Planning for your child’s future is an important decision in any parent’s life. While you may well have a financial plan in place for your own future, it is equally vital that you make similar provisions for your child’s future. The good news is that today there are a variety of products available to parents to provide for the child. Child insurance plans in particular should appeal to most parents because they are tailor-made to fulfil your child’s needs. There are a variety of child insurance plans available in the market today, which can act as a savings tool to secure your child’s future.
Child plans help address your child’s future education and/or marriage needs. They also provide the capital that your child may need at a later stage to venture into a business. But how do child plans work? An illustration will clarify the same.
Secure your child’s future:-
Assume you are 25 years old and your child is around a year old. You decide to buy a child plan from HDFC Standard Life Insurance Ltd for a tenure of 20 years with a sum assured of Rs 100,000. The premium for the said policy works out to Rs 4,869, which is affordable and an amount that you can save from your monthly allowance.
As can be seen from the table, this child plan basically works like an endowment plan. In case of an eventuality to you, this plan will provide your child the sum assured of Rs 100,000. Besides that, it also waives all the consequent premiums payable till maturity and gives your child the maturity amount immediately.
Conversely, on maturity, the policy will provide your child with a lumpsum amount of Rs 224,481 (assuming a rate of return of 10% as per company illustrations)
In our illustration, since this policy matures at a time when your child is 21 year of age, it will prove to be beneficial if you want to plan for say, your child’s post graduation study expenses or his marriage.
Luckily for the parents, there are a lot of variations available within the child policies segment:
For example, LIC’s marriage/educational child annuity policy gives you the option of receiving the policy money in 10 half-yearly instalments on completion of the tenure.
Tata-AIG’s ‘Assure Career Builder’ is a money back plan that gives lump sum money at different junctures in your child’s life. This plan gives you 20% of the sum assured on the 18th, 21st and 24th birthday of the child .You get the remaining 40%, alongwith the returns earned on your premiums, when your child is 27 years of age.
Term plans can also be used to secure your child’s future. Ensure that you have a term plan for yourself and you nominate your children so that in your absence, the policy proceeds go to your children. Term plans are a cost-effective way of ensuring your child’s future. Of course, they cannot replace a savings product like an endowment plan.
As explained earlier, most child insurance policies also come along with a waiver of premium (WOP) benefit. The WOP benefit aims to ‘waive’ all the future premiums payable in case the proposer (i.e. the parent) passes away. This not only helps in keeping the policy alive but also ensures your child a decent future in your absence. The WOP benefit can be bought at a nominal cost.
Some life insurance companies have a lower premium on their child plans if the proposer is the mother. For example, SBI Life and ICICI Prudential to name just two, charge a lower premium on child plans, provided that it’s the mother who pays the premiums. Look at all your options before you decide to zero-in on any one plan.
Unit linked insurance plans (ULIPs) can also be looked at while planning for your child’s future. ULIPs invest the premium amount in market-linked instruments like stocks and government securities. ULIPs have the ‘potential’ to generate higher returns since equities as an asset class are equipped to offer better returns over the long term vis-à-vis peers like fixed income instruments and gold. And since planning for child’s future is an activity to be spread over a longer duration of say, 15-20 years, ULIPs could be considered. In our view, well-managed unit-linked child plans should give competitive returns. Many companies like ICICI Prudential and Birla SunLife amongst others offer unit linked child plans.
Of course, ULIPs come attached with a rider- invest only if you have a risk appetite and basic knowledge or understanding of the stock markets. Also, it is important to first inquire about ULIP costs like administration expenses, fund management charges, the commissions given to agents and charges for switching between various ULIP options. Further, these charges differ across life insurance companies. The costs affect your returns in the long run. So evaluate your options well before you take the leap.
As you can see, child plans of both the endowment and ULIP variety have their own set of benefits; hence it is always prudent for women to have a well-diversified portfolio of insurance plans while planning for their children. While a regular endowment plan will give you a lumpsum amount at a given point in time, buying a money back plan will ensure that there’s an income stream at regular intervals. Similarly, a ULIP with a reasonable equity component is equipped to enhance returns.
To put it simply, you should evaluate all the available options before building an insurance portfolio for your child. The key lies in being aware of the various options and investing in a plan that best suits your requirements.
Wednesday, December 26, 2007
Insurance plans for your child's future
Life insurance plans help in servicing various needs in an individual's financial planning exercise. One such need happens to be planning for his children's future. Children's insurance plans help in addressing many of these needs.
While individuals might have a financial plan for themselves in place, it is equally important that they secure the financial future of their children. For example, suppose an individual wants to plan for his son's education. A child plan will serve in achieving this goal. An illustration will help understand this better.
Suppose an individual is aged 30 years and has a son who is one year old today. He wants to plan for his child's education. He would like to receive a fixed sum of money (say around Rs 100,000) at regular intervals when his son would need it the most i.e. while he is still pursuing his education.
In our example, the individual would like to get regular payouts when his son is nearing graduation (i.e. around 21 years of age). The payouts will help in funding his child's graduation as well as his post-graduate studies. In addition, he will also like to buy some life cover for himself in case of an unfortunate eventuality so that his son can continue on the career path chosen for him without any struggle.
The plan chosen by the individual is for a sum assured of Rs 500,000 for which the annual premium is Rs 24,000. In case of an eventuality to the individual, his son will stand to receive the sum assured (i.e. Rs 500,000). He will also receive any bonus additions that have accrued over the policy tenure
The plan chosen by the individual will also help him achieve his goal of regular payouts once his son crosses his 19th birthday. On that day, the son will receive 25 per cent of the sum assured i.e. Rs 125,000 in our example. From thereon, the individual will keep receiving 20 per cent of the sum assured (i.e. Rs 100,000) every year over the next four years.
In addition to this, the individual will also stand to receive guaranteed additions plus bonuses on maturity. The maturity amount in our illustration is approximately Rs 319,000 (@ 6 per cent assumed growth rate) / 662,000 (@10 per cent assumed growth rate). The maturity amount can help fund the child's post-graduate studies.
