...Life Insurance is a Safeguard for Family Members Bibliography 6 Pages 1414 Words Life insurance is a safeguard for family members if the major supplier of income were to die and it were to grievously upset the common means for providing the basics of life. This does not include the burdens of financial expenses for burial, taxes, unplanned or emergency expenses, and furthered educational expenses for children or to have the spouse go back to school to become the primary breadwinner of the family. Life insurance is also not affordable when you are young and just starting out with a family and not always a main concern for the young. Most young people to do not think about death or their mortality, and hence, they do not see a necessity for life insurance. As we grow older, our needs and wants to secure a financial future for our loved ones necessitate the need to evaluate all options for achieving this goal. The cost and availability of features such as these could be a key issue in deciding which policy to accept. (Leaders, 5) There are really five types of life insurance available for people to purchase, which are Term life insurance, Whole life insurance, Universal life insurance, Variable life insurance, and Variable universal life insurance. People have to decide for themselves what is going to best for them and for their future. Understanding which life insurance policy will be right for you entails setting one primary objective for yourself and your family by answering...
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...Life Insurance is the fastest growing sector in India since 2000 as Government allowed Private players and FDI up to 26% and recently Cabinet approved a proposal to increase it to 49%. Life Insurance in India was nationalised by incorporating Life Insurance Corporation (LIC) in 1956. All private life insurance companies at that time were taken over by LIC. In 1993, the Government of India appointed RN Malhotra Committee to lay down a road map for privatisation of the life insurance sector. While the committee submitted its report in 1994, it took another six years before the enabling legislation was passed in the year 2000, legislation amending the Insurance Act of 1938 and legislating the Insurance Regulatory and Development Authority Act of 2000. The same year the newly appointed insurance regulator - Insurance Regulatory and Development Authority IRDA—started issuing licenses to private life insurers. Contents [hide] 1 Types of Life Insurance in India 1.1 Term Insurance Policies 1.2 Money-back Policies 1.3 Unit-linked Investment Policies (ULIP) 1.4 Pension Policies 2 List of Life Insurers (as of November 2011) 3 Foreign Direct Investment (FDI) Policy in Insurance Sector 3.1 Initial Public Offer (IPO) rules for Indian Life Insurance Companies 4 Indian life insurance industry overview 4.1 Commission / intermediation fees 5 External links Types of Life Insurance in India[edit] Life insurance products come in a variety of offerings catering to the investment...
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...Sharon Coutinho P.G.D.M. P-04 Life Insurance in Talent Exodus (Case Study) Q. Assume you are the A.V.P. Sales, what will you do to achieve the projected sale that is 100%, and the current sales are at 60% in your region? FACTS of the Case ❖ Costs rising significantly due to regulatory issues ❖ Lost 1.5 million agents in the last two years ❖ High attrition with 20,000 full-time executives having quit ❖ Growth in the sector has been erratic as fresh policy sales plunged after the Insurance Regulatory Development Authority enforced a new set of norms in September 2010 for the controversial Unit Linked Insurance Products (ULIPs). ❖ Norms benefit consumers, but reduce profitability of firms and cut agent commissions. ❖ ULIP typically constituted 30% of the total premium collection in 2009-10, but sales have fallen sharply since the norms came in. ❖ Finance minister P Chidambaram has underlined the need to revive the sector. ❖ To introduce the Insurance Bill in the current Parliament session ❖ Bill seeks to increase FDI in insurance sector to 49% ❖ In the last few years, no global insurance firm has entered India FACTS besides the Case (that may affect the solution): ➢ The commission of the agents cannot be tampered as the commission percentage is prescribed by IRDA ➢ Introductory of bills in the Parliament are very time consuming (take a long period of time) ➢ Even...
