I am 32 years old and draw an annual salary of about Rs 3 lakh. Which insurance plan should I go for?
The primary reason for taking a life insurance policy is to cover the risk of life and protect the family from the loss of losing a breadwinner. To start with, you may go for a term plan to get high life insurance cover at a reasonable premium and cover the risk of life. To top it up, you can add some riders such as accidental assurance. Critical illness and long-term disability insurance may be clubbed with an insurance policy to cover the respective eventualities. Numerous other products such as money-back, endowment plans and unit-linked insurance plans (Ulips) can be chosen, depending on the availability of surplus to invest. If you can invest, you may go for a pension plan at this stage because your retirement is still about 25 years away. So, even a small regular contribution at this stage will fetch you a decent pension.
Saturday, November 1, 2008
REVERSE MORTGAGE SCHEME
I am retired and live in my own house. I need some extra income apart from my pension. Should I go for a reverse mortgage scheme? Which banks offer this?
You can get a reverse mortgage loan against a self-occupied property. Banks may give up to 60 per cent of the value of the property as a loan. State Bank of India, Dewan Housing Finance and Punjab National Bank offer reverse mortgage loan facility.
You can get a reverse mortgage loan against a self-occupied property. Banks may give up to 60 per cent of the value of the property as a loan. State Bank of India, Dewan Housing Finance and Punjab National Bank offer reverse mortgage loan facility.
NBFC
Is it safe to take a loan from a non-banking financial company (NBFC)? What is the procedure for it?
It really does not matter who is giving the loan (whether a NBFC or a public sector bank or a private sector bank) as long as the terms on which the loan is given are okay and satisfactory. The process remains the same everywhere. Please do not take the loan if a flat rate of interest is offered by the company. Apart from the effective interest rate, you should also compare the various fees and charges including the pre-payment charge, which differs from bank to bank.
It really does not matter who is giving the loan (whether a NBFC or a public sector bank or a private sector bank) as long as the terms on which the loan is given are okay and satisfactory. The process remains the same everywhere. Please do not take the loan if a flat rate of interest is offered by the company. Apart from the effective interest rate, you should also compare the various fees and charges including the pre-payment charge, which differs from bank to bank.
DOUBLE MEDICAL
I am an agent of the Life Insurance Corporation of India (LIC). I motivated a person to buy a life insurance policy and got his ECG done from an LIC-approved doctor before submitting the proposal. The ECG was done before the date of the medical report and proposal form. Now, LIC has asked to repeat the ECG, saying the test should have been done after the date of proposal. Is LIC correct? Should I not write that ECG is valid for 12 months?
Most life insurance companies follow the principle of getting medical tests done through their own list of approved medical practitioners after the insurance proposal is submitted and approved.
The reason for such a practice is to maintain uniformity in all cases and rule out possible errors in medical reports. An ECG report may be valid for 12 months, but a person’s medical health cannot be predicted for the future.
So, even if a medical test is done after a month, results can vary. For this very reason, insurance companies get medical tests conducted only after the submission of the proposal form.
Most life insurance companies follow the principle of getting medical tests done through their own list of approved medical practitioners after the insurance proposal is submitted and approved.
The reason for such a practice is to maintain uniformity in all cases and rule out possible errors in medical reports. An ECG report may be valid for 12 months, but a person’s medical health cannot be predicted for the future.
So, even if a medical test is done after a month, results can vary. For this very reason, insurance companies get medical tests conducted only after the submission of the proposal form.
MONEY BACK POLICY
What are the pros and cons of taking a money-back insurance policy? Which is better—a Ulip or a combination of life insurance and mutual funds?
The benefit of taking a money-back plan is that during the term of the policy, the insured receives tax-free, fixed proportions of the sum assured at regular intervals. On maturity, the insured receives the balance portion of the sum assured plus the bonus/participating profit/ guaranteed addition for the term of the policy, which is also tax-free in most cases. This plan is suitable for people who require lump sum amounts in future to meet specific expenses such as children’s education or marriage. The policy provides insurance protection for the family as well as provision for old age.
