Take a SIP of Reliance life plan

RELIANCE CAPITAL ASSET Management Ltd, the investment manager of Reliance Mutual Fund, will offer life insurance cover to its investors. Investors opting for systematic investment plan (SIP) in any of the fund’s 11 equity-linked schemes will be offered a Life Insurance cover of up to Rs 10 lakh. Upon the premature death of an investor opting for an SIP between three and 15 years, Reliance Mutual Fund will pay the outstanding unpaid SIP installments. The scheme came into effect on May 12. An SIP allows an investor to invest a fixed sum of money every month in a fund on a pre-determined date. This regular investment in a particular plan helps an investor in averaging out highs and lows of the markets.

In 2005, the fund house had offered a personal accident cover with its equity-linked saving scheme. The personal accident death cover was for a maximum sum of Rs 5 lakh and was linked to the investment made by an individual and not with the capital appreciation of the investment. For an investment of Rs 10,000 or less, the level of cover was Rs 50,000. For an investment of Rs 10,001-25,000, the insurance cover was Rs 2 lakh and for investments between Rs 25,001 and Rs 50,000, the cover was Rs 3,00,000. The fund house had capped the level of cover at Rs 5 lakh for an investment amount greater than Rs 50,001. The life insurance scheme being offered now will serve as an incentive for investors to go for the systematic investment plan.

The fund house, however, has not elaborated on whether the life cover will be free of cost or investors will have to pay a premium for theinsurance. However, even if investors have to pay a premium, it won’t be much considering that it would be a group life cover. Investors will find it beneficial to go for a long-term SIP, say for more than five years. Over the long term, it is seen that equity investments give higher return than any other assets with a comparatively lower risk.

news source : http://www.telegraphindia.com/

IDBI Fortis Life Insurance to use Mastek's Elixir System

Mastek Ltd, a leading IT solutions player with global operations in providing new technology and IP-led enterprise solutions to insurance, government and financial service organizations worldwide, and IDBI Fortis Life Insurance Co Ltd, a joint venture between three leading financial conglomerates - IDBI, Federal Bank and Fortis, each of which enjoys a significant status in their respective business segments, have jointly announced the launch of theirInsurance business in India on Mastek's Elixir Policy administration system.

After the successful launch, both companies which are headquartered in Mumbai also announced the signing of the contract for the second phase, which would enhance the scope of Mastek to provide additional modules of Elixir covering Channel Management, Claims, Re-Insurance etc. in addition to basic policy administration.

Mastek's Elixir, is a component-based solution for policy administration specifically targeted to insurance companies that want to launch hybrid products and improve the efficiency of their distribution networks. This single solution is designed to support all product lines including traditional life, health, unit linked, annuities and pension products. It is an end-to-end policy administration platform that integrates the front and back office.

Commenting on the contract, Mr. Sudhakar Ram, Chairman, Group CEO & Managing Director, Mastek, said: "At Mastek, it has been our constant endeavor to provide our customers with high value propositions. We are proud to partner with IDBI Fortis and create value for their customers.

Mastek has consistently demonstrated its capability to address and comprehend insurance sector requirements across the world. Having implemented similar projects successfully across geographies we are confident that through our capabilities and experience we will be able to support the aggressive growth plans of IDBI Fortis and help them service their customers better."

He added, "India is a strategic market for Mastek in terms of growth in the insurance vertical and with a strong track record and a unique set of proprietary frameworks and competencies, such as Elixir, which is an end-to-end solutions platform for theinsurance industry we see tremendous growth coming from this region.

news source : http://www.equitybulls.com/

Family has trouble finding life insurance policy

The death of a relative is a traumatic event for any family. Throw in not being able to collect on that loved one's life insurance policy, and it becomes a financially frustrating experience too. That's exactly the problem a Rogers County family was facing. Since, Brenda Hagebush's mother died in February, she has spent of much of her time on the phone trying to collect on her mother's policy. It's a one thousand dollar policy so old, the insurance company, Reliable insurance, says it had trouble finding it. "Very frustrating," said Brenda. "Like I said I just felt like I had come up against a wall."

