ULIPs and mutual fund are similar type of investment but not same. As we know mutual funds are more into investments; whereas ULIPs are into investments as well as insurance. When we look into the basic concept the difference between the two is very small, and mainly consists of product structure and risk coverage.

The basic difference evolves regarding its regulation. The ULIPs are regulated by the IRDA, whereas mutual funds are regulated by the SEBI. Then the other important aspect is when we look from an industrial point of view, the main focus of mutual funds is on low costs while the main focus for the ULIPs lies in the better performance and the distribution of its products. The other aspect includes flexibility, in this case a ULIP allows us to increase our life cover and at the same time are premiums rates remain the same. This is achieved by reducing our investments. On the other hand you don’t get any life cover in mutual funds. The only option we are left is purchasing a new insurance policy which would ultimately lead to additional cost.

The other important point to be focused involves that even if the costs of the investments in ULIPs is more compared to Mutual funds, the ULIPs offer better products which are suited for long term investments, whereas mutual fund products can only be used for sole purposes or short term returns. And one more point which acts as a beneficiary in terms of insurance is, that we do not receive any insurance cover in mutual funds whereas we receive insurance cover in ULIP plans.

Mutual Funds and ULIPs both are subject to market risks; if something unfortunate happen to investor, family or nominee will receive only fund value. On the other hand ULIPs will give your family guaranteed sum assured in case of death of the policy holder.

As these investments are the most preferred investment options to invest. even a small drawback somewhere makes a strong impression in our minds. So in the case of ULIPs vs Mutual funds if we notice, ULIPs are more preferable even if both stand at the same level. Somewhere when we equate both the investment options ULIPs are more beneficial as well as flexible as per our requirements.

LIC Jeevan Nischay Summary: (Table No.199)
Jeevan Nischay is a close ended  single premium policy with guaranteed maturity benefits exclusively for existing LIC policy holders.

Advantages of Jeevan Nishchay:

  • Single Premium policy.
  • Guaranteed Maturity benefits with provision of loyalty additions.
  • Plan is exclusively for LIC policyholders.
  • Wide range of policy terms options.
  • Assured maturity benefits (Guaranteed Return + Loyalty Additions)

Assured maturity benefits equal to the Maturity Sum Assured are pre-defined. The specimen Maturity Sum Assured per Rs. 1000/- single premium is given below for some ages and terms:

Age 5 Years Plan 7 Years Plan 10 Years Plan
30 1256 1409 1715
40 1249 1400 1699
50 1226 1369 1645

In addition to the assured maturity benefits, there is provision for the loyalty additions. Depending upon the LIC’s experience, the policy will be eligible for Loyalty Addition on death during the last policy year or on the Life Assured surviving the stipulated date of maturity at such rate and on such terms as may be declared by the LIC.

Death benefit:
Death benefit under Jeevan Nishchay policy is equal to five times the single premium, if death is within first year of taking the policy. In case of the death in subsequent years, the death benefit is equal to the maturity sum assured. In case of the death in last year of the policy, death benefit is equal to the maturity sum assured with declared loyalty additions, if any.

Minimum Investment:
Minimum One Time Premium under Jeevan Nischay is Rs.10,000/- However, if premium amount is Rs. 25,000 or more, the policyholder will receive higher maturity sum assured due to available incentive.

Loans:
Loan facility will be available under this plan after the policy. The rate of interest charged for this loan amount would be determined from time to time by the LIC Of India.

Surrender:
Policyholder can surrender the policy after one year of commencement of the policy.

Eligibility Conditions and Restrictions for Jeevan Nischay:

Minimum age at entry : 18 years (completed)
Maximum age at entry : 50 years (nearest birthday)
Policy term : 5, 7 and 10 years
Minimum Single Premium : Rs. 10,000/-
Maximum Single Premium : Rs. 10,00,000/- (Premium shall be in multiples of Rs.1,000/-)
Maximum Basic Sum Assured (First Year Death Benefit) :
Lower of- Rs. 50,00,000, and 50% of total Sum Assured (total death benefit) under all existing in force policies

Cooling off period:
If you are not satisfied with the “Terms and Conditions” of the policy, you may return the policy to Life Insurance Corporation Of India within 15 days.

