The Concept and Importance of a Life Insurance Policy.

bhartiaxa · 01-03-2009, 02:48 AM

Deleted by user

JRoot · 01-03-2009, 03:09 AM

Originally Posted by bhartiaxa

Life Insurance quotes are the prices at which life insurance policies are proposed to be sold and vary from company to company or individual to individual, mainly depending on the term of the policy. Other important issues that address the quotes are age and income, the physical features and family details of the insurer

This is awesome. I'm stealing it.

Winter · 01-03-2009, 07:47 AM

Originally Posted by bhartiaxa

Life Insurance is considered to be an important part of an individual’s investment portfolio, not necessarily to accumulate wealth, but to feel financially secure. Other then this when you opt for a life insurance policy you enjoy other benefits also, like tax-deduction options, and in some cases long term capital gains. What is important when you opt for a policy is the term and plan related to that particular policy. Always remember Life Insurance is primarily made keeping your family and those who are dependent on you in mind. There are various companies that would ask you to opt for a policy from them, and incase if you are an amateur investor and try to push things in a hurry, you might end up settling for a wrong deal. Here, we will discuss on a few guidelines that an individual should follow prior to opting for a policy or while assessing an insurance plan.

When you decide to invest in Life Insurance, it is imperative that you understand your financial status, your future liabilities & commitments and then opt for a policy that would suit your needs in the longer run. Insurance is by and large regarded as one of the best savings cum investing scheme. Students who earn while studying and those who take up full time employment after their studies see insurance as a profitable scheme to regulate their savings. Important factors that an individual needs to understand prior to opting for Life Insurance Policies are 1) Requirements, term (duration) and premium to be paid 2) Nature and benefits of the policy in the longer run & 3) Coverage of the policy. The need and income of an individual helps him decide the amount of Life Insurance Premium. The insured should also think about the benefits that he and / or his nominee will receive before deciding to go for a particular policy. Life insurance covers the risks of loss due to the death of the insurer. Hence it is advisable that before you purchase the policy; take a look at the plan of the policy in detail. Most of the Life Insurance Companies would provide you with a ULIP (Unit Link Insurance Plan). Consulting an expert or your friends, & other reliable sources like the internet, that would provide accurate data helps. Analyzing the different categories of insurance, conducting a proper market research, checking your financial constraints where you ensure that you pay your insurance premiums simultaneously is important.

When you decide to invest in Life Insurance, it is imperative that you understand your financial status, your future liabilities & commitments and then opt for a policy that would suit your needs in the longer run. Insurance is by and large regarded as one of the best savings cum investing scheme. Students who earn while studying and those who take up full time employment after their studies see insurance as a profitable scheme to regulate their savings. Important factors that an individual needs to understand prior to opting for Life Insurance Policies are 1) Requirements, term (duration) and premium to be paid 2) Nature and benefits of the policy in the longer run & 3) Coverage of the policy. The need and income of an individual helps him decide the amount of Life Insurance Premium. The insured should also think about the benefits that he and / or his nominee will receive before deciding to go for a particular policy. Life insurance covers the risks of loss due to the death of the insurer. Hence it is advisable that before you purchase the policy; take a look at the plan of the policy in detail. Most of the Life Insurance Companies would provide you with a ULIP (Unit Link Insurance Plan). Consulting an expert or your friends, & other reliable sources like the internet, that would provide accurate data helps. Analyzing the different categories of insurance, conducting a proper market research, checking your financial constraints where you ensure that you pay your insurance premiums simultaneously is important.

Ideally all life insurance companies invest the insurance premium funds in the various types of projects meant for developments and attractive returns. This project varies from government funded bonds to private companies. As an investor and depending upon your risk tolerance you can divide your investment funds in various modes which can be Balance, Maximizer, and Minimizer. Balance fund manager will invest your fund equally in government sector bonds as well as in private sector. In Maximizer mode your complete fund is invested in private equity market, which completely depends on market conditions. This fund at times may give you unexpected results and at times may even ruin your principal amount. In the last type of investments the fund is completely engaged in government bonds, wherein risk is almost null with assured returns.