Child plans differ across insurance companies. For example, if an individual wants to plan for say, his daughter's marriage, then he can opt for a child plan that gives him a lumpsum on maturity as opposed to regular payouts. Child plans can also be taken for building seed capital for his son's future business requirements. Individuals should therefore evaluate their options with care to secure their child's future
While individuals might have a financial plan for themselves in place, it is equally important that they secure the financial future of their children. For example, suppose an individual wants to plan for his son's education. A child plan will serve in achieving this goal. An illustration will help understand this better.
Suppose an individual is aged 30 years and has a son who is one year old today. He wants to plan for his child's education. He would like to receive a fixed sum of money (say around Rs 100,000) at regular intervals when his son would need it the most i.e. while he is still pursuing his education.
In our example, the individual would like to get regular payouts when his son is nearing graduation (i.e. around 21 years of age). The payouts will help in funding his child's graduation as well as his post-graduate studies. In addition, he will also like to buy some life cover for himself in case of an unfortunate eventuality so that his son can continue on the career path chosen for him without any struggle.
The plan chosen by the individual is for a sum assured of Rs 500,000 for which the annual premium is Rs 24,000. In case of an eventuality to the individual, his son will stand to receive the sum assured (i.e. Rs 500,000). He will also receive any bonus additions that have accrued over the policy tenure
The plan chosen by the individual will also help him achieve his goal of regular payouts once his son crosses his 19th birthday. On that day, the son will receive 25 per cent of the sum assured i.e. Rs 125,000 in our example. From thereon, the individual will keep receiving 20 per cent of the sum assured (i.e. Rs 100,000) every year over the next four years.
In addition to this, the individual will also stand to receive guaranteed additions plus bonuses on maturity. The maturity amount in our illustration is approximately Rs 319,000 (@ 6 per cent assumed growth rate) / 662,000 (@10 per cent assumed growth rate). The maturity amount can help fund the child's post-graduate studies.
Child plans differ across insurance companies. For example, if an individual wants to plan for say, his daughter's marriage, then he can opt for a child plan that gives him a lumpsum on maturity as opposed to regular payouts. Child plans can also be taken for building seed capital for his son's future business requirements. Individuals should therefore evaluate their options with care to secure their child's future
E-government Master plan - 2005...
The e-government Master plan has been developed by Korean Industry Promotion Agency – KIPA of South Korea in agreement with the ICTA. An extensive survey on current situation of the ICT in governmental organizations has been conducted, followed by the development of the vision and strategy for e-government Master plan. As part of this initiative, the plan for implementation of the E-government program was developed outlining the timeframe and activities to be carried out.
The E-government Master plan has been developed with the vision to “Establish state policy and regulatory regime that provides favorable environment for development of government-legislation, economy-business, and citizen-society frameworks based on consideration of information and communication technology as a major accelerator to develop Mongolia in 21st century. ”
It has three major frameworks:
1) government-legislation framework,
2) business-economy framework and
3) human development framework.
Within each of these frameworks, 18 projects and 4 policies are required to be developed. Among those policies, there were government-to-citizens, government-to-business, government-to-government and infrastructure.
As part of the government-to-citizens policy, the strategies of providing on-line public service to citizens and diversification on service channel has been identified and the projects such as
1) government representative portal,
2) passport management system,
3) real estate registration system and
4) social insurance system have been identified to develop as separate projects.
Each of these projects along with the projects to be developed within framework of the other three policies have been described and specified in terms of objectives, scope, services, expected effects and considerations.
Of all above-mentioned projects and initiatives, the project on providing online public services through government representative portal based has been selected for detailed review and discussion.
The main reasons for selecting this particular project are that
1) it has some historic background to it and some lessons have been learnt and experiences gained from the previously implemented projects, such as public management information system and open-government website;
2) it is an opportunity for citizens to have easy access to government administration and receive government services using ICT;
3) in order to provide citizens with access to government administration and provide services to them using ICT, the project has to consider challenges for providing access to citizens and be able to serve any citizen, from any location, not depending on religion, gender or age as it is outlined in the Constitution of Mongolia. (Constitution of Mongolia, p.1)
All these reasons will be described later on, but special focus will be on the third reason – access to government administration and services using ICT by citizens. The government organizations are putting extensive efforts and hard work to make their information and services on-line. The example of this kind of initiative is the website of the Mongolian Taxation Authority . The website does not only have information about the taxation authority, but also have extensive list of services provided to citizens and organizations. Among this list is the downloadable soft copies of all taxation forms, which were available before only at the tax agents in printed form and which were requested to purchase from them. Now any business entity or individual can download those forms from this website, fill it out and bring it to the “one point of service” and submit it to the tax agent. It’s an extensive advancement in the use of the information and communications technology in government administration. However, only those who have access to Internet and its services can have access to this website and benefit from such services. According to survey conducted in 2003, there are only 50,000 users of Internet in Mongolia, which counts to around 4% of total population of Mongolia. The remaining part of population, who does not have this access, is left behind. One of the ways of addressing issue of access for this remaining part of the population is the Internet and information centers.
As it was described earlier, the citizens’ information and service centers were established in some aimag centers years ago and only few are operational currently. Moreover, even in existing centers, there is a limited use of those centers in accessing government information and services using ICT. The potential for development of government representative portal provides broader opportunities for citizens to have this access.