The Unique Identification No. of Jeevan Nischay is 512N258V01

How to Apply for LIC Of India’s Jeevan Nischay?
Contact your nearest Life Insurance Corporation Of India (LIC of India) Branch/ LIC Agent. Or
Fill the Application form to apply online. (Mumbai only)

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Note:
The above is the product summary giving the key features of the Insurance plan. This is for illustrative purpose only. This does not represent a contract and for details please refer to your policy document.

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Over the time, health insurance has proved to be one of the most asked policies. Often customers wonder about the settlement of the claims, and the process whereby the claims are settled by the insurance companies. This article will thereby give you a bit on how health insurance claims processing works.

These days, most of the insurance companies depend upon Third Party Administrator (TPA) for carrying out the procedure of the claims. The simple meaning is, one the insurance policy is sold to the policy holder, and the insurer passes on the responsibility to the TPA. This way, all the verifications and formalities are completed through the Third Part Administrator (TPA).

The insurance companies have brought two basic ways to settle the claim, such as;

Cashless option- In the cashless way, the treatment can be undertaken only at some of the specified network of hospitals. The things required to be done in this type of settlement in detailed information to e given to the TPA, and he should be informed well in advance about the treatment and the period of hospitalization planned for the insured. The amount that is claimed should be claimed by the TPA. In case of any type of exclusions the TPA settle the amount with the hospital and informs the insured.

Reimbursement option– The reimbursement option can be availed at any hospital chosen by the insured. Here, the insured takes up the treatment at the hospital and settles the bill directly. After that he can claim the reimbursement of the money spent during the tenure of the treatment by submitting all the necessary bills and documents to the TPA. After the approval of the TPA, the insured is paid the reimbursement by the insurance company.

Here, it’s observed that the Third Party Administrator (TPA) is given utmost importance for getting the claims settle. The TPA is given incentives to settle the claims and they are not linked directly to the insurance policy. So, many times, they take lot of time to make the settlements of the claim. So, it’s best to check with the TPA of the respective policy and would be helpful enough to process the claims in the near future. There are even insurance companies who settle the claims directly without any help from the TPA.

These are some of the common steps to settle your claims and get the money for the treatments done; it’s easier to go with the procedure if you are aware of the basic details beforehand.

When you look at yourself, you never think that may be at some point of time, you may fall ill, or there might come a time when you would be required you remain in the hospital. There is always the same kind of tag line you prefer, ‘why would I fall ill?’ But there is always an ‘if’ that you have to face in your life. You might be in a spree right now with more important issues in your life rather than taking hospital care insurances, but after a few years this might not remain the same case. The expenses as per the timing starts increasing, you never realize when you end up being in a hospital and searching for funds. Rather than being worried at that moment why not take precautions from now?

The ICICI Pru has come up with a new policy named ICICI Pru Hospital Care, which has acted as the best possible boon for us. It has the ability to be a pillar in unexpected situations or emergencies that emerge out of nowhere. This insurance policy provides you various benefits such as,

  • This policy provides you with benefits over your hospital bills, may it be your stay at the hospital, or operative expenses, or any such advanced level expenses which you might not be able to pay suddenly.It provided you with tax benefits.

    The policy provides you the settlement with cashless claim.

    There is coverage provided up to 20 years.

    Expenses for daily check-ups are also included in this policy.

  • All these features are in a way the best that could be offered to an ailing person. When you think about any kind of treatments or any medical expenses, the first thing that appears in your mind is the bills that you will have to deal afterwards. But now with the policy like ICICI Pru Hospital Care II, you no more need to keep the track of money record while going for any kind of treatment.

    Your family is your first priority, don’t let money become a barrier for there health. Go for the ICICI Pru Hospital Care policy and protect your family from the dangers or emergencies that may come in there life unknowingly. With the kind of features this policy appears to be providing at low premiums and for such a long period of time, I wouldn’t have been able to keep myself from purchasing it at any cost. Provide your family with the best.

