Life Insurance is defined as an agreement or contract between an insurance company and a policyholder. The insurance company promises to pay a lump sum amount of money in exchange for a premium, upon the policyholder’s unfortunate death or after a set period.
*Tax benefit is subject to changes in tax laws. *Standard T&C Apply
** Discount is offered by the insurance company as approved by IRDAI for the product under File & Use guidelines
A life insurance policy is a scheme that offers guaranteed financial protection for a specific term against the death of the policyholder. The financial protection offered as the sum assured on death of the life assured is payable to the assigned beneficiary of the life insurance policy. The insurer pays out the promised benefit amount either on the death of the life assured (as mentioned earlier) or at the end of the policy term on the date of maturity.
Established in 1956, Life Insurance Corporation of India (LIC) is the oldest and largest insurance company and boasts of a very large customer base. With a claim settlement ratio of 98.62% for the financial year 2020-21, LIC offers a wide range of insurance products catering to various needs of its customers. The claim payout of LIC is great and offers a hassle-free and quick claim experience. The high CSR ratio and the annual premium is an indicative of the quick settlement of death claims and its remarkable performance in the market. There are number of benefits offered by LIC such as the variety of products, easy claim procedure, dedicated customer support, and a simplified purchasing process. The company has a large distribution network comprising of 8 zonal offices, 2048 computerized branch offices, and 1381 satellite offices.
SBI Life, one of the most trusted insurers in India, was incorporated in 2000 and is registered with the IRDAI in 2001. It is a collaboration between India’s largest bank, State Bank of India, and BNP Paribas Cardif. Serving millions of customers across the nation, the diverse range of products offered by SBI Life caters to individuals as well as a group of customers by pension, protection, health, and savings solutions. The claim settlement ratio (CSR) for FY 2020-21 is 93.09%, which indicates the fast claim settlements. The company also offers an easy and convenient way to file a claim through offline as well as online mode. Apart from high CSR, SBI Life Insurance offers various benefits including financial protection to family, hassle-free claim settlement process, flexible premium and payout options, and tax savings benefit as per prevailing laws of ITA, 1961. Another distinguishing feature is that the insurer operates across India through its 947 offices, 18,498 employees, and more than 29000 partner branches.
ICICI Prudential Life Insurance Company Ltd. is supported by ICICI Bank Ltd and Prudential Corporation Holdings Ltd. The company commenced its operations in the financial year 2001. With a claim settlement of 97.90% in FY 2020-21, it has constantly been amongst the top insurers in the Indian insurance industry. The company offers one day of death claim settlement option. To provide comprehensive protection, the insurer offers a wide range of insurance products to meet different customer needs including term insurance, unit-linked plans, retirement, savings, and protection plans. ICICI Prudential Life Insurance has implemented several initiatives to offer cost-effective products, consistent performance of a fund, superior quality service, and an easy, hassle-free claim settlement process to their customers.
Max Life Insurance Company Ltd, founded in the year 2000, is a collaboration between Max Financial Services Ltd. and Axis Bank Limited. It is one of the leading life insurance companies that offer a range of term insurance, participating and non-participating, linked, annuity, retirement, savings, protection, child, and growth plans. With a Claim settlement ratio of 99.35% and a claim paid percentage of 99.35% in FY 2020-21, the company is consistently making the claim process quick and hassle-free for your loved ones. Max Life Insurance has established a PAN India presence and its products are available across 1453 locations. The company offers tax-saving benefits, a variety of life insurance plans to suit different customers’ needs, different premium payment options, and large coverage at low premium rates.
HDFC Life Insurance Company Limited is a collaboration between HDFC Limited, the leading housing finance institution of India, and abrdn plc, a global investment company. Founded in 2000, HDFC Life is a popular long-term insurer in India, offering an extensive range of individual as well as group insurance solutions that meet several customer requirements such as pension, protection, savings, annuity, investment, and health. HDFC Life benefits its customers from its overall presence across the nation with 372 branches and various tie-ups and partnerships. The company offers a simple and hassle-free process of claiming insurance benefits and also provides a facility to settle death claims in 1 day. The claim settlement ratio of HDFC Life Insurance is 98.01% in FY 2020-21, which indicates the quick death claim settlements and reliability of the insurer towards its customers.
IndiaFirst life insurance company, headquartered in Mumbai, is a joint scheme between Andhra Bank (now called Union Bank of India), legal & general and Bank of Baroda., IndiaFirst Life Insurance with a paid-up share capital of Rs. 663 Cr., is one of the youngest life insurers in India. The company offers an extensive range of insurance products ranging from term plans to savings plans which can be purchased as per the financial needs. The main benefits of India First life insurance plans are their easy-to-understand insurance products at low premium rates, dedicated customer support, tax-saving benefits, availability of online plans and offline plans. The company offers a simplified claim settlement process that allows the nominee to file and track their claims easily. The CSR achieved in FY 2020-21 is 96.81% for individual death claims.
Kotak Mahindra Life Insurance Company Limited, established in 2001, is one of the leading insurance providers in India, covering over 34 million lives across the nation. It is a 100% owned subsidiary of Kotak Mahindra Bank Ltd., offering a diverse range of insurance solutions, including annuity, group, protection, retirement, and protection cum savings plans. The claim settlement ratio of Kotak Mahindra Life is 98.50% in the financial year 2020-21, representing the fast settlement of death claims. There are number of benefits involved with buying Kotak life insurance plans are quick claim settlement, transparency in their services, and high customer empathy. Apart from this, it also offers a 24X7 service option to provide their customers with all the information about their queries.
Exide Life Insurance Company Ltd., a profitable and established life insurer started its operations in 2001-02. The company is headquartered in Bengaluru and is 100 % owned by HDFC Life. Exide life insurance focuses on providing long-term protection and savings policies. It provides plans in several, verticals such as savings and investment, retirement planning, and life insurance coverage. Additionally, Exide Life settled over 98.54% of the claims filed in the year 2020-21. Along with easy and quick claim settlement, the company also offers online services, mobile applications, online payment options, and tax benefits.
Tata AIA Life Insurance Company Ltd. is a joint endeavor, formed by Tata Sons private limited and AIA Group Ltd. With a claim settlement ratio (CSR) of 98.02% for individual claims, Tata AIA is one of the most popular insurers which offers a comprehensive range of insurance products from wealthy solution plans to savings plans to protection plans. The company offers a simple and hassle-free claim settlement process through online as well as offline mode. Apart from easy claim experience, one can also avail of tax benefits under sections 80C and 10(10D) of the Income Tax Act, 1961. There are other benefits also that you can receive under Tata AIA Life Insurance plans such as 24X7 customer service, bonuses, and loyalty additions to increase savings, flexibility in choosing policy terms, and premium payment frequency.
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
|Life Insurance Plans||Coverage|
|Term Plans||Pure risk cover|
|ULIPs||Insurance + Investment benefits|
|Endowment Plans||Insurance cover + Savings|
|Money Back Plans||Insurance cover with periodic returns|
|Whole Life Insurance Plans||Coverage for a lifetime|
|Child Plans||To create a corpus for child's education, wedding etc.|
|Retirement Plans||Financial cushion aiding financial independence post retirement.|
Here are the details of the aforementioned plans:
Term insurance is the most basic form of life coverage. It is affordable life insurance that one can buy easily, without any hassles.
Simply put, a term insurance plan offers death cover for a stipulated time period. God forbid, in the event of the sudden demise of the insured during the policy tenure, the insurance provider offers a pre-decided death benefit as a lump sum, as a monthly/ annual pay-out, or as combined benefits to the nominee. The best term plan offers comprehensive coverage at a competitive premium.
A unit-linked insurance plan or ULIP is a type of life coverage plan that offers a perfect blend of insurance & investment. It comes with a long-term investment opportunity along with valuable investment flexibility.
The premium paid towards a ULIP is partly used as a risk-cover for life coverage plan and the remainder is invested in market funds such as debts, equities, bonds, market funds, hybrid funds etc. The selection of the market funds depends purely on the risk appetite of the insurance buyer. Based on that, the insurer invests the amount in the capital market as per the insured's preference.
