Tuesday, 27 October 2015
Policy Seller: Do You Really Need Life Insurance?
Policy Seller: Do You Really Need Life Insurance?: Do You Really Need Life Insurance? Life coverage is one of those unthinkable subjects for typical, easygoing or well disposed discu...
Do You Really Need Life Insurance?
Do You Really Need Life Insurance?
Life coverage is one of those unthinkable subjects for typical, easygoing or well disposed discussion. At whatever point individuals, be that as it may, add to an existence debilitating ailment, have a nearby experience with another vehicle on the roadway, or generally wind up in a circumstance where they are prone to be evaluated or declined by an insurance agency, they all of a sudden add to a craving for a decent extra security approachhttp://policyseller.in/
To acknowledge a job well done, there are some insightfully restrained individuals who give their portfolios standard survey and verify they have satisfactory scope at all times.
I need such a great amount for all individuals to think like the taught ones. In my profession as a life coverage specialists I twisted in reverse to induce such individuals to stay up with the latest. I have seen the distinction between a sufficiently protected provider at death, and one who scarcely had enough extra security to cover him. The last circumstance is entirely excruciating to watch.
I, in this manner, think it is basic that everybody set aside an ideal opportunity to assess and comprehend what extra security truly can do. Make this inquiry, "do I require life coverage and why do I require it."
In the event that somebody, be it your wife, your kids or your business accomplice, rely on upon you in any capacity that can be seen as a money related reliance, then you require life coverage. On account of unexpected passing your family will require cash to pay your last costs, such as extraordinary bills, burial service costs, lawyer's charges, hospital expenses and bequest charges. The representative will require disaster protection to subsidize a "purchase offer" understanding, to pay off extraordinary obligation, or may be to stay with the above water while they discover a trade for a perished important worker.
I beg you to take a gander at the accompanying circumstances which will offer you some assistance with deciding regardless of whether you require disaster protection. So simply attempt to unwind and unbiasedly as you can assess the circumstance for yourself.
One Parent Only Working
The most pulverizing circumstance happens when one guardian works and alternate stays at home. Should the working guardian bite the dust during an era when there are lacking assets for the survivors to keep living in the way to which they have ended up usual, then they may need to offer the house. The solaces which they had delighted in for a considerable length of time would absolutely change. The insignificant necessity is adequate assets which would permit the survivors to modify their way of life.
The perfect circumstance is to have adequate assets which would permit the surviving guardian not to work by any means, amid the developmental years of the youngsters. They can live in the same house, they can proceed in the same school, and when the time comes to enter school, they go to the school of their decision.
A decent protection arrangement is an astounding instrument that you can use to deal with these things.
Both Parents Working
In todays world, in many families, both folks work and share the costs. In the event that one guardian ought to rashly pass on, would the wage earned by the surviving guardian be adequate for the family to live on? Most likely not. In reckoning of that probability an asset could be set up, through an Insurance arrangement, to supplant, absolutely or to some degree, the expired folks wage.
Single Parent
On account of a solitary parent, all the money related obligations regarding the family may lay on his or her shoulders. In the event that that folks kicked the bucket while the kids are still in school, by what method will the youngsters survive?
Organization Or Corporation
Give us a chance to take a gander at the circumstance where you possess your own particular business. You have one accomplice or a few accomplices. One accomplice kicks the bucket. Is it not reasonable that the surviving accomplices ought to possess the business and the expired accomplices family get full esteem for his or her stock? Satisfactory Insurance scope can deal with this outcome too.
It might be alluring by all gatherings worried that the recipient of the perished accomplice turn into a full and dynamic accomplice, if this is the circumstance then the assets can be utilized as a pad while the new accomplice or shareholder takes in the business and changes with his or her new part.
ey Employee
A few workers are hard to supplant. It may require some investment to get a substitution up to the creation level of your long time, very much prepared and exceptionally productive worker. On the off chance that your business depends an extraordinary arrangement on a specific key representative, would it not be savvy to guarantee that worker on the off chance that he or she ought to bite the dust abruptly? The organization would get the passing advantage for this situation, and the cash would be utilized to stay with the above water, while a substitution is discovered and prepared.
Policy Seller: Life Insurance: 6 Good Things To Know ?We know t...
Policy Seller: Life Insurance: 6 Good Things To Know ?
We know t...: Life Insurance: 6 Good Things To Know ? We know the significance of disaster protection as we need to ensure that our friends an...
We know t...: Life Insurance: 6 Good Things To Know ? We know the significance of disaster protection as we need to ensure that our friends an...
Life Insurance: 6 Good Things To Know ?
We know the significance of disaster protection as we need to ensure that our friends and family are dealt with when we kick the bucket. In any case, do some exploration so you'll make sure to get the most ideal scope at the right cost. Here are some useful tips:
1. Look for your extra security scope
2. Never purchase more scope than you require
3. Purchase within the near future
4. Understand the significance of checking on your scope
5. You will be paying so as to pay more month to month
6. Try not to depend singularly on the extra security offered by your manager
With regards to extra security, it pays to look around in light of the fact that premiums can shift broadly. What's more, on account of the Internet, it's presently less demanding than ever.Make beyond any doubt the site considers the elements in your medicinal history that can influence the premiums.
The way to acquiring the appropriate measure of extra security is to have enough to address your issues. It's imperative not to have too little scope as it is hard to buy on the off chance that you become ill.
The more beneficial you are, the better the disaster protection rates
Sound individuals show signs of improvement rates on disaster protection. You will be requested that pay a higher rate in the event that you smoke, take meds frequently, are overweight or have an awful driving record.
In the event that you've been putting off acquiring disaster protection on the grounds that you would prefer not to pay the premiums, you may be doing yourself an insult over the long haul. On the off chance that you are healthy, purchase it now.
You'll need to verify that a noteworthy life occasion, for example, the conception of a youngster, marriage, separation or maybe that the kids are developed won't abandon you underinsured or overinsured.
You will be paying more for your extra security in the event that you pay your premium in regularly scheduled payments.
Try not to depend singularly on the life coverage offered by your manager
Numerous businesses offer their representatives some kind of gathering life coverage. Be that as it may, this measure of scope is generally insufficient and bunch extra security arrangements are not compact, implying that on the off chance that you leave your occupation, you can't take your life coverage scope with you.
Wednesday, 14 October 2015
Life Insurance is the fastest growing sector in India since 2000 as Government allowed Private players and FDI up to 26% and recently Cabinet approved a proposal to increase it to 49%. Life Insurance in India was nationalised by incorporating Life Insurance Corporation (LIC) in 1956. All private life insurance companies at that time were taken over by LIC.
In 1993, the Government of India appointed RN Malhotra Committee to lay down a road map for privatisation of the life insurance sector.
While the committee submitted its report in 1994, it took another six years before the enabling legislation was passed in the year 2000, legislation amending the Insurance Act of 1938 and legislating the Insurance Regulatory and Development Authority Act of 2000. The same year the newly appointed insurance regulator - Insurance Regulatory and Development Authority IRDA started issuing licenses to private life insurers.
