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Health Insurance

How to Get Your Ayushman Bharat Yojana Card?

How to Get Your Ayushman Bharat Yojana Card?

The Ayushman Bharat Yojana is a scheme launched by the Indian government in September 2018. This scheme aims to provide free health care to people with a low income. The Ayushman Bharat Yojana applies to all beneficiaries who are identified by the SECC 2011 and who are already a part of the RSBY scheme. The process of applying to the scheme and getting a Ayushman Bharat Yojana Card is simple.

Check Your Ayushman Bharat Yojana Scheme Eligibility

Before actually getting your Ayushman Bharat Yojana Card, you will have to check if you are eligible for the scheme. You can follow the steps given below to check your eligibility:

Step 1: Visit the government website for Ayushman Bharat Yojana (https://www.pmjay.gov.in/) and click on the ‘Am I Eligible’ button.

Step 2: Enter your mobile number and click on ‘Generate OTP’.

Step 3: Select your state and search by your name/ ration card number/ HHD number/ mobile number.

Step 4: Based on the results, you can know if you and your family are eligible for coverage under the scheme.

You can also contact any Empaneled Health Care Provider (ECHP) or call the Ayushman Bharat Yojana call center at 14555 or 1800-111-565 to know about your Ayushman Bharat Yojana eligibility.

The documents required to apply for the Ayushman Bharat Card are:

  • Caste Certificate
  • Income Certificate
  • Identity and Age Proof (Aadhar Card/ PAN Card)
  • Details of mobile number, email address and residential address.
  • Documents stating the current family status.

Ayushman Bharat Yojana Card Generation

Once you know that you’re eligible for the Ayushman Bharat Yojana Scheme, you can work towards getting an e-card. This card is also known as the Ayushman Bharat Yojana Golden Card. Before this card is issued to a beneficiary, government officials verify the identity of the person at a PMJAY kiosk. This is done with the help of a document like an Aadhar Card or Ration Card. The family identification proofs can include a government certified list of members, RSBY Card and a PM Letter. After the verification is complete, the e-card is printed along with the unique AB-PMJAY ID.

Get Your Ayushman Bharat Yojana Card Online

You can also get your Ayushman Bharat Yojana Golden Card online. To get the PMJAY Golden Card, you can follow these steps:

Step 1: Visit the official PMJAY website (https://mera.pmjay.gov.in/search/login) and log in with your registered mobile number.

Step 2: Enter the CAPTCHA code and generate the OTP.

Step 3: Opt for the HHD Code.

Step 4: Provide the HHD code to the CSC (Common Service Centre) to check the HHD code and other details.

Step 5: The CSC representatives, who are also known as Ayushman Mitras will complete the remaining process.

Step 6: After the process is completed, you will have to pay Rs. 30 to get your Ayushman Bharat Yojana Card.

The Ayushman Bharat Yojana Card has made the process of getting treatment through the PMJAY scheme cashless and paperless. When the patient is availing treatment at an empaneled hospital, he/she will need to show their e-card.

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Motor Insurance

How to Get VIN, Chassis Number, and Engine Number Online?

How to Get VIN, Chassis Number, and Engine Number Online?

When it comes to vehicles, people think that their registration number is the most important thing. However, in addition to it, other numbers are equally important. These are- vehicle identification number (VIN), engine number, and chassis number. You can easily find these numbers on your vehicle’s registration certificate or chassis and the engine of your vehicle where the numbers are inscribed.

But in case you can’t locate these numbers or need them urgently, you can always get them online. Before understanding how to get VIN, chassis number, and engine number online, let’s understand what these three numbers mean and why they are important.

What is a vehicle identification number?

A Vehicle Identification Number (VIN) is a code of 17 characters used to identify private and commercial vehicles. This code is created using various numbers and letters and is unique for each vehicle.

What is a chassis number?

The chassis number is nothing but the last six characters of your vehicle identification number.

What is an engine number?

The engine number is a unique code given to each engine of a vehicle.

Why are these numbers important?

These three numbers serve the main purpose of identifying the vehicle. The VIN possesses important details related to your vehicle like the place of production, year of manufacture, RTO location, insurance policy, etc. Whereas the chassis and engine number can identify your vehicle amongst a thousand similar ones.

Now if your vehicle is stolen, the registration number on your number plate can be easily changed. Hence to give each vehicle a unique Identity these numbers are very important.

If you are purchasing a second-hand vehicle, checking the VIN will ensure that the vehicle’s history is clean and will not create any trouble for you in the future. Having no knowledge of these numbers may lead an individual to fall prey to fraudulent dealers. These numbers can help you identify the authorized vehicles and save you from malicious acts.

