Insurance Plans Reviews and Articles

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.

Saral Maha Anand New ULIP Product Launched by SBI Life

Posted in insurance by kishosingh on October 31, 2010

Recently, SBI Life Insurance introduced a new unit-linked insurance plan (ULIP) – Saral Maha Anand. The new product has 3rd position in ULIP product launched by the insurer since the introduction of the new ULIP norms by the insurance sector regulator, IRDA, last month.

However, SBI had already launched two products – Smart Performer and Unit Plus Super earlier. An online news portal about business and economy – economictimes.indiatimes.com quotes a statement of a press release about SBI Life Saral Maha Anand, “Saral Maha Anand, its new ULIP product, is available at an affordable yearly premium starting from Rs 15,000 onwards and the product has been designed to cater to investment and protection needs of the middle-and-low-income segments.”

So, Saral Maha Anand is a new ULIP product which is available at an affordable yearly premium. The yearly premium starts from Rs 15,000 onwards. The product has been designed to cater to investment and protection needs of the middle-and-low-income segments.

Saral Maha Anand of SBI Life covers “Aam Admi”. The product has been made for the investment purpose. Maximum middle and low income people will like the product.

SBI Life Insurance’s managing director & CEO, MN Rao’s statement is also quoted by the news portal, “The product is exempted from medical-examination. The product offers simplicity and affordability so that a larger section of society can participate and benefit by systematically investing over a long-term horizon.”

So, Saral Maha Anand product will be known for its simplicity and affordability. It covers a larger section of our society. Anyone can participate in it to invest over a long-term horizon.

This time, SBI Life Insurance has planned to grab the complete society by its Saral Maha Anand ULIP product. The product is much appreciated in the insurance sector like Dhan Suraksha Policy of DLF Pramerica Life Insurance.

Reliance Life Launched Traditional Investment Plan with Guaranteed Return

Posted in insurance by kishosingh on May 29, 2010

ADAG group company Reliance Life Insurance announced to launch a traditional investment plan. The plan provides life protection and regular savings with annual guaranteed investment returns.

About the insurance plan economictimes.indiatimes.com, an online news portal about business and economy quotes a statement of Life Insurance President Malay Ghosh, “The Reliance Life Traditional Investment Insurance Plan combines life protection and regular savings with complete transparency and flexibility features and advance guaranteed returns.”

So, the Reliance Life Traditional Investment Insurance Plan offers life protection and regular savings. The insurance plan has complete clarity and flexibility with advanced guaranteed returns.

Further the news portal quotes his statement about the plan, “The new scheme is a regular premium plan offering guaranteed investment returns, which are declared at the beginning of every financial year during the product term.”

Further the news portal writes about the availability of the plan, “The plan is available to children aged less than 30 days and senior citizens aged up to 70 years, with monthly, quarterly, half-yearly and yearly payment options available.”

So, the plan is available for almost all age group of customers. It has flexibility of monthly, quarterly, half-yearly and yearly payment option.

The news portal adds about the maturity and cover of the plan also, “Besides the maturity and tax benefits, the plan also offers a health-related cover, which will pay a lumpsum to the customer for as many as 33 specific surgeries including Open Heart, Kidney Transplant, and 25 critical conditions, respectively. These riders can be added by paying an additional premium.”

You can get the benefits of health-related cover also paying a lumpsum with this insurance plan.

In the series of fund investment, Reliance Mutual Fund already has launched fixed maturity plan. DLF Pramerica Life Insurance Dhan Suraksha policy is also one of the best policies like Reliance Life Traditional Investment Plan with Guaranteed Return.

DLF Pramerica Life Insurance Introduces Dhan Suraksha Policy

Posted in insurance by kishosingh on May 15, 2010

Recently, DLF Pramerica Life Insurance introduced Dhan Suraksha policy. It is a new savings-cum-protection plan. It combines with two benefits – a comprehensive insurance cover along with guaranteed benefits and guaranteed additions.

About the Dhan Suraksha policy, economictimes.indiatimes.com, an online news portal about economy and business writes, “DLF Pramerica Life Insurance has introduced a new savings-cum-protection plan — DLF Pramerica Dhan Suraksha — that combines the twin benefits of a comprehensive insurance cover along with guaranteed benefits and guaranteed additions. The guaranteed addition works to Rs 100 per Rs 1,000 of sum assured will accrue every year. This corpus will be paid at maturity or in case of unfortunate demise of the life insured.” The statement is revealed by the company.

Further the news portal writes, “The insurer will pay 15% of basic sum assured at the end of every fifth policy year except at maturity. The sum assured doubles in case of accidental death, which is over and above the guaranteed additions payable to the policyholder. Accrued guaranteed additions and the Sum Assured under the policy minus the money back benefit already disbursed will be paid at maturity.”

With this plan, insurer will have to pay 15% of basic sum assured at the end of every fifth policy. The plan gives the biggest benefit in case of accidental death. Your sum assured will be doubled. It is over and above the guaranteed additions payable to the policyholder.

The DLF Pramerica Life Insurance Dhan Suraksha policy has been recently launched. It is being considered as the biggest insurance plan after Reliance Life Highest NAV Guarantee Plan.

In the competitive market, Reliance Mutual Fund recently launched Maturity Plan that was also a noticeable plan in the Indian market. Now, Dhan Suraksha policy of DLF Pramerica Life Insurance gives the best option for Indian people in the insurance market.

