| Transcript of Chat with Mr.Andrew Cartwright.Chief Actuary, OM Kotak Mahindra Life Insurance Company Ltd. - 4th September 2002 |
[02:26:18 PM] => Myiris : We apologize for the delay
[02:26:41 PM] => Myiris: Welcome to the live chat session.
[02:26:56 PM] => Myiris : Our guest today is Mr.Andrew Cartwright, Chief Actuary, OM Kotak Mahindra Life Insurance Company Ltd.
[02:27:39 PM] => Mr.Andrew Cartwright is the Chief Actuary, OM Kotak Mahindra Life Insurance Company. At the time of this conversation/chat, Mr. Cartwright may or may not have positions in the stocks mentioned below, although holdings may change at any time. The views expressed by Mr. Cartwright is based upon information that he considers reliable, but does not represent that it is accurate or complete, and it should not be relied upon as such. Mr. Cartwright, his company and its affiliates, officers, directors, partners, and employees may, from time to time, have long or short positions in, buy or sell and deal as principal in the securities, or derivatives thereof, of companies mentioned herein and may take positions inconsistent with the views expressed.
[02:27:57 PM] => None of the information contained herein constitutes, or is intended to constitute a recommendation of any particular security or trading strategy or a determination that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person. You should consult with and rely upon your own advisors whether and how to use such information in making any investment decision.
[02:28:07 PM] => Lastly the views expressed by Mr. Cartwright have no bearing whatsoever with that of IRIS Ltd. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website www.myiris.com.
[02:28:21 PM] => Myiris: Welcome to the chat session, Mr. Cartwright.
[02:34:10 PM] => kapil1961: i am 41. what is term plan premium for 25 years for Rs. 10 lakhs insurance ?
[02:38:28 PM] => AC : Currently the best rates in the market are Rs 3500 per annum
[02:39:45 PM] => Lalkrishnapp: krishna Subject:insurance Your question:how much i have invest to have comfortable life. Now i am 40, i would like to retire at 50
[02:40:05 PM] => AC : You�ll need about 10 times annual income at that stage to enjoy a comfortable retirement.
[02:40:24 PM] => rajendraarora1234 : Will you advise to sell ULIP ?
[02:40:48 PM] => AC : Not unless ur really in need of money.
[02:42:12 PM] => blanche : Dear Sir Can you tell me more about ure 8.05%assured return Life Bond. Can u really assure me such a return given the falling interest rate scenario. I hope what I have said is true sinceI saw this advt. on this portal itself
[02:42:30 PM] => Ac : The rates offred are guaranteed. We�ll be withdrawing them soon due to falling rates, however existing clients are safe.
[02:46:45 PM] => nipaparikh : I have heard that if the amount of insurance premium i pay is one sixth of my income then i have adequate insurance cover. Is this the right way of ascertaining the amount of insurance policy i should buy or should the total sum insured be as a percentage of my total income?
[02:47:06 PM] => AC : It is best to look at ur needs not just at ur premiums. Ur insurance includes the need for protection in case of death or disability, as well as the need for retirement savings. A multiple of total income is a good approach in the absence of a full needs analysis.
[02:50:26 PM] => Sailk : Almost all the players in the Indian insurance market have similar policies to offer n similar proccesses, wat do u think differentiates OM Kotak Mahindra Life Insurance?
[02:50:52 PM] => AC : The structure of our product is more modern, relying on a bank account concept, the accumulation account. We also have other features like automatic cover maintanance. We believe our service will be better than policy holders are used to.
[02:53:12 PM] => dpunamia : I am 35 years old and have taken insurance worth Rs.30,00,000 on my life. I am the only earning member in the family so till date all the insurance was for my life. I want to invest some more amount in insurance, should I continue to insure my life or should i insure my wife n children now?
[02:53:27 PM] => AC : If you re looking at investment, it doesn�t matter whose life u cover, but if ur need is for more cover then it shud be on ur life. Children�s plans make more sense if you want to save for their education.
