Life insurance is a financial resource for your family and loved ones in case of your death. It is a cover which allows your family to maintain a standard to living as they are currently, and meet their financial obligations. It also serves as an effective investment and tax saving tool.
Insurance plans are available for
As individuals it is inherent to differ. Each individual’s insurance needs and requirements are different from that of the others. Insurance Plans are policies that talk to you individually and give you the most suitable options that can fit your requirement.
Single Premium Endowment Plan
New Endowment Plan
New Jeevan Anand
Limited Premium Endowment Plan
NEW MONEY BACK PLAN – 20 YEARS
NEW MONEY BACK PLAN – 25 YEARS
NEW BIMA BACHAT
For the Better Life We have:
What is Life Insurance?
Life insurance is a guarantee that your family will receive financial support, even in your absence. Put simply, life insurance provides your family with a sum of money should something happen to you. It thus permanently protects your family from financial crises.
Need for Life Insurance
Today, there is no shortage of investment options for a person to choose from. Modern day investments include gold, property, fixed income instruments, mutual funds and of course, life insurance. Given the plethora of choices, it becomes imperative to make the right choice when investing your hard-earned money. Life insurance is a unique investment that helps you to meet your dual needs – saving for life’s important goals and protecting your assets. Let us look at these unique benefits of life insurance in detail.
Insurance Planning is one of the most important pillars of Financial Planning. This is because Life Insurance is the only tool which can fulfill financial commitments in case of untimely death of the bread earner of the family. Thus having an appropriate life cover is important.
Why Insurance Planning is required?
Nuclear family structure: Earlier, people could depend on their extended joint family system to take care of their near and dear ones in case of their absence. But now a days, the culture of joint family is decreasing. The share of families with more than 5 members has come down from 64% in 1990 to 56% in 2005 and is expected to decrease further.
Increasing lifestyle diseases: People these days are prone to many diseases as a result of which the longevity of life is also reduced. Thus it gets important to take an appropriate risk cover and give your family a financially secure future.
Loans & Liabilities: Insurance policy also helps to cover up one’s loans and liabilities. The house one buys for our shelter, we would never want to let it go. Thus an insurance policy can help one to cover the loan liabilities.
How much Life Cover should one take? Calculating how much life insurance you need is one of the most important financial decisions you will ever make. It should never be an isolated decision depending only on how much of a premium you can afford.
Life Insurance needs can be calculated in the following methods:
Income Replacement Value (Rule of Thumb) This is one of the basic methods of insurance calculation and is based on your current annual income. Insurance needs = annual income X number of years left for retirement. Let’s say your annual income is Rs 5,00,000. And you are 45 years old with 15 more years for retirement. In this case your insurance cover equals Rs. 5,00,000 X 15 = Rs 75,00,000. Another way in which income replacement works is to multiply the annual income by 10 (also known as Income Replacement Multiplier).
What is Life Insurance?
General Insurance is known as a Non-Life Insurance company, they have wide range of insurance products to covers such as properties against fire, burglary, natural climates etc., personal insurance such as Accidental and Health Insurance, and liability insurance covers legal liabilities. There are also other covers such as Errors and Omissions insurance for professionals, credit insurance etc. The non-life companies also offer policies covering machinery against breakdown, Marine Cargo policy covers goods in transit including by sea, air and road. Further, insurance of motor vehicles against own damages due to accidental and Fire and theft and also cover third party cover and its mandatory Indian law. Workmen’s Compensation Policy etc. For instance, there are package policies available for householders, shop keepers and also for professionals such as doctors, chartered accountants etc. Apart from offering standard covers, insurers also offer customized or tailor-made ones.
Types of Insurance: Fire Insurance:
The term fire in fire insurance is interpreted in the literal and popular sense. There is fire when something burns. In other words fire means visible flames or actual ignition. Simmering/ smoldering is not considered fire in Fire Insurance. Fire produces heat and light but either of them alone is not fire. Lightening is not a fire but if it ignites something, the damage may be due to fire.
Under section 2(6A) Insurance Act 1938, the fire insurance business is defined as follows: “Fire insurance business means the business of effecting, otherwise than independently to some other class of business, contracts of insurance against loss by or incidental to fire or other occurrence customarily included among the risks insured against in fire insurance policies”.
Example: The following are the items which can be burnt/ damaged through fire:
We can cover under Fire Polices: Office, house, Factory, Godowns Buildings, Electrical installation in buildings, Contents such as plant & machinery and equipment and it’s accessories, etc. Goods (raw materials, in–process, semi–finished, finished, packing materials, etc.) in factories, godowns and in the open area, Furniture & fixture and fittings, office equipment such as computer, printer etc., Pipelines (including contents) located inside or outside the compound, etc.
Fire policy can take on reinstatement value or market value.
This policy covers property contained in business premises, stocks owned or held in trust against the risk of burglary. It also covers cash, valuables, securities kept in a locked safe or cash box in locked steel cupboard on specific request.