However, money-back policies need commitment to pay for a long duration, like 15 to 25 years, and the premium is higher compared to endowment and term plans. If one gets money-back plans with guaranteed addition, the premium is even higher.
There are many ways of investing your money and the choice depends on the investor’s knowledge of the available products in the market and his risk appetite. If one chooses to impose self-discipline and invest regularly, other saving/investment avenues, such as mutual funds, offer higher returns than a Ulip. In order to decide which option to choose, in your insurance proposal, remove the portion of the premium allotted for issuance of life insurance to you, that is, the mortality charges and other administration charges in your Ulip (you also take into account the premium of a pure term policy). Now, taking the remaining part of the payable premium, compare the promised yield in the insurance plan (Ulip) to any pure investment instrument. If the investment instrument yields better returns, your answer is clear—get the term insurance and invest the balance of the proposed premium into the investment product.
The benefit of taking a money-back plan is that during the term of the policy, the insured receives tax-free, fixed proportions of the sum assured at regular intervals. On maturity, the insured receives the balance portion of the sum assured plus the bonus/participating profit/ guaranteed addition for the term of the policy, which is also tax-free in most cases. This plan is suitable for people who require lump sum amounts in future to meet specific expenses such as children’s education or marriage. The policy provides insurance protection for the family as well as provision for old age.
However, money-back policies need commitment to pay for a long duration, like 15 to 25 years, and the premium is higher compared to endowment and term plans. If one gets money-back plans with guaranteed addition, the premium is even higher.
There are many ways of investing your money and the choice depends on the investor’s knowledge of the available products in the market and his risk appetite. If one chooses to impose self-discipline and invest regularly, other saving/investment avenues, such as mutual funds, offer higher returns than a Ulip. In order to decide which option to choose, in your insurance proposal, remove the portion of the premium allotted for issuance of life insurance to you, that is, the mortality charges and other administration charges in your Ulip (you also take into account the premium of a pure term policy). Now, taking the remaining part of the payable premium, compare the promised yield in the insurance plan (Ulip) to any pure investment instrument. If the investment instrument yields better returns, your answer is clear—get the term insurance and invest the balance of the proposed premium into the investment product.
Is Your Career Rocking?
A quiz to figure out where you stand in your organisation and what you need to do
IF you are one of those lucky few who work in organisations where Performance Management (goals are set, systematic assessment is done and feedback is given to employees) is serious business, then you would at least be knowing where you stand in the organisation quicksand. However, if you work in a company where Performance Management is given a go-by, you may not have an idea how you stack up. Here is a simple quiz to help you figure that out. Your score will decide what you need to do.
Be honest and factual with the answers in this game show that will check the health of your career. You get 1 point for every ‘YES’ and 0 for every ‘NO’.
1. I was nominated for a training program in the last 12 months. YES / NO.
2. From the information I have, I know that my salary raise this year is within the top 50 per cent of the salary increases in the company. YES / NO.
3. I am always included in the cross-functional teams that the company sets up for major decisions or projects. YES / NO.
4. My professional needs and aspirations are addressed by my organisation through appropriate job rotations. YES / NO
5. I have been promoted in the last 24 months. YES / NO
6. My age is lower than the average age of my peer group. YES / NO
7. My boss invests time in me. He periodically discusses my contributions with me and gives a patient hearing to all my career-related anxieties and issues. YES / NO
8. I made at least two presentations to senior management teams or the board on project successes in the last 12 months. YES / NO
9. I am always called in for important meetings with customers or when senior officials visit us from our parent company. YES / NO
10. In the rare instance where I mess up a project or miss a deadline, I never get pulled up and my boss actually offers help in the form of additional resources. YES / NO
If you score a 10 on 10, your career is on velvet. You are on a solid wicket. Continue to give your best shot to the company and you will continue to get rewarded and recognised by it. Banish any thoughts of seeking greener pastures.
