Single Premium Life Insurance Policy

In today’s world everyone is aware of the challenges and unforeseen situations that can manifest anytime, anywhere. Even though you’re cautious and aware of the pitfalls of modern life, insuring yourself against these dangers is a sensible thing to do. This is where it makes sense to avail the benefit of a life insurance policy as it buffers you against disabilities and also takes care of your family in the event of your death. Now, imagine a scenario where you are saved the hassle of coughing up a designated premium year after year for a life insurance policy. Instead, what if all this can be achieved in a single stroke without any worry? It is definitely possible with a single premium life insurance policy as it’s your best bet.

This type of policy is good for those who can pay a lumpsum in a single stroke. Like conventional life insurance policies, this policy too provides a security umbrella to the policy holder until the full policy term. This type of life insurance policy is gaining popularity because of the ease of purchase, and also ease of operation. It has been found that affluent urban groups are now preferring this policy for just these reasons.

Benefits of single premium life insurance

·         A tax benefit is provided in this type of policy on the premium paid which is applicable under section 80C.  This is applicable if the premium amount is at least 20% of the sum assured or if the sum assured is at least 5 times the premium.

·         You don’t have to worry about your policy getting lapsed.

·         In case you need to avail of a loan facility, this can come in handy and can be used as collateral against your loan. 

·         Peace of mind as you don’t have to set aside any money from your yearly spend for annual premium.

·         This type of policy is best for those professionals who are at the peak of their productivity and can afford to pay the premium in a single stroke.

·         For a frequent traveler, this is a blessing in disguise as he doesn’t have to worry about paying his yearly premium on a fixed period.

·         If you have a high salary then you can opt for a higher premium.

·         If you’re unsure about your future earning potential, then go for this policy.

·         In case a critical illness or if disability strikes the policy holder, even then his family is taken care of.

·         The accidental death clause also takes care of the family.

Buying this policy via an online aggregator makes more sense rather than following the traditional route of contacting an agent for this type of policy. This has multiple benefits as it proves to be not only cost-effective, but saves time and can be done from the convenience of your home or office. It is also a transparent process. You also have the additional advantage of comparing premium quotes and other factors like special benefits and sops. What you must watch out for are riders.

Insurance Policies That Provide A Security Umbrella During Natural Catastrophes

Acts of nature like earthquakes, floods and fire outbreaks in forested areas can happen anytime, anywhere. These not only cause considerable damage to property and life, but the consequent losses can also wreak havoc with your finances. It’s always a good thing to be prepared for the unexpected while creating the best security umbrella for yourself and your family. Therefore, it’s best to opt for certain types of insurances that will safeguard you and your finances, in the best possible way. This
blog explores four types of policies that can help you deal with catastrophic situations in a better way.

Property insurance

When a disaster strikes, besides life there can be irreversible damage caused to one’s property like a home/office/factory/shop etc. The disaster can include accidents like a sudden outbreak of fire, flood, cyclone and any other disaster. Here, a certain premium is paid to cover losses that arise owing to catastrophes. This type of cover also includes sub-categories which attempt to maximize the cover for any risk or danger that may arise to your property. These include:

A Fire Policy: This cover extends to places of worship, homes, offices, businesses etc. The best part is that property insurance also covers what are known as Acts of God, e.g. landslides, floods, cyclones, hurricanes, storms, earthquakes, etc.

Umbrella Policies: Essentially, these are add on covers that give an extra buffer in times of need. The good news is that these policies can be clubbed in a single document, saving you extra paperwork and time. Umbrella policies include shopkeeper’s policy, office package policy, building insurance, householder’s policy.

Hydrostatic Lock Cover

While taking their car insurance, most people don’t know about a very useful add-on cover called “hydrostatic lock cover”. This add-on is especially useful in flood and water logging prone areas, where it can literally keep you afloat. This policy takes care of additional expenses like engine and also takes into account full replacement of engine and other parts, if the need arises.

Whether your car is parked in a waterlogged area or passing through a deluge, water will enter your car. Never turn the key in the ignition because it can lead to engine breakdown and damage not only to one or two parts but the entire electrical circuit. They might need replacement and this could escalate expenses.