The government representative portal can be based on the experiences and knowledge gained from public management information system and open-government website initiatives. The open-government website has been an initiative of the Prime Minister in 2001 and has been setup with the purpose to “strengthen linkage between the private sector and public and to facilitate public contribution of opinions to state policies and laws” http://www.open-government.mn. The initial beneficiaries of the current initiative were private sector, so that they would have an opportunity to speak directly with the government officials and Prime Minister himself. Over the 5 years of its operation, the number of users has been steadily increasing, however, the majority of the users have became citizens, not business people as it was initially targeted to. The content of the website is managed by the office of the Prime Minister. The contact page has email of Prime Minister and staff, who are responsible for maintenance of the website, i.e. website manager and webmaster. All government organizations, agencies and institutions are involved in the activities of the website, especially those related to the forums, discussions and submissions to the draft laws. There is a working schedule of line Ministers, who are responsible for providing an overview of the website and reporting about it at the meeting of the Government, which is approved by the Prime Minister of Mongolia (please see Annex 3. Schedule of work at “open-government” website) As it can be seen, the working schedule is developed for 6 months. Since the open-government website is closely linked with the activities of line ministries, government agencies and institutions, it has an extensive list of linkages to websites of the government organizations, projects and initiatives. In turn, the link to the open-government website is available on each of the websites of the governmental organizations, including ministries, agencies, institutions and governor’s offices at aimag levels as well as on the websites of the non-governmental organizations, such as Open forum, MIDAS/MONITA NGO, Mongolian development gateway, etc. According to information available at the website of the Cabinet Secretariat of the Prime Minister’s office, at each of the government meeting, the line Ministers are expected to provide updates and information about their works at the open-government website, which is include in the agenda of the Government meeting. http://www.pmis.gov.mn/cabinet/index.php?news5
The public management information system in turn has also been expanding, since its startup in 1996. The website of the governmental organizations are now extended to include websites not only of the central government organizations and agencies, but also websites of the governor’s offices of 21 aimags along with information about the governor’s offices of 340 soums. The Cabinet secretariat as the main implementing agency for maintaining and regularly updating information on this website has been coordinating and cooperating with other government organizations, ministries, agencies, institutions and with donor and international organizations.
For about 10 years of its existence and operation, it has been visited by over 540,000 people, which counts down to over 4500 visitors per month, the number which is competing with the popular non-governmental sites such as http://www.olloo.mn, http://www.forum.mn, http://www.gateway.mn, etc. The easy access to websites of other government and state organizations, provide broader opportunities for searching necessary information, along with opportunity to receive on-line services from government organizations, which are troublesome to get otherwise. For example, the links to state and governmental organizations, such as Parliament http://www.parl.gov.mn, Presidency http://www.president.mn and Government facilitates the searching process and dismisses need of remembering addresses of every government organization. The fact that it is frequently visited, its content viewed and feedbacks are provided on regular basis indicates its popularity and attractiveness among different stakeholders. Still, there are few people who have access to Internet and these websites, could benefit from this information and services.
The E-government Master plan has been developed with the vision to “Establish state policy and regulatory regime that provides favorable environment for development of government-legislation, economy-business, and citizen-society frameworks based on consideration of information and communication technology as a major accelerator to develop Mongolia in 21st century. ”
It has three major frameworks:
1) government-legislation framework,
2) business-economy framework and
3) human development framework.
Within each of these frameworks, 18 projects and 4 policies are required to be developed. Among those policies, there were government-to-citizens, government-to-business, government-to-government and infrastructure.
As part of the government-to-citizens policy, the strategies of providing on-line public service to citizens and diversification on service channel has been identified and the projects such as
1) government representative portal,
2) passport management system,
3) real estate registration system and
4) social insurance system have been identified to develop as separate projects.
Each of these projects along with the projects to be developed within framework of the other three policies have been described and specified in terms of objectives, scope, services, expected effects and considerations.
Of all above-mentioned projects and initiatives, the project on providing online public services through government representative portal based has been selected for detailed review and discussion.
The main reasons for selecting this particular project are that
1) it has some historic background to it and some lessons have been learnt and experiences gained from the previously implemented projects, such as public management information system and open-government website;
2) it is an opportunity for citizens to have easy access to government administration and receive government services using ICT;
3) in order to provide citizens with access to government administration and provide services to them using ICT, the project has to consider challenges for providing access to citizens and be able to serve any citizen, from any location, not depending on religion, gender or age as it is outlined in the Constitution of Mongolia. (Constitution of Mongolia, p.1)
All these reasons will be described later on, but special focus will be on the third reason – access to government administration and services using ICT by citizens. The government organizations are putting extensive efforts and hard work to make their information and services on-line. The example of this kind of initiative is the website of the Mongolian Taxation Authority . The website does not only have information about the taxation authority, but also have extensive list of services provided to citizens and organizations. Among this list is the downloadable soft copies of all taxation forms, which were available before only at the tax agents in printed form and which were requested to purchase from them. Now any business entity or individual can download those forms from this website, fill it out and bring it to the “one point of service” and submit it to the tax agent. It’s an extensive advancement in the use of the information and communications technology in government administration. However, only those who have access to Internet and its services can have access to this website and benefit from such services. According to survey conducted in 2003, there are only 50,000 users of Internet in Mongolia, which counts to around 4% of total population of Mongolia. The remaining part of population, who does not have this access, is left behind. One of the ways of addressing issue of access for this remaining part of the population is the Internet and information centers.
As it was described earlier, the citizens’ information and service centers were established in some aimag centers years ago and only few are operational currently. Moreover, even in existing centers, there is a limited use of those centers in accessing government information and services using ICT. The potential for development of government representative portal provides broader opportunities for citizens to have this access.
The government representative portal can be based on the experiences and knowledge gained from public management information system and open-government website initiatives. The open-government website has been an initiative of the Prime Minister in 2001 and has been setup with the purpose to “strengthen linkage between the private sector and public and to facilitate public contribution of opinions to state policies and laws” http://www.open-government.mn. The initial beneficiaries of the current initiative were private sector, so that they would have an opportunity to speak directly with the government officials and Prime Minister himself. Over the 5 years of its operation, the number of users has been steadily increasing, however, the majority of the users have became citizens, not business people as it was initially targeted to. The content of the website is managed by the office of the Prime Minister. The contact page has email of Prime Minister and staff, who are responsible for maintenance of the website, i.e. website manager and webmaster. All government organizations, agencies and institutions are involved in the activities of the website, especially those related to the forums, discussions and submissions to the draft laws. There is a working schedule of line Ministers, who are responsible for providing an overview of the website and reporting about it at the meeting of the Government, which is approved by the Prime Minister of Mongolia (please see Annex 3. Schedule of work at “open-government” website) As it can be seen, the working schedule is developed for 6 months. Since the open-government website is closely linked with the activities of line ministries, government agencies and institutions, it has an extensive list of linkages to websites of the government organizations, projects and initiatives. In turn, the link to the open-government website is available on each of the websites of the governmental organizations, including ministries, agencies, institutions and governor’s offices at aimag levels as well as on the websites of the non-governmental organizations, such as Open forum, MIDAS/MONITA NGO, Mongolian development gateway, etc. According to information available at the website of the Cabinet Secretariat of the Prime Minister’s office, at each of the government meeting, the line Ministers are expected to provide updates and information about their works at the open-government website, which is include in the agenda of the Government meeting. http://www.pmis.gov.mn/cabinet/index.php?news5
The public management information system in turn has also been expanding, since its startup in 1996. The website of the governmental organizations are now extended to include websites not only of the central government organizations and agencies, but also websites of the governor’s offices of 21 aimags along with information about the governor’s offices of 340 soums. The Cabinet secretariat as the main implementing agency for maintaining and regularly updating information on this website has been coordinating and cooperating with other government organizations, ministries, agencies, institutions and with donor and international organizations.
