Insurance - Increasing (Sum Assured) Term Policy

Increasing (Sum Assured) Term Policy :
                                                           In some money-back plans, a fixed percentage of the Sum Assured is paid to the insured at the end of specified periods during the term of the policy. However, not withstanding the periodical payouts, the sum assured at risk (payable on death) continues to be same during the term of the policy; that is

Insurance - Immediate Annuity/Straight Life Annuity

Immediate Annuity/Straight Life Annuity :
                                                             These are single-premium policies. The life assured pays a lump sum and the insurer pays him/her a specified amount throughout his/her lifetime. The word immediate denotes that the annuities start from the day on which the single premium is paid, providing immediate income to the insured.

Insurance Guaranteed Addition

Guaranteed Addition : In case of certain policies, the insurance company adds a certain sum every year to the sum assured of a policy (guaranteed additions): This sum is calculated at a rate per every thousand of sum assured. It is payable upon the maturity of the policy or when the claim is made. The guaranteed addition take place only for every year the premium is paid

Insurance Guaranteed Surrender Value

Guaranteed Surrender Value :
                                            You can obtain this minimum amount in case you decide to foreclose the policy, after payment of premium for a stipulated minimum period.

Insurance - Group Superannuation Scheme

Group Superannuation Scheme :
                                                This operates like a Pension scheme where the payments made at the end of each period
• Employers set up trust fund.
• Trustees enter into a Superannuating scheme.
• Fund managed by insurer.
• Insurer provides actuarial, legal and tax assistance to trustees.

Insurance - Group Savings Linked Insurance Scheme

Group Savings Linked Insurance Scheme :
                                                                This scheme provides both death and savings benefit. It normally requires the group to consist of at least 50 members. The scheme is administered through the employer, with the first charge on salary for life insurance cover. The balance in this account is utilized for earning interest. The premium for providing risk cover is based on the age distribution of members of the group and balance amount of the premium after deducting for risk cover is used for savings (endowment).

Insurance-Group Insurance Scheme

Group Insurance Scheme :
                                       This is a term insurance type of contract, simple and cheap, The specified amount is payable by the insurer on death of a member.

Insurance Group Gratuity Scheme

Group Gratuity Scheme:
The Payment of Gratuity Act 1972 makes it compulsory for employers, who have 10 or more employees, to set up a Gratuity Scheme. The Group Gratuity Scheme operates as follows:
 • Employer sets up Gratuity fund as an irrevocable trust fund
 • Trustees enter into a contract with an insurance company to manage funds
 • Insurance company manages fund by diversifying risk.
The Main Benefit is to the families of employees who die at an early age since the gratuity is paid on the basis of completed service.
Group Insurance provides cover for a group of people who satisfy the following conditions :
 • The group must be formed for reasons other than to take a policy
 • Members enter and exit a group for reasons other than to take a policy
 • Should consist of more than 25 members
The Master policy covers all group members and there is no mandatory requirement for all members have to apply for equal cover. Al inception of the policy, all members have an option to join, but members who join later cannot be covered immediately. Members appointed specified authority to represent the group and premiums vary depending on performance of the group. The surplus if any may be shared among members in case of good performance (PROFIT SHARING SYSTEM).

Insurance Grace Period

Grace Period :
                      Grace period is the period during which the policyholder can renew his policy. The policy remains in force, i.e. the risk continues to be covered during this period and claims will be serviced in case of death during this period. For yearly, half yearly and quarterly premium payments the grace period is 30 days. For monthly mode of payment -15 days.

Insurance General Insurance Companies

General Insurance Companies :
                                               Insurance companies which offer risk (insurance) cover on non-life entities, such as Crop insurance,Fire Insurance, etc are known as General Insurance Companies. They cover human life only for Mediclaim Policies.