Statesman News Service
BHUBANESWAR, June 6: Private life coverage company, ING Vysya Life will open up 10 new subdivisions in the state this year. The projected locations include Paradip, Balasore, Bolangir, Jeypore, Angul and Keonjhar. This was informed by regional vice-president, ING Vysya Life Mister Syed Sarfraz Ahmed. Mister Ahmed, who was addressing the Press here today, said: "the blessing of coverage regulating development authorization have been sought for the projected branches. The subdivisions would be opened in two phases". At present, there are eight subdivisions functioning in the state. Talking about the enlargement plans, he informed that the company means to increase the agent strength to 6,000. On the two new merchandises launched today ING term life and ING term life plus, Mister Ahmed said: "that these term life policies are meant to supply fiscal security to the customer's household in lawsuit of the ill-timed decease of policy holders".

Have you ever wondered how much you can salvage by just choosing the right manner of coverage premium payment on your life insurance policy?

Most life coverage companies add an other cost to your insurance premium if you pay in episodes rather than in one single shot during the year. So, the insurance insurance premium under the yearly premium option in a policy would be less than those under semi-annual, quarterly or monthly options.

This is true for all life coverage policies other than unit of measurement linked coverage programs (ULIPs). All traditional coverage programs including term assurance, endowment, money back and whole life policies would bear down a higher insurance premium for the monthly manner and less for a annual mode.

Let us take the illustration of Life Insurance Corporation's gift plan, Jeevan Anand. The annual insurance premium for the policy for a certain age profile and policy term turns out to be Rs 5,461.

However, if the same individual opts for the semi-annual option, it is higher up at Rs 5,546 (Rs 2,773 x 2 payments in a year). As the frequence of payment cut downs from annual to monthly, the insurance premium be givens to increase.

Under the monthly mode, the policyholder would be paying 8.33% higher than what a annual insurance premium remunerator would pay for the same policy, even though he have opted for the same term and sum of money assured, and belongs to the same age group.

But, why do coverage companies make this derived function charge? It is not because the coverage company will gain an involvement on all the money that you have got paid at the start of the policy twelvemonth rather than in a little measure throughout the year.

Rahul Aggarwal, main executive director military officer of Optima Hazard Management Services explains, "Every clip the insurance company have premium, there is a banking cost and processing cost attached to it.

Hence, as the cyclicity of payment decreases, insurance premium additions slightly. Sum of three monthly payments is more than than than the quarterly payment; sum of money of two quarterly payments is more than the half-yearly payment; so on and so forth."

Moreover, coverage companies claim that they too can cut down costs involved in following up on clients who bury to pay their insurance premium on time. The frequence of phone calls would increase in lawsuit of quarterly and monthly premium.

Some of them also issue missive reminders on insurance insurance premium payment owed dates, which can be reduced if the premium paying frequence is yearly, rather than semi-annually, quarterly or monthly.

It have got also been establish that those who choose for the quarterly manner of coverage premium are more than prostrate to policy oversights than those who have a annual manner of payment, according to a interpreter of a private insurance company.

Chances of non-payment are less likely in the monthly manner as companies take a firm stand on electronic glade service (ECS). Some companies even penalise policyholders who take monthly manner of payment and make not choose for ECS, by levying other charges.

It also salvages you the hurting of asking your agent to come up place and accumulate the checks each calendar month or one-fourth and keeping path of the assorted owed days of the month in the full twelvemonth and whether the checks have got actually been debited toward insurance premium payment.

Under licence from

MUMBAI:
Customers who have got recently bought Life Insurance Corporation of India’s
newly launched unit-linked wellness coverage strategy Health Plus, will be in for a
shock. Especially if they were
counting on the fact that the full insurance premium amount will be eligible for tax
benefits under subdivision 80D. It
is reliably learnt that the Insurance Regulatory and Development Authority
(IRDA) have written to LIC on Thursday request it to divide the benefits. As per this, only the portion
of hazard insurance insurance premium that business relationships for basic wellness screen will be eligible for
benefits under subdivision 80D, while the balance or premium that travels towards the
unit-linked strategy will have got to come up under subdivision 80C. An IRDA functionary said since
the merchandise was linked to investings and earned a return, as per the Income-Tax
Act, that part of insurance premium was not eligible for benefits under subdivision 80D. Under subdivision 80D of the I-T
Act, a individual acquires a tax deduction on insurance premium paid towards mediclaim up to Rs 15,000
(Rs 20,000 for senior citizens). Section 80C lets investment
up to Rs 1 hundred thousand to help taxation benefits. This subdivision covers all other investment
options like the payments on common funds, life coverage premium, refund of
prinicpal amount of a place loan, national nest egg certification and even public
provident fund. Adding one more
component in the word form of a unit of measurement linked wellness coverage plan, will intend the
investor will have got to apportion littler amounts to other investing avenues or
forego the possibility of getting any taxation benefit on this scheme. The part of hazard premium
assigned to the wellness screen in Health Asset is littler compared to the premium
amount assigned to the unit of measurement linked component. A senior LIC functionary said
that given this development the corporation will have got to discourse the issue
further and see its options. The functionary also added that LIC will
structure future merchandises in such as a mode to give upper limit taxation benefit under
section 80D. This change, say
agents, is going to be a immense disadvantage to customers. "Most of my customers
have been looking forward to a merchandise that lets them wellness cover, have a tax
benefit and also gives them a tax return on investment. That is the gross sales pitch we
have been using," states a Mumbai-based LIC agent. The agent told TOI that LIC had informed the agents that the taxation benefit available to customers
will be subdivision 80D.