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- 1 Types of Life Insurance in India
- 1.1 Term Insurance Policies
- 1.2 Money-back Policies
- 1.3 Unit-linked Investment Policies (ULIP)
- 1.4 Pension Policies
- 2 List of Life Insurers (as of June 2014)
- 3 Foreign Direct Investment (FDI) Policy in Insurance Sector
- 4 Indian life insurance industry overview
- 5 External links
Types of Life Insurance in India
Life insurance products come in a variety of offerings catering to the investment needs and objectives of different kinds of investors. Following is the list of broad categories of life insurance products:
Term Insurance Policies
The basic premise of a term insurance policy is to secure the immediate needs of nominees or beneficiaries in the event of sudden or unfortunate demise of the policy holder. The policy holder does not get any monetary benefit at the end of the policy term except for the tax benefits he or she can choose to avail of throughout the tenure of the policy. In the event of death of the policy holder, the sum assured is paid to his or her beneficiaries. Term insurance policies are also relatively cheap to acquire compared to other insurance products.
Money-back Policies
Money back policies are basically an extension of endowment plans wherein the policy holder receives a fixed amount at specific intervals throughout the duration of the policy. In the event of the unfortunate death of the policy holder, the full sum assured is paid to the beneficiaries. The terms again might slightly vary from one insurance company to another.
Unit-linked Investment Policies (ULIP)
Main article: Unit-linked insurance plan
Unit linked insurance policies again belong to the insurance-cum-investment category where one gets to enjoy the benefits of both insurance and investment. While a part of the monthly premium pay-out goes towards the insurance cover, the remaining money is invested in various types of funds that invest in debt and equity instruments. ULIP plans are more or less similar in comparison to mutual funds except for the difference that ULIPs offer the additional benefit of insurance.
Pension Policies
Pension policies let individuals determine a fixed stream of income post retirement. This basically is a retirement planning investment scheme where the sum assured or the monthly pay-out after retirement entirely depends on the capital invested, the investment timeframe, and the age at which one wishes to retire. There are again several types of pension plans that cater to different investment needs. Now it is recognized as insurance product and being regulated by IRDA.
List of Life Insurers (as of June 2014)
Apart from Life Insurance Corporation, the public sector life insurer, there are 23 other private sector life insurers, most of them joint ventures between Indian groups and global insurance giants.
- Life Insurer in Public Sector
- Life Insurance Corporation of India
- Postal Life Insurance
- Employees' State Insurance
- Life Insurers in Private Sector
- SBI Life Insurance
- PNB Metlife India Life Insurance
- ICICI Prudential Life Insurance
- Bajaj Allianz Life
- Max Life Insurance
- Sahara Life Insurance
- Tata AIG Life
- HDFC Life
- Birla Sun Life Insurance
- Kotak Life Insurance
- IndiaFirst Life Insurance
- Aviva Life Insurance
- Reliance Life Insurance Company Limited - Formerly known as AMP Sanmar LIC
- Exide Life Insurance - Formerly known as ING Vysya Life Insurance
- Shriram Life Insurance
- Bharti AXA Life Insurance Co Ltd.
- Future Generali Life Insurance Co Ltd
- IDBI Federal Life Insurance
- AEGON Religare Life Insurance
- DHFL Pramerica Life Insurance - Formerly known as DLF Pramerica Life Insurance
- CANARA HSBC Oriental Bank of Commerce
- Star Union Dia-ichi Life Insurance Co. Ltd
- Edelweiss Tokio Life Insurance Company Ltd.
Foreign Direct Investment (FDI) Policy in Insurance Sector
As per the current (March 2006) FDI norms, foreign participation in an Indian insurance company is restricted to 26.0% of its equity / ordinary share capital. The Insurance Regulator has stipulated that foreign investment in Indian Insurance companies be limited to 26% of total equity issued (FDI limit) with the balance being funded by Indian promoter entities. The limit to foreign investment includes both direct and indirect investment and has been a cause of significant lobbying by foreign insurance companies for a change in regulations to increase the FDI limit to 49% of equity issued. Recently,In the Fiscal Budget of Modi Government of 2014-15 it has introduced 49.0% FDI which will bring in more investments in Insurance Sector.
The Indian government has supported an increase in the FDI limit, which requires a change in the Insurance Act. The Union Budget for fiscal 2005 had recommended that the ceiling on foreign holding be increased to 49.0%.
A change in the Insurance Act requires a passage of the bill in both houses of Parliament. The Indian government has tabled the bill in the Upper House of Parliament in August 2010.
Initial Public Offer (IPO) rules for Indian Life Insurance Companies[edit]
A key piece of legislation impacting on the Life Insurance industries capital raising abilities is the lock-in period of 10 years for investment to be limited to promoter group equity investments. Under the Insurance Guidelines, Indian Life Insurance companies can opt for a public issue of equity through an Initial Public Offer (IPO) after 10 years of operations.
In October 2010, the securities market regulator, Securities and Exchange Board of India (SEBI), issued disclosure norms for Indian Life Insurance Companies seeking to make an initial public offer for sale of equity shares to the public.
Indian life insurance industry overview
All life insurance companies in India have to comply with the strict regulations laid out by Insurance Regulatory and Development Authority of India (IRDAI).
Life Insurance Corporation of India (LIC), the state owned behemoth, remains by far the largest player in the market. The private companies have come out with products called ULIPs (Unit Linked Investment Plans) which offer both life cover as well as scope for savings or investment options as the customer desires. These type of plans are subject to a minimum lock-in period of three years to prevent misuse of the significant tax benefits offered to such plans under the Income Tax Act. Comparison of such products with mutual funds would be erroneous.
Thursday, 8 October 2015
Policy Seller: WHYHEALTH INSURANCELife is a surprise package of...
Policy Seller:
WHYHEALTH INSURANCELife is a surprise package of...: WHYHEALTH INSURANCE Life is a surprise package of joys, happiness, challenges and setbacks. Sudden illness, accidental injuries an...
WHYHEALTH INSURANCELife is a surprise package of...: WHYHEALTH INSURANCE Life is a surprise package of joys, happiness, challenges and setbacks. Sudden illness, accidental injuries an...
Life is a surprise package of joys, happiness, challenges
and setbacks. Sudden illness, accidental injuries and medical emergencies can
throw us off guard anytime. While they drain us emotionally, owing to the
soaring prices of medical services, the hospitalization and medicinal expenses
can burn a big hole in your pocket. A good health insurance policy is mandatory
to combat these tough times as it covers you and your loved ones completely
against sudden financial burden caused by medical emergencies. Having a good
health insurance plan ensures an immense peace of mind and assurance that you
can focus on the healing and recuperation of your loved ones, instead of
financial worries.
