Life Insurance | All the information about insurance

Life Insurance | All the information about insurance

 What is Insurance and the Need to Insure:

Insurance is a contract. It is a legal agreement between the two parties. One party enters into an agreement with a guarantee that the other party will pay compensation. The other party is bound by the contract with the assurance of paying premium at a fixed rate for compensation. An agreement between the first party insurer and the second party insured with the guarantee of compensation and premium payment, respectively. In the case of life insurance the loss is not compensated, no value can be quantified in human life. So in case of life insurance financial security is provided.

The insurance industry plays a very important role in the economic development of any country. Insurance helps in raising capital by collecting small savings (premiums) from the public. Guarantees compensation for human life, debts and property. With such assurances, people can feel safe in their workplace and concentrate on their work. As a result, individual production increases. Thus, when individual production increases, national production increases. Increasing production improves the living standards of the people and leads to economic prosperity of the country as a whole.

Example: life insurance contract, fire insurance contract.

Benefits of Insurance:

(1) It provides security of life and property.

(2) It generates capital.

(3) It is a source of old age and emergency.

(4) It gives peace of mind.

(5) It finances the business.

(6) It reduces inflation.

(6) It provides for the security of social property.

Different Steps to Insure:

 From the sales representative of the insurance company or from the web site to be informed about the different plans of the customer and reviewing the different plans: choosing the plan of choice.

 To apply in the prescribed form of the insurance company for taking the plan of choice of the insurance customer.

 Reviewing the application of the insured and the accompanying documents: Taking a written decision of the insuring company.

 Payment of premium by the insurance customer after receiving the decision of the insurance company.

 Final execution of insurance contract by the insurance company through FPR after payment of premium by the insurance customer.

 Collection of insurance documents by the customer after execution of FPR by the insurance company.

Insurance Premium Means:

The insurance premium is the return of the promise of compensation or claim payment to the insured in the insurance contract. In the case of life insurance, the policyholder pays the premium to the insurer / insurance company and the insurance company pays the insurance claim in case of death of the insured on or before the expiry of the term. The definition of premium in the analysis of different perspectives of experts is as follows:

“An insurance contract is a policy to reduce or compensate for any possible uncertainty or risky financial loss in the future on the life or property of the insured or other or in return for a promise to pay the insurance claim at a fixed rate or for a certain period of time or The one-time payment is called insurance premium. ”

In the case of life insurance, the premium is usually collected in annual installments. However, for the convenience of the insured, there are arrangements to pay half-monthly, quarterly and even monthly premiums.

Total Insurance Figures Mean:

The subject of life insurance is human life. It is not possible to determine the value of life. Therefore, in the case of life insurance, the amount of financial benefit that the insurance customer provides to an insurance company in return for a certain amount of premium is called the sum assured.

How to Determine The Premium Rate:

The actuar will determine the insurance premium as per the Insurance Act, 2010. The factors on which the premium is determined are:

Insurance figures,

Term of insurance,

Age of the insured,

Office expenses,

Mortality Table,

 Commission cost etc.

Insurance Plan Means:

Between the insured and the insured customer the insurance company will take risks in return for a certain premium i.e. what benefits will be provided to the insured customer, what benefits will not be provided, what matters will not be at risk, various terms etc. The scheme devised by the actuary. , The scheme is called insurance plan. Example: term plan,

Temporary plan.

 Profit / Non-Profit / Term Plan is:

Profitable plan: In case of life insurance policy, dividend or bonus is paid to the insured at the end of the term with the sum insured, it is called profitable insurance policy or profitable plan.

Non-Profit Plan: In the case of a life insurance policy, the insured receives only the sum insured at the end of the term, it is called a non-profit insurance policy or a non-profit plan or a plan without bonus.

The premium rate of such insurance plans is very low.

Term Plan: 

In such an insurance plan, the insured money is paid only if the insured dies within the term of the insurance contract. If the insured survives till the end of the term, he does not get any financial benefit. This type of insurance plan has a very low premium rate.

