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12/08/2023

5 Important Reason To Consider Home Insurance While Purchasing.

Owning a House is a dream for many people. It costs every ounce of effort and hard work. Home is considered the best expensive asset, as it provides security and protection to our family and us. House plays an important role in securing lives. Then what about the security of the house?

We never make an effort to protect our homes. Confused, yet gearing up to secure it! Here is the answer for you, avail a house insurance policy. House Insurance policies protect the house owner as their investment in the house insurance coverage.

However, availing of a House Insurance policy not only helps you to secure and protect your home, but it also does a lot of things. Here are the five reasons why you need to avail yourself of the House insurance policy.

#1. Secures all essentials of your House:

A House Insurance policy covers every ounce of the belongings of your house. For example, it does not only cover the house, but it also includes the garden, backyards, garage, fences, and also. Specifically, the belongings present inside your house also. In short, it protects everything present at the sides, around, inside, and part of the house, except the land.

#2. Financial Protection to you and your Family:

Financial protection is provided under the House Insurance Policy in case of any destruction or damage to your house. For example, due to unforeseen circumstances, damage may happen to the home. This includes damage from natural disasters such as floods, storms, cyclones, earthquakes, etc. Generally, such type of unforeseen circumstances cannot be predicted.

A home insurance policy will help you recover the losses through compensation for the damage. Hence, the compensation received accordingly can be used to replenish or replace, or repair the items that are damaged due to such unpredictable scenarios.

Sounds great, right? So, you would not be needed to pay any amount for the loss that occurred. The policy will take care of it.

#3. More comfortable life even in unpleasant, even:

In case of any damage to your home or items in it because of any third-party involvement, the house insurance policy will also help you in such circumstances as well. It provides assistance by covering the loss. Unlike other insurance policies, house insurance not only does insure the house but also covers the valuables and important things in it.

As each household keeps certain kinds of valuables, ornaments, home appliances, and other important things in their house, it is important to protect them from getting lost due to some third-party intervention. House insurance, thus, plays an important role in recovering the damages suffered.

Even in case of any legal liability, the house insurance scheme will protect you. For example, some people might get injured while they are passing through or on your property, like the case in which your dog might have bitten a person. Then the insurance policy will cover the damages of such incidents as well.

Moreover, many insurance companies provide you with limited liability insurance policies, but you can still purchase the policies with additional benefits. This liability does pay the injured person with respect to all of their medical bills and any damages to such individual’s property as well.

#4. Assistance in rebuilding your life:

Sometimes disasters might make one’s life uninhabitable. In such circumstances, a house insurance policy is much more helpful. It provides and covers all the temporary costs which you had opted for because of losing your house. These temporary living costs are provided until the renovation or replacement of your house.

In the case where you opt to stay in hotels or restaurants or at any other rental place, a house insurance policy covers all such costs.
After keeping so much effort into building one’s home and losing it, it is the most agonizing situation in one’s life. However, house insurance covers all such expenses on the one hand. On the other hand, it provides you assistance through financial aid to restructure or reconstruct it totally.

Also, several Banks and other Non – Banking Financial Institutions also provide house loans as soon as possible, depending upon the house insurance scheme adopted by the individual. They provide house loans within no time to rebuild your house if you have opted for a house insurance scheme.

#5. Affordability of the Insurance scheme:

Unlike other insurance policies, the House insurance policy is one of the most affordable insurance policies. For example, a general House Insurance policy covering compensation for the damages of 50 lakh rupees (Indian Currency) will cost you just between 2000 to 5000. However, it depends upon the items and other appliances covered under the policy.

But, in general, the prices are really reasonable to the extent of its coverage. Therefore, an individual is assured of getting the maximum of the benefits from the coverage by paying a small premium and getting a lot of coverage benefits in accordance with the House Insurance policy.

These are the top and best availing benefits one can get from a house insurance policy. After acknowledging all of these special benefits provided by the house insurance policies, how can one be without purchasing them? Therefore, proceed with buying a House Insurance policy and avail the benefits as soon as possible, without getting late.

01/04/2023

Government hikes interest rates on Small Savings Schemes for April - June 2023 quarter.

