Insurance Plans Reviews and Articles

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.

Reliance Mutual Fund Introduces Fixed Maturity Plan

Posted in Mutual Funds by kishosingh on April 14, 2010

Recently, Reliance Mutual Fund unveiled fixed maturity plan. The news came in light through ET online news paper.

The online news portal, economictimes.indiatimes.com, writes about the fixed maturity plan of Reliance Mutual Fund, “Reliance Mutual Fund has come up with a fixed maturity plan —Fixed Horizon Fund – XIV – Series 9. As per the scheme information docu-ment, the primary investment objective is to generate regular returns and growth of capital by investing in central and state government se-curities and other fixed income or debt securities, normally maturing in line with the scheme’s maturity, with the objective of limiting in-terest rate volatility.”

So, the Mutual Fund has come with a fixed maturity plan. It belongs to a series of Fixed Horizon Fund – XIV – Series 9. Reliance Mutual Fund will generate regular returns and growth of capital by fixed maturity plan investing in central and state government securities and other fixed income.

The statement makes the objective of fixed maturity plan very clear. With the fixed maturity plan, Reliance Mutual Fund will try to generate fixed money investing capital in government sectors.

Reliance Mutual Fund unveils fixed maturity plan for a limited period. About the period, ET writes, “The close-ended scheme, which opened for sub-scription from April 7, 2010, will close on April 15, 2010. The mini-mum subscription amount for the scheme is Rs 5,000.”

So, Reliance Mutual Funds offer the fixed maturity plan for just a month only. Subscriber can buy it between the date periods. A subscriber can invest a minimum amount of fund also that is Rs. 5,000 in this scheme.

Reliance Mutual Funds has made the fixed maturity plan very comfortable with Rs. 5,000. The scheme has been launched broadly to attract almost all classes of people.

We already have seen the performance of Reliance Life with Highest NAV Guarantee plan. Now, Reliance Mutual Funds tries to collect some huge money from market by fixed maturity plan.

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.

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.

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.

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.