If your score is 8 or 9, you are doing fine. However, there is scope to improve the score to the perfect 10. Study more successful people in the company to take your score up by at least one more point in the next one year. You are a valued contributor and an asset to the organisation.
If your score is 6 or 7, you would be called a solid citizen. You are respected, wanted by the company and seen as a solid and reliable employee who will do a job well. However, a similar score would be unwelcome next year.
If your score is 4 or 5, you fall under the ‘they also serve who stand and wait’ category. The company will tolerate you in boom times as the cost of replacement is high, but you could be off-loaded when the sea gets choppy. Not a good score to have. You have to use your imagination to come up with some real successes and increase your score by at least 1 point, if not 2 points, to stay afloat in the company.
If your score is between 1 and 3, you are on dangerous territory. Obviously, the guys in the HR function or your bosses have been too busy to notice your performance. Give your career a hard look and figure out a life saving strategy to take your score to at least 4. Better still, polish your resume and post it on the more popular job sites or knock on the doors of recruitment companies. The time to act is now!
IF you are one of those lucky few who work in organisations where Performance Management (goals are set, systematic assessment is done and feedback is given to employees) is serious business, then you would at least be knowing where you stand in the organisation quicksand. However, if you work in a company where Performance Management is given a go-by, you may not have an idea how you stack up. Here is a simple quiz to help you figure that out. Your score will decide what you need to do.
Be honest and factual with the answers in this game show that will check the health of your career. You get 1 point for every ‘YES’ and 0 for every ‘NO’.
1. I was nominated for a training program in the last 12 months. YES / NO.
2. From the information I have, I know that my salary raise this year is within the top 50 per cent of the salary increases in the company. YES / NO.
3. I am always included in the cross-functional teams that the company sets up for major decisions or projects. YES / NO.
4. My professional needs and aspirations are addressed by my organisation through appropriate job rotations. YES / NO
5. I have been promoted in the last 24 months. YES / NO
6. My age is lower than the average age of my peer group. YES / NO
7. My boss invests time in me. He periodically discusses my contributions with me and gives a patient hearing to all my career-related anxieties and issues. YES / NO
8. I made at least two presentations to senior management teams or the board on project successes in the last 12 months. YES / NO
9. I am always called in for important meetings with customers or when senior officials visit us from our parent company. YES / NO
10. In the rare instance where I mess up a project or miss a deadline, I never get pulled up and my boss actually offers help in the form of additional resources. YES / NO
If you score a 10 on 10, your career is on velvet. You are on a solid wicket. Continue to give your best shot to the company and you will continue to get rewarded and recognised by it. Banish any thoughts of seeking greener pastures.
If your score is 8 or 9, you are doing fine. However, there is scope to improve the score to the perfect 10. Study more successful people in the company to take your score up by at least one more point in the next one year. You are a valued contributor and an asset to the organisation.
If your score is 6 or 7, you would be called a solid citizen. You are respected, wanted by the company and seen as a solid and reliable employee who will do a job well. However, a similar score would be unwelcome next year.
If your score is 4 or 5, you fall under the ‘they also serve who stand and wait’ category. The company will tolerate you in boom times as the cost of replacement is high, but you could be off-loaded when the sea gets choppy. Not a good score to have. You have to use your imagination to come up with some real successes and increase your score by at least 1 point, if not 2 points, to stay afloat in the company.
If your score is between 1 and 3, you are on dangerous territory. Obviously, the guys in the HR function or your bosses have been too busy to notice your performance. Give your career a hard look and figure out a life saving strategy to take your score to at least 4. Better still, polish your resume and post it on the more popular job sites or knock on the doors of recruitment companies. The time to act is now!