For about 10 years of its existence and operation, it has been visited by over 540,000 people, which counts down to over 4500 visitors per month, the number which is competing with the popular non-governmental sites such as http://www.olloo.mn, http://www.forum.mn, http://www.gateway.mn, etc. The easy access to websites of other government and state organizations, provide broader opportunities for searching necessary information, along with opportunity to receive on-line services from government organizations, which are troublesome to get otherwise. For example, the links to state and governmental organizations, such as Parliament http://www.parl.gov.mn, Presidency http://www.president.mn and Government facilitates the searching process and dismisses need of remembering addresses of every government organization. The fact that it is frequently visited, its content viewed and feedbacks are provided on regular basis indicates its popularity and attractiveness among different stakeholders. Still, there are few people who have access to Internet and these websites, could benefit from this information and services.
Up to $10,000 in monthly benefits
Your needs for income protection can be satisfied with as little as $400 or as much as $10,000 a month. You can apply for coverage that's about 60% of your net monthly earned income, taking into consideration any other disability coverage you have inforce or have applied for with another insurance carrier.
Why 60%? That's usually a good estimate of your take-home pay (after taxes) every month while working. Receiving that amount of monthly benefit means you won't likely suffer a dramatic drop in your after-tax income just because you're disabled and can't work. Under current tax laws, most Plan benefits are free of Federal income tax as long as you pay your premiums with personal funds.
If you become disabled, this Plan can help replace the income you earned previously as a practicing dentist. The monthly dollar amount (or benefit) you could receive will depend on several factors: the severity of your disability (total or partial), your monthly Income Protection coverage amount, any other disability income coverage you may have, and your net monthly income prior to disability. -->
Important note: Under the ADA Income Protection Plan, you will not be forced to work in another career. In other words, your eligibility for benefits will never be determined based on your capacity for work in another occupation. (See the purpose of disability income insurance to understand why.) Also, you will not be required to undergo rehabilitation for dentistry or any other occupation, and you can always voluntarily pursue another job as a way to generate income and/or stay active, without that income adversely affecting your eligible benefits under this Plan. Most importantly, the choice to pursue another occupation is entirely up to you: Even if you do pursue another career while disabled, you can change your mind at any time — no questions asked — and still be eligible for full benefits.
Why 60%? That's usually a good estimate of your take-home pay (after taxes) every month while working. Receiving that amount of monthly benefit means you won't likely suffer a dramatic drop in your after-tax income just because you're disabled and can't work. Under current tax laws, most Plan benefits are free of Federal income tax as long as you pay your premiums with personal funds.
If you become disabled, this Plan can help replace the income you earned previously as a practicing dentist. The monthly dollar amount (or benefit) you could receive will depend on several factors: the severity of your disability (total or partial), your monthly Income Protection coverage amount, any other disability income coverage you may have, and your net monthly income prior to disability. -->
Important note: Under the ADA Income Protection Plan, you will not be forced to work in another career. In other words, your eligibility for benefits will never be determined based on your capacity for work in another occupation. (See the purpose of disability income insurance to understand why.) Also, you will not be required to undergo rehabilitation for dentistry or any other occupation, and you can always voluntarily pursue another job as a way to generate income and/or stay active, without that income adversely affecting your eligible benefits under this Plan. Most importantly, the choice to pursue another occupation is entirely up to you: Even if you do pursue another career while disabled, you can change your mind at any time — no questions asked — and still be eligible for full benefits.
Protection even if you can't work full-time
What if you can return to work after a disability, but only on a part-time basis? This Plan includes residual disability benefits that can supplement your income when you return to dentistry less than 20 hours per week, or when you return to work for more than 20 hours each week but are unable to perform some procedures or other duties. Under the standard plan, you are eligible for residual benefits if you have returned to part-time work after having been totally disabled for the length of your waiting period. And with the Plan's Residual Plus option, you can qualify for residual benefits sooner, and even without ever being totally disabled.
If eligible for residual benefits, you can receive at least 50% of your full benefit amount for the first six months you are partially disabled. If your earnings from dentistry fall to 20% or less of what they were before your disability, then you can receive your full benefit amount.
If eligible for residual benefits, you can receive at least 50% of your full benefit amount for the first six months you are partially disabled. If your earnings from dentistry fall to 20% or less of what they were before your disability, then you can receive your full benefit amount.
Own occupation" coverage protects you as a practicing dentist
This Plan defines disability on an "own occupation" basis. Benefits are payable if an illness or injury renders you unable to practice in your special area of dentistry (including general dentistry or one of the ADA-recognized specialties). Your benefits aren't reduced just because you choose to work in another occupation — an important distinction that maximizes your potential to replace your pre-disability income.
Benefits can be paid on this basis until you turn 65 (or for up to 2 years if you're disabled between ages 63 and 70) — regardless of your age at the time of disability. This is an extremely generous provision, since many other plans that provide "own occupation" coverage will limit benefits to just a few years and then switch to a much more stringent "any occupation" definition of disability that makes it harder for you to qualify for benefits.
It's important to understand that the "own occupation" definition of disability determines when you are eligible to receive benefits, not how much you can collect or for how long. As long as you cannot work as a dentist due to disability, you would be considered disabled under this Plan.