    Child Fortune Plus Plan No.194 Summary:

    All of us wish to ensure the best possible future for our children. With the cost of education sky rocketing, it is all the more important that an early provision is made to ensure that your sweet child get a good head start in this competitive life.  LIC’s Child Fortune Plus is a total solution to your child’s education and other needs. The plan is a unit linked (ULIP) one offering the prospects of long term capital appreciation.

    Who is Eligible?

    LIC of India’s Child Fortune Plus Plan No.194 is a unit linked plan (ULIP) which will be allowed to the parents who have a child upto the age of 17 years last birthday. The risk cover under the plan will be on the life of the parent who will be the life assured. There will be no insurance coverage on the life of the child, but the policy will be allowed based on the age of the child. The policy will continue till the child attains the age of 25 years last birthday or till the life assured attains the age of 75 years nearest birthday, whichever is earlier. The purpose of the plan is to meet the educational and other needs of the child named as nominee in the policy.

    Features:

    Switching of funds:

    The policyholder can switch between any fund types during the policy term. On switching the entire amount is switched to the Fund opted for. Within a given policy year, 4 switches will be allowed free of charge. Subsequent switches shall be subject to a switching charge of Rs.100 per switch.

    Partial Withdrawals:

    The policyholder can partially withdraw the units at any time after the third policy anniversary subject to the following:

    1. Partial withdrawals may be in the form of fixed amount or in the form of fixed number of units.
    2.
    Under regular premium policies where premiums have been paid for less than 3 years’ and further premiums are not paid, the partial withdrawal shall not be allowed.
    3.
    Under regular premium policies where atleast 3 years’ premiums have been paid, partial withdrawal will be allowed subject to a minimum balance of two annualized premiums in the Policyholder’s Fund Value.
    4.
    Under Single Premium policies, the partial withdrawal will be allowed subject to a minimum balance of Rs. 5000/-in the Policyholder’s Fund or 10% of single premium, whichever is higher.
    5.
    Partial withdrawal from Policyholder’s Fund pertaining to top-up premiums shall be allowed only after completion of three years from the date of allocation of that top-up premium. This condition will not apply if the top-up premiums are paid during the last three years of the policy term..
    6.
    After the death of life assured during the policy term, partial withdrawal may be made by the child named in the policy if he/she is major i.e. after completion of 18 years of age or by the appointee if the child is a minor subject to an undertaking by the appointee that the partial withdrawal is solely for the benefit of the named child.

    Payment of Premiums:

    Regular premium can be paid either in yearly, half yearly, quarterly or monthly (ECS) installments. The minimum Annualized Premium (other than monthly through ECS) will be Rs. 10,000/-increasing thereafter in multiples of Rs. 1,000/-. In case of monthly (ECS) the minimum premium will be Rs. 1,000 p.m. increasing thereafter in multiples of Rs. 250/-.

    Single premium:

    Single premium can be paid subject to a minimum of Rs. 25,000 and thereafter in multiples of Rs.1,000.

    Investment Options:

    The plan offers a choice of four investment options: Bond Fund, Secured Fund, Balanced Fund, and Growth Fund; each tailored to different levels of risk and return. The Policyholder will have the option to choose any ONE of the above 4 Funds.

    BENEFITS:
    a) Benefits payable on death:
    On death of Life Assured, if the child is alive. In case of death of the Life Assured within the policy term, when the cover is in full force and the child is alive, Sum Assured shall be payable to the nominee. Also, in case of regular premium policy, when the cover is in full force, payment of all future premiums due under the policy shall be waived. Units equivalent to an amount equal to all future premiums including outstanding premiums, if any, (i.e. sum total of all premiums payable under the policy – total premiums paid under the policy) shall be credited to the policyholder’s fund. The units shall be allocated at the unit price applicable for the fund type opted for under the policy on the date of notification of death. The policy shall continue. If less than 3 years’ premiums have been paid and the policy is in lapsed condition, then the Policyholder’s Fund Value shall become payable to the nominee and the policy will terminate.

    On death of the Life Assured, after the death of the child:

    In case of death of the Life Assured during the policy term, after the death of the child, Sum Assured plus policyholder’s fund value together with an amount equal to all future premiums including outstanding premiums, if any, (i.e. sum total of all premiums payable under the policy – total premiums paid under the policy) shall be payable to the nominee/ legal heir, as the case may be, at that time and the policy shall terminate. This shall also be applicable in case of simultaneous death of life assured and the child nominee.

