Facts You Should Know
Before Buying Any Insurance Plan:
The duty for
insurance buyer (insured) and the insurance company (insured) to
disclose all relevant facts.
It is a must for
insurance contract to have legal validity.
There t property, right, interest, life or
potential liability capability of being insured and it should be
subject matter of insurance.
The insured must bear a legal relationship to the
subject matter such that he stands to benefit by the safety of
the property, right, interest, life or freedom of liability
It
should be realized the he must stand lose by any loss, damage,
injury or creation of liability.
A person has unlimited liability of his own life.
Spouses are presumed to have insurable interest in
each other’s life.
A person can not insure his brother; sister though
may be dependent on him.
Any application posing unreasonable risk can be
declined by insurer.
Insurance
regulation are governed by
LIC
Act, 1956
(Formation Of LIC, the exclusive amendment for
special privileges for LIC on 1999.)
IRDA
(Insurance Regulatory and Development Authority Act, 1999.
For development of Insurance sector.
Consumer Protection Act, 1986
The act covers private,
public and cooperative sector for all good and services they
render.
Redressal of Public grievances Rules, 1998
( to resolve
all the complaints relating to claims on the part of
insurance company in a cost effective, efficient ad
impartial manner. All insurance company will gives list of
Redressal cell on their documents)
Partial or total rejection of claim
Dispute regarding premium paid or payable in terms of in term of
policy relating to claims.
Delay in settlement of claims
Non Issue of any insurance documents to customer after receipt
of premium.
Income
Tax Act, 1961
Click here for more details of current tax structure and benefit
available in various sections of Insurance plans and other
income revenues.
Insurance plan available in market today can be of four
categories.
Risk Cover
Protection Plan, Term Insurance
Investment
Whole Life Insurance
Endowment Insurance
Health Cover
Annuities
Pension Plans
Term Insurance:
The insured's legal heir gets the benefit of insurance amount
when a person dies during the term of the policy.
The term insurance can be of following types
Level Term Insurance: The premium
and the Insured amount (Sum Assured) never increases or
decreases through out the term of the policy.
Decreasing Term Insurance: The
premium remains same through out the period but the benefit
decreases. Persons taking mortgage loan prefer this plan.
Increasing Term Insurance: Both
Premium and benefit increases periodically. It helps erode
inflations
Renewable Term Insurance: Policy
can be taken again without providing fresh health evidence.
Convertible Term Insurance:
Policy holder can convert this plan to a saving plan without
providing fresh health evidence.
Term Insurance with Return Of
premium: The premium an insured pays for term insurance
return back after expiry of his term on his survival.
Find out the insurance companies providing term insurance.
Whole life Insurance:
These insurance police provide risk cover through out the life.
See the list of Insurance plan available with different
insurance companies
Endowment Insurance:
Pure Endowment: Only if the insured survived
the term the benefit will be payable. But with combination of
term plan it provides benefit either on death or survives of
insured. See the list of Insurance plan available with different
insurance companies
Annuities:
Annuities starts when Life Insurance ends.
An individual or his/her dependants gets a series of periodic
return from the insurer over a number of years.
Immediate Annuities:
It starts as son as the
it is purchased. When a person reaches his retirement age and
has a lump sum to invest he prefers this plan. His legal heirs
continue to get the remaining installment on death of the person
who purchases the immediate annuity.
Deferred Annuity:
Individual pays premium in
installments or in a single payment and the annuity start after
the specified age or term.
See the list of Insurance plan available with different
insurance companies
Health Insurance:
This plans offered some fixed amount
to the insured if they suffered from any specified diseases.
Typically these plicies available to the main policies as Riders
Critical Illness Riders. (Click to see different
rider available with insurance companies.)
Dreaded deases Rider (Click to see different rider
available with insurance companies.)
Major Surgical Assistance Benefit Rider (Click to see
different rider available with insurance companies.)
Accident Disability Benefit Rider (Click to see different
rider available with insurance companies.
Group Life
Products:
Beside Employer-
Employee, any member or subscription based groups of any kind ca
be covered under Group Policy.
Contributory Plans : Employee( insured) pays a share of
premium
Non Contributory Plans: Employee ( Insured) does not
contribute to the premium.
EDLI: Employee Depository Linked Insurance Plan:
Contributes to PPF accounts by Employer
Non EDLI : Contribution increases as the wages of
employee increases.
Group Gratuity Schemes:
On
attainment of retirement , cessesation of service, or on event
of death, employer provide benefit to his employee by
contributing on group gratuity scheme. Gratuity payment as such not come under
preview of Life Insurance. But it is well marketed as Group
Gratuity – cum-Life Assured Scheme. It provides employers to
benefit its employee largely.
Group Superannuation:
A contribution
made by company towards pension benefits of an employee
Group Saving Linked Insurance Scheme( GSLI)
The saving made by each contributor are return with interests at
the time of retirement. On death whatever cover was taken along
with the accumulated saving returned to the heir of insured.
Voluntary Retirement Benefit ( VRS): It is in the form of
Annuity payments till the normal date of retirement.
Group Leave Encashment scheme: It is mandated for
employer to fund the liability with respect to Leave
Encashment.
Group Annuity Schemes
Annuity taken for a group of
people is called Group Annuity
Schemes. The annuities will be paid to directly by the insurance
companies to the pension holder.
Group Credit Term Schemes:
This beneficial for banks, financial institution who lend money
for individual or a group.
Find the
companies providing Group Insurance Policies .