Wednesday, June 23, 2010
Tuesday, June 15, 2010
What should India be proud of?
We always say we should be proud to be India. But, we should also look upon what this India is consisting of!
Let us start our journey from pre-independence era.
Let us start our journey from pre-independence era.
- Gandhi wadi vs. Others:
- Mahatma Gandhi always exercised on truth, but when it came on loosing presidential post to Subhash Chandra Bose at Tripuri, Jabalpur in 1939. He was even ready for a party split. While the whole India is fighting for freedom. Now, if Pdt. Jawaharlal Nehru follow the same principle he becomes main culprit in split of India in 1947. Even not a decade past then from 1939.
- When Santanu Kirloskar approached Gandhiji during 1942 "Quit India" to replace manual charkah with a better charkha or mechanical charkaha, with full program to educate users and giving full service. He was rejected as the Charkha was not of Gandhiji's dream one.
- When Pakistanis were slaughtering Indians during separation 1948, Gandhi did "Satyagrah" to help Pakistanis with aids, now if a person of India suffering from the pain of separation shoots Gandhiji for the same. He becomes an anti Indian - the famous Nathuram Godse.
- As Subhash Chandra Bose defeated Gandhiji with a great margin, hence Gandhiji signed a treaty to treat this son of soil as trator. Contracting for submitting him in hands of Britain even live or dead.
Monday, May 31, 2010
The New Gate Keeper: Placement Consultants
The New Gate Keeper to your job hunting, the placement consultant. They say if you are misplaced by HR taking advantage of your situation, then you will not be eligible for further high thinking.
Follow the posting in Naukri.com and see can this be the criteria? I ask the same to HR Department of Breter Managings, When you are searching like this what is the probability of proper talent acquisition?
Further, think of a situation where a person in a start-up company which is growing in a good pace and drawing his salary @2% of turnover. If the mentioned value is achievable to him in a matter of few months, is it not a probable loss to the company? "A growing company person acquires knowledge faster than a stable big company", is a fact which cannot have a pinch of doubt.Follow the Advertize: ______________________________________________
Executive Assistant -[mgt cadre]- 5-8 yrs, MBA must, Real Est., Delhi.
1 Opening(s) Clients of Breter Managings. Plz read complete advt. before applying..
Summary
Experience: 5 - 8 Years
Location: Delhi
Compensation: Rupees 8,00,000 - 10,00,000 (If your salary is less than Rs. 8.00 lacs plz do not apply.) [else his commission or compensasion will be too less :( ]
Education: UG - Any Graduate - Any Specialization PG - MBA/PGDM - Any Specialization
Industry Type: Real Estate/Property
Role: EA to Chairman/President/VP
Functional Area: Corporate Planning, Consulting
Posted Date: 31 May
Desired Candidate Profile IF YOUR CURRENT SALARY IS LESS THAN RS. 8.00 LACS THEN PLZ DO NOT APPLY.
MBA from A+ or A grade college with 4-6 years of hardcore experience as Executive Assistant to CEO/MD/Director of a Company. DELHI-NCR CANDIDATES ONLY. Job Description
Candidates already working as Executive Assistant to Director/MD/CEO of organised Companies only shall apply for this position ASAP. WE ARE NOT LOOKING AT SECRETARIAL PROFILE BUT MANAGEMENT PROFILE. Keywords: Executive Assistant to Director- 5 - 8 years exp, from A+ MBA College, Real Estate, New Delhi. IF YOUR SALARY IS LESS THAN RS. 8 LACS THEN PLZ DO NOT APPLY.
Company Profile: Well know and established Real Estate Company.
Contact Details
Company Name: Clients of Breter Managings. Plz read complete advt. before applying..
Website: Not Mentioned
Executive Name: Vivek Verma
Address: Not Mentioned
Email Address: bretermgs@gmail.com
Telephone: +91-9810453720
Reference ID: EA/5-10/174/Delhi
__________________________________________________________
Views I need your comment on this type of talent acquisition is correct or wrong in purview of HR?
