Post on 25-Oct-2014
description
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
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 →
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.
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
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
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.
Related posts
Ten insurance related articles
LIC Jeevan Ankur child plan for the needs of child
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.
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
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
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.
Related Posts
What does cheap insurance means?
How to reduce your auto insurance cost?
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
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
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
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.
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
Related Posts
Bharti AXA Life eProtect online term life insurance plan
LIC Jeevan Ankur child plan for the needs of child
Reliance Life Insurance Money Multiplier Plan
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
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
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
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
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
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
Related Posts
Life insurance plans for individuals by LIC of India
Why Term life Insurance policy is not attractive
LIC Jeevan Anand Plan benefit to insured & nominee
www.investmentsandmoney.com