Skip to main content

Insurance Basics - Part II

What is the difference between Agent & Broker ?

 

An agent can represent only one insurer and do business for him.

A Broker can represent more than one insurer and do business for them. Detailed regulations have been framed by IRDA for Brokers and they govern them. Brokers are allowed to do insurance both Life and Non-life with more than one insurer.

 

What is Rider ?

 

A rider to a policy provides for some additional benefit or making certain stipulations.

 

What is waiver of premium ?

In waiver of premium, the insurer waives his right to receive premiums, otherwise payable if the insured becomes disabled. The proposer should specifically ask for this benefit and pay necessary extra premium and the insurer should grant it.

 

What is "claims concession" and "extended claims concession" ?

 

If premiums have been paid for a period of 3 years but less than 5 years; and in case of death of policyholder within 6 months from the date of First unpaid premium (FUP), the full sum assured is paid to the beneficiaries. This is called "claims concession". If the premiums have been paid for 5 years and above, the claim concession is extended for a period 12 months. This is called "Extended claims concession". In both the above cases, unpaid premium that has fallen due/will be falling due in the policy year of death will be recovered.

 

What is FUP (First Unpaid Premium) ?

 

FUP means, First Unpaid Premium i.e. immediate next premium that would fall due. Eg. If the last premium paid in respect of a policy, (where premium is payable half-yearly) is that due on 01.06.2000, the FUP in respect of this policy is 01.12.2000 i.e. next half-yearly due date of premium.

 

What is premium ?

 

The price paid by the insured to secure the benefit of insurance is called premium.

 

What is extra premium/rider premium ?

 

The additional premium paid for securing the benefit of insurance where the proposer on account of Health reasons/Occupational Hazard is called extra premium. Extra premium is also charged for granting the benefit of Accident Benefit, Premium Waiver Benefit, etc. Such premium is called rider premium. Accident benefit, Premium waiver benefit etc. are riders and at the option of the proposer these benefits are granted.


Popular posts from this blog

How to gauge the risk profile of your mutual fund portfolio?

MUTUAL funds are considered to be an investment option for those who do not generally devote a lot of time to monitoring and managing their portfolios. Investors experience both good as well as tough times as far as mutual fund investments are concerned. But while evaluating the portfolio of their equity mutual fund holdings there are a few points that one should check to know about the level of risk that they are facing. Often there are situations where there is a higher risk than what was estimated initially. Here are a few ways to evaluate various risk levels. Individual holding exposure : The portfolio of the equity fund where one has invested or plans to invest needs to be scrutinised to see whether the risk levels are such that could lead to a larger volatility in the holdings. Depending upon this factor and the risk taking ability of the investor the choice about a particular fund as an investment should be made. One key point to watch out is whether there is a large ex...
Read more

Tata Fixed Income Portfolio Fund dividend

Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India)       Tata Mutual Fund has announced dividend under the dividend option of Tata Fixed Income Portfolio Scheme B2 Plan A-DQ, Tata Fixed Income Portfolio Scheme B2 Reg-DQ and Tata Fixed Income Portfolio Scheme B2 Direct-DQ. The record date has been fixed as August 29, 2013. Happy Investing!! We can help. Call 0 94 8300 8300 (India) Leave your comment with mail ID and we will answer them OR You can write back to us at PrajnaCapital [at] Gmail [dot] Com --------------------------------------------- Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C. Invest Tax Saving Mutual Funds Onlin...
Read more

NRIs and direct taxes code (DTC)

DTC Proposes To Do Away With Special Provision That Allows NRIs Liberalised Duration Of Stay In Country      THE new direct taxes code could bring a large number of global Indians under the tax net, as it does away with a provision that allowed individuals to escape tax in any country citing double tax avoidance.    The new legislation, introduced in Parliament on Monday, says an individual shall be a resident of India in any financial year if he is in the country for more than 59 days in that year, and has been has been India for more 365 days in four preceding financial years. A number of Indian industrialists including Vedanta's Anil Agarwal and Essar's Ravi Ruia have acquired non-resident status over the years.    The DTC has only attempted to clean up the provision in line with the laws globally. A phrase "being outside India" in the existing income tax law exempted individuals who stay outside the country for six months from paying taxes. This was prone ...
Read more

Stick to Good Fund Manager who Can Multiply Your Investment

A manager may be the difference between the best and worst funds. Here's how you can find the right one    Does a mutual fund manager make a difference to your investment? The answer may not be as easy as you think, since most best-performing mutual funds have moved away from individualistic fund management to process-driven methods, limiting the scope of an individual's role in investment decisions. In fact, many fund managers would speak at length about how the "system" their fund house has in place makes their task of picking stocks easy even though it restricts their freedom. Still, the question is important, especially after recent reports that the Securities and Exchange Board of India ( Sebi ) may ask fund managers to disclose to investors their track record of managing money. Let us take a look at the universe of large-cap funds over the past five years. According to Value Research, an independent mutual fund tracking firm, the topper in the category is DSP...
Read more

Health insurance guide - Part I

Insurance, by definition, is morbid. What if I die suddenly? What if my home caught fire? What if I had to undergo expensive medical treatment? What if something that I thought happened only to others befell me? Insurers, who work with large samples, calculate the probability of such an event and, hence, the possibility of them having to pay out a sum of money to mitigate, to the extent possible, the effects of that disaster. However, the possibility of you undergoing some kind of expensive medical treatment during your lifetime is far more likely than you dying suddenly or your house burning down. Given that costs at private healthcare facilities, where you are most likely to land up, is high, and, doubling every four years 10 months or so, the rest of your money life could easily go out of whack if you had to incur such expenses. Just 12 per cent of India's population is covered with some sort of health insurance. Pared to the bone, for a comparatively small price, health insu...
Read more
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now