Chapter 7

  1. Total of Rs. 100000 that is exempted under IT Act, 1961 includes premium paid towards Pension Fund policy or Annuity policy also and the tax exemption in income tax would depend on person’s income slab.
  2. In an annuity certain policy if the policyholder or annuity holder survives the term then the pension or annuity would be continued to be payable to him till he dies.
  3. A person can opt for the riders under a policy but the SA of rider should not exceed the SA of the basic plan.
  4. An insurance broker represents the buyer of the insurance policy but is remunerated by the insurer/Insurance Company.
  5. In case of Critical Illness rider the insurance company would pay the claim on the Diagnosis of the Critical illness of the policyholder. Critical Illness Rider is not paid in case the policyholder dies of Critical Illness.
  6. Health Plans of insurance covers Disease expenses, Covers hospitalization cost and helps in tax benefits.
  7. Open Market Option Feature of Pension Plans states that a policyholder or annuity holder can get pension from the different company than the company in which he had paid the premiums under his pension policy.
  8. In cumulative deposits banks pays the principal and total interest at the end of the term.
  9. Saving Needs of a particular individual is majorly determined by DURATION OF INVESTMENTS.
  10. WOP or Waiver of Premium is a rider which provides waiver of future premium in the event of disability or death of the policyholder so that policy is not lapsed due to death or disability. In WOP full SA is payable but this rider can not be attached to every policy as this is specifically mentioned in each policy whether we can attach the WOP with a particular policy or not.
  11. Hospitalization Care Rider pays for the treatment costs in the event of hospitalization of the insured person.
  12. If a person is Self Employed and wants to buy a pension plan for retirement then while calculating he would ignore the Gaps.
  13. Commutation is the feature of an ANNUITY POLICY.
  14. To avail income tax benefit at the investment stage premium should be maximum 20% of the SA.
  15. If a person has children say 2 and a wife and he wanted to buy a health insurance plan then we should suggest Family Floater to him instead of individual plans if he wishes to cover his Wife or Children.
  16. At Accumulation Phase of annuity plans, Customers has to pay the amt. in regular intervals to create purchase price or pension fund.
  17. If the benefits of annuity starts at the same day when annuity is purchased then it is known as IMMEDIATE ANNUITY.
  18. Annuity can be taken in Monthly, Quarterly, Half Yearly and Yearly.
  19. Under Surgical Care rider Treatment cost of surgery subject to terms and conditions.
  20. If some amt. is invested in the Senior Citizen’s scheme then the tax benefit available would be the whole amt. would be deducted from the total income up to Rs. 100000.
  21. No Maturity Benefits are provided under riders.
  22. In a pension plan 1/3 of the corpus money can be taken by the policyholder/annuity holder free of tax. This is called the commutation.
  23. In Micro Insurance Plans Weekly premiums are accepted.
  24. The importance of health insurance plans is that it meet any type of medical emergencies, major hospital and treatment expenses and also meet expenses post hospitalization due to loss of income.
  25. Under Health insurance plans there is no Maturity Benefit.
  26. The health plans which give coverage for family members also are known as FAMILY FLOATER HEALTH INSURANCE PLANS.
  27. If a person bought a share for some amt. says 110 and sold for say 630. It is called Capital Appreciation
  28. Pension Plan is the suitable savings Plan for the Senior citizens.
  29. If a person invests in Senior Citizen’s Saving Scheme then his investments would be deducted from taxable income.
  30. Brain Surgery is not covered under Critical Illness Rider.
  31. Waiting Period provision is provided in the health insurance plans to prevent PRE-EXISTING DISEASES.
  32. The benefit of taking Open Market Option in Pension Plan is that the annuity holder can improve the Annuity Rate.
  33. ULIP Funds needs to be selected to receive 4.5% guarantee on pension.
  34. Riders will help the customer in life insurance by allowing policyholders to customize their insurance cover with additional benefits.
  35. In Term Insurance rider or Disability rider or any other rider apart from Critical Illness or health rider, the total premium of the riders should not be more than 30% of the base premium and for CI or Health rider it can be 100% of the base premium.
  36. If an agent told the policyholder to surrender his existing policy and take out a fresh one from him then this is called CHURNING.
  37. The Claim amt. received from CI Rider can be spend for UNSPECIFIED REASONS.
  38. If a person is involved in frequent traveling then he should go for Accidental Rider along with saving insurance plan.
  39. A low persistence ratio for the insurance company means that a large number of policies have lapsed or surrendered resulting in loss of profit.
  40. Life expectancy in India is constantly improving which also brings challenges but through Health Insurance Plans these challenges can be covered.
  41. The guaranteed return in ULIP’s pension plan can be max. 4.5% 0r 0.045
  42. After Critical Rider is claimed by a policyholder then it is terminated from the policy although policy can be in forced.
  43. Under Family Floater Health plan the proposer, his wife and certain fixed maximum say 2 children can be covered.
  44. If any amt. Say 30000 is invested in the insurance to get the tax benefit then investor have to wait for at least 5 Years.
  45. No Claim Bonus can be given into a health insurance policy by, Increasing the SA for free.
  46. While calculating Pension figures required at the time of retirement Taxation and the inflation are the two factors which should be taken into account while planning.
  47. While calculating expected returns from investments and savings, an individual should make provision for Taxation & Inflation both.
  48. In a Money Back Policy a customer gets periodic benefits without any claim and when he died during the policy his nominees get Sum Insured.
  49. To identify suitable product, their main features and tax treatment, is the role of an Agent.
  50. The Concept of Risk Diversification is applicable in the MUTUAL FUND.
  51. In Daily Hospitalization cash benefit scheme the daily amt. is fixed and will never be more or less than the actual cost of treatment.
  52. It is always advisable to purchase Life or Health insurance plan at the early ages because with the increase in age the premium amt. also increases.
  53. If a person wants to take a life insurance policy and wants to take a health insurance policy then one best option available for him is TAKING LIFE INSURANCE PLAN WITH CRITICAL ILLNESS RIDER.
  54. If insurance company is paying fixed amt. on daily basis under a health policy then is certainly a DAILY HOSPITALIZATION CASH BENEFIT PLAN.
  55. If a person brought a pension or annuity plan for some years say 20 years then it is called a DEFERRED ANNUITY Plan.
  56. E -sales refers to insurance products sales through INTERNET.
  57. If an individual need lump Sum amt. at the age of retirement, then the amt. he needs to invest annually for the goal would depend upon DEFERMENT PERIOD, AMT. WHICH IS REQUIRED & INVESTMENT TOOL USED FOR THE INVESTMENT.
  58. In rising life expectancy the need for pension policy is increasing as retirement planning is MORE NECESSARY.
  59. In guaranteed annuity option the annuity holder/policyholder would get annuity till no. of Years guaranteed and continued till annuitant lives.
  60. If the amt. of premium is less than or equal to the 20% of the SA then the whole maturity proceed of that policy would ne fully exempted from tax.
  61. Certificate from village panchayat is considered as a Non Standard Age Proof.
  62. If a person is retiring within some months or say within a year then he should go for IMMEDIATE ANNUITY.

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