Related Posts:
- Modes of premium payment in LIC
- How to change address in LIC?
- How to pay premium in LIC?
- What is meant by rider premium?
- How to get Loan in LIC of India?
- What are LIC Age Proofs?
Showing posts with label Information. Show all posts
Showing posts with label Information. Show all posts
Saturday, March 20, 2010
Changing the mode of premium payment
In the middle of the course of premium payment the policy holder may want to change his mode of premium payment which is a easy task. The simplest way is to contact your agent and he will take care of everything else. Otherwise the policyholder has to go to the concerned branch where his policy was taken and give them a written statement that the mode of payment has to be changed.
Friday, February 12, 2010
Late free or fine for delayed payment of premium in LIC
If the premium amount is not paid on the due date then the policy is considered to be a lapsed policy. However the policy can be revived within six months of the policy lapsation paying a small amount as the interest.
So how the delayed payment interest is calculated?
LIC considers the delay of 1 month 14 days as one month. 1 month 15 days to 2 months 14 days as 2 months and like that. A delay of just 15 days will also be considered as a delay of one month. And the fine will be charged at the rate of 8%.
For example a person has to pay a premium of Rs. 2000/- bu he makes a delay of more than 2 months 14 days in paying the premium then the delay will be considered as a 3 months delay. The late fee rate for Rs. 1% premium for 3 months at the rate of 8% is 0.01999 Therefore the late fee he has to pay is 2000 x 0.01999 = Rs. 39.98/-. The total amount he has to pay is 2039.98.
So how the delayed payment interest is calculated?
LIC considers the delay of 1 month 14 days as one month. 1 month 15 days to 2 months 14 days as 2 months and like that. A delay of just 15 days will also be considered as a delay of one month. And the fine will be charged at the rate of 8%.
For example a person has to pay a premium of Rs. 2000/- bu he makes a delay of more than 2 months 14 days in paying the premium then the delay will be considered as a 3 months delay. The late fee rate for Rs. 1% premium for 3 months at the rate of 8% is 0.01999 Therefore the late fee he has to pay is 2000 x 0.01999 = Rs. 39.98/-. The total amount he has to pay is 2039.98.
Related Posts:
- How to get Loan in LIC of India?
- What is Surrender Value in LIC of India?
- What are LIC Age Proofs?
- How to change address in LIC?
- LIC Nominee
- How to pay premium in LIC?
- Modes of premium payment in LIC
- What is meant by rider premium?
- What is meant by Cooling Off Period?
Saturday, January 30, 2010
LIC Resident Proof Documents
For taking a LIC policy the proposer should submit his resident proof. Any of the following documents can be submitted as a resident proof
1. Electricity Bill
2. Telephone Bill
3. Ration Card
4. Bank Account statement
5. Passport
6. Voter Id
7. Driving License.
1. Electricity Bill
2. Telephone Bill
3. Ration Card
4. Bank Account statement
5. Passport
6. Voter Id
7. Driving License.
Related Posts:
Thursday, January 28, 2010
What are single premium policies?
If the policy holder has a lumpsum sum amount and he doesn't want to pay the premiums in regular intervals but only as a single premium he can do it through the single premium policies. In single premium the premium is paid only once and the policy holder can enjoy the benefits of the policy during the maturity time. And again this mode of payment is not available with all the policies. Some policies allow both the regular premium payment. A good example for this is Jeevan Tarang and some policies allow only this kind of premium payment. The recently launched Jeevan Nischay is a good example for this. We will discuss some good single premium policies in the future posts.
Related Posts:
- Loan in LIC of India?
- How to change address in LIC?
- What is meant by Cooling Off Period?
- What is Surrender Value in LIC of India?
- Who is a nominee?
- Late Fee for delayed payment of premium
Wednesday, January 27, 2010
What is meant by cooling off period?
This is something like money return offer within a specific period of policy purchase date if the policy holder is not satisfied with the policy. This is called the cooling off period. The most important thing to note that this cooling off period option is not available with all LIC policies. Mostly this policy will be available with some of the single premium policies. Since the policy holder pays a lumpsum amount in a single time he is given an option to take it back in the cooling off period if he found that the policy conditions are not suitable to him.
