TRADITIONAL LIFE INSURANCE POLICIES

In market there are different types of Life insurance policies are available for the different requirements of the peoples. A few popular are described below for all just to have an idea and choose whichever suits your requirement.

TERM POLICY

Term Life Insurance Policy is as its name suggests is taken for a specific term or a period of time and if the insurer dies during this period the nominee will get the sum assured.  This policy is although a low premium policy and does not pay any amount on survival of insurer. This policy is beneficial for the people who cannot afford a heavy amount on premiums. It is purely an insurance scheme and does not have investment features like others policies.

Types of Term Life Insurance Policies:

Yearly Renewable Term Insurance:

 This policy is issued for a period of one year and the insurer settles the claim if insured dies during this period. This policy can be taken for up to a certain age such as 65 years etc.

Level Term Life Insurance: The premium paid under this type of policy remains constant for the whole period. The longer the period, the higher is the premium. Because it cover the insured till older age where chances of deaths are higher. This policy can be renewed only on the discretion of insurer, subject to good health of insured.

Decreasing Term Life Insurance: Under this type of policy the benefits starts decreasing every year whereas, the annual premium is constant.  For eg. the benefits to the insured will be lesser if death took place in proceeding years, in comparing to starting period.

Increasing Term Life Insurance: The benefit also goes up along with the premium every year. Term insurance is helpful to those who do not have more money in initial years.

WHOLE LIFE INSURANCE

The purest form of Life Insurance is Whole Life Insurance also known as Ordinary Life Policy and the oldest in insurance history.  Under this policy premiums are paid throughout life and the sum insured becomes payable only at the death of the insured. The policy remains in force throughout the life of the assured and he/she continues to pay the premium till death. This is the cheapest policy as the premium charged is the lowest under this policy. This policy satisfies the original intention of life insurance which is to provide security to dependents on the death of the assured.  

The payment under the policy is assured and this policy does not have an end date. The assured can insure himself or herself for higher amounts (at comparatively low premiums) so that his dependents are well provided for in the event of his or her death. This type of policy requires premium payment to be made indefinitely and the policy holder may find it difficult to continue the premium payment during his old age. This type of policy is ideally suited to take care of estate duty liability. Duties or property tax is payable on the death of the assured by the legal heirs for transfer of property in their name. This duty at times can be very steep. The proceeds of the policy is useful for paying up these taxes.

Types of Whole Life Insurance                                     

Single Premium: The premium under this policy is paid only once at the time of inception of policy calculated as per the sum assured.

 Continuous Premium: The insured continues to pay the same premium as long as he or she lives at the same duration as decided upon at the time of inception of policy. The premium is calculated taking into account the probability of insured’s death and compound interest.

 Modified Whole Life Insurance: The premium paying option under this type of policy is flexible for the ease of insured. Generally, insured asked to pay low level of premium in the initial years and much higher amount in the later years as the earning capacity of the insured goes up.

ENDOWMENT LIFE POLICY

In this policy the insurer agrees to pay the assured or his nominees a specified sum of money on his death or on the maturity of the policy whichever is earlier. Premium is naturally a little higher in the case of this policy than the whole life policy. This is a very popular policy these days as it serves the dual purpose of family and ole age pension.  The premium is payable till the maturity of the policy or until the death of the assured whichever is earlier.

Double endowment policy

The insurer agrees to pay to the assured double the amount of the insured sum if he lives on beyond the date of maturity of the policy. This policy is suitable for persons with physical disability who are otherwise not acceptable for other classes of assurance at the normal tabular rates. Premiums are to be paid for a selected term of years or until death, if earlier.

JOINT LIFE POLICY

This policy is taken on the lives of two or more persons simultaneously. It covers the risk on two lives and is generally available to partners in business. Policies are however, issued on the lives of husband and wife under specified circumstances. Sum assured becomes payable at the end of the selected term or on the death of either of the two lives assured, if earlier.

