Life Insurance
Life insurance or life assurance is a contract between the individual (policy owner) and the insurer, where the insurer agrees to pay a some amount of money upon the occurrence of the insured individual's or individuals' death or other event. In return, the individual agrees to pay a stipulated amount called a premium at regular intervals. In India, which is one of the most populated in the world, the prominence of insurance is not as widely understood. The contract is valid for payment of the insured amount during:
- The date of maturity, or
- Specified dates at periodic intervals, or
- Unfortunate death, if it occurs earlier.
Life insurance is universally acknowledged to be an institution, which eliminates 'risk', substituting certainty for uncertainty and comes to the timely aid of the family in the unfortunate event of death of the breadwinner.
The value for the policyholder is derived, not from an actual claim event, rather it is the value derived from the 'peace of mind' experienced by the policyholder, due to the negating of adverse financial consequences caused by the death of the Life Assured.
Savings through life insurance guarantee full protection against risk of death of the saver. Also, in case of demise, life insurance assures payment of the entire amount assured (with bonuses wherever applicable) whereas in other savings schemes, only the amount saved (with interest) is payable.
Tax Relief: Life Insurance is the best way to enjoy tax deductions on income tax and wealth tax. This is available for amounts paid by way of premium for life insurance subject to income tax rates in force.
P> Life Insurance NewsInsurers' $4-7 bln Chile quake hit won't up prices
MUNICH/ZURICH (Reuters) - Last month's huge earthquake in Chile might cost the insurance industry up to $7 billion in damage claims, the world's top two reinsurers said, but it looks unlikely to raise reinsurance prices.
Fortis back in profit in 2009 and unveils new name
BRUSSELS (Reuters) - Belgium-based insurance group Fortis returned to profit in 2009 and resumed its dividend, a year after its dramatic break-up, and announced it would be changing its name to ageas.
AIG could learn fate of Taiwan unit deal soon
TAIPEI (Reuters) - American International Group could learn the fate of the stalled $2.2 billion sale of its Taiwan unit Nan Shan Life Insurance as early as Thursday, when Taiwan's parliament will review a report on the deal from the top financial regulator.
MetLife set to buy AIG's Alico unit: Sources
AIG was closing in on a deal on Sunday to sell its foreign life insurance unit to MetLife Inc for about $15.5 billion in cash and stock, leaving it with a substantial minority stake in MetLife, sources familiar with the matter said. MetLife is expected to pay American International Group about $6.8 billion in cash and about $8.7 billion in equity, which includes convertible preferred, common shares and common equivalent securities, for the unit, American Life Insurance Co (Alico), one of the sources said. The common stock and securities equivalent to common shares would give AIG about 14 per cent ...
Dai-ichi Life sets price range for $12 bln IPO
TOKYO (Reuters) - Dai-ichi Mutual Life Insurance said its IPO -- likely to be the biggest in two years -- would raise as much as 1.1 trillion yen ($12 billion) at the top of a tentative price range, roughly in line with expectations.
AIG to get MetLife stake in $15 bln unit sale
NEW YORK (Reuters) - AIG was closing in on a deal on Sunday to sell its foreign life insurance unit to MetLife Inc for more than $15 billion in cash and stock, leaving it with a substantial minority stake in MetLife, sources familiar with the matter said.
Dai-ichi sets IPO price range of Y125,000-155,000/share
TOKYO (Reuters) - Dai-ichi Mutual Life Insurance, Japan's second-largest life insurer, said on Monday it would price its planned initial public offering at 125,000 yen to 155,000 yen ($1,385-$1,717) per share.
MetLife near $15 bln deal for AIG unit - sources
NEW YORK (Reuters) - A tax question holding up American International Group Inc's sale of its foreign life insurance unit to MetLife Inc is expected to be resolved favorably, clearing the way for a roughly $15 billion deal, sources familiar with the matter said on Thursday.
Lloyd's of London attacks Indian protectionism - FT
LONDON (Reuters) - The chairman of Lloyd's of London has hit out at the level of protectionism in India's insurance market, the Financial Times reported on Thursday.
AIG unit sale shows more buyers could hijack IPOs
LONDON (Reuters) - More buyers could hijack planned flotations at the last minute after Prudential's surprise purchase of AIG's Asian life insurance unit showed the benefits of such "dual track" disposals.
