What is the total premium collected by SBI Life?

Month: July 2021

What is surrender value in insurance? (Types, Benefits & Examples)

Post author By parastar
Post date July 26, 2021

What is surrender value in insurance? (Types, Benefits & Examples)

Have you ever wondered about the concept of surrender value while purchasing an insurance policy? You are not alone, policyholders often want to understand the concept of surrender value, and we are here to elucidate the same.
This article will talk about the following important aspects about the concept of surrender value in life insurance:

What is surrender value?
Types of surrender value
Benefits of having a policy with a surrender value?
Examples of a policy having a surrender value

What is surrender value?

There are situations where the policyholder may want to terminate their insurance policy before maturity. Upon policy surrender, the insurance company is liable to pay whatever is the current surrender value (minus company charges and penalties) to the policyholder. This is payment is called as the surrender value of a policy. A surrender value is usually available when a policyholder purchases an endowment plan. That being said, a surrender value is also available in certain other types of insurance policies.

Surrender value factor

The surrender value is dependent on your surrender value factor. For instance, if your insurance policy has a has a surrender value of 30%, you will receive only 30% of the total premium paid as a surrender value. Different types of policies have different surrender value factors.

Your surrender value factor will be mentioned on your policy brochure and policy bond.

Types of surrender value

Guaranteed surrender value

A guaranteed surrender value is paid based on the surrender value factor. For instance, if a person has surrendered a policy after 5 years and has a surrender value factor of 30%, he will receive 30% of the total premium paid as a surrender value. Other additional company charges may also apply.

Special surrender value

A special surrender value is an amount that is equal to or higher compared to the guaranteed surrender value. This special surrender value is calculated based on the paid-up policy value and the total accrued bonus (multiplied by the guaranteed surrender value factor).

Benefits of having a policy with a surrender value?

Peace of mind: Having a policy with a surrender value ensures that the policyholder will get a particular lump sum payment even if he decides to terminate the policy before maturity. If you wish to avail of this benefit, ensure that your policy has a surrender value component linked with it.

Flexibility: A policyholder can prematurely terminate his policy knowing he will get a surrender value. This provides flexibility to the policyholder. He can then decide to enroll with another insurance company.

Payment of expenses: The policyholder can use the surrender value to pay for his expenses like living expenses, marriage expenses, medical expenses, educational expenses, etc. Policies should not ideally be surrendered before maturity but in certain rare cases the policyholder may be forced to surrender his policy due to certain unfortunate conditions.

Examples of a policy having a surrender value

Let us understand the concept of surrender value with 2 simple examples.

Example 1

Let us assume that Mr. Rishikesh has bought a ULIP life insurance plan from HDFC Life Insurance, having policy maturity of 20 years. He has paid his premium on time for over 10 years.
The total amount of premium paid by Mr. Rishikesh amounts to Rs 5 Lakhs. The company invested this premium into a mutual fund and the current value of Mr. Rishikesh’s fund is Rs 8 Lakhs.
Upon policy surrender, Mr. Rishikesh will receive Rs 8 Lakhs (minus company charges). This amount can be termed as Mr. Rishikesh’s policy surrender value. Post surrender, the policy will be terminated.

Example 2

Let us assume that Mrs. Shakuntala bought a LIC endowment insurance policy, having maturity of 20 years. Mrs. Shakuntala regularly paid her premium for 5 years and the total premium paid amounted to Rs 2 Lakhs. As her endowment policy has a surrender clause within it, she can surrender her policy and receive the Rs 2 Lakhs as her surrender value. Rest assured, the company will deduct their charges and penalties from this amount and then release the value to her.

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Life Insurance

SBI Life Insurance (Plans, Benefits, Claims & More)

Post author By parastar
Post date July 25, 2021

Learn about SBI Life Insurance (Plans, Claims & More)

SBI Life Insurance is a joint venture between the State Bank of India (SBI), the largest government-owned banking and financial services company in India, and BNP Paribas, a multinational financial services company headquartered in Paris, France.

The company was formed in March 2001, ever since it has had a far-reaching presence across the nation operating through 950+ offices, more than 17,000 employees, 16,000+ associated agents, and more than 28,000 partner branches.

SBI Life currently serves millions of families across India with its wide range of insurance products and services. it offers a broad variety of insurance plans catering to all types of customers and insurance buyers. The company provides numerous plans like pension, savings, term, unit-linked plans, etc for individuals, families, and groups at an affordable premium.

In this article, we will discuss the following

Company specifications
Plans offered by SBI Life Insurance
Awards received
Why choose SBI Life Insurance?
How to buy SBI Life Insurance plans?
SBI Life Insurance claim process

Company Specifications

Claim settlement ratio	94.52%
Solvency ratio	234%
Branches	950+
Headquarters	Mumbai
Website	www.sbilife.co.in
Customer care	Toll free number : 1800 267 9090
Email ID	info@sbilife.co.in

Plans Offered by SBI Life Insurance

SBI Life Savings Plans

Plan name	About the plan
SBI Life Smart Platina Assure Plan	This is an endowment assurance savings plan that offers lumpsum payouts on maturity period and also provides the benefit of a life cover.
SBI Life New Smart Samriddhi Plan	This plan offers a death benefit that provides a lumpsum payout in case of demise of the policyholder or provides a lumpsum payout along with any accrued bonus upon surviving the maturity period.
SBI Life Smart Future Choices Plan	This is a multi-layered plan offering several benefits like cash bonus, survival, or maturity benefit along with a life cover. It is available in two different variants Classic and Flexi Choice.
SBI Life Shubh Nivesh Plan	This non-linked, participating life insurance product offers a life cover, income, and savings components clubbed together in the same plan.
SBI Life Smart Bachat Plan	This endowment plan financially protects you and your family from the uncertainties of life. The plan offers maturity benefits in which the basic sum assured plus accrued bonus if any will be paid upon maturity period or the same shall be paid as a death benefit in case of death of the policyholder. This plan is available in two options A and B plan.
SBI Life Smart Hamsafar Plan	This is a savings cum life insurance plan that covers legally wedded couples. In this plan, a lump sum payout will be paid to the surviving policyholder in case of the death of any insured partner.