RULES FOR BANKS
What rules apply to a bank if they don’t process a cheque on time, either when they receive it from a customer directly or from another institution?
The time that a bank will take to process a cheque (local and outstation) is clearly mentioned at the bank branch, or, in most cases, also on the bank’s website. If the bank has failed to process a cheque and credit your account within the specified time, you should take up the matter with the bank where you had deposited the cheque. In most cases, the problem would get solved here itself. However, if you fail to get a satisfactory answer, you should approach the banking ombudsman. Ideally, when you deposit a cheque in a bank branch, you should get the receipt stamped. This will prove the date the cheque was deposited on.
The time that a bank will take to process a cheque (local and outstation) is clearly mentioned at the bank branch, or, in most cases, also on the bank’s website. If the bank has failed to process a cheque and credit your account within the specified time, you should take up the matter with the bank where you had deposited the cheque. In most cases, the problem would get solved here itself. However, if you fail to get a satisfactory answer, you should approach the banking ombudsman. Ideally, when you deposit a cheque in a bank branch, you should get the receipt stamped. This will prove the date the cheque was deposited on.
OLD REPAYMENT RECORD
My car loan got over in August 2008. Will the bank send me a letter stating that I have repaid the loan?
Once you have paid the last instalment of the car loan, your loan account is closed by the bank. The bank then sends a No-objection Certificate (NOC) stating that you have duly paid the loan and there is no amount outstanding against your name. Along with the NOC, the bank will send you a letter for the regional transport office and the insurance company stating that you have paid the loan. You will have to take this letter to the offices concerned with the relevant original papers so that name of the bank is removed from the vehicle registration paper. If you have not received the letter from your bank, call them up and ask for the letter. Also the letter may not have reached you if you have changed your correspondence address during the loan tenure and did not inform the bank
Once you have paid the last instalment of the car loan, your loan account is closed by the bank. The bank then sends a No-objection Certificate (NOC) stating that you have duly paid the loan and there is no amount outstanding against your name. Along with the NOC, the bank will send you a letter for the regional transport office and the insurance company stating that you have paid the loan. You will have to take this letter to the offices concerned with the relevant original papers so that name of the bank is removed from the vehicle registration paper. If you have not received the letter from your bank, call them up and ask for the letter. Also the letter may not have reached you if you have changed your correspondence address during the loan tenure and did not inform the bank
UNOPERATED SAVING ACCOUNT
I haven't operated my savings account for over three years. How can I reactivate it?
Usually a bank declares an account inactive when no transaction happens in it for a year. If it stays inactive for over two years, it is declared dormant. In your case, the bank would have declared your account dormant. To reactivate it, you will have to submit an application to the bank along with a photo identity proof. In most cases the account gets activated within 24 hours. If you have not maintained the minimum quarterly average that the bank stipulates, you will have to the pay the necessary charges.
Usually a bank declares an account inactive when no transaction happens in it for a year. If it stays inactive for over two years, it is declared dormant. In your case, the bank would have declared your account dormant. To reactivate it, you will have to submit an application to the bank along with a photo identity proof. In most cases the account gets activated within 24 hours. If you have not maintained the minimum quarterly average that the bank stipulates, you will have to the pay the necessary charges.
LOAN AGAINST MUTUL FUNDS
Can I take a loan against mutual funds (MF)? If yes, which banks can I apply to and what are the costs involved?
Most banks that provide loan against shares also provide loans against MF units. Not all schemes will be approved by the bank. The bank will also keep a margin on the market value of the units
Most banks that provide loan against shares also provide loans against MF units. Not all schemes will be approved by the bank. The bank will also keep a margin on the market value of the units
REBATE ON HOME LOAN FROM A RELATIVE
Can I take home loan from a relative? I heard that only the interest component will be considered for exemption from taxes. What documents will be required for this?