    On death of child before life assured’s death: The policy will continue till maturity or till the life assured survives, whichever is earlier.

    On death of child after life assured’s death: An amount equal to the Fund Value of units shall be payable to the legal heir of life assured and the policy shall terminate.

    b) Benefits payable on maturity: On the life assured or the child nominee surviving the date of maturity an amount equal to the Policyholder’s Fund Value is payable.

    Eligibility Conditions And Restrictions for Child Fortune Plus:

    1. Minimum Age at entry for child: 0 (age last birthday)
    2. Maximum Age at entry for child: 17 years (last birthday)
    3. Minimum Age at entry for Life Assured: 18 years (last birthday)
    4. Maximum Age at entry for Life Assured: 55 years (nearest birthday)
    5. Policy Term: (25 – age last birthday at entry of life assured’s child) or (75 -age nearest birthday at entry of life assured), whichever is lower Maximum Policy Term: 30 years
    6. Maximum Maturity Age: [25] last birthday of child or [75] nearest birthday of life assured, whichever is earlier.

    Cooling off period:
    If you are not satisfied with the “Terms and Conditions” of the policy, you may return the policy to LIC of India within 15 days.

    The Unique Identification Number (UIN) for LICs Child Fortune Plus plan is 512L251V01.

    How to Apply for Child Fortune Plus policy?
    Contact your nearest Life Insurance Of India (LIC of India) Branch/ LIC Agent. Or
    Fill the Application form to apply online. (Mumbai only)

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    Note:
    The above is the product summary giving the key features of the plan. This is for illustrative purpose only. This does not represent a contract and for details please refer to your policy document.

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    The term plans been launched in the recent years have been very expensive. And on top of it, you do not get proper coverage that you have in mind while taking these plans. The main focus you have while planning to but the plan is on all the elements providing life cover, saving facility, death cover as a means to protect your family. But in the recent years the policies which use to offer the covers had one or the other element missing in them. But the Kotak e-Preferred Term Plan is unique in its own way. If you are a kind who doesn’t need be dependent on anyone during any financial crises; this plan is the right kind of policy you require.

    The main aim of this plan is to provide the life cover which falls into your necessities. During the term if you die, the sum assured is provided to your family, which provides protection to your family against financial needs. Including this there are additional top-up premiums which you might have invested in during the term of your policy. These top-up premiums are provided to you in your account as per its face value.

    You family is often your prime concern during the purchase of any policy. There security is the main reason you go for buying any insurance product. And to fulfill this wish of yours the Kotak Life Insurance has been thoughtful enough in bringing out the Kotak Preferred Term Plan which enables you to provide your family and yourself a secured life. The plan suggests lower premiums for women as well as non consumers of tobacco which in a way helps suggesting a message of being healthy.

    Eligibility Criteria:

    Entry Age (as on last birthday) Min. 18 years, Max. 65 years
    Policy Term Min. 5 years, Max. 30 years
    Maturity Age Max. 70 years
    Sum Assured Kotak e-Term: Min. Rs.3,00,000, Max. 24,99,999
    Kotak e-Preferred Term: Min. Rs.25,00,000, Max. Subject to underwriting
    Annual Premium Min. Rs.1,800, Max. Based on Sum Assure

    You need to be minimum 18 years of age to get this term insurance or maximum 65 years.
    The plan when studied properly is the ideal solution for every individual. This plan has got various benefits like offering high financial cover at a low premium rates. You have the option of flexible payments like paying the amount monthly, quarterly, half yearly or yearly, which provides you the option of choice of payment. You are been provided an option if you are into any kotak policies you can change your plan if you wish in between. This plan as observed is the pr risk free plan. This plan has got many special offers which pother plans do not offer on a regular basis. If you buy the plan you can have the guarantee of protection against financial assets at a nominal cost.

    Term insurance is also known as term assurance. In simple words term insurance means a type of policy that provides coverage for a certain period of time, or a specified “term” of years. The protection period may be one or more years but ordinarily is five to 35 years since such periods usually cover the needs for temporary protection. Term insurance is initially much less expensive when compared to permanent life insurance.