Individual health insurance in India can be availed by any
individual resident between the ages of 18 to 65 to undergo treatment in India.
Policyseller is a comprehensive health coverage that takes care of your
expenses related to hospitalization and domiciliary so that all your financial
burdens are covered during a sudden medical emergency. Buying a health policy
at Policyselleris extremely convenient now as you can acquire a hassle free
online health insurance plan from Policyseller website.
Here are the special elements of our medical insurance plan:
Double coverage for accidents and critical illness on
selected health plans (on selected health Plans)
Cover for Domiciliary hospitalization
Lifetime coverage
Cashless hospitalization at 4300+ hospitals across India
Cover for 140+ Day-care procedures
Pre and post hospitalization expenses
20 main critical illnesses covered (on selected health
plans)
Unlimited room rent (on selected health plans)
Lifetime renewal
Tax benefit under section 80 (D)
24x7 claim assistance and easy claim settlement
Why Choose Health Insurance by Policy seller?
Medical insurance from Policy seller provides you the
following benefits:
Cashless treatment - We provide you a network of hospitals,
where you can avail cashless treatment facilities.
Pre and post hospitalization - We pay for your pre and post
hospitalization charges, up to 30 days prior to hospitalization & up to 60
days after discharge from hospital.
Ambulance charges - In case of any medical emergency,
ambulance charges as listed in the policy shall be payable.
Cumulative Bonus - If no claims are made on your health
cover in a particular year, you will be entitled for special benefits through
an increment in the sum insured when you renew the policy the following year.
Free medical check up - A history of no claims is rewarded
with a free medical check up.
Tax benefits - When you pay the premium for your health
insurance policy, you are liable to get a tax rebate under section 80D of the
Income Tax Act for a maximum value of Rs.15,000 for normal and Rs. 20,000 for
senior citizens.
Co-payment - If you wish to reduce the premium amount, you
can opt for voluntary deductibles mentioned in the policy. This means that some
amount will be paid by the insured for any treatment undertaken, while the rest
will be paid by the insurer.
Critical illness - We will pay the insured person the sum
insured as a lump sum if the insured is diagnosed as suffering from a critical
illness listed in the policy.
Thursday, 1 October 2015
Policy Seller: Plan :New Children’s Money Back (832)Product Sum...
Policy Seller: Plan :New Children’s Money Back (832)
Product Sum...: Plan :New Children ’s Money Back (832) Product Summary : LIC’s New Children ’s Money Back Plan is a non-linked, with-profit...
Product Sum...: Plan :New Children ’s Money Back (832) Product Summary : LIC’s New Children ’s Money Back Plan is a non-linked, with-profit...
Plan :New Children’s Money Back (832)
Product Summary :
LIC’s New Children’s Money Back Plan is a non-linked, with-profits, regular premium payment money back plan
LIC’s New Children’s Money Back Plan is a non-linked, with-profits, regular premium payment money back plan
Premium Payment Mode:
Yearly, Halfly, Quarterly, Monthly(ECS)
Yearly, Halfly, Quarterly, Monthly(ECS)
Term :
25 Age at Maturity Time
25 Age at Maturity Time
Minimum Entry Age :
0 Year Last Birthday
0 Year Last Birthday
Maximum Entry Age :
12 Year Last Birthday
12 Year Last Birthday
Minimum Sum Assured :
1,00,000
1,00,000
Maximum Sum Assured :
NO LIMIT (Depending upon Income)
NO LIMIT (Depending upon Income)
Policy Benefits :
On Death :
On death Before the Date of Commencement of Risk:
An amount equal to the total amount of premium's paid excluding taxes, extra premium and rider premium, if any shall be payable.
On death Before the Date of Commencement of Risk:
An amount equal to the total amount of premium's paid excluding taxes, extra premium and rider premium, if any shall be payable.
On death After the Date of Commencement of Risk:
Death Benefit, defined as sum of “Sum Assured on Death” and vested Simple Reversionary Bonuses and Final Additional Bonus, if any, shall be payable. Where “Sum Assured on Death” is defined as higher of 10 times of annualized premium or Absolute amount assured to be paid on death i.e. Basic Sum assured. This death benefit shall not be less than 105% of the total premiums paid as on date of death.
Death Benefit, defined as sum of “Sum Assured on Death” and vested Simple Reversionary Bonuses and Final Additional Bonus, if any, shall be payable. Where “Sum Assured on Death” is defined as higher of 10 times of annualized premium or Absolute amount assured to be paid on death i.e. Basic Sum assured. This death benefit shall not be less than 105% of the total premiums paid as on date of death.
On Survival :
If Policy in full force :
Completion Age 18YRS - 20% OF MSA
Completion Age 20YRS - 20% OF MSA
Completion Age 22YRS - 20% OF MSA
If Policy in full force :
Completion Age 18YRS - 20% OF MSA
Completion Age 20YRS - 20% OF MSA
Completion Age 22YRS - 20% OF MSA
On Maturity at Age 25YRS - 40% of MSA + Vested Bonus + FAB
Surrendered Value :
The policy can be surrendered at any time during the policy term provided premiums have been paid for full three years.
The policy can be surrendered at any time during the policy term provided premiums have been paid for full three years.
Loan :
Loan facility is available under this plan after the payment of premiums for atleast three full years.
Loan facility is available under this plan after the payment of premiums for atleast three full years.
Income Tax Benefit :
• Premium paid under this plan is eligible for TAX rebate under section 80c.
• Maturity under this plan is free under sec 10(10D).
• Premium paid under this plan is eligible for TAX rebate under section 80c.
• Maturity under this plan is free under sec 10(10D).
Plan :New Jeevan Anand Plan(815)
Product Summary :
LIC New Jeevan Anand(815) Plan is a participating non-linked plan which offers an attractive combination of protection and savings. This combination provides financial protection against death throughout the lifetime of the policyholder with the provision of payment of lumpsum at the end of the selected policy term in case of his or her survival.
LIC New Jeevan Anand(815) Plan is a participating non-linked plan which offers an attractive combination of protection and savings. This combination provides financial protection against death throughout the lifetime of the policyholder with the provision of payment of lumpsum at the end of the selected policy term in case of his or her survival.
Premium Payment Mode:
Yearly, Halfly, Quarterly, Monthly(ECS)
Yearly, Halfly, Quarterly, Monthly(ECS)
Term :
15 to 35 years
15 to 35 years
Minimum Entry Age :
18 Year Completed
18 Year Completed
Maximum Entry Age :
50 Year (Nearest Birthday)
50 Year (Nearest Birthday)
Maximum Maturity Age :
75 Year
75 Year
Minimum Sum Assured :
1,00,000
1,00,000
Maximum Sum Assured :
NO LIMIT (Depending upon Income)
NO LIMIT (Depending upon Income)
Maximum Accidental Death and Disability Benefit Rider up to age 70.