Benefits can be paid on this basis until you turn 65 (or for up to 2 years if you're disabled between ages 63 and 70) — regardless of your age at the time of disability. This is an extremely generous provision, since many other plans that provide "own occupation" coverage will limit benefits to just a few years and then switch to a much more stringent "any occupation" definition of disability that makes it harder for you to qualify for benefits.
It's important to understand that the "own occupation" definition of disability determines when you are eligible to receive benefits, not how much you can collect or for how long. As long as you cannot work as a dentist due to disability, you would be considered disabled under this Plan.
Additional options provide flexibility
To make this Plan even more versatile, you have three more options to consider:
1. With the Residual Plus option, you do not first have to be totally disabled to receive benefits. Days of both total and partial disability count toward your waiting period, even if they are not consecutive. For example, with the Residual Plus option and a 90-day waiting period, you could qualify for partial benefits when you were totally or partially disabled for any 90 out of 180 days. Because of the added flexibility it provides, the Residual Plus option is considered indispensable by the ADA.
2. The Future Increase Option guarantees you future coverage increases with no medical exam. Coverage can be increased up to five times, $500 per year (for a maximum increase of $2,500), subject to the Plan's overall maximum of $10,000. Members under age 50 can apply for this option, and participants with the option can exercise these increases until age 55. Once you've elected this option, you will be reminded of your opportunity to exercise an increase election at every eligible renewal.
3. The Cost of Living (COLA) Option automatically increases your benefit payments to keep pace with increases in the cost of living, in the event your total disability lasts longer than 12 months. Considered an "inflation fighter" feature, annual benefit adjustments are based on increases in the Consumer Price Index, and are particularly beneficial for long-term disabilities that extend for several years or even decades. Applicants under age 50 are eligible to apply for this option.
1. With the Residual Plus option, you do not first have to be totally disabled to receive benefits. Days of both total and partial disability count toward your waiting period, even if they are not consecutive. For example, with the Residual Plus option and a 90-day waiting period, you could qualify for partial benefits when you were totally or partially disabled for any 90 out of 180 days. Because of the added flexibility it provides, the Residual Plus option is considered indispensable by the ADA.
2. The Future Increase Option guarantees you future coverage increases with no medical exam. Coverage can be increased up to five times, $500 per year (for a maximum increase of $2,500), subject to the Plan's overall maximum of $10,000. Members under age 50 can apply for this option, and participants with the option can exercise these increases until age 55. Once you've elected this option, you will be reminded of your opportunity to exercise an increase election at every eligible renewal.
3. The Cost of Living (COLA) Option automatically increases your benefit payments to keep pace with increases in the cost of living, in the event your total disability lasts longer than 12 months. Considered an "inflation fighter" feature, annual benefit adjustments are based on increases in the Consumer Price Index, and are particularly beneficial for long-term disabilities that extend for several years or even decades. Applicants under age 50 are eligible to apply for this option.
Group Health Insurance
Coverage underwritten on members of a natural group, such as employees of a particular business, union, association, or employer group. Each employee is entitled to benefits for hospital room and board, surgeon and physician fees, and miscellaneous medical expenses. There is a Deductible and a Coinsurance requirement each employee must pay. Characteristics of group health insurance include:
1. True Group Plan-one in which all employees must be accepted for coverage regardless of physical condition. (For example, coverage cannot be denied because of a pre-existing condition such as cancer.) Usually an employee must apply and pay the first premium within the first 30 days of employment or he or she forfeits the right to automatic coverage (a form of Guaranteed Insurability). Individuals are covered under a Master Contract each receiving a certificate denoting coverage.
2. -Schedule of Benefits-describes what the insured and his or her covered dependent(s) is entitled to in the event of disease, illness, or injury. After the insured or the covered dependent has satisfied the Deductible (defined as the first portion of all of the eligible expenses that occur during a calendar year of coverage), the insurance company pays a given percentage (usually 80%) until a total sum (stop loss), usually $5000, is reached for the calendar year. After the total sum has been reached, the insurance company pays 100% of the total eligible expenses until the end of the calendar year subject to a maximum lifetime amount. See also Dependent.
3. -Eligible Expenses-include hospital bills, surgery, doctor's services, private nursing, medicines, and X-rays. Payment allowed for these and other expenses are spelled out in the policy. For example, the hospital's daily charge for room and board is subject to a specified maximum.
4. -Exclusions from Provisions of Medical Benefits-many exclusions occur in group health plans, including benefits under Workers Compensation; certain mouth conditions; convalescent or rest cures; expenses incurred by a member of a Health Maintenance Organization (HMO) or other prepaid medical plan; expenses associated with intentional self-inflicted injuries or attempt at suicide.
5. -coordination of benefits-when there are two or more group health insurance plans covering the insured, one plan becomes the Primary Plan and the other plan(s) becomes the Secondary Plan(s). The Primary Plan is required to pay benefits due the insured and/or covered dependents before any other plan pays benefits. When a claim is made, the primary plan must pay the claim without regard to the benefits provided under any other plan. The secondary plan pays the difference between the total claim amount and the amount that the primary plan has paid, up to total allowable expenses
1. True Group Plan-one in which all employees must be accepted for coverage regardless of physical condition. (For example, coverage cannot be denied because of a pre-existing condition such as cancer.) Usually an employee must apply and pay the first premium within the first 30 days of employment or he or she forfeits the right to automatic coverage (a form of Guaranteed Insurability). Individuals are covered under a Master Contract each receiving a certificate denoting coverage.
2. -Schedule of Benefits-describes what the insured and his or her covered dependent(s) is entitled to in the event of disease, illness, or injury. After the insured or the covered dependent has satisfied the Deductible (defined as the first portion of all of the eligible expenses that occur during a calendar year of coverage), the insurance company pays a given percentage (usually 80%) until a total sum (stop loss), usually $5000, is reached for the calendar year. After the total sum has been reached, the insurance company pays 100% of the total eligible expenses until the end of the calendar year subject to a maximum lifetime amount. See also Dependent.
3. -Eligible Expenses-include hospital bills, surgery, doctor's services, private nursing, medicines, and X-rays. Payment allowed for these and other expenses are spelled out in the policy. For example, the hospital's daily charge for room and board is subject to a specified maximum.