Interest rate on National Savings Certificate hiked from 7.0% to 7.7% for April – June 2023 quarter.

Interest rate on Public Provident Fund has been left unchanged at 7.1%*.

19/11/2022

Important laws related to insurance in India:

We will have a look at some of the laws and regulations related to insurance that you must be aware of:

Insurance Act, 1938: These are the basic insurance laws that the insurance companies in India must comply with while conducting their business for insurance and reinsurance. This law also provides provisions related to insurance to the regulatory bodies, insurance associations, and other councils and committees.

Insurance Regulatory and Development Authority (IRDA) Act, 1999: This law mentions the rights, duties, and the functions of the IRDA under Section 14 of the IRDA Act, 1999 that the IRDA is supposed to carry out. The law clearly states that IRDA is to regulate, promote, and ensure that the insurance business in India grows in a fair and orderly manner. This law also lays down the code of conduct that insurance intermediaries are supposed to follow.
The Insurance Rules, 1939: This law ensures that the various appointment of committees, licensing of intermediaries and the rules related to the process is followed by the insurance companies while conducting business related to insurance.

The Redressal of Public Grievances Rules, 1998: This law states that the insurance company will address the grievances of its customers in accordance with the rules and regulations stated under the law.

The law clearly states the procedures that the insurance company must follow while addressing its customer’s grievances.

Amendment of Insurance Act, 2015: There were certain amendments made in the Insurance Act with the aim of boosting the insurance sector in India. One of the aims behind the amendment of the act was to increase the FDI from 26% to 49%.

Hence, these are some of the laws related to life insurance that you must be aware of. Being aware of these laws helps you make better decisions when it comes to purchasing a life insurance policy. You can also visit the official website of the IRDAI in order to get acquainted with the laws related to life insurance in detail and have a better understanding of your rights as a policyholder.

07/09/2022

When it comes to choosing a policy, always consider a policy that best suits your life stage and understand the scope of cover provided under the policy. One of the most common mistakes people make is not reviewing their policies throughout their lives. Our needs change over time, and our life insurance coverage should reflect that.

07/09/2022

Let’s start with the basics, what is nomination?

In the insurance world, the nomination is the process of naming the beneficiaries of your insurance policy.

In the case of life or accidental death insurance, the persons you nominate will receive the sum assured upon your death.

Why is it important to nominate?
If you do not nominate, there will be a delay in paying out the sum assured to your family. Insurance companies will normally wait until they receive the official Grant of Probate or Letter of Administration or Distribution Order before paying the proceeds.

Obtaining these can take several years, and your loved ones will have to go through a lot of legal hassle. By making a nomination, the probate/administration/distribution documents are not needed by the insurance company and the sum assured can be disbursed quickly.

Additionally, a nomination enables you to decide on the share of each nominee. For example, you can allocate half of the insurance proceeds to your surviving spouse, and a quarter each to your 2 children. Or allocate a percentage to each of your surviving parents since you're no longer around to support them.



How to nominate?

Nomination is usually done either during the enrollment process or after (once your policy has been issued), depending on the insurer. Your insurance company would either present you with an online nomination form, or a physical form, where you will be required to fill up details of your nominees such as name, date of birth, NRIC/Passport number, their shares, and their relationship with you.

Once you have submitted your nomination form, a final step we advise is to call your insurer to confirm that they have registered your nominees.

29/08/2022

An opportunity to revive your lapsed policy (17/8/22 to 21/10/22) . Contact your nearest Branch, LIC Agent or us @9810056162 today.

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29/08/2022

LIC of India once again have given excellent results in 2021-22 in the life insurance industries.

29/08/2022

LIC Jeevan Akshay is the first choice of the public, the best guaranteed Saving Plan.....
For more details call us at 9810056162.