Endowment plans are also known as traditional life insurance plans. These plans come with an element of saving. As compared to the risk factor of other investment products, the risk involved is lower (so are the returns).
An endowment policy is a combination of a life coverage plan and savings plan. It invests a particular amount in life coverage and the remaining amount is invested by the provider. In case the policyholder outlives the policy term, the insurance provider offers a maturity benefit to him/her. Furthermore, some insurance endowment policies may offer bonuses on pre-specified periods. If applicable, the bonuses are paid either to the policyholder at the time of policy maturity or to the nominee in case of a death claim.
True to its name, this type of life coverage plan offers a stipulated percentage of the assured sum. It is paid back to the policyholder at pre-decided intervals. This payback benefit is known as a survival benefit.
Money back Policy is the best insurance policy for individuals who want their investments to be accompanied by an element of liquidity. Furthermore, these plans are eligible for bonuses as declared by the provider (if any).
A whole life insurance plan offers life coverage as long as the insured lives. There are a few providers that offer life coverage up to 100 years of age. Contrary to the coverage offered by term plans, this plan offers extensive coverage.
The sum assured is computed when the life coverage plan is purchased and is payable to the nominee after the demise of the insured. Along with the sum assured, bonuses (if any) are also paid to the nominee. It is one of the best policies that offer coverage up to whole life at low premiums.
A variant of whole life is available in the market that clubs the benefits of life insurance plans with ULIPs. A whole life ULIP offers extensive coverage along with high returns.
Please Note- In case the policyholder outlives the 100 years of age, the insurer pays the benefit of matured endowment coverage to the policyholder.
A child plan acts as a tool to generate funds for the policyholder’s child. A child plan helps one build a corpus for their child that can be used for the child’s education and wedding. Generally, child plans either provide benefits as installments on an annual basis or a 1-time payout once the insured child is 18 years of age.
In an unfortunate event of the untimely demise of the policyholder during the policy term, immediate premium payment is payable by the insurer. In such cases, some insurer waive off future premiums but the plan continues till the opted policy term.
A retirement plan, also known as an annuity or pension plan, helps the insured accumulate a corpus for their retirement. Typically, retirement plans provide benefits in the form of installments on an annual basis or a 1-time pay-out once insured is 60 years of age. In case the insured outlives the policy term, the plan offers vesting benefit. In case of the insured's demise, it offers the death benefit to the policy nominee.
Note- In case of the insured's demise while the policy is active, the life insurer pays a pre-decided amount to insured's nominee.
If you plan to purchase a life insurance plan, you may have heard of several types of policies such as permanent life insurance and term life insurance. While both the policies offer benefit to the family in case of the unfortunate demise of the policyholder, these plans vary in different ways:
Term insurance plans offer protection for a fixed tenure, whereas permanent insurance has flexible terms, it generally covers until the life assured reaches 100 years of age.
The premium amount paid for a permanent life insurance policy is invested in other investment tools. If the insurance company makes a profit, then a share of it is paid to the life assured as a bonus or investment return. In a term plan, the life assured does not get any returns.
A term insurance plan is a pure protection plan, while permanent life insurance acts as both a protection cum savings plan.
Maturity payout is generally payable in most life insurance policies while it is excluded from the term insurance plans.
Life insurance plans are flexible and term plans do not provide that much flexibility.
Listed below are the best life insurance plans:
|Insurance Plan||Entry Age (Minimum/Maximum)||Policy Term (Minimum/Maximum)||Sum Assured (Minimum/Maximum)|
|Aditya Birla Sun Life Shield Plan||18/65 years||10, 20/30 years||Rs.25 lakh/no upper limit||View Plan|
|Aegon Life i-Term Plan||18/75 years||5/40 years||10 Lakh/ no upper limit||View Plan|
|Aviva Life Shield Advantage Plan||18/55 years||10/30 years||Option A - 35 Lakh/ no upper limit Option B- Rs.50 lakh/ no upper limit||View Plan|
|Bajaj Allianz i-Secure||18/70 years||10/30 years||20 Lakh/ no upper limit||View Plan|
|Bharti AXA Life Premium Protect Plan||18/65 years||10, 15/35 years||25 Lakh/no upper limit||View Plan|
|Canara HSBC iSelect + Term Plan||18/65 years||10/30 years||Rs.25 lakh/no upper limit||View Plan|
|Edelweiss Tokio Life Simply Protect Plan||18/65 years||10/40 years||Rs.25 lakh/no upper limit||View Plan|
|Exide Life Elite Term||21/60 years||10 to 40 years||Min SA: Rs. 50L ; Max SA: Rs. 10 Cr||View Plan|
|Future Generali Flexi Online Term Insurance||18/55 years||10/75 years||Rs.50 lakh/no upper limit||View Plan|
|HDFC Click2Protect Plus||18 /65 years||10/30 years||10 Lakh/10 Crores||View Plan|
|HDFC Life Sanchay||30/45 years||15/25 years||1,05,673/ no upper limit||View Plan|
|ICICI Pru iProtect||20/75 years||10/30 years||3 Lakh/ no upper limit||View Plan|
|IDBI Federal Income Protect Plan||25/60 years||10/30 years||N/A||View Plan|
|India First Life Plan||18/60 years||5/40 years||1 lakh/ Rs.5 crore||View Plan|
|Kotak Life Preferred e-Term||18/75 years||10/40 years||25 Lakh/ no upper limit||View Plan|
|LIC Jeevan Amar||18/65 years||10/40 years||25 Lakh/ no upper limit||View Plan|
|LIC Tech Term||18/65 years||10/50 years||50 Lakh / no upper limit||View Plan|
|Max Life Smart Term Plan||18/60 years||10/50 years||25 Lakh/100 Crores||View Plan|
|PNB Metlife Mera Term Plan||18/65 years||10/40 years||Rs.10 lakh/no upper limit||View Plan|
|Pramerica Life U-Protect||18/55 years||10/30 years||Rs.25 lakh/no upper limit||View Plan|
|Reliance Nippon Life Protection Plus||18/60 years||10/40 years||Rs.25 lakh/no upper limit||View Plan|
|SBI eShield Plan||18/70 years||5/30 years||20 Lakh/ no upper limit||View Plan|
|SBI Shubh Nivesh Plan||18/60 years||5/30 years||75000/ no upper limit||View Plan|
|Sahara Shrestha Nivesh Jeevan Bima||9/60||5/10 years||Rs.30,000/ Rs.1 crore||View Plan|
|Shriram Life Cashback Term Plan||12/50 years||10,15,20 &25 years||Rs.2 lakh/Rs.20 lakh||View Plan|
|SUD Life Abhay Plan||18/65 years||15, 20/40 years||Rs.50 lakh/---||View Plan|
|TATA AIA life Insurance Sampoorna Raksha +||18/70, 65 years||10, 15/40||Rs.50 lakh/no upper limit||View Plan|
Disclaimer: Policybazaar does not rate, endorse or recommend any specific insurance provider or insurance product offered by any insurer.
|Key Features||Benefits Offered|
|Death Benefits||Available under whole life insurance, term insurance, endowment plans, and ULIPs.|
|Investment Component||Available under Term, ULIPs, and endowment plans.|
|Maturity Benefits||Available under whole life insurance, ULIPs, and endowment plans.|
|Tax Benefits||Available under all types of life insurance plans.|
|Riders/ Add-on Covers||A number of rider benefits or add-on covers are available for all the life insurance plans.|
|Coverage Against Various Liabilities||Most of the policies provides coverage against various liabilities of the policyholders like mortgage, loans, and other types of debts.|
|Buying Process||Online and Offline|
|Claim Process||Easy online and offline claim process|
|Physical Paperwork||Only in case of offline policy purchase|
|Premium Payment Term||Single, Regular, or Limited|
|Payout Options||One Time Payout, One Time Lump-Sum Plus Fixed Monthly Payouts, and One Time Lump Sum Payment Plus Increasing Monthly Payouts|
Disclaimer: These are the generic features of life insurance plans and they may vary with insurers.
Life insurance is a legally binding contract between the insurance provider and the life assured. The insurance provider charges a premium amount against the life insurance coverage sought by the insurance buyer. Because the insurer is assuming risk in providing the life cover, the premiums are decided based on the age of the buyer, the sum assured amount, their medical history, tobacco usage, etc.