SBI Life Protection Plans

Plan name	About the plan
SBI Life eShield Plan	This is a term insurance plan that offers life cover to the policyholder. In this plan, the company will offer a sum assured to the nominees of the policy in case of the unfortunate death of the policyholder.
SBI Life Saral Jeevan Bima Policy	This is an affordable life insurance plan that guarantees a payout of the base sum assured to the beneficiaries of the policy in case of the death of the insured individual.
SBI Life- Poorna Suraksha Plan	This term plan provides coverage against death and critical illnesses. It also waives any future premiums in case the policyholder is diagnosed with any of the listed illnesses defined in the policy.
SBI Life Sampoorn Cancer Suraksha Plan	As the name suggests, this plan by SBI protects against all stages of cancer. In this plan, the policyholder will receive lumpsum payments during minor, major and advanced stages of cancer. This plan is available in three variants: Standard, Classic, and Enhanced Plan.
SBI Life Corona Rakshak Policy	This is a cash benefit plan that provides a lumpsum payout of 100% sum assured after the first diagnosis of COVID-19.
SBI Smart Swadhan+ Plan	This is a life insurance plan that offers a 100% return on premiums paid upon the maturity period.
SBI Life Grameen Bima Plan	This is a micro-insurance policy for the economically weaker sections of the society, under this plan guaranteed sum assured will be paid to the nominees in case of death of the policyholder.
SBI Life Smart Shield Plan	This is a regular term insurance plan that offers only life cover to the policyholder. There are no maturity benefits available under this plan.
SBI Life Saral Swadhan+ Plan	SBI Swadhan + plan offers a death benefit and also returns 100% of premiums paid upon completion of 10 years of the policy period or 115% of the premium paid upon completion of 15 years of the policy period.

SBI Life Retirement Plans

Plan name	About the plan
SBI Life Retire Smart Plan	This is a unit-linked plan which provides a life cover and also pays back 100% of your premiums paid upon the maturity period.
SBI Life Annuity Plus Plan	This is an annuity plan that also offers bonus payouts. The premium for this policy has to be paid in a single lumpsum amount and the annuity begins instantly from the next month, six months, or a year as selected by the policyholder.
SBI Life Saral Pension Plan	This traditional pension plan takes care of your financial needs post-retirement. It offers a life cover and bonus payouts during the policy period.

SBI Life Unit- Linked Plans

Plan name	About the plan
SBI Life eWealth Plan	This plan is designed to offer dual benefits of a life cover and market-linked returns on investments growing your corpus. It is available in 2 types of variants.
SBI Life Smart InsureWealth Plus	This unit-linked plan offers life insurance cover and also increases higher fund value through market-linked returns. The plan provides 3 types of different investment strategies to invest in accordingly: Smart choice strategy, Auto asset allocation strategy, and Trigger strategy.
SBI Life Saral InsureWealth Plus	This is a unit-linked and non-participating life insurance plan that provides the advantage of life coverage along with monthly payout options
SBI Life Smart Wealth Builder Plan	Smart Wealth Builder Plan offers life insurance cover and 11 types of investment funds to invest in to build a solid corpus for the policyholder and their loved ones.
SBI Life Smart Power Insurance Plan	This ULIP plan offers life insurance coverage in which the company will pay the death benefit to the nominee or a lumpsum amount of the fund value will be paid to the policyholder on surviving the policy tenure. The plan provides various fund options – Increasing and Level Cover Options to choose from.
SBI Life Smart Elite Plan	Like most Unit-linked plans this plan also offers investment returns and life insurance cover, not only that this plan also offers accidental life coverage providing 360-degree protection.
SBI Life Smart Privelege Plan	This plan offers the policyholder 11 kinds of investment funds to invest in for creating a solid corpus along with the advantage of a life cover.
SBI Life Wealth Assure Plan	This unit-linked product offers a life insurance cover and market-linked returns with a one-time premium payment option.

SBI Child Insurance Plans

Plan name	About the plan
SBI Life Smart Champ Insurance	This child insurance plan is intended to financially provide for the child’s future in the absence of the parents. It offers death and accidental disability coverage along with maturity benefits during the policy period.
SBI Life Smart Scholar	This ULIP plan offers a lump sum payout of the base sum assured or 105% of the total premiums paid, whichever is higher will be paid in case of the death of the insured parent. All future premiums will also be waived off and the accumulated fund value will be paid instantly in the absence of the insured parent.

Awards Received

Below given are a few awards and accreditation of SBI Life Insurance

‘Best Life Insurance Company’ at ICC Emerging Asia Insurance Conclave awards 2019.
‘SMART Award- Life Insurance in Large Category’ at ET Insurance Summit in Mumbai, 2019.
CCircle Award for 2020 under the category ‘Financial Services Company of the Year’
Winner of the ‘Golden Peacock Award’ for Risk Management in the year 2018.

Benefits and Features of SBI Life Insurance

Claim Settlement Ratio

SBI Life Insurance has a stellar track record when it comes to settling genuine insurance claims of its customers. As per IRDA, the company has an ideal track record of 94.52% for FY 2019-2020, indicating that the company is reliable and dedicated when it comes to settling claims of its customers and not depriving them of their rights.

Highest Solvency Ratio

According to IRDA, all life insurance companies must maintain an ideal solvency ratio of 1.5% in India. The solvency ratio is a parameter that estimates the financial reliability and trustworthiness of a company. SBI Life Insurance has the highest solvency ratio among all life insurance companies in India, indicating that the company has strong financial statements and is extremely reliable when it comes to meeting its long-term debts or obligations.

PAN India Presence

The insurer operates with 950+ branches and offices all across the country providing access to all kinds of customers and insurance buyers to avail of their services.

Budget-Friendly Plans

The company offers highly comprehensive plans financially shielding the policyholder and their loved ones from uncertainties of life at an affordable premium.

Wide Range of Plans and Products

The insurer provides a wide range of plans that cater to the needs and requirements of all kinds of customers and insurance buyers.

Trusted Name

SBI Life is among the oldest insurance companies in the country and has grown tremendously, that today it contributes significantly towards the insurance industry and is one of the most trusted life insurance companies in India.

How to buy SBI Life Insurance plans?

You can buy directly through their online portal or through a registered insurance agent. Learn how you can find a registered insurance agent using IRDA Agent Locator.

SBI Life Insurance claim process

In case of the unfortunate death of the policyholder, the nominee or the claimant needs to follow these simple steps to claim the policy benefits.

Online process

Step 1– Inform the company about the event by visiting their official website and filling the claim form with the requested details. You can also inform the insurer by writing to them on the email address at claims@sbilife.co.in or you can connect with them on their toll-free number 1800 267 9090.
Step 2– After you have informed the company about the same, you are requested to submit the following supporting documents to initiate the claim further.
Step 3– After you have submitted all the documents to the insurer, the insurer will thoroughly verify the claim along with the policy terms and conditions. After thorough verification, the company will approve the claim accordingly.
Step 4– Once the decision is taken, the claim amount will be released as per the terms and conditions of the policy.

Note: For any further queries regarding the claim you can write to info@sbilife.co.in.