Yes, you can take a home loan from your relatives. Under Section 24 of the Income Tax Act, 1961, tax deduction benefits will be available only on the interest paid. However, no tax deduction benefits for capital repaid will be available under Section 80C. There are specific procedures to be followed while agreeing on the loan. You should consult a local lawyer, who specialises in property matters, to draft a standard loan agreement, so that all details are clear to all parties
Yes, you can take a home loan from your relatives. Under Section 24 of the Income Tax Act, 1961, tax deduction benefits will be available only on the interest paid. However, no tax deduction benefits for capital repaid will be available under Section 80C. There are specific procedures to be followed while agreeing on the loan. You should consult a local lawyer, who specialises in property matters, to draft a standard loan agreement, so that all details are clear to all parties
MONEY INSURANCE COVER POLICY
What does a money insurance policy cover? Is it a viable option?
A money insurance policy covers liquid currency, either at your house, or while it is being transported elsewhere. Various events are covered, including thefts, break-ins as well as accidents. Damage to any vessel, such as a safe, vault or a bag used to store money, is also covered. An advantage of such a policy is it even covers loss of money due to clerical or accounting errors.
With increased use of plastic, people keep less liquid currency at home, in small amounts, which do not require insurance. However, if you are in a business or profession which requires you’re keeping large amounts of money around your premises, or if you have to transport the money, getting a money insurance policy is a very good idea.
VEHICLE INSURANCE
In case of an insured vehicle, if it is stolen and recovered, but found to be in damaged conditions, what is the process of claiming insurance?
It depends on a number of factors. The insurance company with which the vehicle was covered will have to assess the damage. The company will assign their own surveyors for this, similar to any accident inspection/survey procedure.
In addition, if the police have made the recovery, you must get a document from the police station under which the recovered vehicle is kept. This document, termed a recovery memo, is issued by the station officer or officer-in-charge of the station, and lists the car, the circumstances and the condition in which it was recovered. This lists, in detail, the damages made to the vehicle. This document is the primary basis for any subsequent claims to the insurer, and proof of damage. Based on the police records, the surveyor/inspector for the insurance company will estimate and recommend the loss amount, to be settled by the company.
It depends on a number of factors. The insurance company with which the vehicle was covered will have to assess the damage. The company will assign their own surveyors for this, similar to any accident inspection/survey procedure.
In addition, if the police have made the recovery, you must get a document from the police station under which the recovered vehicle is kept. This document, termed a recovery memo, is issued by the station officer or officer-in-charge of the station, and lists the car, the circumstances and the condition in which it was recovered. This lists, in detail, the damages made to the vehicle. This document is the primary basis for any subsequent claims to the insurer, and proof of damage. Based on the police records, the surveyor/inspector for the insurance company will estimate and recommend the loss amount, to be settled by the company.
MEDICLAIM POLICY
Why is a mediclaim insurance policy required and how do I choose a suitable one?
Healthcare costs have gone up, more so in the case of critical illnesses. In case of such emergencies which involve large expenses, you need a proper cover. This is even more important if you are a salaried person with only fixed access to large emergency expenses.
There are other benefits too. The premium to take health (medical) insurance, either for self or family gives a tax benefit, being allowed as a deduction from income under Section 80D of the Income Tax Act, 1961. As far as the method of payment is concerned, the insurance company either pays directly to the hospital or other medical institution, or it reimburses your expenses. Companies which provide mediclaim policies also have a list of both illnesses they insure, and institutions where the policy may be availed of.
Any one of several insurers provide reliable medical cover. Your choice should be based on the amount, the terms and the convenience of payment of the insured amount, as well as the reputation of the insurance company concerned.
Healthcare costs have gone up, more so in the case of critical illnesses. In case of such emergencies which involve large expenses, you need a proper cover. This is even more important if you are a salaried person with only fixed access to large emergency expenses.
