Almost you are telling to everyone having a policy with very
less sum assured to convert to PAID - UP.
According to Sum Assured Usually, single premium policies offer
lesser sum assured compared to regular premium ones.
Almost you are telling to everyone having a policy with very
less sum assured to convert to PAID - UP.
Endowment policies are meant for those looking for regular savings with a 100 % guarantee on their investment, those who require
a lesser sum assured, and a lump sum amount at a particular age.
The reasons can range from higher premium amount,
less sum assured, more waiting period, stringent renewal process and so on.
Single premium policies usually offer
less sum assured than regular premium policies.
For a little
lesser sum assured, premium would be even less.
Being under - insured (buying
lesser sum assured as required) will leave your family with a shortfall of finances, and over-insured will only increase the cost (higher annual premium for a higher sum assured).
So, this way by opting
lesser sum assured, policyholders» restrict their tax benefits.
On the other hand, Offline term insurance plans, though offers a high sum assured, in reality, individuals would take only for
less sum assured as it comes with very high premiums.
Not exact matches
Not only do they cost
less but can be bought instantly at a click of a button as well without any medical tests (for a certain age group and up to a particular
sum assured).
One may still go - ahead and buy an insurance if you are going to have dependents in the near future as the premium at lower age would be
less than the premium at higher age for the same
sum assured.
But keeping the time value of money in mind, insurance companies charge
lesser premium for such a plan compared to the lump -
sum payout term insurance plan, for a specific
Sum Assured.
The insurance regulator has underlined that except for variable insurance products, the death benefit for all non-linked individual product can not be
less than the basic
sum assured.
Even though the beneficiaries will receive the basic
sum assured in case of your death, the Accidental Rider offers your family extra funds to make sure that you can manage all their expenditure, thereby making it
less nerve - racking to deal with the loss of their loved one.
The Future Generali Life Insurance policy comes with two choices: the Classic Option that has a
sum assured of
less than Rs. 25 lakh and the Premier Option that provides an insurance cover of Rs. 25 lakh and above.
The maximum
sum assured is higher of ten times the annual premium or half of policy term multiplied by annual premium for people
less than 45 years.
In case of early death, the nominee is entitled to have the
sum assured or the accumulation amount,
less outstanding premiums, whichever is higher
While, if he buys Religare Floater Health insurance Plan that offers a
sum assured equal to Rs. 3 Lacs, then the premiums that he would need to pay will be considerable
less than the
sum of premiums paid for individual plans.
Premium for my plan is
less and payed thrice per year and at the time of maturity the
sum assured might be 31 L.
The death benefit is similar to the Wealth Protect Plan which is higher of
sum assured less any withdrawals, fund value or 105 % of the premium paid.
It is also important to know that for policies starting April 1, 2012 and later, Section 80C of the Act currently allows a deduction on premium paid on life insurance policy only if the annual premium paid is
less than 10 % of the
sum assured.
The policy value is either the present value of the basic
sum assured plus the bonuses given,
less future premiums (for conventional contracts) or the bid value of a unitised with - profits policy.
Unlike ULIPs these products are
sum assured based and not market linked products leaving much
less scope for speculative selling and buying behaviour.
Traditional Insurance is closer to Protection: Right from the sale when the premium is a function of the
sum assured to the bonus declaration which also adds to increased growth of protection component within the policy, traditional insurance is closer to protection than ULIPs wherein protection element of the policy, in most cases is more or
less constant or subject to vagaries of the market and fund value.
No Medicals: If you are under 45 and a non-smoker, you do not need to undergo a medical test if the
sum assured is
less than Rs 50 lakh, however there can still be medical test requirement basis your medical history.
Although there are other plans which offer much
less premium for a
sum assured than HDFC Click 2 Protect plan.
In the return of premium option, in case of the death of the insured with
less than 45 years, highest of - the
sum assured or 125 % of the single premium is paid or minimum guaranteed
sum assured on maturity is paid.
However there are other finer details on tax aspects also like its eligibility for tax deduction is only when the premium is
less of equal to 10 % of the
sum assured.
b) higher of
sum assured (
less partial withdrawal) or base premium fund value, plus higher of top - up
sum assured or top - up premium fund value.
The maximum
sum assured (including base plan and top up across all polices with Reliance Life Insurance Company) shall not exceed «5 lac, if the age of the life
assured is greater than or equal to 7 years but
less than 12 years.
Payment of top - ups would result in increase in
sum assured by 125 % of the top up premium paid, in case the age of the life
assured at the time of payment of top up premium is
less than 45 years and 110 % of the top up premium paid, in case the age of the life
assured at the time of payment of top up premium is greater than or equal to 45 years.
If the critical
sum assured is
less than the basic
sum assured, critical
sum assured is paid and the policy continues with the reduced
sum assured.
■ The additional death benefit can be taken as lump
sum or as 25 % of basic
sum assured paid at the end of the each last four years and family income benefit as 1 % of the basic
sum assured at the end of every month following the date of death till the end of the policy term but not
less than 36 monthly payments.
Premium Payment Mode
Sum Assured - The sum assured must not be less than at least ten times your current income, says the thumb p
Assured - The
sum assured must not be less than at least ten times your current income, says the thumb p
assured must not be
less than at least ten times your current income, says the thumb pattern.
The maximum
sum assured for
less than 45 years is 10 times the annualized premium and for more than or equal to 45 years 7 times the annualized premium
Later I came to know that Term insurance is a better option for insuring the life with
less premium and I took HDFC Click 2 protect term insurance with 1C
sum assured.
As the premium paid is being shared among 4 individuals the price range is reduced resulting in the same amount of
sum assured being provided in
lesser cost.
However, on the other hand, if the buyer is above 45 years of age and the tenure of the policy is
less than 10 years, then the minimum
sum assured will be limited.
Under the guidelines of IRDA, if a person aged
less than 45 years buy a life insurance policy of 10 years tenure then the
sum assured will be 10 times the yearly premium.
Insurance companies also offer another
less known way of giving
sum assured to the family / nominees of the policyholder — annuity.
These low
sum assured are perfect for the rural population who have
lesser expenses and still need an insurance cover.
It is valid only if premium is
less than 10 % of the
sum assured
All life insurance premium paid under a money back policy qualifies for tax deductions under section 80C of the Indian Income Tax Act, up to the specified limit, as long as the premium is
less than 10 % of the
sum assured.
If the coverage is low, the premium of course, would be low, but the purpose would not be served in the event that calamity strikes and the
sum assured is
less than the value of damaged property.
However, both the premium and the
sum assured will be tax - free only if the annual premium is
less than 10 % of the total
sum assured.
On availing a
sum assured of Rs 5, 00,000 and above but
lesser than Rs 10, 00, 000, the insured gets a rebate on premiums, i.e. (
sum assured / 1000) x 4;
A free paid - up plan for
lesser assured sum amount can be secured, if payment of premium ceases after a certain minimum number of years, terms and conditions applied.
Under the non-smoker category, the minimum
sum assured is Rs 50 lakh and the premium rates are
lesser than the aggregate category.
The premiums are
less ~ 29 K and the returns are high ~ Rs. 34 L and the
sum assured will be determined based on the premium paid by the policyholder.