Prudential can't add Tata AIG stake, rules IRDA
The insurance regulator told Hindustan Times on Wednesday that if Britain?s Prudential Plc?s purchase of the Asian operations of bankrupt US-based American International Group (AIG) included the Indian stake in Tata AIG, it would amount to a regulatory violation.
Prudential, AIG selling AIA deal to Asia staff
The chief executives of Britain s Prudential Plc and American International Group met employees of the two firms in Southeast Asia on Thursday, in a bid to address concerns about the insurance industry s record M&A deal unveiled earlier this week. Prudential CEO Tidjane Thiam and his AIG counterpart Robert Benmosche spoke to employees in Malaysia in the morning, and were due to hold town hall meetings in Singapore in the afternoon. They are expected to visit Thailand on Friday. Prudential is buying AIG s Asian life insurance arm, American International Assurance (AIA), for $35.5 billion, in a big bet on soaring demand ...
Prudential, AIG CEOs selling AIA deal to Asia staff
SINGAPORE (Reuters) - The chief executives of Britain's Prudential Plc and American International Group met employees of the two firms in Southeast Asia on Thursday, in a bid to address concerns about the insurance industry's record M&A deal unveiled earlier this week.
Panel seeks safeguards on credit rating
KP Krishnan committee on Comprehensive Regulation of Credit Rating Agencies(CRA) has observed undercutting of fees between CRAs is taking place and issuers may take advantage of such situations. Issuers attempt to seek informal ratings from various CRAs and pass the rating mandate to the agency that could potentially offer the highest rating. To prevent instances like the damage caused by unscrupulous salesmen of insurance, mutual funds and personal loan products, it is necessary to place safeguards or prescribe standards on outsourcing of credit rating or credit information to any third party. This is in the interests of quality and confidentiality. ...
TDS limit hike cheers insurers
Budget 2010 has brought a smile to the more than 10 lakh insurance agents who earn a living from commissions on insurance policies.
New FICCI chief eyes $75 bn FDI by 2015
Lower transaction costs in business through simpler regulations, elimination of inspector raj, and a further liberalisation of the insurance and retail sectors are high on the agenda of Rajan Bharti Mittal, the new president of industry chamber FICCI.
Budget a mixed bag for insurance industry
The insurance sector, while reacting to the Budget announcements made last week by finance minister Pranab Mukherjee, iterated its demand of increasing the FDI limit and asked for a major initiative to promote long-term savings through a separate format. The industry players, however, welcomed some of the FM s moves, including income tax relief, setting up of apex-level financial stability council, legislative reform paneland pan-India annual check ups. Future Generali India Life Insurance Co CEO & MD Deepak Sood said, The FM has addressed the two most crucial issues of economic growth & fiscal consolidation. With the relief in income tax ...
Irda keeps close watch on AIG Asia biz sale
Post the $35.5-billion deal between UK-based Prudential and America International Group (AIG) where former would buy out the latter s Asian life insurance arm Tata Group is planning to revamp its insurance operations in India. The group is having two joint ventures in the country with AIG partnership. Both Tata Group and AIG have floated two joint ventures Tata AIG Life Insurance and Tata AIG General Insurance, where the Indian conglomerate holds 74% each. Industry sources point out that though it is not clear what are the exact plans of Tata group over the AIG s 26% stake, it is now clear ...
ING gets wiggle room on insurance sell-off
AMSTERDAM (Reuters) - Dutch financial services group ING said it can potentially extend the sale of its worldwide insurance business beyond a 2013 deadline as long as it kicks off the process with a stockmarket listing.
UK's Pru to buy AIG Asia unit for $35.5 bn
Britain s Prudential will buy American International Group s Asian life insurance arm for $35.5 billion in the insurance sector s biggest deal ever, helping the bailed-out US group repay a big chunk of its taxpayer debt. Britain s No. 1 insurer plans to pay $25 billion in cash and the rest in equity for the unit, American International Assurance. It said it would finance the purchase through a rights issue of $21 billion including costs and fees, a record for an acquisition-related cash call, and by raising $5 billion of debt. The acquisition of AIA, regarded as AIG s Asian crown jewel, increases Prudential s ...