Policy Benefits :
On Death :
Provided all due premiums have been paid, the following death benefit shall be paid:
• On Death during the policy term: Death benefit, defined as sum of “Sum Assured on Death”and vested Simple Reversionary Bonuses and Final Additional bonus, if any, shall be payable.Where, “Sum Assured on Death” is defined as higher of 125% of Basic Sum Assured or 10 times of annualised premium.
This death benefit shall not be less than 105% of all the premiums paid as on date of death.The premiums mentioned above exclude service tax, extra premium and rider premiums, if any.
• On death of policyholder at any time after policy term: Basic Sum Assured
Provided all due premiums have been paid, the following death benefit shall be paid:
• On Death during the policy term: Death benefit, defined as sum of “Sum Assured on Death”and vested Simple Reversionary Bonuses and Final Additional bonus, if any, shall be payable.Where, “Sum Assured on Death” is defined as higher of 125% of Basic Sum Assured or 10 times of annualised premium.
This death benefit shall not be less than 105% of all the premiums paid as on date of death.The premiums mentioned above exclude service tax, extra premium and rider premiums, if any.
• On death of policyholder at any time after policy term: Basic Sum Assured
On Survival :
Basic Sum Assured, along with vested Simple Reversionary Bonuses and Final Additional Bonus, if any, shall be payable in lump sum on survival to the end of the policy term provided all due premiums have been paid.
Basic Sum Assured, along with vested Simple Reversionary Bonuses and Final Additional Bonus, if any, shall be payable in lump sum on survival to the end of the policy term provided all due premiums have been paid.
Surrendered Value :
The policy can be surrendered for cash provided atleast three full years premiums have been paid.The Guaranteed Surrender value during policy term shall be a percentage of total premiums paid (net of service tax) excluding extra premiums and premiums for riders, if opted for. This percentage will depend on the policy term and policy year in which the policy is surrendered
The policy can be surrendered for cash provided atleast three full years premiums have been paid.The Guaranteed Surrender value during policy term shall be a percentage of total premiums paid (net of service tax) excluding extra premiums and premiums for riders, if opted for. This percentage will depend on the policy term and policy year in which the policy is surrendered
Loan :
Loan can be availed under the policy provided the policy has acquired a surrender value and subject to the terms and conditions as the company may specify from time to time.
Loan can be availed under the policy provided the policy has acquired a surrender value and subject to the terms and conditions as the company may specify from time to time.
Income Tax Benefit :
• Premium paid under this plan is eligible for TAX rebate under section 80c.
• Maturity under this plan is free under sec 10(10D).
• Premium paid under this plan is eligible for TAX rebate under section 80c.
• Maturity under this plan is free under sec 10(10D).
Monday, 28 September 2015
PM launches Pradhan Mantri MUDRA Yojana
PM launches Pradhan Mantri MUDRA Yojana
PM: Combination of integrity with MUDRA – capital - will be the key to success for small entrepreneurs. पूंजी सफलता की कुंजी
The Prime Minister said that in our country, one often experiences that things revolve around mere perceptions, while the details often paint a different picture. Giving the example of the perception that large industries create more employment, he said that a look at the details reveals the reality that only 1 crore 25 lakh people find employment in large industries, whereas small enterprises employ 12 crore people in the country.
The Prime Minister said that while there are a number of facilities provided for the large industries in India, there is a need to focus on these 5 crore 75 lakh self-employed people who use funds of Rs 11 lakh crore, with an average per unit debt of merely Rs 17,000 to employ 12 crore Indians. He said that these facts, when brought to light, led to the vision for MUDRA Bank.
The Prime Minister spoke about his time as the Chief Minister of Gujarat, when he focused on the environment-friendly cottage industry of kite making, which employs lakhs of poor Muslims. He said that he brought a research institute from Chennai on board which discovered that small inputs of skill development were needed in the industry. He said that he felt proud that these small efforts helped the kite-making industry grow from Rs. 35 crore to 500 crores in Gujarat.
The Prime Minister also gave examples of other small businesses that, with a little help, have the potential to grow manifold. He said that the biggest asset of the poor is his / her integrity (imaan). By combining their integrity with capital (MUDRA), it would become the key to their success - पूंजी सफलता की कुंजी. Speaking about women’s self help groups in particular, the Prime Minister said that the kind of honesty and integrity showed by these loan takers is seldom seen in any other sector.
The Prime Minister appreciated the efforts made by the banking sector of India in making Jan Dhan Yojana a success. He said that he envisioned that within a year, banks would queue up to give loans to MUDRA applicants. The Prime Minister also congratulated SIDBI on the silver jubilee of its inception, and appreciated the work done by it in supporting India’s small scale industry in these 25 years.
The Prime Minister said that MUDRA scheme is aimed at “funding the unfunded”. He said that the small entrepreneurs of India are used to exploitation at the hands of money lenders so far, but MUDRA will instil a new confidence in them that the country is ready to support them in their efforts that are contributing so heavily to the task of nation building.
The Prime Minister also spoke about the possibilities of value addition in agriculture. He said that, we must aim at creating a whole network of farmers engaged in value addition at the community level. Brand building, advertising, marketing and financial support, when given to such small entrepreneurs will strengthen the foundation of the Indian economy, he said.
The Prime Minister said that this will not entail any big changes in the existing structures, just a little empathy, a little understanding and a little initiative. He urged the banks to study successful models of microfinance, tailored to the local requirements and cultural contexts, which will be enable us to help the poorest of the poor in a big way.
The Prime Minister said that mere launching of new schemes in not progress. Real success lies in real change on the ground, as was seen in the Jan Dhan Yojana and PAHAL, which had delivered concrete results within limited timeframes, he added. He said that the established financial systems will soon move to the MUDRA-model of functioning, i.e. to support entrepreneurs that give employment to a large number of people using least amount of funds.
The Union Minister of Finance, Shri Arun Jaitley, the Union Minister of State for Finance, Shri Jayant Sinha, and the Governor of Reserve Bank of India, Shri Raghuram Rajan, were present on the occasion.
Bringing the Internet to more Indians – starting with 10 million rail passengers a day
Posted: Monday, September 28, 2015

इस पोस्ट को हिंदी में पढ़ने के लिए नीचे स्क्रॉल करें
When I was a student, I relished the day-long railway journey I would make from Chennai Central station (then known as Madras Central) to IIT Kharagpur. I vividly remember the frenetic energy at the various stations along the way and marveled at the incredible scale and scope of Indian Railways.
I’m very proud to announce that it’s the train stations of India that are going to help get millions of people online. In the past year, 100 million people in India started using the Internet for the first time. This means there are now more Internet users in India than in every country in the world aside from China. But what's really astounding is the fact that there are still nearly one billion people in India who aren’t online.
We’d like to help get these next billion Indians online—so they can access the entire web, and all of its information and opportunity. And not just with any old connection—with fast broadband so they can experience the best of the web. That’s why, today, on the occasion of Indian Prime Minister Narendra Modi’s visit to our U.S. headquarters, and in line with his Digital India initiative, we announced a new project to provide high-speed public Wi-Fi in 400 train stations across India.