CHILDREN’S POLICIES

Fixed Term endowment (Marriage):  This policy is purchased by the parent and guardian for the purpose of marriage of their ward, they are regarded as the assured. A particular time is selected and the sum is paid to assured on expiry of term.  Premium is paid till the maturity of term or on the death of the assured. The sum assured is paid in lump sum at the end of term or on the death of assured whichever occur first. The logic behind this policy is to generate a lump sum for a major occasion like marriage.

Educational Annuity Assurance: This policy is similar to fixed term endowment (marriage) the difference is that the sum assured is paid in half yearly installments for 5 years, which is ideal to pay semester fees for higher education. These policies are taken forecasting the futuristic expenditure.  

MONEY BACK POLICY

Money back policy is working on the same platform like endowment plans work. The unique feature of this type of policy is certain share of sum assured is paid to the insured at a certain interval. At the end of policy term the remaining amount plus bonus occurred thereon is paid to the insured. If insured is died in between the term period the sum assured is paid fully and no premium is required to pay thereafter.  

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History of Life Insurance in India

Life insurance business in India begins in 1818 with the establishment of Oriental Life Insurance Company in Calcutta, but failed in 1834. The Madras Equitable had started the life insurance business in 1829 in Madras Presidency. The British Insurance Act came into effect in 1870. The Bombay Mutual (1871), Oriental (1874) and Empire of India (1897) were started their business in the Bombay Residency. The business was totally dominated by foreign companies like Albert Life Assurance, Royal Insurance, Liverpool and London Globe Insurance.

 The Government of India started publishing returns of Insurance Companies in India in 1914. The Indian Life Assurance Companies Act, 1912 was the first statutory measure to regulate life business. In 1928, the Indian Insurance Companies Act was enacted to enable the Government to collect statistical information about both life and non-life business transacted in India by Indian and foreign insurers including provident insurance societies. In 1938, with a view to protecting the interest of the Insurance public, the earlier legislation was consolidated and amended by the Insurance Act, 1938 with comprehensive provisions for effective control over the activities of insurers.

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   The Insurance Amendment Act of 1950 abolished Principal Agencies. However, there were a large number of insurance companies and the level of competition was high. There were also allegations of unfair trade practices. The Government of India, therefore, decided to nationalise insurance business. An Ordinance was issued on 19^th January, 1956 nationalising the Life Insurance sector and Life Insurance Corporation (LIC) came into existence in the same year. The LIC absorbed 154 Indian, 16 non-Indian insurers as also 75 provident societies—245 Indian and foreign insurers in all. The LIC had monopoly till the late 90s when the Insurance sector was reopened to the private sector.

 The Insurance Regulatory and Development Authority (IRDA) was constituted as an autonomous body on the recommendations of the Malhotra Committee report. The IRDA was incorporated as a statutory body in April, 2000 with the key objectives to promote the competition so as to enhance customer satisfaction through increased consumer choice and lower premiums, while ensuring the financial security of the insurance market.

Insurance now a day is every body’s need. We cannot compromise on it.  In market, complex and simple both insurance plans are available. But to choose the right insurance policy, the strategy should be to have a policy on low premium for long term. So that to have a chance to stay invested for longer time.  Always stay away from expensive and lucarative products.  The ideal formula for insurance is to have at low premium, cover maximum and stay connected for longer period. In the mean time we should not forget that the low premium policies are cheap policies, but it is important to note that what benefits it provide us. To have a good policy always study each plan minutely.

The insurance sector is a vast and is growing at a speedy rate of 15-20%. Together with banking services, insurance services add about 7% to the country’s GDP. A well-developed and evolved insurance sector is a boon for economic development as it provides long- term funds for infrastructure development at the same time strengthening the risk taking ability of the country.

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Life Insurance for You

Life Insurance for you is a way to protect your survivors and dependents against financial hardship. It’s a means of spreading financial risk among a large number of people who pay into a fund or pool. In this the cost is minimized for those who suffer an unexpected misfortune. A life insurance contract or policy is a legal agreement between you and an insurance company that guarantees payment of the face value of the policy, upon death or on survival whichever is earlier.  A valuable feature of life insurance is that the benefit paid to your beneficiary is almost always tax free.