4. -Exclusions from Provisions of Medical Benefits-many exclusions occur in group health plans, including benefits under Workers Compensation; certain mouth conditions; convalescent or rest cures; expenses incurred by a member of a Health Maintenance Organization (HMO) or other prepaid medical plan; expenses associated with intentional self-inflicted injuries or attempt at suicide.
5. -coordination of benefits-when there are two or more group health insurance plans covering the insured, one plan becomes the Primary Plan and the other plan(s) becomes the Secondary Plan(s). The Primary Plan is required to pay benefits due the insured and/or covered dependents before any other plan pays benefits. When a claim is made, the primary plan must pay the claim without regard to the benefits provided under any other plan. The secondary plan pays the difference between the total claim amount and the amount that the primary plan has paid, up to total allowable expenses
Little Master Plan for children launched
Aviva Life Insurance, on Tuesday, announced the signing up of cricketing legend Sachin Tendulkar as its brand ambassador.... Aviva believes it shares values like “commitment, honesty forward thinking, security and trust, typically associated with Sachin.”Company officials refused to disclose how much Sachin would be paid. For a brief while, Aviva had Amitabh Bachchan to pitch for its products. This was in 2005 when Aviva was associated with the movie Virudh to plug the line: “kal par control.”Aviva officials said that the company has been associated with cricket by taking up space on score boards and at other vantage points in the field as well as in the media. Coinciding with the Sachin announcement, Aviva has launched a new child plan called the Aviva Little Master. This plan is a unit-linked plan designed for parents to secure their child's future. The plan claims to provide the dual advantage of protection and savings. Aviva India Managing Director Bert Paterson said: “I am delighed to welcome the legendary Sachin Tendulkar to the Aviva family; Sachin is the most popular icon in India for all age-groups and his popularity transcends the boundaries of religion, caste and region.”In a recorded video presentation, Sachin said: “I am pleased to be representing a company like Aviva...I completely identify with Aviva’s values of teamwork, integrity and passion for winning.”
Health Insurance
Health Insurance is that type in which the insurer (Insurance Company providing the benefits) provides to the insured (who avails the benefit) with risk coverage benefits when the latter is sick or needs medical treatment. The Company pays the medical costs accrued due to an accident, prolonged sickness or even minor medical diagnoses.Medical Insurance or Health Insurance may be provided by a private organization or a government agency.
As per the definition, a health insurance policy is a legal agreement drawn between the insurance company and her customers. It differs from Life insurance from the fact that in the latter a person may purchase guaranteed renewable policy for a whole life at a constant premium rate. Health Insurance is not renewable and can only be purchased in a yearly basis.
The Insured or the customer usually enjoy the benefits of avoidi9ng the high medical costs like the doctor visits, lab tests, hospital stays, diagnostic tests, etc. The medical expenses are taken care of provided the customer pays his premium regularly. The rate of premium is influenced by the age and coverage required
As per the definition, a health insurance policy is a legal agreement drawn between the insurance company and her customers. It differs from Life insurance from the fact that in the latter a person may purchase guaranteed renewable policy for a whole life at a constant premium rate. Health Insurance is not renewable and can only be purchased in a yearly basis.
The Insured or the customer usually enjoy the benefits of avoidi9ng the high medical costs like the doctor visits, lab tests, hospital stays, diagnostic tests, etc. The medical expenses are taken care of provided the customer pays his premium regularly. The rate of premium is influenced by the age and coverage required
BAJAJ Allianz General House Insurance
Householders:-
Your home is our most valued possession, a haven of safety.But is it really as safe as we would like to believe? We at Bajaj Allianz realize your need to make your home as secure in reality as it is in your mind. This is why we bring to you the House- Holders' Insurance policy designed to cover various risks and contingencies faced by householders under a single policy.It provides protection for property and interests of the insured and his family members who permanently reside with the insured.A householder's insurance, protects not just your flat but also your domestic and electronic appliances.
Features
Very competitive premium rates
First loss basis option for burglary and jewellery
Flexible rating for personal accident of the insured
No valuation certificate required for jewellery upto Rs.2 lacs
Assembled computers can also be covered under EEI
Benefits:-
No strain on pockets of insured
Saving on cost
Customized cover can be opted by the insured
Save on time while proposing
Same policy addressing varied needs
Advantages:-
Single Proposal form
Complete coverage at reduced premium
Client needs being addressed
Simple and quick documentation
Related items get covered under respective sections
Your home is our most valued possession, a haven of safety.But is it really as safe as we would like to believe? We at Bajaj Allianz realize your need to make your home as secure in reality as it is in your mind. This is why we bring to you the House- Holders' Insurance policy designed to cover various risks and contingencies faced by householders under a single policy.It provides protection for property and interests of the insured and his family members who permanently reside with the insured.A householder's insurance, protects not just your flat but also your domestic and electronic appliances.
Features
Very competitive premium rates
First loss basis option for burglary and jewellery
Flexible rating for personal accident of the insured
No valuation certificate required for jewellery upto Rs.2 lacs
Assembled computers can also be covered under EEI
Benefits:-
No strain on pockets of insured
Saving on cost
Customized cover can be opted by the insured
Save on time while proposing
Same policy addressing varied needs
Advantages:-
Single Proposal form
Complete coverage at reduced premium
Client needs being addressed
Simple and quick documentation
Related items get covered under respective sections
Bajaj Allianz - Bajaj Allianz's Motor Insurance
Bajaj Allianz is a joint venture between Allianz AG one of the world's largest insurance companies, and Bajaj Auto, one of the biggest 2 and 3 wheeler manufacturers in the world. Bajaj Allianz is into both life insurance and general insurance.
Allianz Group is one of the world's leading insurers and financial services providers. Founded in 1890 in Berlin, Allianz is now present in over 70 countries with almost 174,000 employees. Bajaj group is the largest manufacturer of two-wheelers and three-wheelers in India and one of the largest in the world.
Today, Bajaj Allianz is one of India's leading and fastest growing insurance companies. Currently, it has presence in more than 550 locations with over 60,000 Insurance Consultants.