Working with Indian Railways, which operates one of the world's largest railway networks, and RailTel, which provides Internet services as RailWire via its extensive fiber network along many of these railway lines, our Access & Energy team plans to bring the first stations online in the coming months. The network will expand quickly to cover 100 of the busiest stations in India before the end of 2016, with the remaining stations following in quick succession.
Even with just the first 100 stations online, this project will make Wi-Fi available for the more than 10 million people who pass through every day. This will rank it as the largest public Wi-Fi project in India, and among the largest in the world, by number of potential users. It will also be fast—many times faster than what most people in India have access to today, allowing travelers to stream a high definition video while they’re waiting, research their destination, or download some videos, a book or a new game for the journey ahead. Best of all, the service will be free to start, with the long-term goal of making it self-sustainable to allow for expansion to more stations and other places, with RailTel and more partners, in the future.
We think this is an important part of making the Internet both accessible and useful for the more than 300 million Indians already online, and the nearly one billion more who are not.
But it’s not the only piece. To help more Indians get access to affordable, high-quality smartphones, which is the primary way most people there access the Internet, we launched Android One last year. To help address the challenges of limited bandwidth, we recently launched a feature that makes mobile webpages load faster and with less data, and we’ve made YouTube available offline with offline Maps coming soon.
To help make web content more useful for Indians, many of whom don’t speak English, we launched the Indian Language Internet Alliance last year to foster more local language content, and have built greater local language support into our products—including Hindi Voice Search, an improved Hindi keyboard and support for seven Indian languages with the latest versions of Android. And finally, to help all Indians reap the benefits of connectivity, we’ve been ramping up efforts to help women, who make up just a third of Internet users in India today, get the most from the web.
Just like I did years ago, thousands of young Indians walk through Chennai Central every day, eager to learn, to explore and to seek opportunity. It’s my hope that this Wi-Fi project will make all these things a little easier.
Posted by Sundar Pichai, CEO, Google
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ज्यादा से ज्यादा भारतियों को इंटरनेट से जोड़ने की एक पहल - 1 करोड़ रेल यात्रियों प्रतिदिन से शुरुआत
जब मैं एक छात्र था, मैं चेन्नई सेंट्रल स्टेशन (तब मद्रास सेंट्रल के रूप में जाना जाता था) से आईआईटी खड़गपुर की दिन की रेल यात्रापसंद करता था । मुझे विभिन्न स्टेशनों पर उन्मत्त ऊर्जा की याद आज भी ताजा है और मैं भारतीय रेल के अविश्वसनीय स्तर और विस्तार पर अचम्भा करता था ।
मुझे यह घोषणा करते हुए बहुत गर्व हो रहा है कि ये भारत के रेलवे स्टेशन हैं जो करोड़ों लोगों को ऑनलाइन लाने में मदद करेंगे । पिछले साल, भारत में 10 करोड़ लोगों ने पहली बार इंटरनेट उपयोग शुरू किया है । इसका मतलब यह है कि भारत में अब चीन को छोड़ कर हर देश से अधिक इंटरनेट उपयोगकर्ता हैं । पर चौंकाने वाली बात ये है की भारत में अभी भी 100 करोड़ से ज़्यादा लोग ऑनलाइन नहीं हैं ।
हम इन 100 करोड़ भारतवासियों को ऑनलाइन लाने में मदद करना चाहते हैं - ताकि उन्हें पूरे वेब तक पहुँच मिल सके, और वहां मौजूद जानकारी और अवसर भी । और किसी पुराने कनेक्शन से नहीं - तेज़ ब्रॉडबैंड से ताकि वे वेब का सबसे अच्छा अनुभव कर सकें । इसलिए आज, भारत के प्रधानमंत्री श्री नरेंद्र मोदी जी के हमारे U.S. मुख्यालय में उपस्थित होने के अवसर पर, और उनकी डिजिटल इंडिया पहल के अनुरूप, हमने भारत भर में 400 रेलवे स्टेशनों में सार्वजनिक उच्च गति वाई-फाई उपलब्ध कराने के लिए एक नई परियोजना की घोषणा की है ।
हमारी पहुंच और ऊर्जा टीम की, भारतीय रेलवेज, जो कि दुनिया के सबसे बड़े रेलवे नेटवर्कों में से एक चला रही है, और रेलटेल, जो व्यापक फाइबर नेटवर्क के माध्यम से रेलवायर जैसी इंटरनेट सेवाएं प्रदान करता है, के साथ काम करते हुए आने वाले महीनों में पहले स्टेशनों को ऑनलाइन लाने की योजना है। यह नेटवर्क 2016 के अंत से पहले भारत में सबसे व्यस्त स्टेशनों में से 100 को कवर करने के लिए तेजी से विस्तार करेगा, और शेष स्टेशन उसके बाद जल्द ही कवर होंगे ।
जब सिर्फ पहले 100 स्टेशन ऑनलाइन होंगे, तब भी इस परियोजना के माध्यम से हर दिन 1 करोड़ से अधिक लोगों के लिए वाई-फाई उपलब्ध होगा। यह भारत में सबसे बड़ी सार्वजनिक वाई-फाई परियोजना होगी, और संभावित उपयोगकर्ताओं की संख्या के हिसाब से दुनिया की सबसे बड़ी परियोजनाओं में गिनी जाएगी । यह वाई-फाई तेज़ भी होगा - भारत में अधिकतम लोग आज जो उपयोग करते हैं उसकी तुलना में कई गुना तेज़ । इस से यात्री जितनी देर इंतज़ार कर रहे हैं उतनी देर में एक उच्च परिभाषा वीडियो स्ट्रीम कर पाएंगे, अपने गंतव्य के बारे में कुछ अनुसंधान कर पाएंगे या कुछ वीडियो, एक पुस्तक या एक नया खेल डाउनलोड कर पाएंगे । सबसे अच्छी बात, यह सेवा शुरू में मुफ्त होगी, और भविष्य में इसे आत्मनिर्भर बनाने का दीर्घकालीन लक्ष्य है ताकि रेलटेल और अधिक भागीदारों के साथ अधिक स्टेशनों और अन्य स्थानों में इसका विस्तार किया जा सके ।
हमें लगता है कि यह 30 करोड़ से अधिक भारतीय जो पहले से ही ऑनलाइन हैं और लगभग एक अरब से अधिक है जो नहीं हैं, उनके लिए इंटरनेट को सुलभ और उपयोगी बनाने का एक महत्वपूर्ण हिस्सा है ।
पर यह सिर्फ एक हिस्सा है । अधिक भारतीयों को सस्ती, उच्च गुणवत्ता वाले स्मार्टफोन्स प्राप्त करने के लिए, जो अधिकतम लोगों के लिए इंटरनेट का उपयोग प्राथमिक तरीका है, हमने पिछले साल एंड्राइड वन फ़ोन लांच किया था । सीमित बैंडविड्थ की चुनौतियों से निपटने में मदद करने के लिए, हम हाल ही में मोबाइल वेब पृष्ठों को तेजी से और कम डेटा के साथ लोड करने की सुविधा लाये हैं, यूट्यूब ऑफ़लाइन उपलब्ध बनाया है और ऑफलाइन मैप्स जल्द ही आने वाला है ।
