Leenachandan:035553 : Hello Sir, Good Evening
Leena:035735 : Good Evening Sir
khushal.devera:035834 : Hi leena, Good Evening
khushal.devera:035905 : Dear Friends,Good Evening to all of you! Before we start with the chat session let me give you an overview on the insurance sector.
khushal.devera:040043 : Overview on Insurance:There are 22 life insurance companies and 18 General Insurance companies in India. In Life Insurance sector LIC is the country's largest life insurance company with more than 70% share in the country�s total premium market share and more than 50% share in the country�s new premium market share. While in General Insurance, New India Assurance is the country's largest general insurer with close to 20% market share.
khushal.devera:040311 : The life insurance sector in India is under penetrated it constitutes around 4% of the total GDP as compared to other insurance countries where the penetration is 8-10% of total GDP
khushal.devera:040528 : Today we will discuus the following problems in the topic "Insurance need and analysis"1.What are the different methods of estimating Life Insurance need?2.How much Insurance does an Individual Need
Ashish.thakre:040703 : sir please can u tell me about different methods of estimating life insurance needs?
KV:040809 : why one need to insure his life and when he is not geting some disease then the money gets eroded in case of term insurance. what one can do in this case?
khushal.devera:040924 : Dear Ashish, There are various methods of estimating insurance needs. They are as follows :
khushal.devera:041020 : 1. Thumb Rule 2. Human Life Value 3. Needs Based Approach
khushal.devera:041057 : 1.Thumb RuleThumb Rule is divided into two parts. They are a.Income Rule : According to this rule, you should buy life insurance cover for a sum which is equal to certain multiple of your annual net income.(income is net income ie after deducting your personal expenses)For eg: Rajesh is 30 year old and his annual income is Rs 2 lakh his personal expense is Rs 20000. Therefore he requires an insurance of Rs 180000*15 � 27 lakhb.Premium as percentage of Rule: According to this method 6% of the breadwinner�s gross total income additional 1% of each dependent should be spent as life insurance premium.For Eg: Rajesh is 30 year old and his annual income is Rs 2 lakh he is married and have one son then the premium which he can pay is 6% of 200000 2% of 200000(dependent wife and son) � Rs 16000
khushal.devera:041150 : 2.Human Life Value : The human life value focuses on the earnings of the individual that would have been lost in case of premature death. It is the present value of the individuals earning capacity till retirement.For Eg: Mr Arun is 40 year old and he is planning to retire at age 60. Thus time to retire is 20 years. His annual income is Rs 7 lakh and his personal expenses is Rs 170000 (personal expenses include his IT return, life insurance premium, travelling charge all this will stop once he dies) therefore we need to give his family (700000-170000) Rs 530000 for 20 years. Assume interest rate of 6%Therefore According HLV Arun needs an insurance of Rs 60.79 lakh
Sonali:040954 : which one is better plan between term insurance and ulips?
khushal.devera:041623 : Dear Sonali, Insurance is a risk management tool you have a risk to die and as a precaution against that risk you need a insurance term insurance is one where you will get higher cover for lower premium (one should look toward term insurance if he has higher debt) while in case of ULIP policy the charges are very very high so one should opt for ulip only if has a goal which is atleast 10 year away so it all depends on your circumstances
Sonia:041508 : What about the terror insurance? What does it cover?
khushal.devera:042216 : Dear KV one need to take a insurance in the following circumstances if he has dependents to look afer in case he is the only bread winner in his family, if he has taken a higher debt, if he is close to his retirement and not accumulated corpus. please understand that insurance is not a contract from which you can earn. when you take a motor vehicle insurance do you worry about the premium lost in case you have not faced any accident you take insurance bcoz your vehicle has a risk of facing an accident similarly with life insurance you require it because you have a risk of premature death and insurance protects your family towards the same
Shah:042535 : Can you give some light on FDI policy in insurance sector and its prospects?
khushal.devera:043105 : Dear Sonali, Prior to 9/11, standard commercial insurance policies included terrorism coverage as part of the package, effectively free of charge. Today, terrorism coverage is generally offered separately at a price that more adequately reflects the current risk. Terror Insurance is the insurance which covers an individual against death in case of terrorist attacks the same has to be declared a �certified act� by the Secretary of the Treasury.
khushal.devera:043456 : Dear Shah, At present the FDI in Indian insurance companies is capped at 26% there have been talks to raise this cap to 49% recently with the new government in force (Congress) we expect the change when the budget is announced The prospect are great because it will help the Indian insurance companies with lot of liquidity
Kedia:042317 : Insurance in general is of various types, like car, goods etc etc, so how does a man can decide for which one he should opt for? And how does he prioritize it?
