Bharti AXA Life has recently updated its online term insurance product with many features. Bharti AXA is one of the first insurance company has taken steps on selling the term insurance products. eProtect is launched by them 6 months back and they have recently changed some of the features in the policy and the premium. Within 6 months of launch, we are currently amongst the top five players in the online term market.

If you are looking for the pure term insurance policy, Bharti AXA Life eProtect should be in your consideration list. This review focuses on the product’s premium, term and basic idea on the term insurance. If you have any thoughts on buying the term insurance, please write it in the comments section. If you want to receive more reviews, please subscribe to our future newsletters here.

Importance of term insurance

In India, awareness towards term insurance is very low compared to other countries. The reason is, most of the companies selling the insurance as the investment products to the customers. Most of the customers confused whether insurance is for protection or an investment. If you are more concerned about your family, then you must first think about buying a term insurance plan with at least Rs. 1 crore sum assured (it varies based on your yearly income).  Also the principle rule is that the term insurance has to be bought for the only working member in the family.

• Why the insurance claims are rejected?

If you pay any premium for term insurance, you will not receive any money back to your hands. It makes customer feel like its not useful for them. We cannot predict what would happen to our future, it is premium for protecting our loved ones from the uncertain things which we never like or expected in our life. But, if you really love your family and you are only earning member, please protect your family with a adequate term insurance cover.

• What is Term Insurance?
• Different Types of Life Insurance

Online term insurance plans and advantages

In the recent development, most of the insurance companies come up with the online version of term insurance products. It eliminates the intermediate brokers to buy an insurance policy. In India, insurance products are sold only through the agents. Insurance companies has to spend lot of money for marketing the product and pay the commission to the agents. All these expenses will be added to premium of your policy.

When they sell policies online, the expenses would be very less and the premium cost would be very low compared to buying through agents. Also it is more convenient for the customers to process the payment and get the policy from the company. Only few companies offering the online term insurance policies.

• Aegon Religare Term Life Insurance Plans – Review

Bharti AXA Life eProtect

What makes Bharti AXA Life eProtect is standing out from the other policies. The following are some of the notable advantages of this product:

• You can buy a lump sum cover (Rs. 1 crore) for very low premium Rs. 6100.
• It is sold online.
• There is no maximum cover specified. You can buy maximum amount you want to protect your family.
• Minimum sum assured is Rs. 25 lakhs
• Claim settlement ratio for Bharati-AXA for the year 2010-11 is 87.17%.

The above points are sufficient to choose this policy. The below table is taken from their website which explains the premium about for a Rs. 1 crore policy.

If you are 25 years of age and want to buy a 10 years policy, the premium is only Rs. 6100. It is very low compared to any other companies. Another good factor is the claim settlement ratio for Bharti AXA. This is encouraging factor for you.

Conclusion

If you are looking for high coverage of amount more than Rs. 1 crore or lower amount with the low premium cost, I would strongly recommend to buy this product. Also compare this product with my another review Aegon Religare term life insurance plans. If you have not purchased any of the term insurance plans, please consider buying a new policy. If you have questions on choosing a good policy, please post it in the comments section.

It is for protecting your family!. It must be in your first action item for the new year. Please share your views on buying this policy and write it in the comments section. If you are interested in receiving the future emails, please subscribe here.

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Santosh, 24, was checking his old documents while re-arranging his documents. He found an old insurance policy document which is has totally forgotten to pay the premium every year. The last unpaid premium was four years back. He felt the money went into drain and throw away the old documents. That is not correct, still he can revive the policy and get the benefits from the revived insurance policies.

• Buy: Plan your insurance : Life and Health

He is not the only one who does this mistake, many in our country mistakenly forget the insurance policies and leave the money invested to go in drain. The reason why it happens is that they buy insurance policies while filing the income tax returns and forget that after investing in that. When they realize the mistake, it would have been late. But, it is not always late, you can still revive the policy.

also read:

• How to revive lapsed LIC policy?
• Aegon Religare Term Life Insurance Plans – Review
• What is Term Insurance Plans?

Grace Period for premium payment and Revival

Insurance policies has the grace period of one month for the premium payment. That means you can pay the insurance premium after one month from the due date. If you are not paying in the grace period, then the policy will lapses and they will not be any claim for your policy if any eventuality happens in your life. In this case, the policy is inforce for three years.

Yet, he can revive his policy within five years from the unpaid premium amount. What he needs to do is contact the insurance company and submit a declaration of health from a doctor recognized by the insurance company, then pay the unpaid premium amount with the late payment penalty.

The benefits of reviving the policy would be, the same premium amount when he bought the policy. If he buys the new policy, the premium amount would have been higher. Also all other benefits like bonus, guaranteed returns will be same as when the policy is purchased. Also, he can avail the tax exemption under the section 80c.If he he is not reviving the policy, he will loose the premium paid if the policy is less than 3 years, otherwise he will get the accrued bonus at the time of policy maturity.

How to avoid this situation?

