NewsA Unit Linked Insurance is one in which the customer is provided with a life insurance cover and the premium paid is invested in either debt or equity products or a combination of the two .In other words ,it enables the buyer to secure some protection for his family in the event of his untimely death and at the same time provides him an opportunity to earn a return on his premium paid .In the event of the insured persons’ untimely death, his nominee would normally receive an amount that is the higher ,the sum assured or the value of the unit.
Unit Linked Insurance Plans came into play in the 1960s and become very popular in western Europe and Americas’ India the first unit linked insurance plan ,popularly known as ULIP- Unit Linked Insurance Plan in India was brought out by Unit Trust of India in the year 1971 by entering into a group insurance arrangement with LIC to provide for life cover to the investors, while UTI as a mutual fund was taking care of investing the unit holder money in the capital market and giving them a fair return.
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What do you mean by ULIP?
Write a note on Disability Insurance.
Health insurance is an important feature of human insurance and again of the variety of forms of health insurance, disability insurance is significant. It useable in case he or she is disabled by sickness or illness which prevents him or her from earning revenue. Such disability insurance policy varies from every insurance company. On the other hand one should note that buying the cheapest disability insurance policy on the market is actually harmful since the option of receiving paid by a monthly benefit under a cheap agreement may be considerably lesser than benefiting from a feature agreement. Disability Insurance can cover people like professionals, small business owners, professionals, government owners, engineers, and other occupations .Total Permanent Disability means that because of sickness or wound, a person is unable to work in any suitable occupation. Insurance companies define permanent disability differently, although typical definitions would include loss of two eyes, arms or legs or absence from work for six months. The difference between total lasting disability and income safeguard insurance is that in the former case, the insured person should be permanently disabled for the insurer to cover his or her case.
What is the role& types of claim in life insurance?
A’ Claim ‘is the demand that the insurer should use the promise made in the contract. The insurer has taken to perform his part of the contract that is .settle the claim, after satisfying him that all the condition and requirement for settlement of claim have been complied .In claim he should check the event that the insurer has taken. the obligation assumed under the contract which are required to be performed like a payment o0f bonus , payment of sum assured .who are the person entitled to demand performance .Nomination assignment , income tax notice , prohibitory orders , official assignees etc.
There are different types of claim in life insurance.
Maturity Claims: when the sum assured is to be paid on the end of policy .the date on which the term is complete is called the “Maturity Claims”.
Critical illness claims: the benefits under critical illness claims would be payable on satisfactory evidence.
Death claim: In this the fact is related to accidental or natural death or the payment will be paid before the maturity of policy. The death claim action begins with and intimation being received in the insurer office.
What is the role& types of claim in life insurance?
A’ Claim ‘is the demand that the insurer should use the promise made in the contract. The insurer has taken to perform his part of the contract that is .settle the claim, after satisfying him that all the condition and requirement for settlement of claim have been complied .In claim he should check the event that the insurer has taken. the obligation assumed under the contract which are required to be performed like a payment o0f bonus , payment of sum assured .who are the person entitled to demand performance .Nomination assignment , income tax notice , prohibitory orders , official assignees etc.
There are different types of claim in life insurance.
Maturity Claims: when the sum assured is to be paid on the end of policy .the date on which the term is complete is called the “Maturity Claims”.
Critical illness claims: the benefits under critical illness claims would be payable on satisfactory evidence.
Death claim: In this the fact is related to accidental or natural death or the payment will be paid before the maturity of policy. The death claim action begins with and intimation being received in the insurer office.
What is underwriting in Life Insurance? And which risks are comes under it?
The “ Underwriting “ process is an important one in any insurance company , life or non-life .if the risk is wrongly assessed ,the premium charged not be appropriate .a lower premium affects the solvency of the fund. A proposal is for an insurer cover .When a proposal is received , the insurer will not grant the cover automatically this is because the insurer role as a trustee .it has to insure that every new entrant in to the pool has similar exposure to the risk as the other. This process of verifying the level of risk in each new entrant and determining the terms of admission is called ‘Selection’ or ‘Underwriting’
We have different type of risk under “Underwriting”:
Physical risk: Age, Sex, Personal history, Build, Physical condition.
Occupational risks: that are those risk which are arise out of one’s job
Moral risks : which are not measurable and refer to the intention of the proposer
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