IC-33 Chapter 5

Chapter 5

  1. In an endowment policy of life insurance, we give the policy holder at maturity the SA i.e. Sum Assured & Bonus-Any outstanding premium.
  2. On attestation of policy signature of authorized officer of insurer is required.
  3. Frequent switching is not allowed in a ULIP Plan because it increases investment risk.
  4. If the full Sum Assured is not paid at the time of maturity and it happens to be an endowment plan then the reason for the same is that, that plan is a MONEY BACK PLAN.
  5. Term Insurance plan is best suited for the Home Loan Cases.
  6. If a person who is running a multi chain company and wants to take insurance then the best option available for him is that HE CAN TAKE KEYMANS INSURANCE.
  7. If a couple has a kid of say 7 years then the best life insurance plan for them would be the CHILD INSURANCE PLAN WHICH CAN BE TAKEN OUT IN THE FORM OF ENDOWMENT PLANS, MONEY BACK PLANS OR ULIP’s
  8. If a life insurance agent has given two policies to different persons but of the same term then their can be a difference of commission that, that agent would receive just of the simple reason that BOTH HAVE CHOOSEN DIFFERENT KIND OF POLICIES.
  9. If a person has proposed or taken a joint life policy in the name of himself and his wife then HE i.e. THE HUSBAND WOULD BE RESPONCIBLE TO PAY THE PREMIUM UNDER THE POLICY.
  10. If a policyholder wants to make a complaint through Consumer Protection Act (COPA) then the time within which he can file the complaint is TWO YEARS.
  11. In case of a pure endowment policy the amt. of Sum Assured would be payable only when he survives to the full term of the policy. (For exp. If the policy is of 30 years he should survive for 30 years to get the amt. of Sum assured.
  12. Term insurance plans gives only DEATH BENEFITS.
  13. The Maximum premium up to which income tax exemption can be availed by the policyholder is Rs. 1,00,000.
  14. Low risk products give LOW RETURN.
  15. If a person wants save funds for his son’s education and is risk averse then ENDOWMENT PLAN WOULD BE BEST FOR HIM.
  16. If a group of people are insured in one single policy then they might be the EMPLOYEES of one employer.
  17. Policyholder can take loan under ENDOWMENT type of policies.
  18. LIEN is considered as a substitute to charging a high premium for a high risk.
  19. In case of a Pure Endowment policy NO DEATH BENEFIT IS PAID as Pure Endowment policy gives only Maturity benefit.
  20. If IRDA is unable to discharge his functions or duties then the Central govt. is having the POWER TO SUPERSEDE THE IRDA BY ISSUING NOTIFICATION.
  21. Investment or Payment is Kisan Vikas Patra under Post Office Scheme is done LUMP SUM FOR A FIXED PERIOD OF TIME.
  22. Joint Life Insurance Plan offers insurance coverage for two persons under one policy, wherein each life is underwritten separately. Along with Husband and Wife it can cover the partners of a business but CAN NOT COVER BROTHER AND SISTER.
  23. The two basic elements of most Life Insurance Plans are DEATH BENEFITS AND MATUIRITY BENEFITS.
  24. Adverse Selection occurs when a group of individuals try to COVER ONLY PARTICULAR MEMBERS OF THE GROUP.
  25. While deciding policy for a child the INFLATION factor must be taken into account.
  26. Section 80 (C) of Income tax act, 1961 provides income tax exemptions for NATIONAL SAVING CERTIFICATES, EQUITY LINKED SAVING SCHEMES, and PRINCIPLE COMPONENT OF HOME LOAN but not for PREMIUM PAID ON HEALTH INSURANCE POLICIES in which exemption is given under section 80(d).
  27. Rating in Fact finding indicates the RISK APPETITE OF THE CLIENT.
  28. In micro insurance minimum cover is 5000 and maximum cover is 50000.
  29. If a claim arises after 2 years in a life insurance policy then it is considered as a NON EARLY CLAIM and before two years if claims occur, then it would be considered as EARLY CLAIM.
  30. SSS i.e. Salary Saving Scheme is not a specific plan rather it is a measure to pay the premium directly through the salary of an employee.
  31. If a person has recently joined a job in which right now he is not fully settled in terms of money but in the future he would be in a healthy financial condition, then he should go for a CONVERTIBLE TERM INSURANCE PLAN.
  32. Fund Switching is the special feature of ULIP’s that ensures customer’s risk profile, for a long time insurance policies.
  33. TERM INSURANCE plan would suits if a person is looking for protection of the family.
  34. If a person is the only earning member of his family and his wife, children and parents are dependents on him then he should go for TERM INSURANCE which is the immediate need in his case.
  35. Agent’s Principal Loyalty should be for the insurance company and the policyholder or if it is a Joint Life policy of husband and wife then towards Husband, Wife along with the insurance company.
  36. MDRT Stands for Million Dollar Round Table.
  37. If a customer is not satisfied with the insurance company or the plan of the insurance company then he can send back the policy within 15 days of receipt of this policy. This is called Free Look or Cooling off, cancelation of policy.
  38. In case of presumption of death, it is necessary to pay the premium until the court decree.
  39. The income of an individual can be protected with the help of a TERM LIFE POLICY.
  40. Micro Insurance can be transacted by both the Life and Non Life insurers.*
  41. If a person wants a life cover for 20 years and also wants to have a modest amt. if he survive those 20 years then he should buy an ENDOWMENT PLAN.
  42. Long Term protection need of a couple can be met through a TERM INSURANCE.
  43. Flexibilities like partial withdrawal and premium holidays are possible with UNIT LINKED INSURANCE PLANS.
  44. Riders can be attached to a ULIP Policy. *
  45. The Maturity proceeds of a life insurance company are exempted from tax liability.
  46. If two persons takes same policy for same policy term then one would be paying more, the reason for this is he is HIGHER in age than the other one.
  47. In a joint Life policy the Persons responsible for the contract are INSURER AND BOTH THE LIFE INSURED.
  48. In ULIP for a Single Premium Policy the Minimum Sum Assured would be 1.25 Times of single premium. For exp. For 50000 premium policy the Min. SA would be 50000*1.25=62500
  49. Where annually increasing flexible premium operates under a life insurance policy then 5 % of increase would generally apply.
  50. In Group Insurance Plans the parties to the contract are Master Policyholder and the insurer.
  51. If a person has taken a home or house loan then the best insurance plan for him would be the TERM PLAN.
  52. If a customer has mentioned that he is a drinker then the insurer can mention this information in “ENDORSEMENT “Part of the policy document.
  53. If a person wants a constant life cover and can not afford to pay high premiums then the best suited product for him would be a TERM PLAN.
  54. The Primary Underwriter for the client is the AGENT.
  55. If a person wants to accumulate a lump sum for say 20 years but does not require life cover then the PURE ENDOWMENT POLICY will be suitable.

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