Life insurance coverage is the financial protection offered to the families of the life assured against his/her untimely death. In the event that the policyholder dies within the policy term and provided all due premiums have been paid, the assigned nominee can claim the death benefit. Once the claim request is investigated by the insurer and found genuine, the benefit payout is done directly to the claimant’s bank account. This benefit amount thus acts as income replacement for the family of the deceased policyholder.
Now, if the policyholder survives till the end of the policy term, that is the maturity date, they are entitled to the sum assured on maturity (also called the maturity benefit). Note that term insurance policies are pure risk covers and, therefore, do not offer maturity benefits. The important thing to note here is that life insurance comes in different formats, and one should thoroughly research the options that are most suitable to serve their future needs.
|Basis||Term Policies||Whole Life Insurance Policies||Endowment Plans||Unit Linked Insurance Plan||Money Back Plans||Pension/ Annuity Plan|
|Overview||Simplest Form||Whole Life with or w/o investment||Protection + investment +guaranteed returns||Protection+investment + Uncertain returns||Protection+ Investment + fixed time income||Offers income till person survives.|
|Policy Term Range (in years)||5-50||Till 100||10-35||10-20||Up to 25||No Fixed Term|
|Maturity Benefits||No Benefits on Survival||At certain age (80-100 years)||Yes, If you survive policy term||Yes, at the end of policy term||Survival Benefits on Maturity||Regular Income till survival|
|Death Benefits (to beneficiary)||Sum Assured||Sum Assured||Sum Assured||Sum Assured||Sum Assured||Few plans offer this|
|Ideal For People who want||Don’t want to pay excessive premiums||To leave a legacy amount||Life coverage & guaranteed returns in future||High income & have good investment sense.||Insurance + earn regular income||To secure retirement by regular income.|
The perks of buying a life insurance policy are beyond protecting the policyholder's family in tough times. Undoubtedly, it is a necessity for a breadwinner to safeguard their dependents in case of their unfortunate and untimely demise, accident or physical disabilities that lead to a loss of income. Having said that, there is a long list of other benefits that make it a must-have.
Sadly, most people are not aware of the many benefits offered by a life plan. All they care about are the death and disability benefits. However, there are plenty of other benefits offered by life policies such as maturity benefits, tax benefits etc.
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
Let's take a look at the benefits:
Till date, many people don't know that life policies can also be used as loan collateral. Based on the type of the life insurance policy and the surrender value, the policyholder can opt for a loan from a bank or NBFC (Non-Banking Financial Company) as per applicable terms and conditions.
Loan Amount: Generally, the loan amount is a percentage of the surrender value of the life policy and it can go up to 90%. There are few companies that only allow for a loan up to 50 percent of the total premium amount paid by the policyholder.
Most individuals are unaware of the online payment benefit (the payment mode chosen by an individual drastically affects the premium of the policy). As a matter of fact, an company's administrative costs considerably go down when an individual opts to pay his premiums online.
This is because there is no paperwork-related cost involved. Also, the life insurer is able to save a significant amount on the commission, which they pay to the agents for offline life insurance buying and renewing.
Please Note- This discount varies from company to company.
Almost every life insurer offers various payment periodicities to its policyholders- annual, half-yearly, quarterly or monthly mode.
If a policyholder chooses to pay the policy premium on an annual basis, the company can use it for investment purposes that automatically means more profits and benefits for the company.
Once a policyholder chooses the payment periodicity, this discount is often already included in the premium rate charged by the life insurer.
There are some life insurers that provide an option for policyholders who own a business. In the case of a policyholder's demise, their business partners can purchase the policyholder’s share without any hassles. In this scenario, the business partner will simply have to sign an agreement with the life insurer and the pay-out received after selling the policyholder's share will be given to their dependents.
However, it's important to understand that the nominee or the dependents of the policyholder won’t get a stake in the company.
For paying a life policy premium, a policyholder is eligible for a tax rebate under Section 80C of the Income Tax Act 1961. Irrespective for oneself, their spouse or their children, the premium paid for parents and in-laws is exempted.
This benefit is offered by all the life insurers - be it private sector life insurers or public sector life insurers.
Additionally, the maturity benefit of life policies also qualifies for tax deductions under Section 10 (10D) of the Income Tax Act, 1961.
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
The market has many insurance products such as the term plans , endowment plans, money back plans and ULIPS’. The tax saving instruments is also opulent and people take insurance for Rs 25 lakh, Rs 1 crore and so on. However, simply picking a random figure is not the way to buy an insurance policy.
Primarily, it depends upon the age of the person, the number of dependents, liabilities, and so forth. Let us just assume that a person falls between the age bracket of 18-24 years of age and is single and unmarried. This means that he does not have many responsibilities. The financial liability could be a loan or his parents depending upon him. Now under such a situation, a small insurance plan would be bought. In case the person has a good source of income, then he could also opt for large cover as the liabilities will increase once married and there will be additional responsibilities upon the shoulders.
Now if a person falls between the age bracket of 24-33 years of age then ideally the person will be married and he also needs to protect the interest of his life partner. Such a person should buy the life insurance plan immediately and not delay any further. The life insurance cover will differ across various stages of life.
The life insurance cover should be such that it covers all outstanding liabilities provides money to your spouse and covers the expenses of children education, marriage, etc. When you choose the cover do calculate the yearly family expenses and your liabilities as well. Now multiply the sum with the number of years you are looking forward to supporting the family.
The life insurance cover should be enough at any point in time to take care of the family today and tomorrow.
Here are some basic steps you should follow to choose the right kind of policy for yourself:
A life insurance premium is a payment that is to be paid to enjoy the life insurance benefits. The premium is paid annually; however, the mode of premium payment can be selected from monthly or half-yearly also. This premium also helps to grow the cash value of the insurance.
The insurance company determines the premium payable by the policyholder to the insurance company. Having said that, the buyer gets to select the term of the policy and the sum assured.
In order to calculate the sum assured, the insurer takes various factors such as your lifestyle, occupation, number of dependents, finances, sum assured etc. into consideration.
Note- There is no premium calculator that can calculate the worth of human life.
At the time of applying for a policy, the life insurer will ask for the below-mentioned KYC documents:
This is necessary to estimate the sum assured or cover that would be offered to the insured. In most of the cases, the life insurers offer a cover up to 20 times the proposer's annual income. The standard income proofs include:
Insurance companies would ask for address details of the applicant. The following documents can be used as address proof:
One can provide the following documents as ID proof:
Some of the aforementioned documents would be considered as age proof as well. However, below is a comprehensive list of documents that can be used as age proof:
Apart from the KYC documents, here are some other documents that an applicant would have to submit at the time of buying the policy:
There are different plans offered by the life insurance companies in India. It sometimes becomes a task to select the best plan from various options and avail the same at best coverage and a pocket-friendly premium.
Listed below are some key pointers that will help you choose the best life insurance policy:
Filing a claim and getting the assured amount can be a cakewalk if all the necessary steps are taken care of. It is important to have the right approach to file a claim. Here's how nominees of the policyholder or policyholder can file a claim in India under the following scenarios:
Inform the Insurance Company: Contact the insurer as soon as possible on their toll-free number or inform them over email. It is always preferable to inform the insurer directly over a call to initiate the process.
Share Important Details: The beneficiary or the claimant while lodging a claim with the life insurer needs to share all the important details like:
If the policy has been purchased offline, then the insurer would have provided a claim intimation form at the time of the policy purchase.
If it is an online policy, it is simple to apply for the claim settlement through claim form online.
Claim Processing: In case of accidental or natural death, the beneficiary or the nominee needs to submit all the supporting documents to the life insurer as a part of the claim process.
The claim support team will verify the insurance documents and claim declaration. In some cases, they might ask the beneficiary to submit a few other documents.
Documents to be submitted
Note- If someone other than the nominee files the claim, the insurance company can ask for the legal title of succession.
Approval and Pay-out
Aforementioned are the basic set of documents that are required to process a claim.