Personal accident cover & life insurance policy

During the time of an earthquake, cyclone, flood or any other calamity a temporary or permanent disability or even loss of life can impact your family severely. If you have a personal accident cover and a life insurance policy then, most of your problems that may arise because of these disasters, may be sorted. A personal accident cover offers you financial aid in times of a disability which may be temporary or permanent. Depending upon the type of policy you opt for, a life insurance cover will also take care of the policy holder’s family in case of his demise, by offering a lump sum amount.

Because a catastrophe can happen anytime, its best to always stay protected against the unfortunate consequences of such events. It’s a good idea to compare your options online before taking a policy so that you can weigh the pros and cons before making a decision.

How Technology Is Changing The Future Of Insurance

Like everything else, over the years insurance 

sector has undergone a paradigm shift and a metamorphosis from its original avatar. Today, technology has bridged the gap between an insurance company and the insured via digital revolution where online aggregators have made the insurance sector more transparent, accessible and easy to understand. But the march of technology will not end here. As there are continued advancements in this field, it is but obvious that the insurance sector too will be impacted by changing technology and its demands. This blog explores that aspect.

The first and foremost impact which is already manifesting itself is the digital revolution which has led insurance companies to interact and deal directly with their customers, rather than  go down the traditional route of interfacing via middlemen. The emergence of online aggregators is already proof of that fact. Thanks to technology, insurance business is now more accessible and it is convenient to buy a policy at just the click of a button. What’s more is that the prospective customer has the advantage of comparing the pros and cons of each policy along with sizing up which premiums are low and suit his budget the best.

The other most impactful change is that insurers are now offering mobile applications which are helpful in reporting claims and accessing information. For example if a car is involved in an accident, the car owner can now immediately transmit the accident picture live, thereby speeding up the process of filing the claim in a big way. This could well be a common scenario, for the future.

Thanks to major advances in software and hardware, insurance companies are now witnessing a major surge in data collection that is translating into higher business returns. For instance, the process of underwriting, which depends on individual risk assessment which sets the premium pricing is impacted in a big way. Now, customer data is providing actionable insights resulting in improving the customer experience.

One of the most interesting trends unfolding itself in the insurance sector is probably the rewriting of some traditional insurance methods. Take the concept of self-driven cars.The question is when cars are in a futuristic scenario where most of the functioning is based on software that works on certain formulae and algorithms, if something goes wrong who will be held responsible? Will the car manufacturer take responsibility or will the onus rest on the shoulders of the person driving the car? The insurance industry, software companies and the car manufacturers will have a lot to think about and consider. The other aspect of auto driven cars is that the number of accidents and cases of drunken driving will reduce drastically. Severity of accidents is also expected to reduce in this scenario thereby bringing down insurance costs. But natural factors like cars being damaged due to floods, cyclone, earthquakes and other calamities could still be a risk to auto driven cars. These factors could potentially impact the underwriting business and usher in technology driven and related changes.

Protecting The Future Of A Growing Family

When 25-year-old Vivek Jain got his first job, buying an insurance policy was the last thing on his mind. A few years later, his younger brother was detected with cancer while his father was to undergo a major cardiac surgery. Jain’s group insurance cover was limited and he had had no option but to break into his savings. Though his family survived the crisis, he had another problem at hand. The money he had been setting aside for his child’s education was used up paying hospital bills. At this point, Jain realized his greatest folly: Had he insured himself and his family today, he would not be debt ridden and on the edge of financial ruin.

Unforeseen mishaps and challenges do not come announced. It’s always safer to invest in certain life insurance policies that will hold you in good stead. Whether you’re a young or a mid career professional, you need to invest in health and life insurance policies along with a solid child plan to meet the needs of your growing family. What you must know is that all these policies give you a tax benefit.

As the term suggests, a life insurance policy is a cover where you pay fixed premiums to an insurance company that provides compensation to your family in case of your death or loss of livelihood.  In the current scenario, there are three types of policies available which you can choose depending upon your requirement and financial planning.

The first type, a Term Insurance policy essentially provides compensation to the family of a policy holder in case of his death. This compensation, also known as the death benefit is given as a lumpsum amount. On the other hand, Unit-linked Investment Policies (ULIP) have the dual benefit of being an investment and insurance, while Money Back Insurance policy  gives the policy holder money back after a fixed time.  The policy holder can either reinvest this money or use it for other purposes. The third type of policy—pensions or annuities are used to create a retirement corpus where you’re required to affix an age for retirement and earn benefits based on that premise.