Manali:043747 : What would be the effect if restriction of single brand retail is removed?
Mona:043931 : What are riders Sir, will a rider on mutual fund work similar to ULIP?
khushal.devera:044538 : Dear Kedia, one has first insure his life adequately, if that is done then one has to make investments to reach his goals if that is also completed and you have money to invest then one has to look insuring his house hold appliances, one has to take insurance of the costly item first and it will not be advisable to take general insurance in case if you are a business man then you should insure your inventory whether it is car or goods
khushal.devera:044652 : Dear Kedia, one has first insure his life adequately, if that is done then one has to make investments to reach his goals if that is also completed and you have money to invest then one has to look insuring his house hold appliances, one has to take insurance of the costly item first and it will not be advisable to take general insurance in case if you are have not fulfilled your goals in case you are a business man then you should insure your inventory whether it is car or goods
khushal.devera:044818 : Dear Manali, i request you to elaborate
khushal.devera:044913 : Dear Mona, Rider is an additional benefit which comes at an extra premium
khushal.devera:045052 : There is a lot of difference between a rider from ULIP
Sundaram:044530 : How to decide on the amont of insurance cover expecially while going for a Life Insurance policy?
khushal.devera:045401 : Dear Sundaram, Taking life insurance depends on number of factors 1. Age of dependents 2. Desired standard of living3. The amount of resources the family has such as savings, investments and dependents earning capacity.4. Expenses in connection with the death of the member (funeral expenses, final medical expenses etc)5. Payment of debts (Home loan, Car loan)6. Special needs (children�s education expenses etc)7. Retirement income for the surviving spouse and for other dependents
Manali:045225 : Sir, Single brand retail issue is with regard to bharti-Walmart case since foreign brands are allowed to enter thrgh a JV . What if this is removed
khushal.devera:045432 : if you use thumb rule then it is your net annual income * 15
khushal.devera:045540 : if you use HLV then you are replacing your income uptill retirement 1. Age of dependents 2. Desired standard of living3. The amount of resources the family has such as savings, investments and dependents earning capacity.4. Expenses in connection with the death of the member (funeral expenses, final medical expenses etc)5. Payment of debts (Home loan, Car loan)6. Special needs (children�s education expenses etc)7. Retirement income for the surviving spouse and for other dependents
khushal.devera:045624 : and in needs based approach you look towards meeting your needs it is calculated as Life Insurance Required = Cash Needs P.V of Net income needs P.V of Special needs � Expected available assets.
Sourabh:045525 : How is medical insurance different from critical illness policy?
khushal.devera:050055 : Dear Manali, I understand,But India as a country needs lot of capital for growth and that is why we allow foriegn brands to ivest in retail, insurance and various other sectors.That is how they get a chance to sell their products in India
khushal.devera:050253 : Dear Sourabh Medical Insurance is the one shich takes care of you in case you have helath related problems but Critical illness cover insures you against suffering disabilty or facing an accident which turns you handicapped
Reshma:045336 : How are premiums on insurance calculated. What factors does a lay person take in as regards premiums
khushal.devera:050510 : Dear Reshma, Actuaries are the people who use Mortality tables to calculate premium for an insurance policy as a layman one can read books from LIC Ready Reckoner (Nipun Publication) to understand it better
Leenachandan:041346 : Can you plz elaborate the insurance need in today`s life?
Nisha:050644 : What exactly is covered in car insurance?
khushal.devera:050734 : Insurance is the must for all of us, but do not make a mistake of looking at as an investment. one more important thing is that the amount of insurance required keep reducing as we approach towards the retirement.
khushal.devera:050854 : Dear Friends, I have enjoyed chatting with all of you good bye
Yogita:050928 : Thank you Sir, It was nice having you on the chat.
Leena:050813 : Thank You for your valuable time
khushal.devera:051002 : All the queries which you have on investments / Insurance or any other topic you can always contact me at Khushal.rakesh@gmail.com
khushal.devera:051055 : Thanks Leen, Yogita it was please chatting with you.
khushal.devera:051130 : Thanks leena, Yogita it was pleasure chatting with you
That is the end of the chat session for today.
Thank you all for logging in.
Till then its bye from us.