Motor Vehicle Insurance:-
Technology has made our daily life simpler in various ways.Motor vehicle is an invention which has made daily commuting easy. It is convenient and fast and saves our time. Though it is easy to own vehicle it is expensive maintaining a motor vehicle especially in case of damage caused to your vehicle due to some unavoidable circumstances or accidents. Bajaj Allianz's Motor Vehicle policy helps you in maintaining your vehicle in such situations.
Unique Feature:-
For claim free experience, discount available on subsequent renewal.
Discount available if voluntary excess opted for
Discount available for membership with approved automobile association
Discount available for installing approved anti-theft device
Depreciation, for the parts needing replacement in the accident is defined
Advantages:-
Standardised labour costs
Highest standards of service
Hassle-free inspection procedures
Benefits:-
Cashless settlement of repair claims at preferred garages.
Immediate receipt of policies
Speedy claim settlement
Highest standard of services at the preferred garages
Hassle-free documentation and inspection procedures
Quick settlement of major losses such as theft/total loss
Allianz Group is one of the world's leading insurers and financial services providers. Founded in 1890 in Berlin, Allianz is now present in over 70 countries with almost 174,000 employees. Bajaj group is the largest manufacturer of two-wheelers and three-wheelers in India and one of the largest in the world.
Today, Bajaj Allianz is one of India's leading and fastest growing insurance companies. Currently, it has presence in more than 550 locations with over 60,000 Insurance Consultants.
Motor Vehicle Insurance:-
Technology has made our daily life simpler in various ways.Motor vehicle is an invention which has made daily commuting easy. It is convenient and fast and saves our time. Though it is easy to own vehicle it is expensive maintaining a motor vehicle especially in case of damage caused to your vehicle due to some unavoidable circumstances or accidents. Bajaj Allianz's Motor Vehicle policy helps you in maintaining your vehicle in such situations.
Unique Feature:-
For claim free experience, discount available on subsequent renewal.
Discount available if voluntary excess opted for
Discount available for membership with approved automobile association
Discount available for installing approved anti-theft device
Depreciation, for the parts needing replacement in the accident is defined
Advantages:-
Standardised labour costs
Highest standards of service
Hassle-free inspection procedures
Benefits:-
Cashless settlement of repair claims at preferred garages.
Immediate receipt of policies
Speedy claim settlement
Highest standard of services at the preferred garages
Hassle-free documentation and inspection procedures
Quick settlement of major losses such as theft/total loss
Glossary
We are providing a glossary of Distance Education Terms.If you want a glossary of terms about the technologies used in distance education first connect to the International Teleconferencing Association site: Glossaries of Technological Terms (URL: http://www.itca.org/resources_ITCA/framesettest.html)Besides providing its own glossary, ITA provides hotlinks to other technology related glossaries.Another good technology glossary is: Glossaries of Learning Technologies Terms ( URL: http://olt-bta.hrdc-drhc.gc.ca/learning/glosse.html). This site provides links to resources in both English and French.Glossary of Distance Education TermsDistance education:Teaching and learning in which learning normally occurs in a different place from teaching.Distance learning:Term often used as synonymous with distance education, not strictly correctly since distance education includes teaching as well as learning.Distance education courses:Structured programs of instruction for learners in a different place from the teacher, having learning objectives, one or more teachers, a medium of communication, and subject matter.Distance education system:All the component processes that result in distance education, including learning, teaching, communication, design, and managementDistance education Institution:College, university or school system organized exclusively for distance education.Distance education Unit:A special unit dedicated to distance learning within a conventional college, university or school systemDistance education Consortium:Two or more distance education institutions or units who share in designing distance education courses, teaching them, or both.Distance education Program:Distance education provided by same staff of a conventional college, university, school system, or training department whose primary responsibilities are classroom instruction.Course design:Setting learning objectives, chosing media applications, planning evaluation and preparing instructional strategies in advance of student recruitment.Course team:Group of specialists in content, instructional design, learning and technologies convened to produce distance education course.Technology:Mechanisms for distributing messages, including postal systems, radio and television broadcasting companies, telephone, satellite and computer networks.Media:Messages that are distributed through the technologies, principally text in books, study guides and computer networks; sound in audio-tapes and broadcast: pictures in video-tapes and broadcast; text, sound and/or pictures in a teleconference.Interaction:Exchange of information, ideas, opinions between and among learners and teachers, usually occurring through technology with the aim of facilitating learning.Instructors (also tutors):Specialists in learning who interact through technology with students as they learn content, usually designed by course team, though quite often by the instructors themselves.Counselors:Specialists in learning who help individual students with academic or personal problems that interfere with learning.Assignments:Work produced by students and used by instructors for purposes of interaction and also evaluation.Economies of scale:Effect on unit cost of producing large quantities. In distance education the larger the number of users of a course or the larger the number of users of the system, the lower the cost for each person
Software
Are you a parent, lover or employer with good reason to be concerned about how another person is using your computer or internet connection?If so, In The Know is for you. This unique and affordable software will allow you to easily monitor any and all activity on your computer 24 hours a day. Just take 2 minutes to install the program, and from then on, every keystroke typed will be recorded. Better than that, In The Know will continually take pictures of the computer screen and record precisely what the user is seeing. This allows you to see both sides of e-mail exchanges and chat room discussions. You control what programs to photograph and how often to take pictures.When you want to see what has been recorded you simply type a password that you provide during the setup process. A view screen appears, showing you all pictures captured by In The Know. The pictures are presented in small thumbnail format and neatly organized by date and time. A single mouse click on a thumb nail image shows the full sized image that you can view, print and save to disk. Captured keystrokes are also easily viewed and printed.In The Know runs secretly on any Windows 95, 98, NT, 2000 or XP computer. It is undetectable to even the most experienced computer user. It does not appear in the task list and consumes very few system resources. The information captured by In The Know also consumes very little disk space. You easily control how much space it is allowed to consume before disposing of old information automatically.At just $19.95, In The Know is must-have software for anyone who needs to know the truth about others computer usage. Best of all, you can try the program for free. Just download the program. The download file is very small and will take just seconds to receive.