How to Get VIN, Chassis Number, and Engine Number Online

These three numbers can be easily found online on VAHAN. VAHAN is an online national registry launched by the Ministry of Road Transport and Highways to help customers trace their vehicle details. Here is the process you need to follow to get these numbers on VAHAN.

1. You’ll need to visit the official website of VAHAN

(https://vahan.nic.in/nrservices/faces/user/login.xhtml).

VAHAN homepage
VAHAN homepage

2. After that, you are required to click on “Know Your Vehicle Details” from the menu bar.

3. A dialog box will open where you’ll need to enter your vehicle’s registration number and then the CAPTCHA code mentioned on the screen.

VAHAN vehicle search
VAHAN vehicle search

4. Click on “Search Vehicle”

5. All the details of your vehicle including the VIN, Chassis Number, and Engine Number will appear on the screen.

VAHAN registration details
VAHAN registration details

Vehicle identification number, chassis number, and engine number are some of the most important numbers you as a vehicle owner should know about. If you find it confusing to locate these numbers on your vehicle, follow the steps above to find the numbers online in just a few clicks.

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Insurance

How to calculate premium for Insurance?

How to calculate premium for insurance?

When you buy insurance, the company will charge you money in exchange for the coverage that it will provide. This amount of money that you pay is known as the insurance premium. If you are thinking about buying an insurance policy, questions like, ‘how to calculate premium for insurance?’ might run through your mind and we have the answer to that.

The premium is decided after considering various factors, and it is different for each insurer and each policyholder. The type of insurance policy that you opt for will decide if you pay the premium monthly, quarterly, or semi-annually. You might also have to pay the full amount at once before the coverage starts.

What is the right amount of premium one must pay for a specific good? There is no fixed set of costs for insurance premiums.

You might have the exact same good insured as someone else with the same coverage and still end up paying more premium. This is because the amount of premiums charged depends upon the insurance company and is calculated keeping in view certain factors. Let’s understand how insurance premiums are calculated.

How to calculate premium for insurance?

Insurance companies consider various personal and financial factors while calculating the premiums. While you fill in the policy form, there are various details that you are asked to provide. Depending on these the insurers evaluate the insurance premium to be charged. The main factors that affect the insurance premiums are:

1. Age: Insurers look at the age of the insured in order to predict the chances of the insurance policy being used. For instance, as young people are healthier, they are less likely to claim the insurance and therefore, might get lower premiums as compared to older people.

2. Type of coverage required: Higher the coverage more is the premium. For instance, an auto insurance plan with liability only will have a less premium as compared to a plan that includes medical expenses too.

3. Occupation and income: Some occupations, such as pilot, soldiers, gas industry workers, etc. are considered more dangerous than others by the insurers. People working in these fields might have to pay higher premiums compared to people working in other safer areas. Insurers also look at how much a person earns to ensure that they will be able to afford the premium payments. Debt is another factor that influences the cost of your premium.

4. Personal information: The insurance company takes a very close look at the personal aspects of the policyholder’s life such as medical history, credit history, marital status, lifestyle, habits like smoking, etc.

Actuaries are appointed by most insurance companies to assess the risk of financial loss using statistics and mathematics to predict the probability of the insurance being used. They create a table that is given to the insurance company’s underwriting department, the professionals there then use this information to calculate the premiums.

To get the best coverage at an affordable price, it is important to take your time and thoroughly research through the various option available, both online and offline. Understanding the premium calculation process might help you to predict the amount of premium that might be charged and plan things accordingly.

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Life Insurance

How is GST on life insurance premiums calculated?

How is GST on life insurance premiums calculated?

The introduction and implication of the Goods and Services Tax (GST) has affected the various sectors of the Indian economy and the insurance sector is no different. From premiums to the maturity amount, GST has an impact on every aspect of an insurance policy. Let’s understand the effect of GST on Life Insurance Premiums through this article.

GST and life insurance

Before GST service taxes were levied on life insurance premiums. These service taxes amounted to 15% and included taxes like Basic Service Tax, Krishi Kaylan Cess and Swachh Bharat Cess. After GST was introduced, the amount of GST on life insurance premiums was set at 18%.

GST has helped in standardizing the taxes levied on life insurance plans which has increased the competition in the insurance sector compelling insurers to lower their premium rates. Low premium rates have made availing and taking up life insurance easier and more affordable.

How to calculate GST on life insurance premiums?

