Term Insurance Plan - Good or Bad Decision

Term Insurance is a contract between Insurance Company and insured person that primary provides guaranty to pay insurance amount only in case of demise of secondary to their Nominee, If all term & condition full-filed. If demise incident does not happen then company are not liable to pay. So, before taking Term Insurance Plan, person should think and analyze the utility of it. 

Term Insurance takes your risk at very low premium with certain term & condition. Like other insurance and investment alternatives it is also simple and easy. You know the premium amount you have to pay till the policy term and insurance amount your nominee will get if unfortunate demise will happen. 

For taking term insurance to ensure your family's financial future in your absence there are certain things to know before.

First understand the Term Insurance, it is designed for providing a pay-out only in case of demise. It is not an investment option because it would not give you any return. It is not for you, it is for your family member. Only good things about it that it cover high risk amount with very low premium cost. 

Analyze your requirement, in case you have any loan outstanding (like home loan) and don't want to forward this burden on your family member's in your absence then it is the only best option for you. Certainly you do not want your family to compromise on their lifestyle or find difficulty in sustaining a good life in your absence. It will be big favour by getting yourself a Term Insurance Cover.

Also Read : Term Insurance Plan Pure Life Insurance

First choose the Insurance Amount you think should be enough for your family to get normal life in your absence. Now second option comes that what will be premium/installment amount. There are lot online site who will help you to compare the premium instantly. It can be vary from company to company. The best thing about term insurance  plans is that these plans  are designed to charge the same premium throughout the policy term, even though the risks increases when you grow old. So, it is better to have it in early age and reassess it in every 5 years and if fills & can able to pay premium, you can increase the cover amount you require.

Secondly before selecting any insurance company check their Claim Settlement Ratio at IRDA website. The insurance company could have rejected few claims but you should check the causes behind such decisions. Insurance company will not process a claim which is fraudulent. Choose the best one. Read Term and Conditions & understand the Exclusions carefully. It is important to know before purchase it so that you don't leave your dependents with various issues relating to your term plan in your absence.

Selecting Nominee is very important & crucial job while purchasing insurance plans. It should be a person who shall need your money the most after your passing. It can be your spouse, your parents or your child. It is advisable to keep your beneficiary informed about the key features of the policy and any changes that you decide to make about.

If you consider the above mentioned things when you are getting term insurance plan, you certainly will find the right plan for yourself.

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Alerts! LIC To Their Policy-Holder

There are billions of people in India who have taken Life Insurance from Life Insurance Corporation of India. People have strong faith on this Corporation. So, there are lot of fraud/cheating happen with LIC policyholder by some cheater. Hence Corporation guides/ alert their policy holder in time to time about these kinds of frauds and ask to be safe with advisory.

This advisory is for all those policy holder who have any kind of policy taken from Corporation or willing to have in future.

1. Corporation always suggest to get register & enroll their policy on their portal www.licindia.in to check status with other information and pay premium online.

2. If you are paying premium thru cheques then issue infavour of "Life Insurance Corporation of India" and make it "Account Payee Only" by drawing two parallel line on top left corner or  above cheques number bar. Do not issue your cheque in other name to pay your LIC premium.

3. Before signing policy document you should read the form properly. Don't sign it in hurry. This will    keep you safe in future.

4. Do not hand over your Original Policy documents to any agent or person. Corporation do not authorise any person to collect Original Policy Document.

5. Beware ! from fictitious offers thru phone calls. It does not guarantee that if any unknown person saying that they calling from LIC then they must be from LIC. Do not entertain online policy payment on their suggestion. Check and be confirm before doing this.

6. Corporation never calls for Bonus or its due installments. They did not hire any recovery agent for collecting this.

7. LIC advice you always your net banking to pay premium thru its web portal.

For any other info please call us at :: 9958781151.

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With Profit And Without Profit Plans

Many people who have their life insurance policy get notice that their plan is may be "With Profit" or "Without Profit". Some time they thought why certain plans are categorized like this. And wiling to ask their agent. Here are the answer.

An Insurance Policy can be "With" or "Without" profit. Life insurance companies from time to time declare bonus (profit share) on their plans. 

An insurance plans in which this bonus/profit share is passed on to the policy holders is called a "with profit" plan. Bonus are allotted after certain periodical valuations to the policy and are payable with the maturity amount.

But  in a "without profit" plan this bonus is not passed on to the policy holders. Therefore, the premium rate charged for a "with profit" plan is little higher than that for a "without profit" plan. 

The percentage of bonus may vary from one policy to another depending on the type, term and the premium of the respective policy, amount other considerations.

