till the policy term (for a stipulated period) only. When the investment factor is high the premium also will be high.

Insurance policy which gives investment

only: There are certain insurance policies give you

Page 6: Four Insurance Facts

investment only, no insurance protection. Retirement insurance plans are coming under this

category. We should invest a stipulated amount as premium for a certain period and at the end of the insurance period or retirement of the insured, the insurance company gives you a regular income

(monthly, quarterly, half-yearly or annually) as per the terms and conditions of the policy. Normally the insurance company invests the accumulated

money in an annuity which gives you a regular income.

You can choose from any of these insurance

categories or altogether, but when you join an insurance policy learn all the aspect of the policy. Go through the prospectus and terms and conditions of the policy and compare same type of

policies with different insurance companies. Some websites also helps you to compare insurance products of various insurance companies. Do your

home work well and choose a suitable plan to secure the future or you and your beloved ones.

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Page 7: Four Insurance Facts

How many insurance policies required for a family?

Family is the basic unit of the society. It is an

unavoidable unit for every community, society or nation.

Normally family consists of Father, Mother and children.

Some families also have grant parents and other

immediate relatives. Family needs income to survive.

Without money nobody can survive. For all requirements

you need money. We can classify families with high

income, low-income and middle-income on the basis of

annual income of the family. There is one or more bread

earning members in each family. With the income of

these bread earning members the family meet all their

monetary requirements.

Page 8: Four Insurance Facts

But today’s world is a risky world. We cannot predict

what type of risk we may face every time. Some of these

risks may steal the life or working ability of the bread

earners of the family. Some other type of risks brings

monetary loss to the family. Whatever is the risk we have

to cover those for the smooth running of the family? We

cannot prevent or control most of these risks. Only thing

we can do is to compensate the monetary loss of these

risks. Proper insurance policies help you to cover all

these risks up to a certain level. Here we can see what

type of policies needed for a family to cover their risk.

We must completely be aware about possible risks and

which policies cover what type of risks, how much

premium we have to pay for each type of risk cover and

how can we make claim for each type of risk etc. We

have to select policies as per our income and financial

needs. Normally high income people have high financial

requirements and low-income people have comparatively

low financial needs. So insurance policies also choose as

per the financial needs and income of the family.

Normally following insurance policies required for a

family

Life insurance policy: Life insurance covers the life of

the insured person. The life of the bread earning member

of the family can cover with this life insurance policy. The

life cover or sum assured will get to the nominee or

dependents or the insured person, if the insured person

dies or getting disabled. An adequate insurance cover will

solve the monetary loss which happened through the

Page 9: Four Insurance Facts

death or disability of the bread earning member of the

family.

Accidental insurance policy: An accidental insurance

can secure the financial future of the family even after

the death or disability of the bread earner through an

unexpected accident. This is done with the life insurance

with a small additional premium.

Medical Insurance policy: One of the costly financial

needs of a family is the medical treatment of any of the

family member. A good medical insurance

or mediclaim policy can secure the monetary loss through

an unexpected illness of any of the family member. This

medical insurance policy not only compensates the

treatment expenses but also ensure good medical

treatment for each family member. An adequate medical

insurance is necessary for each family.

Auto insurance or car insurance policy: Auto

insurance secures the financial loss due to vehicle

accident. This insurance covers the repair cost due to

accident and at the same time it covers the financial loss

of the third-party who has a financial loss due to the

accident of your vehicle. So auto insurance compensates

the repair charges and compensation of the party who

met with accident. But you must be care and should keep

all the traffic rules even after getting an adequate vehicle

insurance policy.

Home insurance: A good home insurance policy protect

you from the financial loss due to theft, fire or any

natural calamities. The insurance company compensates

Page 10: Four Insurance Facts

you for the financial loss due to any of these unfortunate

events happened to your assets.

Pension or retirement policy: A good retirement policy

keeps you from the financial inadequacy due to your

retirement. If you have an adequate retirement policy

you can meet all you financial requirements yourself even

after your retirement. You need not depend on others for

your monetary needs even after your retirement.

The abovementioned insurance policies secure the

financial future of your family even after any unfortunate

events happened to you or your family. Always be careful

for adequate insurance cover and you must keep away

from all type of risks even after getting adequate

insurance. You might be heard that “prevention is better

than cure”. But we must be away from all type of

infections even after proper vaccination. Likewise you

must take all care to be away from all risk possibilities

even after taking adequate insurance policy. A monetary

compensation could not give the love and care to your

loved ones. But take adequate insurance to cover any

unforeseen risks.

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Page 11: Four Insurance Facts

AEGON Religare iTerm Plan, high life cover low cost

Pure term life insurance gives real insurance protection

for your life with lowest premium. Now almost all

insurance companies provide term life insurance plan. A

pure term life insurance plan gives high life cover with

least annual premium and it compensate financially the

untimely death of the insured. Term life insurance plan is

the best life insurance plan to protect the financial future

of the dependents of the insured. If planned well, the

high life cover or sum assured, say Rs. 50 Lakhs, 1

Crore, 2 crore etc. are enough to protect the financial

future of the family of the insured.