In many instances, this happens because of the travel to other countries and job pressure to forget the events.  To avoid that, you could follow these instructions:

•  Setup ECS facility to pay the insurance premium. In this way you need not remember the date for the insurance renewal.
• Set the remainder notifications in your calendar to remain you before one month of the renewal.
• Update the correspondence address in the policy to get the postal communication from the insurance company.
• Update the mobile number to receive the SMS alert on the policy renewal.

If you are already having any policy without the premium payment, please check whether it can be revived. Also set the reminders for the policy renewals. If you have any experience with any of the insurance companies, please post it in the comments section.

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As we know that term insurance (What is term insurance?) is pure form of insurance and it comes with the maximum cover for your life. But, it doesn’t offer any attached riders while taking the policy. In our previous article we have understood what is life insurance riders?. The riders provide the additional benefits to the policy holder in case of unexpected things happened in his life. In this article I will explain the different types of riders in the life insurance. These riders are not only for term insurance, any product which offers the life insurance. Subscribe to our future articles here.

Types of Life Insurance Riders

Accidental Death

This rider is taken to get the additional benefits for the family if the policy holder is died in the accident. Normally the amount the family will get is double the amount of  full coverage. For example, if the policy holder insured for Rs.500000, in normal cases his family will get only Rs.500000 after his death. But, if death is due to an accident, they will get Rs.1000000.

This rider is very useful and it gives the more protection to the family for the unexpected loss of family member. If you are a person who has dependents and travel more for your business, this rider is must for your life insurance.

Read: Difference between Investment and Insurance

Permanent Disability

In case if policy holder become permanently disabled, then this rider would give him the benefits. This rider is mainly for who survived in the accident and become permanently disabled. Thus, depending on the disability of the body or the part which has been severed, a part or whole rider sum assured is paid to the customer as a survival benefit, subject to terms and conditions.

For example, Mr. X has taken the life insurance for Rs.1000000 with accidental death benefit of Rs.500000. If he met an accident and survived with permanent disability, then he would not get any benefits if he has not applied for this rider. Policy holder can apply both, accidental death and permanent disability in a single rider. It is available with most of the insurers.

Critical Illness

It is another survival benefit to the policy holder. The definition for critical Illness would vary for each insurer. If the policy holder affected with serious disease and which is under the category of critical illness, then he would get the benefit if he is taken this rider with the life insurance policy. Since it is survival benefit, this would help the policy holder to meet the medical expenses.

The difference between medical insurance and the critical illness rider is that, in this rider, the policy holder would get the sum assured without considering the medical expenses.

For example, Birla SunLife Insurance covers the following diseases under this rider:

1. Heart Attack
2. Cancer
3. Stroke
4. Major Organ Transplant

The rider benefit will also cease when a claim is paid.

Waiver-off Premium

In cases where the insurer not able to pay the premium due to his Illness, permanent disability or any other injury which result in loss of income to pay the premium. In this cases, he/she need not pay the premium and the policy will not be lapsed. This rider is very useful when the premium amount is very high.

Under Section 80C, premiums up to Rs. 100,000 are allowed as a deduction from your taxable income each year.

Under Section 10(10D), the benefits you receive from this plan are exempt from tax.

Summary

The above are the four important riders coming with the life insurance products. It is very important that taking these riders with little extra amount would make big difference for you or your family when there is something unwanted disaster happened in your life. When you are taking the riders, please read it carefully to understand whether the rider would meet your needs. Because, if there is small mismatch then insurance company will reject the claim. If you have any doubts, please post it in the comments section.

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Earning member of the family must have the life insurance policy to protect his family. But, the worrying factor is they are not spending enough time to understand the need of insurance and whether they are wasting money in the name of insurance. There are number of ways to save money while paying the premium for the insurance policies.

This article presents few tips for the policy holders to save the premium amount with little cleaver ideas. It is important to take the life insurance for every one and have the maximum cover to protect your family. As we know, while choosing the right insurance we normally look for the company which provides the maximum cover with the lowest premium. This article explains one small advice to the policy holders how choosing the frequency of the premium payment makes difference in the saving. If you have any doubts, please post it in the comments section. Subscribe to our future articles here.

also read:

• Top 5 rules to reduce the Insurance Premium
• What is term insurance plans?
• Late claims can not be rejected

1. Yearly Premium Payment

All the insurance companies come up with the monthly,quarterly, half yearly and yearly premium payment options. One would think that why would I pay the premium upfront of the year?. It is wise to pay monthly. But, the fact is that you will save month while paying as the yearly premium. Next time when you are buying an insurance policy, ask your agent about the monthly premium and the yearly premium, you will find the difference.

2. Single Premium

If you are wealthy and have enough money to pay your insurance premium in the single installment, it is always good idea to do that. You would save lot of money and need not remember the premium due date and pay every year. This option will not be suitable for every one because the single premium amount will be huge task for the middle class family.

3. Don’t Split the Policies

It is not good idea to take many policies to increase the coverage amount. For example, this year you have taken a policy for Rs. 3 lakh, then after three years again you are buying another policy for Rs.5lakh amount. If you analyse the premium payment for both the policies, it would make difference if the both the policies would have been clubbed together. It is good that you always have one policy with the highest coverage amount instead many policies splitting the coverage amount.