For different types of life insurance policies, there are different rates that are used to calculate the GST. The tax is levied on the premiums of the insurance policy. Given below are the various rates of GST which are calculated according to the value of service:

  • The gross premium is reduced by the amount allocated for savings or investment on the behalf of the policyholder.
  • For single premium annual policies, 10% of the single premium will be calculated and charged as GST.
  • In other plans, 25% of the premium will be charged for the first year, and 12.5% of the premium will be charged in the upcoming years as GST.
  • If the policyholder has paid the total premium paid towards the life insurance’s risk cover, such as in term insurance plans, then only 18% of the total premium will be calculated as the GST.

How has GST Affected Life Insurance Premiums?

If you compare the cost-of-service tax that was levied before GST to the GST that is levied now, you will see that there has been a simple jump from 15% to 18%. As this has been passed onto the consumers, the policyholders need to be careful while looking at the premiums mentioned on the policy. They should check whether the GST charges are included in the mentioned amount and then decide accordingly.

Both existing and new policyholders have to bear the additional cost. But still, the overall impact of GST isn’t that huge. As such, GST doesn’t have any impact on the assessment of the various life insurance policies because the important parameters are unchanged. Even the function of life insurance policies, which is to provide financial protection, is the same.

When you compare various life insurance premiums, especially for term plans, make sure to look out for the application of GST on life insurance premiums. As the GST impact is the same for all insurance providers, there aren’t any changes in the selection process. But it is important to follow a proper election process to get the right insurance plan that will fulfill your expectations and offer you maximum coverage.

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Health Insurance

Health Insurance for Parents

Health Insurance for Parents

Old age brings along health ailments that are expensive to take care of. This is why we must take all precautions to protect our elderly both physically and financially against such risks. Taking up health insurance is the foremost precaution one must consider; it adds a layer of protection around not only your parents but the whole family and gives you financial aid in any kind of health emergency. Health insurance for parents offers various coverages and benefits, let’s dive deeper and understand various health insurance plans and their benefits.

1. Bajaj Allianz Silver Health Plan

Bajaj Allianz silver health plan is a health insurance policy specifically designed to suit the needs of senior citizens and is available from the age group of 46 to 70 years.

Coverage offered

The plan offers extensive coverage which includes

  • Hospitalization expenses
  • Pre and post hospitalization charges
  • Ambulance charges
  • Cover for pre-existing illnesses and cataract surgeries (only after completing the first year of the policy)
  • Over 130 Day care procedures.

Benefits offered under the policy

  • If you choose to cover your whole family under the policy, you will get a discount of 5% of the total amount.
  • You can enjoy cashless claims if you take treatment in the listed hospitals under the insurance company.
  • If you choose to opt for treatment and any other hospital, the payment borne by you will be reimbursed within 14 days.
  • The policy where’s the group payment floors if you are ready to pay a little more on the premium.
  • You can avail of tax benefits for the premium paid on this policy under section 80D of the income tax act.
  • The policy of a cumulative bonus of 5% to your limit of indemnity for every claim-free year.

2. New India Assurance Senior Citizen Mediclaim Policy

This senior citizen medi-claim policy is one of the most popular health insurance policies offered by New India assurance. The policy takes care of all hospitalization expenses for your parents including pre and post-hospitalization costs.

Coverage offered

  • Pre- and post-hospitalization expenses for a maximum of 30 days and 60 days of hospitalization respectively.
  • Hospitalization costs for injuries and illnesses
  • Ambulance charges

Benefits offered under the policy

  • The policy covers pre-existing illnesses like diabetes mellitus, hypertension, etc at just a small amount of additional premium cost.
  • If you renew the policy without a break, you can avail benefits of the cover until the age of 90.
  • Once you complete 4 claim-free years will be reimbursed the cost of the prescribed pre-acceptance health check.
  • You are eligible to get an income tax benefit for the premium you pay on this policy.

3. Oriental insurance HOPE plan

Oriental insurance HOPE- Health of Privileged Elders is a policy designed specifically for people above the age of 60. The policy offers a wide range of cover which also includes specified diseases.

Coverage offered

The policy offers wide medical coverage for situations like-

  • Accidental injuries
  • Knee replacement surgeries
  • Cancer
  • Cardiovascular diseases
  • Chronic obstructive lung disease etc.
  • All ICU and room charges and also nursing expenses are covered under the policy.
  • The policy covers emergency ambulance charges for anaesthesia, oxygen, operation theatre, doctors’, surgeons, surgical appliances, etc.
  • The policy also covers the costs of medicines, artificial limbs, prosthetic devices, and diagnostic tests.