__________________________________________________________
Views I need your comment on this type of talent acquisition is correct or wrong in purview of HR?
Wednesday, May 19, 2010
Respect the Customer
http://www.samtrans.com/news_2010_stories_05-11.html
This is an nice story of CRM, where by respecting the customer without caring for his/ her origin and making him/ her a local celebrity.
Real Riders Tell the Real Story – SamTrans is the Way to Go
Four SamTrans customers are the stars of a new advertising campaign designed to recruit new riders by telling the public about the benefits of riding transit from a rider’s point of view. The customers represent just a few of the people who responded to a request for testimonials via the bus agency’s website.
People were asked to complete a brief survey describing why they like to ride the bus. “We wanted to know why people ride and what they think about SamTrans,” said Marketing Manager Patrick Boland. “There’s no more convincing testimony than from real riders.”
The four people who were selected for the campaign are being featured in larger-than-life-size ads on the outside of SamTrans buses, in a series of print ads in newspapers and on posters inside bus shelters.
The ads feature a color photo of the rider, with a SamTrans bus in the background and a catchy title for the type of rider they represent. The rider explains, in his or her own words, why he or she likes to take the bus.
Fiscal Minded: Margaret, an accounting assistant who usually rides her bike to work, likes to take Route KX to San Francisco International Airport. She said, “I have even modified my flight plans so that I can take the KX.” The bus serves a stop outside the baggage claim area at Terminal 1, on the center island at Terminal 2, and two stops on either end of the International Terminal. “There is no way to the airport that is easier or cheaper than SamTrans.”
Student: Eric, a San Mateo high school student who takes the bus to and from school, said “I also like the regional connections that I can make at the Hillsdale Shopping Center.” SamTrans bus stops are located near the Hillsdale Caltrain Station. Eric uses a Monthly Youth Pass, which gives him a substantial discount over the cash fare.
Green Commuter: Somnath uses SamTrans to get to work. He takes Route 359 from Foster City to the Millbrae Transit Center where he catches a shuttle to his job as an Information Technology consultant. “I like taking SamTrans because it gets me there on time and I can read the newspaper instead of negotiating busy Highway 101,” said Somnath. “But the best thing about SamTrans is that it helps the environment.”
Social Butterfly: Hilary, a Pacifica high school senior takes SamTrans Route 121 to and from school every day. She also takes SamTrans to see friends, to the mall or to see a movie. Hilary will be going to college in the fall and “I won’t have a car up there so I plan to take public transportation.”
The local campaign supports a nationwide effort to tell the story of public transportation’s many benefits in new ways to even wider audiences.
05/11/10
Media Contact: Christine Dunn, 650-508-6238
Saturday, May 15, 2010
Sunday, February 28, 2010
Insurance Agents: How They Cheat Customers?
What I want to discuss here is, being ignorant and following someone is like, inviting the doomsday for self. Who suffers if you follow a person's advice and it becomes counter productive, its you.
It is very intelligent to consider when a "PARKER" pen actually cost 500 rupees, and you pay 300 rupees for a pen which has the name “PARKER” on it, you are missing out something in the deal. Now, you go home and take out the pen to write. It comes as a shock to you when you see that this pen has a refill of Cello Gripper inside, which was a obvious case. Now, you start fuming and rush to the shop and yell at the shopkeeper. The shopkeeper says that he never guaranteed you about that pen and you never asked for a guarantee, and shows the board which reads “goods once sold cannot be returned or exchanged”.
You may say that this situation is an exaggerated one but this is somewhat very similar to what happens in the insurance industry when claims of policy holders are rejected.