How Much Cover is Enough?

How do you figure out how much life insurance you need?  If you want to know how much insurance cover you should have, the answer is 10 times of your annual income. If your annual income is ten lakhs rupees then the insurance cover should be of rupees one crore. The second way to know is you should ask to yourself that how valuable is your life. For that you should know the current value of future income.  For instance, you should know if some day you didn’t return to your home after work, how much money your dependents should need after your departure. It gives you a picture of the capital your survivors need when you die. It looks at assets that would be available to them, liabilities they would have to deal with, and continuing family needs for income.

1.     Annual Income                                            :           Rs 10 Lac

2.     Your expenditure with taxes                          :           Rs. 2 Lac

3.     Insurance premium                                      :           Rs. 50,000

4.     Total expenditure(Yours)                               :           Rs. 2.5 Lac       (2+3)

5.     How much your family need           

(in your absence)                                         :           Rs. 7.5 Lac       (1-4)

6.     For next 25 years your family

Needs                                                         :           Rs. 1.4 Crore

(This is an example for an ideal young fellow 35 years of age earning ten Lac rupees annually.)

IMPORTANCE OF LIFE INSURANCE.

Life Insurance is of great importance to individuals, groups, business community and general public.

1. Saving for old age. After retirement the earning capacity of a person reduces. Life insurance enables a person to enjoy peace of mind and a sense of security in his/her old age.

2. Under the Income Tax Act, premium paid is allowed as a deduction from the total income under section 80C.

3. Life insurance encourages people to save money compulsorily.

4. Life insurance policy can be used as a security to raise loans. It improves the credit worthiness of business.

5. Life insurance is important for the society as a whole also. Life insurance enables a person to provide for education and marriage of children and for construction of house. It helps a person to make financial base for future.

And the last but not least…

6. Protection against untimely death Life insurance provides protection to the dependents of the life insured and the family of the assured in case of his untimely death. The dependents or family members get a fixed sum of money in case of death of the assured.

Life insurance for you is a major financial commitment. Your good friend or relative may be suggesting a lucrative plan how to be a millionaire. But you should be smart enough to have the deliberation on each aspect of the plan so that you are not trapped into their ponzy plans. You must know your needs first. A qualified life insurance agent can help you work out a more comprehensive financial needs analysis.  It's important to review your insurance needs regularly. As your family or business situation changes, so may your insurance needs. Beware, too, of future inflation and the way it could erode your insurance.

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Why You Should Buy Life Insurance and from Whom

Why do we need Life insurance Policy? Why it is necessary to me?  The answers to these questions are similar to - Why do we all marry? Why we all need kids? Why we marry and have kids is an endless argument. But the requirement of life insurance is needed for all. The value of its sum assured is differs from man to man.  If you are the sole bread winner of your family, then insurance is the only hope which supports financially your family after your departure. A Life Insurance Plan is very much essential if you bother who will take care of my family if something happens wrong to you tomorrow. How they will survive without you?

7 Reasons Why You Should Buy Life Insurance Policy:

1.         An Alternate to your income:  It can be your substitute income wise to your dependents if you are prolonged ill or died prematurely.

2.         A Good instrument for kids education: Life insurance premium paid by you will take care lifelong for your kid’s education.  It will allow them to live their life.

3.         May be a good investment instrument: The various plans available with almost all life insurance companies suit every individual according to their need. For e.g. ULIPs (Unit Linked Insurance Policies) / Endowment Plans etc.

4.         A substitute to Partner’s Income: It helps you to support financial even after demise of your spouse or business partner.

5.         A tax saving instrument: Under section 80 of income tax, a plan wise tax rebate is available for policy holders.

6.         To Buy at early age is better: As we understand that it is need of every individual.  So if it is taken at early age the premium will be less as compared.  

7.         A helpful investment at financial crisis:  The policy owned can be surrendered or partially withdrawn in case of financial hardship.