Benefits offered under this policy

  • The policy covers all costs of domiciliary hospitalization.
  • It offers discounts on premiums on voluntary co-payment.
  • The policy offers cashless services through third-party administrators up to Rs 1 lakh.
  • The policy also reimburses you for the cost of health check-up’s after 4 consistent claim-free years.

4. United India Senior Citizen Health Insurance Plan

This policy offering from United India covers various costs of hospitalization, ICU, surgeries, consultation, and nursing. It comes with a free look period of 15 days and those in the age range of 61 to 80 years are eligible to be covered under the policy.

Coverage offered

  • The policy covers pre and post-hospitalization expenses before up to 30 days and after 60 days of hospitalization respectively.
  • Covers all the expenses related to specialist doctors, anaesthetists, and consultants’ fees.
  • The policy covers all expenses related to ICU, dialysis, radiotherapy, and prosthetic devices like cardiac valve replacement, pacemakers, vascular stents, etc
  • It covers chemotherapy and also for diagnostic tests like X-rays.

Benefits offered under this policy

  • This insurance covers treatments of hysterectomy, cataract, and hernia.
  • The insurance also covers day-care procedures provided the hospitalization lasts 424 hours.
  • It provides cashless claims at listed hospitals across India.
  • You can avail of a 5% family discount on the overall premium if you include one or more family members such as dependent children or spouses.

5. Star Health Insurance Senior Citizens Red Carpet

Star health insurance offers this red-carpet policy for individuals aged between 60 to 75 years and covers all medical expenses.

Coverage offered

  • The policy offers coverage for all medical expenses including ICU and nursing expenses.
  • The policy also covers expenses like anesthetics fees, emergency ambulance charges, surgeons fee consultation free up to 25% of the sum insured.

Benefits offered under this policy

  • This policy offers you the benefit of portability to another insurance provider.
  • You are paid a lump sum amount for the post-hospitalization expenses you incurred.
  • The claim settlement under this policy is quick and completely hassle-free.
  • You can avail of the benefit of cashless hospitalization at any of the hospitals listed under the insurer.

6. Care Freedom Plan

This insurance policy from Care Health Insurance Company offers a wide range of medical coverage without any pre-policy medical check-up’s.

Coverage offered

The policy offers complete coverage for all hospitalization expenses, day care treatments, pre and posts8 hospitalization expenses, and domiciliary care expenses

Benefits offered under this policy

  • The policy offers cashless hospitalization at over 8350+ hospitals across India
  • There are three policy term options available for 1, 2, and 3 years respectively.
  • You have the benefit of availing of an annual health check-up irrespective of your claim’s history.
  • The plan also offers dialysis covered at a fixed amount per sitting for up to 2 years.

If the health of your parents and family is of prime importance to you, you must invest in a health insurance policy. As there are plenty of options available in health insurance for parents. Compare the terms, conditions, premium rates, and tenure of different policies and choose the one that suits your and your family’s needs.

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Insurance

What Is Business Interruption Insurance?

business

What Is Business Interruption Insurance?

As a business owner, you must be ready for any kind of contingencies that might halt your business. Having the right insurance makes it easier to face such situations. One of the most sought-after insurance for business owners is business interruption insurance.

It provides coverage against the income lost due to the halting of the business by a natural disaster or other mishaps. This type of insurance is usually sold as an add-on or a rider on property or casualty policies. Under this insurance, the insurer is only liable to pay for damages for the listed damages. Let’s look into its coverage and exclusions.

Coverage under Business Interruption Insurance

  • Profits: The Insurance covers all profits the business would have made if the loss had not occurred.
  • Fixed costs: The coverage includes the fixed costs that are incurred while running the business.
  • Relocation costs: If you find a temporary location to operate your business, the insurance covers the relocation costs and also the operating costs of the temporary location.
  • Training costs: A fire or a natural disaster causes damage to the machinery. The company will then need to train its workers on how to handle the new machinery. The insurance covers the cost of training.
  • Costs incurred due to civil authority closures: A government-mandated curfew or road closure near the business premises may directly affect your business as your workforce may not be able to reach the company. The insurance also provides coverage for such losses.
  • Payroll costs: It might be difficult for a business owner to pay his employees when the business is shut. A business interruption insurance helps the owner to make payments and retain current employees.
  • Tax costs: Even if the business undergoes loss, the company still has to pay taxes. This type of insurance covers all the tax costs of the company and saves it from penalties.
  • Loan payments: A business interruption insurance covers the loan payments of the business in case of a loss.

