Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
(level premium, limited premium payment, single or multiple, mortality & morb idity, w ith prof it or w ith out prof it)
F orfeiture of p remium in c as e the p olic yholder outlives the p olic y term W ho p refers it?
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C a n b e c o n v e r te d in to E n d o w m e n t, a fte r th e e x p ir y o f s e le c te d p e r io d D e c r e a s in g T e m p o r a r y A s s u r a n c e P o lic y , ta k e s c a r e o f o u ts ta n d in g in d e b te d n e s s u n d e r a h o u s in g lo a n
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o rt g ag e R ed emp t i o n A ssurance:
W h o le life p o licy
I ns uranc e c over ag ains t death, irres p ec tive of w hen it hap p ens P ermanent ris k p rotec tion at a moderate c os t P olic yholder p ays reg ular p remium until his death, follow ing w hic h the Sum A s s ured is p ayable to the nominee N ot a very p op ular p lan, as it does not s uit the req uirements of p os t-retirement life
A s a res ult of this draw bac k , ins uranc e firms now offer either a modified W hole L ife P olic y or in c ombination w ith another typ e of p olic y
h o p r e fe r s it?
W h o le life p o licy
S o m e o f th e m o d ifie d v e r s io n s o f w h o le life p la n s : Single Premium WL Policy: O n e t i m e p a y m e n t o f p r e m iu m , r e d u c e s th e o ld a g e p r e m iu m p a y m e n t w o r r ie s C onv ert ib le WL Policy: C a n b e c o n v e r t e d i n t o E n d o w m e n t p la n , a fte r th e e x p ir y o f 5 y e a r s s in c e in c e p tio n Limit ed Pa yment WL Policy: P r e m i u m c e a s in g a t th e a g e o f 7 0
p a y m e n t
E nd o w ment P lans
P ure endow ment M oderate P remiums (higher than Term Plans) H ig h bonus H ig h liq uidity Saving s oriented: C ombines ris k c over w ith financ ial s aving s Survival benefit D eath benefit
A nnuit y P lans
L i f e an n u i t y i s o p p o s i t e o f i n s u r an c e p r o t e c t i o n ag ai n s t d e at h It c o v e r s th e r is k o f liv in g to o lo n g
L i f e an n u i t y i s d e f i n e d as a c o n t r ac t w h e r e b y f o r a c as h c o n s i d e r at i o n , t h e i n s u r e r ag r e e s t o p ay t h e an n u i t an t a s t i p u l at e d s u m p e r i o d i c al l y t h r o u g h o u t life
I n c as e p ay m e n t i s l i n k e d t o l i f e c o n t i n g e n c i e s , i t i s a L ife A n n u ity
A n n u i t y i s a p e r i o d i c r e p ay m e n t d u r i n g a f i x e d p e r io d o r fo r life
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D ef erred annui t y
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U L IP s
A
u n it lin k e d in s u r a n c e p o lic y p r o v id e s a in s u r a n c e c o v e r a n d th e p r e m iu m p a id is in v e s te d in e ith e r d e b t o r e q u ity p r o d u c ts a c o m b in a tio n o f th e tw o . In o th e r w o r d s , it is a c o m b in a tio n o f in s u r a n c e + m u tu a l fu n d . I n t h e e v e n t o f t h e l i f e a s s u r e d 's u n t i m e l y d e a th , h is n o m in e e r e c e iv e s th e s u m a s s u r p lu s th e v a lu e o f th e u n its (in v e s tm e n ts ). E v e r y in s u r a n c e c o m p a n y h a s U L IP p r o d u w ith v a r y in g in v e s tm e n t o p tio n s , c h a r g e s a n d c o n d itio n s fo r w ith d r a w a ls a n d s u rre n d e r.
life o r
e d c ts
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A s is U L IP a n d a s a m e S im in v o n e d iv fu n
G e n e r a lly s p e a k in g , U L IP s c a n b e te r m e d a s m u tu a l fu n d s c h e m e s w ith a n in s u r a n c e c o m p o n e n t.
s to rs h a io u s s c h u tu a l fu n d s , b a .
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B en ef i t s of ULIP
U L I P i s l i f e i n s u r an c e s o l u t i o n t h t h e b e n e f i t s o f p r o t e c t i o n an d in v e s tm e n t. I n t o d ay ' s t i m e s , U L I P p r o v i d e i n s u r an c e p l an n i n g , f i n an c i al n p l an n i n g f o r c h i l d r e n ' s f u t u r e p l an n i n g . I n v e s t m e n t s i n U L I P ar e al s o s u t ax b e n e f i t s u n d e r S e c 8 0 C an d 1 0 at p r o v i d e s f o r fle x ib ility in s o lu tio n s fo r e e d s , f i n an c i al an d r e t i r e m e n t b je c t t o (1 0 D ) in c o m e s
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F ea t u res of ULIP
I nv es t ment a nd s a v ings O p t ions t o t a k e a d d it iona l rid ers A d j us t a b le Lif e cov er Lif e Prot ect ion
F lex ib ilit y
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F u n ds u n der ULIP
E a c h in s u r a n c e c o m p a n y o ffe r s a t le a s t 4 to 5 fu n d o p tio n s . It c a n v a ry fro m E x a m p le s :
B ond F und
a c r o s s d iffe r e n t in s u r e r s .