Here are a few other documents that the insurer can ask for (if need be) -
If the insured outlives the policy term, he/she will be eligible to avail policy maturity benefits. However, the insured must make sure the policy is ongoing and that all the premiums have been duly paid.
Here is a simple process to file a maturity claim with minimal paperwork.
When the policy is about to mature, the life insurer generally intimates the policyholder at least 1-2 months in advance. All the details regarding the maturity date, maturity amount, and discharge voucher are provided to the insured.
The discharge voucher (similar to a receipt) has to be signed by the policyholder in the presence of the witnesses. The voucher is then sent back to the insurer along with the original policy bond, on the basis of which the policy maturity benefits are provided.
In case the policyholder has nominated another individual or entity for the policy, then the nominee must sign the discharge voucher to the insurer, in order to receive the claim amount.
Points to Remember
These riders offer add-on benefits offered by the insurers that help to enhance the base coverage. However, without knowing the types of riders available in the market, one shouldn't randomly opt for the same just for the sake of increasing the cover amount of the life plan.
Choosing the right rider is as crucial as buying a life insurance plan. After all, no one wants to regret an insurance decision. That's why one must take time and expert's advice before opting for a rider.
Here are some of the rider options available for policyholders:
This rider benefit covers major critical ailments like cancer, heart attack, kidney failure, stroke, coma, paralysis, etc. As the coverage may differ from insurer to insurer, it is important to check the list of illnesses covered by the company.
The life insurer offers the rider benefits upon the diagnosis of the covered critical illness. Though many of the above listed critical illnesses may not cause immediate death, the treatment could cost a bomb. Under this rider, the insured can use the sum assured to pay for the treatment expenses. The only condition is that the policyholder will have to survive the waiting period.
As no one can ensure 100 percent guarantee against a critical illness, this rider can be opted by:
If the insured is unable to pay the premium due to any disability that leaves him/her with no income, the life insurance policy will be terminated. In such cases, the insured wouldn't be offered any compensation. In such a situation, how will their family manage their finances without a regular source of income?
In such a situation, waiver of premium rider acts as life savior, as all the future premiums of the policy will be waived off and the policy will remain in force.
In case the premiums are not paid due to the death or accidental disability of the policyholder, the premium for the base policy and riders will be waived off and the policy will continue.
While this rider can be opted along with critical illness and accidental total and permanent disability rider, the insured can opt for it separately. As uncertainties can't be predicted, one should consider buying this rider if they are a daily commuter or work on on-site civil work that involves physical work.
With this rider, in case of the accidental death of the insured, the nominee will receive the basic sum assured amount along with the additional accidental death benefit. In many cases, the policyholder doesn’t pass away on-the-spot, so most of the insurance companies set a time period after the incident to extend the offered coverage.
Let’s say, if the policyholder passes away after 100 days of the accident, the nominee will still receive the sum assured. That's why it is imperative to check the life insurance policy clause carefully at the time of opting for a rider.
As accidents can happen anywhere, anytime, everyone should ensure the financial future of their family. While anybody can opt for this rider, it is a must-buy for those who:
Due to total temporary or permanent disability in case of an accident, if the insured is unable to earn a daily income, this rider provides financial assistance to their family in the form of a monthly income. The rider benefit may vary plan to plan and it is offered for a pre-decided time period.
For instance, some companies offer rider benefits for 5 years to 10 years from the occurrence of the accident. In case of the death of the insured during the policy term, the beneficiary would receive the outstanding sum assured amount.
This rider is important to buy for the individuals who:
The figures in the below table are as per the annual report of IRDAI 2019-2020:
|Insurer||Total Number of Claims||Claims Paid||Claims Repudiated||Claims Rejected||Claims Unclaimed||Death Claim Settlement Ratio|
|Aditya Birla Sun Life||5162||5035||108||0||0||97.54%|
|Canara HSBC OBC||1276||1252||22||0||0||98.12%|
Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
To understand life insurance completely it is important to know the basic terminologies that are often used within the plan. Sometimes you might not be aware of some terms and refrain from buying the plan.
Let us help you to understand the given below key important life insurance terms with brief explanations of each:
Anyone who buys the life insurance plan and pays the premium is referred to as the policyholder. An individual might own the policy, however, may or may not be the life assured.
In simple words, the individual who is protected or insured is known as a life assured. In case of demise of the life assured, the beneficiary will receive the insurance sum. For example, when a husband buys the life insurance policy for his wife then he is the policyholder and the wife is the life assured.
The person that is nominated by the policyholder is known as a nominee. The nominee will receive the life insurance payouts along with other benefits in case of any eventuality. The nominee is also referred to as the beneficiary. A nominee is declared when the policy is being bought. Generally, the policyholders’ immediate family members such as the spouse, children and parents are declared as a nominee who is directly financially dependent upon you.
The duration for, which the life insurance plan provides coverage, is known as the policy tenure sometimes also known as policy term. On the premise of the type of life insurance policy and the terms and conditions of the insurance provider, the life insurance policy tenure differs.
It is the amount that you will pay to keep the life insurance plan active. In case you are unable to pay the life insurance premium sum either before the due date or under the grace period, then the policy will lapse. The life insurance premium sum depends on factors such as the policy term, the age of the life assured, lifestyle habits, etc.
It is the guaranteed sum that the beneficiary or the nominee will receive when the life assured has passed away. Most of the times, the choice to arrive at a sum assured is upon the premise of the financial loss that might incur due to the death of the life assured. At the time of buying the life insurance plan, the policyholder chooses this sum, which is then paid to the nominee if the life assured passes away during the policy term.
The death benefit is the sum that is paid to a nominee when the life assured has passed away during the policy tenure. It is to be noted that sum assured and death benefits are two different terms. This implies that the death benefit could be equivalent or higher than a sum assured as it could involve the rider benefit too.
The sum that is paid to the policyholder when the policy tenure is completed is known as the maturity benefit.
When the policy gets terminated because of non-payment of the premium amount even after the grace period is known as a lapsed policy. There are life insurance companies that offer the facility to revive a lapsed policy only when the outstanding premiums are duly paid by the policyholder.
It is essentially the extension given by the insurance provider to the policyholder after the due date of the premium payment. When the policyholder pays the premium sum then the cover of the plan continues.
When the premiums are not paid during the grace period the policy gets lapsed. In case you wish to continue with the plan then you are provided with an option of re-activating the lapsed plan, however, it should be completed with a certain time frame after the end of the grace period. This is known as the revival period.
In case you are not comfortable with the terms and conditions of the plan it can be returned within a certain timeframe mentioned in the policy documents. This is known as a free-look period. After deducting stamp duty charges, medical examination, proportionate risk premium, the premium sum will be refunded.
The riders are additional benefit than enhances the coverage of the plan. These rider benefits are optional and enhance the financial safety to secure the family against any unforeseen event by paying an additional premium sum.
When the life assured passes away during the policy term, the nominee will file a claim to receive the death benefit. This process is known as the claim process.
Certain situations remain uncovered within a life insurance plan. In case the claim is made on such exclusions then no benefit is provided by the insurance company.
To get insured from the comfort of home, an individual can buy life insurance online from Policybazaar. Follow these simple steps to buy life insurance online from Policybazaar.
Step 1- Choose male/female and enter your full name.
Step 2- Enter your correct phone number, and click on view plan and select your age.
Step 3- Answer 4 simple questions to get more accurate quotes.
Yes or No
Step 4- Select the best life insurance plan from the options that are displayed. For suggestions and help, the insurance buyers can choose ‘get free advice.
Step 5- Choose and compare different life insurance plans on Policybazaar. An individual can choose the personalised plan options as well.
Step6- Once you choose the plan, you can pay the premium or speak to the customer care representative. They will help you to make an informed choice.
Step 8- Finally you will need to pay the premium. Once all the steps are completed, the policy documents will be emailed to you on the registered mail ID.
Bharti AXA Life Insurance Company Launches Guaranteed Wealth Pro
Published on 17th February 2022
Bharti Axa Life Insurance has introduced Guaranteed Wealth Pro on 09th February 2022. It is a holistic solution that includes life insurance and a cost-effective and smart savings option. It also provides flexibility as tax-free income beginning from the second year.