All the organizations in the world have a rule book which decides the actions that all the employees have to perform and which differentiates DO’s and Don’ts and insurance companies are not an exception to this. Each and every country has a regulating body to monitor and regulate the insurance companies. In India the regulating body is IRDA (Insurance Regulatory & Development Authority). As it happens in almost all businesses even this industry has got some disputes and many times in the news paper we see policy holder suing his insurance provider. Now there may be many reasons for such a thing happening and one of the factor which is widely accepted and debated is the role of the insurance agents. There have been many reports where the insurance agent has not provided the complete information or unwanted information or misinformed the prospective customer in order to close the sales. As a result of this policy holder is at the receiving end when his claims are rejected by the insurance companies.
I am quoting a similar situation. A certain company's agent provide a person with a health cover because he can get about 40% commission on the same. The person took the same in anticipation of deteriorating health. He got admitted and undergone bypass surgery. When he asked for claim the company told, no claim for critical case unless the policy completes 4 policy anniversary. This information was also available with the agent but he suppressed the same to avail the 40% commission. This kind of problem happens because of failure of our Indian Judiciary to enforce the right to information act. The agent or the insurer cannot be made accountable as our Judiciary will keep on pending the case forever and the suffering person will loose much for in the process than at current situation.
Some of the reasons why the insurance agents lie to prospective customers are;
1. Judiciary system is delays justice to the extent of infinity.
2. Insurance agents are only bothered about commission that they will be getting once they get the deal done.
3. They do not have the full knowledge of the product that they are selling hence they end up giving false information to the customer.
4. They are afraid of the awkward questions that the customer can shoot at them while they are explaining about the product to customer.
5. They are under the pressure of their boss and are trying to reach the sales targets.
Although we have given some of the possibilities these cannot be generalized. It cannot be concluded that all the insurance agents are alike. There are some who have taken their work seriously and have come up in this field, but we cannot disagree with the fact that the attrition rate is pretty high in this particular field which leads to companies recruiting people very often and which results into this situation.
There are various situations during which the prospective customer is foxed by the insurance agent. In this article we will be discussing some of them and try to find out the ways by which you can overcome such situations.
1. Good morning sir, I’m calling from X company. Recently we have launched policy named…….
We all receive such calls day in and day out. The only answer should not be “I’m not interested”.
Ask your part, "You are direct form Company or Agent?". "Are you authorize to sell insurance over phone, if so who gave this authorization?". You must know no policy can be sold over phone as instructions from RBI. Have no doubts the lady speaking on the other side will have a very sweet voice but our concern is we are the ones who will be investing our hard earned money.
A basic rule put down by IRDA is that to sell a policy you should have passed the exam conducted by the same body. Now ask "Will you provide your IRDA license number for confirming your identity?", the person who is speaking over the phone may or may not have this certification and most of the times it's seen that they don't have any certification.
They will just try to persuade you to accept to the offer and collect all the details of your credit card number. Never ever share your credit card details with any person. If you give all the details you will blame yourself whole life for doing that. The person calling us may not have any certification, or from any company and hence experience and will not have the full knowledge of the policy that she is trying selling to customer. In the process they end up over promising or adding some of the features or do not give you the full details. It is not bad to invite someone for interaction, but remember it should not be your home.
2. Sir you will be getting back 5% of the premium amount in the first year….
This will be also one of the greatest lies and the most often heard by customers. Not only this along with this agents will add up sentences like “you are the selected one” or “our company is giving this offer only for this month” or “limited period offer”. Agents will say anything and everything to lure the customer which in reality will be far from the truth. This will be utter lie more than 90% of times. Ask to provide the full documents to study.
We know that insurance agents get commission for business that they have got for the company. Commission is decided on percentage basis. For example an agent sells a policy of 3,00,000 rupees and if the commission is 2% then he will be getting commission of 6000 rupees. Now if the premium that customer pays for the first year is 10,000 rupees and agent has told the customer that 10% of premium is refunded, and then the amount will be 1000 rupees. Agent won't mind paying one thousand when they can get 5000 rupees because of that one policy.
