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 propose 80% hike in third party motor risk premium
In a decision that will hurt auto owners in the commercial vehicle (CV) segment, domestic general insurers have finally taken the initiative to increase premiums for third party motor insurance by almost 80%. General Insurance Council (GIC), the official representative body of the domestic general insurers, met in Hyderabad on Friday and passed an resolution to this effect. We have decided to initiate the process to hike third party motor insurance rates by 80% since losses from the portfolio are no longer sustainable, said the chief of a public sector general insurance company. Over 50% of the premiums of general ...
NMDC issue scrapes through with govt aid
Public sector Life Insurance Corporation and State Bank of India have ostensibly bailed out the follow-on offer (FPO) of state-owned mining firm NMDC. The two firms have reportedly put in close to Rs 8,200 crore, or around nearly 80% of the issue amount, of Rs 9,800 crore, at the lower end of the price band. The subscriptions by the insurer and India s biggest bank, reportedly at Rs 7,500 crore and Rs 700 crore respectively, ensured that the issue was finally subscribed 1.25 times. Foreign institutional investors (FII), who had accounted for just 1% of the subscriptions on Thursday, didn t bring ...
Gold's cross-currency strength signals its evolution
LONDON (Reuters) - Gold's rally to record highs in euro and sterling terms and the resilience of spot prices in the face of a rising dollar is sign-posting the metal's broadening insurance appeal, as sovereign debt fears shift to the fore.
No case to remove sovereign guarantee for LIC - panel
NEW DELHI (Reuters) - There is no case for a withdrawal of sovereign guarantees on insurance policies issued by state-run Life Insurance Corp of India, a parliamentary panel said on Friday.
Guarantees stay key for insurance buyers
Despite recent stability in the stock market, insurance buyers are continuing to be risk-averse and preferring to buy polices that offer guaranteed returns.
Tepid retail response as NMDC public offer subscribed 0.79 times...
The follow-on public offer (FPO) of NMDC was subscribed 0.79 times with major participation coming from state-owned Life Insurance Corporation and public sector banks. They accounted for over 97% of the total bids received so far, according to the latest data available with the National Stock Exchange (NSE). In contrast, overseas investors, domestic mutual funds and retail investors shied away from the issue. The Rs 9,800 - 11,425 crore issue received total bids for over 26 crore equity shares of which bids for 23 crore equity shares came at the lower end of the price band of Rs 300. While ...
LIC sells 5.9 percent stake in Tilaknagar Ind
MUMBAI (Reuters) - State-run Life Insurance Corp has sold about 1.9 million shares, or 5.9 percent stake, in Tilaknagar Industries Ltd at 100.5 rupees a share, according to a filing by Tilaknagar to the BSE on Thursday.
NMDC issue subscribed 0.17 times on first day
The follow-on public offer (FPO) of NMDC was subscribed by 0.17 times on the opening day with majority of applications coming from domestic insurance firms. Though the QIB portion subscribed 0.33 times, the FII and domestic mutual funds stayed away from the issue. The Rs 9,800-11,425 crore issue received total bids for 5.71 crore equity shares against the offer size of 33.22 crore shares. Sources said a bid for around 1.5 crore was put in by the state-owned Life Insurance Corporation (LIC), early on Wednesday morning. The bid is learnt to have been submitted at the lower end of the ...
U.S. health secretary piles pressure on insurers
WASHINGTON (Reuters) - U.S. Health Secretary Kathleen Sebelius ratcheted up the pressure on health insurance companies on Wednesday, urging them to forgo short-term profits to make coverage more affordable and to stop fighting the Obama administration's reform effort.
Insurers' $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.