Insure’ yourself a guaranteed return – The Hindu

Insure’ yourself a guaranteed return – The Hindu

Non-participating insurance plans offer a guaranteed return of 4.5-6%, but if you exit early, you will lose money.If not with everything, at least with your investments, you can have predictability.While many brush aside ‘guaranteed’ products of insurers as ‘low’ return investments, in this article, we see how products in this category are actually attractive.The non-participating traditional savings plans of insurance companies offer returns of 4.5-6% and are tax-free.Further, the advantage also comes from the fact that you can lock-in this rate for the next 20-30 years.There are no tools in the market today with assured return for such a long period of time. The recently-launched product under the guaranteed plans category — ‘Sanchay Plus’ from HDFC Life — gives about 6.3% return under two of its plans — the highest in the market now.

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Maharashtra private hospitals duel over cancer insurance claims – The Times of India

Maharashtra private hospitals duel over cancer insurance claims – The Times of India

The Maharashtra government and private medical centres empanelled with the state-funded MPJAY insurance scheme are at loggerheads over “misuse” of cancer treatment packages. In the first such crackdown, the government has rejected over a hundred insurance claims for radiation therapy at private hospitals across the state to curb alleged profiteering. Cancer specialists have hit back at the action — taken over two months — saying they are being pushed to use “outdated, suboptimal and cheaper” treatment plans under MPJAY, which caters to 2.25crore poor families in the state.

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How to pick the right cancer plan – The Hindu Business Line

How to pick the right cancer plan – The Hindu Business Line

With treatment being very expensive, investing in the right policy will help cushion the financial blow
Cancer not only worsens an individual’s physical health but also impacts the financial condition of the patient. The incidence of this disease is rising rapidly; according to a World Health Organization report, by the end of 2020, every Indian family will have at least one cancer patient.

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Who said there are no guarantees in life? – The Hindu Business Line

Who said there are no guarantees in life? – The Hindu Business Line
Non-participating insurance plans offer a guaranteed return of 4.5-6%, but if you exit early, you will lose money.If not with everything, at least with your investments, you can expect predictability.ere are no guarantees in life? – The Hindu Business Line

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Do senior citizens need term insurance? – Deccan Chronicle

Do senior citizens need term insurance? – Deccan Chronicle

A term insurance policy is a working person’s preferred financial protection instrument. Upon their death, the policy will pay a sum assured to their nominees whose long-term income needs will be taken care of. However, the same financial challenges may dog someone who has retired or is on the verge of retirement. Senior citizens may also have liabilities that are far from being settled — such as a home loan. They may have dependent family members — parents, spouse or children — with income needs that may outlast their own lifespans. It’s also plausible that their savings after the age of 60 are insufficient to sustain their dependents.
Life expectancy, too, is on the rise, almost doubling from 35.4 in 1950 to 68.3 in 2015. Women, often the nominees of life insurance policies, have a higher life expectancy of 70 years versus 67 for men, as per WHO data. Income needs increase with life spans, and therefore life cover may be required even at a late-life stage.

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Life insurance industry to focus on millennials, digital-human interface – Live Mint

Life insurance industry to focus on millennials, digital-human interface – Live Mint

The topic of the second panel discussion at Mint’s insurance conclave was: Life insurance 20-20: Issues for the next 20 years. On the panel were: B.Venugopal, managing director (MD), Life Insurance Corp. of India (LIC); N.S. Kannan, MD and chief executive officer (CEO), ICICI Prudential Life Insurance Co. Ltd; Prashant Tripathy, MD and CEO, Max Life Insurance Co. Ltd; R.M. Vishakha, MD and CEO, IndiaFirst Life Insurance Co. Ltd; and Vibha Padalkar, MD and CEO, HDFC Life Insurance Co. Ltd. The discussion was moderated by Monika Halan, consulting editor, Mint. Here are the edited excerpts
In my view, it is not correct to say that we have focused only on investment-based products because ultimately we believe that somebody who buys insurance has a purpose of risk cover that is paramount for any product. But it has been the case in our country; of course, the experience in other countries would be different. The focus has been on products which sometimes offer returns also because we had still not come to a stage where one was ready to buy a pure term insurance plan. That was the culture for a very long time before the industry opened up. After that, there has been some shift because the first unit linked product came in the year 2000 or 2001. In the initial enthusiasm, we also sold at a large number. But as you mentioned, perhaps not all of them were sold the right way. So many people burned their fingers but people also made money. But our realisation is that, as a life insurer, our primary responsibility is to ensure coverage. Today things have changed substantially. Look at the product mix that LIC has; out of total Rs25 lakh crore of life fund that we have, hardly Rs43,000 crore is of unit linked. But for everyone else, the ratio is 51-49. I think out of Rs6.60 lakh crore fund sizes for all the companies put together, Rs3.34 lakh crore is unit linked. Now whether this product mix is right or wrong, it is ultimately for the customers to decide. But as an institution, we would like to develop a product mix that is ultimately the choice of the customer. It is not that we have abandoned unit-linked products. Right now we have only one unit linked product; there is another one in the offing. This year, we have consciously decided to focus a little more on some of those areas where perhaps we have not spent as much time.