3. Sir you just need to sign here I will manage all the other documents…..
This is one of the dialogues which insurance agent says. He will take your sign and then move. But have you seen the offer document, illustration sheet, prospectus etc. if no then there is always a possibility that you may have missed something which would obstruct you from claiming the insurance money later. Enforce the Agent or representative to discuss on the clause where there is a chance of failure and write the same on illustration sheet. Never ever just sign on any piece of paper that the agent gives you. Go through all the documents that he is showing you make sure that you have read all the clauses that are printed and then only go ahead and sign.
4. Sir you pay the first premium now. I will get all the documents tomorrow and get your signature….
If the insurance agent tells you this then you may have a loud laugh at it. Do not agree to all that he says, Document first then if found correct and suitable then premium. As tomorrow he may come to you with documents in which it has been printed that your insurance cover is for 4 lakhs whereas on the previous day agent had said that it would provide cover of 6 lakhs. You may feel that these things will never happen, but there have been many instances where such cases have occurred and the policy holders have taken a legal action and have got justice (Thanks, to Judiciary to show some respect to their responsibility). This would take a lot of your valuable time and energy. That's the reason it is always better to prevent than to cure.
5. Sir this policy covers even you treatment charges…..
There are health insurance policies and they cover your treatment charges. Insurance agents sell these to customers and this is the only dialogue that they tell them. If the customer knows about insurances then he will surely ask agent about all the diseases that this particular policy covers, and in what terms. If in case you get any disease not covered under this policy then you will have to shell out your own money for the treatment. Hence it becomes very important for a customer to know of all the diseases that policy covers.
What is the use of taking a medical insurance policy which does not cover diseases such as diabetes, arthritis, brain tumor etc and your family has had a history of diabetes. It is very important because there are various policies such as Mediclaim, GIC’s medical insurances policies which does not cover a host of diseases ranging from asthma to hypertension. Customer should go through the fine print very carefully.
Another thing which is never disclosed, if a certain disease which is not covered leads to a disease which is covered, will make the policy void and you have to pay for the same.
Now-a-days idea of just opting for insurance cover is getting outdated. Due to want of earning more and more money and advancement of financial system there has come an investment which will take care of both your investment and insurance cover, its ULIPS (Unit Linked Insurance Plan). Let's look at some of the things that agents say while selling ULIPS.
6. Sir this plan will give guaranteed returns….
This sentence is used to attract the customers because agents know that customer will definitely fall for this sentence. One thing the customer needs to understand that there are more than ten investment avenues that will give you guaranteed returns, the reason why you have opted to invest here is you want more returns and insurance cover. Customer must inquire about the premiums paid to existing customers. If it's not suiting your investment objectives then opt for another plan or approach for another service provider.
7. Sir this plan has given 36% returns over last four years.
At the outside the percentage looks damn good and attractive for a customer to opt for this plan. But they have to be careful and not fall for the percentage figure, because what he is saying is the total returns given over the four years. Using a concept called as CAGR (Compounded Annual Growth Rate) you can easily say that agent is fooling you.
(1+i)4 = 1.36
1+i = 1.0799
i = .0799 or 7.99%
The truth is that the period that agent is referring here is lock in period and an investor can stop paying the premium even before three years. ULIPs are considered to be long term investments and agent is telling customer that he may stop paying premium after three years which is against the investment objectives.
Actually If you stop payments before lock-in there are charges to close the policy. Even some ULIPs provide you extra added benefits, which is actually returning back policy allocation charge, if the policy is continued after lock-in. Which you may loose by being myopic.
Some preventive steps that customers can take are
It is very intelligent to consider when a "PARKER" pen actually cost 500 rupees, and you pay 300 rupees for a pen which has the name “PARKER” on it, you are missing out something in the deal. Now, you go home and take out the pen to write. It comes as a shock to you when you see that this pen has a refill of Cello Gripper inside, which was a obvious case. Now, you start fuming and rush to the shop and yell at the shopkeeper. The shopkeeper says that he never guaranteed you about that pen and you never asked for a guarantee, and shows the board which reads “goods once sold cannot be returned or exchanged”.