There are other benefits too. The premium to take health (medical) insurance, either for self or family gives a tax benefit, being allowed as a deduction from income under Section 80D of the Income Tax Act, 1961. As far as the method of payment is concerned, the insurance company either pays directly to the hospital or other medical institution, or it reimburses your expenses. Companies which provide mediclaim policies also have a list of both illnesses they insure, and institutions where the policy may be availed of.
Any one of several insurers provide reliable medical cover. Your choice should be based on the amount, the terms and the convenience of payment of the insured amount, as well as the reputation of the insurance company concerned.
Time To Run For A Cover
With more and more terrorist attacks being reported from across the country, you need to cover your life as well as assets.
Four serial blasts within six months. Many lives lost, many others left maimed for life, and still others left with nothing at all—loved ones or property. While the blasts in Jaipur, Bangalore, Ahmedabad and more recently in Delhi have left deep scars on the victims, they have also created a sense of insecurity among people.
Uncertainty prevails—be it life or property. And that gives you enough reason to take steps to secure the future, at least financially. To protect yourself from the implications of a terrorist strike, you need adequate cover for your life as well as assets. Here’s a list of insurance covers that you must have in these uncertain times.
The Must-Have Covers ,
Four serial blasts within six months. Many lives lost, many others left maimed for life, and still others left with nothing at all—loved ones or property. While the blasts in Jaipur, Bangalore, Ahmedabad and more recently in Delhi have left deep scars on the victims, they have also created a sense of insecurity among people.
Uncertainty prevails—be it life or property. And that gives you enough reason to take steps to secure the future, at least financially. To protect yourself from the implications of a terrorist strike, you need adequate cover for your life as well as assets. Here’s a list of insurance covers that you must have in these uncertain times.
The Must-Have Covers ,
Covering your Life
The risk that your life carries is death, hospitalisation and physical impairment. Accordingly, you need life insurance, health insurance and personal accident cover for the respective risks.
COVERING YOUR ASSETS
Your vehicle and house could be at risk during a terrorist strike.
The risk that your life carries is death, hospitalisation and physical impairment. Accordingly, you need life insurance, health insurance and personal accident cover for the respective risks.
COVERING YOUR ASSETS
Your vehicle and house could be at risk during a terrorist strike.
UNIT LINK INSURANCE PLAN
I want to invest Rs 30,000 annually in a unit-linked insurance plan (Ulip). How should I choose a good plan?
A Ulip would be good for you only if it fulfills your requirement and gives you the kind of return you want. Your risk appetite should be the deciding criterion in choosing the plan. For instance, if you have a high risk appetite, an aggressive investment option with a higher equity component is more suitable for you. Compare products offered by various insurance companies on parameters like expenses, premium payments, lock-in period, among others. Compare the Ulips’ performance: find out how the debt, equity and balanced schemes are performing. Also study the portfolios of various plans. Expenses are a major factor in Ulips, hence assess this parameter as well.
Ask about the top-up facility offered by Ulips. This option enables policyholders to increase premium amounts, providing an opportunity to gainfully invest any surplus funds available. Find out about the number of times you can make free switches (changes in the asset allocation of your Ulip account) from one investment plan to another. Some insurance companies offer multiple free switches every year while others do so only after a stipulated period. After assessing all these factors, you can make your choice.
A Ulip would be good for you only if it fulfills your requirement and gives you the kind of return you want. Your risk appetite should be the deciding criterion in choosing the plan. For instance, if you have a high risk appetite, an aggressive investment option with a higher equity component is more suitable for you. Compare products offered by various insurance companies on parameters like expenses, premium payments, lock-in period, among others. Compare the Ulips’ performance: find out how the debt, equity and balanced schemes are performing. Also study the portfolios of various plans. Expenses are a major factor in Ulips, hence assess this parameter as well.
Ask about the top-up facility offered by Ulips. This option enables policyholders to increase premium amounts, providing an opportunity to gainfully invest any surplus funds available. Find out about the number of times you can make free switches (changes in the asset allocation of your Ulip account) from one investment plan to another. Some insurance companies offer multiple free switches every year while others do so only after a stipulated period. After assessing all these factors, you can make your choice.