Related Posts:
- Late Fee for delayed payment of premium
- What are Single Premium Policies?
- What is Surrender Value in LIC of India?
Monday, January 25, 2010
Loan in LIC of India
Loan may be available to the policy holders of LIC of India subject to the conditions of the policy. The loan value is calculated based upon the surrender value. Approximately 85 % to 90% of the surrender value will be the loan value. The interest for the loan will be around 9%. If the loan is not repaid properly then during the time of claim the interest along with the loan amount will be deducted from the claim amount and the remaining will be paid to the policy holder. I hope it is better to repay LIC loans
Related Posts:
- Late Fee for delayed payment of premium
- What is Surrender Value in LIC of India?
- Loyalty Additions in LIC
Friday, January 22, 2010
LIC Policy Surrender / Surrender Value
What is meant by surrender of policy?
A policy surrender happens when a policy holder wants to finish up the contract with the insurance company before the policy term. That means he doesn't want to pay or unable to pay anymore premiums to keep the policy in force.
The eligibility for surrendering the policy is
The policy should be inforce for atleast 3 years.
So how much will be paid to the policy holder if he surrenders the policy? The calculation of surrender value depends upon the paid up value of the policy.
A policy surrender happens when a policy holder wants to finish up the contract with the insurance company before the policy term. That means he doesn't want to pay or unable to pay anymore premiums to keep the policy in force.
The eligibility for surrendering the policy is
The policy should be inforce for atleast 3 years.
So how much will be paid to the policy holder if he surrenders the policy? The calculation of surrender value depends upon the paid up value of the policy.
Related Posts:
- How to get Loan in LIC of India?
- Late Fee for delayed payment of premium
- What are Single Premium Policies?
- What are LIC Age Proofs?
Saturday, January 16, 2010
LIC Age Proofs
The following are usually accepted as age proofs by LIC of India:
School certificates containing the date of birth.
College certificate containing the date of birth.
Birth certificate.
Certificate from the sevicing employer. The age must have been
verified by the employer.
Indetity cards issued by the government.
Passport.
School certificates containing the date of birth.
College certificate containing the date of birth.
Birth certificate.
Certificate from the sevicing employer. The age must have been
verified by the employer.
Indetity cards issued by the government.
Passport.
Related Posts:
- LIC Resident Proof Documents
- LIC Nominee
- How to change address in LIC?
- Late Fee for delayed payment of premium
Monday, January 11, 2010
Address change in LIC Policy
Policy holder should inform LIC when he changes his residential address. This is good for both the policy holder and the insurance company.
Policy holder can do this by writing a letter stating that he has changed his address. The letter should contain the following three things
- The policy numbers he is having.
- His old address.
- His new address.
This letter should be handed over in the branch in which he has taken the policies.
Policy holder can do this by writing a letter stating that he has changed his address. The letter should contain the following three things
- The policy numbers he is having.
- His old address.
- His new address.
This letter should be handed over in the branch in which he has taken the policies.
Related Posts:
- What are LIC Age Proofs?
- LIC Nominee
- How to pay premium in LIC?
- Late Fee for delayed payment of premium
Thursday, January 7, 2010
LIC Assignment
The policy holder has complete rights to assign his policy to another person. Th person who is getting the policy assigned is called assignee and the person who is assigning the policy is called assignor. Upon the assignment of a policy the policy holder declares that all the benefits of the policy on the maturity of the policy or on the death of the policy holder belongs to the assignee and not to the policy holder or his nominee. On the assignment of a policy the nomination automatically becomes ineffective.
The assignment can be made to an assignee on the true love or affection or upon the financial needs of the policy holder. The policy holder can assign the policy to a financial institution for his financial needs and when the financial contract between the policy holder and the financial institution is finished the policy should be reassigned to the policy holder.
The assignment can be made to an assignee on the true love or affection or upon the financial needs of the policy holder. The policy holder can assign the policy to a financial institution for his financial needs and when the financial contract between the policy holder and the financial institution is finished the policy should be reassigned to the policy holder.
Related Posts:
LIC Nominee
Nominee is a person who is assigned by the policy holder to receive the benefits upon the death of the policy holder. A nominee can be anyone assigned by the policy holder. It is not mandatory that he should be a legal heir or blood relation of the policy holder.