[02:56:43 PM] => mahendra-singh.khalsa : Dear Sir, I am a 28 yr old engineering professional earning approximately Rs, 30,000 a month.I have a one year old baby. I have thought of buying an insurance policy for her to meet her future education and marraige costs. Please tell me which are the good policies and how much would be the premium for it? I can afford upto Rs. 24000 pa.
[02:56:54 PM] => AC : There are many good policies in the market. But the Kotak Child Advantage Plan is designed for children�s education. The size of the policy u need wil depend on the kind of education that u want to provide to ur daughter.
[03:00:12 PM] => fallguyjunior Sir, I am 26 ,single and have a saving worth 100,000 I earn about 20,000 per month .I want to insure myself against any eventuality that might arise and want to nominate my Mom as the beneficiary. Please guide me on whether Term policy ,money policy or whole life policy will be suitable for me.
[03:00:24 PM] => AC : If u want to get maximum protection then term insurance is best. (It�ll be a good protection when u have ur own family). If ur need is fir savings, then money bank or endowment make sense. If u want some savings and extra life cover consider endowment with term rider on it.
[03:16:33 PM] => Ketan1957 : I am a 45 yr old professional with mo life insurance. Which scheme is best for me?
[03:19:52 PM] => AC : A lot depends on what ur needs are? Have u got dependence? If so how much ur family need in the event of ur death or disability? If cover is ur main need, then term insurance is a effective solution. If ur more interested in saving for retirement then pension plan (upto Rs 10,000 premium per annum) or endowment plan are a better deal, ur best advice is to consult an insurance advisor and ask him to help u analyse ur needs.
[03:25:32 PM] => Balaji : I am 25 year old and have dependant parents. I have just started working and my company provides group life insurance. A sum of Rs.500 is deducted from my salary every month for this. Will my parents benefit from this or should i insure my life further to protect their interest in future?
[03:25:39 PM] => AC : How much cover have u been provided by the company? If this is sufficient, you can make your parents the beneficiaries of the group cover.
[03:28:32 PM] => Vivek : Please forgive the lack of my knowledge Mr.Cartwright but what is the function of an Actuary in a insurance company.
[03:28:41 PM] => AC : The Actuary�s function is to look after the financial soundness of the insurance company.
[03:28:58 PM] => Anant : Among all the insurance cos & policies available in the market today, what is the best way to evaluate the various policies?
[03:29:06 PM] => AC : It depends on the type of product; for term-insurance, price is everything. For endowment, expected bonuses need to be taken into account. U can also compare other features of the products.
[03:37:49 PM] => rhea : i have an LIC policy right now, but i am not aware of the details. What are the individual insurance policies offered by pvt players that would be useful to a person like me. I am 25, employed.
[03:38:03 PM] => AC : It depends on your needs. If you need to protect dependents, then term cover makes most sense, but if you have no dependents, an endowment or unit-linked endowment would make sense.
[03:38:21 PM] => Balu : Do you set any internal investment return benchmark , such as, so many basis points above a long dated govt paper?
[03:38:28 PM] => AC : Our investment targets are not purely related to GOI returns. We look to provide inflation beating returns over the longer term, for with profits policy holders. For non-profit plans, we need to match guarantees.
[03:38:50 PM] => Santosh shukla : Can an agent sell insurance products from multiple insurance cos ?
[03:38:59 PM] => AC : Not at present. A broker can do so, but none have been registered as yet.
[03:39:29 PM] => drkashyap : I have a child who is not even a year old when should i start thinking of a child plan , what is the right age?
[03:39:37 PM] => AC : As soon as possible, provided you can afford to pay premiums.
[03:44:12 PM] => Tushar Patil : What is a one time premium policy and how does it differ from a otherpolicies?
[03:44:23 PM] => AC : A one time premium policy ( single premium policy) is ideal if you have a lot of money available at one time,
[03:44:41 PM] => kpn : What if i default on my premium? do my early premiums go down the drain? Can i revive the policy later?
[03:44:50 PM] => AC : If you default, in the first couple of years, your premiums are lost, but you can normally revive ur policy, within a reasonable time frame.