Summary

I hope this article would have given some basic idea to choosing the premium payment frequency. After reading the article, go through your policies and find out if you could have saved money money on the premium payment. If you have any doubts, please post it in the comments section.

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In this post I am answering one of the query I received through Ask Your Questions.

Question:-

I have been holding a LIC policy since 2001. I will be migrating to USA from the next year. Can I continue the LIC policy in abroad?

Answer:-

Yes. You can continue the policy when you are outside India. You can either send the premium from abroad or using the Indian bank. Also you can use the online premium payment.

The sums payable under the policy on maturity or death will, however, be paid in Indian rupees, in India.

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Term Insurance plans are the purest insurance plans available in the market. There are different types of insurance plans in the market like Term Insurance, Endowment Insurance, ULIP, etc. Every type has its unique features. I have already written one article about the difference between insurance and investment. So, it is good to select the suitable insurance plans to protect your life and family. This article presents the key facts about the term insurance plans. If you have any doubts post it in the comments section. Subscribe to our future articles here.

Term Insurance Plans

The following are the key facts about the term insurance plans.

• Term insurance plans are the purest form of insurance plans. It will cover the pure risk of your dying.
• In the event of your death, your nominees will receive the assured amount.
• You will not get any benefit, if you survive the policy term. As already said, the purpose of this policy is to protect your family from your death.
• The premium for term insurance policy is very low compare to other insurance policies. For example a 30 year old person takes 20 years policy for the sum assured of Rs.500000. His premium will be just Rs.1500 per year.
• Premiums are payable every year.
• Generally maximum entry age of this policy is 50 years.

Importance of taking Term Insurance

In our country there is very little knowledge on the term insurance and its benefits. Another reason why people not shown interest is, they have the wrong assumption of seeing insurance as the investment and looking for the decent returns at the end of tenure.

If that is the case, one should not think about taking the insurance. There are lot other products available in the market to earn good returns. But, when you are no more, who will support your family or give the needed financial support. Taking term insurance is like sacrificing some money to save your family if you are not in this world any more.

Anytime did you think that when you are taking the car insurance, did you get the returns at the end of year?. But, you are benefited when you met accident. Even we are protecting our vehicle by taking insurance, why not save our family by taking the term insurance?. If you are the only earning member in the family, first thing you have to take the term insurance with maximum coverage. Spread this awareness to your friends.

Don’t confuse with health insurance and term insurance. Health insurance pays you when you have illness on you and your family. Term insurance pays your family when you are died.

Summary

It is the purest form of insurance cover for your family. If you are thinking about protecting your family from your death and not looking for any returns, it is the suitable policy for you. Hope this article helped you to understand the importance of term insurance policy. If you have any doubts post it in the comments section.

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Introduction

In this article I will be writing about the new policy introduced by the LIC last month, which can be taken as the top up policy on the another existing policy. This article presents some of the key facts on that new policy. If you have any doubts please post it in the comments section. Please subscribe to our future articles here.

LIC Jeevan Nischay

• Entry age for this policy is 18-50
• Policy period is 5/7/10 years
• Policy amount is Rs.10000 – Rs.10lacs
• It is the single premium policy. You have to pay at the time of taking this policy. There is no more premium to be paid.
• If premium amount is Rs. 25,000 or higher, the policyholder would receive a higher maturity sum assured due to available incentive.
• Last date for taking this policy is 31-03-2010.
• This policy can be taken only those who already have the LIC policy. Only for the existing policy holders.
• Loan facility available under this policy.
• On death during the first policy year, five times the single premium is payable.
• You can invest only maximum of 10% of your total assured amount on all LIC policies. For example if you have two insurance policy with total assured value of Rs.500000. You can take LIC Jeevan Nischay policy up to Rs.50000 only.
• It is like the top up policy for the existing policy.
• In this policy, there is not much return on the maturity. Think twice before taking this policy.

Summary

This policy will be suitable for those who want to increase their assured amount by taking more policy, this could be the another option. But, there is not good return on this policy and coverage also less. Hope this article is useful. Thank you for reading!!! If you have any doubts please post it in the comments section.

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This article explains how to revive the lapsed insurance policy in case of failed in paying the premium. It is one of the most common problem for the policy holder, they may miss the due date for several reasons and tend to revive the policy later. It involves certain procedures and penalty for reviving the insurance policy. The intention of this article is to bring those important facts for our readers. Also, read our previous article on how to pay the premium online?. I would like to hear feedback from you after reading the article. Please subscribe to our future articles here.

Revive Insurance Policy

As we know that there is one month grace period for the insurance premium due. You have to pay the premium before end of the grace period to avoid the policy lapse.

• If the premium paid with in six months, you can pay the premium with 8% interest to revive the policy before six months of time. It is applicable for those who paid the premium up to three years without fail.
• If you can not pay the premium more than six months, there is more procedure to revive the policy. You can revive the policy with in four years. Follow the steps to revive the lapsed policy:

• • You have to pay the unpaid premiums with high interest rates 12-18% with Rs.500 penalty.
  • Take a medical check-up and submit to the insurance company. You will have to bear the cost for the medical check-up.
• Once the period during which revival is possible is over, the contract is terminated and the fund value is paid to the insured after deducting charges.
• If you have any lapsed policy, please revive it instead of taking the new policy. It cost lesser compare to taking the new policy.