भारतीयों, जिनमे से कई अंग्रेजी नहीं बोलते, के लिए वेब सामग्री और अधिक उपयोगी बनाने में मदद करने के लिए और अधिक स्थानीय भाषा की सामग्री को बढ़ावा देने के लिए हमने पिछले साल भारतीय भाषा इंटरनेट एलायंस की शुरूआत की है, और हमारे उत्पादों में अधिक से अधिक स्थानीय भाषा समर्थन का निर्माण किया है - हिंदी वॉयस खोज, उन्नत हिंदी कीबोर्ड और एंड्राइड के नवीनतम संस्करण में सात भारतीय भाषाओं के लिए समर्थन में सुधार । और अंत में, सभी भारतीयों को कनेक्टिविटी का लाभ लेने में मदद करने के लिए, हमने महिलाओं, जो कि आज भारत में इंटरनेट उपयोगकर्ताओं का सिर्फ एक तिहाई भाग हैं, की मदद करने में अपने प्रयास और तेज़ किये हैं ताकि वे वेब से अधिकतम लाभ उठा सकें ।
हज़ारों युवा भारतीय हर दिन चेन्नई सेंट्रल से निकलते हैं, जैसे मैं कई साल पहले निकलता था, सीखने और जानने के लिए उत्सुक, और अवसर की तलाश में । मेरी आशा है कि यह वाई-फाई परियोजना इन सब बातों को थोड़ा आसान कर देगी ।
सुन्दर पिचई, सीईओ, गूगल के द्वारा प्रकाशित
When I was a student, I relished the day-long railway journey I would make from Chennai Central station (then known as Madras Central) to IIT Kharagpur. I vividly remember the frenetic energy at the various stations along the way and marveled at the incredible scale and scope of Indian Railways.
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| Prime Minister Narendra Modi at the Googleplex today |
I’m very proud to announce that it’s the train stations of India that are going to help get millions of people online. In the past year, 100 million people in India started using the Internet for the first time. This means there are now more Internet users in India than in every country in the world aside from China. But what's really astounding is the fact that there are still nearly one billion people in India who aren’t online.
We’d like to help get these next billion Indians online—so they can access the entire web, and all of its information and opportunity. And not just with any old connection—with fast broadband so they can experience the best of the web. That’s why, today, on the occasion of Indian Prime Minister Narendra Modi’s visit to our U.S. headquarters, and in line with his Digital India initiative, we announced a new project to provide high-speed public Wi-Fi in 400 train stations across India.
Working with Indian Railways, which operates one of the world's largest railway networks, and RailTel, which provides Internet services as RailWire via its extensive fiber network along many of these railway lines, our Access & Energy team plans to bring the first stations online in the coming months. The network will expand quickly to cover 100 of the busiest stations in India before the end of 2016, with the remaining stations following in quick succession.
Even with just the first 100 stations online, this project will make Wi-Fi available for the more than 10 million people who pass through every day. This will rank it as the largest public Wi-Fi project in India, and among the largest in the world, by number of potential users. It will also be fast—many times faster than what most people in India have access to today, allowing travelers to stream a high definition video while they’re waiting, research their destination, or download some videos, a book or a new game for the journey ahead. Best of all, the service will be free to start, with the long-term goal of making it self-sustainable to allow for expansion to more stations and other places, with RailTel and more partners, in the future.
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| This map shows the first 100 stations that will have high-speed Wi-Fi by the end of 2016 |
But it’s not the only piece. To help more Indians get access to affordable, high-quality smartphones, which is the primary way most people there access the Internet, we launched Android One last year. To help address the challenges of limited bandwidth, we recently launched a feature that makes mobile webpages load faster and with less data, and we’ve made YouTube available offline with offline Maps coming soon.
To help make web content more useful for Indians, many of whom don’t speak English, we launched the Indian Language Internet Alliance last year to foster more local language content, and have built greater local language support into our products—including Hindi Voice Search, an improved Hindi keyboard and support for seven Indian languages with the latest versions of Android. And finally, to help all Indians reap the benefits of connectivity, we’ve been ramping up efforts to help women, who make up just a third of Internet users in India today, get the most from the web.
Just like I did years ago, thousands of young Indians walk through Chennai Central every day, eager to learn, to explore and to seek opportunity. It’s my hope that this Wi-Fi project will make all these things a little easier.
Posted by Sundar Pichai, CEO, Google
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ज्यादा से ज्यादा भारतियों को इंटरनेट से जोड़ने की एक पहल - 1 करोड़ रेल यात्रियों प्रतिदिन से शुरुआत
जब मैं एक छात्र था, मैं चेन्नई सेंट्रल स्टेशन (तब मद्रास सेंट्रल के रूप में जाना जाता था) से आईआईटी खड़गपुर की दिन की रेल यात्रापसंद करता था । मुझे विभिन्न स्टेशनों पर उन्मत्त ऊर्जा की याद आज भी ताजा है और मैं भारतीय रेल के अविश्वसनीय स्तर और विस्तार पर अचम्भा करता था ।
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| आज गूगलप्लेक्स में प्रधानमंत्री नरेंद्र मोदी |
मुझे यह घोषणा करते हुए बहुत गर्व हो रहा है कि ये भारत के रेलवे स्टेशन हैं जो करोड़ों लोगों को ऑनलाइन लाने में मदद करेंगे । पिछले साल, भारत में 10 करोड़ लोगों ने पहली बार इंटरनेट उपयोग शुरू किया है । इसका मतलब यह है कि भारत में अब चीन को छोड़ कर हर देश से अधिक इंटरनेट उपयोगकर्ता हैं । पर चौंकाने वाली बात ये है की भारत में अभी भी 100 करोड़ से ज़्यादा लोग ऑनलाइन नहीं हैं ।