Life Insurance Corporation has the Following plans:

The insurance plans launched by Life Insurance Corporation are:

01. Life insurance (with profit)

02. Term insurance (with profit)

03. Progressive Term Insurance (with profit)

04. Expected Term Insurance (with profit)

05. Multi installment insurance (with profit)

07. Marriage Endowment Policy

07. Joint term insurance

07. Child safety insurance

09. Dual security term

10. Pension insurance

11. Health insurance

12. Single premium policy (with profit)

13. Triple Protection Policy

14. Overseas Assurance Policy (with profit)

15. Life Insurance (Non Profit)

16. Term Insurance (Non Profit)

16. Expected Term Insurance (Non Profit)

16. Overseas Mediclaim Policy

19. Self-insurance (non-profit)

20. Property Tax Insurance (Non Profit)

21. Boys and girls education and marriage insurance (with benefits)

22. Guaranteed Bonus Term Insurance

23. Money Back Term Policy (Non Profit)

24. Temporary insurance (non-profit)

25. Self Reliance Insurance (Single Premium Policy)

26. Life insurance scheme for poverty alleviation

26. Expatriate insurance

26. JBC Monthly Savings Scheme

29. JBC Expected Monthly Savings Scheme

30. Social Security Insurance (with benefits)

31. Pramila DPS (with profit)

32. Hajj insurance (with profit)

33. Rural life insurance (with profit)

34. Mortgage Security Insurance (Mortgage Protection Policy)

The Insurance Contract is:

An insurance contract is an agreement executed between the insured and the insurer to transfer potential risks to human life or property. In the case of an insurance contract, the policyholder transfers the risk in exchange for the payment of installments or premiums for a specified period and the insurer takes the risk for a specified period by accepting the premium. In other words, if the insured's property is damaged as a result of a potential accident, or death at the end of life or at the end of the life insurance term, the insurance contract is an agreement to pay the insured or his nominee the amount determined by the insurer.

Insurance Offer Means: 

In order to take out insurance, the policyholder makes a written application to the insurer. Insurance is usually offered on the printed paper prescribed by the insuring company. Where the insured

Name,

Father's name,

Mother's name,

Profession details,

Date of birth,

Permanent address,

Current address,

List of insurance and term,

Insurance figures,

 Amount of premium,

 Premium payment method,

Income and source of income Name, age,

Relationships,

Customer signature,

Date of application,

The testimony of the witness etc. is recorded.

The information and documents that the insured has to submit in order to enter into an insurance contract are:

 The details of the name and address of the insurance customer have to be submitted.

 The details of the profession of the insurance customer are to submit the proof of the profession of the particular customer.

 The details of income of the insured customer are to be submitted in the field special income proof.

 The professional address of the insurance customer has to be submitted.

 The insured has to submit proof of age.

 Passport size photograph of the insurance customer and nominee has to be submitted.

 Medical / non-medical report has to be submitted as proof of good health.

 Depending on the insurance / age of the large amount, different urine test reports, ECG reports, X-ray reports and blood test reports have to be submitted.

 People working abroad are required to submit attested photocopy of passport and last sealed passport page of arrival in Bangladesh.

The insurance customer usually has to verify the following: -

 Whether all the information in the proposal form has been recorded correctly and accurately.

 Whether the financial capacity of the insurance company is sufficient.

 Whether all the information has been properly recorded in the insurance deed.

 Whether the sales representative of the insurance company has proper appointment letter.

Why Invest in Premiums?

Insurance companies invest the surplus money (if any) in their safe and profitable sector after paying insurance claims, commissions, development officers' salary-bonuses and management expenses from their premium income for the following reasons:

A. Payment of insurance claims: Interest, bonuses, etc. are added to the collected premiums and for natural reasons the amount of insurance claims is much higher than the premiums received. Therefore, there is no alternative to premium investment to bring the received premium to the level of potential demand by investing in a safe and profitable sector.

B. Filling the financial deficit: The premium received from the insurance customers is much less than the payable insurance claim. Premium investment is essential for timely payment of insurance claims so that one does not face any financial difficulties.

C. Assistance in National Economic Activities: Huge premiums collected by the insurance industry must be invested in government development activities, increase national production through development of domestic industries and consolidating national economic strength through export of surplus production.