Offline process

Follow these simple steps for the offline claim process with SBI Life Insurance

Step 1– Inform the insurer about the event on their toll-free number i.e 1800 267 9090 or by visiting the nearest SBI Life Insurance office or branch.
Step 2– Submit the following supporting documents to the company.
Step 3– The company will thoroughly verify the claim along with the policy terms and conditions and will approve the claim accordingly.

Documents Required

Mandatory documents
Claim form
discharge/death summary
Nominees or claimants ID proof

Additional Documents

Medical records, admission notes, test reports, etc.
Original death certificate
Cancelled cheque by the claimant
Copy of FIR
Tax residency certificate
Medical attendant’s certificate
Hospital treatment certificate

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SBI Life Smart Scholar ULIP Child Plan (Features and benefits)

How do I cancel my SBI Life Insurance policy?

Is SBI Life insurance a private or government company?

Life Insurance vs Health Insurance

Frequently asked questions about SBI Life Insurance

SBI Life Insurance Company was incorporated in March 2001.

IRDA registration no: 111

Yes, SBI Life Insurance is regulated by the IRDA.

Yes, SBI Life is a listed on the BSE and the NSE.

Yes, the company provides a host of online tools to its customers including retirement planner, health tax saver planner, Section 80C Tax Calculator, etc.

₹ 2.5 trillion (As of 2022)

₹ 300 billion (As of 2022)

Life Insurance Corporation

How to take a loan against your LIC policy (Simple Guide)

Post author By parastar
Post date July 22, 2021

How to take a loan against your LIC policy (Simple Guide)

Are you looking to take a loan against your LIC policy? This article will guide you on how you can do that in simple steps. There are a lot of times where you wish you could take a loan against your existing LIC policy, be it to pay for education expenses, unforeseen medical expenses, or anything else.

Some LIC policies offer their policyholders the flexibility to take a loan against their LIC policy, this could be a massive boon during challenging times for policyholders.

Further, it is also important to know if your LIC policy does offer you this benefit, in case the need arises.

This article will be touching base on the following important topics:

LIC policies that offer loans
The process to apply for a loan against LIC policy
Required documents
Eligibility for availing of a loan
Benefits of availing a loan against your LIC policy

LIC policies that offer loans against a policy

LIC offers quite a few policies that provide a loan facility. If you have one of the below-mentioned policies, you can avail for a loan by keeping your policy value as collateral. Let us find out which policies are eligible for this benefit:

Policy name	Policy type
LIC Jeevan Umang	Whole life
LIC Jeevan Pragati	Endowment
LIC Jeevan Labh	Endowment
LIC New Endowment Plan	Endowment
LIC Jeevan Rakshak	Endowment
LIC Jeevan Lakshya	Endowment
LIC Aadhar Stambh	Endowment
LIC Single Premium Endowment Plan	Endowment
LIC New Jeevan Anand	Endowment
LIC Aadhar Shila	Endowment
LIC New Money Back Plan (20 years & 25 years)	Money back
LIC New Bima Bachat	Money back
LIC Bima Shree	Money back
LIC Jeevan Shiromani	Money back
LIC New Children’s Money Back Plan	Money back
LIC Jeevan Tarun	Money back

You can avail of a loan against your policy if you have any of the above policies. That being said, loans are available after the policyholder has completed 1-3 premium paying years.

The process to apply for a loan against LIC policy

You can apply for a loan in 2 ways, offline and online. Let us lay down both loan application processes for you.

Online loan application

Step 1: Register or log in through LIC e-services portal

If you have not registered on LIC e-services, you can view our LIC registration and LIC login guide. They will show you how you can easily register and log in to your LIC e-services account.

Step 2: Check if your policy is eligible to receive a loan

Step 3: Check the interest rate of the loan

Step 4: Check the available loan amount

Step 5: Apply for the loan

Offline loan application

You can also visit your nearest LIC branch and apply for a loan. Upon visiting, you can request the office to hand over a loan application form. Kindly fill in the form and attach your KYC details. Once done, hand over the form to the officer. He will get back to you at your registered phone number.

Required documents

The following documents are required on your part if you wish to apply for a loan:

Original policy bond
Aadhar card
PAN card
Voters ID
Bank account statement
Driver’s license
Duly filled loan application form

Eligibility for availing of a loan

The following are the eligibility criteria for availing of a loan with LIC

The policyholder must be an Indian.
The policyholder must be over 18 years of age.
The policyholder must have a running LIC policy.
The policyholder must have paid policy premium for 1-3 years (certain policies provide a loan if the policyholder has paid the first year’s premium, certain policies require that the policyholder has paid at least 3 years premium)

Benefits of availing a loan against your LIC policy

No credit score: You will not require a credit score to avail a LIC loan. The loan value will simply depend on your policy surrender value. The higher the surrender value, the higher the loan you can avail of.

Comparatively low-interest rates: As LIC is a government organization and majorly exists for the welfare of Indians, the interest rates charged by LIC are comparatively lower compared to private and public sector banks. LIC usually charges a 9%-11% interest rate on their loans.

Fast and easy processing: The loan processing is generally done very quickly as LIC already has all the details that they need with them. Online and offline loan processing will be done swiftly.

Flexible loan repayment: You can repay your loans via flexible bite-sized EMIs.

Loan on 90% of surrender value: You can apply for a loan up to 90% of your policy’s surrender value.

LIC Jeevan Akshay 7 (An Annuity Policy that Secures Your Future)

LIC vs Mutual Funds- Understanding the Difference

Features and Benefits of LIC Varishtha Pension Bima Yojana

LIC Jeevan Umang Plan- The Dual Benefit Policy

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Life Insurance

Max life Insurance (Plans, Benefits, Claims & More)

Post author By kashmira
Post date July 20, 2021

Learn about Max life Insurance (Plans, Claims & More)

Max Life Insurance was formed in the year 2000. It is a joint venture between Max financial services Ltd ( MFS), India’s largest non-banking private life insurance company, and Mitsui Sumitomo insurance company based in Japan. The company began its operations in 2001 since it has established a prominent name in the insurance sector.

Max Life Insurance is one of the leading names in India when it comes to life insurance and its services. The company offers a wide range of insurance plans ranging from term insurance, child plans, pensions, endowment, savings plans, and much more.

This insurer has a PAN India presence with more than 250+ branches across the nation and more than 15,000+ associated employees. Max Life serves millions of customers all around the year and has a robust claim settlement ratio of 99.35%.

The company has been awarded numerous awards such as ‘Life Insurance Provider of the Year’ and ‘Excellence in Claims Service’ to name a few.