You may say that this situation is an exaggerated one but this is somewhat very similar to what happens in the insurance industry when claims of policy holders are rejected.
All the organizations in the world have a rule book which decides the actions that all the employees have to perform and which differentiates DO’s and Don’ts and insurance companies are not an exception to this. Each and every country has a regulating body to monitor and regulate the insurance companies. In India the regulating body is IRDA (Insurance Regulatory & Development Authority). As it happens in almost all businesses even this industry has got some disputes and many times in the news paper we see policy holder suing his insurance provider. Now there may be many reasons for such a thing happening and one of the factor which is widely accepted and debated is the role of the insurance agents. There have been many reports where the insurance agent has not provided the complete information or unwanted information or misinformed the prospective customer in order to close the sales. As a result of this policy holder is at the receiving end when his claims are rejected by the insurance companies.
I am quoting a similar situation. A certain company's agent provide a person with a health cover because he can get about 40% commission on the same. The person took the same in anticipation of deteriorating health. He got admitted and undergone bypass surgery. When he asked for claim the company told, no claim for critical case unless the policy completes 4 policy anniversary. This information was also available with the agent but he suppressed the same to avail the 40% commission. This kind of problem happens because of failure of our Indian Judiciary to enforce the right to information act. The agent or the insurer cannot be made accountable as our Judiciary will keep on pending the case forever and the suffering person will loose much for in the process than at current situation.
Some of the reasons why the insurance agents lie to prospective customers are;
1. Judiciary system is delays justice to the extent of infinity.
2. Insurance agents are only bothered about commission that they will be getting once they get the deal done.
3. They do not have the full knowledge of the product that they are selling hence they end up giving false information to the customer.
4. They are afraid of the awkward questions that the customer can shoot at them while they are explaining about the product to customer.
5. They are under the pressure of their boss and are trying to reach the sales targets.
Although we have given some of the possibilities these cannot be generalized. It cannot be concluded that all the insurance agents are alike. There are some who have taken their work seriously and have come up in this field, but we cannot disagree with the fact that the attrition rate is pretty high in this particular field which leads to companies recruiting people very often and which results into this situation.
There are various situations during which the prospective customer is foxed by the insurance agent. In this article we will be discussing some of them and try to find out the ways by which you can overcome such situations.
1. Good morning sir, I’m calling from X company. Recently we have launched policy named…….
We all receive such calls day in and day out. The only answer should not be “I’m not interested”.
Ask your part, "You are direct form Company or Agent?". "Are you authorize to sell insurance over phone, if so who gave this authorization?". You must know no policy can be sold over phone as instructions from RBI. Have no doubts the lady speaking on the other side will have a very sweet voice but our concern is we are the ones who will be investing our hard earned money.
A basic rule put down by IRDA is that to sell a policy you should have passed the exam conducted by the same body. Now ask "Will you provide your IRDA license number for confirming your identity?", the person who is speaking over the phone may or may not have this certification and most of the times it's seen that they don't have any certification.
They will just try to persuade you to accept to the offer and collect all the details of your credit card number. Never ever share your credit card details with any person. If you give all the details you will blame yourself whole life for doing that. The person calling us may not have any certification, or from any company and hence experience and will not have the full knowledge of the policy that she is trying selling to customer. In the process they end up over promising or adding some of the features or do not give you the full details. It is not bad to invite someone for interaction, but remember it should not be your home.
2. Sir you will be getting back 5% of the premium amount in the first year….
This will be also one of the greatest lies and the most often heard by customers. Not only this along with this agents will add up sentences like “you are the selected one” or “our company is giving this offer only for this month” or “limited period offer”. Agents will say anything and everything to lure the customer which in reality will be far from the truth. This will be utter lie more than 90% of times. Ask to provide the full documents to study.