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...A contract of life insurance is one in which one party agrees to pay a given sum upon the happening of a particular event contingent upon the duration of human life , in consideration of the immediate payment of a smaller member sum or certain equivalent periodically payment by another. The origin of the concept of life insurance, as we know it, can be traced to ancient Rome. Caius Marius a military leader created a burial club among his troops, so in the event of the unexpected death of a clubs member, other members would pay for the funeral expense. The history of life insurance dates back to 3000BC. Learned scholars expression “Yagaksheman” found in the Rig Veda refers to a sort of social welfare insurance; the ancient Aryans seem to have developed such a concept. Edwin W Kopt in his treatise origin developed and practices of livestock insurance , credits India with being the mother of insurance practices, and opines that the development started in India and after that spread to ancient Babylon. Insurance began as a way of reducing the risk of traders, as early as 5000 BC in china and 4500 BC in Babylon. Life insurance dates only to ancient Rome; burial clubs covered the cost of member’s funeral expenses and helped survivors monetarily. Modern life insurance started in late 17th century in England, originally as insurance for traders: Merchants, ship owners and underwriters met to discuss deals at Lloyds coffee house, predecessor to the famous Lloyds of London. The first...
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...Scheme of Insurance Ombudsman – a protection to Policy holders Subject: Fundamentals Of Insurance Submitted to: Mr. Rammohan Professor Masters in law of financial Services and capital markets Submitted by: K.Samhitha Roll no-FS10-017 Ist year,Ist semester Masters in law of financial Services and capital markets NALSAR University of law Institute of Insurance & Risk Management Table of contents 1) Introduction ...
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...8.0. LIFE INSURANCE Life insurance usually referred to as “life assurance’ insures the insured against the happening of certain event i.e. death through the time when it may happen is uncertain. It is a civilized world’s solution to the problems caused by death. The event insured against is usually a tragic one, one that causes damage and loss of life to the policy holder. The service takes place in tragic circumstance and it helps to relieve the impact of the tragedy, partly, not wholly to the family members/nominees of the policy holder. The service is thus intrinsically satisfying, its infinite potential to give cheer ad happiness, is often flawed by the rigidities of procedure. Section 2 of the Indian insurance Act, 1938 has defined life...
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...Pre-launch Survey Report of Insurance Awareness Campaign SPONSORED BY Insurance Regulatory and Development Authority © National Council of Applied Economic Research, 2011 All rights reserved, no part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording and/or otherwise, without the prior written permission of the publisher. Published by Jatinder S. Bedi, Secretary & Head, Operations, for and on behalf of the National Council of Applied Economic Research, Parisila Bhawan, 11, Indraprastha Estate, New Delhi–110 002 Printed at M/s. Multiplexus (India), Delhi. Email: multiplexusindia@gmail.com Study Team Project Leader Anushree Sinha Core Research Team Rajesh Jaiswal Barun Deb Pal Kalicharan Shukla Consultant Ramamani Sundar Geetha Natesh Technical Support Sadhana Singh Contents List of Tables List of Annexure Tables Foreword Preface Acknowledgements Chapter 1: Background 1.1 Concept of Insurance 1.2 Importance of Insurance 1.3 Origin of Insurance 1.4 Origin and Development of Insurance in India 1.5 Important Developments in the History of Indian Insurance Business 1.6 Insurance Scenario in India and Other Countries 1.7 Insurance Penetration and Density in India 1.8 Why Awareness is Important Chapter 2: Methodology 2.1 Coverage 2.2 Sample Design 2.3 Selection of the Rural Sample 2.4 Selection of the Urban Sample Chapter 3: Socio-Economic Characteristics of...
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...The Essentials of Life Insurance Kent Irwin Categories: Insure, Life & Health Life Insurance Defined Insurance providing for payment of a sum of money to a named beneficiary upon the death of the policyholder. In other words, it is insurance of a risk (death) to replace the financial loss suffered by those dependent on the deceased. History of Life Insurance Life insurance is nothing new, its history spans back several hundred years. The original policies were simple term insurance policies. The contract was for the term of one year. Each year it renewed, with an increased premium because the person was a year older, and presumably closer to death. To address this increasing premium dilemma—the older you became the more difficult it was to pay the premiums. About 100 years ago, insurance companies issued policies that insured for entire lifetimes (hence the term “whole-life”) with a level premium, which means the premium payments did not change. These whole-life policies have a cash value that provides the ability to borrow or access cash values. Historically, life insurance existed to pay the cost of the funeral and last expenses, such as debt. Most people could not afford to purchase a policy that provided for much more. Neighbors and relatives pitched in to help after a death. Churches, Widow and Orphan Societies, and Fraternal Organizations were social service organizations that also helped. The later part of the last century witnessed an explosive...