It is optional for a policy holder to assign nominee for his policy. But it is a god practice to assign a nominee. The policy holder can change his nominee anytime without prior notice. If the policy holder cancels the nomination then the nomination becomes ineffective. Policy holder can change his nominee any number of times. If the policy finishes its period and the policy holder is alive then also the nomination becomes ineffective. If the nominee dies before the death of the policy holder then also the nomination becomes ineffective. If the policy holder opts to change the nominee he should contact the branch in which the policy was taken and the change should be endorsed in the policy.
If the policy holder dies during the policy period and their is no nominee for his policy then the benefits of the policy will be delivered to his legal heirs.
It is optional for a policy holder to assign nominee for his policy. But it is a god practice to assign a nominee. The policy holder can change his nominee anytime without prior notice. If the policy holder cancels the nomination then the nomination becomes ineffective. Policy holder can change his nominee any number of times. If the policy finishes its period and the policy holder is alive then also the nomination becomes ineffective. If the nominee dies before the death of the policy holder then also the nomination becomes ineffective. If the policy holder opts to change the nominee he should contact the branch in which the policy was taken and the change should be endorsed in the policy.
If the policy holder dies during the policy period and their is no nominee for his policy then the benefits of the policy will be delivered to his legal heirs.
Monday, January 4, 2010
Ways of paying LIC premium
Usually the premium payment for the LIC policies are made in three
different ways. They are
1. Payment through the LIC agent from whom the policy was bought. This
is most widely used method for paying the premium. The agents will
remind the policy holders when the due period is near. This avoids the
lapse of policies and increases the income of the corporation. But it
is not sure that all agents will remind near by the due time.
According to the corporation it is the sole responsibility of the
policy holder to pay the premium on time. However the corporation will
also send a letter to the policy holder when the due period is near.
Payment through the lic branch offices:
If the policy holder has decided to pay the premium by himself he can
pay the premium at any lic branch office across india. All the
branches are interconnected through the network. The policy holder
will get the computer generated receipt as soon as he pays the
premium.
Online payment:
According to me this is the most easiest and comfortable mode of
premium payment. There is no working hours restriction in this way of
premium payment. The payment can be made round the clock. If you have
a credit card or internet banking account this is the most preferred
way. For this you should get registered in the lic website and enroll
your policies there. Proper guidelines are given in the lic site.
different ways. They are
1. Payment through the LIC agent from whom the policy was bought. This
is most widely used method for paying the premium. The agents will
remind the policy holders when the due period is near. This avoids the
lapse of policies and increases the income of the corporation. But it
is not sure that all agents will remind near by the due time.
According to the corporation it is the sole responsibility of the
policy holder to pay the premium on time. However the corporation will
also send a letter to the policy holder when the due period is near.
Payment through the lic branch offices:
If the policy holder has decided to pay the premium by himself he can
pay the premium at any lic branch office across india. All the
branches are interconnected through the network. The policy holder
will get the computer generated receipt as soon as he pays the
premium.
Online payment:
According to me this is the most easiest and comfortable mode of
premium payment. There is no working hours restriction in this way of
premium payment. The payment can be made round the clock. If you have
a credit card or internet banking account this is the most preferred
way. For this you should get registered in the lic website and enroll
your policies there. Proper guidelines are given in the lic site.
Related Posts:
- How to pay premium in LIC?
- Modes of premium payment in LIC
- What are Single Premium Policies?
- Late Fee for delayed payment of premium
Thursday, December 31, 2009
ULIP Plans in LIC
Ulip plans of LIC of india:
ULIP stand for unit linked insurance plans. Thes plans are involved with the share market of india. The amount paid by the policy holder is invested in the share market for buying the units. Usually one unit denotes one share. Some 30% to 40% of the premuim paid by the policy holder is taken as administration charges and part of the rest of ghe premium is taken towards the life cover of the policy holde. The rest o the amount will be investes on buying the shares for the policy. The minimum lock in period for these kinds of policies will be a minimum of 3 years and a maximum of 5 years. The lock in period denotes the period for which the premium should be paid by the policy holder towards the insuranc company without fail. After the ck in period it is the choic of the policy holder to pay the premium. If he pays the premium units will be bought on his policy. The policy holder canalso surrender his policy after the lockin period.