AEGON Religare iTerm plan is such a term life insurance

plan which is suitable for the life insurance need of a

person who wishes to secure his or her family. AEGON

Religare iTerm plan is an online term life insurance plan

which allows covering the life of the insured till he or she

reach the age of 75. The latest form of the term life

Page 12: Four Insurance Facts

insurance plan has a built in terminal illness cover and

has three rider options.

AEGON Religare iTerm Plan

The important features of AEGON Religare iTerm Plan are

(1) Pure Term insurance plan (2) Inbuilt terminal illness

cover (3) Accidental death benefit rider (4) Waiver of

premium on critical illnes rider (5) Women critical illness

rider (6) Longer term policy – till the age of 75 years and

(7) Online process. With all these features the Term life

insurance plan has a separate entity from other term life

insurance plans.

Minimum and Maximum Sum Assured: The minimum

sum assured of AEGON Religare iTerm Plan is Rs. 10,

00,000 and there is no limit for maximum sum assured.

Minimum and Maximum Age of entry: Minimum age

of entry for the AEGON Religare iTerm Plan is 18 years of

age and the maximum age of entry is 65 years.

Maximum Maturity Age: The maximum maturity age of

the online term life insurance plan is 75 years.

Minimum and Maximum term: The minimum

insurance term of the AEGON Religare iTerm Plan is 5

years and the maximum term is 40 years or the age of

75 years. A person can insure his life till he reaches the

age of 75 years.

Premium payment term: The premium payment term

of the online term life insurance is equal to the policy

Page 13: Four Insurance Facts

term, for example if a policy is for 30 years the premium

payment term is also 30 years.

Frequency for premium payment: There are two

options for the payment of premium. One is annual

premium payment which allows you to pay premium

every year of the policy term and the second one is one

single premium.

Premium Amount: The premium payment of the

AEGON Religare iTerm term life insurance plan for a 25

year old non smoking man for a life cover (sum Assured)

of Rs. 1 crore is as follows. All applicable taxes will be

extra with the following amounts.

Sum Assured : Rs. 1, 00, 00,000

Age of Entry : 25 years

Term of insurance : 35 years

Annual premium : Rs. 6400

Single premium : Rs. 1, 46,600

If the terms of insurance till the age of 75 years the

annual premium for the above case will be Rs. 7000 per

year and for single premium option, the premium amount

will be Rs. 2, 87,100.

For a smoking male person the annual premium for 35

years will be Rs. 9300 per year and for a 35 year old non

Page 14: Four Insurance Facts

smoking female the annual premium will be Rs. 5600

only for a sum assure of Rs. 1 crore.

Terminal illness benefit: The AEGON Religare iTerm

term life insurance plan is coming with built in terminal

illness benefit and if the insured is diagnosed with a

terminal illness 25% of the base sum insured up to a

maximum of Rs. 1 crore will be paid and the base sum

assured will be reduced to the amount paid as terminal

illness benefit.

The death benefit: The Religare iTerm term life

insurance plan cover all form of death including terrorist

attack, but excluding suicide during the first year of

policy or within one year of reinstatement of the policy.

Tax benefit: The premium payable for the

AEGON Religare iTerm term life insurance plan is

exempted from tax, at the year at which it is paid, under

section 80C of the income tax act.

Accidental death benefit rider: The accidental death

benefit rider of the Religare i Term plan gives the

nominee and additional amount (selected rider amount)

will be paid with the sum assured.

Waiver of premium on Critical illness rider: This

rider allows you to waive premium after diagnosing

critical illness such as Cancer, Coronary Artery Bypass,

Heart Attack or Stroke, but the policy will be active till

the end of its terms.

Page 15: Four Insurance Facts

Women Critical Illness rider: This rider especially for

women insured, allows:-

(1) 5% of the sum assured will be paid out if the insured

is diagnosed Malignant Cancer of the Female Organs.

(2) 2.5% of sum assured for pregnancy complications &

Congenital Anomalies in Newborn Child (only if the

woman insured is at the age of 35 years or below).

As a whole the AEGON Religare iTerm online term life

insurance plan is one of the best term insurance plans

which satisfies the financial needs of the insured even if

he or she is alive, but suffering from critical illness and

also satisfy the financial needs of the family of the

insured if death of the insured is happened within the

policy term.

Calculate Premium with AEGON Religare iTerm term life

insurance plan Premium calculator for all options and

ages

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Page 16: Four Insurance Facts

Postal Life Insurance offer Low premium high

return

Postal Department of India’s Postal Life Insurance offers

high bonus with lowest premium. Postal Life Insurance

started on 1st February 1884 and still continues with

lower premium and high return offer. The 128 year old

Life insurance scheme from the Postal Department of

India is for state and Central government employees,

employees of central and state run companies,

universities and government aided institutions;

Nationalized banks local bodies, officers and staff of the

Defence services and Para-Military forces etc.

