Tax Treatment of Insurance Premium (Summary Table) Group Insurance Premium Paid by Employers To find out the beneficiary, check the policy document or check with the insurance provider. Employer Not Under Legal Obligation to Payout to Employee Employer has taken up a group term life insurance policy for the employees who are not the named beneficiary. The premiums are not taxable if the employer (policyholder) has a choice or the discretion to decide whether he wants to disburse the insurance payout from the group insurance policy to the employee or his next-of-kin. Employer Under Legal Obligation to Payout to Employee The employees will be subject to tax on the share of benefits of premium...
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Your life is priceless, but in the event of something unfortunate happening you can try to put a price on it. Covering your life with insurance can be extremely valuable when those you leave behind may need it most. However, life insurance shouldn’t have to break the bank. Determining the right level of life insurance coverage for you (and your family) is important, as there are many factors that affect how much you pay for life insurance, but that doesn’t mean you can’t reduce your life insurance premiums. Why you should consider a life insurance policy Life can be tough, and it can also cost a lot. But what if something unfortunate were to happen that affected you or your family’s...
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Find out how universal life insurance policies work and what you should be mindful of if you are considering whether to buy one. How do universal life insurance policies work? Universal life insurance policies are bundled products, meaning you get insurance protection and an investment return. Investment returns are based on the rates declared periodically by your insurer (known as “crediting rate”) and can be changed at the insurer’s discretion. However, the insurer cannot decrease it beyond the minimum crediting rate which can be set at 0%. Universal life insurance policies are different from typical whole life insurance policies. Unlike most life insurance policies,...
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Indian life insurance premium to see about 15% CAGR till FY31: Report The favourable underlying demand factors for life insurance will lead to an overall premiums growth of ~15% annually for the next decade, leading to ~4x increase in total life insurance premiums to ₹ 24 lakh crore by FY31. The favourable underlying demand factors for life insurance will lead to an overall premiums growth of ~15% annually for the next decade, leading to ~4x increase in total life insurance premiums to ₹ 24 lakh crore by FY31. In FY01-11, premiums had grown at a surprising 24% CAGR and then followed with an anaemic ~8% CAGR in the next 10 years. However, Emkay Global is now more confident of growth in the...
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Permanent Life polices offer coverage up to life time plus tax-advantages opportunities to protect and increase your retirement savings and income and may allow you to access the benefits during your lifetime. Permanent Life policies are often customizable and flexible. You choose the amount and frequency of the premium payments, and you select the amount and duration of your coverage, up to lifetime protection. You can access potential cash value during your lifetime for things like supplementing your retirement, paying for college, and purchasing a second home. A quick comparison With the potential for higher returns there is more expenses involved with the policy (subaccount fees, M&...
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How to calculate life insurance premiums If you’ve compared a few life insurance quotes, you’re probably wondering why each one is different. Life insurance is about risk. It might sound a little morbid, but life insurers are trying to figure out how likely you are to die. Each insurer uses their own data to calculate your level of risk. The way insurers calculate risk is unique to each company. There are a few different factors that go into the calculation. First, there are personal factors. That’s things like your age, medical history, gender and occupation. If you’re older, or have a history of illness, it will push your premium up. If you start the policy when you’re young and healthy,...
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latest-news-headlines Market Intelligence /marketintelligence/en/news-insights/latest-news-headlines/total-us-life-insurance-premiums-rise-2-yoy-in-q1-52471788 content Total US life insurance premiums rise 2% YOY in Q1 U.S. life insurers in the first quarter saw their premiums grow by a bit more than 2% year over year. The industry's total premiums in the first three months of 2019 were $44.6 billion, up 2.2% versus the prior-year period, according to an analysis by S...
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Once you've made a decision to buy permanent insurance, the next step is to determine what kind of policy you want to purchase and what type of premium you can afford to pay. Unlike term life insurance, which has a set premium dollar amount that is based on the extent of and the duration of the coverage, the premium for a permanent policy depends on how the coverage is designed and what assumptions are used to prepare the hypothetical illustration. Premiums also differ depending on the kind of permanent coverage. For example, whole life insurance has less flexibility than universal life insurance. Additionally, the premium can change over the time period that you own the coverage. How...
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Tarun Chugh MD & CEO, Bajaj Allianz Life Insurance ‘Digitization drive will help insurers cut costs’ 4 min read . Updated: 20 Jul 2020, 05:43 AM IST Disha Sanghvi Life insurance is now moving to a slightly nudge product from a push product, which means more people are enquiring about it Has the life insurance industry pivoted to a more digital ecosystem? I’d say it only fast-tracked digital adoption in the industry. Digitization was taking place across companies; was the focus of the regulator and every process was being evaluated and redesigned to be adopted digitally. For instance, we have a 100% digital agency channel, which means that right from recruiting our insurance...
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Q I have just been accepted for life and critical illness insurance to cover a mortgage. But I am not happy with the premium, which has been almost doubled from the original quote on medical grounds. I am 28 years old and have never suffered from serious illness. I rarely visit the doctor and keep myself in good shape. I smoke very occasionally, which I of course disclosed when applying for the policy. I also willingly gave a blood sample. The only possibility I can think of for this higher cost is that my father died at 45 from a heart attack. But no-one else in my family has ever suffered a premature death due to illness. The premium is £38 a month more than the original quotation. I have...
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