All of these policies will not only give you peace of mind for yourself and your family, but will also prevent any financial battering in the face of unforeseen mishaps.

Though you and your elderly parents may be covered under a group health insurancecover provided your employer,  it may not be enough. This type of cover usually has limited compensation like Rs 2-3 lakh. In case your ailing parent has undergone a major surgery or has incurred high hospital bills, finances may be impacted. However, if you have bought your parents a health cover, then all additional expenses that your group medical cover could not take into account, will be taken care of. Many insurers have policies that offer coverage to parents/ senior citizens aged between 60-80 years. Always go for a policy where the sum assured is high and offers maximum coverage in terms of serious illness and even if they have a history of pre-existing diseases. 

Your third must-have policy is a child plan. This is more an investment for your child’s future than an insurance cover. The prime objective of life insurance is to protect the financial interest of the surviving members of the policyholder’s family in the event of the death of policyholder. Since children have no income of their own, most plans dedicated to them are essentially saving plans with a layer of protection in the event of parent’s death so that there is no disruption in their education and provide for other basic needs of the life.

Why An Insurance Surveyor Is Important

Modern life is replete with challenges and unforeseen situations which require protection and a security cover. Whether you’re a working professional, a businessman or a homemaker, fact is that in today’s world getting oneself insured along with one’s assets is a wise thing.

However, the insurance sector is not a one-way traffic. Just as prospective and existing policy holders need a security blanket, insurers also need the services of a professional who helps them run their business and deliver services in an efficient and simple manner. These professionals, commonly known as ‘insurance surveyors’ have a critical role that can make or break an insurance company. A surveyor has responsibilities in context of different types of insurance – like motor insurance, property insurance (fire, flood, etc.) This blog explores how it is in the best interest of the policy holder to make full disclosure to the surveyor.

What do surveyors do?

Essentially, surveyors are a bridge between policy holders and an insurance company. Their role is to make an assessment of the damage or loss incurred against a policy. Whenever a claim is filed by a policy holder, the concerned insurance company appoints a surveyor to assess the loss and submit a report quantifying the claim payable under the policy. In accordance to the Insurance Act, all the claims above Rs 20,000 have to be surveyed by an independent professional.

Basically, surveyors are independent professionals (not a part of the insurance company) licensed by IRDA. The whole concept of appointing a surveyor is to ensure that no false claims are filed and there is no business loss, as a consequence of those claims.

Role of Surveyors in different types of insurance categories

The role of an insurance surveyor is quite an extensive task. In fact, these professionals conduct surveys of everything from transport, buildings, machinery, other sites or art pieces/antiques or any other items that need to be insured. Their entire work depends upon their assessments which are formulated into reports. These, in turn, help decide the terms and conditions of insurance policies. Their areas of specialization include:

Accidents and Liability – assessing the possible risks to employees, customers and visitors to a building or site.

Fire and Perils – examining plans, construction and fire protection systems to assess the risks to a building and its contents.

Burglary and Theft – inspecting business premises to check how goods are stored and improve security.

Engineering Insurance – surveying mechanical and industrial plants, machinery and equipment for any faults and risks.

Art and Artifacts – surveying and valuing art objects

As a rule, the insurance business works on a simple principle. This is known as the ‘principle of indemnity.’ It means that the customer is put in the same position financially in which he was before he incurred a damage/loss. To avoid any sort of problem, the surveyor caps this possibility by assessing the loss. Then he gives a report to the company on whose basis the claim is settled.

It is always a good idea to make a full and accurate disclosure to the surveyor at the time of making a claim. This is because, if the insurance company detects any foul play, they would evoke the principle of ‘utmost good faith’ and may reject the claim.

How To File A Complaint Against An Insurance Company In Consumer Court

With the expansion of the insurance sector in the last two decades and the advent of more efficient client servicing, insurance companies are expected to follow rules on everything. When you buy any insurance policy, you expect to receive top class service along with peace of mind that you’re safe. But what if your insurer denies a claim fraudulently or defaults on service? You may face several issues like delay in claim settlement, non-receipt of your policy, dispute regarding premium paid or payable, dispute as to the sum payable, few terms and conditions may throw you off gear or even a claim rejection.

 It is certainly an unpleasant situation but not an impossible one. Your best recourse is to approach the IRDA or the insurance company or even an ombudsman. But if all these steps fail, then you have to head to a consumer court for a redressal and resolution of your problem.