In this article, we will discuss the following:

Company specifications
Awards received
Plans offered by Max Life Insurance
Why choose Max Life Insurance?
How to buy Max Life Insurance Plans?
Max Life Insurance claim process
Max Life Insurance plan renewal process

Important company details

Claim settlement ratio	99.35%
Headquarters	New Delhi
Solvency Ratio	207%
Branches	250+
Website	www.maxlifeinsurance.com
Customer care	Toll free number: 1800 200 5577, 1860 120 5577

Awards received

Below given are a few awards and recognitions won by Max Life Insurance.

‘Best Claims Service Leader award’ by CMO Asia Awards 2019.
Ranked 24th among ‘India’s top 100 companies to work in’ by great places to work institute.
Awarded ‘Best Term Plan company of the year’ by CMO Asia 2019.
‘Life Insurance Provider of the year’.

Max Life Insurance plans

Max Life Insurance term plans

Plan name	About the plan
Max Life Smart Term Plan	It is a customizable term plan that offers a death benefit, protection from 40 critical illnesses, and a return of premium option. This is a long-term plan that provides coverage up to 85 years of age and returns 100% of the premiums paid upon surviving the maturity period.
Max Life Online Term Plan	This term insurance plan offers high life cover at an affordable premium. It offers a lump sum payout under death benefit to the beneficiary of the policy in case of the death of the policyholder. This plan is available in 3 variants: Basic Life Cover, Basic Life Cover + Monthly Income, and Basic Life Cover+ Increasing Monthly Plan.
Max Life Premium Return Plan	As the name suggests, this plan offers life coverage to the policyholder and the benefit of 100% of premium repayment on the maturity of the policy tenure.
Max Life Super Term Plan	This is a regular term insurance plan that only provides a life cover to the policyholder. It offers multiple payout option choices.
Max Life Smart Secure Plus Plan	This is an ideal plan to beat the rising cost of inflation as it offers a death benefit, and also increases the sum assured up to 5% annually up to a maximum of 200%.
Max Life Saral Jeevan Bima Plan	This term plan offers a life cover as low as Rs 5 Lakh to protect your family in your absence. This plan provides long-term coverage up to 70 years of age.
Max Life Short Term Plan	This plan offers a guaranteed payout on the maturity of the policy period or a lump sum death benefit in case of death of the policyholder, one of the two.

Max Life Insurance ULIP plans

Plan name	About the plan
Max Life Fast Track Super Plan	This plan offers the benefit of life coverage and the extra benefit of capital appreciation through the market invested returns.
Max Life Online Savings Plan	This plan offers a life cover and a wide range of market funds to invest in as per the investment style of the policyholder. This plan is available in 2 kinds of variants.
Max Life Shiksha Plus Super Plan	This is a child unit-linked insurance plan that is designed to secure your child’s future by generating a sound corpus through market-linked investments and also providing the benefit of life coverage.
Max Life Forever Young Plan	This unit-linked plan is intended to generate strong savings for your retirements through market returns and also providing the benefit of a life cover.

Max Life Insurance Savings and Income plan

Plan name	About the plan
Max Life Savings Advantage Plan	This plan offers a life insurance cover to the insured and partly guaranteed payment of the lump sum amount on policy maturity.
Max Life Monthly Income Advantage Plan	As the name suggests, this plan offers an assured monthly income payment up to 30 years after the completion of the premium payment tenure or provides a death benefit payout in case of the death of the insured.
Max Life Guaranteed Income Plan	This is a guaranteed income plan which gives the flexibility to choose the kind of payout you want. It gives an option of monthly income payout for 10 years or an immediate lumpsum payout in case of any sudden financial emergency.
Max Life Whole Life Super Plan	This is a whole life insurance plan that provides life coverage up to 110 years of age.
Max Life Assured Wealth Plan	This plan will provide a lump sum payout of the sum assured under death benefit or guaranteed lumpsum payout upon the maturity period.
Max Life POS Guaranteed Benefit Plan	This plan will offer lumpsum payment to the family members under death benefit or pay the entire amount if the policyholder survives the maturity period.
Max Life Wealth Plan	This plan is designed to offer financial protection to you and your loved ones. Max Life Smart Wealth Plan provides a death benefit and a guaranteed maturity benefit to boost your savings. It is available in 4 variants.

Max Life Insurance health plans

Plan name	About the plan
Cancer Insurance Plan	This plan offers comprehensive coverage against all stages of cancer. It offers a sum insured payout to the policyholder at diagnosis of each stage of cancer.
Critical Illness Benefit	This plan is designed to provide a lump sum payout in the event of any diagnosis of listed critical illnesses.
Individual Health Insurance Plan	This plan provides extensive coverage to the insured in the treatment of any illness or injury.
Family Floater Health Plan	This is a family floater health plan that covers the hospitalization expenses of immediate family members up to the sum insured in one single policy.
Group Health Cover	This is a group health plan that covers the hospitalization expenses of individuals working together in a company or an organization.

Max Life Insurance Child plans

Plan name	About the plan
Max Life Future Genius Education Plan	This plan assists young parents to create a corpus for their children’s education expenses in the future. The company will pay a lump sum payout in case of the death of the insured parent.
Max Life Siksha Super Plus	This is a unit-linked insurance product designed to secure your child’s future by generating a sound corpus through market-linked investments and while also providing the benefit of life coverage.

Max Life Group Insurance Plans

Plan name	About the plan
Max Life Group Super Life Premier Plan	This plan offers life coverage to the insured group members. It also provides surrender benefits in which if in case the employee exits the company the policy will continue to provide coverage until the end of the policy term.
Max Life Group Gratuity Premier Plan	This plan offers a death benefit, surrender benefit, and maturity that provides a lump sum amount on policy maturity.
Max Life Group Term Life Platinum Assurance Plan	This term plan provides a high sum assured coverage at an affordable premium.
Max Life Group Saral Suraksha Bima Plan	This plan is designed to protect against accidental death or any disablement suffered due to an accident.
Max Life Group Credit Life Premier Plan	This plan is designed to repay any loan obligations in case of the untimely demise of the policyholder. The sum assured can be utilized to pay off any loan or debt by the family members in the absence of the insured.

Why choose Max Life Insurance?

Claim settlement ratio

Max Life Insurance has built a great track record over the years when it comes to settling claims. The company has a staggering claim settlement ratio of 99.35% suggesting that the company is extremely reliable and committed when it comes to settling genuine claims not depriving its customers of their rights.

Solvency ratio

According to IRDA, all life insurance companies must maintain an ideal solvency ratio of 1.5% in India. The solvency ratio is a parameter that measures the financial reliability and trustworthiness of a company. Max Life has a strong solvency ratio of 2.07% which is much higher than the required ratio signifying that the company is reliable and capable when it comes to meeting its long-term obligations.