Summary

The above points clearly explained the importance of paying the premium due on time. You can choose the best suitable payment mode for you to pay regularly. If you have online account, paying premium through online is much simpler. Hope you have enjoyed this article. If you would like to receive more tips on insurance and tax savings, get free email updates from here.

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In my previous article I have written about the proposal on removing the insurance agent commission by D Swarup, the chairman of the Pension Funds Regulatory & Development Authority (PFRDA). Also I have mentioned that agents are the key to getting the more business for the insurance companies and they are the key driving factor. As per the statistics, still 90% of the Indian population without the insurance policies. We should encourage the insurance agents by paying more commission.

In the same way Insurance Regulatory Development Authority (Irda) is thinking and will dispose the proposal. They are not very much interested on removing the commission for the agents.

To reiterate that commissions are the best way, a national-level rally of insurance agents is scheduled for December 2, 2009, organised by the Life Insurance Agents Federation of India.

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In this article I will be writing about the one of the popular child insurance policy from the LIC. It is Komal Jeevan. It has many advantages compare to other insurance policies, this article presents the few facts related to the polciy. If you have any doubts please post it in the comments section. Please subscribe to our future articles here.

Komal Jeevan

LIC’s Komal Jeevan is the best suited policy for your children. It is money back policy and provides good support for your child in the future when he/she wants to go for higher studies or doing any business. If you are taking the policy of Rs.100000 as the sum assured, yearly premium will be Rs.7281. It is the minimum amount. Depends on your capacity you can increase the sum assured value. The following are the key facts about the Komal Jeevan child policy:

1. This policy can be taken for the child with 0-10 years.
2. You have to pay the premium untill he/she attains the 18th age.
3. Policy will be matured at the age of 26.
4. Sum assured will be paid in the installments as follows:
   • 20% on 18th age
   • 20% on 20th age
   • 30% on 22nd age
   • 30% on 24th age
5. At the age of 26, he/she will get the lump sum amount on maturity of the polciy. It may vary based on the many parameters.
6. Minimum premium is Rs.7,281 per year.

Summary

I would recommend this policy for your child’s future. It is preferred by the most of the parents because it gives the money support while they are studying and lump sum at the age of 26. Hope this article is useful. If you have any doubts please post it in the comments section.

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In this article I will be writing about the way how you can pay the LIC policy premium using the SBI credit cards. In my previous article I have explained how to pay the LIC policy online. It provides the option of paying only from the debit cards. In case if you want to pay it from the SBI credit cards, this article explains you with the step-by-step approach. Hope this article will be useful for those who want to pay the LIC using SBI credi cards. It is not for any other credit cards. Only for the SBI card’s bill pay option. If you have any doubts please post it in the comments section. Subscribe to our future articles here.

LIC Premium Using SBI Credit Card

Step 1 : Login to SBI Card Website

Open the website http://www.sbicard.com. There you will find the option to navigate to the bill pay section. In the below image I have marked that area in the red color.

Step 2 : Register for the Bill Pay Service

First time user has the register with the service. Click on the option Register & Pay to get started.

Step 3 : Open Bill Pay Application

It will take to the login page for the Bill Pay section. There you click on the Register link and move to the registration page.

Step 4 : Submit the registration form

Fill all the details and register it. You can use these details to login to application.

Step 5 : Login to Bill Pay Application

Once login to the page, you can add the biller types and make the payment. Here we will see how to add the insurance premium as the bill pay. Click on the Register & Pay link.

Step 6 : Search for the Biller Name

As shown in the below screen, you can pay the insurance premiums for the listed insurers. Select the option and proceed.

Step 7 : Add LIC as the Biller

Fill the insurance details and proceed. It will be added into the biller list.

Step 8 : Pay the LIC Premium

Note that, the payment option will be enabled only when the payment is due. For LIC, it will be enabled on the date of renew, and we can pay with in next one month of time.

Summary

I hope this article will be useful for those who want to pay the insurance premium using the SBI credit card. The process may be different for other credit cards. I will write about other credit cards when I have chance to use the service. Thank you for reading this article. If you have any doubts please post it in the comments section.

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Introduction

It is important to know about the child insurance policies. If you are parent for one or more children, you must seriously consider taking policy for them. This will help you to spend money for their education, marriage, etc. There are numerous policies available for the children. You should e very careful while selecting the policy. In this article I will explain few points about the child policy. In my future article I will elaborate more on choosing the right policy for your child. If you have any doubts please post it in the comments section. Subscribe to our future articles here.