Exclusions under Business Interruption Insurance

  • The insurance is not liable to pay for the cost for any items like glass that may have broken during the disaster.
  • The damages caused by floods and earthquakes are not covered under business interruption insurance.
  • The insurance company won’t cover costs for the income which is unaccounted for in the business’s financial records.
  • The insurance will not cover any utility costs.
  • Shutdown costs incurred due to a pandemic or communicable diseases will not be covered.

How much coverage should you opt for?

It can be hard to figure out how much coverage to opt for under this insurance. Here are some questions you can ask yourself to determine the coverage needed.

  • How long will it take for you to recover from the loss?
  • Does your business infrastructure have up-to-date safety systems?
  • Can you obtain a temporary location to restart the business?

You can also make a rough estimate of your gross earnings and projections to estimate future profits. This will help you figure out how much coverage you want.

Business interruption insurance is great to safeguard your business from disasters. It is advisable to compare the terms and conditions of various policies and only then choose the one that suits your and your business’s needs the best.

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Health Insurance

What is an Arogya Insurance Card?

What is an Arogya Insurance Card?

We know that fixed deposits are utilized for investing our extra savings, but now a fixed deposit can also be utilized to acquire health benefits. Arogya insurance card is an initiative under Ayushman Yojana where a beneficiary can enjoy cashless hospitalization provided, he/she owns a fixed deposit. This card is specially introduced for senior citizens by the KVB in association with the Vidal Health Insurance Third Party Administrator. It can be useful especially during emergency hospitalization for heart attacks, strokes, etc. Let’s dive deeper into this subject and understand its criteria, application, claim process, and also its benefits.

Criteria

Any senior citizen who wishes to apply for an Arogya insurance card must fulfill the following conditions

  • They must have a savings account in a bank.
  • They must have a new or existing term deposit of Rs.1 Lakh or above for 1 year or more.

How to apply for an Arogya Insurance Card?

1. To place a request for an Arogya insurance card, you have to sign and submit an application form.
2. You can generate this form from the FRS utility once a lien is marked on your fixed deposit.
3. Upon verification of the submitted form and the necessary documents, if you are found eligible, you will be given the Arogya insurance card.

Benefits

The policy excludes you from paying any pre-closure charges if you choose to close the fixed deposit linked with the Arogya insurance card before the due date.

  • You will avail of 5-20% discounts on hospitalization and also preferential pricing for expensive treatments.
  • You can also get 24/7 access to doctors on the phone for any queries or emergencies.
  • If you choose to get treatment at a hospital that is listed under your provider, you can get an extra 5-10% discount.
  • Get free telephonic consultation with top specialists in the medical industry.
  • If you want a second opinion before hospitalization, the Arogya insurance card covers this consultation fee.
  • Receive expert counselling services, health tips, and monthly newsletters via your email.
  • Get information about various hospitals like their treatment costs, available doctors, post-hospitalization services, etc. through your provider. Moreover, your provider will also guide you in selecting the appropriate doctors and hospitals so that you can get the best treatment.

Some important points to note

  • In case of hospitalization, you can use the Arogya insurance card to get a 90% overdraft on the fixed deposit for settlement of the hospital bill.
  • You will be charged an extra 2% interest rate above the contracted rate of interest for the fixed deposit in case of an overdraft.
  • You can continue your fixed deposit after you have repaid the availed overdraft.
  • If you wish to pre-close the deposit attached with the Arogya insurance card, you need to first close the overdraft linked to the term deposit, if any.
  • Only after this step can you close your deposit provided you submit your Arogya insurance card to the provider.

With a wide variety of medical benefits and protection against future health emergencies, an Arogya insurance card is a must-have for every senior citizen. However, It’s necessary that before getting the card, one should go through all the terms and conditions thoroughly in order to avoid any hassle or inconvenience in the future.

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Insurance

All You Need to Know About an Insurance Repository

repository

All You Need to Know About an Insurance Repository

Earlier, the insurance policy documents were available in paper form which made the policyholders concerned about the safety of the papers. On September 16, 2013 the IRDA launched the insurance repository system. Now, insurance policies can be converted into electronic form and stored with an insurance repository. This eliminates the risk of loss or alteration of the policy documents and also offers convenience to the policyholder. Let’s know more about insurance repositories and the benefits.

What is an insurance repository?