A wall Brenda, her sister Sandy, and their father Fred were anxious to tear down.
Fred needed the insurance money to help pay for his wife's funeral costs. "He paid for this insurance policy in good faith thinking it was giong to be here for him when the time came that they needed 'em and then we come up against this brick wall," said Sandy. That's when they called the 2News Problem Solvers. We discovered that Reliable was not the original company that issued the policy, but once we spoke to the president he agreed to look into the issue immediately. He couldn't give us specifics due to privacy issues, but told us the family should contact him right away, and within weeks the family received the check. Brenda and Sandy also decided to cash in their 500-dollar life insurance policies to help their dad, further. All the checks are in the bank now totalling more than $2,000.

news source : http://www.kjrh.com/

Banks to reap profit of cover

This year, banks will end up making profits of over 1,500 crore through the mundane job of selling life insurance. With commissions going over 35% of the first-year premium, perhaps no other business generates as high a margin as selling life insurance. Banks have come a long way since 2002 when they were first allowed to sell insurance products. Over the years, stakes have got very big in insurance distribution. With the law of diminishing returns kicking in as far as insurance agents are concerned, insurance companies are simultaneously looking at alternate channels — particularly bancassurance.

Earlier this week, Aviva Life Insurance made an offer to HDFC Bank to get the second-largest private bank to sell its insurance policies. According to sources, Aviva promised HDFC Bank a better deal than what it is earning. The bank, however, turned down the offer as it expected to make similar money from selling insurance for its group company HDFC Standard Life. While no deal took place, the offer itself was seen by the industry as an indication of the kind of big money that is to be made out of selling life insurance. In the game of distribution so far, there has been no relationship between the size of the distribution network and success in selling. State-owned banks, which account for over 90% of bank branches in the country, generate less than 10% of the bancassurance premium.

The most successful distributors of insurance have been private and foreign banks that already have built an expertise in selling third-party products such as bonds and mutual funds. Most successful sellers of insurance are — ICICI Bank, HDFC Bank, Citibank, Standard Chartered, and ABN Amro. Among state-owned banks, State Bank of India is gradually picking up sales of its insurance arm SBI Life. Union Bank too has had a focused approach to selling life insurance and is one of the largest insurance sellers among nationalised banks.

news source : http://economictimes.indiatimes.com/

Options if health insurance is lost

Losing your paycheck isn't the only problem when you're laid off. You probably need to decide what to do about health insurance if your employer has been providing your coverage. The temptation might be to go without it to save money, hoping nothing befalls you before you find a new job with insurance. That would be a mistake. Even the young and healthy can suffer broken bones playing sports or through a car accident and rack up steep medical bills. So what other choices are there? When you lose a job, you have certain insurance rights under federal and state laws. A rundown on state-by-state laws can be found at www.health insuranceinfo.net.

Here are some options:

•Spouse's benefits: Do you have a spouse who has insurance at work? If so, you can under federal law enroll in your spouse's plan even if it's not open enrollment time. You have up to 30 days to enroll if you left your job voluntarily, up to six months in Maryland if you were laid off. This might be your best option. Employer plans tend to offer more generous benefits than individual policies and the employer usually picks up a big part of the tab. Plus, there's no medical underwriting in group plans, so any health problems you might have won't prevent you from joining, says Brenda Wilson, chief of health insurance and managed care at the Maryland Insurance Administration.

•COBRA: This is the federal law (Consolidated Omnibus Budget Reconciliation Act) that says you must be allowed to continue coverage under your former employer's plan for up to 18 months after leaving the job. It applies to companies with 20 or more workers. You won't qualify, though, if you were fired for "gross misconduct." COBRA is the easiest option and one that most people choose. If you can't join a spouse's plan, COBRA also is your best bet if you have health problems that might make it difficult or impossible for you to buy a policy on your own. But coverage under COBRA isn't cheap. You will pay the full cost of premiums and may be charged an administrative fee.