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.

Highest NAV Guarantee Plan is launched by Reliance Life

Posted in insurance by kishosingh on February 24, 2010

Recently, the popular news about NAV Guarantee Plan came in light for the insurance investor. “Reliance Highest Net Asset Value Guarantee Plan” is a new unit linked insurance plan of Anil Ambani Group firm Reliance Life Insurance that enables the policy-holder to enjoy good returns.

Malay Ghosh who is the Reliance Life Insurance president says, “The new plan simply captures and guarantees the upside of the market with no risk of negative return. The customers can take advantage of market-linked returns with the satisfaction of getting the highest NAV during the policy term, while protecting his wealth from any downturn in the market.” The statement was published in ET online news paper.

Further Economic Times writes, “The key differentiator is that the Net Asset Value (NAV) in this case is calculated on a daily basis for the entire policy term and not on any fixed dates of the month, the company said in a release.

Under this plan, the premium paid by the policyholder (minus charges) is invested in the ‘Highest NAV Guarantee Fund’ and accordingly units are allocated based on the fund NAV.

On maturity the plan guarantees the highest ever returns — number of units on date multiplied by highest NAV– to the customer.”

Samaylive.com which is another online news paper, writes about the plan, “The plan is available under two minimum payment options Regular options that allows customers to pay Rs 20,000 annually which can also be paid in monthly, quarterly and half yearly option; and the Single Premium wherein the customer pays a minimum of Rs 30,000 only once at the inception during the tenure of the policy.”

Overall, the policy gives the highest returns on lower investment. Essence of the plan is introducing highest returns with the guarantee on the lowest investment. Recently, new ULIP plan was also launched by ICICI Prudential Life that was very attractive for insurance investor.

New ULIP Plan Launched by ICICI Prudential Life Insurance

Posted in insurance by kishosingh on December 29, 2009

Recently, Prudential Life Insurance launched a new ULIP plan that is called ICICI Pru LifeTime Maxima. The insurance policy follows two different portfolio strategies – fixed and trigger portfolio. Fixed portfolio strategy provides an option to choose from any of the seven funds — Opportunities Fund, Blue-chip Fund, Multi-Cap Growth Fund, Multi-Cap Balanced Fund, Income Fund, Money Market Fund and Return Guarantee Fund.

On the other hand, trigger portfolio strategy is a market base portfolio to generate good funds from the market.

If you invest your money in trigger portfolio strategy then your investments will be distributed between two funds: Multi-Cap Growth Fund and Income Fund in 75:25 ratios. In this plan, fund manager maintains the asset allocation between the Multi-Cap Growth Fund and Income Fund at 75:25.

First year premium allocation charge is 7.5% in this investment. Second and 3rd year charge will be only 3% while it is 0% from the fourth year onwards. In this investment, fund management charge would depend upon the choice of funds between 0.75-1.35 percent.

Administration charge for the policy will be necessary for 1st five years in this plan that would be 0.8-0.9 per cent.

The policy offers some good features such as changing of portfolio strategy once a year free of cost, top-up option and partial withdrawals from the sixth year up to a maximum of 20 per cent.

You can withdraw minimum Rs 2,000. You can withdraw your funds in a systematic way yearly, half yearly, quarterly or a monthly basis on maturity. During the settlement period, you can withdraw your entire fund.

You should go in trigger portfolio strategy because it works in a volatile market. Your fund is managed by professional fund manager who understands the vagaries of the stock market.

The analysis is taken from Economic Times. It is nothing but an investment with a secure policy. Basically, it is the market policy. Recently, TATA AIG had also launched Life InvestAssure Superstar ULIP but it was not market based plan.

Jeevan Nischay Policy is to be launched by LIC

Posted in insurance by kishosingh on October 29, 2009

Recently, Life Insurance Corporation announced to launch Jeevan Nischay policy. It will be single premium granted plan of LIC. Jeevan Nischay policy will be very similar to Jeevan Aastha which was launched last year.

Still, the whole information has not taken place among us but LIC will declare more information about the policy soon. According to the insider’s information, an insurer would have to invest of Rs. 1 lakh for 10 years then he will get a maturity about Rs. 1.7 lakh.

Yield and additional loyalty will be declared soon after the launch of the policy. Jeevan Nischay policy will be sold for limited period till March, 2010.

Jeevan Nischay policy introduces maximum features such as single premium plan and the investment will be linked with to the extent of protection the individual already has purchased.

The ET has written, “According to sources, the main objective of the policy is to tap the maturity benefits offered under an older plan – Bima Gold, which sold more than 1 crore policies when it was launched. Jeevan Aashta had mobilised close to Rs 10,000 crore, as it offered a safe haven of guaranteed returns amidst the turmoil in the market.”

Jeevan Nischay policy will cover “the mandatory five times of the premium amount for the first year of insurance. For subsequent years, the sum insured will be equivalent to the premium paid.” The news was also published in Economic Times.

Till now, one time premium policy has proved its essence. Earlier, we have seen many single premium policies by LIC and Reliance that had gotten good popularity. Now, we can assume about Jeevan Nischay policy and about its effect.

Single premium policy gives insurer independency also. Jeevan Nischay policy will be just like an investment for 10 years with insurance cover that will surly attract customers.

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.