Insurance Plans Reviews and Articles

Life Insurance Simulator Launched by Canara HSBC OBC

Posted in life insurance by kishosingh on August 7, 2011

Recently, Canara HSBC Oriental Bank of Commerce launched Life Insurance Simulator (LIS). The policy is aimed to make the customer make aware of importance of financial planning.

An online news portal – economictimes.indiatimes.com about business and economy writes about Life Insurance Simulator, “LIS is an interactive financial need assessment software that takes the customer through a series of simple steps to assess the amount he requires for each of his needs and if his current savings and investments are adequate to fulfill them. LIS is available in English, Hindi, Punjabi and Kannada.”

So, Life Insurance Simulator of Canara HSBC OBC is being recognized as the interactive financial need assessment software. It assesses the amount of requirement for each need of customers. The LIS is available in many languages like English, Hindi, Punjabi and Kannada.

Further it quotes a statement of Rishi Mathur who is the company’s Senior VP (Products and Marketing), “LIS has been designed with an objective to educate the customers about the importance of financial planning. It will also help them in making their financial planning more effective as it focuses on four essential life stages – family protection, child’s future requirements, wealth creation and retirement.”

So, Life Insurance Simulator has been introduced to understand the objective and educate the customers about the importance of financial planning. It helps in financial planning in different stages of life.

About the company, the news portal writes, “Canara HSBC Oriental Bank of Commerce Life Insurance Company Limited was launched in June, 2008 and is jointly owned by Canara Bank (holding 51 per cent), Oriental Bank of Commerce (23 per cent) and HSBC Insurance (Asia Pacific) Holdings Limited (26 per cent). The company has a capital base of Rs 825 crore with assets under management of Rs 2,820 crore.”

Canara HSBC OBC has already launched Life Insurance Future Smart ULIP. Life Insurance Simulator (LIS) is the send most appreciating plan of Canara HSBC OBC.

College Plan Launched by Max New York Life

Posted in life insurance by kishosingh on February 23, 2011

Recently, Max New York Life launched a traditional money back plan – College Plan. The plan offers bonuses and pays the money back to policyholder at pre-defined stages of the child’s life.

An online news portal about business and economy – economictimes.indiatimes.com, writes about the money back structure of Max New York Life College Plan, “The plan offers guaranteed money back aligned towards your child’s college education. The plan is structured in such a way that the premium payment term is completed during the school days and money-back stage starts at the age of 18, 19, 20 and 21 as the need is the highest at these stages. The insurer will pay back 40% of the sum assured when the child reaches 18 years and 21 years. It will pay the rest (20% of the sum assured) in the middle years of 19 and 20. The insurer’s logic is that the expenses are the highest during the first and the last year of college.”

Further the news portal writes about the reversionary and terminal bonus, “The product is bundled with dual bonuses – reversionary bonus and terminal bonus. Reversionary bonuses are declared every year from the end of the second year onwards. Usually these bonuses, which are compounded, are a certain percentage of the sum assured, which is decided by the insurer. The insurer may also declare a terminal bonus after the 10th policy anniversary as a percentage of reversionary bonuses. But this bonus is payable only once during the policy lifetime.”

The news portal gives an analytical calculation of Max New York Life College Plan, “Let us assume a 35-year-old father buys this plan for a sum assured of Rs 1 lakh for his five-year-old daughter. The base premium works to Rs 9,067 as per the company’s premium table. But since the insurance is on the child’s name, the father has to opt for the rider which gives him an insurance cover and the cost works to Rs 335.88. Further, the company has specified a formula to calculate the premium, which includes an addition of Rs 900 to the base premium. After factoring in all the charges, the premium works to Rs 10,302. Given the child is five-years old, the premium payment term works to 13 years and the total premium outgo for a Rs-1 lakh policy works to around Rs 1,33,937 lakh. Sure, there is a guaranteed pay out of 120% of sum assured. Still, it is an expensive affair.”

So, it is being considered as an expensive affair. In this plan, parents cover has to be bought at an extra cost. It is launched after Traditional Investment Plan with Guaranteed Return by Reliance Life.