    TERM INSURANCE IS IMPORTANT:

    Term insurance functions in a manner similar to most other types of insurance in that it satisfies claims against what is insured if the premiums are up to date and the contract has not expired, and does not expect a return of Premium payment if no claims are filed. In short, Term Insurance gives you sum assured only in  case of death or permanent disability. As an example, auto insurance will satisfy claims against the insured in the event of an accident and a home owner policy will satisfy claims against the home if it is damaged or destroyed by, for example, a fire. Whether or not these events will occur is uncertain, and if the policy holder discontinues coverage because he has sold the insured car or home the insurance company will not refund the premium. This is purely risk protection.

    Term life insurance or term assurance is life insurance which provides coverage at a fixed rate of payments for a limited period of time, the relevant term. After that period expires coverage at the previous rate of premiums is no longer guaranteed and the client must either forgo coverage or potentially obtain further coverage with different payments and/or conditions. If the insured dies during the term, the death benefit will be paid to the beneficiary. Term insurance is the most inexpensive way to purchase a substantial death benefit on a coverage amount per premium payment basis.

    Term life insurance is the original form of life insurance  and can be contrasted to permanent life insurance such as whole life, universal life, and variable universal life, which guarantee coverage at fixed premiums for the lifetime of the covered individual. Many permanent life insurance products also build a predetermined cash value over the life of the contract, available for later withdrawal by the client under specific conditions. However, on most cash value policies like Whole Life insurance, the only way to receive the “savings” is to cash out the policy. The beneficiaries receive the face value of the insurance but NEVER the cash value with Whole Life policies. Financial advisers generally advise buying term life insurance and investing the difference elsewhere.

    Term insurance functions in a manner similar to most other types of insurance in that it satisfies claims against what is insured if the premiums are up to date and the contract has not expired, and does not expect a return of Premium Payment if no claims are filed. As an example, auto insurance will satisfy claims against the insured in the event of an accident and a home owner policy will satisfy claims against the home if it is damaged or destroyed by, for example, a fire. Whether or not these events will occur is uncertain, and if the policy holder discontinues coverage because he has sold the insured car or home the insurance company will not refund the premium. This is purely risk protection.

    What is ULIP Insurance? How it works?

    ULIP is a part linked with insurance plan. In other words ULIP is an Insurance + Investment plan. ULIPs fall in the category where they are more goal oriented and give priority towards the safety of insurance protection. This plan enables you to secure protection for your family in the event of your untimely death and at the same time provides you an opportunity to earn a return on your premium paid. In this type of investment a part of the investment is used for providing you life cover. As this insurance is combined is somewhere linked with investment, therefore the funds which are saved in turn are used in stocks or bonds, hence the value of the investment keep varying as per the investment chosen by you. In Simple words, ULIPs are structured in such a form that they can be managed according to the specific needs of the consumers and the protection received is an added benefit. In this way the ULIPs offer flexibility to their customers.

    There are certain important points to be taken into consideration before we opt for ULIP plans.

    • Firstly, we should be aware about all the charges ie. allocation charges, mortality charges etc.
    • Secondly, person can get a tax rebate of a maximum of Rs 100000 when invested in ULIP plans.
    • Third point is what are the locking period and other fine prints like surrender charges before the maturity.

    As now we know what exactly is an ULIP plan, now the next question normally pops out in our minds is how does this plan works out? No plan is easy to understand, so in the same way even it is critical to know the working of ULIP plan and how our money gets invested. ULIPs basically work like a mutual fund with a life cover involved in it. The premium is invested by them in the investments like mutual funds, bonds, stock markets. When the amount of the premium is decided the insurer firstly deducts some portion of the ULIP premium and then the rest of the premium is invested in the funds. The next step involves deduction of the mortality charges by the administration. The charges are deducted as per the type chosen by us. It may be on monthly basis or sometimes daily basis. As the fund invested by us in the ULIP plan as an underlying value, the fund value provides us the value of the asset. And as the plan gets matured, we are entitled to receive the amount of out fund as per its face value.