E-governance
The concept of electronic governance chosen by the Council of Europe covers the use of electronic technologies in three areas of public action:- relations between the public authorities and civil society - functioning of the public authorities at all stages of the democratic process (electronic democracy) - the provision of public services (electronic public services)This is a broad definition covering the different aspects of relations between the state and civil society. The Council of Europe is currently considering a recommendation which will offer a common vision of how digital technology can be incorporated into exercise of power. Aware of the risks entailed in these technologies, the Council reaffirms the need to strengthen democratic institutions and processes and to involve the public in political choices so that their needs and priorities are respected. In this connection, governments must ensure that they involve the whole population, in particular by ensuring that the largest possible number of citizens are educated in the use of computers.The European Union is supporting the development of electronic government (e-government), which is the modernisation of public administration bringing it closer to civil society and businesses through the use of information and communication technologies. Its action plan, which was given the name of “e-Europe” and was launched at the Seville summit in 2000, envisages not only the development of high-speed access and the security of the network, trade and electronic services but also on-line access to public administrations.“The use of information and communication technologies in public administrations combined with organisational change and new skills in order to improve public services and democratic processes and strengthen support to public policies” said the European Commission in its Communication on e-Government’s role for Europe’s future. It considers e-government as a prerequisite for improving Europe’s competitiveness at the dawn on the 21st century.
How much life insurance should I have?
These days a lot of thumb rules for the amount of insurance an individual needs get bandied around. "The insurance cover of an individual should be at least 5-7 times his annual income" is a rule that gets bandied around the most. While this rule ensures that an individual has some cover, it may not ensure that the individual has the right amount of cover. The "human life approach" is the right way of calculating the exact amount of life insurance that is needed. Let us take the case of a 30-year old individual who is married and lives with his parents. His wife is a homemaker and his parents are totally dependant on him. He earns Rs 60,000 per month, after tax or Rs 720,000 per annum. His own monthly expenses are around Rs 10,000 per month. The remaining Rs 50,000 is what is available to his family. Let us say that if the individual expires suddenly his family will require Rs 50,000 per month to continue living at the same standard that they were used to. To earn Rs 50,000 per month a capital of Rs 75 lakh (Rs 7.5 million) would be required assuming a rate of return of 8 per cent per annum. At 8 per cent per annum, Rs 600,000 can be earned per year from an investment of Rs 75 lakh. Rupees six lakhs in a year, means Rs 50,000 per month, the amount the family will need. The individual should essentially be taking a term insurance policy of Rs 75 lakh. Term insurance policies are pure insurance policies. If the individual dies during the term of the policy his nominee will receive Rs 75 lakh.
If he survives the period of the policy, he does not get anything. The yearly premium on a cover of Rs 75 lakh, for a period of 25 years, on Anmol Jeevan-I, the term insurance policy from Life Insurance Corporation of India comes to Rs 28,660 per annum.The fact that there is more than one methodology to calculate the HLV makes the subject even more challenging to understand.
The most common definition of HLV is the expected life time earnings of an individual, i.e. what is the total income that the individual is expected to earn over the remainder of his working life, expressed in present Rupee terms.
For the uninitiated, inflation eats away the value of money; a Rupee today is worth more than a Rupee tomorrow and therefore one needs to suitably 'discount' future earnings to express the value in present Rupee terms. Our view on how HLV should be calculated is quite different from this. HLV in our view is the monetary value of all the yet-to-be fulfilled needs of the dependents plus all the outstanding liabilities. Why do we define HLV in this manner (notice that we do not factor in earnings at all)? Simply because even though expected incomes may not be sufficient to meet the needs, the needs are still there. And an individual strives to meet the needs of his/her dependents. So, the HLV thrown up by our definition is really a 'target' that you should have in mind; you can and possibly may have to plan for a lower HLV, but don't despair over that.
If he survives the period of the policy, he does not get anything. The yearly premium on a cover of Rs 75 lakh, for a period of 25 years, on Anmol Jeevan-I, the term insurance policy from Life Insurance Corporation of India comes to Rs 28,660 per annum.The fact that there is more than one methodology to calculate the HLV makes the subject even more challenging to understand.
The most common definition of HLV is the expected life time earnings of an individual, i.e. what is the total income that the individual is expected to earn over the remainder of his working life, expressed in present Rupee terms.
For the uninitiated, inflation eats away the value of money; a Rupee today is worth more than a Rupee tomorrow and therefore one needs to suitably 'discount' future earnings to express the value in present Rupee terms. Our view on how HLV should be calculated is quite different from this. HLV in our view is the monetary value of all the yet-to-be fulfilled needs of the dependents plus all the outstanding liabilities. Why do we define HLV in this manner (notice that we do not factor in earnings at all)? Simply because even though expected incomes may not be sufficient to meet the needs, the needs are still there. And an individual strives to meet the needs of his/her dependents. So, the HLV thrown up by our definition is really a 'target' that you should have in mind; you can and possibly may have to plan for a lower HLV, but don't despair over that.
Monday, December 17, 2007
Underinsurance Can Spell Disaster For Homeowners
Insurance is meant to give homeowners peace of mind, but an increasing number of policy holders are putting themselves at risk by neglecting to insure their home and contents adequately.
What Answers To Questions For A Home Insurance Price Quote Will I Need To Know?
Lets face it, finding the best home insurance price quote can be an aggravating task if you?re not fully prepared with answers to the common questions that most insurance companies will ask. This article outlines the questions that an insurance agent will ask you when you?re requesting quotes for home insurance. Having this information handy will make finding house insurance easier and save you valuable time.
Choosing the Best Life Insurance Option for You
Life insurance in the UK is becoming more and more popular with many people now realizing the importance and the benefits of a good life insurance policy. There are two main types of popular life insurance, both of which offer a range of invaluable benefits to UK consumers.
Disaster Decision - Do You Need Insurance?
The expenses involved with owning a home can be overwhelming at times - routine maintenance, repairs, seasonal preparations, improvements. Not to mention taxes, fees, and all those monthly bills. Some homeowners, in trying to reduce their expenses, wonder if they really need disaster insurance.
whatis insurance
insurance (promise of reimbursement in the case of loss; paid to people or companies so concerned about hazards that they have made prepayments to an insurance company)
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