Met Protect Online Insurance Product Launched by MetLife

Posted in life insurance by kishosingh on October 14, 2010

MetLife India, a private sector insurer launched a product – Met Protect. It is the first such life cover plan by the company to be available online.

MetLife said in a statement, “Met Protect would allow customers within the age group of 21-45 years to avail of life cover protection through the Internet.” It was published in ET.

So, Met Protect would be available for age group of 21-45 years. It will cover life protection through the internet.

An online news portal – economictimes.indiatimes.com about business and economy, quotes a statement of MetLife Managing Director Rajesh Relan, “By launching Met Protect, we are taking yet another step to reach our customers and empower them to self-design their protection plan with least effort and time.”

So, the company has tried to reach its customers and empower them with least effort and time – Met Protect.

Further he said, “This is part of our larger strategy towards increasing our distribution reach and enabling us to maximize the benefits in order to provide value to the customers.”

Met Protect will be a part of MetLife’s larger strategy to maximize the benefits in order to provide value to the customers.

The news portal writes about Met Protect and MetLife, “Met Protect would offer customers single and semi-annual premium payment option, the first of its kind amongst all the term products available online.

MetLife currently has over 55,000 financial advisers and bank assurance distribution channel offering products to 17 million customers.

MetLife India is a joint venture between the US-based MetLife International Holdings, The Jammu and Kashmir Bank, M Pallonji and other private investors.”

Met Protect of MetLife comes with single and semi-annual premium payment option. MetLife India is a joint venture between the US-based MetLife International Holdings.

MetLife has introduced Met Protect which is one of the best products of the company after 3 new products of Aviva Life Insurance.

3 New Products Launched by Aviva Life Insurance

Posted in life insurance by kishosingh on September 4, 2010

Recently, Aviva Life Insurance launched 3 new products including two unit-linked insurance plans (ULIPs). These plans are – Aviva Freedom Life Advantage, Aviva Life Saver Advantage and Aviva Life Shield Advantage.

An online news portal about business and economy – economictimes.indiatimes.com writes about it, “As per the new IRDA guidelines, the commission paid to distributors and expenses charged by insurers will no longer be front-loaded and will be distributed over the lock-in period of the schemes, which has been raised to five years from three years earlier.”

Now, there will no longer be front-loaded commission paid to distributors and expenses charged by insurers as per the IRDA guidelines.

As per the company press release, “The two ULIP plans – Aviva Freedom Life Advantage, Aviva Life Saver Advantage – offer enhanced value to the customers and meet the new ULIP guidelines.”

So, there are two ULIP plans – Aviva Freedom Life Advantage and Aviva Life Saver Advantage that offer enhanced value to the customers and these are compatible with new ULIP guidelines also.

Further the press release writes, “Besides, a term plan – Aviva Life Shield Advantage – offers a return on the premium, with optional protection against disease and disability.”

There is a term plan also – Aviva Life Shield Advantage that offers a return on the premium. It has an optional protection also against disease and disability.

In the conclusion, the news portal writes, “Aviva Life Insurance is a joint venture between Dabur Group and UK-based Aviva Group. Dabur Group is the 74 per cent shareholder, while Aviva Group holds 26 per cent.”

Aviva Group is an emerging group in life insurance sector. It has gained 26% share with Dabur Group. The UK based group tries to cover Indian insurance sector also offering the best ULIP plans and term plans.

SEBI has banned 14 life insurance companies from issuing ULIP

Posted in life insurance by kishosingh on April 11, 2010

Recently, market regulator SEBI banned 14 life insurance companies from issuing ULIP. ET writes about those companies who have been banned by SEBI, “The 14 companies mentioned in this order include; Aegon Religare, Aviva, Bajaj Allianz Life Insurance, Bharti AXA, Birla Sun Life, HDFC Standard Life, ICICI Prudential, ING Vyasa Life, Kotak Mahindra Old Mutual Life, Max New York Life, Metlife India, Reliance Life, SBI Life, TATA AIG Life.”