13/08/2022

21/07/2022

There are five main types of life insurance that you must know about before deciding to invest in a policy.

o Term Life Insurance: This policy offers a large sum of money assured to your loved one after your death at the cost of a nominal premium amount. However, this does not have any maturity value.

o Endowment Plans: This plan offers a lump sum amount of money at the end of the tenure of your plan. Moreover, it gives you a life cover until maturity.

o Money Back Plans: These plans provide you with an opportunity to enjoy payouts at regular intervals (usually 5 to 10 years). These payouts are a certain percentage of the sum assured under your plan.

o Unit Linked Investment Plans: This a hybrid product that can be understood as a mutual fund wrapped in a life insurance policy. While offering market-linked incentives, you get the comfort of a life cover.

o Annuity/Pension Plans: This is popular among those investors who want to reap its benefits post-retirement when there is no regular source of income while the expenditure often witnesses an increase. These plans are of two types – deferred and immediate. In a deferred annuity plan, you start receiving regular income after a few years. On the other hand, immediate annuity plans offer you a regular income immediately after the purchase of the plan.

09/07/2022

Life Insurance Terms You Should Know
Don’t know anything about life insurance? No worries! Start here and learn about the basic terminologies involved in life insurance.
20 Things to Know Before Buying a Life Insurance Policy
1. Policyholder:
The policyholder is the one who proposes the purchase of the life insurance policy and pays the premium (see #7 Premium). The policyholder is the owner of the policy and s/he may or may not be the life assured (see # 2 Life assured).
2. Life assured:
Life assured is the insured person. Life assured is the one for whom the life insurance plan is purchased to cover the risk of untimely death. Primarily, the breadwinner of the family is the life assured.
Life assured may or may not be the policyholder. For instance, a husband buys a life insurance plan for his wife. As the wife is a homemaker, husband pays the premium, thus the husband is the policyholder, and wife is the life assured.
3. Sum assured (coverage):
Life insurance is meant to provide a life cover to the insured.
The financial loss that may arise due to the passing away of the life assured is generally chosen as a life cover when buying a life insurance plan. In technical terms, ‘Sum Assured’ is the term used for an amount that the insurer agrees to pay on death of the insured person or occurrence of any other insured event.
You may come across the term ‘sum assured’ at the time of comparing policies online, when buying life insurance plan, and in the policy document. The sum assured is the amount that the life insurance company will pay to the nominee (see #4 Nominee) if the insured person dies during the policy tenure (see #5 Policy tenure).
The sum assured is chosen by the policyholder at the time of purchase. To know more and to choose the right coverage, read this.
4. Nominee:
The ‘nominee’ is the person (legal heir) nominated by the policyholder to whom the sum assured and other benefits will be paid by the life insurance company in case of an unfortunate eventuality. The nominee could be the wife, child, parents, etc. of the policyholder. The nominee needs to claim life insurance, if the life assured dies during the policy tenure (see #5 Policy tenure).
5. Policy tenure:
The ‘policy tenure’ is the duration for which the policy provides life insurance coverage. The policy tenure can be any period ranging from 1 year to 100 years or whole life, depending on the types of life insurance plan and its terms and conditions. Many a times, it is also referred to as policy term or policy duration.
The policy tenure decides for how long the company is providing the risk coverage. However, in the case of whole life insurance plans, the life coverage is till the time life assured is alive.
6. Maturity age:
Maturity age is the age of the life assured at which the policy ends or terminates. This is similar to policy tenure, but a different way to say how long the plan will be in force. Basically, the life insurance company declares up front the maximum age till which the life insurance coverage will be provided to the life insured. For instance, you are 30 years old, you opt for a term plan with a maturity age of 65 years. That means the policy will have a coverage till you are 65 years old, which also means, the maximum policy tenure for a 30-year-old is 35 years.
7. Premium:
The premium is the amount you pay to keep the life insurance plan active and enjoy continued coverage. If you are unable to pay the premium before the payment due date and even during the grace period ( #13 Grace period), the policy terminates.
There are various options on how you can pay the premium – regular payment, limited payment term, single payment (discussed below #8 Premium payment mode).
8. Premium payment term/mode/ frequency:
You can pay the life insurance premium as per your convenience.
Regular Premium Payment - You can pay premium regularly throughout the policy term either – monthly, quarterly, half-yearly or yearly. Limited Premium Payment – You can choose to pay the premiums for a limited amount of time. In this option, you do not pay till the end of the policy term, but for a certain pre-fixed number of years. For example, 10 years, 15 years, 20 years, and so on.