•Mini-COBRA: States also require coverage for some who fall through the federal law cracks. These state protections are sometimes called mini-COBRA. Maryland, for instance, lets former workers stay on an employer's plan up to 18 months even if there are fewer than 20 workers. In this case, too, you shoulder the entire cost. There are exceptions. This law applies only to insurance contracts written in Maryland. So, you wouldn't be able to continue under the plan if you worked for a Maryland subsidiary of, say, an Ohio company that bought insurance issued in Ohio for workers. Also, the law doesn't apply to plans where the employer pays the claims itself. Check with your employer to find out what kind of plan you have.

•Individual conversion policy: In some states, including Maryland, you are entitled to buy a policy from the insurer providing your former employer's plan regardless of your health. Benefits under these conversion policies are typically stingier than what you had before and the premiums are higher, Wilson says. "It really wouldn't be a good option if you have other options," she says.

•Individual insurance policy: If coverage through COBRA is too rich for you, don't assume you can't afford insurance and must go without it. You might find cheaper coverage by buying an individual policy for yourself and family. Insurers will ask questions about your health to determine whether to sell you a policy, at what cost and what coverage might be excluded. Once you qualify for a policy, it can't be canceled unless you drop coverage or reach the policy's lifetime benefit cap, which often runs $3 million to $5 million, says Sam Gibbs, senior vice president of eHealth, which owns online broker eHealthInsurance. Gibbs says the price difference between COBRA and an individual policy can be significant. Last year, the average policy cost $148 a month for a single person, compared with $227 under COBRA in Maryland. A policy for a family averaged $344 a month, compared with $656 under COBRA.

COBRA premiums tend to be higher because employer plans have rich benefits, Gibbs says. To keep costs down, "only buy the coverage you need," he advises. A healthy 22-year-old male, for instance, can go without maternity benefits or prescription drug coverage, he says.

news source : http://www.baltimoresun.com/

Legislators oppose health insurance fee hike

Lawmakers opposed an item in a draft bill that could force Vietnamese to pay higher mandatory health insurance fees at the National Assembly’s most recent two-day debate. Most legislators said the proposed increase on compulsory health insurance fees would prevent residents from obtaining proper health care. In Vietnam, workers are put under the compulsory health insurance program, which requires a monthly fee of 3 percent of the employee’s salary. This amount is jointly paid by the employee and his or her company.

According to a government report presented by Minister of Health Nguyen Quoc Trieu, the proposed increase to 6 percent of the employee’s salary was meant to balance the national insurance fund, which runs an annual deficit estimated at VND2 trillion (around US$123 million). A report prepared by the National Assembly Committee on Social Affairs suggested capping the fee at 5 percent of the employee’s salary. The report said two percent should be paid by the worker and three percent by the employer. “I agree with the committee’s report, considering that the salaries of state employees aren’t very competitive,” said Deputy Nguyen Thi Sang, who represents Tien Giang Province.

Instead of doubling the fees to balance the national insurance fund, Deputy Nguyen Thanh Tam of Tay Ninh Province asked government agencies to make companies pay their employees’ full insurance fees. According to the Ministry of Health, only 50 percent of workers actually pay their insurance fees. Deputy Luu Thi Chi Lan of Vinh Phuc Province suggested the government increase the fees at a slower rate. According to deputy Rcom Sa Duyen from Gia Lai Province, the Ministry of Health should provide a guideline of all costs paid for by insurance so that patients do not run up bills on unnecessary treatments. The draft bill also suggests putting students on a mandatory health insurance starting in 2010 while covering farmers, fishermen and family businesses on the compulsory program by 2014.

Health insurance for these groups is currently voluntary. Most legislators supported the government’s goal of insuring 100 percent of its citizens, but said the government must increase its funding for those under the poverty line and others who cannot, by any means, pay insurance fees. Assembly members also asked that patients be allowed to use their health insurance card at all hospitals nationwide instead of only the one specified on their cards. “No one wants to pay hundreds of thousands of dong traveling to the required hospital just to receive some tablets for their cold,” deputy Tran Hong Viet said. According to the government report, about 42 percent of the country’s population is covered by health insurance.

news source : http://www.thanhniennews.com/

Aviva USA granted patent for fixed indexed life insurance

Aviva USA has been granted US patent for 'maximization of a hedged investment budget for an index-linked insurance product' by the US Patent and Trademark Office.The patent involves Aviva's risk management processes related to the minimum guarantees on its indexed universal life insurance products.Thomas Godlasky, CEO of Aviva North America, said: "The granting of this patent underscores Aviva's commitment to innovation in the area of product development.