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Listing helped the non-life insurance industry become more transparent – Live Mint

Listing helped the non-life insurance industry become more transparent – Live Mint

The topic of the second panel discussion at Mint’s insurance conclave was: Non-life insurance 20-20: Issues for the next 20 years. On the panel were Antony Jacob, managing director, Apollo Munich Health Insurance Co. Ltd; Bhargav Dasgupta, managing director and CEO, ICICI Lombard General Insurance Ltd; Rakesh Jain, executive director and CEO, Reliance General Insurance Co. Ltd; Warendra Sinha, MD and CEO, IFFCO Tokio General Insurance Co. Ltd; Alice G. Vaidyan, chairman and MD, General Insurance Corp. of India; and Deepti Bhaskaran, editor, personal finance, Mint. Here are the edited excerpts:nce industry become more transparent – Live Mint

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Insurance sector in India: the journey so far and predictions for the next 20 years – Live Mint

Insurance sector in India: the journey so far and predictions for the next 20 years – Live Mint

The Indian insurance industry started during the British time with only private sector participation to begin with. There was a proliferation of insurance companies then and that resulted in the formation of the Legislation Insurance Act of 1938, to regulate the sector. We then nationalised the life insurance industry in 1956, followed by nationalisation of the general insurers and then on the basis of the Malhotra Committee report, the government decided to liberalize the sector and allow private sector participation. When we allowed the private sector to participate, naturally, the issue of regulation had to be brought in and the IRDAI Act was passed.Starting from 2000-2001, we have seen the private sector flourish and the insurance sector has grown—with more players, higher turnover, newer products, new and better distribution channels and greater visibility of the sector.

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It’s sensible to add critical illness cover to your health policy – The Hindu

It’s sensible to add critical illness cover to your health policy – The Hindu

A hospitalisation policy is a health insurance cover under which you can claim the actual cost incurred. In insurance parlance, it is called an indemnity policy. A benefit policy, on the other hand, pays the sum insured (SI) as a lump sum when an insured event takes place, regardless of your expenditure. Critical Illness (CI) policies are benefit policies in health insurance under which claims can be made on diagnosis of one of the illnesses specified under the policy. They provide additional financial support for the high cost of treatment of these illnesses and for the prolonged recovery period when earnings may be affected.
Policy renewal
The advantage of taking a CI policy in addition to a hospitalisation policy is that you can make a claim under both policies for the same event. After this, the CI policy comes to an end while the hospitalisation policy can be renewed.Most general insurance companies in India offer CI policies as do specialised health insurance companies.

They cover several named major illnesses, including coronary heart disease, cancer, kidney failure, stroke brain surgery and so on.

In addition, specialised policies for cancer are available from many companies; Future Generali Total Insurance Solutions has a heart cover alone. Many term life insurance policies offer a CI cover as an optional rider and they can be cheaper to buy although the list of illnesses could also be restricted.

Coming to the sum insured (SI), you can choose from ₹1 lakh to ₹50 lakh. If your CI cover is a rider on a term life policy, then the maximum sum assured (SA) on the rider would depend on the main SA of the policy as there are restrictions on rider premium in relation to the main policy premium.

Like any health policy, a CI policy has standard exclusions. Any pre-existing condition is excluded for an initial period of 3 or 4 years.

No claim is admissible for 90 days after inception of cover and other usual exclusions are any critical illness in presence of HIV infection and/or any AIDS, congenital diseases, abuse of drugs and alcohol and any treatment arising from pregnancy, miscarriage, maternity or birth.

The entire sum insured may not apply on each of the critical illnesses listed. There are claim limits for different illnesses and these vary by company as well.

There is also a survival period clause for payment of claim.

If the insured is diagnosed with one of the critical illnesses listed in the policy, he has to survive for a specified number of days after the diagnosis for the claim to be payable. This varies between policies and illnesses. In addition, a typical CI policy has no death benefit.

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‘Insure’ yourself a guaranteed return – The Hindu

‘Insure’ yourself a guaranteed return – The Hindu

While many brush aside ‘guaranteed’ products of insurers as ‘low’ return investments, in this article, we see how products in this category are actually attractive.The non-participating traditional savings plans of insurance companies offer returns of 4.5-6% and are tax-free.

Further, the advantage also comes from the fact that you can lock-in this rate for the next 20-30 years.

There are no tools in the market today with assured return for such a long period of time. The recently-launched product under the guaranteed plans category — ‘Sanchay Plus’ from HDFC Life — gives about 6.3% return under two of its plans — the highest in the market now.

Every insurer has a laundry list of products under the savings category with many choices under ‘guaranteed’ products. Edelweiss Tokio Life Income Builder, Aditya Birla Sun Life SecurePlus Plan, Tata AIA Guaranteed Monthly Income, Tata AIA Smart Income Plus, Aviva Life New family Income Builder and Max Life Guaranteed Income Plan, are a few. In all these plans, the basic structure is the same — you pay annual premium for 5/6/10 years and, at the end of the PPT (premium paying term), the income pay-outs start — either immediately or one/two years after the PPT and continue for 10/12/24 years.

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