हम इन 100 करोड़ भारतवासियों को ऑनलाइन लाने में मदद करना चाहते हैं - ताकि उन्हें पूरे वेब तक पहुँच मिल सके, और वहां मौजूद जानकारी और अवसर भी । और किसी पुराने कनेक्शन से नहीं - तेज़ ब्रॉडबैंड से ताकि वे वेब का सबसे अच्छा अनुभव कर सकें । इसलिए आज, भारत के प्रधानमंत्री श्री नरेंद्र मोदी जी के हमारे U.S. मुख्यालय में उपस्थित होने के अवसर पर, और उनकी डिजिटल इंडिया पहल के अनुरूप, हमने भारत भर में 400 रेलवे स्टेशनों में सार्वजनिक उच्च गति वाई-फाई उपलब्ध कराने के लिए एक नई परियोजना की घोषणा की है ।
हमारी पहुंच और ऊर्जा टीम की, भारतीय रेलवेज, जो कि दुनिया के सबसे बड़े रेलवे नेटवर्कों में से एक चला रही है, और रेलटेल, जो व्यापक फाइबर नेटवर्क के माध्यम से रेलवायर जैसी इंटरनेट सेवाएं प्रदान करता है, के साथ काम करते हुए आने वाले महीनों में पहले स्टेशनों को ऑनलाइन लाने की योजना है। यह नेटवर्क 2016 के अंत से पहले भारत में सबसे व्यस्त स्टेशनों में से 100 को कवर करने के लिए तेजी से विस्तार करेगा, और शेष स्टेशन उसके बाद जल्द ही कवर होंगे ।
जब सिर्फ पहले 100 स्टेशन ऑनलाइन होंगे, तब भी इस परियोजना के माध्यम से हर दिन 1 करोड़ से अधिक लोगों के लिए वाई-फाई उपलब्ध होगा। यह भारत में सबसे बड़ी सार्वजनिक वाई-फाई परियोजना होगी, और संभावित उपयोगकर्ताओं की संख्या के हिसाब से दुनिया की सबसे बड़ी परियोजनाओं में गिनी जाएगी । यह वाई-फाई तेज़ भी होगा - भारत में अधिकतम लोग आज जो उपयोग करते हैं उसकी तुलना में कई गुना तेज़ । इस से यात्री जितनी देर इंतज़ार कर रहे हैं उतनी देर में एक उच्च परिभाषा वीडियो स्ट्रीम कर पाएंगे, अपने गंतव्य के बारे में कुछ अनुसंधान कर पाएंगे या कुछ वीडियो, एक पुस्तक या एक नया खेल डाउनलोड कर पाएंगे । सबसे अच्छी बात, यह सेवा शुरू में मुफ्त होगी, और भविष्य में इसे आत्मनिर्भर बनाने का दीर्घकालीन लक्ष्य है ताकि रेलटेल और अधिक भागीदारों के साथ अधिक स्टेशनों और अन्य स्थानों में इसका विस्तार किया जा सके ।
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| इस नक्शे में वो पहले 100 स्टेशन दर्शाये गए हैं जहाँ 2016 के अंत तक उच्च गति वाई-फाई होगा |
पर यह सिर्फ एक हिस्सा है । अधिक भारतीयों को सस्ती, उच्च गुणवत्ता वाले स्मार्टफोन्स प्राप्त करने के लिए, जो अधिकतम लोगों के लिए इंटरनेट का उपयोग प्राथमिक तरीका है, हमने पिछले साल एंड्राइड वन फ़ोन लांच किया था । सीमित बैंडविड्थ की चुनौतियों से निपटने में मदद करने के लिए, हम हाल ही में मोबाइल वेब पृष्ठों को तेजी से और कम डेटा के साथ लोड करने की सुविधा लाये हैं, यूट्यूब ऑफ़लाइन उपलब्ध बनाया है और ऑफलाइन मैप्स जल्द ही आने वाला है ।
भारतीयों, जिनमे से कई अंग्रेजी नहीं बोलते, के लिए वेब सामग्री और अधिक उपयोगी बनाने में मदद करने के लिए और अधिक स्थानीय भाषा की सामग्री को बढ़ावा देने के लिए हमने पिछले साल भारतीय भाषा इंटरनेट एलायंस की शुरूआत की है, और हमारे उत्पादों में अधिक से अधिक स्थानीय भाषा समर्थन का निर्माण किया है - हिंदी वॉयस खोज, उन्नत हिंदी कीबोर्ड और एंड्राइड के नवीनतम संस्करण में सात भारतीय भाषाओं के लिए समर्थन में सुधार । और अंत में, सभी भारतीयों को कनेक्टिविटी का लाभ लेने में मदद करने के लिए, हमने महिलाओं, जो कि आज भारत में इंटरनेट उपयोगकर्ताओं का सिर्फ एक तिहाई भाग हैं, की मदद करने में अपने प्रयास और तेज़ किये हैं ताकि वे वेब से अधिकतम लाभ उठा सकें ।
हज़ारों युवा भारतीय हर दिन चेन्नई सेंट्रल से निकलते हैं, जैसे मैं कई साल पहले निकलता था, सीखने और जानने के लिए उत्सुक, और अवसर की तलाश में । मेरी आशा है कि यह वाई-फाई परियोजना इन सब बातों को थोड़ा आसान कर देगी ।
सुन्दर पिचई, सीईओ, गूगल के द्वारा प्रकाशित
Monday, 31 August 2015
Home Insurance Tips..............
1. Safeguard your home
Take action to make your home theft-resistant. “Case” your home as if you were a burglar.
Burglars look for easy targets – make sure your home isn’t one of them.
- Install exterior lights that are out of reach and triggered by motion.
- Trim trees and shrubs near doors and windows.
- Don’t hide house keys outside – burglars know where to look.
- Consider investing in a security system. Not only does this make your home safer, it can lower your home insurance premiums.
When you’re on vacation:
- Have mail and newspapers picked up.
- Leave blinds in normal positions.
- Arrange to have your lawn mowed or your driveway shoveled.
- Tell police and neighbors that you will be away and ask them to watch your home.
2. Be a responsible dog owner
The numbers speak for themselves: According to the Center for Disease Control and Prevention, 40% of Americans homes have a dog. There are 4 million dog bites per year, and dog bites create 33% of all homeowners liability claims – resulting in more than $1 billion in claims per year. Consider these tips to avoid having a claim brought against you:
- Pick a dog breed that’s covered by your home insurance. Ask your insurance agent for details.
- Have your dog spayed or neutered.
- Train your dog.
- Keep your dog on a leash when walking.
3. Protect your home business
Home businesses are generally not covered under your home insurance policy. You may have only limited property coverage and no liability coverage for your business under your homeowners policy. Research the coverage that you have for property and equipment damage or theft, loss of income, and general liability for customer and supplier injuries.
4. Cover your domestic help
Check with your state Department of Insurance regarding whether you need a workers’ compensation policy for your housekeeper, gardener, nanny, cook, or other domestic employees. In addition, if someone else occasionally runs errands for you and drives your car, have that driver listed on your auto insurance. Confirm that you have adequate liability and medical coverage on your home insurance policy. Consider purchasing a personal umbrella policy.
5. Review your coverage annually
Your home insurance should reflect your home’s current value, condition and improvements. Check your policy each year and review your specific coverages so that you will be able to make the necessary adjustments to fully protect your home.