How to Buy Life insurance and from Whom

For many people, their first experience with life insurance is when a friend or relative gets an insurance license he tries to sell its product to his near and dears first. In my case, a college friend, recently hired by a major insurance company, contacted me and sold me a policy. Even truly speaking I was not in mood to purchase it. But is life insurance something that you truly need, or is it merely an inconvenience shoved under your nose by a salesperson? As a true advice I recommend that you should but it from an authentic person after comparing the similar plans of another company. While it may seem like the latter is true, there are actually many reasons as enumerated above, why you should purchase life insurance. But before buying it we must adhere the following points:

1          Think through why you are buying insurance and what core requirements and expectations

2          Seek and receive advice and options patiently. Be open-minded but cautious about the advice and information you gather Ask lots of questions about the policy options to see what fits your needs Find out policy details like: Whether it is a Single Premium or Regular Premium policy Which is the best premium payment frequency that suits you eg: Annual, quarterly etc. Whether there is an ECS (Electronic Clearing Service) payment option to make your premium payment safe and easy

3          Fill the proposal form very carefully and personally. Fill it completely and truthfully, Remember you are responsible for its contents Make sure that the information you give cannot be disputed during a claim Ensure you fill Nomination details If the form is in one language and you are answering the questions in a different language Ensure the questions are explained correctly to you and That you have understood them completely Remember you have to give a declaration to this effect in the proposal form

Keep a copy of the completed proposal form you sign and any declarations and terms agreed upon mutually for your records.

If you are buying Unit Linked Insurance Policies (ULIPs) ask specific questions about:

(i)            Various charges.

(ii)          Fund options.

(iii)         Switching of funds.

(iv)         Benefits if you.

Discontinue the policy

Surrender the policy

Make a partial withdrawal of funds

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What is Fitness

Fitness is a state of well being encompassing physical, mental, and morale aspects. Today with improvement in quality of basic life style and greater life span, all Indians are more conscious of overall fitness.  Fitness is very personal and reflects ones entire lifestyle, as to what one does for living, what one eats, how one manages his stress, a multiple of physical factors and of course how one exercises. Despite the increased fitness consciousness in India, most people do not understand what physical fitness really is or how to achieve it.  The situation is further aggravated, as due to the fact that what may be fitness for one person may be entirely different for another person.  An office worker has different fitness requirements than an industrial worker, a pro footballer has different fitness profile than his coach, a so it goes.  Fitness in fact is a concept is a way of life and is approached differently by different people.

Physical fitness may be broken into separate components.  Traditionally identified aspects of physical fitness are:

1.       Freedom from disease in the medical sense.

2.       Freedom from disease being at ease physically, disease may result form injury or other physical or psychological stress.

3.       Strength the ability to exert muscular force.

4.       Power the ability to exert force over a given distance in a given amount time.

5.       Agility the ability to perform a rapid series of explosive movements.

6.       Flexibility the ability to flex and extend the joints through their full intended range of motion.

7.       Cardiovascular endurance the ability of the heart and circulatory system to deliver oxygen and nutrients to the entire body effectively.

8.       Local muscular endurance the ability of any given muscle to perform sustained work.

9.       Co-ordination the ability to integrate factors listed above in such a way that skills can be really acquired and body movement is efficient and precise.

Why be Fit

By far, the most often heard reason for seeking physical fitness is to improve the quality of life.  The concept of  basic quality of  life is dependent on individual requirement and therefore degree of fitness aimed at differs person to person.  This reason is as broad in scope as physical fitness is.  The benefit of physical fitness is nevertheless the boundless offerings, such as:

1.     Fun

2.     Relaxation

3.     Rehabilitation from illness or injury.

4.     Sports conditioning.

5.     Enhancement of your self image.

6.     Injury prevention.

7.     Preparation for skill acquisition.

8.     Social contacts.

9.     Stress management.

10.                        Vigour.

11.                        General fitness for one’s job or lifestyle.

12.                        Fat reduction.

13.                        Psychotherapy.

14.                        Longer life.

One has to exercise to tolerate the stress in life without suffering

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Why do People Shout at Each Other

Why do people shout each other?  or Why do we wisher when we love each other? 