J Harinarayan who is the chairman of IRDA said, “After due consultation with the members of the consultative committee all the 14 insurance companies which are mentioned in the order of Sebi are directed to note that notwithstanding the said order of the Sebi, they shall continue to carry out insurance business as usual including offering, marketing and servicing ULIPs in accordance with the Insurance Act 1938.”

The statement was published in economictimes.indiatimes.com, an online news portal about economy and business.

Further the news portal quotes another statement of IRDA, “The IRDA Act `99 is specifically enacted to provide for an authority to protect the interests of holders of insurance policies, to regulate, promote and ensure the orderly growth of the insurance industry.”

In an analysis the news portal quotes some data of IRDA, “Sebi’s order has more far reaching implications than a press release or a circular. Since the order has been issued under Section 34(i) (a) and (b) of the insurance Act. IRDA has said that in the year `08-09 ULIP policies involving a total premium of Rs 90,645 cr were in force. In fiscal `09-10 upto February 16.7 lakh policies have been sold with a premium of Rs 44,611crores.”

Now, the whole things are very clear from the above mentioned data. It is nothing but regulatory battle in insurance segment of India. It is the biggest news in life insurance segments for insurance companies just like M&A guidelines for insurance companies.

Wealth Plus Insurance Policy from LIC

Posted in life insurance by kishosingh on March 16, 2010

Wealth Plus is a new offering of LIC. It is an 8-year fixed-term product. In this plan, LIC guarantees the highest Net Asset Value (NAV) recorded over the first seven years of the policy.

According to the economictimes.indiatimes.com, an online news portal, “Wealth Plus has two options — a single premium one and another plan where premium is payable for the first three years. The minimum annual premium is Rs 40,000 under the single premium option and Rs 20,000 under the 3-year premium paying term. The sum insured is a modest 1.25X the premium for single premium policies and 5X the annualised premium for policies with a 3-year payment term. The insurance cover continues for two years after the term of the policy.”

About the policy LIC states an example – “a 30-year old who invests a single premium of Rs 40,000 can look forward to getting back Rs 64,679 if the fund value appreciates 10% annually. If the appreciation is 6%, he can expect to get back Rs 47,377 at the end of eight years. On the other hand, if the same investor chooses to invest Rs 20,000 for the first three years, he can look forward to getting Rs 91,445 if the fund appreciates 10% and Rs 70,309 if the appreciation is 6%.”

In an analysis, the news portal writes, “In short, the working behind such products is that the highest NAV is assured by shifting assets to debt as timed by the fund manager. The downside is that the fund managers cannot allow spikes in the scheme’s NAV.”

Wealth Plus is the latest offering of Life Insurance Corporation. However, many other private life insurance companies have already launched the same plan in the insurance market.

Recently, Reliance has also launched highest NAV Guarantee Plan. We already have seen Guarantee Builder of Bharti AXA Life also. In this condition, Wealth Plus of LIC is only an insurance plan not a new plan.

Guarantee Builder Launched by Bharti AXA Life

Posted in life insurance by kishosingh on June 9, 2009

Private life insurance joint venture between Bharti Enterprises and AXA, Bharti AXA Life Insurance, launched an innovative premium guarantee product – Guarantee Builder.

Nitin Chopra who is the CEO of Bharti AXA Life said,

“This premium guarantee product addresses the needs of those traditional and new investors who are wary of market volatility – as is the case currently – but would still like to participate in the Indian growth story.”

Guarantee Builder would be a package for long-term customer to get benefit, as per the Chopra statement. Guarantee Builder will provide customers the benefit of increasing GMV (guaranteed maturity value). It is a first-of-its-kind benefit product to Indian customers.

Economic Times online news paper writes about the premium,

“GMV is the sum of the investment premiums payable over the term of the policy. Guarantee Builder provides customers the comfort of the GMV increasing by 1% each year till it reaches 115% of GMV at maturity.”