Premium investment is very important in insurance business. The success of an insurance company depends largely on the smooth and efficient management of investment activities.

Here's How Life Insurance Works:

Life insurance companies provide financial benefits and protection against accidental losses to the person who takes the insurance policy and pays the insurance installments every month or year. That is, if there is an accident, dismemberment or death of the person paying the monthly or annual insurance; Then the insurance company compensates the person according to the premium amount. In the case of life insurance, term life insurance, the insurance company pays compensation to the policyholder only if he meets with an accident within ten years or 20 years. That is, if an accident occurs before the expiry of the insurance period, then the compensation will be paid. But the insurance policy holder does not get these benefits if the insurance is arrears. So the insurance policy holder must pay regular insurance installments to avail the benefits.

What is an Agent and What is The Job of an Agent?

Agent: A person who sells an insurance scheme / insurance policy to a customer on behalf of an insurance company is called an agent or insurance representative. The insurance representative acts as a bridge between the insured and the insurance company. Section 124 of the Insurance Act-2010 contains laws relating to insurance agents. The insurance agent receives commission from the insurance company as per the law by the authority.

The role of the agent: The role of the agent is very important in the life insurance business. An insurance representative does the following for the insurance company:

 (1) Selling the insurance policy of the hired insurance company.

 (2) To motivate the insured to pay the renewal premium on time.

(3) Connects the insured and the insurance company to settle the insurance claim.

Measures are taken to establish a relationship between the insurance company and the insured to accomplish the above functions. For this reason the activities of the agent are very important with the expansion of the life insurance business. If the agent's activities are done faithfully, the insurance products will have great success in marketing.

Surveyor Definition and its Activities:

The most difficult and important aspect of property or insurance is the correct and accurate application of the Principle of Indemnity. This policy says that in case of loss of property or property, the amount of loss should be compensated exactly as much. Neither more nor less. The policy further elaborates that in case of any loss of assets or property and the risk is taken in the insurance policy, the insurance company will compensate the affected person or entity to the extent that the person or entity was in financial condition before the loss. Go back.

The problem is who will fix the real cost of the loss? Insurance company or insured. Both are interested parties. It is not uncommon for the insurance company to want to minimize the amount of loss and the insured to want to maximize the amount of the claim. The only way to solve this problem is with a third party. To assign the responsibility of determining the actual loss to those who are honest, impartial and have experience in determining the actual loss of general insurance content and know all the technical aspects of it, to him or any such organization in case of claim. This is done in the case of general insurance business. Those who are entrusted with this responsibility are called surveyors.

Surveyors are experienced in determining the actual loss of general insurance content and are proficient in all its technical aspects. The government issues certificates to such individuals or entities and it is the government-certified surveyors who submit their survey reports to the insurance company in case of any loss of assets or property. The value of this survey report is very important in terms of claim payment. The role of surveyors is therefore also important in general insurance business.

How does the Insurer Pay The Insurance Claim?

In case of any unforeseen possibility or accident as per the terms of the insurance contract, the claim is to be paid by the insurer in lieu of premium. The availability of the claim is the legal right of the insured. Life insurance claims are paid to the sole legal holder. As per the terms of the insurance contract, the insured pays the sum insured in case of 02 (two) types.

A) As a result of death or accidental disability of the insured within the stipulated period of the insurance contract.

B) After the expiry of the prescribed period, the sum assured is paid in part or in full to the policyholder or nominee or to the lessee according to the type of insurance plan.

Payment / Disposal of Death Insurance Claim: In case of Death Insurance Claim, the legal claimant of the insured has to submit the following documents to the insurer:

1) Death certificate, janaza / cremation certificate, original insurance document, proof of age issued by the treating physician at the time of death of the insured.

2) Completion and submission of claim form, identity card, employer's statement and doctor's statement form provided by the insuring company.

After receiving the documents mentioned by the legitimate claimant / nominee of the insured, the insurer follows the process of settling his statutory posthumous claim and if necessary investigates the investigation report positively and sends the executive receipt along with the nominee of the policy with the approval of the appropriate authority. Upon return to the insurer, the payee check is sent to the bank account of the insured nominee.

