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 much to invest in gold ?

Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India) Let your motivation dictate the share of the yellow metal in your portfolio Enough has been said and written about gold as an investment option. The latest argument is that the craze for gold among Indian households is endangering our country's balance of payments. The policymakers are busy trying to find ways of discouraging investment in gold, but if households keep the common good in mind, they would be paying the market price for gas cylinders as they do for, say, their mobile phone bills. After all, private decisions are driven by private motives. So, how should a household look at gold from its own perspective? Gold is primarily acquired for its merit as a store of value. Even if the worst crisis hits a family, the gold that it holds could be put to use anywhere in th...

Mirae Asset Ultra Short Term Bond Fund and Mirae Asset Tax Saver Fund

Mirae Asset Mutual Fund   has renamed   Mirae Asset Ultra Short Term Bond Fund , an open ended debt scheme, to   Mirae Asset Tax Saver Fund   with effect from October 18, 2016. Also, Mr. Sumit Agrawal, the co-fund manager of Mirae Asset India Opportunities Fund (MAIOF) and Mirae Asset Great Consumer Fund (MAGCF) ceases to be the fund manager with effect from October 1, 2016. Consequently, MAIOF shall now be solely managed by Mr . Neelesh Surana while MAGCF shall continue to be co-managed by Mr. Neelesh Surana and Ms. Bharti Sawant. ------------------------------ ----------------- Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds Top 10 Tax Saver Mutual Funds to invest in India for 2016 Best 10 ELSS Mutual Funds in India for 2016 1. BNP Paribas Long Term Equity Fund 2. Axis Tax Saver Fund 3. Religare Tax Plan 4. DSP BlackRock Tax Saver Fund 5. Franklin India TaxShield 6. ICICI Prudential Long Term Equity Fund 7. ID...

Good Loan

Why Is It A Good Loan?: Loans against gold are cheaper and better than personal loans as the former are available at lower interest rates. In contrast, the interest rates on personal loans are not standardised and can vary from bank to bank. Also, a personal loan depends on a host of factors including, the borrower's salary, profession and the purpose for which the loan is being taken.      For instance, the interest rate on a personal loan of 5 lakh falls in a wide range of 15-30%. But loans against gold are available for as low as 11%. Secured borrowing such as a loan against gold, investments or property is cheaper because it is backed by some assets, which command a good value at any point of time. If the borrower defaults on the loan, the banks can liquidate the assets to settle the loan account.    Being a secured loan, the risk of default and credit losses is significantly lower in this loan compared to other forms of loan for personal use. Given the lower risk, gold loa...

Save Tax With Mutual Funds

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300       Mutual funds are ideal as long term investment avenues for retail investors. To encourage investments in this avenue, the Government of India offers investors a spate of tax benefits thus ensuring maximum benefit from mutual funds held beyond a year. Sample some of the key benefits and refer to the table for a detailed list of tax rates for different types of schemes ·        Avail deductions under Sec 80C of the Income Tax Act by investing up to a maximum of Rs. 1 lakh in designated Equity Linked Savings Schemes (ELSS). Such investments have a compulsory lock in period of 3 years. ·        First time retail investors in equity with a gross total income of up to Rs. 12 lakh can invest up to Rs. 50,000 in specific MF schemes un...

MNC Funds

An investor is typically suggested a combination of large-, mid and multi-cap equity funds, in varying proportions, to create a well-rounded equity portfolio. It is usually recommended that investors stay away from the more exotic offerings such as thematic funds. However, the consistent strong performance of MNC themed funds may be a compelling reason for investors to make space in their portfolio for these funds. MNC funds invest in multinational companies—businesses that derive a sizeable chunk of their revenue from overseas operations or via exports to foreign countries. Among the MNC-themed funds, only UTI MNC and Aditya Birla Sun Life MNC have been around for a long time. SBI Magnum Global only recently aligned 100% to this theme, moving away from its earlier mid-cap focus with an MNC bias. These funds have shown a high degree of consistency in their returns. For instance, during the past one year of high volatility in the equity markets, the...
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