PAN India presence

The company has a widespread presence with more than 250+ branches all across the nation making it handy for people anywhere in India to avail of their services.

Customer support

The company has a 24/7 online customer service portal that assists its customers in matters about claims, renewals, or any other insurance-related queries.

Plethora of plans

The insurer provides a wide range of plans that cater to the needs and requirements of all kinds of customers and insurance buyers.

Tax benefit

You can avail of the benefit of tax exemption on your life premiums paid towards your policy under U/S 80C and 10(10D) of The Income Tax Act.

Max Life Insurance plans benefits

High life cover

Multiple plans provided by the company offer a high life coverage from 18 years of age. You can avail the benefit of high life coverage overcoming the rising cost of inflation that will financially assist your loved ones in your absence.

Affordability

Plans offered by the company give the privilege of high life coverage at an affordable premium. Plans offered by the company provide a life coverage of sum assured of Rs 1 Crore at just Rs 500 per month.

Customizable payout

The company offers multiple payout options to select at the beginning of the policy period. The policyholder can choose yearly monthly or lumpsum payout as per the family’s financial requirements.

Premium waiver

Multiple plans offered by the company will waive off any future premiums in case the policyholder is met with any unfortunate event like accidents or critical illness. Max Life Waiver of Premium Plus rider is one plan that waives off all future premiums in such circumstances just at a nominal premium price.

Premium return benefit

In some plans, 100% of the premium paid will be provided back to the policyholder upon policy maturity. Max Life Premium Return Protection and Guaranteed Lifetime Income Plan are among such plans.

How to buy Max Life Insurance Plans?

You can easily buy a health plan with us on InsuranceLiya.com.

Step 1: Simply furnish us with your name, email, and mobile number.

Step 2: We will call you shortly and assist you with a suitable plan for you or your family.

Max Life Insurance claim process

In case of the unfortunate death of the policyholder, the nominee or the claimant needs to follow these simple steps to claim the policy benefits.

Step 1– Inform the company about the event on their toll-free number: 1800 200 5577 or email them at claims.support@maxlifeinsurance.com. You can also inform your agent advisor or visit the nearest branch to do the same.

Step 2– Visit the official website of the company and download the claim form available there. You can also get the form by visiting the nearest branch.

Step 3– Fill the form carefully and submit it to the company along with other relevant documents.

Step 4– The company with review the claim request along with the terms and conditions of the policy and will approve the claim respectively within 30 days of receipt of the claim.

Step 5– You will receive the claim amount as per the option that you have chosen at the time of submitting the claim documents.

Documents to be submitted to file a claim

Original policy documents
Original/attested copy of death certificate issued by a local municipal authority
NEFT mandate form attested by bank authorities along with a canceled cheque or bank account passbook
Nominee’s photo identity proof such as a copy of Passport, PAN card, Voter identity card, Aadhar (UID) card, etc.
Death claim form ( Form A)

Additional documents

In case of medical or natural death

Physician’s statement (Form ‘C’)
Medical records, admission notes, test reports, etc
discharge/death summary

In case of accidental or unnatural death

Copy of FIR ( First information report)
Report of post mortem
Autopsy or viscera report
Copy of the FPIR( Final police investigation report)

Max Life Insurance plan renewal process

It is imperative to renew your life insurance policies on time to avail of its continuous benefits. Follow these simple steps laid down by us to renew your Max Life Insurance policies online.

Online

Step 1– Visit the official website of the company i.e www.maxlifeinsurance.com and click on “Pay online”
Step 2– Enter the existing policy number, registered mobile number, and date of birth.
Step 3– Verify your premium details and make the premium online.
Step 4– The policy will be renewed within minutes. You will receive confirmation about the same along with a premium payment receipt on your registered email id.

Offline

You can also renew your life insurance policy by visiting the nearest branch you for the same.
You can also contact customer care on 1800 200 5577 or email them at online@maxlifeinsurance.com.

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Max Life Insurance Login Process (How to login to your Max account)

Max Life Insurance Renewal Process (In Simple Steps)

How to download your Max Life Insurance premium receipt (Guide)

Max Life Insurance Online Payment (Simple How-To Guide)

Max Life Insurance Customer Care (Phone Numbers, Email and Address)

importance of Life Insurance

List of Insurance Companies in India

Life Insurance

Frequently asked questions about Max Life Insurance

Max Life Insurance Company was incorporated in 2000.

IRDA registration no: 104

Yes, Max Life Insurance is regulated by the IRDA.

Yes, Max Life is a listed on the BSE and the NSE.

Yes, the company provides a host of insurance related online tools

₹1,07,510 Cr (As of 2021)

₹1,174,515 Cr (As of 2021)

Prashant Tripathy (As of 2022)

201%. (As of 2021)

1860 120 5577

Insurance

What is Transit insurance? (Meaning, Types & Benefits)

Post author By parastar
Post date July 19, 2021

What is transit insurance?

The development of the transportation sector has eased and increased the movement of goods from one place to another. Although the increase in transportation activities has helped various businesses to flourish and grow, the goods are subjected to various risks while in transit.

Transit insurance is one of the most important precautionary measures that helps in eliminating these risks. Let’s understand transit insurance in a depth.

What is transit insurance?

Transit insurance provides security to the goods while they are on transit from one place to another. It insures the policyholder against the damages or losses that might be caused to the goods when they are being carried by a private vehicle driven by the owner himself, his employ or any third-party carriers.

The premium for the insurance is decided based on the goods being transported and the risks involved in transporting the goods.

Types of Transit Insurance

Here are a few types of transit insurance policies.

1. Single Transit Insurance

The insurance is provided for a single transit only i.e. the coverage will end as the goods reach the destination. This policy is best suited for business owners who send out shipments occasionally.

2. Open Transit Insurance

As opposed to single transit insurance, this policy provides coverage for multiple transits. Any number of transits made by the business owners in the policy period will be covered by insurance. This is a very beneficial policy for business owners that frequently export, import items as they don’t have to purchase different insurance for each trip.

3. Third-Party Carrier Cover

This type of transit insurance provides coverage against damage and loss of goods when they are being transferred on third-party vessels or carriers.

4. Multiple Vehicle Cover

This type of policy covers any kind of risks to the goods when it is being transferred through multiple vehicles to the destination.

Benefits of Availing Transit Insurance

Here are a few benefits of transit insurance:

Transit Insurance provides financial support to businesses in case of loss or damage to their goods. It helps the businesses recover from the loss and restart again.
The coverage provided under transit insurance meets global standards and is beneficial for the export of goods. The insurance helps transport the goods internationally without worrying about the coverage requirements of the destination country.
The transit insurance policy can be customized to suit any business type.
The policy is easy to avail online and requires minimum documentation.
The policy along with goods also provides cover for damage or loss of livestock in transit.