Child Insurance Policy

• In child insurance plans, parents will be the policy holder and beneficiary will be the children. Most of the policies ranging between 10 years to 25 years.
• There are two types of policies in the child insurance. One is endowment and another one is ULIP. Endowment policy is less risk and less income. But, in the ULIP type of policy there is more risk and more income.
• In the child insurance policies, administration charges and broker commission will be higher than the other policies.
• There is tax exemption for the child insurance policy under section 80c of the Income Tax Act 1961. Also there is no tax for the accrued bonus or any  other money received from the insurance company.
• First three years you have to pay the premium before the due date. After that there is paid up value in your policy, so you can pay the premium with few weeks delay.
• If there is death of child, insurer will pay the amount seeing the age of the child. It varies from the each insurer.

Summary

I hope this article is useful for the parents who are willing to take the child insurance policy. In my future articles I will be writing about the each policy in detail. Thank you for reading this article. If you have any doubts please post it in the comments section.

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• With the new announcement, agents cannot change the insurance company very frequently.
• Every agent has to stick with the same company for at least three years, then only he can move to another company to sell the policies.
• Moreover, he has to get the certificate from the current employer to join the another company.
• They must submit the all the details of the policy holders and contact details before leaving the present insurance company.
• Once the agent left the company, Insurer must arrange alternative agent to server the policy holders.

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The following are the list of Life Insurance Companies in India. The list is published by IRDA.

• Bajaj Allianz Life Insurance Company Limited
• Birla Sun Life Insurance Co. Ltd
• HDFC Standard Life Insurance Co. Ltd
• ICICI Prudential Life Insurance Co. Ltd.
• ING Vysya Life Insurance Company Ltd.
• Life Insurance Corporation of India
• Max New York Life Insurance Co. Ltd
• Met Life India Insurance Company Ltd.
• Kotak Mahindra Old Mutual Life Insurance Limited
• SBI Life Insurance Co. Ltd
• Tata AIG Life Insurance Company Limited
• Reliance Life Insurance Company Limited.
• Aviva Life Insurance Co. India Ltd.
• Sahara India Life Insurance Co, Ltd.
• Shriram Life Insurance Co, Ltd.
• Bharti AXA Life Insurance Company Ltd.
• Future Generali Life Insurance Company Ltd.
• IDBI Fortis Life Insurance Company Ltd.
• Canara HSBC Oriental Bank of Commerce Life Insurance Co. Ltd
• AEGON Religare Life Insurance Company Limited.
• DLF Pramerica Life Insurance Co. Ltd.
• Star Union Dai-ichi Life Insurance Comp. Ltd.

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This blog post explains about the new proposal sent to the Insurance Regulator to cut down the existing commissions paid to insurance agents and increase the sum assured for the policy holders. It is just a proposal and it looks Insurance Regulatory & Development Authority (IRDA) is not much interested in the proposal. In this article I will explain about the agents commission structure and why the agents are more important to reach out the customers. Please subscribe to our future articles here.

Commission for Insurance Agents

It is obvious that there should be good income to motivate the agents to get more number of policies. It is true when talking about the insurance agents. They get more commission for their hard work. My humble opinion is they deserve their income because I knew they work hard to get many policy holders. Lets put down few numbers about the commission they are earning to get the policies.

The Insurance Act, 1938, allows insurance companies to pay a maximum commission of 40 per cent of the first year’s premium, 7.5 per cent of the second year’s premium and 5 per cent from there on. The commission paid is limited to 2 per cent in case of single premium policies. In case of pension plans, the commission is limited to 7.5 per cent of the first year’s premium and 2 per cent there on.

As the report points out, for the year from April 1, 2007 to March 31, 2008, the insurance companies paid out a whopping Rs14,704crore as commission.

It is Rs.16.25 for the every Rs.100 . Here the complaint is the high commission for insurance agents leads to low assured value for the policy holder.

Read: Difference between insurance and investments.

Agents deserves the commission

Compare to other countries the awareness and importance of the insurance in India is very low.  According to the statistics, more than 90% of the population don’t have the insurance cover for their life. It is not good number for the developing countries like India.

Till now many people are taking the policy because the agents are keen on increasing the convincing the people to take policy which will result in the commission for them. If the IRDA removes the commission, it will be bad day for the insurance sector in India. I hope they could realize the importance of agents.

From the sources, IRDA is in favour of agents, so they will not do anything against the insurance agents. On the other hand, agents must be responsible for providing the correct information to the customers. It is rising number of incidents like cheating the customers and misselling the insurance products which they get more commission. It is very important for the IRDA to regulate and monitor the agents activities. I have explained about the difference between insurance and investments.

Summary

In this article I have explained about the importance of insurance agents and their commission structure. If you are one among them, please share your experience as the insurance agent and post your opinion. It will be helpful to the readers. Thank you for reading the article. If you like this article please subscribe to our future articles here.

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Introduction

This blog post answers few questions related to Life Insurance policies. Frequently I am getting questions from our readers in various topics. I have decided to compile all the questions and post in the each topic regularly. Here I am starting with LIC policies. Hope this will clear your doubts. If you have any questions please post it in the comments section. I will add in the next set of questions. Subscribe to our future articles here.

1. Can I change the due date of the LIC policy?

The due dates are given at the time of taking the policy. It is not possible to change the due date once the policy is started. But, there is 30 days time given to pay the premium without any interest amount.