It is meant to assist save for future events or demands across several life phases, for instance, retirement or early retirement, as well as children's education. It can also assist with a lavish vacation or ensure financial independence by providing supplemental income, helping to pursue goals without worries. This plan ensures the family's security removing future unpredictability.
Let us see some of the salient features of this plan:
Two Payment Systems
1) The 'Endowment' option, allows you to receive lump-sum payments under the program. Allows for the preparation of future events and life objectives.
2) One may choose between short-term, long-term, and perpetual income using the ‘Income’ option. Also, there are two early income options.
Other Riders and Benefits
There are other riders available as well. Accidental Death Benefit Rider, Hospital Cash Rider, Term Rider, and Premium Waiver Riders are offered with the package. Customers can choose the premium payment period or policy term that best suits their requirements and inclinations.
In the event of the demise of the insured within the policy's term, the nominee will be eligible for all the policy’s payment choices. The conditions apply, the policy must be in effect and all premiums are cleared until the demise.
eKYC Service – A Technology-Driven Initiatives by Bajaj Allianz
Published on 16th February 2022
Bajaj Allianz stated it would keep engaging with technology-driven modifications for creating smooth experiences for customers. Its eKYC along with other endeavors are geared towards this goal.
The life insurance business has undergone a radical change in the previous 20 months. The company has launched several initiatives in response to shifting business conditions and client demands in the meantime.
Insurance, now becoming a pull product, has resulted in rising demands. Customers want effortless regulations, timely issuance, and material in their native languages to assist them in making the best decision possible.
Chief Operating Officer of Bajaj Allianz Life, Kayzad Hiramanek has stated they attempt to provide the customers with numerous services. The efforts are to ensure a consistent experience, resolving the demands and problems of all the customers.
The company believes to keep up with changing times. Traditional methodologies must be automated for evolving customer needs. Digitization will decrease paperwork, ensuring a smooth and efficient process. Digital services supported by powerful backend support and great customer service (front end) will assist strong prospects.
Bajaj Allianz Life has created cutting-edge digital initiatives, such as "Smart Assist," to assure client service efficiency. They have also launched services on WhatsApp and other digital alternatives. These efforts had a 38 percent increase in total written premium and a 22 percent increase in their renewal premium in the year to December FY’22.
Smart Income Plan Introduced by Exide Life Insurance
Published on 10th February 2022
The Exide Life Smart Income Plan introduced by Exide Life Insurance Company provides an individual with a duo of life insurance and savings plans. This plan offers regular income throughout the payout period. Also, offers assured life cover during the policy's term.
The Smart Income Plan, at the commencement of the policy, gives the choice between two alternatives for survivor benefit: Enhanced Maturity or Enhanced Income. The policyholders can choose the way they want to receive benefits during the payout period, depending upon financial circumstances.
Enhanced Maturity: Customers can receive a stable source of earnings annually during the payout period. Also, accrued bonus and Terminal Bonus (as present) are given at the maturity of the policy.
Enhanced Income: Customers will receive a stable source of earnings annually at maturity. Also, a bonus during the payout period and a Terminal Bonus (as present).
According to current tax legislation and the riders selected by policyholders, they may be entitled to the following tax benefits: Section 80C applicable to the basic premiums paid and Section 10(10D) dealing with the proceeds of the insurance.
Chief Strategy Officer of Exide Life Insurance, Sanjay Tiwari states, regular income is essential. This insurance is a one-of-a-kind solution. It protects against unforeseen mishaps and provides regular savings, depending upon the option selected. The policyholders will also be entitled to any relevant incentives.
Budget Reforms Stimulates Life Insurance Uptake
Published on 9th February 2022
The demand for life insurance has increased as a consequence of COVID-19 on health-care and resultant hospitalizations. The sum assured in India has reached worldwide levels, reported The Economic Times’ survey of 2021-22.
Noting the endeavors to digitalize the banking and health-care ecosystems MS Sreedhar, MD & CEO, Royal Sundaram General Insurance commented on the issue. He stated that digitization will help increase the demand for general insurance through increasing public knowledge.
The medium to long-term investment in key sectors will result in job growth, improved connectivity, and consumption. The Union Budget 2022 focuses on laying the groundwork for long-term economic prosperity.
Mahesh Balasubramanian, Managing Director, Kotak Mahindra Life Insurance Company, stated that there are concerns about inflationary threats as a result of rising commodity prices. This in turn has swelled gasoline and food prices.
The budget deficit of 6.9% for FY 22 and a target of 6.5 percent for FY 23 may appear large. Given the global challenges after the pandemic, markets believe it is necessary to promote development.
The intention to stick to the budgetary glide path set forth last year provides some solace. The whole surplus fiscal imbalance will be spent on capital expenditures, ensuring a multiplier effect on the economy.
There is general confidence that this year’s economic stimulus has exceeded expectations. We must be wary of the global geopolitical scenario. This might lead to greater imported inflation and increasing interest rates, putting economic bets at risk.
Effect of COVID-19 on Indian Insurance Market and Policyholders
Published on 28th January 2022
Since March 2020, insurance companies globally have been raising the premiums of term insurance plans. The probable reason for this price hike is a sudden increase in the death rate due to COVID-19.
Apart from that, term insurance rates were due for a correction because premiums in India have been on the low side compared to global markets over the past 10 years. Regardless of this rise in rates, term insurance premiums in India remain lower than in other countries.
ICICI Prudential Life Insurance and HDFC Life Insurance hiked their term insurance prices in December 2021, the most recent wave of rises in this area. Other insurers have stated that they would boost their prices in the coming months.
Furthermore, in the aftermath of the pandemic, life insurance firms have reinforced their underwriting standards, with income levels, educational credentials, and policyholders' COVID-19 history. These are some of the crucial elements in the insurance application review process.
With all these required elements, medical examinations are now required preliminary for allocating insurance, especially for high-value policies.
Kamlesh Rao, MD, and CEO of Aditya Birla Sunlife Insurance have stated that medical rewriting is required for 97% of the plans as better analytics are available and claim experience is growing significantly. This is because it is an important aspect of integral evaluation.
Life Insurance As a Robust Financial Defence: SBI Life’s Financial Immunity Survey 2.0
Published on 28th January 2022
In many ways, the Covid-19 epidemic has had an impact on both enterprises and people's lives significant ways. People have become acutely aware of the financial risks associated with major illnesses and fatalities. In other ways, it has served as a wake-up call, emphasizing the necessity of physical and financial security.
SBI Life commissioned NielsenIQ (India) to conduct the 'Financial Immunity Survey 2.0’, which reached out to 5,000 respondents across 28 significant cities across India.
The survey focussed on:
The demand for financial protection has gained even more value in the context of job insecurity, pay reduction, and health worries. 79 percent of Indians have seen their incomes reduced, with only 44 percent of citizens seeing their incomes return to normal. According to the survey's findings, 35 percent of Indians are still facing income cuts. Furthermore, Indians' top three concerns are high medical/treatment costs (59 percent), Instability in the job market (59 percent) and health risk of family members (58 percent). These findings suggest that Indians are just as concerned about their financial security as they are about their physical security.
According to the report, three out of four Indians have boosted their savings, since January 2021, with 50 percent planning to engage in savings/investments/insurance. At the same time, 70% of Indians believe that life insurance should be increased as important life milestones are reached.
Life insurance is an excellent instrument for both protection and assisting an individual in developing a disciplined saving habit, which will eventually result in the construction of a financial safety net for the family. Knowing why life insurance is crucial for your financial plan might assist you in selecting the appropriate coverage for your needs. Given that the current global health crisis is not a one-time occurrence, it is even more important to purchase appropriate life insurance to protect the financial future of family members.
How Did Max Life Insurance Company Avoid Costs of Rs.1 Crore by Taking Up Cloud?
Published on 21st October 2021
Digitization is currently a big priority for Organizations and staying competitive is a requirement now. Cloud sets the base for digitization and innovation as well as an application portfolio that effortlessly manages workloads and decreases outages.
For all new workloads, as a principle, Max Life Insurance has adopted a "cloud-first approach". Applications that are part of the core/legacy are excluded based on readiness assessment in terms of cost/benefit of migration, complexity, and risk of business disruption, and technical feasibility.