We shout each other because we lose the calmness in our mind. But, why do we shout when the other person is standing just next to us?   We can tell him off in a soft manner, can’t we?  The reason is when two people are angry at each other; there is lots of distance between their hearts.  To cover that distance, we generally shout each other to able to hear each other.  The angrier they are, the more they will have to shout to hear each other to cover that great distance. 

What happens when two people fall in love?  They don’t shout at each other but talk softly, because their hearts are very close at that time.  The distance between their hearts is nonexistent or very small.  When they love each other, what happens?  They do not speak, but only whisper and they get even closer to each other in their love.  Finally, they needn’t even whisper, they only look at each other and that’s all.  That is how close two people are when they love each other.  So, when you argue, do not let your hearts get distant; don’t use words that increase the distance between our hearts.

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Dances of India

 Dances in India are of two main branches, (i) Classical Dances and (ii) Folk Dances.  Classical dances are those which are based on ancient dance discipline or traditional form of dance and have rigid rules for presentation.  The main classical dances in India are:

Bharatanataym:  This dance is having its origin in Tamil Nadu and it is a temple dance performed at the time of worship.

 

 

Kathakali:     This is the dance cum drama of Kerala, which is usually performed in the open and lasts the whole night.   

Kathak:         This is the principal classical dance of North India in which the emphasis is on foot work and swift movement of the body.

Kuchipudi:   This is the dance cum drama from Andra Pradesh. The performance usually begins with some stage rites, after which each of the characters arrive on stage and introduces himself with a daru (a small composition of song and dance) to introduce identity, establish the rule of spirit, the character in the drama.

Manipuri:      This is the dance which is performed by the people of north-east especially by people from Manipur.  It involves movement of head, hand and foot in harmony and is performed by men and women together.

Mohini Attam:          This the classical dance from Kerala. The dance involves the swaying of broad hips and the gentle movements of erect posture from side to side. This is reminiscent of the swinging of the palm leaves and the gently flowing rivers which abound Kerala, the land of Mohiniyattam.

Odissi:                       This is the classical dance from Odisha. The marginal figures of dancers show women in poses and movements similar to the distinctive style of Odissi.

Chakiarkoothu:       This is the classical dance is believed to be from Kerala.

Ottam Thullal:          This is a solo classical dance from Kerala, also known as poor man’s Kathakali.

Yakshagana:           This is the classical dance cum drama from Karnataka.

The State Wise Popular Folk Dances of India

Folk Dances, which are also called tribal dances in some states, are as follows as per state wise where these are generally performed during festive seasons.

STATE	DANCE(s)
ASSAM	Ankia Nat, Ojapali, Bihu
ANDHRA PRADESH	Kottam, Veethi Bhagavatam
BIHAR	Jata-Jatin, Bidesia
GUJRAT	Garba,Bhavai,Dandiya Ras,Rasila,Tippani
HARYANA	Swang(Saang)
HIMACHAL PRADESH	Gidda Parhaun,Kayanga,Luddi,Munzra,
JAMMU & KASHMIR	Chakri, Hikat, Rauf
KERALA	Chavittu Natakam Chirav,Kaikoti Kallikoodiyattam, Krishnanattam, Medivettu, Tappatri Kali, Theyyam
MADHYA PRADESH	Lota,Macha,Pandvani
MAHARASHTRA	Dahikala,Lavani,Lezim,Tamasha
MANIPUR	Lai Haroba, Maha Rassa,
MIZORAM	Chiraw (Bamboo Dance)
ODISHA	Bahaka Wata, Dandanata
PUNJAB	Gidda, Bhangra
RAJASTHAN	Bhavai, Chamar Ginad, Kayanga  Bajavanga, Khayal,  Jhulan Leela, Gangore
UTTAR PRADESH	Kumaon, Nautanki, Karan, Kajri, Chappeli
WEST BENGAL	Chhau, Jatra, Kathi,
TAMIL NADU	Kummi, Therukkoothu, Kolattam

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