2. What is Double Accident Benefit Policy?

Double accident benefit in a life insurance policy provides for the payment of an additional amount equal to the sum assured in case of the death of a policyholder owing to an accident. You can read more details about double accident benefit.

3. I want to start insurance for my child’s education. Is it good idea?

Yes. If you want to invest for your child’s education please invest in the insurance. It has many advantages like premium waive of when you are no more. The policy will continue even if you are died. It will save your child’s education.

4. What is family income benefit rider?

A family income benefit rider is usually attached to a basic life insurance policy. If one opts for this rider, the life insurance company not only pays the death benefit in case of the unfortunate death of the policyholder, but also provides a regular monthly income to the family for the rider policy term.

5. I have a Life Insurance Policy with sum assured Rs.2000000. Can I take loan against this policy? What is the maximum amount I can take the loan?.

Yes. You can take the loan against LIC policy. You can read our article about the loans against lic policy. The loan amount is decided based upon the surrender value of the policy.

6. I am NRI. Can I take LIC policy in India?

Yes. NRI can take LIC policy while they are in India or staying in abroad. If they are in abroad, they can use the mail order business and apply for the LIC with present address.

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Banks can tie up with utmost one insurance company as the agency. For example IOB has the LIC as the Insurance partner.  Insurance sector regulator IRDA is considering whether to allow banks to tie-up with two-to-three insurance firms to sell their insurance.

The regulator is currently reviewing the existing Banacassurance model and has set-up a seven-member committee to study the subject.

The agency distribution arrangements through banks is generally known as the ‘Bancassurance’ model.

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Introduction

This article explains about the double accident benefit for Life Insurance policies. It is one kind of policy to get the more assured amount in case of  death by accident. This articles explains briefly about this scheme and what will be the premium payable for this policy. If you have any doubts please post it in the comments section. Subscribe to our future articles here.

What is Double Accident Benefit?

• Double accident benefit in a life insurance policy provides for the payment of an additional amount equal to the sum assured in case of the death of a policyholder owing to an accident.
• You can opt for double accident benefit by paying an additional premium payment of only Re1 a year against an assured sum of Rs1,000 (this can vary with different insurers).
• Furthermore, the death of the insured must follow within a specified period of injury, which is typically 90-180 days. Usually, the compensation is subject to an upper limit stated in the policy.

Summary

I hope this article is useful to understand the concept of double accident benefit. If you have any doubts please post it in the comments section. Thank you for reading this article.

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In this article I will be writing about the loan against LIC policy. As I have explained in my previous articles about the different kind of loans and how to apply for it. Loans against LIC policy is one of the good idea to get loans for cheaper price. It involves many restrictions because you will not be eligible to get huge loans under this scheme even if you have the policy. I will explain the conditions involved in getting the loan against LIC policy. If you have any doubts please post it in the comments section. Please subscribe to our future articles here.

What is Cash Value for LIC policy?

In my previous article I have explained what is surrender value?. Cash Value is also referred as the Surrender Value of the policy. Before applying for the loan you must know the exact cash value of the policy because if it is very low then there is no point in applying the loan if your need is huge amount.

How to pay LIC premium online?

Loan on LIC

The provision of loan against a life insurance policy is basically an advance against the cash value (surrender value) of the policy. The advance is always less than the case value. Most of the insurers approve 90% of the cash value of the policy. In case a loan is provided, the policy is absolutely assigned and held by the insurance company as security for repayment of the loan.

• You have to pay the interest specified in the loan.
• If you failed to pay the interest on time, that will be added to the principle and calculated the interest.
• If the total dept is more than the cash value, the insurer has the rights to terminate your policy.
• If the policy is matured before completing the loan, insurer has the rights to deduct the loan amount from your maturity amount.

Summary

I hope this article will be useful for the people who has the policy with good surrender value and need of urgent loan. If you apply for personal loans, the interest rates will be very high. This scheme will be very helpful. Thank you for reading the article. If you have any doubts please post it in the comments section.

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In this article I will be writing about the surrender value of LIC policy. Basically the surrender value is the case value of your policy which can be paid if you are planning to discontinue the policy before its completion. It has few calculations and restriction to apply for the surrender value. This article explains that in more details. If you have any doubts on the LIC surrender value please post it in the comments section. Please subscribe to our future articles here.

What is Surrender Value of LIC policy?

Surrender value is payable only after three full years premiums are paid to LIC. More over if it is a participating policy the Bonus get attached to it as per prevalent rules. Surrender of policy is not recommended since the surrender value would always be proportionately low.

If due to any reason when you wish to terminate your contract of insurance with L.I.C., you can surrender your policy to them and get its cash value known as Surrender Value.

How to know Surrender Value?

The best idea would be to visit the nearest branch in your location or contatc your LIC agent to know about the surrender value of the policy if you give the details about your policy.

Summary

Thank you for reading this article. I hope now you got some idea on what is surrender value for your policy. It will be helpful if you can know the surrender value of your policy. Please post your feedback in the comments section.