The insurance provider has adopted a multiple and hybrid cloud strategy that leverages the industry-leading capabilities of available cloud-native solutions while being economical and portable to avoid lock-in.
To see the challenges, a detailed strategy for cloud was developed and it is approved for delivery between Financial Year’21 – Financial Year’25. For application modernization and cloud migration, the Max Life Insurance partnered with Azure and AWS as cloud service providers to modernize and migrate the cloud migration roadmap.
"The objective is an overall modernization of the end-to-end application portfolio, making it more strong, scalable, and malleable to enhance the user-customer experience for business teams," Ghai, the Chief Digital and Information Officer of Max Life Insurance said.
Ghai outlined the benefits that Max Life Insurance has gained by investing more in cloud technologies:
According to Ghai, Max Life intends to reach 45% in the cloud by FY12 and 70-80% by FY15. Additionally, they could also provide near real-time backup with modem stack with near-site auto data replication. With all this, Max Life Insurance Company will reduce the maximum data loss and restore time to 24 hours for all-important apps till FY’22, he added.
Postal Life Insurance: Now Receive Policy Bond on the Digilocker and Settle your maturity amount Easily
Published on 19th October 2021
The digital version of Postal Life Insurance policy bonds is launched by the Department of Posts in association with Digilocker, called an e-PLI bond. E-PLI bond is likely to help citizens by providing easy accessibility and fast claim settlements. Now, all the new and old
Postal life insurance endorsers can easily download the digital copies of their policy bond by logging into the Digilocker using mobile phones. As per the Department of Posts, the policyholder has the benefit of presenting the digital version during the maturity settlement process at the Post Office. Postal Department will consider the digital copy as a valid policy document. Similarly, the e-PLI bond can also be used as proof, for implementing any changes in the policy documents such as nomination, change of address, etc., without the hassle of carrying the original copy.
PNB Starts Exiting from Canara HSBC OBC Life Insurance
Published on 14th October 2021
For the proposed transaction, the second-largest public sector bank of India, Punjab National Bank, has commenced the sale of its whole share in Canara HSBC OBC Life Insurance through posting a proposal to assign a legal advisor.
PNB had merged with the United Bank of India and Oriental Bank of Commerce on April 1, 2020. Following the three-way merger, PNB had matured into a promoter stakeholder with its 23% of share in CHOICE (Canara HSBC OBC Life Insurance). Canara Bank holds 51% and HSBC Insurance (Asia Pacific) Holdings holds 26% in the life insurance company, which is an affiliate company of PNB.
This year in May, PNB had announced that it will sell its share in CHOICE at an opportune time, based on the market conditions and available options”.
Insurance Regulatory and Development Authority of India Norms
The plan to exit CHOICE is in line with that norm of insurance regulator IRDAI in which commercial banks cannot hold more than a 10% share in two life insurers at one time.
After the amalgamation of OBC, PNB had vital stakes in two life insurers – PNB MetLife Insurance which holds 30% share and Canara HSBC OBC Life holds 23% share.
PNB Is Selling Entire Stake in Canara HSBC OBC Life Insurance
Published on 11th October 2021
There has been a significant development in the insurance industry. It was last week only when HDFC Life has acquired the Exide Life Insurance Company and similar developments are in the cards for coming days.
PNB taken on a stake of the life insurance sector after the merger of the former Oriental Bank of Commerce (OBC) in the previous fiscal year. Punjab National Bank (PNB) intends to sell a stake in 23 percent in Canara HSBC OBC Company, said special correspondent Anurag Shah.
Punjab National Bank is now thinking to assign a legal consultant for the same. Punjab National Bank (PNB) is looking for selling its stake of 23% in Canara HSBC OBC Life Insurance. This is major progress as many of the banks have been merged with the bigger banks.
IRDA has a rule that if an organization is promoting 2 organizations, it cannot have more than a 10 percent stake.
He said that PNB as well contains a 23 percent stake in its MetLife (PNB) and the insurance provider’s valuation is calculated at Rs.7, 000 crores.
We can expect more such transactions in the coming days. Bank of India can make withdrawals from its subsidiary insurance provider. In the same manner, the Union Bank of India may also exit. These were major progress expected in the insurance companies, Shah said.
Shah said the valuation could be estimated at Rs.6, 500-7,000 crore. PNB will earn Rs.1, 500-1,700 crore from this transaction. Almost all other life insurance providers will also see this impact.
The Exide-HSBC life insurance deal had a significant impact on other listed insurers. After the Exide-HSBC life insurance policy, their reputation also started growing.
Other big deals in the life insurance sector are also expected after this deal in the coming days. In the insurance sector, several foreign players are in the queue to raise their ante in the insurance companies in such a way that FDI has risen to 74%. Such activities will continue to stir up the insurance sector in the coming days or months.
Max Life Insurance Procures 10.8% Market Shares Among Life Insurance Providers
Published on 7th October 2021
It was announced on 30th September 2021 that the AUM i.e. Assets Under Management of Max Life Insurance has crossed over 1 lakh crore as of 23 September 2021. Over the past 11 years, private insurers have seen a growth of 6X.
With an utmost focus on financial security, product innovation, and digitization, providing a remarkable customer experience has resulted in a noteworthy increase of six times in its annual AUM in the last 11 fiscal years.
According to the data of the Insurance Regulatory and Development Authority of India (IRDAI), the AUM of the life insurance industry as of March 2020 was Rs.39 lakh crore. Out of these, Life Insurance Corporation of India remains the biggest insurance provider with assets of approximately 31 lakh crore. Whereas SBI Life is at second position with assets of 1.62 lakh crore. The AUM of Max life was 69,109 crores.
Max Life said that its AUM have grown by 32% in FY 20-21 and 22.9% in the current fiscal year, as of September 23, 2021.
According to Max Life, during fiscal years 20-21, new business insurance premiums (individual and group combined) have grown by 22% and individual adjustment first-year insurance premiums have increased by 19%. Based on these growth figures, Max Life has a 10.8% market shares among private life insurance providers while considering adjusted individual first-year premiums.
India Looks for $ 109 Billion Valuation in Insurer’s Mega IPO
Published on 24th September 2021
The Indian government is looking for a evaluation of between ₹ Eight lakh crore and ₹ 10 lakh crore for LIC, which will be the country's largest Initial Public Offering.
The Indian government is cogitating to vend 5% - 10% of the company that could mobilize between ₹ 400 billion to ₹ 1 trillion, according to the people with knowledge of the matter. Prospective evaluation is based on an incipient talk.
PM Modi's government is going forward with LIC's IPO for helping to bridge the growing bridge gap because their goal is to elevate ₹ 1.75 trillion by March through divestments. The sale of LIC is the key to achieving this goal of the government. To ensure multifarious and sturdy demand across the investors, India may allow Foreign Direct Investment in LIC.
Mother of All IPO
Jyoti Ray, deputy vice present at Angel Broking, said the sale could be" mother of all IPO's in India so far". Though there will be hunger, the sale is seemingly to happen towards the end of this financial year. which means it "Could affect the secondary market and drain liquidity to some extent", he said.
Last week, Bankers met the Indian Government and officials of LIC to get the sale process start formally. The government has chosen 10 banks for the IPO arrangement which includes Kotak Mahindra Bank Ltd., Goldman Sachs Group Inc., ICICI securities Ltd, and JP Morgan Chase & Co.
PNB To Sell 23% Stakes in Canara HSBC OBC Life Insurance
Published on 23rd September 2021
PNB is the promotor of The PNB’s life insurance company Canara HSBC Oriental Bank of Commerce Life insurance, after the merger of Oriental Insurance company. PNB or Punjab National Bank is planning to trade 23% of the stakes in Canara HSBC Oriental Bank of Commerce (OBC) Life Insurance due to IRDAI norms. As per the IRDAI guidelines,
if one insurer is promoting the other two companies, in such case it cannot hold stakes above 10 %. Also, PNB holds 23% in PNB Metlife where the valuations of the insurer are estimated at around Rs. 7000 Crore. With this deal, PNB is likely to receive Rs 1500 to 1700 Crore. Other insurers have also witnessed this type of impact such as Exide -HSBC Life Insurance had a bigger effect on other registered insurers. Their valuations are also getting increased after the deal of Exide HSBC Life Insurance.