TAXABILITY OF PENSION PLANS
Please explain the taxability of pension plans—with life cover and without life cover. If I have not claimed any deduction from my total income under Section 80CCC at the time of depositing the premium amount, will either of my pension or withdrawal be considered as tax-free?
The ‘with cover’ pension plans offer an assured life cover in case of an eventuality, even if the corpus built till the date of death happens to be below that amount. Under the ‘without cover’ pension plan, the corpus built till the date of death (net of deductions like expenses and premiums unpaid) is given out to the nominees in case of an eventuality, with no sum assured. The taxability of a pension plan is determined in two stages. The first is at the time of making annual premium payments. For life insurance plans, the premium which is paid is eligible for deduction under Section 80C. On the other hand, Premium payments towards pension plans are eligible for deduction under Section 80CCC. The overall limit for deduction under Sections 80C and CCC is Rs 1 lakh. In other words, one is eligible for same tax deduction for the premium amount paid for; with or without life cover pension plans.
At the time of maturity, the commuted value of the pension which is received from a life insurance plan is tax-free. However, the monthly pension amounts are fully taxable, irrespective of whether or not the plan holder claimed the deduction under Section 80C or CCC at the time of payment of premium.
At the time of maturity, the commuted value of the pension which is received from a life insurance plan is tax-free. However, the monthly pension amounts are fully taxable, irrespective of whether or not the plan holder claimed the deduction under Section 80C or CCC at the time of payment of premium.
HEALTH INSURANCE
How is health insurance premium decided? Why do different people have different premiums?
The amount of premium for medical insurance depends on numerous factors and is calculated on the extent and nature of the cover you want. The rate of premium is directly related to the amount of sum insured. Also, if the insured is at a higher risk, he will be charged more premiums. For example, an older person will have to pay a higher premium for health insurance for the same sum insured. Further, two people with similar profiles may have to pay different premiums as their medical conditions may differ. Insurance companies also take into account the medical condition of the insured in the previous years and the number of claims filed by a person in last one year. All these conditions impact the premium amount for the future years.
The amount of premium for medical insurance depends on numerous factors and is calculated on the extent and nature of the cover you want. The rate of premium is directly related to the amount of sum insured. Also, if the insured is at a higher risk, he will be charged more premiums. For example, an older person will have to pay a higher premium for health insurance for the same sum insured. Further, two people with similar profiles may have to pay different premiums as their medical conditions may differ. Insurance companies also take into account the medical condition of the insured in the previous years and the number of claims filed by a person in last one year. All these conditions impact the premium amount for the future years.
RENEWAL OF POLICY
How to renew a life insurance policy online. Is it mandatory to have a Visa card for that? What are the other methods?
First, check with the insurance company if they have the option of online payment of renewal premium. Most insurance companies today have their own websites, through which anyone can pay premium online, provided he has a valid Master or a Visa debit/credit card. Another way of making premium payments is by using Net banking accounts of authorised banks. Once you click on the bank with which you have a Net banking I.D., you are directed to the online page of your banker, where you type in your bank login I.D. and password. On logging in, the total amount to be paid to the insurer is displayed. After the transaction is successfully completed, a digitally signed e-receipt is generated for your record.
First, check with the insurance company if they have the option of online payment of renewal premium. Most insurance companies today have their own websites, through which anyone can pay premium online, provided he has a valid Master or a Visa debit/credit card. Another way of making premium payments is by using Net banking accounts of authorised banks. Once you click on the bank with which you have a Net banking I.D., you are directed to the online page of your banker, where you type in your bank login I.D. and password. On logging in, the total amount to be paid to the insurer is displayed. After the transaction is successfully completed, a digitally signed e-receipt is generated for your record.
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