Single Premium Payment – You can also choose to pay the premium for the entire duration of the plan as a lumpsum in one single go.
9. Riders:
Riders are an additional paid-up feature to widen up the scope of the base life insurance policy. Riders are bought at the time of purchase or on policy anniversary. There are different types of riders that can be bought along with the base plan. However, number and type of riders will differ from insurer to insurer.
Plus, the terms and conditions may differ from one insurance to another. However, here’s the list of some well-known riders offered by life insurance companies.
• Accidental Death Benefit Rider
• Accidental Total and Permanent Disability Benefit Rider
• Critical illness Cover
• Hospital Cash
• Waiver of Premiums
For more in-depth guide read – life insurance riders and how to choose one.
10. Death Benefit:
You will come across ‘Death Benefit’ quite frequently whenever you are either planning to buy a life insurance plan or comparing different insurance plans online.
The ‘Death Benefit’ is what life insurance company pays to the nominee in case the life assured dies during the policy tenure. If you are thinking whether the sum assured and death benefit are one and the same, then do not be confused. Because the death benefit can be sum assured or even higher than that, which may include rider benefit (if any), and/or other benefits. Except in the case of term insurance – where there is no accrued bonus or guaranteed additions.
11. Survival/Maturity Benefit:
Maturity benefit is the amount that the life insurance company pays when the life assured outlives the policy tenure. Survival benefit is paid when the life assured completes the pre-defined number of years under the policy.
There is no survival or maturity benefit in term plans. However, in other life insurance policies you may find survival benefit or the maturity benefit paid under the plan.
12. Free-look Period:
It is applicable to all new life insurance policies purchased. Free-look period is a time frame during which one may choose to return the purchased policy.
If you are not comfortable with the terms and conditions, you can return the policy within the Free-look period. The insurance company after deducting the expenses incurred on medical examination, stamp duty charges and other charges will refund the remaining premium. IRDA specifies free-look period in life insurance is 15 or 30 days after receiving the policy document.
13. Grace Period:
If you couldn’t pay the renewal premium for your policy on time, life insurance company gives you an extension in the number of days after the premium payment due date. A ‘Grace Period’ can be period of 15 days in case of monthly premium payment mode, and 30 days in case of annual premium payment mode.
If the policyholder does not pay the premiums even before the end of grace period, the policy gets lapsed.
14. Surrender Value:
If the policyholder decides to discontinue the plan before the maturity age, the life insurance company pays an amount to the policyholder, this is called Surrender Value.
But you must clearly read the terms and conditions whether a plan offers any surrender value or not. And if there is a surrender value, how much it will be. Not all life insurance plans have surrender value.
15. Paid-up Value:
In case the policyholder discontinues to pay the premium after a specified period of time, Insurance companies will offer the policyholder an option to convert his policy into a reduced paid-up policy. Under this option the sum insured is reduced in proportion to the number of premiums paid. If other benefits related to the sum insured are payable, these benefits will now be related to the reduced sum insured, which is the paid-up value.
16. Revival Period:
If the policyholder does not pay the premium even during the grace period, the policy lapses.
However, if the policyholder still wants to continue, the insurance company provides an option of re-activating the lapsed policy. This must be done within a specific period of time after the grace period ends. This specified period is known as a revival period. To reinstate the lapsed policy, the life insurance company will put forward the request to the team of Underwriters (see #17 Underwriters) for approval.
17. Underwriters:
Underwriters evaluate the risk involved in insurance. The process of risk evaluation starts before the issuance of insurance policy, and ends with settlement of the claim (see #20 Claim Process).
Only with the approval of Underwriters, policy is issued to the policyholder. And only after clearance from the Underwriter, the company pays the claim benefit to the nominee.
18. Tax benefits:
All the premiums paid towards the life insurance plan are eligible for deductions under Section 80 (C) of Income Tax Act, 1961. The maximum amount that one can claim as deductible is Rs.1.5 lakh.
The benefits paid to the policyholder/nominee are tax-free under Section 10 (10D) of Income Tax Act, 1961.
19. Exclusions:
Before you buy any life insurance, read ‘Exclusions’ carefully. These are things that are not covered under a life insurance policy, and against which if claimed, insurance company wouldn’t pay any benefit.
For instance, Su***de, is an exclusion in any life insurance plan.
20. Claim Process:
In case, the life assured passes away during the policy tenure, the nominee needs to lodge a claim to receive the death benefit as mentioned in the policy.