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Difference Between Power of Attorney And Letter of Authority

A Letter of authority works for simple tasks. It can be used for getting routine work done. But when there are big transactions, it it better to get power of attorney because it sets out the manner in which the activity is to be done. A letter  of authority may or may not specify how an activity is to be carried out. A power of attorney is a notarized document and has an additional edge. A letter of authority is not an authenticated document. A letter of authority is a document under which one person authorizes another person to do a particular act. Hence it is used for very specific purpose. it can be for instance used for collecting or submitting documents on your behalf. Experts are unanimous that when large and proper transactions are to be carried out. you should opt for a power of attorney. A power of attorney can be of two types -  general and special power of attorney. Your power of attorney would be special if the appointment is made for a specified act or acts and general if it is made generally for certain acts, for e.g. representation before the income-tax department. Further your power of attorney could be irrevocable or revocable.

Also your power of attorney may or may not require registration. A power of attorney dealing with immovable property requires mandatory registration. For e.g. a power of attorney accompanied by a development agreement would mandatory be required to be registered. While the power to operate a bank accounts may not require registration. Recently a immovable properties, it was held by SC that General Power of attorney have no legal sanctity and immovable properties can be sold o transferred only through registered deeds.

POWER of Donor : - The person who appoints another to act on his behalf is known as the donor. For instance, if say, A is unwell and appoints another person B to act on his behalf then A is the donor and B is the holder. However both Letter of authority and Power of Attorney do not offer the donor the same power  to control activities of the holder. The difference between the two is in terms of the relationship between the entities involved. A letter of authority  usually depicts the relationship of a master and servant. Whereas  the attorney relation is more like that of a principal and agent. In the case of the latter, the  principal has the right to direct as to what act one is expected to perform whereas in the case of the former, a master has the right to direct "what" as well as "how" the work is to be done. The tasks that are specified in an Letter of Attorney are usually carried out under the supervision of the person bestowing the authority and the grantee has to confirm to all the reasonable orders in the course of that work, whereas in the case of a Power of attorney where is a greater scope for independence.

PRECAUTIONS :-  One should be very careful before handing over either documents, Letter of Authority or Power of Attorney to another person as one can do little  to prevent its misuse. This is because these documents especially the Power of Attorney, is accompanied by a ratification clause, which automatically results in vicarious liability.  This means that it makes the donor responsible for the acts of the holder. One of the key measures to avoid the misuse of an Letter of Authority or Power of attorney is to have clarity. You should be very specific in granting the power of attorney for two reasons, One is that your should know the powers that you are giving the other person and the second is that the person receiving the Power of Attorney should be know the scope of his powers. You must make clear the matters on which the holder can represent himself on you behalf.

REVOCATION OF POWER OF ATTORNEY: - You should specify the duration of the Power of Attorney and how it is to be revoked. You must also make it clear why you are giving the power of attorney. for example, if you are ill and have asked somebody to act on your behalf regarding property matters. You must state this in the Power of Attorney. It is better if you place limitations, Specify when your Power of Attorney will stand revoked and under what circumstances the document cab be used.

CANCELLATION OF DOCUMENT:- You should cancel the document be it the Letter of Authority or Power of Attorney. Once the work is complete. You can simply cancel a Letter of Authority by issuing a fresh one that states this clearly, "The revocation should be intimated to the people dealing with the person who has the letter of authority. There cannot be an irrevocable letter of authority. However in the case of Power of attorney, the procedure is more complex, if it is revocable, the document should mention the circumstances under which it can be revoked. Even if dose not do so, you can revoke it by executing a document, canceling it , if the power of attorney was registered you need a registered deed of cancellation.  It will be better if you put up a public notice in a newspaper stating that the power of attorney has been revoked. However this procedure is only possible if the Power of Attorney is revocable one. An irrevocable Power of Attorney should be made after due deliberation and is useful in circumstances when it needs to e operated upon after the death of the granter.

HOLDER'S RESPONSIBILITY : - Holder of an Letter of Authority or Power of Attorney should be aware of the task at hand as well as the purpose for which it is delegated and should act in conformity  with these two parameters in order to avoid trouble. " The holder of a letter of authority or Power of Attorney should be careful not to act beyond  the authority granted under the document. The supreme Court has said that the holder can act beyond  his authority only in cases of emergency, and if it is beneficial to the donor, in cases other than an emergency, if the holder acts beyond his authority, the aggrieved party, that is, either the donor or another affected party , can file a suit in a court of law.

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Do You Know Why LIC is Safe !!!

In 1956, when the life insurance industry was nationalized, Parliament directed the LIC to take the message of life insurance to every part of the country. It also directed the Government to guarantee the sums assured (including any bonuses declared) under all policies issued by, as well as those taken over by, the corporation (Sec.37 of the LIC Act).

In the Symbol of LIC Logo, there are two words.."Yogakshemam Vahamyaham" writtern in Sanskrit. This was said by Lord Shri Krishna to Arjun in Kurukshetra. It means" Your Security is My Responsibility."