Coverage Under Transit Insurance

Goods are covered against:

Any kind of damage caused by natural and man-made calamities
Accidents like collisions, sinking of the vessel, etc.
Risks involved in loading-unloading and packing-unpacking of goods.
Thefts, malicious and accidental damages.

Who can buy a transit insurance policy?

Transit insurance policies can be taken up by the following:

Importers and Exporters
Manufacturers
Aggregators
Transporters
Custom House Agents
Traders

Many business owners transport their goods within India and globally. With uncertainties involved in transit, it is important to protect these goods from any natural or manmade risks.

A wide variety of insurance companies provide transit insurance with many coverage options and customizations to suit your business.

You must research and carefully choose the best policy for your business.

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What is Travel Insurance? (Benefits, Inclusions & Exclusions)

Principles of insurance (7 important principles you should know)

Hey! Do you want to test your knowledge by taking this simple quiz?

Click on “Next” for your first question!

Frequently asked questions about health insurance premiums

No, it increases based on the age slab that the policyholder falls within.

Yes, the primary metric in calculating the premium rate is the age of the person.

Yes, porting your insurance policy is now possible.

Insurance

What is Title Insurance? (Meaning, Benefits & Coverage)

Post author By parastar
Post date July 19, 2021

What is Title Insurance?

For many people, having their own house is one of the biggest goals of their lives. The last thing that anybody would want is an unexpected problem regarding the ownership of the house after they’ve completed the purchase. This is where title insurance could help them out.

What is Title Insurance?

Title insurance is an insurance that protects lenders and homebuyers from financial loss that could be caused due to a problem or defect with the title of the property.

If a problem arises with a title when there is a transfer of property ownership, then the title insurance company will be responsible for paying the legal expenses that are mentioned in the policy. Unlike other insurance policies, which protect the insured against future problems, a title insurance policy protects the insured against the claims for past disputes.

A ‘title’ to a home refers to the legal rights that the owner has over the property. A clear title is very important for any real estate transaction. Any buyer who wants to buy a property intends to gain a clear and marketable title to the property and know the restrictions on the property. Sometimes, state laws and local restrictions can also cause problems with ownership.

If a property has any problems with the title, then it is the responsibility of the new owner to resolve these disputes. Some examples of common claims filed against a title are back taxes, easements and conflicting wills.

Title insurance is of two types:

Lender’s Title Insurance

As the name states, the lender’s title insurance protects only the lender from any liability that could arise due to defects in the title.

Owner’s Title Insurance

The owner’s title insurance protects the homebuyer from any financial loss that could be caused due to problems with the title. This insurance is optional. It is often bought by the seller to protect the buyer.

How does title insurance work?

Insurance companies conduct a search on every title to check if there are claims or debts of any kind against them before the tittles are issued. This is called a title search.

A title search is conducted when public records are examined to determine and confirm a property’s legal ownership. In simple words, by confirming that a property has a clear title, the title company is ensuring that the person selling the property is the rightful owner and has the right to sell it.

After the title company has confirmed a clear title or identified issues, it starts the underwriting process. In this, they assess the existing issues and try to find any potential undiscovered ones.

The title company offers a quote for a policy on the basis of those risks.

If a title has too many defects or problems, the title company may not offer a policy quotation. An example of something that can make a title ‘dirty’ or ‘problematic’ is unresolved building code violations.

After the property purchase agreement is completed, a closing agent initiates the insurance process. Usually, a lender’s policy and an owner’s policy are required together to guarantee that everyone is properly protected.

What is Covered by Title Insurance?

A basic title insurance policy will cover the following:

Forged or falsified deeds or documents
Other fraudulent issues such as incorrect signatures on documents.
Outstanding debts, liens and lawsuits
Problems and disputes with ownership

What are the benefits of Title Insurance?

Imagine that a homebuyer finds their dream house and after closing the deal finds out that there are unpaid property taxes from the previous owner. If the buyer doesn’t have title insurance, then they will have to bear the financial burden of the claim for back taxes.

They will either have to pay the outstanding property taxes or risk losing the home to the taxing authority. And if in this same scenario, the buyer has title insurance, the coverage will protect the buyer for as long as they own the property.

Title insurance protects the investments made in real estate and provides cover against financial loss arising from title defects. As it safeguards all possible title disputes that could arise, it is highly beneficial to consumers as well as lenders.

Some benefits of title insurance are:

The title insurance company will conduct a thorough title search before offering a policy, therefore any frauds or other issues will be detected protecting the buyer from the losses that could have occurred to him.
It provides cover against any problems that may be caused due to a defective title document. It also covers litigation costs.
It ensures that the person interested in buying a property follows the due diligence process.

As every insurance has its own disclaimers, so does title insurance. It is very important to go through the policy carefully and understand the coverage provided before buying title insurance.

It is also important to understand the process of claiming the policy, renewal of the policy and the types of evidence required to prove the loss.

What is Property and Casualty Insurance?

Insurance with Home Loan (Types, Features and Benefits)

Is Property Insurance Mandatory for getting a Home Loan?

How is Home Insurance Calculated?

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Insurance

What is Insurance Solvency Ratio?

Post author By parastar
Post date July 19, 2021

What is Insurance Solvency Ratio?

The insurance solvency ratio is a measure of the company’s financial health. A solvency ratio will indicate if a company’s cash flow is enough to meet its liabilities and complete its financial commitments.

A low solvency ratio means that a company is more likely to default on its financial obligations.

On the other hand, a high solvency ratio means that a company is capable of meeting its debt and other financial obligations.

Instead of measuring the net income of the company, a solvency ratio measures a firm’s actual cash flow. It adds back depreciation and other non-cash expenses in order to assess a company’s capacity to stay solvent.