Like other investment modules Life Insurance also has advantages and disadvantages. The prime advantage is financial security for the obvious reasons. It helps facilitates economic movements. Life insurance companies collect premiums from multiple investors hence gathering large funds. This money is used to finance trade and other financial development activities. Last but not the least it helps in reduction of tax payments. Policy holders are entitled to claim income tax exemptions for paying the premiums. The amount and the extent to which they are allowed depends on other factors like the persons income and if the insurer is a private player or run by the state. Drawbacks include incompetent facilities as all Life Insurance Companies are not able to provide the exact kind of life insurance policy as desired by consumers. Moreover the services of insurance agents could sometimes do more bad than good. Some of them try to convince their clients to invest more or to choose certain policies which are not much beneficial to the clients. A person will find himself in trouble if he invests more than what is actually required. But as the number of advantages out numbers the disadvantages, investing in Life Insurance is always considered to be a good move.

Another important factor that needs attention during the framing of the policy is Life Insurance Quotes. Life Insurance quotes are the prices at which life insurance policies are proposed to be sold and vary from company to company or individual to individual, mainly depending on the term of the policy. Other important issues that address the quotes are age and income, the physical features and family details of the insurer. The time through which an insured pays the premium for the policy is called Life Insurance term. On a general basis, there are no standard premiums as far as term insurance is concerned. A person can decide the amount to be paid on the basis of his requirements in terms of coverage and affordability in terms of finance. As of now the top 5 life insurance companies in India are Reliance Life Insurance, HDFC standard Life insurance, Bharti-axa life insurance, ICICI Prudential life and off-course LIC India. The following companies were considered after being judged on parameters such as the insurance quotes, the term that the insured had to pay the premium for, the cover that the policy was covering, etc, etc. All in all getting an insurance done for yourself at the earliest, once you start earning is an excellent way to get your financial future secured.

I am going to have all of this printed on the backside of my business cards.

somarco · 01-03-2009, 08:35 AM

I am going to have all of this printed on the backside of my business cards.

Either you have very large cards, or you sell magnifying glasses on the side . . .

As for the initial premise that life insurance is an investment, I personally disagree. But to each their own.

al3 · 01-03-2009, 11:44 AM

This was a really good piece by "bhartiaxa". I was trying to see if he or she was the original author, which it looks like he or she is. I won't "out" his or her name in public as that seems to be a no-no on this board (although I AM against anonymous posters.) However the OP has written many, many good articles on the life industry's products. I don't know why the OP wants to remain cloaked since he or she is easy to find and has nothing (from his/her writing) to hide.

I've not known too many agents who can write as clearly as this poster.

The link to the poster sends you to: Life Insurance Company | Bharti AXA Life Insurance India

From About Bharti Axa Life Insurance Company

Bharti AXA Life Insurance is a joint venture between Bharti, one of India’s leading business groups with interests in telecom, agri business and retail, and AXA, world leader in financial protection and wealth management. The joint venture company has a 74% stake from Bharti and 26% stake of AXA.

The company launched national operations in December 2006. Today, we have over 5200 employees across over 12 states in the country. Our business philosophy is built around the promise of making people "Life Confident".

As we expand our presence across the country to cater to your insurance and wealth management needs with our product and service offerings, we continue to bring 'life confidence' to customers spread across India. Whatever your plans in life, you can be confident that Bharti AXA Life will offer the right financial solutions to help you achieve them.

I look forward to more articles like this. It's nice to have someone who looks to me like a professional writer as well as a professional agent. (I thought I was the only one

)

HealthGuy · 01-04-2009, 10:29 PM

Al the Antagonizer can't help himself from stirring the pot...how about a cabinet position for you in the Obama administration - there you could banter all you want and maybe then someone would listen to you. You are soooo professional, the rest of us on this board are so 'beneath' you. Pleassssseeeee...