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...The Role of Life Insurance in Financial Plan Life insurance can be an integral part of financial plan for future and the futures of loved ones. Selling life insurance should always be set in that situation, where it is a very important part of a person's total financial picture. One way to sell insurance in this manner is to set it against competing products as superior to them in value over time. In many cases for the ideal life insurance client, the promise of future financial support for his or her family after death is a powerful selling point. Life insurance as a role for total coverage tool against death when there is no financial planning in place is also ideal in that, given a large enough death benefit, a person's house, bills, funeral and children's educations will be paid for in full. This is a primary motivating factor particularly for younger clients who are just married and just beginning to build a life together. Emphasis on their age and relative health being to their advantage at such an early stage in life is also a useful way of showing how life insurance is a key product to have. The major roles for life insurance to play in a proper financial plan are assets assurance, leaving a legacy, family future financial support and protecting own business. Life Insurance may able to help the insurers protect their assets. Insurers may have real and personal property that they would not want to go to ruin after they pass away. With a life insurance policy, insurer...
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...ASSIGNMENT COSUMER BEHAVIOUR LIFE INSURANCE SUBMITTED BY: PRATIBHA RAJ M.F.M. - II INTRODUCTION Life Insurance is the key to good financial future planning. On one hand, it safeguards our money and on the other, ensures its growth, thus providing us with complete financial well being. Life Insurance can be termed as an agreement between the policy owner and the insurer, where the insurer for a consideration agrees to pay a sum of money upon the occurrence of the insured individual's or individuals' death or other event, such as terminal illness, critical illness or maturity of the policy. In law and economics, insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a company, selling the insurance; an insured, or policyholder, is the person or entity buying the insurance policy. The insured receives a contract, called the insurance policy, which details the conditions and circumstances under which the insured will be financially compensated. Till date, only 20% of the total insurable population of India is covered under various life insurance scheme (*Source: Center for Insurance Training, Research and Development), the penetration rates of health and other non-life insurances in India is also well below the international level. These facts indicate the scope of immense...
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...ACKNOWLEDGEMENT We are heartily thankful to our course teacher for Insurance and Risk Management, Mr. Saleh Islam, whose encouragement, guidance and support from the initial stage to the final level enabled us to develop an understanding of the topic and prepare this report. We offer our sincere gratitude and thanks to Mr. Sajedul Hoque, Pincipal Officer, Pragati Life Insurance Ltd for providing us necessary informations and outlines, without which this report could not have been completed. Lastly, we thank all of those who supported us in any respect during the completion of the report. Group: Trust for Life. Date: 2nd May, 2010. Introduction: Life insurance or life assurance is a contract between the policy owner and the insurer, where the insurer agrees to pay a designated beneficiary a sum of money upon the occurrence of the insured individual's or individuals' death or other event, such as terminal illness or critical illness. In return, the policy owner agrees to pay a stipulated amount at regular intervals or in lump sums. There may be designs in some countries where bills and death expenses plus catering for after funeral expenses should be included in Policy Premium. In the United States, the predominant form simply specifies a lump sum to be paid on the insured's demise. As with most insurance policies, life insurance is a contract between the insurer and the policy owner whereby a benefit is paid to the designated beneficiaries if an insured...