Here is the proof that investment in LIC is fully secure by Central Government of India. As per Section 37 of LIC Act, "The Sum Assured by all Policies issued by the Corporation including any bonuses declared in respect thereof and, subject to he provisions contained in Section 14 the amount assured by all policies issued by an insurer the liabilities under which have vested in the Corporation under this Act, and all bonuses declared in respect thereof, whether before or after the appointed, day shall be guaranteed as to payment in cash by the Central Government" 

This is the proof why LIC is the king in insurance market. Why people of India trust more on it  than any other insurance company. You can compare here Monthly Business Report of IRDA. 

This is Trust by the People, for the People because in every PUBLIC there is LIC. No other company can guarantee you about your invested money. Can any ??

Can any company guarantee you if they become failure in insurance business that company or any other agency/governement on behalf of that company will return your all investment along with accrued bonuses.

In service of last 61 years LIC has given security to your love one in your absence about taking care by returning all investment along with accrued bonuses and other loyalty addition (if offered) or by insurance amount to the right nominee/heir. 

Over the last 60 years, the corporation has not only carried out this directive in both letter and spirit but also paid to the Government thousands of crores in the form of tax and dividend.

Read also THE INSURANCE LAWS (AMENDMENT) ACT, 2015

So, have trust and go with LIC. Call your trusted LIC Agent Pradip Roy 9958781151 / 8178662909 to book new policies. 

You can Download here LIC Act.

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Funny Investment Tips

On every investment site you will get lots of ideas about investment. Adviser or Planner will come with you some unique ideas and suggestions. 

Today I came with one funny investment idea.... don't take it serious, just have fun.

One smart man gets married  with well educated lady. That person always looking about proper & best investment Plan. After few days his wife come with an intelligent investment idea. She told her husband that after small calculation I can tell you where should invest your valuable savings.

Be honest ......

Just do some calculation step by step as given below...

Step 1:
Choose any number (your Lucky No.) from given below list of numbers...

1 - 2 - 3 - 4 - 5 - 6 - 7 - 8 - 9.

Step 2 :
Now Multiply by 3 to the Selected Number.

Step 3 :
Now Add 3 with the Result.

Step 4 :
Again Multiply it by 3 with the Result.


You will get Two Digit Number. Add both number. 

Now this number will advise you where you should invest your hard earned money from the given below list of best trusted investment option.

1.   Invest in Property
2.   Invest in Gold
3.   Invest in Bank Fixed Deposit
4.   Invest in Business
5.   Invest in Shares
6.   Invest in P. P. F. 
7.   Invest in N. S. C.
8.   Invest in Tax Saving Plans
9.   Handover to your Wife
10. Invest in Mutual Funds
11. Any Other Govt. Deposits 

Hope you have got it. You are wise and willing to invest now then follow above steps and enjoy a happy life. Getting any doubts do it again.  Have Fun....

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Register and Get Facility with LIC eService Portal

LIC has comes up with some new features with Lic’s e-service. You can register your policies at LIC portal with some simple steps and save lots of time.

Lic’s e-service is an initiative is to provide you with on demand service within a few clicks! You can now have many of the functionalities that were available only at branch office, Now it will be online at your fingertips. To avail this facility you have to get register as customer on LIC portal.

How to get Register on LIC Portal:

First you have to visit www.licindia.in  , click on the tab “New User “ , select your own USER ID & Password and provide all the other necessary information . Now you are a registered customer portal user.

LIC’s e-services portal for customers has come up with a lot of new facilities. Now if you register you can avail the following benefits: 

1.  Online Payment Facilities:

This facility provided to pay renewal premium dues, payment, repayment and loan interest due of loan through net banking, debit card, credit card, BHIM, UPI

2.   POLICY Schedule:

First page of policy bond which constitutes policy schedule will be displayed.

3.   Policy Status :

Basic detail of policy will be displayed such as plan, term, sum assured, date of commencement, first unpaid premium etc.

4.  Bonus Status :

     Total bonus accumulated under the policy will be displayed.

5.  Loan Status :

Present loan position will be displayed such as total loan outstanding under the policy, due up to which loan interest paid etc.

6.  Claim Status:

This option will display date of survival benefit (if any) or maturity benefit due under the policy during the policy term.

7.  Revival Quotation:

Revival quotation will be provided in case of lapse  policies.

8.  Premium Due Calendar:

Detail of premium due during the year (month wise) will be displayed.

9.  Premium Paid Certificate:

Individual policy – it provides history of premium paid under a single policy during the financial year.

Consolidated – it provides history of premium paid under all the registered own life policies of the user.

10. Claim History:

 This option will provide details of any claim paid under the policy with NEFT/  Cheque details, date of payment and amount of payment.

11.  Policy bond/proposal form image;

 Scanned image of the policy bond as well as proposal form will be displayed for enrolled  policies.

12.  Grievance registration:

Facility to register a complaint /grievance with insurer.

In future the benefits will further be enhanced. If you face any problem in registering, you may contact us/your Agent or to your nearest LIC Branch.

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