Saturday, 22 August 2015
Life Insurance: The Basics
Life Insurance: The Basics
Life insurance was
initially designed to protect the income of families, particularly young
families in the wealth accumulation phase, in the event of the head of
household's death. Today it is used for many reasons, including wealth preservation and estate tax planning. Of course, it still provides you with the
opportunity to protect yourself and your family from personal risk exposures
like repayment of debts after death, providing for a surviving spouse and
children and fulfill other financial goals such as college funding, leaving a
charitable legacy or paying for funeral expenses.
Life insuranceprotection is also important if you are a business owner or a key person in
someone else's business, where your death (or your partner's death) could
prevent the business from continuing its operation. One of the key benefits
from any type of life insurance is that the death benefit that is paid out is
always tax-free.
All life insurance policies involve four separate parties: the insurance
carrier, the policy owner who pays the premiums, the insured upon whose death
the policy will pay out and the beneficiary who receives the death
benefit proceeds.
Who Needs It?
Not everybody needs life
insurance. If you are single and have no dependents, it may not be worth the expense. If, however, you
have anyone who financially depends on you (even partially), life insurance may
be appropriate for you. When considering life insurance, ask yourself the
following questions:
- Do I need life insurance?
- How much do I need?
- How long will I need it?
- What type of policy makes sense for me?
Your need for life
insurance will depend on your personal circumstances, including your current
income, your current expenses, your current savings and debt and your family's
goals. Many planners recommend coverage equal to at least six to 10 times your gross annual income, but your or your family's needs may
differ from that. You will have to compare the what you have versus what goals
you'd like for your family once you are gone, keeping in mind that their
security can often carry a higher price tag than you originally thought.
Types of Life Insurance
Life insuranceprotection comes in many forms, and not all policies are created equal, as you
will soon discover. While the death benefit amounts may be the same, the costs,
structure, durations,
etc. vary tremendously across the types of policies.
Whole Life
Whole life insurance provides guaranteed insurance protection for the entire life of the insured, otherwise known as permanent coverage. These policies carry a "cash value" component that grows tax deferred at a contractually guaranteed amount (usually a low interest rate) until the contract is surrendered. The premiums are usually level for the life of the insured and the death benefit is guaranteed for the insured's lifetime. Any withdrawal you make will typically be tax free up to the amount of premiums you have paid into the policy minus any prior dividends paid or previous withdrawals. Because of their permanent protection, these policies tend to have a much higher initial premium than other types of life insurance.
Whole life insurance provides guaranteed insurance protection for the entire life of the insured, otherwise known as permanent coverage. These policies carry a "cash value" component that grows tax deferred at a contractually guaranteed amount (usually a low interest rate) until the contract is surrendered. The premiums are usually level for the life of the insured and the death benefit is guaranteed for the insured's lifetime. Any withdrawal you make will typically be tax free up to the amount of premiums you have paid into the policy minus any prior dividends paid or previous withdrawals. Because of their permanent protection, these policies tend to have a much higher initial premium than other types of life insurance.
Universal Life
Universal life insurance resembles whole life in that it is also a permanent policy providing cash value benefits based on current interest rates. However, the premiums, cash values and level amount of protection can each be adjusted up or down during the contract term as the insured's needs change. Cash values earn an interest rate that is set periodically by the insurance company and is generally guaranteed not to drop below a certain level.
Universal life insurance resembles whole life in that it is also a permanent policy providing cash value benefits based on current interest rates. However, the premiums, cash values and level amount of protection can each be adjusted up or down during the contract term as the insured's needs change. Cash values earn an interest rate that is set periodically by the insurance company and is generally guaranteed not to drop below a certain level.
Variable Universal Life
Variable universal life insurance gives the consumer the flexibility of a universal policy along with a selection of investment choices. The mutual fund sub accounts in these policies are technically classified as securities and are therefore subject to Securities and Exchange Commission (SEC) regulation and the oversight of the state insurance commissioner. The investment risk in these policies lies with the policy owner; as a result, the death benefit value may rise or fall depending on the success of the policy's underlying investments. However, policies may provide some type of guarantee that at least a minimum death benefit will be paid to beneficiaries.
Variable universal life insurance gives the consumer the flexibility of a universal policy along with a selection of investment choices. The mutual fund sub accounts in these policies are technically classified as securities and are therefore subject to Securities and Exchange Commission (SEC) regulation and the oversight of the state insurance commissioner. The investment risk in these policies lies with the policy owner; as a result, the death benefit value may rise or fall depending on the success of the policy's underlying investments. However, policies may provide some type of guarantee that at least a minimum death benefit will be paid to beneficiaries.
Term Life
One of the most commonly used policies is term life insurance. It pays the face amount of the policy, but only provides protection for a definite, but limited, amount of time. Term policies do not build cash values and the maximum term period is usually 30 years. They are useful when there is a limited time needed for protection and when the dollars available for coverage are limited. The premiums for these types of policies are significantly lower than for any type of cash value policy. They also (initially) provide more insurance protection per dollar spent than any type of permanent policy. However, the cost of premiums increases as the policy owner gets older and as the end of the specified term nears. Term polices can have some variations, including, but not limited to:
One of the most commonly used policies is term life insurance. It pays the face amount of the policy, but only provides protection for a definite, but limited, amount of time. Term policies do not build cash values and the maximum term period is usually 30 years. They are useful when there is a limited time needed for protection and when the dollars available for coverage are limited. The premiums for these types of policies are significantly lower than for any type of cash value policy. They also (initially) provide more insurance protection per dollar spent than any type of permanent policy. However, the cost of premiums increases as the policy owner gets older and as the end of the specified term nears. Term polices can have some variations, including, but not limited to:
- Annual Renewable and Convertible Term: This policy
provides protection for one year, but allows the insured to renew the
policy for successive periods thereafter, but at higher premiums without
having to furnish evidence of insurability. These policies may also be
converted into whole life policies without any additional underwriting.
- Level Term: This policy has an initial guaranteed
premium level for specified periods; the longer the guarantee, the greater
the cost to the buyer (but usually still far more affordable than
permanent policies). These policies may be renewed after the guarantee
period, but the premiums do increase as the insured gets older.
- Decreasing Term: This policy has a level premium, but
the amount of the death benefit decreases with time. This is often used in
conjunction with mortgage or other debt protection.
Many term life insurancepolicies have major features that provide additional flexibility for the
insured/policyholder. A renewability feature, perhaps the most important
feature associated with term policies, guarantees that the insured can renew
the policy for a limited number of years (i.e., a term between five and 30
years) based on attained age. Convertibility provisions permit the policy owner
to exchange a term contract for permanent coverage within a specific time frame
without providing additional evidence of insurability. Of course, these
provisions will raise the policy premiums accordingly.
The Bottom Line
Many insurance consumers
only need to replace their income until they've reached retirement age, have
accumulated a fair amount of wealth, or their dependents are old enough to take
care of themselves. When evaluating life insurance policies for you and your
family, you must carefully consider the purchase of temporary versus permanent
coverage. There are many differences in how policies may be structured and how
death benefits are determined, as well as how they are priced and their
duration.
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