"It is truly a testament to the outstanding work being done by Aviva's product development team. As a company, our primary focus is on providing the best products and services to our customers, and the innovation behind this patent exemplifies that commitment."

news source : http://www.insurance-business-review.com/

The 5 Basic Forms Of Life Insurance

If you're like I used to be, you can get confused with all the different life insurance policies. Trying to understand what is what can be difficult at times. Here's an easy to understand look at the 5 different types of life insurance and what they are.

Annual Renewable Term Policy

Without a doubt, this is the most typical form of life insurance sold. With its level death benefit it is generally used to satisfy any outstanding bills and debts in the unfortunate event of your passing away. This life policy is relatively inexpensive for younger people. As you get older the more expensive the policy costs. Annual renewable term life is the purest form of lifeinsurance available.

Decreasing Term Life Policy

A decreasing term life policy decreases each year that the policy is in force. Why would you need a policy like this? It's mainly used to pay off a mortgage in the event of your death. Every other type of lifeinsurance other than decreasing term has a level death benefit.

5-Year and 10-Year Term Life Policies

5-year, or 10-year term life policies are for people who need level protection for a set number of years only. They are generally very inexpensive and are non-renewable.

15-Year and 20, 25, and 30-Year Term Life Policies

More of these term policies combined are sold than any other type of term life insurance. You can choose the length of term life coverage you need and pay a set level premium for that number of years.

These policies work very well with families with children. For example: you have a child that is 5 years old and you want to be sure that your spouse and child are taken care of in the event of your death. Your family will need to have sufficient cash on hand to not only meet the day to day needs of life, but to also have enough for your child's education. This can be a substantial amount of money.

A 15 or 20-year term life policy would fill this need perfectly. The premiums for this type of policy are also very affordable.

Whole Life Policies

This category also includes universal life, variable universal life, and variable whole life insurance policies. These life insurance policies will cost you much more per month with their premiums, but they also help you accumulate cash over a longer period of time. You can think of these types of policies as lifeinsurance with a savings account attached.

Premiums on whole life are set at the time you purchase the policy. Your age and health will determine the amount of your premium. As you pay your premiums you're also building cash value in your policy. Although the returns are not as high as you can get with other investments, you also have the lifeinsurance benefit in the event of your death.

Variable life, and variable universal life policies, can give you an even higher rate of return due to their returns being based on various investments.

news source : http://www.bestsyndication.com/

Citi offers $250m to hedge fund investors

Citigroup is coming under pressure to bail out investors in one of its troubled hedge funds, in another embarrassment for a company already among the biggest losers from the credit crisis.

The company has begun quietly asking private clients to accept a $250m compensation package, in return for dropping legal claims against the company. Banks which have sunk an estimated $1.6bn into the fund are also examining their legal options.

The problems stem from Citigroup's Falcon Strategies hedge fund, an investment vehicle that traded mortgage bonds, government debt and a range of credit derivatives, which began experiencing big losses when the credit markets ran into difficulties last summer. Thousands of Citigroup clients – advised to invest in the fund by brokers at its Smith Barney wealth management division – face being wiped out.

And three big regional banks, including Wachovia, one of the largest in the US, have also been forced to write off large parts of their investments, after putting some internal lifeinsurance money into Falcon. Wachovia posted a $315m loss on life insurance assets, largely as a result of its $1bn exposure to Falcon. Fifth Third of Cincinnati is suing the investment advisers which suggested it sink $612m into Falcon and which, it alleges, failed to pull the money back out again when the first signs of trouble emerged.

Citigroup is not involved in Fifth Third's lawsuit but it does face a class action from private clients. The action is being led by Robert Zeff, a Smith Barney client in Florida, who put $500,000 into the Falcon fund. He says the fund was marketed to clients as "an extremely low-risk investment".

news source : http://www.independent.co.uk/