Payment / Settlement of Post-Term Insurance Claim: The post-term claim is that the sum insured is payable if the prescribed time limit / term of insurance has expired as per the life plan of the insured. In case of maturity insurance claim, the insured has to submit the following documents to the insurer:

1) Proof of age (if age has not been proved before)

2) Proof of ownership (if rights are imposed)

3) Original insurance documents.

In case of maturity insurance claim, the policyholder submits the mentioned documents to the insurer and the insurer sends the executive receipt along with the policyholder.

When does the insurer pay bonus to the customer along with the insurance claim?

If the insurance company has more funds than the actual liability of the insurance company, then the excess is called surplus. From the surplus received at the end of the valuation process conducted by the actuary, the insurance company distributes the insurance customers in the form of bonus along with the insurance claim. However, bonuses are paid only for profitable insurance plans. In addition the declared bonus is paid along with the price paid.

What is a Lapse Policy and Why it is Lapse:

The policy usually acquires a surrender value after two or three years of operation. Policies that have not paid the surrender value, pay the next premium in addition to the first premium. If the premiums are not paid within the grace period, the policy becomes expired. All these limitation policies can be introduced at any time later (not more than 5 years) subject to payment of arrears of premium, ancillary documents (e.g. health declaration, brief medical report, full medical report) with interest charged by the corporation.

The Policy is Expired for Various Reasons. Such as:

A. If the insurance deed is not issued in time.

B. If the premium demand notice is not sent on time.

C. If after-sales service is not provided i.e. after the sale of the policy the contact with the insurance customers is not maintained.

D. If the policy is not sold as per the demand and capacity of the insured by an untrained sales representative.

E. If an unrealistic promise (which cannot be fulfilled) is made to the insurance customer by the insurance seller / agent.

F. If you do not get good service from the insurer's office.

G. If the insured suddenly falls into financial trouble.

H. If the policy demand of the insurance customer changes.

I. If the policy-bonus rate declared by the insurer is not satisfactory.

J. If the reputation of the insurer is tarnished.

What is the Loss to The Customer if the Policy Expires?

1. If the policy expires, the insurance customer suffers financial loss. This is because the policyholder does not get the surrender value of the policy and the insured does not get his deposit back.

 2. If the policy expires, the life of the insurance customer is not insured. As a result, if the policyholder dies prematurely while the policy is expired, his nominee does not get any benefit from insurance. As a result, the nominee or family of the insurance customer faces an uncertain future.

What is Survival Benefit and Paid-up Policy?

Survival Benefit: In all life insurance policies, if the insurance is in place before the expiration of the insurance term, the premium is paid to the policyholder at a fixed percentage of the original sum assured over a certain period of time. Such as: Three installment insurance plans and multi-installment insurance plans provide survival benefits to the insured customer from time to time.

Paid-up policy (paid insurance): After two or three years of insurance, the insured can convert the original insurance into a lump sum premium at a relatively low premium if he wishes. This type of conversion insurance is called paid-up policy. Surrender value earned in paid insurance: No further premium has to be paid for the one-time premium paid by the insured. Paid insurance becomes a claim under the original insurance contract. In a for-profit insurance plan, the earned bonus for that period is distributed along with the sum insured paid. Paid insurance is the future value of insurance. This paid price will either be received by the policyholder on maturity or will be paid to the nominee of the policyholder in case of untimely death.

Paid pricing formula:

Cost of insurance paid:

Basic Insurance Number: Total number of annual premiums paid

Earned bonus will be added to the term of insurance (if it is a profitable insurance plan).

What is comprehensive and third party motor insurance and what are its benefits?

Comphensive Insurance is a type of motor car insurance that the insurance company pays for the loss of the customer's own car.

Comphensive Insurance is called First Party Insurance. The insured gets the highest level of protection for his car. This policy is optional policy, not binding on the customer.

Advantages:

(1) Replace or repair compensation if the vehicle is stolen.

What is reinsurance and what are its benefits?

If any insured material or property is reinsured by the insurer, it is called reinsurance. The reinsurance business is spread worldwide on an international basis.