Guarantee Builder would be the new guarantee fund to Build & Protect. It will provide customers the option for the long-term to remain invested in equity up to 40%. It gives the flexible option to move out of the guarantee to switch out of Build & Protect Fund.

At the end of the 10th and 15th year a special addition of 2.5% of average policy fund value will be provided customers the benefit of wealth creation over the long-term. Guarantee Builder will provide death benefit of sum assured plus fund value. It would be with sum assured for ten times on the annual investment premium.

Latest news shows that Bharti AXA Life has also plan to invest Rs 100 crore into the life company in the July-September quarter.

Bharti AXA Life has many plan and investment option nearly to the new customers. The company is trying to invest almost all growing industries.

Life Insurance Industry Falling in Competition of General Insurance

Posted in life insurance by kishosingh on May 2, 2009

According to the recent news, life insurance premium collection has fallen about 11.6% in the fourth quarter. In the financial year 2009 (April – March) has brought down about 6% according to the Insurance Regulatory and Development Authority (IRDA).

North-zonal Manager, Sanjay Kumar Jha from Bajaj Allianz said to the Economic Times, “The stock market crash in the previous fiscal led to a drop in the demand for unit-linked insurance plans, pulling down sale of new policies.” About the new premium collection ET says, “New premium collection clocked Rs 34,814.55 crore in Q4 against Rs 39,413.16 crore in the corresponding period of the previous fiscal. For the full fiscal, it stood at Rs 87,107.62 crore compared to Rs 92,988.71 crore in the previous fiscal.”

About the down it is said that the market leader LIC (Life Insurance Corporation) has gone more down about 10% whose market share was 60% to 63%. The collection has declined during the year which had been sold this year.

It is being said that LIC’s policy Jeevan Aastha premium collection would have been worse also.

Another news according to IRDA data shows that general insurance sector is in growth from 9% to 12.6%. Among the 16th non-life insurance companies only Reliance has posted negative growth in the sector.

In the other hand Birla Sun Life Insurance Rs 10,000 crore marks in Assets under Management (AUM). According to the Vikram Kotak who is the Chief Investment Officer said to the ET, “it gives us great pleasure to cross the landmark of Rs 10,000 crore of AUM and in the process registering a strong growth of 41 per cent year-on-year.”

On the analysis of Insurance sector we can say that the sector differ company to company not from policy to policy because in the one hand LIC is going down in life insurance where on the other hand BSLI is going up. Like it, in the general insurance policy all the insurance companies going up where Reliance is going down.

Jivan Anand Life Insurance Policy from LIC and My Experience

Posted in life insurance by kishosingh on February 11, 2009

I have already told you in my previous post about my experience with corporate health insurance. Now, I want to share my own life insurance experience to you. I am 24 years old still I was not insured. Once day, I met with my teacher friend. We were talking with some different topic. Suddenly, we come to the insurance topic. He asked me about my life insurance. I told him that I don’t think about insurance and have not thought over the insurance policy.

Now, he was serious. He begins arguments with me about insurance. He gives one suitable argument that no car and motor bike run on road without insurance then you do you not think about your life insurance? “We also run on road every day then why should we don’t feel about our life insurance?”

After that logic I had no space for arguments. That time I decided to be an insured person. He was an insurance agent actually. That is why he wanted to make me insure. In spite of some reality was there. I asked him to tell me about best policy. He was my friend so he suggested for Jivan Anand Life Insurance of LIC.

He told me that JEEVAN ANAND is unique combination of ’’Whole Life’’ and ’’Endowment’’ policy. By this policy I was able to get an insurance of whole life without paying policy amount.

He told me that if you get a policy of Rs. 1 lakh then you have to pay only premium of Rs. one lakh. After that you will get endowment at the end of the selected term or on end of your life.

He told me about premium also that you are able to pay in term of yearly, half-yearly, quarterly or monthly. I saw an advertisement also nearly about Jivan Anand policy that if you take the policy then your life will be “ANAND HI ANAND”.

Now, I want to ask that let me know Jivan Anand is right for me or is there any other policy which is better for me?