Postal life insurance handles single insurance and group

insurance policies. The postal life insurance scheme offers

comparatively better returns than other insurance

Page 17: Four Insurance Facts

products. Postal department offers sum assured and

accumulated annual bonus at the maturity of the policy

and the announced annual bonus is Rs. 70 per Rs. 1000

sum assured for their endowment policies, since 2003.

Types of Postal Life Insurance Policies

Postal life insurance offer 7 types of life insurance policies

and each type of policy has its own peculiarities and

features.

Whole Life Assurance (SURAKSHA)

Whole life Assurance or Suraksha policy offer sum

assured and accrued annual bonus payable to the

nominee or legal heir after the death of the insured. This

policy can convert to Endowment Assurance Policy after

one year.

Minimum Age of Entry : 19 years

Maximum Age of Entry: 55 years

Minimum Sum Assured: Rs. 20000

Maximum Sum Assured: Rs. 10 Lakhs

Endowment Assurance (SANTOSH)

This policy offer sum assured and accrued bonus till the

insured attain predetermined age of maturity. When

unexpected death happened to the insured the nominee

or legal heirs get the sum assured and accrued bonus.

The minimum and maximum age of entry and minimum

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and maximum sum assured are same as Whole Life

Assurance policy.

Convertible Whole Life Assurance (SUVIDHA)

Convertible Whole Life Assurance Policy is also like whole

life insurance policy and can convert to Endowment

Assurance after five years. But the age of such

conversion should not be more than 55 years. If such

conversion is not done within 6 years, the policy will be

treated as Whole Life Assurance Policy. Minimum and

maximum age of entry and minimum and maximum sum

assured are same as Whole Life Assurance policy.

Anticipated Endowment Assurance (SUMANGAL)

Anticipated Endowment Assurance is named as

SUMANGAL is a Money Back Policy with maximum sum

assured of Rs. 5 Lakh. Periodical Money Back is the main

feature of this policy and suitable for regular periodical

policy. This Anticipated Endowment Assurance policy is

for 15 years and 20 years term.

For 15 years policy the money back is given after 6

years, 9 years and 12 years at the rate of 20% of sum

assured and at the maturity (End of 15th year) the

remaining 40 % sum assured and the accumulated bonus

will be given.

For 20 years policy the money back is given after 8

years, 12 years and 16 years at the rate of 20% of sum

assured and at the maturity (End of 20th year) the

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remaining 40 % sum assured and the accumulated bonus

will be given.

But if the unexpected death of the insured is happened

before the maturity the full sum assured (without

deducting the interim money paid as money back

scheme) with accumulated bonus will be paid to the

nominee or legal hires of the insured.

Joint Life Assurance (YUGAL SURAKSHA)

If any of the spouses is eligible for joining postal life

insurance policy they can join this joint life insurance

policy which cover the life of both the couples with one

premium for both lives. All other features are same as

Endowment assurance policy.

All these policies required compulsory medical checkup

for a sum assured over Rs. 1 Lakh. But for Anticipated

Endowment Assurance and Joint life insurance policy

medical checkup is compulsory for any amount of sum

assured.

Scheme for Physically handicapped persons

A Physically handicapped person also can join any of the

abovementioned postal life insurance policies. But

medical examination is compulsory to determine the

nature and extent of handicap. The premium may be

little bit high according to the nature of disability.

Children Policy

Page 20: Four Insurance Facts

From 20th January, 2006 the postal life insurance started

Children Policy to provide insurance cover for children.

Maximum two children of a family can insure under this

Children Policy.

Minimum Age of Child: 5 years

Maximum Age of Child: 20 years

Maximum Sum assured is Rs. 1 Lakh or the sum assured

of the main insurance policy holder whichever is less. The

age of main policy holder must not be more than 45

years when join the policy. The premium will be waived,

if the death of main insurance policy holder occurred

within the policy term and the full sum assured and

accumulated bonus will be paid to the children when the

term of the policy is completed. There is no loan facility

available for children policy. No health check up of the

child is required, but the child must be healthy at the

time of opening the policy. Child policy also gets bonus

just like endowment policy.

Generally Post office life insurance is helpful for

government employees to getting insured and at the

same time they can yield a good return than any other

insurance policies. Postal life insurance has another set of

policies named Rural Postal Life Insurance policy open for

all. Rural life insurance are 6 type of polices such as (1)

Whole Life Assurance (GRAMA SURAKSHA) (2)

Convertible Whole Life Assurance (GRAMA SUVIDHA) (3)

Endowment Assurance (GRAMA SANTOSH (4) Anticipated

Endowment Assurance (GRAMA SUMANGAL) (5) GRAM

PRIYA and (6) Scheme for Physically handicapped

Page 21: Four Insurance Facts

persons. These policies open for all and can purchase

from all post offices all over the country. Post office does

a good service to people through these insurance policies

and all other services they are doing.

Postal Life Insurance offer Low premium high return

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Page 22: Four Insurance Facts