As we know, the insurance company bears the risk of the insured content (life) or property, but it does not bear all the risk alone. When he thinks he will take as much risk as he can, he enters into a reinsurance agreement with another reinsurance company.

Therefore, reinsurance refers to the transfer of some of the insurance risks taken by an insurance company (up to the retention limit) to its own sector and the rest to another insurance company. Here the insurance company that transfers its excess risk is called the seeding company and the insurance company that takes that risk is called the reinsurance (reinsurance) company.

Regardless of the size or fund of the insurance company, most insurance companies have to take advantage of reinsurance, for some of the reasons mentioned below:

A. An insurance company has very limited assets at the start of its business, yet the insurance company has to bear unlimited risk even within these limited assets. Insurance companies are only able to bear this unlimited risk through reinsurance.

B. Insurers / insurance companies may limit their liabilities.

C. Helps to bring the financial loss of the insurance company within its means.

D. Reinsurance helps the insurance company to keep its business stable.

E. Reinsurance helps small insurance companies enter the larger insurance market and compete.

F. Reinsurance also helps the insurance company gain experience in risk management and risk management.

How the legal right to receive insurance claims is established:

The availability of insurance claims is a legal right of the insured. Life insurance claims are paid to the sole legal holder. The legal right to receive a posthumous insurance claim is the nominee of the policyholder. However, the legal right to the expected benefits of insurance (Survival Benefit) and the term of the maturity claim is insured by the policyholder himself during the lifetime of the policyholder.

Steps to be taken by the customer to receive the insurance claim: -

Under the terms of the insurance contract, the customer is entitled to 2 (two) types of insurance claims. In order to receive this insurance claim, the customer has to complete the following:

Receipt of Death Insurance Claim: In case of Death Insurance Claim, the legal claimant of the insured has to submit the following documents to the insurer:

1) Death certificate, janaza / cremation certificate, original insurance document, proof of age issued by the treating physician at the time of death of the insured.

2) Filling and submitting the claim form, identity card and doctor's statement form provided by the insuring company.

After receiving the documents mentioned by the legal claimant / nominee of the insured, the insurer follows the process of settling his statutory posthumous claim and if necessary, investigates on the spot and if the investigation report is positive, an executive receipt is sent along with the nominee. Is. The insurer then sends the account payee check to the nominee's bank account.

Receipt of Post-Term Insurance Claim: The post-term claim is that the sum insured is payable if the time limit / term of the insurance has expired as per the insurance plan during the lifetime of the insured. In case of maturity insurance claim, the insured has to submit the following documents to the insurer:

Read More: The Requirements of the Life Insurance

1) Proof of age (if age has not been proved before)

2) Proof of ownership (if rights are imposed)

3) Original insurance documents.

In case of maturity insurance claim, the insured sends an executive receipt along with the insured if the insured submits the specified documents to the insurer. The insurer then sends the payee check to the bank account of the insured.

If a fair insurance claim is not paid within the stipulated time, the insurer will pay the claim as follows:

(1) Payment is made under the policy issued by the insurer and all the documents for filing the claim have been submitted by the claimant. Failure to do so will result in payment of interest as prescribed in sub-section (2), if the insurer can prove that such failure was beyond his control.

(2) Interest under sub-section (1) shall be payable for the current period of failure and shall be calculated on a monthly basis at the rate of 5 per cent in addition to the prevailing bank rate.

Where the aggrieved customer may lodge a complaint for redress;

If the policyholder feels that he / she has not received proper receipt of his / her claim, he / she may, if he / she wishes, apply to the CEO of the insuring company for reconsideration of the claim amount. In addition, you can apply to the Insurance Development and Regulatory Authority (IDRA). You can also file a case with the Insurance Development and Regulatory Authority (IDRA) subject to payment of a certain amount of fee on the basis of insurance amount.

Advantages of the policy / plan introduced in the Life Insurance Corporation:

Life Insurance Corporation's web site has a clear description of the benefits of each policy / plan offered by the corporation.

Do you want to know about Definition and History of Life Insurance Company, then click here.

Tags:

Life Insurance

Information of Life Insurance