Aspects oF I

Aspects of Life InsuranceWhat is insurance ??Insurance is a way of buying peace of mind that if you suffer an unfortunate, unpredictable loss you will receive financial compensation from the insurer.This compensation is meant to put you back in the same financial position you enjoyed before the loss or make a specified benefit paymentHow does insurance work ??By collecting a sum of money from each person wishing to have insurance, the insurer creates a fund from which he eventually pays the losses of those policyholders who suffer a loss. In this way the contributions of the many pay for the losses of the few.The contribution or "premium" you pay into the fund depends on:the size of the risk you want to cover since this will affect the size of the "claim" or amount you will be entitled to take from the fund; andthe likelihood of a claim occurring, which is calculated on the basis of past experience and the expertise of the insurer.Why do One need insurance?We can give countless examples of unexpected events that may cause family to suffer a financial loss:An unexpected event could happen, such as a fire in your home. Your most valuable investment and possession could be destroyed.You may be on holiday and lose your baggage.You may meet with an accident that costs you your life. Your family will need the financial support that you previously gave them. In some cases, you may turn to state benefits for compensation but these are usually low; besides, you must make sure that you qualify for them.Moreover, there are situations that impose a legal obligation to be insured, such as when driving a car or other motor vehicle.What is life insurance?Life insurance offers valuable financial protection in the event of your early death and makes a payment to your beneficiaries, heirs or family members dependent on your selected sum assured and earnings. But it may also be a means of saving. This combination of protection and saving makes life insurance unlike any other financial product. Some policies protect, some help you to save and some do both.Conti ..A life insurance is a long term contract which may mean that for a number of years, you have to pay a periodic premium to your life insurance company and it was not 'annually renewable'. When you take out a life policy, you have to be sure that you would be able to meet your obligations of premium payments on time and in full. In certain circumstances, you may not be able to obtain the full value of your insurance premium paid over the years if you surrender your policy before its maturity or if you have missed premium payments.types of life insuranceThere are basically two types of life insurance,

Term life Permanent life.ContiTerm insurance is used for several reasons, including (and not limited to):Short term salary coverage.Cover a debt.

A combination of both types of insurance is normally suggested, with term being used for the short term and permanent for the long term.

Paying of PremiumsPaying for your life insurance policy usually takes two basic forms:Single Premium: a lump sum is paid at the beginning of the policy. No other payments are made for the whole duration of the policy. Some policies may allow you to "top-up" the amount at particular specified intervals during the policy term.Periodic Premium: this can be annual or in instalments e.g. monthly or quarterly. An instalment premium would normally incur charges made to the policyholder as a result of higher administration for the insurance company.Indian insurance regulatorThe Insurance Regulatory and Development Authority (IRDA) was established in the year 1999 by the Indian Government, for two significant reasonsTo safeguard the interest of the policy holders and for the up gradation of the entire insurance sector right from the approach adopted by the existing insurance companies towards their shareholders to the eradication of the shortcomings of the industry. The organization was set up under the guidelines of the Insurance Regulatory and Development Authority Act, 1999. Function of Insurance Regulatory and Development AuthorityNomination by PolicyholdersSettlement of insurance claimPractical training for Insurance agents and other intermediariesInsurable InterestSurrender value of PolicyholdersCode of conduct of Insurance intermediariesAssistance in gaining correct information about policiesCreation of management information systemPromotion of Self regulation within the insurance sectorComposition of authorityAs per the section 4 of IRDAI Act' 1999, Insurance Regulatory and Development Authority of India(IRDAI, which was constituted by an act of parliament) specify the composition of AuthorityThe Authority is a ten member team consisting of (a) a Chairman; (Mr.T.S.Vijayan)(b) five whole-time members; (c) four part-time members,

(all appointed by the Government of India)

Companies providing life insurance in india Life Insurance Corporation of India - LIC of IndiaAEGON Religare Life Insurance Company Ltd - AEGON ReligareAviva Life InsuranceBajaj Allianz Life Insurance Company Ltd BajajAllianzBharti AXA Life InsuranceBirla Sun Life Insurance Company Ltd - Birla SunLifeDHFL Pramerica Life Insurance Company Ltd - DHFL PramericaEdelweiss Tokio Life Insurance Company Ltd - Edelweiss TokioExide Life Insurance Company Ltd - ING Vysya Life InsuranceFuture Generali India Life Insurance Company Ltd - Future GeneraliHDFC Standard Life Insurance Company Ltd - HDFC LifeHSBC Oriental Bank of Commerce (OBC) Life Insurance Company Ltd - Canara HSBC LifeConti.ICICI Prudential Life Insurance Company Ltd - ICICI Pru LifeIDBI Federal Life Insurance Company Ltd - IDBI FederalIndiaFirst Life Insurance Company Ltd - India FirstKotak Life InsuranceMax Life Insurance Company Ltd MaxLifePNB MetLifeIndia Insurance Company - PNB MetLife MedicaimReliance Life InsuranceSahara Life Insurance Company Ltd - Sahara LifeSBI Life Insurance Company Ltd - SBI LifeShriram Life Insurance Company Ltd - Shriram LifeStar Union Dai-ichi Life Insurance Company Ltd - Star Union Dai-ichiTata AIA Life Insurance Company Ltd - Tata AIA Life