L iq uid/ C as h F und
M idc ap F und
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E q uity F und
B alanc ed F und
C h a rg es u n der ULIP
S a le s a n d a d m in is tr a tio n e x p e n s e s M o r ta lity C h a r g e s
T o p -u p C h a r g e s
S w itc h in g C h a r g e s
F u n d m a n a g e m e n t c h a rg e s (F M C )
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C h a rg es u n der ULIP
M o r ta lity C h a r g e s M o r ta lity e x p e n s e s a r e c h a r g e d b y life in s u r a n c e c o m p a n ie s fo r p r o v id in g a life c o v e r to th e in d iv id u a l. T h e e x p e n s e s v a r y w ith th e a g e , s u m a s s u r e d a n d s u m -a t -r i s k f o r t h e i n d i v i d u a l . I n a U L I P , t h e s u m -a t -r i s k i s a n i m p o r t a n t r e fe r e n c e p o in t fo r th e in s u r a n c e c o m p a n y . P u t s i m p l y , t h e s u m -a t -r i s k i s t h e d i f f e r e n c e b e tw e e n th e s u m a s s u re d a n d th e in v e s tm e n t v a lu e o f th e in d iv id u a ls c o r p u s a s o n a s p e c ifie d d a te .
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C h a rg es u n der ULIP
S a le s a n d a d m in is tr a tio n e x p e n s e s
I ns uranc e c omp anies inc ur thes e ex p ens es for op erational p urp os es on a reg ular bas is .
T he ex p ens es are rec overed from the p remiums that individuals p ay tow ards their ins uranc e p olic ies . A g ent c ommis s ions , s ales and mark eting ex p ens es and the overhead c os ts inc urred to run the ins uranc e bus ines s on a day-to-day bas is are ex amp les of s uc h ex p ens es .
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C h a rg es u n der ULIP
F u n d m a n a g e m e n t c h a rg e s
T hes e c harg es are levied by the ins uranc e c omp any to meet the ex p ens es inc urred on manag ing the U L I P inves tments . A p ortion of U L I P p remiums are inves ted in eq uities , bonds , g -s ec s and money mark et ins truments .
M anag ing thes e inves tments inc urs a fund manag ement c harg e, s imilar to w hat mutual funds inc ur on their inves tments . F M C s differ ac ros s inves tment op tions lik e ag g res s ive, balanc ed and debt U L I P s ; us ually a hig her eq uity op tion trans lates into hig her F M C .
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C h a rg es u n der ULIP
S w itc h in g C h a r g e s
I ndividuals are allow ed to s w itc h their U L I P op tions . F or ex amp le, an individual c an s w itc h his fund money from eq uities to a balanc ed p ortfolio, w hic h has s ay, 6 0 % eq uities and 4 0 % debt.
H ow ever, the c omp any may c harg e him a fee for s w itc hing . W hile mos t life ins uranc e c omp anies allow a c ertain number of free s w itc hes annually, a s w itc h made over and above this number is c harg ed. E x amp le: L I C allow s 4 free s w itc hovers ag ains t s ome of its U L I P p roduc ts and c harg es R s . 1 0 0 p er every additional s w itc hover in a year. 23
C h a rg es u n der ULIP
T o p -u p C h a r g e s
U L IP s a llo w a m o u n t. i n d i v i d u a l s t o i n v e s t a t o p -u p
T o p -u p a m o u n t i s p a i d i n a d d i t i o n t o t h e p r e m iu m a m o u n t fo r a p a r tic u la r y e a r . In s u r a n c e c o m p a n ie s d e d u c t a c e r ta in p e r c e n t a g e f r o m t h e t o p -u p a m o u n t a s c h a rg e s .
T h e s e c h a r g e s a r e u s u a lly lo w e r th a n th e r e g u la r c h a r g e s th a t a r e d e d u c te d fr o m th e a n n u a l p r e m iu m .
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R i ders
R id p ro m a lim
e rs a r v is io n y b e a it th e
e d e fin e s o r g ro d d e d to b e n e fits
d a u p a p o th
s a s p e c o f p ro v o lic y to e r w is e
ia is e p
l p o lic io n s th x p a n d a y a b le
y .
a t o r
Pol i c y R i ders
Policy Riders a g iv e a d d itio n a l s u p p le m e n t th e a s s u re d . T h e s e r e p r o v is io n s , w h ic h b e n e fits th a t b a s ic b e n e fit o f s u m a r e :-
D a y s o f g ra c e R e v iv a l o f a p o lic y N o n -f o r f e i t u r e
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B en ef i t R i ders
E x tra s u m a s s u ra n c e o r e x p a n d s c o p e o f th e p o lic y b e n e fits L e v e l T e r m C o v e r R id e r C r itic a l Illn e s s R id e r A c c id e n t & D is a b ility B e n e fit R In c o m e B e n e fit R id e r W a iv e r o f P r e m iu m R id e r (W O M a jo r S u r g ic a l A s s is t a n c e B e n e G u a r a n te e d In s u r a b ility O p tio n
in g th e
id e r P ) fit R id e r R id e r
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R i g h t s u n der Li f e In su ra n c e Pl a n s
A s s ig n m N o m in a C la im s L o a n S u rre n d F o r e c lo s e n t tio n
e r u re
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