An insurance repository is a database that maintains and holds the insurance policies in electronic form on behalf of insurers. Insurance repositories are not authorized to sell insurance policies, they are only permitted to maintain the policies in electronic form and provide a record of them. E-policies provide customers with safety and convenience. Along with offering safety and convenience to the customers, an insurance repository is also bound to maintain transparency with the policyholders under the rules set by the IRDA.

The IRDA had licensed five insurance repositories. But one of them (SHCIL Projects Limited) surrendered its license in 2015. The remaining four entities are:

  • CDSL Insurance Repository Limited
  • National Insurance-Policy Repository by NSDL Database Management Limited
  • CAMS Insurance Repository Services Limited
  • Karvy Insurance Repository Limited

What is an e-Insurance account?

Insurance repositories hold the insurance policies in e-insurance accounts. Even if the insurance policies are from different insurers, they can be held and easily accessed with one account. A policyholder can open an e-IA (e-Insurance Account) with any one of the IRDA-approved insurance repositories. The IRDA only allows one e-Insurance Account per person. There is no cost for opening an e-Insurance Account. Even the services provided by the repositories are free. The policies issued before the launch of insurance repositories can also be easily converted into the electronic form by making a request to the insurer or repository.

Benefits of insurance repository

Holding policies in the electronic form have various benefits such as:

1. Safety

The biggest benefit of storing e-policies is that there is no risk of loss or damage. Holding a policy in its electronic form ensures that the policy is in safe custody. It also allows for easy access, as the policy can be viewed or downloaded at any time by accessing the e-Insurance account.

2. Single Point of Various Services

As all the insurance policies are stored in one place, changing and updating details such as address, contact number or nomination becomes easy. It also becomes easier to track your policies.

3. Simple Payout Transfers

The insurance repository system allows for efficient and faster services. Therefore, availing the policy benefits also become easier and faster, as the proceeds are electronically deposited in the registered bank account.

4. Single KYC

Keeping your insurance policy with an insurance repository will mean that your KYC formalities are already completed. This way, you won’t have to go through the KYC process every time you buy a new policy.

Insurance policies are important financial assets hence they need to be handled properly. Storing policies with an insurance repository makes a lot of tasks easy along with ensuring safety and security. Therefore, it is advisable to open an e-insurance account for your own convenience.

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Frequently asked questions about insurance repositories

  • Which insurance repositories can I choose?

    You can choose from the following insurance repositories:

    • NSDL
    • Karvy
    • Central Insurance Repository
    • SHCIL
    • CAMS
  • How can I open an insurance repository account?
    1. Download the account opening form from your preferred insurance repository's website.
    2. Fill the form.
    3. Attach your KYC documents.
    4. Submit your forms.
  • Can I change my insurance repository account?

    Yes, The account holder will have the ability to shift from one repository to another. For example, a CAMS account holder can shift to NSDL and vice versa. 

  • When did The Insurance Repository system start?

    16th September, 2013.

    • Categories
    Life Insurance

    Meaning of life Insurance (Understand the concept of life insurance)

    Meaning of life Insurance (Understand the concept of life insurance)

    So, you want to understand the meaning of life insurance? This article will talk about its concept, benefits, features, types, and more.

    • Meaning of life insurance
    • Features of life insurance
    • Benefits of life insurance
    • Types of life insurance
    • Companies that provide life insurance plans

    Meaning of life insurance

    In simple words, Life insurance is a contractual agreement between the insurance company and the insured, where the insurance company will be liable to pay a sum assured to the nominees or legal heirs of the insured in the event of policyholder’s demise. The insurance company provides this life coverage in exchange for a premium amount.

    Features of life insurance

    Now, let us talk about the features of a life insurance policy so that you can understand it better

    Insured – The individual who is provided life coverage by the insurer is called an insured. After his/her demise, the insurance company will be liable to pay the sum assured to the nominees or legal heirs of the insured person.

     

    Premium – A premium is a fee that the insured pays to the insurance company to obtain the benefit of a life cover. Maturity- Maturity is the period at which the policy term is completed and the life insurance contract concludes.

     

    Sum assured – It is a pre-determined amount that the insurance company will have to pay to the insured’s family in the unfortunate event of his death.

     

    Nominee– A nominee is an individual who is entitled to receive the sum assured. The nominee’s name and details will be mentioned in the policy contract by the insured individual. Usually, spouses, children, parents are taken as nominees in most cases.

     

    Policy term – A policy term is a specified period of time during which the insurance company provides life coverage to the insured. The policy is said to be in force during this period.

     

    Claim– In the unfortunate event of the insured’s demise, the nominees file a claim with the insurance company in order to receive the sum assured.