The benefit or profit in these kinds o policy ourely depends uopon the NAV(NET ASSET VALUE). This value denotes the peice of a single share or unit on the current day. If the policy holder has dwcided to surrender his policy he should check the number of units in his account(this will be notified by lic periodically or it csn be enquired at an lic office) and the value of a single unit then multiply them together to find the current total value. some of the plans available in the lic on this basis are
Money plus
Market plus
Fortune plus
Child future plus
We will discuss more on these policies in the future coming posts
ULIP stand for unit linked insurance plans. Thes plans are involved with the share market of india. The amount paid by the policy holder is invested in the share market for buying the units. Usually one unit denotes one share. Some 30% to 40% of the premuim paid by the policy holder is taken as administration charges and part of the rest of ghe premium is taken towards the life cover of the policy holde. The rest o the amount will be investes on buying the shares for the policy. The minimum lock in period for these kinds of policies will be a minimum of 3 years and a maximum of 5 years. The lock in period denotes the period for which the premium should be paid by the policy holder towards the insuranc company without fail. After the ck in period it is the choic of the policy holder to pay the premium. If he pays the premium units will be bought on his policy. The policy holder canalso surrender his policy after the lockin period.
The benefit or profit in these kinds o policy ourely depends uopon the NAV(NET ASSET VALUE). This value denotes the peice of a single share or unit on the current day. If the policy holder has dwcided to surrender his policy he should check the number of units in his account(this will be notified by lic periodically or it csn be enquired at an lic office) and the value of a single unit then multiply them together to find the current total value. some of the plans available in the lic on this basis are
Money plus
Market plus
Fortune plus
Child future plus
We will discuss more on these policies in the future coming posts
Monday, December 21, 2009
What is meant by a term insurance?
What is meant by a term insurance?
Term insurance is one of the purest form of insurance. This insurance is excellent oppurtunity for a person to save his family in an economical way. In this insurance there is no survival or maturity benefits. The claim amount is given to the nominee of the policy holder on his death. The major advantage of this insuance is that it gives a very high economical protection for a family at a very cheaper rate. A post has been made with an illustration of term insurance along with the benefits. This insurance is suitable for the buiseness people and economically worth people.
Term insurance is one of the purest form of insurance. This insurance is excellent oppurtunity for a person to save his family in an economical way. In this insurance there is no survival or maturity benefits. The claim amount is given to the nominee of the policy holder on his death. The major advantage of this insuance is that it gives a very high economical protection for a family at a very cheaper rate. A post has been made with an illustration of term insurance along with the benefits. This insurance is suitable for the buiseness people and economically worth people.
Related Posts:
LIC of india - Modes of insurance payment
There are 5 modes of premium payment methods in LIC of India. LIC of India provides rebates on the premium to be paid based on the mode of payment made by the policy holder. The highest rebate is given to the yearly mode.
Quarterly : The premium has to be paid every 3 months in a policy year. Usually there are no rebates given for this mode of premium payment.
Half yearly: The premium amount has to be paid every 6 months of the policy year. Usually rebates are given to this kind of payment. However the rebate percentage varies according to the policy.
Yearly: This the most welcomed mode of payment by LIC of India. The highest rebate is given to this mode of payment since it eases the managing and accounting processes of the company for the particular policy holder.
Monthly: The policy premium has t be paid every month of the policy year. A 5% percentage of the premium amount has to be paid extra for this mode of premium. This is not the recommended form of premium payment since it increases the overhead for both the policy holder as well as the insurance company.
Salary savings scheme(SSS):
In this mode of premium payment the policy premium will be deducted from the salary of the policy holder every month automatically. The difference between monthly mode and this mode is that the extra premium has not to be paid in this mode of premium. For selecting this mode of premium the organization in which the policy holder is working should support this practice.
Quarterly : The premium has to be paid every 3 months in a policy year. Usually there are no rebates given for this mode of premium payment.
Half yearly: The premium amount has to be paid every 6 months of the policy year. Usually rebates are given to this kind of payment. However the rebate percentage varies according to the policy.
