Life Insurance

Employer has certain obligation towards his employees – a few are compulsory like gratuity and employees deposit linked insurance scheme and others are employee benefit schemes. In India group life scheme prevalent are:

Group term life

Employers, as a part of the employer-employee agreement or the employer being a progressive one may be responsible or volunteer to provide benefits to the dependents of the employee in case of any eventuality such as death. This policy is suitable for such employers who wish to provide insurance cover to all their employees under a single policy at an affordable premium. It is 24 hours worldwide policy which covers natural and accidental death.

Employee deposit linked insurance scheme

The employer may be exempted from contributing to this scheme, if he/she has provided for better insurance benefits through alternative scheme. Group insurance scheme in lieu of EDLI has been accepted as one such better alternative.

Advantages to the employer is its being cost effective coupled with easy claim procedure & the premium paid is shown as expenses in it.

Group superannuation scheme

With improvement in longevity, need for a regular income after retirement has become a necessity. Any pension scheme introduced by an employer today creates an ideal environment for employees. They are motivated to give their very best to the organization as they derive a sense of security and well-being.

Group gratuity scheme

Creating a privately managed trust, or funding it through insurance company and getting payment as and when liability falls due.

Salient features:

• The fund accrues interest from day one with maximum possible yield.
• For claiming it rebate, valuation done by ic would suffice. No certificate from an outside actuary is required.

Full life cover – an added attraction

• In the event of premature death often employee, the sum payable as gratuity is equal to gratuity payable for the entire service (actual service + anticipated service) under ic’s scheme.

Conventional plans in life insurance:-

In this plan the insurance companies invest 80 to 85% in government securities, debentures, bonds, money market instruments, etc & 15 to 20% in equities. The portfolio of investment is never published by the insurance companies & the investment decision is purely in the hands of the insurance companies & the policyholder has no control on the investment strategy. But this are the most preferred plans till the private companies entered the Indian market . Today also these plans are sold more than 50% by LIC as the capital is secured & the life assured gets a reasonable return on maturity without exposure to the risk of share markets. These plans are less flexible. The customer will always get a lower amount in case of surrender of policy any time before maturity but instead of surrendering the policy he can opt for a loan against the policy which is around 90% of surrender value & the interest rate is also very low, in LIC it is only 9% p.a.

The basic types plans are as follows :-

Term insurance plan :-

This is the cheapest life insurance policy. In this policy the insurance is covered for a fixed amount for fixed term. If unfortunately the life assured passes away during the policy term than the full sum assured is paid to the nominee. If everything goes well and the life assured is alive on maturity than nothing is payable on maturity. It is just like a general insurance policy the only difference is that it is along with the terms, contract & not a yearly contract.

Whole life insurance plan :-

In this policy the risk cover continues for the whole life but the premium is either to be paid in single mode, limited payment or whole life. The sum assured is payable only on death either with or without bonus as per the policy condition.

Endowment insurance plan :-

In this plan the policy is for a fixed term & in case of unfortunate death the sum assured with or without bonus as per the policy condition paid to the nominee & if everything goes well than on maturity the Sum assured is paid to the life assured with or without bonus as per the policy conditions.

Money back insurance plan :-

This is also one type of endowment plan but in this plan very 3rd. 4th or 5th every a part of sum assured is paid to the life assured as survival benefit & in case of unfortunate death during the policy term the full sum assured without deduction of survival benefits will be paid to the nominee with or without bonus as per the policy condition & in case everything goes well the sum assured after deducting the survival benefits will be paid to the life assured with or without bonus as per the policy condition.

Unit linked insurance plans

In this type of plans the insurance companies invest the funds as per the instructions of the policy holders. The policy holder has the option to invest his money in equity or debt & also he can do switches amongst the same. The insurance companies regularly publish the full portfolio of each scheme where they have invested the funds. They declare the nav on daily basis. The customer has the choice of selecting the premium as well as the insurance coverage on a specified premium i.e. he can take more insurance at a specified premium if his main purpose is insurance & he can take less insurance if his main purpose is returns.Life

Human life value:-

Human life value is the value for which the person should be insured for keeping his family after his unfortunate death in the same lifestyle as they are leaving today. They should earn the same income from the fund recd. from the policy by investing that fund in a government security. All are his future planning for child’s education. Marriage, etc. should be considered for calculating the hlv. Beacon has expertise in studying the needs of the customer & according to the needs which company & also which product is suitable to fulfil his/her needs. We also expertise in calculating the human life value & accordingly looking at the current income & current policies we suggest the policies of different companies which can make his/her family secured in case of unfortunate death.

Insurance /risk management is the tool of substance of a security against any unforeseen events which allows the enterprise to flourish with a focus on key matter without the threat by perils known & unknown.
A claim is the most crucial aspect to be taken into consideration as it requires lots of expertise.
A claim is the true litmus test to judge the efficiency of any insurance brokers. Giving price advantage is definitely our motto as your insurance partners, but the prime motto is to deliver an optimum level of satisfactory service during claim settlement. Our Role in claim management-

Himalaya Insurance Brokers Pvt. Ltd. acts as a catalyst in entire claim management exercise.

As our privileged customer you have the following advantage:
• Best Buy: Selection of best insurance products at minimal cost.
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