    Benefits of life insurance

    The purpose of life insurance is to financially protect your loved ones from the monetary loss that they may have to face in your absence. Let us look at some of the most important benefits of a life insurance policy.

    Financial security– A life insurance policy will provide your loved ones financial safety from any kind of monetary loss that they may face in the event of your demise. A good life insurance plan can help your family repay any kind of financial liabilities such as personal loans, auto loans, home loans, etc.

     

    Wealth creation – Certain life insurance policies such as ULIP policies offer the benefit of both life coverage as well as investment.
    A certain portion of your premium will be used to provide you a life cover while the rest will be invested in debt and equity markets, depending on your risk appetite. Such plans not only provide you a life cover but also invests your money systematically and grows your corpus to beat inflation.

    The sum assured along with the return from your investments will be paid to the loved ones of the policyholder in the event of his death.

     

    Tax benefit – The premium paid towards your life insurance can be claimed for income tax deduction under Section 80C of the Income Tax Act, 1961. The premium paid for your life insurance is eligible to a maximum tax deduction of up to Rs.1.5 lakh. Also, any payouts received from the insurance company are tax-free.

     

    Maturity benefit – Certain life insurance policies also provide you savings benefits. If the policyholder survives the policy period and no claims have been made, the total premium paid will be returned to the insured as savings benefit at the end of the policy term.

     

    Loan facility – You can also avail of a loan against certain life insurance policies.

    Types of life insurance plans

    There are various types of life insurance policies. Let us discuss them in detail.

    Term insurance plans

    A Term insurance plan is a traditional and most basic plan. This plan provides a life cover to the insured for a specified policy term. In case of death of the insured during this policy term, the sum assured will be paid to the nominees of the policy.

    Some term insurance plans also come with survival benefits. In such a case, if the policyholder survives during the policy term, he will receive a certain sum as a survival benefit.

    Features of term insurance

    • Provides you a high life cover at an affordable premium
    • Provides coverage for a longer duration (up to 30-year policy term)

    Whole life insurance

    Whole life insurance provides coverage to the insured for the entirety of his life (generally up to 100 years of age).

    Features of whole life insurance plans

    • Coverage is provided up to 100 years of age.
    • Premium under a whole life plan is generally paid for a limited period.
    • Whole life insurance plans come with different variants such as endowment assurance plans, money back plans, unit-linked plans, and more.

    Unit-linked insurance plans

    Unit-linked plans are also known as market-linked plans. It is a hybrid plan that provides you the benefit of life cover as well as investment returns. A part of your premium paid is used to provide you life coverage and the remaining is invested in debt/equity markets. The legal heir/nominee shall receive the assured sum as a death benefit if the policyholder dies during the policy term. On maturity of the policy, you will be paid the fund value which is equal to the premiums invested along with the returns generated by it over the term.

    Features of ULIP

    • You can choose the type of investment fund to invest in according to your risk appetite.
    • You can withdraw your funds after the completion of 5 years of policy in certain plans.
    • You can switch from one investment fund to another.
    • Higher of the sum assured or fund value shall be paid to the nominee on the death of the policyholder. However, on maturity, the fund value will be paid.

    Endowment assurance plans

    Endowment assurance plans provide the benefit of a life cover along with guaranteed savings benefits. The policyholder will receive a lump sum amount if he/she survives until the maturity period of the policy, or the nominees shall receive the sum assured on the demise of the policyholder, whichever occurs first.

    Features of endowment assurance plans

    • The life cover provided is relatively lower than other plans.
    • Coverage can be provided ranging from 10 years to 30 years

    There are 2 types of Endowment Plans- Participating plans and Non-participating plans. The former earns a bonus will the latter plan does not.

    Money Back Plan

    Under this plan, the policyholder will receive a certain percentage of his sum assured at fixed intervals. This will provide the policyholder with stable financial resources along with the benefit of a life cover. In case of the death of the policyholder, the entire assured sum shall be paid to the nominee of the policyholder irrespective of the survival benefits paid earlier.

    Features of money back plan

    • The tenure of a money-back plan ranges from 12- 15 years or 20-25 years.
    • The Money-back benefits can also be termed as survival benefits.
    • They are participating plans where the bonus is added.

    Child insurance plan

    Child insurance plans are designed to protect and safeguard your child’s future. Under this policy, life cover is provided until the end of the policy tenure. These plans also offer coverage to your child along with flexible payouts at important milestones during your child’s lifetime such as their 18th birthday or graduation, etc.

    Not only that, if the insured parent dies during the policy term a death benefit is immediately paid to the child and the policy remains in force.