What is the process of filing a consumer complaint?

There is a process to be followed depending upon the monetary value of the compensation of the consumer complaint, in case of an insurance company. In fact, if the value of goods and compensation is less than Rs 20 lakh, in that case, you have to approach the district consumer forum. As opposed to this, if the value of goods and compensation is more than Rs 20 lakh but definitely less than Rs 1 crore, a case can be filed in State Consumer Dispute Redressal Forum. If it exceeds Rs 1 crore then the case should be filed in the National Consumer Commission. Unlike other court cases, you don’t necessarily need to hire the services of a legal expert or a lawyer to file a consumer complaint. In fact, you can file it directly by yourself, clearly stating the fact, circumstances and the compensation demanded. It has to be filed within two years of the deficiency of service/ defrauding by the insurer. The necessary documents for a consumer court petition include the following:

·         The most obvious fact is while filing a complaint you have to enter the name, address, description of the complainant

·         Name of the insurance company/opposite party or parties against whom the complaint is being filed.

·         Cause and facts relating to the complaint should also be mentioned like the time and place of occurrence.

·         Alongwith your complaint, you must also furnish or attach documents in support of your petition that will take the case further.  

Till some years ago, arbitrary rejection of claims was fairly common, with many depictions of such scenarios in popular culture. John Grisham’s book “The Rainmaker” is based on a large insurance company rejecting a claim. But with strong regulation being put in place and active regulatory bodies operating in most countries, the situation has changed drastically in the last 10 years. Where customers have a plethora of options to choose from, insurance companies need to have a good claim record in order to attract customers. In fact, a good claim record is one of the selling points insurance companies use in their advertising. But, even with every measure in place, some claims still get fraudulently rejected. In such a scenario, it is extremely important for consumers to take the matter to the right authorities.

Insurance In India Gets More Innovative And Quirky

The insurance sector in India has boomed in the last two decades with more and more demand for insurance policies on life, health, personal accident cover, motor insurance, etc. But now the sector is expanding its horizons to unchartered territories which were traditionally, the bastion of their western contemporaries.

Taking cues from their Hollywood counterparts, our Bollywood stars too are not leaving any stone unturned. While reigning superstars like Aamir Khan and Rajnikanth have insured their films, India’s nightingale LataMangeshkar has insured her voice. Incidentally, Rajnikanth insured his voice too and even obtained a copyright for it, suggest reports.

Taking note of the fact that an unforeseen mishap can strike anyone, anything, anytime, insurance in India is slowly but surely coming of age as it is delving into unusual areas like art and antiques insurance, kidnapping insurance, wedding insurance, pet insurance, long term care insurance, disability insurance among others.

Most people harbour this erroneous belief that an art and antiques insurance policy would entail protecting their items from theft. While this is partially true, an insurance cover for these is much more than that. Here, a policy covers the antique or art work from everything like an accident, damage caused by fire and transportation risk among others.

Body part insurance is yet another segment which has caught the imagination of Bollywood celebrities. The latest to be bitten by this bug are starlets Mallika Sherawat and Minissha Lamba. The duo have spent lakhs insuring their assets while among male stars, John Abraham has jumped on the bandwagon.

Indian sports stars too are not far behind in this arena. There have been recent reports of tennis ace Sania Mirza getting her hands insured.

Wedding insurance is yet another unique policy that has found takers in India. Factors like theft/damage to wedding dress, jewellery, cancellation of wedding and damage caused by an unforeseen accident and fire are some of the primary reasons for which wedding insurance is done. Yet another segment is pet insurance where animal lovers are willing to pay a good premium to ensure the costs related to their pets in terms of accidents, maintenance and medical treatment are taken care of.

Long term care insurance is designed to keep the insured comfortable and happy in their sunset years. On the other hand, a disability insurance takes care of the insured where he may have incurred permanent or temporary disability that impacts his life.

Many of us have spent precious minutes or hours looking for the lost keys of our car or household. Now, it is the burden of the insurance company to provide a cover for these lost keys. What’s more is that in case your keys don’t get replaced in the first 24 hours then the insurer can provides you the cost of hiring a car.

The other interesting insurance policy is the personal identity protection. It covers your losses owing to a lost wallet, assault at an ATM and also a robbery at ATM after you’ve withdrawn the money from there.