The Requirements of the Life Insurance

The Requirements of the Life Insurance

What is Insurance and why is it Needed?

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 policyholder guaranteeing compensation and premium payment, respectively. In the case of life insurance the loss is not met, 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.

 Documents that must be provided while taking term insurance

Documents to be produced while issuing insurance policy and filing claim. The insurance policy holder has to provide some important documents to the insurance company at the time of initiation of insurance and some documents must be produced even after the insurance period expires. The policy holder must give completely true information while accepting the insurance policy. No false information shall be presented. And if all the documents or details are missing then the insurance policy holder will be in big trouble. If the insurance policy holder fails to provide any information after the expiry of the term, the insurance provider may deny the insurance or cancel the insurance. KYC documents are required for purchasing a life insurance policy.

Documents required while applying for life insurance policy

And

The documents required for taking a life insurance policy are mentioned below:

1. The proposal form shall be duly filled with required information.

2. Insurance Proposer's Photograph, Voter ID Card, Passport etc. must be provided. The documents that the insurance company asks to be submitted must be submitted.

3. Proof must be shown to confirm the age of the insured.

4. Photo identity proof of proposer/life assured.

5. Address proof of proposer/life assured should be provided.

6. A medical examination report is required to show that the recipient of the insurance premium is healthy.

7. Proof of income of the life insurance policy holder must be provided.

8. PAN card of life insurance policy holder

Here are all the documents that need to be shown to take up a life insurance policy on expiry

Before the expiry of the insurance policy, the policy holder has to keep all the documents and insurance book of the premium paid during the period of 10 years or 20 years, if any, to the insurance company. If lost or not found, inform the insurance company, write in the application form that they are lost and report to the police station. If they are not reported before the expiry of the period, the insured person will not be in danger, he will not be able to claim his insurance. The insurance company has to show all the receipts for paying the premiums every month or year to show the proof of the amount paid. Moreover, if any information is given incorrectly in the application form at the time of taking the insurance policy and if it is not corrected before the expiry of the insurance period, the policyholder will lose his insurance policy after the expiry of the insurance period.

If you want to get your required payment from the insurance company quickly, you must submit all the documents on time. Otherwise it will be too late.

The Steps to Insure are:

From the sales representative of the insurance company or from the web site to be informed about the different plans of the customer and review the different plans: to choose 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:

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.

 Read More: The Requirements of the Life Insurance

Ideas about total insurance numbers:

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 sum insured or sum assured is the financial benefit that the insured provides to the insured in return for a certain amount of premium.

Premium rate setting:

The actuar will determine the insurance premium as per the Insurance Act, 2010. The factors on which the premium is determined are: insurance amount, term of insurance, age of the insured, office cost, mortality table, commission cost etc.

Insurance plan:

Between the insured and the insured customer the insurance company will take certain 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 is called insurance plan. Example: term plan, temporary plan.

 

Profitable / Nonprofit / Term Plan:

 

 Profitable plan: In the case of a life insurance policy, the insured pays the insured at the end of the term.

Dividends or bonuses are paid, called a profitable insurance policy or profitable plan.

Non-Profit Plan: In the case of a life insurance policy, the policyholder only insures at the end of the term.

Gets, he is a non-profit insurance policy or non-profit plan or bonus-free plan force.

The premium rate of such insurance plans is very low.

Term Plan: In such an insurance plan, the sum insured is paid only on the death of the insured during the term of the insurance contract, and no financial benefit is received if the insured survives till the end of the term. This type of insurance plan has a very low premium rate.

Various plans of Life Insurance Corporation:

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)

 

Insurance Agreement:

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 insured takes the risk for a specified period by accepting the premium. That is, if the insured's property is damaged as a result of a potential accident, or 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:

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 Insurer's Name, Father's Name, Mother's Name, Profession Details, Date of Birth, Permanent Address, Current Address, List of Insurance and Term, Insurance Number, Amount of Premium, Premium Payment Method, Income and Source of Income Nominee Name, Age, Relationship, Customer Signature, date of application, signature of signature etc. are recorded.

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

The information and documents that the insurance customer has to provide 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 insurance customer's profession are to be submitted to the field proof of the particular customer's profession.

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 report, ECG report, X-ray report and blood test report have to be submitted.

Persons working abroad have to submit attested photocopy of passport and sealed passport page of latest arrival in Bangladesh.

 

The things that the insurance customer has to verify are: -

The insurance customer usually has to verify the following: -

Whether all the information in the proposal 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.

 

Reasons to invest in premium:

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 premium and the amount of insurance claim is much higher than the premium received due to natural causes. 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 to strengthen national economic activities through government development activities, increase national production through development of domestic industries and 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.

Agents and agent functions:

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 a commission from the insurance company in accordance with the law.

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) liaises with 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 and surveyor work:

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 the insurer pays 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 insured is paid in whole or in part 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) Filling and submitting the 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 policyholder, the insurer follows the process of settlement of his statutory posthumous claim and if necessary investigates the investigation report positively and sends the executive receipt along with the nominee of the policy. 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 said documents to the insurer and the insurer sends the executive receipt along with the policyholder.

When the insurer pays a bonus to the customer along with the insurance claim

If the insurance liability exceeds the actual liability of an insurance company

1. 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. Because, the expiration policy is worth surrendering

The insured does not get his deposit back as he does not get it.

2. If the policy expires, the life of the insurance customer is not insured. As a result, the policy is expired

In case of untimely death of the customer, his nominee does not get any benefit of insurance. As a result, the nominee or family of the insurance customer faces an uncertain future.

Survival Benefit and Paid-up Policy:

Survival Benefit: In all life insurance policies, if the insurance is in place before the expiry of the insurance term, the premium is paid to the insured at a fixed percentage of the original sum assured, the percentage payable is called the Survival Benefit or Expected Benefit. 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: 

After two or three years of policy, the insured can convert the original insurance into a lump sum premium at a relatively low premium if he so desires. 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 annual premium paid

Term of insurance

Added to this is the earned bonus (if it is a profitable insurance plan).

What are comprehensive and third party motor insurance and what are the benefits of which?

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.

(2) In case of damage (excluding collission) repair is provided with compensation.

(3) In case of fire, uprooting of trees or damage due to falling rocks, compensation is given.

Third party motor Insurance:

Third party motor policy Third party motor insurance is the process of compensating the damaged car if someone else's car is damaged by someone's vehicle (motor vehicle). Third party motor insurance is a mandatory policy in Bangladesh.

Third party motor Insurance; The insured is the first party Insurer is the second party, the one to whom the claim is being made is called the third party.

Third party insurance is said to compensate the 3rd person.

Advantages:

In case of damage caused to another by the insured's car, the compensation is paid by the insurance company / insurer on behalf of the insured.

What is reinsurance and what are its benefits?

If any insured material or property is reinsured by the insurer, it is called reinsurance.