We know that insurance agents get commission for business that they have got for the company. Commission is decided on percentage basis. For example an agent sells a policy of 3,00,000 rupees and if the commission is 2% then he will be getting commission of 6000 rupees. Now if the premium that customer pays for the first year is 10,000 rupees and agent has told the customer that 10% of premium is refunded, and then the amount will be 1000 rupees. Agent won't mind paying one thousand when they can get 5000 rupees because of that one policy.
3. Sir you just need to sign here I will manage all the other documents…..
This is one of the dialogues which insurance agent says. He will take your sign and then move. But have you seen the offer document, illustration sheet, prospectus etc. if no then there is always a possibility that you may have missed something which would obstruct you from claiming the insurance money later. Enforce the Agent or representative to discuss on the clause where there is a chance of failure and write the same on illustration sheet. Never ever just sign on any piece of paper that the agent gives you. Go through all the documents that he is showing you make sure that you have read all the clauses that are printed and then only go ahead and sign.
4. Sir you pay the first premium now. I will get all the documents tomorrow and get your signature….
If the insurance agent tells you this then you may have a loud laugh at it. Do not agree to all that he says, Document first then if found correct and suitable then premium. As tomorrow he may come to you with documents in which it has been printed that your insurance cover is for 4 lakhs whereas on the previous day agent had said that it would provide cover of 6 lakhs. You may feel that these things will never happen, but there have been many instances where such cases have occurred and the policy holders have taken a legal action and have got justice (Thanks, to Judiciary to show some respect to their responsibility). This would take a lot of your valuable time and energy. That's the reason it is always better to prevent than to cure.
5. Sir this policy covers even you treatment charges…..
There are health insurance policies and they cover your treatment charges. Insurance agents sell these to customers and this is the only dialogue that they tell them. If the customer knows about insurances then he will surely ask agent about all the diseases that this particular policy covers, and in what terms. If in case you get any disease not covered under this policy then you will have to shell out your own money for the treatment. Hence it becomes very important for a customer to know of all the diseases that policy covers.
What is the use of taking a medical insurance policy which does not cover diseases such as diabetes, arthritis, brain tumor etc and your family has had a history of diabetes. It is very important because there are various policies such as Mediclaim, GIC’s medical insurances policies which does not cover a host of diseases ranging from asthma to hypertension. Customer should go through the fine print very carefully.
Another thing which is never disclosed, if a certain disease which is not covered leads to a disease which is covered, will make the policy void and you have to pay for the same.
Now-a-days idea of just opting for insurance cover is getting outdated. Due to want of earning more and more money and advancement of financial system there has come an investment which will take care of both your investment and insurance cover, its ULIPS (Unit Linked Insurance Plan). Let's look at some of the things that agents say while selling ULIPS.
6. Sir this plan will give guaranteed returns….
This sentence is used to attract the customers because agents know that customer will definitely fall for this sentence. One thing the customer needs to understand that there are more than ten investment avenues that will give you guaranteed returns, the reason why you have opted to invest here is you want more returns and insurance cover. Customer must inquire about the premiums paid to existing customers. If it's not suiting your investment objectives then opt for another plan or approach for another service provider.
7. Sir this plan has given 36% returns over last four years.
At the outside the percentage looks damn good and attractive for a customer to opt for this plan. But they have to be careful and not fall for the percentage figure, because what he is saying is the total returns given over the four years. Using a concept called as CAGR (Compounded Annual Growth Rate) you can easily say that agent is fooling you.
(1+i)4 = 1.36
1+i = 1.0799
i = .0799 or 7.99%
Once you dissect the figures you get to know that all he is saying that plan is giving you returns of 7.99% per year. Most of the investment avenues assure you more than this one. So why will you go for ULIP, with inherent Market Risk in it.
Study shows market over a period of 10 years gives 17-18% return and hence last four year is nothing, some day it will fall and will rise again moving to average of 17-18% again.
8. Sir you can stop paying premium after three years….The truth is that the period that agent is referring here is lock in period and an investor can stop paying the premium even before three years. ULIPs are considered to be long term investments and agent is telling customer that he may stop paying premium after three years which is against the investment objectives.