HomeService · 01-04-2009, 10:40 PM

Life insurance is not an investment. Insurance is insurance, just like car insurance -it is not an investment. You pay a premium. That premium buys peace of mind. Now, certain life insurance contracts build cash values, still not an investment.

BiggitySwat · 01-05-2009, 12:24 AM

Originally Posted by HomeService

Life insurance is not an investment. Insurance is insurance, just like car insurance -it is not an investment. You pay a premium. That premium buys peace of mind. Now, certain life insurance contracts build cash values, still not an investment.

Life insurance is an investment into your beneficiaries - and they just won't see any % returns until you croak

Tomas · 02-25-2009, 10:34 PM

OMG, more believers that bahtiaxa is a genuine writer

His posts are for SEO, just check his other posts. Disable his signature links and links in the text and you will notice that posts from him will stop... lol

dgoldenz · 02-25-2009, 10:52 PM

Originally Posted by al3

I've not known too many agents who can write as clearly as this poster.

I look forward to more articles like this. It's nice to have someone who looks to me like a professional writer as well as a professional agent. (I thought I was the only one )

There are quite a few grammar mistakes and ways the article could be improved.....just saying.

ProsperSBC · 03-02-2009, 12:56 PM

Originally Posted by HomeService

Life insurance is not an investment. Insurance is insurance, just like car insurance -it is not an investment. You pay a premium. That premium buys peace of mind. Now, certain life insurance contracts build cash values, still not an investment.

It is a savings, just like a savings account is not an investment. LI is the most effiecient way to to save money, not spend money for oppurtunties before age 59.5. Compare it apples to apples to CDs Savings accounts and money markets. People that compare it to investments are ridiculus because it has guarantees and investments do not. But when its compared to savings vehicles it shines clearly. Oh and in all my experience a savings account is not really a saving account, its a deferred spending account.
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Originally Posted by BiggitySwat

Life insurance is an investment into your beneficiaries - and they just won't see any % returns until you croak

My cash values are up. How are your stocks doing? LOL

dgoldenz · 03-02-2009, 01:43 PM

Originally Posted by ProsperSBC

It is a savings, just like a savings account is not an investment. LI is the most effiecient way to to save money, not spend money for oppurtunties before age 59.5. Compare it apples to apples to CDs Savings accounts and money markets. People that compare it to investments are ridiculus because it has guarantees and investments do not. But when its compared to savings vehicles it shines clearly. Oh and in all my experience a savings account is not really a saving account, its a deferred spending account.
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My cash values are up. How are your stocks doing? LOL

What? What happens if the cost of insurance is raised or the interest rate cut, or both? There goes your savings....life insurance is NOT a savings vehicle and it is NOT an investment.

Rainelli · 03-02-2009, 07:17 PM

I never knew this but thanks for posting it here,looks like I forgetting something,I have an insurance before but when I moved and stop paying it,it seems to disappear without further notice.

insuranceexec · 03-02-2009, 09:24 PM

Originally Posted by Rainelli

i never knew this but thanks for posting it here,looks like I forgetting something,I have an insurance before but when I moved and stop paying it,it seems to disappear without further notice.

Huh?

xrac · 03-02-2009, 09:51 PM

".........It’s easy to laugh at our irrational fears, especially as we age. But the current threat to boomer retirement isn’t at all funny. The bedrock of any successful retirement plan and lasting financial legacy is effective risk management through the use of insurance. It’s considered the first level of the financial planning hierarchy of needs. Hell, the American College (until a recent curriculum change) began its CFP, CLU and ChFC courses of study with Fundamentals of Insurance for Financial Planning. Riveting, to be sure, but also completely necessary. So why do so many financial advisors outsource this most basic client need?
Can’t tell you how many high-net-worth advisors say they’re comprehensive, then add they don’t handle insurance and refer clients to a trusted life or long term care agent. Too many advisors still view insurance as something that’s sold, and its commission-based compensation structure offends certain high-minded sensibilities....................."

Danger, Will Robinson - Boomer Market Advisor