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Introduction

In this article I will be writing about the different types of Life Insurance Plans in the market. As we know that Life Insurance is important for everyone to protect their family incase of their demise the insured money will save their family for educating their children and marriage of daughter, etc. According to your needs, one can choose their Life Insurance Scheme. This article presents the very basic knowledge on different Life Insurance plans and how it will benefit you in the future. If you have any doubts, please post it in the comments section. You can subscribe to our future articles here.

Term Insurance Policy

This policy is pure risk cover with the insured amount will be paid only if the policy hold dies in the period of policy time. The intention of this policy is to protect the policy holder’s family incase of death. For example, a person who takes term policy of Rs.500000 for 20 years, if he dies before 20 years then his family will get the insured amount. If he survive after 20 years then he will not get any amount from the insurance company. It is the reason why term policies are very low cost. So, this type of policy is not suitable for savings or investment.

Whole Life Policy

As the name itself says, the policy holder has to pay the premium for whole life till his death. This policy doesn’t address any other needs of the policy holder. because of these reasons this kind of policy is not very popular or insurance company not suggesting to take this policy.

Endowment Policy

It is the most popular Life Insurance Plans amoung other types of policies. This polciy combines risk cover with the savings and investment. If the policy holder dies during the policy time, he will get the assured amount. Even if he survives he will receive the assured amount. The advantage of this policy is if the policy holder survives after the completion of policy trnure, he receives assured amount plus additional benefits like Bonus,etc. from the insurance company. In this kind of policy, policy holder receices huge amout while completing the tenure.

In addition to the basic policy, insurers offer various benefits such as double endowment and marriage/ education endowment plans. The cost of such a policy is slightly higher but worth its value.

Money Back Policy

Money Back Policy is to provide money on the occasions when the policy holder needs for his personal life. The occassions may be marriage, education,etc. Money will be paid back to the policy holder with the specified duration. If the polciy holder dies before the policy term, the sum assured will be given to his family. A portion of the sum assured is payable at regular intervals. On survival the remainder of the sum assured is payable.

Summary

This article explained the very basic knowledge on different types of Life Insurance Plans. There is some other policy also available in the market but I did not write about it because these are the popular policies. If you have any doubts please post it in the comments section. Thank you for reading this article.

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In India, LIC is the leading life insurance provider and people have the good faith on LIC because it is controlled by the government. But, when it comes to the services and extra features provided by the LIC is behind their private counterparts. One such thing is the online payment of the insurance premium, still many policy holders not aware of the LIC’s online premium payment and depend on the agents. It is because LIC has not taken any step to promote their portal.

This article explores the steps needed for the making the LIC premium through its online channel.  I hope this article might be helpful to most of the readers because almost everyone has own LIC policies for them. Most of the people think that paying the LIC premium is only through agents or directly to the LIC office. But, paying through LIC’s official website would be hassle free and saves you lot of time. Moreover you can pay many policies in the single account (but it is not recommended by LIC). You can read the following stpes to make the LIC premium online.

Also Read:

How to Pay LIC Premium Using SBI Credit Card?

Step 1 : How to create User Name in LIC website?

Go to website http://www.licindia.in/. To make the payment online you must have username and password. Create new use account using this link : http://licindia.in/NewUserRegistration.htm

Step 2 : Enroll policy

After creating the user account, you can login to the portal with the new created username. Once logged in you have to add your policy number to retrieve the policy details. In the left side menu you will find “Enroll Polices” link. Click on that link and add your policy number and the premium amount.

Step 3 : View Policy details

If you enroll a policy, then you will be able to view all the details related to that policy. It includes policy started date, sum assured, plan, policy term, address, premium, next premium due, accrued bonus, branch and agent details. The following is the screen that shows the above details:

Step 4 : Pay LIC Premium

Now you are ready to make the payment online. Click on the ‘Pay Premium Online” link and you will see a list of policies you have enrolled in your account. Select the policies which you want to enroll and click on the submit button. It will be landing to the payment gateway site where you will be making the payment. Once payment is done, you will be returning to the same webpage.

Update:

Step 5 : Debit Card / Credit Card

It is an update to the existing article. When I first published the article, there is no provision to pay the LIC premium using the credit card. When I checked it recently, they have included the option for paying through debit card or the credit card. Once you have clicked the submit button, the next screen will show you the option to pay through credit card or debit card.

Step 6 : Service Charges

In the above step you have selected the option to pay through online. Either of the options, customer have to pay the convenience fees to the LIC for processing the payment. Customer will be taken to the following screen:

If you click on the agree button, you will be taken to the card details page and the next step your payment will be processed.

Step 7 : View Premium Receipt

You can view the premium receipt anytime. It is one of the advantage if we are making the payment online. We can keep the receipts safely and take the printouts anytime. The copy of the receipts will be sent to your email-id which is registered with your policy number.

Update:

You have to create separate user id if you are enrolling policy for different persons. It is because the system will not allow you to enroll the policy if the profile birth date and enrolled policy holder’s birth date does not match. They also suggested to use the separate user id for each person.

Summary

I hope this article will be useful for the readers who want to pay the LIC premium online. The good thing is that now LIC has added the option to pay using the credit card. If you have any doubts please post it in the comments section. The site doesn’t have the option to pay using the credit card. You must has the online banking account with any of the Indian bank to pay the premium online. Like explained in the above article, you can add any number of policies in the same username. Thank you for reading the article!!