    Features of child insurance plans

    • In case of the death of the insured parent, all premiums are waived off and the policy remains in force until its maturity date.
    • The insured can be a parent or a minor child, however, the primary policyholder will be the parent.
    • The child will become the policyholder when he turns 18 years of age and the policy will turn in his name.
    • Only parents of minor children are eligible for the plan.

    Annuity plans/ pension plans

    These plans are suitable for persons reaching the age of retirement and want to build a corpus for their life ahead. Under this plan, you can create a corpus for your retirement or avail lifelong income benefits from the accumulated sum. They are ideal plans for people looking to cater to their financial needs post-retirement.

    Features of annuity/ pension plans

    These plans come in 2 variants – a) Deferred annuity plans b) Immediate annuity plans

    Under deferred annuity plans you choose a policy tenure and pay the premiums to generate your retirement corpus
    Under immediate annuity plans, annuity payouts begin as soon as you buy the plan.

    Life insurance riders

    These are additional ride-on covers that you can buy along with the above-said policies to avail of better coverage benefits as per your needs. You will have to pay a little extra premium to avail the riders.

    Features of life insurance riders

    • You can choose multiple riders on your base policy.
    • Riders have their own sum assured, lower or equal to the base life insurance policy.
    • They do not come with maturity benefit and come to for force when the specified event takes place.

    Types of rider cover available

    • Critical illness rider
    • Hospital cash rider
    • Premium waiver rider
    • Accidental death and disability rider
    • Term rider

    Name of insurance companies in India that provide life insurance

    • Life Insurance Corporation of India
    • Max Life Insurance Company Limited
    • HDFC Life Insurance Company Limited
    • ICICI Prudential Life Insurance Company Limited
    • Kotak Mahindra Life Insurance Company Limited
    • Aditya Birla Sun Life Insurance Company Limited
    • Exide Life Insurance Company Limited
    • Bajaj Allianz Life Insurance Company Limited
    • PNB MetLife India Insurance Company Limited
    • Reliance Nippon Life Insurance Company Limited
    • TATA AIA Life Insurance Company Limited
    • SBI Life Insurance Company Limited
    • Aviva Life Insurance Company Limited
    • Bharti AXA Life Insurance Company Limited
    • Future Generali India Life Insurance Company Limited
    • IDBI Federal Life Insurance Company Limited
    • Canara HSBC OBC Life Insurance Company Limited
    • Aegon Life Insurance Company Limited
    • Pramerica Life Insurance Company Limited
    • Star Union Dai-ichi Life Insurance Company Limited
    • IndiaFirst Life Insurance Company Limited
    • Edelweiss Tokio Life Insurance Company Limited

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    Life Insurance Corporation

    How to get LIC policy status by SMS (Simple Guide)

    How to get LIC policy status by SMS

    Checking your LIC insurance policy status is important. Knowing the status of your policy is essential as you can confirm whether your LIC policy is registered within the LIC database or no.

    As a LIC policyholder, you can check your policy status via SMS. This provides much-needed comfort to policyholders as they don’t need to visit LIC offices to do the same. Policyholders can simply know their policy status by sending a simple SMS.

    Let us now understand the type of details you can get via LIC through SMS.

    Check your LIC policy status

    Type of Enquiry to be made

    SMS Code

    Number

    Know your premium amount

    ASKLIC <your policy number> PREMIUM

    9222492224

    Revival amount inquiry

    ASKLIC <your policy number> REVIVAL

    9222492224

    Bonus amount

    ASKLIC <your policy number> BONUS

    9222492224

    Loan amount

    ASKLIC <your policy number> LOAN

    9222492224

    Nomination

    ASKLIC <your policy number> NOM

    9222492224

    Check status of your LIC policy

    ASKLIC <your policy number> STAT

    9222492224

    Existence certificate

    ASKLIC <your policy number> ECDUE

    9222492224

    Check return status

    ASKLIC <your policy number> CHQRET

    9222492224

    Annuity amount inquiry

    ASKLIC <your policy number> AMOUNT

    9222492224

    Annuity release date

    ASKLIC <your policy number> ANNPD

    9222492224

    Illustration: Let us assume Mr. Durgesh wants to find out his premium due. All he needs to do is send the following SMS from his registered phone number:

    ASKLIC <his policy number> PREMIUM to 9222492224
    Post this, LIC will send the premium details via SMS shortly. Other similar requests can be made by following the same procedure (as shown above).

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    Chat with our super-intelligent A.I model and ask it anything about insurance and related products.

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