IRDA comes up with Electronic Insurance policies

You can convert your existing life insurance policies into electronic form and buy your new life insurance policies in electronic form once the IRDA completes its Pilot project from July 1 to August 31. You have to open an e-Insurance account (eIA) to avail this. You can open this eIA either by approaching your Insurer or other Insurance Repositories like CAMS, Karvy, SHCIL, NSDL. The benefits of an eIA is that you shall maintain all your Insurance policies in a single account and also you need not maintain any hard copy of your policies. Opening this eIA account doesnot incur any charge and its completely free.

Free Insurance for RuPay Card Holders

Good News to those who receive RuPay cards: HDFC ERGO is providing an insurance cover of 1 Lakh Rupees for the RuPay card holders. The premium for this will be paid by National Payments Corporation of India (NPCI) and not by the card holder. So, in a card holder's view, this is a Free insurance provided through RuPay card. This insurance can be claimed in case of Death or permanent disability to the card holder.

When buying a Term Insurance, should we opt for a longer term or shorter term ?

Term Insurance is the purest form of insurance without any investment factor unlike the other investment with insurance products. So, it will be never tempting to buy a Term insurance unless we understand the real purpose and necessity of a term insurance. Term insurance saves our dependents in our family from a financial crisis if something unfortunate happens to our life. The cost of a term insrance plan usually increases with the increase in the term of the policy ie., number of years for which we need to be covered under the insurance plan. So, most us will try to get insured with the minimum possible years. But this mindset needs to be changed, as there will be a lot many constraints in buying a term insurance after the first plan closes. Consider a person of age 30 yrs takes a term plan for 20 yrs. At his age of 50, this plan would come to a closure and the life cover ends. Now, at the age of 50, if he realizes that he needs life cover for 10 more yrs and if he looks for buying a new plan. Now the cost of insurance will be extremely high and also Insurance companies will be having a maximum age limit upto which insurance can be issued.So, to better avoid this risk its always recommended to take a initial life cover for maximum term. Usually term policies will be given by companies ranging from 5 yrs to a maximum of 35 yrs. 

LIC Premium and Maturity Calculator at PolicyTray.com

Hope you had gone through my previous post on what had actually triggered me to come up with PolicyTray.com . What was actually missing the online Insurance space is the clear picture on the returns that  a policy holder will be getting at the end of the policy term might be 15 - 20 yrs. There will be many product brochure which will be giving  a presentation based on some assumed returns calculation say 6% or 8%. But how about the previous performance of these products.? Was it 8% or 6% in the past year ? This was a open question. So, this was solved with the LIC Premium and Maturity Calculator on LicpoliZy.com. The maturity returns for the investment plans are calculated here based on the past 10 yrs Bonus history of LIC. The calculator above will be providing the Maximum and the minimum maturity, which is the maximum and the minimum returns provided by LIC in the past 10 yrs.

The idea behind PolicyTray.com

I have been a regular online shopper. Whether I buy products or not, I usually spend time on the online shopping sites looking at the various products on each of the portals. Like most of us, I feel lazy to visit a brick and mortar shopping mall and shop things. I can say, I am addicted to online shopping as i use the online mode for purchasing even safety pins :P . One fine day in January 2013, as it was nearing the end of the financial year, a thought about losing tax struck my mind. I was planing to invest some money in LIC Life Insurance policy to save some tax. So i browsed through many of the Insurance sites and i was able to get a rough idea on the available Insurance schemes but nowhere i could get a clear picture on how much i should be investing and what is the actual benefits i will receive from those schemes. I felt pity on the 125 million internet users in India, as India is one of the fastest growing Internet market but we are not able to get a picture on the products of the biggest Life Insurer in India. This gave the birth of the fastest growing Online Life Insurance portal - PolicyTray.com