Yearly: This the most welcomed mode of payment by LIC of India. The highest rebate is given to this mode of payment since it eases the managing and accounting processes of the company for the particular policy holder.
Monthly: The policy premium has t be paid every month of the policy year. A 5% percentage of the premium amount has to be paid extra for this mode of premium. This is not the recommended form of premium payment since it increases the overhead for both the policy holder as well as the insurance company.
Salary savings scheme(SSS):
In this mode of premium payment the policy premium will be deducted from the salary of the policy holder every month automatically. The difference between monthly mode and this mode is that the extra premium has not to be paid in this mode of premium. For selecting this mode of premium the organization in which the policy holder is working should support this practice.
Related Posts:
- How to pay premium in LIC?
- Late Fee for delayed payment of premium
- Changing the mode of premium payment
Saturday, December 19, 2009
What is meant by a rider premium?
A rider premium is an extra amount paid by the proposer in order to enjoy some extra benefits in case of risk. obviously the enjoyment is only for the nominee of the policy holder.
Example: Double accident benefit rider is a very popular rider that is almost given to all the proposers. The advantage of this rider is that it is very cheap in rate and covers a maximum risk. when a proposer takes up this rider the nominee of the policy holder will get double the amount of the sum assured on the risk of the policy holder.
Example: Double accident benefit rider is a very popular rider that is almost given to all the proposers. The advantage of this rider is that it is very cheap in rate and covers a maximum risk. when a proposer takes up this rider the nominee of the policy holder will get double the amount of the sum assured on the risk of the policy holder.
Related Posts:
Insurance domain in india:
Indian insurance market is a very wide and diversed market where various variety of clients are available. It is up to the insurance companies to find their niche and stand strong on that. There are many successful insurance companies in India. For a greater period od time it was LIC of India a government of India enterprise that dominated the market. Now also it has around 16 crore policy holders. But after the reign of globalization the Indian insurance market was opened to private companies from in and out of India. From then onwards the private insurance companies also strongly competing in the Indian market. As a result of the people of India are getting wide combination of plans. Among this LIC of India since it is government of India enterprise has plans to cover people of different levels of society. The main motto of this blog is to explain the various plans, formalities and benefits of the plans of LIC of India.
Related Posts:
Saturday, November 28, 2009
Terminologies in an insurance contract
There are some terminologies involved in an insurance contract that every person taking insurance should know about. I have discussed some of the terminologies here and we can know about more as the blog grows.
Premium:
This is the amount that should be paid to the insurance company by the policy holder to keep the contract in live. According to the policy conditions if the policy is not being paid your policy may expire.
Policy Term:
This denotes a period for which the premium has to be paid to keep the policy in live according to the policy conditions.
Maturity Sum Assures or SA:
This is the amount that will be returned by the insurance company after the specified policy term.
Riders:
This is a small additional amount that will be paid by the policy holder along with the premium for extra benefits. For example if a policy holder wants his nominee to get double the SA if his death occurs due to accident then he should take the Double Accident Benefit rider that can be taken at a low cost.
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Insurance Ratio
In India Life insurance or health insurance is not a mandatory contract unlike some of the developed nations. Around 90% of the great indian population doesn't have an insurance policy. But it is common to find people with more than one insurance policy and that too with heavy policy amount. How this contradiction occurs? This is just a reflection of the contradiction between the living and educational standards of the people of India.
People of India are seeing the insurance plans not only as life cover plans but also as investment plans. They are always questing for both. It is this taste that made way to build lot and lot of different plans. The plans are available to people in all the levels of the society. For example a premium can be even an amount of Rs. 250 to thousands or lacs depending on the policy amount. There are some seasonal policies also which are called 'close ended' plans. Those policies can be taken only between a particular period of time.
People of India are seeing the insurance plans not only as life cover plans but also as investment plans. They are always questing for both. It is this taste that made way to build lot and lot of different plans. The plans are available to people in all the levels of the society. For example a premium can be even an amount of Rs. 250 to thousands or lacs depending on the policy amount. There are some seasonal policies also which are called 'close ended' plans. Those policies can be taken only between a particular period of time.
Related Posts:
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