    The points must be considered and the proper knowledge of the ULIP plan is a must. If all these factors are viewed, this policy is very beneficial in the future.
    —–

    If you want to buy LIC ULIP policy then visit : http://www.lifeinsuranceindiaonline.com/ulip-plans/

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    LIC Gratuity Plus Summary:
    LIC’s GRATUITY PLUS PLAN is a unit linked plan (ULIP) for management of Gratuity Funds. GRATUITY PLUS PLAN is suitable for companies who desire to entrust Gratuity Fund management to an insurer and wish to have the flexibility of choice of investments. This plan is different from the traditional Cash Accumulation Plan as the returns under the Plan are linked to the performance of the chosen fund.

    Features:
    1. GRATUITY PLUS PLAN comes to you from the India’s leading insurer backed by more than 16 crore policyholders and an asset size around Rs 4,50,000 crores.
    2. Choice of 4 funds to meet various risk appetites.
    i) Bond Fund ii) Income Fund iii) Balanced Fund iv) Growth Fund
    3. Flexibility in structuring the Gratuity Costs based on performance of Fund.
    4. Facility of Switching between various funds. One switch every year is free of cost.
    5. It provides for life insurance cover at a very minimal cost. Cover can be equal to the gratuity payable for anticipated service. Alternatively, the company can also choose for each member a uniform level of cover equal to a minimum of one months salary or more .
    6. There is no bid offer spread under this scheme.
    7. Scheme can be surrendered at any time. There is no surrender penalty imposed.
    8. Hassle Free Scheme Administration.
    9. Assistance for execution of legal documents and installation of scheme.

    Special Features of Gratuty Plus Plan.
    Auto Cover:
    If the contributions are not received on the policy anniversary the policy becomes paid up. However the term Assurance Cover will be provided to the members by way of Auto Cover for a period of five years from the policy anniversary for which the contributions have not been received from the policyholder. The Term Assurance cover equal to Future Service Gratuity or number of months salary subject to a minimum of one month salary of members as opted by the policyholder will be provided as Auto Cover for which the mortality charges together with service tax if any, will be deducted by cancelling appropriate number of units from the Unit Account . At the end of five years from the policy anniversary for which the contributions have not been received from the policyholder if the policy is still in paid up condition the policy shall be compulsorily terminated.

    For more Details, please download the pdf document here –> LIC Gratuity Plus

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    Note:
    The above is the product summary giving the key features of the plan. This is for illustrative purpose only. This does not represent a contract and for details please refer to your policy document.

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    As in this era, uncertainties do not happen after giving a warning. You never realize what would happen next and where would your life lead you to? Let it be the most secured place, but one thing that you would need at every step of your life that is money. You are aware that after a certain age you do not get regular incomes as before. To avoid coming across such a barrier every other individual looks forward for a plan that guarantees a regular flow. After taking this demand into consideration the MetLife India Insurance has launched the new plan that is Met Monthly Income Plan which promises a regular income flow as well as income benefits.

    The Met Monthly Income Plan is very different in its own way. There is no other private sector launching such a scheme until now. The Met Life Insurance company has been innovative in providing you with not only a way to save your income for future but also it’s a way to get add on benefits with are complementary with this policy. The best part is the income plan can be extended up to more than 15 years which in a way provides a very good deal.

    The plan has provided a number of benefits other than monthly savings; it provides a very limited period of the payments of the premiums. They provide you flexibility of decision; you can choose the tenure of your policy as per your requirements. There are various bonuses as well as tax benefits provided by the company. The payment for the premiums is chosen by you as per your capacities. The best part lies where you get your monthly income for a very longer period of time than expected. Not only the monthly income is held out till the insured, in case of the death of the insured the nominee would get the 25 % of the sum assured as per the policy immediately.

    The Met Monthly Income Plan has given the saving another step which involves a betterment in that part of society. This policy is way of protecting your life from the economic ups and downs which keep happening in the country. You need to be prepared to have any financial problems which occur unknowingly. You are been given every benefit in only one policy in low investment. You are getting the benefits of 3 polices in just one take that is accidental benefits, savings , death benefits that too at a nominal cost which has been kept so that every individual can afford the policy. This scheme would be the best investment you could do for your family ever.

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