[03:45:07 PM] => sshenai : Should one look at pension products for savings, or life products? Please comment
[03:45:15 PM] => AC : Pension products are only really tax-efficient if you are paying tax and your contribution is less than or equal to Rs 10,000. Above that level, a life product is more tax-efficient.
[03:45:29 PM] => renin : I am 24 years old and have just started working i am looking out forinsuring myself.what should i look for - tax or risk or savings?
[03:45:46 PM] => AC : If you have dependents, then you look at risk-cover. If you need to save, look at an endowment.
[03:46:05 PM] => Ashman : What is the ideal sum that one should insure himself for and how does one determine the same?
[03:46:15 PM] => AC : As mentioned previously, it depends on the number of dependents and their ages, as well as your income. The bigger your income, more cover you�ll need.
[03:47:38 PM] => Guest : Can an agent use the internet to sell policies ? Rules, Regulations if any pls ?
[03:47:49 PM] => AC : An agent cannot complete a sale over the internet. I cannot help you with the regulations.
[03:50:58 PM] => shridgram65 : Dear Sir, for the first time around i am seeing insurance being sold as a risk product and not an investment product however i was disappointed that some of ur agents are selling the 8.05% insurance bond as an investment product rather
[03:51:06 PM] => AC : The insurance bond is really an investment product, with a small amount of cover. Not all insurance products have an emphasis on risk cover.
[03:58:09 PM] => shridgram6 : Dear Sir, for the first time around i am seeing insurance being sold as a risk product and not an investment product however i was disappointed that some of ur agents are selling the 8.05% insurance bond as an investment product rather
[03:58:16 PM] => AC : The insurance bond is really an investment product, with a small amount of cover. Not all insurance products have an emphasis on risk cover.
[03:58:24 PM] => gaurav67 : hi Mr. Andrew can u tell me why for the same / similar policies are premiums different. for example Endowment Policies by various players in the market have different pricing albeit similar riders
[03:58:32 PM] => AC : using your example of the endowment, the premium is not the only issue. Most people would be happy to pay a higher premium if the maturity benefits ( including bonuses) were to be higher. Premium is only really a good comparison for term-insurance.
[03:58:40 PM] => msurekha : Dear Sir i have a similar q's to that of Mr. Mahendra i Have a two year old son who shall probably go on to do his MBA in the States . Assuming that i need over Rs. 15 lakhs in the next 15 years how and what policy do u suggest me and what would be my average premium per annum. Does it cover my child's education incase of my death
[03:58:48 PM] => AC : A children�s plan ( like Kotak Child Advantage plan) can be used to meet ur needs. For a maturity benefit of Rs 15 lakhs in 15 year�s time, you�ll need to pay premiums of around Rs 80,000 per annum. You can add a waiver benefit, which will meet premium payments in case of your death.
[04:02:40 PM] => Kamakshya : Any policy which assures a good return and money back at greater frequency would do well for young people for whom return is more important then the security, is n't it? Besides why to block money for 20-25 years is yet another question. At least with ELSS you have a tax saving angle and a shorter lock in period Don't you think that the players like kotak who have mutual funds and Insurance to their credit offering both ELSS and tax saving insurance bonds are canibalizing their own products and confusing the already confused customers?
[04:02:47 PM] => AC : Fundamentally insurance is a longer-term product. It is pointless taking money out of the policy as fast as it comes in. Even at 5-year intervals the money back cannot deliver the same yields as an endowment. Life advisors are there to prevent the customers from getting confused.
[04:03:48 PM] => Kapil Dixit : Sir, why the money back policies are generally expensive as compared to other policies?
[04:03:55 PM] => AC : See the answer to the previous question.
[04:06:13 PM] => Myiris : That�s the end of the chat session with Mr. Andrew Cartwright.
[04:06:19 PM] => Myiris : Thank you for being with us
[04:06:24 PM] => Myiris : We thank Mr. Andrew Cartwright for his time and valuable inputs.
[04:06:30 PM] => Myiris : We�ll be back with more at chatmasala.
[04:06:36 PM] => Myiris : Till then its bye from us
|
|
