1/ Life Insurance is a contract between an insured (policyholder) and an insurer (insurance company), where the insurer promises to pay a sum of money in exchange for a premium after a set period or upon the death of an insured person.
2/ There are many policies which we are offered by the insurance companies and generally are mis-sold. So, here is the meaning of each policy with their main features.
3/ Whole Life Insurance :- It is the oldest type of life insurance wherein premium is paid by the assured throughout his life-time and the sum assured is paid to the beneficiary or nominee on the death of the policyholder.
4/ Generally, the maturity of the policy is 100 year. But, premium is very high and assured may find it very difficult to continue the premium payment during his old age.
5/ Endowment Policies :- This policy covers risk for a certain period of time i.e., up to maturity period and at the end of which the sum assured is paid back to the assured, along with a bonus (if chosen). If assured dies, then the sum assured is paid to the beneficiary.
6/ Bonus option is not necessary to choose. It's up to the insured whether to choose or not. If chosen, the premium will be higher. Also, check the returns of the policy and approximately the returns are 3 to 5% during the tenure of the policy which doesn’t beat the inflation.
7/ Money Back Policies :- It is the variant of Endowment policy. This policy helps the insured person to get a percentage of sum assured at regular intervals, instead of getting the lump sum amount at the end of the term.
8/ This policy is suitable for risk-averse individuals who wish to save through an insurance plan and also maintain liquidity throughout.
9/ If the insured survives till the expiry of the maturity period, the survival benefits are deducted from the maturity value & the balance amount is paid. In case of death of the insured person, the nominee gets the entire sum assured and the survival benefits are not deducted.
10/ Children Policy :- This policy is taken out on the life of the children where the parent is proposer. The parent will get funds when children reach various stages as mentioned in policy like when a child becomes an adult, postgraduate, etc.
11/ The policy carries high premium & low returns. The biggest advantage is Waiver of Payment Rider. This rider gives the benefit in case of unfortunate death of parent/proposer during the policy and premium need not to be paid but the insurance company pay the remaining premium.
12/ Annuity :- The policy is a contract between the policyholder and insurer in which the insured gets a fixed amount for lifetime or specific number of years. The person who pays an annuity premium is called an annuitant and insurer is called an annuity provider.
13/ Two Types of Annuity - (a) Deferred Payments : In this option, the annuitant pays a premium continuously till the retirement age (as mentioned in the policy) and gets withdrawal after the retirement.
14/ (b) Immediate Payment : In this option, the insured gives lump sum money to the insurer and gets withdrawal immediately. Generally, taken by the person who is near their retirement or retired and wants steady income from their saved corpus.
15/ Unit Linked Insurance Plans :- This policy is a combination of insurance protection with investment and allows the insured the flexibility to choose on how much premium they want to invest and also, check the charges deducted by insurer. Two types of ULIP :
16/ (a) Type 1 : In this, the nominee gets higher of the sum assured or fund value in case of death of policyholder.
(b) Type 2 : In this option, the nominee gets both the sum assured and fund value in case of death of the policyholder. But, the premium is higher in this case.
17/ Term Insurance :- This policy is the pure life insurance in which the insurer provides the full sum assured in case of death of the policyholder before the maturity ends. If the insured lives beyond the period stated in the policy, no payment is to be made by the insurer.
18/ This policy is slowly gaining popularity among Indian population as they understand its advantages like cheap premium and a tool for succession planning.
19/ As you have understood, the different types of policies offered by insurance companies, I recommend to take TERM INSURANCE. Because, all the policies are combined with insurance protection and investment except TERM Insurance.
20/ I will soon share the full details about the term insurance, what to check while buying the policy, when to buy, etc. So, stay connected with me.
Disclaimer - I’m not an advisor, I share my thoughts on proper analysis.
I am tagging you, not for follower count, rather to educate innocent & ignorant Individuals.
Indian School of Business (ISB) is India’s first private business school, not affiliated with AICTE or UGC but holding international accreditation.
What are the students from the first cohort (2001–2002) doing 22 years later?
A Thread 🧵👇
1/ Prashanth Vasu
Rose to Partner at McKinsey after 10 years, then served as President of Strategy at The Ramco Cements. Currently, he is the Managing Director at The Sanmar Group.
A dedicated practitioner of heartfulness meditation since 1996.
2/ Ritu Jain @Ritu_Jain_Eos
Spent nearly a decade working at marquee investment banking firms before founding Eos Capital, a mid-market-focused investment bank.
She was a gold medalist during her engineering studies.
Today is women's day and best day to talk about legal rights that all women should be aware of.
A Thread 🧵👇
1/ Legal age of getting married - According to the Prohibition of Child Marriage Act, the legal age of girls to get married is 18 years. But, in India still around 27% of girls are married before 18 years of age.
2/ If you see any girl getting married, you can file a complaint in the police station. But, the girl says “She is getting married with her consent” In this scenario, her parents can be arrested for getting their daughters married early as she doesn't have consent.
Ever wondered why privacy is the next big human right concern. Well, you have no idea about this industry ie, Data Brokers which is worth more than $200 billion.
A Thread 🧵👇
1/ Data brokers are those industries which are selling your personal data. Here's how it works?
2/ Your name, your age, your height, your family, your friends, your relationship status, your likes, your dislikes, your political beliefs are the examples of data points, which means little bit of information.
Increase in technology leads to increase in cyber crimes. As a law student, it’s my duty to educate people about the basic laws and help them to understand in layman terms. Also, to increase the legal awareness in India.
Cyber Laws which every person should know
A Thread 🧵👇
1/ Cyber laws are used to describe the legal issues related to use of communications technology, particularly the Internet. With the technology boom and easy Internet access across the country, cyber crime has become a necessary part.
2/ According to the National Crime Records Bureau data stated that 44,546 cases of cyber crimes were registered in 2019 as compared to 28,248 in 2018. Here are some sections of Information Technology Act, 2000 that will empower you and attempt to safeguard your cyberspace.
AI-Startup predicted the Coronavirus Outbreak before the WHO declared 🤯
A Thread 🧵👇
1/ The coronavirus has impacted our life, businesses and even financial condition in the world. But, the BlueDot an AI-startup predicted the covid before the WHO released its statement alerting people to the emergence of a novel coronavirus.
2/ So, the story behind the BlueDot startup and how did they know about COVID before anyone else?