The table given below shows the insurance solvency ratio of life insurers in 2018-2019:

Company	31.03.2019	31.12.2018	30.09.2018	30.06.2018
Bajaj Allianz Life	8.04	7.49	7.49	7.74
Sahara Life	8.44	9.42	9.42	9.24
Pramerica Life	4.6	4.91	4.91	5.33
Canara HSBC OBC Life	3.93	3.72	3.72	3.7
IDBI Federal Life	3.34	3.82	3.82	2.83
Aviva Life	2.99	2.95	2.89	2.92
Kotak Mahindra Life	3.02	3.1	3.1	3.11
Reliance Nippon Life	2.6	2.81	2.81	2.67
Aegon Life	2.6	2.68	2.68	2.91
Star Union Dai-ichi Life	2.53	2.74	2.74	2.78
Max Life	2.42	2.61	2.61	2.62
Edelweiss Tokio Life	2.29	2.45	2.45	2.22
ICICI Prudential Life	2.15	2.34	2.34	2.35
SBI Life	2.13	2.21	2.21	2.14
Exide Life	2.08	1.8	1.8	1.93
Birla Sunlife	1.98	2.04	2.04	2.12
PNB Met Life	1.97	2.01	2.01	2.02
HDFC Life	1.88	1.93	1.93	1.97
Shriram Life	1.82	2.05	2.05	2.01
India First Life	1.74	1.73	1.73	1.97
Bharti AXA Life	1.71	1.62	1.62	1.62
Future Generali Life	1.62	1.64	1.64	1.94
LIC	1.6	1.51	1.51	1.52

The Insurance Regulatory and Development Authority of India (IRDAI) makes sure that every insurance company maintains a mandated solvency ratio of 1.5 (or a solvency margin of 150%). Different insurers might have different rankings, this is because of the various factors that might influence a company’s financial health.

To measure the true financial health of a company, you will have to compare its solvency ratio with its competitors. This will help you to get a better idea about the factors that have created the difference and why.

The insurance solvency ratio is a type of financial ratio that is usually used by potential lenders and bond investors to evaluate a company’s creditworthiness.

If you are looking to buy life insurance, you have to make sure that you purchase it from a reliable insurer. You can look at the insurer’s solvency ratio to see if it is financially stable and if it is capable of paying off its claims.

What is Loss Ratio in Insurance?

Life Insurance Corporation of India (LIC)

Principles of Life Insurance

List of Life Insurance Companies in India (IRDA Approved)

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Insurance

What is Public Liabilities Insurance? (Meaning, Coverage & Examples)

Post author By parastar
Post date July 19, 2021

What is Public Liabilities Insurance? (Meaning, Coverage & Examples)

Businesses succeed with the combined support and effort of people such as employees, clients and customers. But a lot of times, these clients and customers could face accidents that take place in a business premise. Hence, it is considered an important policy for businesses to purchase Public Liability Insurance.

What is Public Liabilities Insurance?

Public liabilities insurance offers protection to the business in case any third-party liability arises out of injury or property damage. These third parties could be customers, clients or members of the public. As public liability insurance policies help reduce the financial burden that may pop up because of third-party liabilities, it can also be called third-party liability insurance.

If public liability insurance works in combination with product liability insurance, it is also known as Commercial General Liability Insurance.

Public liability insurance is very important for businesses owners, restaurants, hospitals and even doctors. It is usually acquired by enterprises, and even individuals who could possibly be held accountable for legal or financial liabilities. For instance, if someone is visiting your office and they slip and sustain an injury (like a sprain or a broken ankle) which will lead to hospitalization, this insurance could help you pay off the hospital bills and deal with the legal liabilities.

Examples of Public Liability insurance are:

Public Liability for non-manufacturing units such as IT firms, restaurants, schools, clubs, BPOs among others.
Public Liability for manufacturing units such as warehouses and storage units.
Public Liability for business units that deal with hazardous substances

What is Covered Under Public Liability Insurance?

Many public liabilities insurance policies provide extended coverage for industrial risks, non-industrial risks, all business units dealing with hazardous substances, etc. They also provide more comprehensive protection by covering the legal expenses that could arise out of:

Sudden and accidental pollution
Transportation
Carriage of treated effluents
Natural calamities

Given below is a list of things covered by a public liability insurance:

Lawsuits and Settlements: If your business gets sued for damage or loss caused to a third party, the insurer will cover the cost of hiring a lawyer or investigating officer.
Damage to Property: This policy will cover damage or injury caused to a third party by an accident in your office premises. Damage caused due to your products, operations or promotional advertisements will be covered by public liability insurance. It will also cover the liability arising due to damage caused to a third party’s property while visiting your office.
Medical Expenses: In case a third-party gets injured in your office or business premises, the medical expenses will be covered under the public liability insurance.
Tenant’s Liability: If you have a rented business space, and any liability arises, then the expenses will be covered under the public liability insurance policy.
Copyright Liability: If your marketing division violates the copyright policies, the liability will be covered.

What is Not Covered Under Public Liability Insurance?

A public liability insurance does not provide cover for certain situations. They are as follows:

Any damage to your business property is not covered under public liability insurance.
Any damage or injury caused to workers is not covered. For such situations, businesses should have Employers’ Liability Insurance.
The insurer only covers liabilities that arise out of third-party property damage, injury, disability etc. To cover professional errors, the business should buy professional liability insurance.
Any deliberate or intentional damage is not covered.
Damages that arise out of penalties, fines or exemplary damages are not recompensed.
Damages arising out of situations like war are also not covered.

Why is Public Liability Insurance needed?

Having public liability insurance is not a statutory legal requirement. But it is necessary to buy it in order to protect the business from financial problems. In India, public liability insurance is made in such a way that it caters specially to individuals or businesses who could be held legally responsible to pay for damages and injuries caused to a third party. For example, if your product causes damage to someone else, then your company could be sued for the loss.

If your business engages in any of the following, then you should consider buying a public liability insurance:

If you interact with clients frequently or regularly
If you represent your client’s business
If you are using a third-party site for your business operations
If you have access to any or all of your client’s assets

How to Claim Public Liability Insurance?

After buying a public liability insurance policy, it is also important to understand the claim process for it. To file for a claim, you can follow the steps given below:

Step 1: Properly analyse and evaluate the damage and loss that has happened.
Step 2: As soon as possible, inform the insurance company in writing.
Step 3: Collect the proof and evidence.
Step 4: Provide the needed medical certificates in case of injury or death.
Step 5: Submit the duly filled claim form and the required documents.
Step 6: a professional will evaluate the file and decide whether to accept or reject the claim.
Step 7: If you are not satisfied with the decision of the insurer, then you can approach the court.

The documents required for the claim process are:

Duly filled claim form
The required documents to support the case
Copied of proof and evidence
In case of injury or death, medical certificates

What are the Situations Where You Can’t Claim Public Liability Insurance?

Though public liability covers many situations, there are certain cases which are not covered under it. These are also known as exclusions. Some of these are:

Intentionally not complying to safety or legal provisions.
Errors while performing and dealing with legal or contractual liability.
Cases like false arrest, defamation, libel, slander, loss of goodwill, mental loss or damage.

This insurance ensures that businesses succeed without facing any unexpected financial losses. There are also alternatives for public liabilities insurance such as general liability insurance. Before buying any public liability insurance, it is important to know about all the aspects related to it. This will help you make the decision that will be best for your business.