Open a PMJDY Account and Avail Cover of Up to Rupees. 2 Lakhs
Published on 22nd September 2021
The Government of India took a major step in the direction of financial inclusion in the country by launching the Pradhan Mantri Jan-Dhan Yojana ( PMJDY) in 2014.
Under this scheme, poor people can open their accounts in any of the nationalized banks or post offices at zero balance. Apart from various other benefits, people with Jan Dhan Account can avail of insurance cover of up to Rs.2 lakhs. However, one has to link his/her Aadhar card with a bank account to get the benefits of this scheme.
One only needs to provide one of the following officially valid documents to open an account:-
Its process will be that the person will have to go to the bank/post office and fill in all the information asked in the form.
All Indian citizens are eligible to apply for PMJDY and if someone has an already existing bank account, can also avail themselves of the advantages of Jan Dhan Yojana without opening another bank account. All one needs to do is to apply to the concerned branch for providing RuPay Debit Card. By using the card, one can avail of all the benefits offered under PMJDY.
Punjab National Bank Invites Bids: Begins Exit from Canara HSBC OBC Life Insurance
Published on 21st September 2021
The second-largest public sector bank, the Punjab National Bank has begun exiting its complete stake in Canara HSBC OBC Life Insurance (CHOICE). PNB has started inviting bids for appointing a legal advisor to carry on the proposed transaction.
At an early stage, Oriental Bank of Commerce had a share of 23% in CHOICE. But only after the three-way amalgamation of the United Bank of India and Orientale Bank of India last year in April, Punjab National Bank took over the position of promoter shareholder with around 23% shares in CHOICE.
Canara bank has 51% stakes while HSBC (Asia Pacific) has 23% stakes in the life insurer. After the OBC amalgamation, ONB holds major shareholdings in 2 ventures, that is, PNB MetLife with 30% and Canara HSBC OBC Life (CHOICE) with 23 % shares.
Premium Charges Cut Down by Aditya Birla Sun Life Insurance, Expect Premium Rates to Be Cheaper
Published on 20th September 2021
Officially reducing the premium charges to its ‘ABSLI DigiShield Plan’ by up to 15%, Aditya Birla Sun Life Insurance (ABSLI) declared a shift in its premium charges. Unlike the normal insurance plan (so the company claims), the policy can be tailored to suit each insured's specific protection requirements
The policy offers a unique flexibility range that decreases the sum assured at a pre-defined retirement tenure. Moreover, the plan lets policyholders have a guaranteed recurring income from 60 years onwards through the Survival Benefit Options which are part of the policy. According to the company, this will allow customers to adjust their coverage according to their current liabilities and their stage in life.
LIC picks 4% equity stakes in Bank of India
Published on 9th September 2021
Bank of India, a state-owned bank, claims that the Life Insurance Corporation of India (LIC) has picked nearly 3.9 percent (15,90,07,791) equity shares of Bank of India through the open market transaction.
LIC’s stake in the Bank of India has increased from 3.17 percent to 7.05 percent, which is equivalent to 28,92,87,324 equity shares. As per the Securities and Exchange Board of India (SEBI), any company has to inform stock exchanges when they hold more than 5 percent shares in any listed company.
As per Qualified Institutional Placement (QIP), Life Insurance Corporation of India acquired nearly 39.22 percent (15,90,07,791) equity shares offered in the issue of August, 30. Through QIP, government shareholdings in the State Bank of India came down from 90.34 percent to 82.50 percent.
UPI Autopay is Now Available on ICICI Prudential Life Insurance Premium Payments
Published on 19th August 2021
ICICI Prudential Life Insurance has collaborated with the National Payments Corporation of India (NPCI) to offer customers the option of Unified Payments Interface(UPI). Customers will be able to purchase insurance policies online and pay premiums from home. This is a significant development in the context of the COVID-19 pandemic.
After this collaboration, ICICI Prudential Life has become the first life insurance provider to offer the UPI auto-pay facility which simplifies payments.
People can connect their bank accounts to UPI Auto payments to pay premiums for buying life insurance plans. Customers can also set up UPI Autopay online on their phones to pay for regular renewal payments online. This facility will ensure that premium payments are made on time. This implies that customers can enjoy the benefits of their policies with no interruption.
The statement states that customers can enable UPI Autopay on any of their favorite UPI apps, such as Paytm or BHIM. This feature can be enabled by e-mandate for the ICICI Bank as well as other major banks. Customers can also choose the frequency at which premium payments are made, whether monthly, quarterly, half-yearly, or one-time.
SBI Life: CA Emerald Exits SBI Life Insurance Company By Selling its Stake
Published on 17th August 2021
Carlyle Group, private equity has withdrawn SBI Life Insurance Company Ltd. by trading its share through the open market transactions. SBI Life Insurance June 2021 quarter data represents 1.9% of the stake in the company’s shareholding. The deal hoisted at Rs 2,147 Crores.
On Thursday, according to the deal data of BSE, CA Emerald- Investments, a unit of Carlyle Group, sold scripts of Rs. 1.9 Crores at an average rate of Rs 1,130 for one script. The shares of the company were elected separately by other insurers such as Max Life Insurance Company Ltd, HDFC Standard Life Insurance, Morgan Stanley Asia Singapore, Bofa Securities Europe, Integrated Core Strategies Pte Ltd. Some mutual funds have also picked the shares such as SBI Mutual Fund, ICICI Prudential, Kotak Mahindra, Nippon Indian Mutual Fund, Pioneer Investment Fund, and Franklin Templeton Mutual Fund. On Friday, the BSE counter of SBI Life Insurance Company Ltd opened at Rs. 1,147 and closed at Rs. 1,134.85.
Life Insurance Companies Record a Drop of 11% YoY For July Business Premiums
Published on 13th August 2021
After a slight YoY increase in new business premiums in June (following a dip in May because of the second wave of the Covid-19 pandemic), the NBP for the life insurance industry has dropped again in July.
This is mainly due to India's insurance giant, Life Insurance Corporation (LIC), which saw a contraction in business. In July, life insurers, 24 total, earned an NBP of Rs 20,434.72 million, a decrease of 11 percent YoY over last year. Private insurers reported a 7.53% increase in NBP in July compared to last year. However, LIC's NBP contracted almost 21% YoY to Rs 12,030.93 million.
Life insurers experienced a weak first quarter (Q1) due to the second wave. However, the business has picked up private insurers. Supply-side restrictions remain, and they are expected to decrease as soon as restrictions are lifted. Due to the second wave, the life insurance industry saw a significant increase in death claims during Q1FY22.
Companies had to take a big hit in profitability and set aside funds to offset the effects of higher claims. Although the claims burden has decreased since Q1, insurers are still concerned about the possibility of a third wave.
Burman Family To Sell 25% Stakes In Aviva Life
Published on 12th August 2021
Burmans plan to sell their 25% stakes in Aviva Life. The deal will see the Burman family stake drop to 26% from the current 51% in Aviva Life Insurance Co.
The billionaire family, rated amongst the top 20 richest in India, with an estimated net worth of around $10 billion according to Forbes rich list, is set to pare its stakes as part of a strategy to raise capital for the core consumer goods business.
Founded 137 years ago, the Burman-family owned Dabur is known for brands, including Vatika hair oil, Real fruit juices, and Hajmola digestive candy, among other fast-moving consumer goods (FMCG). The family’s private holdings range from restaurants to home healthcare to life insurance.
Discussions and negotiations between the Burmans and Aviva Life are going on for a year but no conclusion has been taken out yet. Insiders claim that if all goes well this time, then the deal is likely to be announced within two months.
Pramerica Life Insurance simplifies death claim settlement by setting up a helpdesk for families impacted due to floods in Maharashtra
Published on 11th August 2021
Pramerica life insurance is a joint venture of Prudential international insurance holdings ltd. and DHFL Investments Limited. It is committed to cater to its customer’s financial requirements such as protecting their child’s future, savings and retirement planning, and creation of wealth goals. Pramerica life insurance has a PAN India presence through several distribution channels that address the needs of a customer.