15/06/2022

Life Insurance Claim Process
The main purpose of taking an insurance policy is that it should come in use in the times of crises. In this article, we will look at the different types of life insurance claims and how the settlement process works.

Selection of the right policy from a good life insurance company with a healthy claim settlement ratio is the main requirement for buying a life insurance. The main function of an insurance company is to ensure easy and timely settlement of a valid claim in return for the premium paid by the insurer/ policy holder.

Before intimating the insurance company, the nominee/claimant should check some basic facts:

If the insurance policy is active and all the premiums have been paid?
Does the particular situation for which the claim is being made is covered in the policy?
Exclusions of the policy
Death claim settlement process
Step One: Intimation to the insurance company about the Claim
The nominee should inform the insurance company as soon as possible to enable the insurance company to start with the claim process. The details required for intimation are policy number, name of the insured, date of death, cause of death, place of death, name of the nominee etc. The claim intimation form can be obtained from the nearest insurance company branch or even by downloading it from the insurance company website. Alternatively, many insurance companies also have online forms these days on their website for claim intimation.

Step Two: Documents required
The nominee will be asked to furnish the following documents:

Death certificate
Age of the life insured (if not already given)
Original Policy document
Any other document as per requirement of the particular insurer or case related
For early death claims i.e the claim that has arisen within three years of the policy being in force the company will do extra investigation to ensure it is a genuine claim. They might do the following:

Check with the hospital if the deceased was admitted to hospital.
In case of an air crash confirmation from the airline authorities check if the policy holder was a passenger on the plane.
In case of death from medical causes, the insurance company will ask the hospital to provide doctor’s certificate, treatment records etc If the policy holder dies due to murder, su***de, accident then police FIR report, panchanama, post mortem report etc shall be required.
Step Three: Submission of required Documents for Claim Processing
For quicker claim processing, it is essential that the nominee submits complete documentation as early as possible and any other documents that the company needs to pass the claim.

Step Four: Settlement of Claim
As per the regulation 8 of the IRDAI (Policy holder's Interest) Regulations, 2002, the insurer is obligated to settle a claim within 30 days of receipt of all necessary documents including extra documents sought by the insurer. If the claim requires further investigation, the insurer needs to complete its procedures within 6 months from receiving the written intimation of claim.

Maturity & Survival Claims
The payment made by the insurance company on completion of term of policy or maturity date is called maturity payment. The amount payable consists of sum assured plus any bonus/incentives.

The insurance company informs the policy holder in advance by sending bank discharge form for filling details in it. The form needs to be returned back to the insurance company with original policy document, ID proof, Cancelled Cheque and copy of pass book.

Rider Claims:
Different riders can be attached to the base life insurance policy for enhanced protection. The riders can be accidental rider, critical illness rider, waiver of premium rider etc. For different riders, different claim proceedings are required. Some riders may be valid with the death claim like accidental death rider or some riders need to processed standalone like waiver of premium rider in case of disability.

For Critical Illness Rider- necessary medical documents such as first diagnosis report, Doctor’s report, etc are required. For Accidental disability rider - copy of FIR, Certificate of disability by the treating doctor, doctor’s report etc are required.

Conclusion:

In many cases, life insurance claims have been delayed or denied due to lack of proper documentation or simply because the proper claim process was not followed. Hence, it is recommended that the claimant should be aware of the claim process in order to have a hassle-free claim settlement process during the emotionally draining time especially while filing a death claim. Coverfox has taken a great initiative in NASPRO (Nominee Assistance Program) which is specially aimed at assisting nominees to have a smooth claim settlement experience