Importance of The Public Liability Insurance Act 1991

An Overview of Property and Casualty Insurance

4 Types of General Insurance that you should be aware of

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Insurance

What is Property and Casualty Insurance?

Post author By parastar
Post date July 19, 2021

What is Property and Casualty Insurance?

Insurance has grown in importance as a way of protecting our assets and fulfilling our needs. Today there is insurance available to cater to a majority of your needs. From cars to houses and more, there is insurance for everyone and everything. One such insurance that has been reducing the financial burden and turning dreams into reality is property and casualty insurance.

What is Property and Casualty Insurance?

Property and Casualty insurance, also known as P&C insurance, is an umbrella insurance policy that covers various things under a single plan. P&C insurance can be taken up to get coverage for protection against things like machinery breakdown, fire, earthquake, office damage, etc. For all business owners, getting P&C insurance can prove to be very helpful, as it would cover the different risks and liabilities that arise while running a business.

1. Property Insurance

Property insurance includes various types of insurance plans, that are designed to protect the policyholder from a financial loss in case the property gets damaged. The items that are generally included under this type of policy are house, furniture, jewelry, automobile, business property or any other physical property. The type of coverage will depend on the type of policy that is purchased. For an instance, if your property gets damaged or vandalized, and if you have a property insurance policy, you can get compensated for your loss.

An example of Property insurance is Burglary Insurance. This insurance can be purchased for a business or a house. Burglary insurance will cover losses or damages to the property and the goods that are in the property premises. You can get coverage for the damage caused to the insured house or business in case of theft, and that coverage can be extended to include malicious damage, riots, etc.

Other types of property insurances are Package or umbrella insurance, Fire policy insurance, All risks insurance policy, Marine Cargo Insurance Policy.

2. Casualty Insurance

Casualty insurance is also known as liability insurance. This insurance mainly protects the policyholder against legal liability for bodily injury and/or property damage that might be caused by him to the others. For example, if someone gets hurt due to an accident in your house or office, and you are held liable for it, then the casualty insurance policy will cover the cost and pay for the loss caused to the injured person.

An example of casualty insurance is Public Liability Insurance (Industrial and Non-Industrial). It covers the legal costs for bodily harm and property damage caused inside the insured premises. It covers a variety of industrial risks and non-industrial risks for businesses such as manufacturing units, BPOs, Hotels, Clubs, Restaurants, IT Companies and Schools.

Other types of property insurance are Commercial General Liability, Workmen’s compensation insurance, Pollution legal liability and Contaminated Product insurance.

Now that you know what is property and casualty insurance, you can understand how important it is. If you are an entrepreneur or a small business owner or someone who has assets, then it is necessary for you to get an insurance policy that will protect you, your home or your business from future losses caused due to unfortunate events.

Insurance with Home Loan (Types, Features and Benefits)

Is Property Insurance Mandatory for getting a Home Loan?

How is Home Insurance Calculated?

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Insurance

What is mortgage with Insurance?

Post author By parastar
Post date July 19, 2021

What is Mortgage With Insurance?

Mortgage insurance has become extremely popular in the Indian insurance market. Getting a mortgage with insurance is something that can help homebuyers to avail a mortgage loan at an affordable interest rate and a lower down payment. Let’s know more about this.

What is Mortgage Insurance?

Mortgage insurance is an insurance policy that protects a lender if the borrower defaults on payments or is not able to meet the contractual obligations of the mortgage contract. In simple words, a mortgage with insurance will ensure that the loan is repaid in case the loanee passes away or is unable to pay the debt. Usually, the tenure of mortgage insurance is 12 months and it comes with various payment options like, borrower-paid, lender-paid and split payment.

The foremost reason for getting mortgage insurance for homebuyers is the safety factor. Mortgage insurance decreases the chances of loss for the lender. This means that having mortgage insurance can help homebuyers get a loan for a higher amount than you would normally qualify for.

The types of mortgage insurance are:

1. Private mortgage insurance (PMI)

This is a mortgage life insurance that protects the borrower from the lender in case of a default. Private mortgage insurance would generally cover a huge portion of the borrowed capital. This type of insurance is offered by private insurance companies. There are various types of Private Mortgage insurance such as:

Borrower-paid private mortgage insurance
Lender-paid private mortgage insurance

2. Mortgage insurance premium (MIP)

This is a mortgage life insurance product that is usually provided by the government. A mortgage insurance premium protects the lender in case the borrower is unable to pay the amount because of an unfortunate event. Mortgage insurance premium has premium rates and cancellation policies which are different from PMI.

What are the Types of Rates Offered in the Indian Mortgage Market?

In the Indian insurance market, people can choose between the following:

Flexible Mortgage Rate: This type of mortgage interest rate is called floating or adjusting rates. This is because the fluctuations in the market affect the interest rate.

Fixed Mortgage Rate: A fixed mortgage rate is when the rate of interest remains fixed throughout the loan term. The conditions of the market will not affect this mortgage rate. Basically, this means that the rate of interest will not change during the process of borrowing funds. This interest rate can be between 12.5% to 25%.

The value of the borrowed amount determines the premium and the coverage of the mortgage insurance. The insurance policyholder can either pay the amount of the premium annually as a lump sum or split the amount and pay on monthly basis. Policies offering the provisions for lumpsum payment are termed single-premium mortgage insurance. Single-premium mortgage insurance has added benefits. It could help qualify the borrower for a bigger loan amount as he/she won’t have to pay mortgage premiums monthly.

How is Mortgage Insurance Different from Mortgage Life Insurance?

Mortgage insurance, also known as mortgage loan insurance, should not be confused with mortgage life insurance. Mortgage insurance usually protects the lender. But mortgage life insurance is made to protect the heir if the borrower dies while still owing mortgage payments. If a borrower is concerned that they will leave a large amount of mortgage to his family after death, he/she can buy mortgage life insurance. The coverage can be paid to the lenders or to the heirs.

What are the Benefits of Mortgage Insurance?

The biggest benefit of mortgage insurance is that it provides safety and surety of getting the money back. It protects the lenders and investors from possible losses that could occur when the borrowers are unable to repay the mortgage debts.

From the borrower’s end, this insurance helps them to protect their most valuable asset i.e. their house in case they are not able to pay back the debt that is taken against it.

Mortgage insurance has made the goal of owning a home achievable. With mortgage insurance, people can purchase a house with smaller down payments, up to 20% less.

Before opting for a mortgage with insurance, you should check with your lender to find out what types of mortgage insurance are provided by them. You can then check their terms and policies and pick the one that is affordable and suitable for you.

What is Property and Casualty Insurance?

Insurance with Home Loan (Types, Features and Benefits)

Is Property Insurance Mandatory for getting a Home Loan?

How is Home Insurance Calculated?

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