Actually If you stop payments before lock-in there are charges to close the policy. Even some ULIPs provide you extra added benefits, which is actually returning back policy allocation charge, if the policy is continued after lock-in. Which you may loose by being myopic.
Some preventive steps that customers can take are
1. Make your agent explain the fine print to you.
a. Fine print contains all the terms and conditions and if the agent can explain you all that and if you are satisfied then go ahead with the plan.
b. Customers have the right to learn all the properties or characteristics of the products that they have been offered.
2. Best thing is to buy the policy from an experienced or knowledgeable agent (knowledgeable may not be experienced but it is your requirement to extract the knowledge not milk on experience)
3. Note down all the documents that have to be produced by the customer in order to claim the policy money.
4. Remember if you don't get justice here or feel that you have been cheated by the company or agent then you can go to the redressal committee.
Thank you and Regards
Sandip De
Business Analysis and Development Consultant
Ambidextrous,
Kolkata-34, West Bengal, India
Sunday, February 21, 2010
Insurance: Its not a Ghost!!!!
Insurance
Insurance is an instrument which covers the risk. Insurance is for everyone and all kinds of people buy insurance. The insurance means paying someone i.e. insurance company, we are transferring risk on us to on them, so that they take on our risk. The payment made for the purpose is called premium.
The various categories of insurance are;
- Life insurance : provides insurance benefit when person insured dies
- Health insurance (Mediclaim) : covers certain medical expenses and prescription medications
- Property insurance: pays a benefit if the property is damaged
- General insurance: includes fire insurance, loss of income insurance
Insurance Need Analysis
Insurance is the need for everyone because everyone is exposed to some or other risk. But, everyone needs different kind of insurance. Let us take up different cases and analyze their insurance needs
Types of Risk for which a Subject is insured
- Dying Early. (Your Dependents suffers)
- Living too Old. (You as Surviver suffers)
Insurance considerations for an unmarried individual having no dependent:
If the individual is single with no dependent then premature death will not impact the financial obligation of that person's family so he does not require life insurance. He can take health insurance and other general insurance as per his requirement.
Insurance considerations for an unmarried having dependents:
The person who is single but has dependent on him has to look forward for the following issues in case of any unfortunate event.
- Loss of income
- Health care coverage
- Repayment of debt
- Other people who rely on him
- Life insurance coverage
Insurance considerations for families with kids:
If the family includes spouse and young children, an individual has a lot to think about. The individual will need to consider protecting the spouse and children if something should happen to both parents at the same time.
- Living expenses for children
- Healthcare for the families
- Education of the children
- Family events, transportation expense and household support
Amount of life insurance should individual own:
According to the rule of thumb insurance amount should be eight to ten times (8x to 10x) of the gross annual income of an individual. It is simple to apply and easily understood by the people.
Types of Life Insurance
- Term life insurance
- Whole life policy
- Endowment policy
- Unit linked policies
Term life insurance
Term plan provide life insurance protection for a specific period of time or term. The beneficiary gets the benefit if the insurer dies during the coverage period. A person receives nothing if he does not die during the term. (Some Insurance companies do return back the entire money in fractions and term served)
- Different types of term plan are
- Level term insurance
- Decreasing term insurance
- Increasing term insurance
- Renewable term insurance
- Convertible term insurance
- Term insurance with return of premium
Whole life policy
A whole life policy is an insurance cover against death, irrespective of when it happens. Policy holders pay the premium until his death.
Endowment policy
This policy covers the risk with financial savings. It is most popular policies in the world of life insurance. In an Endowment Policy, the sum assured is payable (back) even if the insured survives the policy term.
Unit linked policies
These policies have two components, expenses (including mortality) and savings like an endowment policy. The saving part is invested in the equity and debt as chosen by the policy holder and returns are based on the performance of such portfolio.
Thank you and Regards
Sincerely,
Sandip De
Business Analysis and Development Consultant, Ambidextrous
Subscribe to:
Posts (Atom)