The company headquartered at Gurugram, India, has set up a different ‘Claims helpdesk’ to provide pro-active services to the policyholder’s beneficiaries affected due to the flood in Maharashtra. With 2500 employees, the insurer is dedicated to offering support to grieving families by providing a hassle-free claim settlement process. To ease the process for the bereaved families, the company has also simplified the process of claim documentation in case of death claim settlement. Some of the documents are required by the company such as death certificate by any local government authority, or by Government hospital, death claim form, an ID of a claimant, policy documents (if available), address proof, and bank account details to make sure that claims are paid to the correct recipient. The company helps its customers to make an informed decision that helps in meeting their short- and long-term future objectives. You can also reach out at email@example.com or Toll-free number: 1800 102 7070 in case of any queries.
40,000 Agent Advisors To Be Hired Digitally This Fiscal: Says Max Life
Published on 10th August 2021
As the world is moving towards digitalization rapidly, so is the private life insurance companies. Max Life recently announced that the company has recently digitized its entire recruitment process. Also that they are planning to hire around 40,000 agent advisors online in the current fiscal.
Launched last year, this new digital process was introduced to enable quick, seamless identification, verification, and onboarding of prospects. Max Life claims that this digitalized process of recruiting has not only helped bring in top-quality talent to the business but also ensured greater agility, speed, and effectiveness in the entire onboarding journey.
The company has also launched its channel named “Max Life Ace Talk”. It aims to showcase inspirational stories of existing Max life agent advisors to the new joining advisors. The main aim is to make the new joiners aware of the advisor’s journey in the company and take inspiration from it.
New Business Premium Of 3,345 Crores: SBI Life Insurance Registers
Published on 9th August 2021
SBI Life insurance has registered a New Business Premium of 3,345 crores for the quarter ended on June 30, 2021. From 3,059 crores for the quarter ended June 30, 2020, the regular premium has increased by 29% since the last year.
If we discuss SBI’s standing from June 30, 2020, to June 30, 2021,
SBI Life’s protection new business premium stood at 428 crores for the quarter ended June 30, 2021, marking a growth of 46%.
SBI Life’s protection individual new business premium stood at 132 crores for the quarter ended June 30, 2021, marking a growth of 75%.
SBI Life’s profit after tax stands at 223 crores for the quarter ended June 30, 2021.
SBI Life’s AUM also continued to grow at 32% to 2,31,559 crores as of June 30, 2021, from 1,75,355 crores as of June 30, 2020.
The company has a diversified distribution network of 2,12,821 trained insurance professionals and a wide presence with 947 offices across the country. SBI Life Insurance is one of the leading life insurers in the country and shows promising growth in the future.
Edelweiss Tokio Life Insurance Company Launches Total Protect Plus
Published on 6th August 2021
Edelweiss Tokio Life Insurance Company launched a new plan Total Protection Plus on 03rd August 2021. It is a comprehensive life insurance plan that provides additional benefits that can help you achieve your financial goals.
In its additional benefits, the plan offers Live Long and Child’s Future Protect benefits.
While the Live Long benefit is a survival benefit scheme that provides policyholders protection and income benefits that begin during their non-working years. A person can choose to start at 60 or 65 years old, after which he/she will receive income equal to a percentage of the base amount assured.
On the other hand, through Child's Future Protect benefit, a parent can choose to have his/her child's coverage increased during the kid's growing years. The nominee receives an additional payout if the parent passes away when the child turns 25.
Some of the Key Features of this Plan
SBI Life Insurance Quarter 1: Decline of 43% in net profit for COVID claims
Published on 5th August 2021
SBI Life, one of the leading life insurance companies in India has reported a decline of 43% year-on-year basis for the quarter March in its net profit i.e., Rs 223 Crores. The strident decrease in the company’s core was on account of Rs. 440 crores additional reserves created by the life insurance companies towards the claims related to COVID that might be observed in the future quarters.
As per the life insurers, 1.28 times increase is observed in the claims from the last quarter of FY to the June end quarter that shows the distressing effect of COVID on the country. Now the company has reported a strong come back after the second COVID wave on business at the quarter as 9 % year-on-year growth is observed in their new business premium to Rs.3,350 Crore. After April and May 2021, some states removed COVID restrictions because cases and deaths started to fall, and at that time assets of SBI life rises 32% to Rs. 1.75 lakh Crore on 30th June.
HDFC life adopts calibrated approach on term policy sales!
Published on 4th August 2021
HDFC Life CEO Vibha Padalkar has recently announced that HDFC is taking a calibrated approach on issuing term policies to keep costs under control and price risk better. She also said that the company will provide adequately for a possible third wave and is monitoring the situation closely.
Under the calibrated approach, HDFC Life has come up with the plan that they will continue to write business in customer profile they are comfortable with. However, categories where medical tests are not possible or have factors like comorbidities, then they will stay cautious and adopt a calibrated approach.
HDFC Life claims that as the risk factor involved is on the higher side when it comes to health zone, growing term is not difficult but it has to be the amount of risk they are comfortable taking.
HDFC Life’s standalone profit fell 33 percent to Rs 302 crore in the first quarter of FY22 from a year earlier after an increase in COVID-19-related provisions. Hence, to overcome the dip, HDFC Life has decided to follow a calibrated approach on term policy sales.
COVID – 19 Deaths: As Per IRDAI, Only 14% Life Insurance Claims Made
Published on 2nd August 2021
The Insurance Regulatory and Development Authority of India (IRDAI) has mentioned that claims against Life Insurance have been made just for 14% of deaths because of COVID-19.
In the second wave of COVID-19, India recorded approximately 3.91 lakh deaths due to COVID-19. Out of these COVID-19 related deaths, only 55,276 life insurance claims were received, according to the apex regulatory body of the insurance industry of India.
As per a report of Indian Express, IRDAI said that out of these 55,276 claims made against deaths due to COVID-19, 88% or 48,484 claims were settled by the insurance companies.
Future Generali Life Insurance Company is Now Associated with DigiLocker
Published on 2nd August 2021
Future Generali Life Insurance Company is now associated with ‘DigiLocker’. This is a facility of the digital locker. It is provided by the Government and enables all Indian citizens to store their documents in scanned and digital format. In other words, it is a digital platform under the Digital India initiative. The main aim of this initiative is to go paperless and offer a digital account over the cloud to every Aadhar cardholder.
This account makes one access their documents on a digital platform.
Here are the key features:
Key Features of DigiLocker:
Authentic documents are legally at par with original documents.
One can sign-up using the phone number and validate with the help of an Aadhar card.
Pay 29 Rupees A Day And Get 4 Lakh Rupees: LICs New Scheme For Women
Published on 12th July 2021
From the several investment schemes introduced by LIC over the period, the recently announced woman-oriented scheme is attracting attention of all.
Aadhar Shila scheme is an exclusive plan for women aged between 8 to 55 years old. The investors need to invest just 29 rupees per day to get an amount of 4 lakh rupees at the time of maturity. A guaranteed return endowment plan, it offers a minimum amount of 75,000 rupees and a maximum amount of 3,00,000 rupees as per the premium payments.
Interested women can invest in the scheme for a minimum term of 10 years and the maximum term is 20 years. They also have the choice to pay their premiums on a monthly, quarterly or half-yearly basis.
Declare Nominees/Beneficiary While Purchasing Life Insurance
Published on 7th July 2021
It is very important to appoint a beneficiary/nominee for all the assets, insurance and investment policy. Choosing the right nominee in a life insurance policy ensures that the proceeds go to the rightful heir, in case of unfortunate demise of the life assured during the policy tenure.
As per the industry experts, generally child below the age of 18 years is not considered eligible to handle the claim amount. Thus, the policyholder needs to assign a custodian. It is wise to appoint the spouse or parents as a nominee for the life insurance policy.
Standard Life Decided To Sell OFF 3.46% Stake Held In HDFC Life
Published on 30th June 2021
The UK-based firm Standard life has decided to sell off its 70 million shares through a block deal. The sale price has been fixed at ₹658-₹678 per share. The decision
was made to raise approximately ₹4606 crores in the near future. JP Morgan India and BoFA Securities India issued a term sheet to disclose the update.
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