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...Products of Pragati Life Insurance Company are given below: Product-1 Jibon Sathi (With bonus) This is very special saving Insurance Policy. Now-a-days seen in many policy’s insured gets only half of the policy amount after 4/5 years. But in Pragati Life Insurance Policy the insured will benefit by after 5 years in every year. Characteristics: 1. After 5 years complete of policy, the insurer will get 10% of policy in every single year. After completing the policy time the insured will received the policy amount with bonus. 2. Before ending the policy time, if the insured will die by paying one or more policy in spite of that the insurance company will pay the policy amount with discount. As an example Tk. 1,00,000 policy for 11 years after 5th, 6th, 7th, 8th, 9th, 10th, years. Tk. 10,000 each total tk. 60,000 will paid by the insurer. In this policy Pragati Life Insurance will also pay after 11 years with earned bonus and remain tk. 40,000 to the insured. Product-2 Jibon Prottasha (With bonus) The aim of this policy is paying profit like bank in policy time. In now another three premium policy is term is to pay the policy money after reducing premium amount. In Jibon Prottasha Policy, after the ending of the policy time the insured will received the policy amount with profit in spite of paying only two premium. By this one policy holder will financially benefit without surrounding money or getting loan exchange policies. Characteristics: 1...
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...A Research Paper Objective: This assignment gives you an opportunity to expand your knowledge by exploring an insurance topic not covered in class. You'll also have an opportunity to work with fellow class members and "pick each other's brains" as you research your topic. Here's what you need to do: 1. Form a group of 2 to 3 members. 2. Select a life/health insurance topic of your interest. If you are looking for suggested topics, here are a few research areas I would like to suggest: * Aging and society: economic, political and social issues * Securitization of longevity risk * Demutualization of life insurers * U.S. healthcare reforms * Medical malpractice insurance crisis in the 1970s and1980s, and current issues * Financial crisis and impact on the life/health industry * Managing longevity risk 3. Each group need to turn in selected paper topic and name of group members (the selection form on page 5) by March 25th. 4. Each group will present their paper in the last week of class. 5. Submit a full paper about 8-10 pages (double-spaced) and the PowerPoint of your presentation to ReggieNet by May 10th. 6. Each group member should submit a peer evaluation form electronically to ReggieNet by May 10th. 7. Late submission will result in one point deduction in grade each day. Requirements * Write professionally: succinctly, proper sentence structure, proper grammar, proper spelling, professional style, and...
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...Irrevocable Life Insurance Trust The purpose of this memo is to provide you information regarding life insurance is included in your estate, how irrevocable life insurance trust (ILIT) would keep your assets out of your estate, and how your powers have to be restricted in order for this to work. According to Federal Estate and Gift Tax Section 2042, the proceeds of insurance policies on a decedent’s life are to be included in the insured’s gross estate if they are (1) receivable by the executor or (2) receivable by other beneficiaries and the decedent had any incidents of ownership in the policy at death. On the other hand, if the purchaser retains ownership of the policy and dies before the insured, his ownership interest must be included in his gross estate under Section 2033. Therefore, life insurance policy is includable in someone’s gross estate. Although life insurance policy is included in your gross estate for estate tax purpose, Irrevocable Life Insurance Trust can keep your assets out of your estate because of no incident of ownership of life insurance policy that allow the proceeds of the policy to escape estate tax when you die. Irrevocable Life Insurance Trust is an irrevocable trust holding life insurance to transfer wealth without having to pay estate taxes on the transfer. Normally, an ILIT is considered to have no owner since you have rid of all incidents of ownership. At time same time, you do not have the power to change or cancel the life insurance policy...
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...If you mean the death benefits of the insurance policy, then these funds are generally free from income tax to your named beneficiary or beneficiaries. You may elect to have the insurance company hold on to these proceeds after your death and distribute them to your beneficiary at a later date or in a series of installments. The funds that the insurer holds are earning interest, and when a payment is made to your beneficiary, it may include both principal and interest earned by that principal, or only interest. Although the principal portion of the payment is tax free, the interest portion is taxable to your beneficiary as ordinary income. In some cases, if you transfer the ownership of your life insurance policy to another party before your death for monetary value or other consideration, the proceeds paid to the beneficiary at your death could be considered taxable income to that beneficiary. This is a complicated matter, and you should seek the assistance of a tax professional before completing the transaction. The proceeds of your life insurance policy may be subject to federal estate taxes if you have what's known as incidents of ownership in the policy. If you control the policy in any way--that is, you can cancel it, surrender it, borrow against it, pledge or assign it, or can change the beneficiary--then you possess incidents of ownership in the policy, and the proceeds of the policy may be subject to federal estate taxes when you die. You might postpone these...
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