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This article talks about how to reduce the premium while people are buying the insurance plans. Many people not aware that the same insurance plan would cost you different expenses depends on the preference you have choose. The preference could be mode of payment, number of policies, etc. This article intend to explore few of the factors which will determine the premium of any insurance plans. Please post your doubts in the comments section. If you like the article subscribe it here.

Top 5 Rules to Reduce Insurance Premium

1. Choose the yearly mode of payment

The mode of premium payment would make the difference. Many people not aware that making the premium on Monthly, Quarterly, Half-Yearly and Yearly is not the same when you accumulate the premium paid for the whole year. The most cost effective method is to pay the premium annually. When you are planning the mode of insurance premium payment, please choose the yearly payment because it saves you money and also only once you have to make the payment. I will give you the small example how it could save you money. Look into the following table to understand the difference when you pay the premium monthly and yearly:

So, here the point is save the premium to pay yearly. Even if the amount is deposited in FD, the difference is smaller. It is one of the important factor while considering to reduce the premium amount.

2. Club the policies

If you have plan to take one or more plans, take a single plan with the same value. Buying many different plans will cost you more. If you are clubbing plans together insurance company will reduce the premium amount.

3. Buy insurance while you are healthy

Buying insurance plan while you are healthy may reduce your premium outgo. Insurance premium is largely depend on the person’s age, health and medical conditions. If the health of the insurer is not good, it is risk for insurance company if the insurer demise soon without paying the more premium. Most of the case age 35 is considered as the good condition and if some one crosses that age would under go the medical test before applying the insurance cover. So, if you are expecting any health problems in future and have plan to take the insurance cover, I would advise to take it before the age of 35 to reduce your premium.

4. Don’t pay for mark-up in premium

If you have any temporary illness or the health problem where it is not serious illness. Insurer may ask you to pay the mark-up premium above the normal premium. It is better to apply for the plan when you are healthy and not having any illness like fever,etc. Even normal fever may give the bad impression to the insurer. In that cases you can discuss with the insurance company to remove the mark-up premium, if not look for the another insurance company.

5. Attach a level term cover rider to endowment plans

There is also a level-term rider that is similar to a stand-alone term policy but can be attached to a base policy (other than a term plan) increasing the scope of cover.

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In this article I will be writing about the endowment insurance plans which is one of the insurance plans in India. Starting from this article i will be writing about the different insurance plans and providing the suitable ideas on choosing the right plans for your family. I hope this will help you to understand the insurance basics and in-depth knowledge on insurance plans. Post your feedback on the comments section. If you like the article please subscribe our future articles here.

Endowment Insurance Plans

Protection + Savings = Endowment Insurance

Other insurance plans like Term Insurance will provide only the life cover and the benefits will be given only when you demise. Endowment insurance plans is with savings in the mind. Some times you would require life protection with the savings which might require at some point of time. Those who needs will opt for the endowment plans.

Normally endowment plans cost you more. You will have to pay the high premium because at the maturity time you will get the assured amount and the bonus accrued for the insurance premium as the profits. Most people argue that endowment plan is not the good option as savings because the return on the investment will be very low compare to the long term investments like PPF which yields 8% with no tax liability. However it purely depends on the individuals decision to choose the appropriate plans.

In endowment plans, in the event of death of the insured during the term of the policy, the nominee receives the sum assured plus the bonus/participating profit/guaranteed additions, if any. The bonus or profit is paid for the number of years that the insured survives in the policy term.

Endowment policy is good for young people as it provides them an opportunity not only to cover themselves for risk but also provides financial independence to them in old age by way of maturity benefit. A variation of the Endowment plan is the Endowment plan with Profit or Unit Linked Endowment plan with Profit.

Summary

In this article I have explained about the endowment plans and its purpose. It is advisable to choose endowment plans if the provides gives bothe insurance cover and the profits. I will be writing other various options and different types of insurance products in the next few weeks. Keep reading our future articles. You can subscribe to our future articles here.

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Life insurance is for protecting your life cover. Some time the life insurance is not enough for you to protect from unexpected expenses like accident and illness. In that case you have to prepare for some other plans other than the normal life insurance policies. In this article I am exploring about the life insurance riders, which will provide the option of adding more benefits on top of your life insurance policies.

What is Life Insurance Riders?

Riders are additional benefits that can be purchased with an insurance policy. As I mentioned in the above section, apart from the basic life insurance policy you have to option to add some extra benefits to protect from the unexpected happenings. For example, if you met any accident which cause more damage to your health, you can utilize the Accidental Disability/Dismemberment Benefit rider. In the event of total and permanent disability during the term of the policy due to an accident (within a specified period from the date of accident), an amount equal to or less than the rider sum assured is be paid to the insured. There are different types of  riders in the life insurance policies. I will write it on my next article.

Summary

In this article I have explained about the life insurance rider and the benefits. This is very useful when you can make the some extra premium for the rider policy to get the benefit while you are affected. Thank you for reading the article. You can subscribe to our future articles here.

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