This year will be moderate for ULIP inflows though focus on the protection business will continue to drive value of new business for large insurers. Private life insurance companies reported 9% growth in individual premium in June 2018, somewhat better than 4% during May 2018. We expect FY19 to be a moderate year for ULIP inflows though focus on the protection business will continue to drive value of new business (VNB) for large players; in that sense, monthly annual premium equivalent (APE) data is incrementally less relevant. Private sector APE was up 12% yoy in June 2018, leading to 6% yoy growth for 1QFY19. With 3% yoy growth in LIC for the month (21% in May 2018, 7% in 1QFY18), the...
Continue reading...
Policyholder Protection Protection issues For life assurance companies, the Isle of Man's Life Assurance (Compensation of Policyholders) Regulations 1991 ensure that, in the event of a life assurance company being unable to meet its liabilities to its policyholders, and subject to the Regulations, the scheme manager shall pay to the policyholder out of the Policyholders' Compensation Fund a sum equal to 90% of the amount of any liability of the insurer under the contract. The Island's scheme operates globally, providing protection to policyholders no matter where they reside. The scheme would be funded by a levy on the funds of the other life assurance companies. The Financial Services...
Continue reading...
The June quarter (Q1) results of HDFC Life, ICICI Prudential Life Insurance Company, Max Financial Services and SBI Life indicate these four major listed life insurance players are focusing on protection products, which provides impetus to their profitability. From a stock perspective, too, analysts see gains for most of these companies. Life insurers’ profitability is measured in terms of value of new business (VNB) margin, which is VNB as a percentage of the present value of future premium. Protection products are seen as more profitable. The value of new business margin at HDFC Life and ICICI Life expanded 370 bps and 680 bps, respectively, over a year. While the metric for Max...
Continue reading...
Universal Life Insurance Understanding Universal Life Coverage Leaving a financial benefit for your family when you pass on is one of the most fulfilling things in life. Universal life insurance (UL) allows you to save for your future while at the same time giving you access to your accumulated cash value. One feature of the universal life coverage is that it runs throughout your life until you pass on as long as you maintain a flexible premium payment plan. UL remains a favorite for most people due to their broad range of benefits. Insurers break down the premiums into two fold, which comprises of cost of insurance and the saving component. Policyholders must pay monthly premiums to avoid...
Continue reading...
Life Insurance Life insurance can help you secure your family's financial future by providing the funds they need to: cover burial expenses, uninsured medical bills, pay off your mortgage and other outstanding debts, and maintain a comfortable standard of living. There are a variety of life insurance policies that we can provide. The kind of policy you choose depends on your needs: Term Life Insurance is a low-cost way of providing maximum coverage for your family. Protection is provided for a limited number of years. The insurance expires without value if the insured lives beyond the policy period, usually 5 to 20 years. Other policy life periods are available, including 1 year annual...
Continue reading...
Social Security provides the primary life insurance protection for most children This year’s debate over Social Security has focused primarily on retiree benefits and has largely neglected the survivors and disability portions of the program. The fact that two-thirds of retirees receive at least half of their income from Social Security has become well-known.1 Yet many people seem unaware that about one in six Social Security beneficiaries receive survivor benefits as the spouses and dependents of deceased workers and another sixth receive disability benefits.2 In 2003, some 1.9 million children received survivor benefits at an average of $603 per month, totaling $14 billion a year....
Continue reading...
How Does Life Insurance Protect My Family? While you may not be able to provide for your family forever, the good news is you can plan to help financially protect them with the purchase of life insurance. What are the benefits of life insurance and how exactly does life insurance protect your family? Let’s take a look. Life Insurance Can Financially Protect the Ones You Love When it comes down to it, the purchase of life insurance isn’t meant for yourself — it’s designed to take care of your loved ones when you’ve passed away. And if you’re responsible for the financial security of anyone, whether it be a spouse, partner, children, aging parents, disabled...
Continue reading...
RADNOR, Pa.--( BUSINESS WIRE )--Lincoln Financial Group today expanded its suite of protection-focused life insurance offerings, introducing Lincoln WealthPreserve® Indexed Universal Life (IUL). Lincoln WealthPreserve IUL offers affordable death benefit protection, providing beneficiaries the financial security of an asset that transfers to them income tax-free, while providing the flexibility to meet life’s changing needs. “IUL policies are seeing strong interest among consumers, because of their unique ability to capture upside performance with downside protection,” said Stafford Thompson, Jr., Senior Vice President of Life Product Management, Lincoln Financial Group. “We believe IUL is...
Continue reading...
Life Insurance Three Common Mistakes When Setting Up a Life Insurance Policy Buying life insurance is usually an easy thing. You choose how much coverage your want, for how long, apply for coverage and then wait to hear back. There are some situations that you want to avoid to get the most out of your policy. Here, we’d like to take a little bit of the pain out of the process of buying insurance by providing you with a few tips: Naming Your Estate as the Beneficiary When you fill out your life insurance application, not many people actually write the words “”my estate”” on the line. But, if you don’t write in a name and there’s no beneficiary listed...
Continue reading...
Unexpected events happen every day, but when these events affect your health, or even your life, the financial impact can be substantial to your family and to the people who depend on you. While insurance cannot prevent these events from happening, it can help to mitigate the financial loss. Life Insurance Life insurance is one of the pillars of personal financial planning, deserving of consideration by everyone, and potentially vital for most families. If you are the main salary earner, spouse or the parent of dependent children, it helps compensate for the inevitable financial consequences that accompany the loss of life. A lump sum helps those left behind cover the costs of expenses such...
Continue reading...