Machinery Breakdown (MBD) Insurance:
The unexpected occurrences of Machinery Breakdown can damage machinery and cause expensive production delays or interrupt cash flow. This policy covers the breakdown of machinery due to various perils. This policy is indispensable for businesses that operate using a large number of machines. The breakdown of a single machine may bring the operations of the factory to a standstill. This policy covers monetary costs involved in restoration or replacement of machines.
Money Insurance: Businesses handle cash, and bankers’ drafts, making this form of insurance essential.
The Insurance Covers:
Money while in transit in the personal custody of the insured or his employee. Money in premises during business hours Money in a safe or strong room outside business hours. All Risks Insurance: This policy covers valuables like Jewellery, ornaments, paintings, work of art, and similar artifacts of sentimental values. The policy provides cover on a wide basis and covers loss or damage due to fire, riot & strike, burglary, house breaking, theft and accidental loss or damage. Cover is not freely granted on account of its vulnerability to losses and moral hazard.
Contractor’s All Risk Insurance:
Construction being a risk prone industry, accidents, including personal injuries and property damage are very frequent, and these accidents may bust your plans, schedules and costs. A CAR policy covers the physical damage to materials to be used for the project – whether in transit, in storage or forming part of the contract works. There is also an ancillary cover up to moderate limits for third party liabilities. It is a main feature of the CAR policy to cover those who have an immediate material interest in the project. That includes the owner, the contractor and usually all sub-contractors.
Marine Insurance Policy A contract of marine insurance is an agreement whereby the insurer covers against losses incidental to marine adventure.
There is a marine adventure when any insurable property is exposed to maritime perils i.e. perils consequent to navigation of the sea. The term ‘perils of the sea’ refers only to accidents or causalities of the sea, and does not include the ordinary action of the winds and waves. Besides, maritime perils include, fire, war perils, pirates, seizures and jettison, etc.
There are four types of Marine Insurance
Hull Insurance – Covers the insurance of the vessel and its equipment i.e. furniture and fittings, machinery, tools, fueled. It is affected generally by the owner of the ship. Cargo Insurance – Includes the cargo or goods contained in the ship and the personal belongings of the crew and passengers.
Freight Insurance – Provides protection against the loss of freight. In many cases, the owner of goods is bound to pay freight, under the terms of the contract, only when the goods are safely delivered at the port of destination. If the ship is lost on the way or the cargo is damaged or stolen, the shipping company loses the freight. Freight insurance is taken to guard against such risk.
Liability Insurance – Is one in which the insurer undertakes to indemnify against the loss which the insured may suffer on account of liability to a third party caused by collision of the ship and other similar hazards. In a contract of marine insurance, the insured must have insurable interest in the subject matter insured at the time of the loss. Insurable interest is not required to be present at the time of taking the policy.
What is Life Insurance?
It is often said about retirement ‘It’s nice to get out of the rat race, but you have to learn to get along with less cheese’
More often than not, less cheese ends up with no cheese at all! Retirement planning is the important task of deciding how one will live once he/she retires. Retirement planning involves the consideration of a number of factors, including at what age you hope to retire, how much money you will need to cover the living expenses coupled with the things you plan to do once you’ve retired, and where your money will come from. In short, retirement planning is planning your finances for the period of life after you stop working.
Need for retirement planning:
Let’s start by looking at why retirement planning is needed in the first place:
Longer Life Span
The advancement in the medical field as well as improvement in the quality of life has meant that Indians are now living a longer life than before. India’s average life expectancy is slated to increase to over 75 years by 2050 from the present level of close to 65 years. Lifespans have been increasing due to better health and sanitation conditions in the country. However, the average number of years of employment has not been rising commensurately. The result is an increase in the number of post-retirement years without regular income
Decline in the Joint Family System
With the Joint family system breaking down into nuclear families, more and more people prefer to live on their own thus leaving the elders to cope for themselves.
Rising Medical Expenses
With an increase in age, the need for medical expenses also rises and very often there is inadequate financial support to meet the high expense.
A lot of people desire to retire much earlier than planned. However this is possible only when adequate retirement planning is done so that the individual has the backup of a safe and stable financial future when he/she plans an early end to their working life.
Why Retirement Planning is necessary?
Longer retirement years:
Average life spans are increasing in India and hence, the retirement years are likely to be longer..With the rise in inflation you will need more money to live in comfort.
Financial independence post retirement: Earlier, people could depend on their children to take care of them post retirement. However, as a modern individual, would you not like to maintain your financial independence post retirement also? Inflation: Inflation is an important factor. Post retirement, you need a regular income to ensure that your expenses can be met.
How to plan for retirement? Here is a small way to do your Retirement Planning:
Estimate your current annual expenses. Adjust the annual expenses to account for factors impacting if you were to retire today.