Link Aadhaar with your Insurance Policy, It’s Compulsory.

Link Aadhaar with your Insurance Policy, It’s Compulsory.

First of all, if you still don’t have an Aadhar card, get it as soon as possible. Aadhar is very important document and you will need it in every point of life. Govt. wants to curb on Money-laundering (Maintenance of Records) and have a clean economy. Hence all the financial services needs to be linked with PAN and Aadhar.

Insurance Regulatory and Development Authority of India (IRDAI) has made it compulsory to link the unique identity number Aadhaar with all insurance policies.

IRDA has issued a circular which is as mentioned below:

Central Government vide gazette notification dated 1st June 2017 notified the Prevention of Money-laundering (Maintenance of Records) Second Amendment Rules, 2017 making Aadhar and PAN/Form 60 mandatory for availing financial services including Insurance and also for linking the existing policies with the same.
The Authority clarifies that, linkage of Aadhaar number to Insurance Policies is mandatory under the Prevention of Money-laundering (Maintenance of Records) Second Amendment Rules, 2017.
These Rules have statutory force and, as such, Life and General Insurers (Including Standalone Health Insurers) have to implement them without awaiting further instructions.

link aadhaar with insurance

How to Link LIC policy with Aadhar?

Online:

  1. If you have your policy details handy, like Date of Birth, Policy Number and mobile number as mention on your policy then you can link it here: https://www.licindia.in/Customer-Services/Help-Us-To-Serve-You-Better
  2. If you have username and password for LIC customer portal, you can login to your account and update Aadhar and PAN card directly here: https://ebiz.licindia.in/D2CPM/#Login
  3. If you have a pension policy you can link it here: https://www.licindia.in/Bottom-Links/PensionPolicyLinking

Also Read: Check Your LIC Policy Status online

Offline:

Visit your servicing branch with your Aadhaar card, they will get your LIC policy linked. If your multiple policies issued in different branches, you will need to visit all the branches where your policy belongs to. Or better transfer all your policy in one branch, so it will become easier for you in future too.

Also Read: Check LIC Policy Status by SMS

Last Date:

Last date to Link your Aadhaar with your insurance policy is 31st December 2017.

What’s the Benefit?

Linking Aadhar card with your Insurance is beneficial for both. company will get less fraudulent claims and policyholders will see faster claim settlement.

What happens, if I do not link my Aadhar?

Your policy will continue provided you submit your KYC documents at the time of renewal. If you have health insurance policy then your claim might not be approved until your submit your KYC documents (Check with your health insurance company). So it’s better to link your Aadhaar with your policy as soon as possible.

What Kind of Insurance Policy needs to be linked?

All Insurance policies including Life Insurance, General Insurance, Health Insurance, Motor Insurance etc needs to linked with Aadhar.

Also Read: How To Link PAN card with Aadhar card

We have about 24 life insurance and 33 general insurance (including standalone health insurers) companies in India. Irrespective of company and type of policy, you will have to link your Aadhaar before 31st December 2017.

Life Insurance is Must

‘If I die someday suddenly, what would my family do? How would they earn money? I don’t have anything left to secure my family….!’ this is the condition of most of the people who are unaware about the various types of life insurance plans available which can secure your future. Many of us often don’t understand the importance of life when you no more have enough time left with you to secure your life.

When you start understanding these policies you would know their importance. It is an acknowledgement of your life that it is worth. You never go beyond lives, because usually no one thinks about there death. When you have a family that depends upon you, you will require life insurance to save their future. Life insurance policies are the one which show you your future and make you realize that you need to secure your family if at all you aren’t there. Once you know that you need a life insurance cover and are aware about the product to be chosen, then it isn’t difficult anymore.

Often there is a confusion doing rounds which policy to choose? How much to invest? This is because you don’t bother to invest your few minutes to know about the policy. The policy gives you excellent features with concessions as well as new festival plans every time. The best part is that life insurance is for everyone including couples who are nearing to retirement can go for the plan, or a person who has lost maximum amount of his income when he lost his spouse, or business people, employers. In fact every individual is subject to life insurance in some or the other way.

Life insurance policy plays a very important role in providing additional security of financial assets in your family. The myth that usually revolves around life insurance is only of one kind, but there are various forms of insurance plans available. There are other expenses that can be incurred from life insurance that include medical bills, gaining lost incomes, and many other expenses. But most of all you are been provided satisfaction that your family would be financially secure even if you aren’t there with them.

The worry most people have is stability which basically many of us lack. One purpose of buying life insurance product is to be relieved of your worries for your family. Be sure which product to be purchased. Life insurance is the best gift you can provide your family with. Why should your family suffer from hardships when you can secure them by just extracting a small amount of your income monthly or yearly basis? You can set an example by giving your loved ones a safe future.

There is no alternative to Life Insurance!

Mortgage Redemption Assurance

Mortgage Redemption Assurance

Mortgage Redemption Assurance policy (Table No. 52) (without profits) is designed to meet the requirements of the policy holding individual who want to ensure that all his outstanding loans and debts are automatically paid up in the event of his unfortunate death. If you have a home loan or any other loan or debt then this policy is for you.

Under the Mortgage Redemption Assurance policy (without profits), applicant will have to pay the medical examination fee.

LIC Mortgage Redemption policies are usually issued only to male lives aged 50 years or less. The policies are subject to a condition that the insurance cover would not extend beyond 65 years. All loans must be liquidated by the time the borrower attains the age of 65.

Mortgage Redemption Assurance policy

Eligibility Conditions and Restrictions for LIC Mortgage redemption

  • Minimum Entry age: 20
  • Maximum Entry age: 50
  • Minimum Sum assured (Rs.): 50000(except for single premium)
  • Maximum Sum assured (Rs.): 1000000
  • Maximum Maturity age: 65 years
  • Survival benefits: NA
  • Policy loan available: No
  • Mode of Payment: Yearly, Half-yearly,Quarterly, Monthly, Salary Saving Scheme

Death Benefit :
All outstanding loans declared at the beginning of the financial year would be payable as per the prepared schedule.

Today everyone has some kind of loan on them, who will pay your loan and liability? Once you have this plan, you don’t have to worry. All your dues and loans will be paid by this policy, so your loved one can breathe without worrying about the repayment of the loans. Isn’t it the good plan?

How to Apply for Mortgage Redemption plan?


Update: Mortgage Redemption Assurance policy Plan No. 52 Has Been Discontinued.


Note:
The above is the product summary giving the key features of the plan. This is for illustrative purpose only. This does not represent a contract and for details please refer to your policy document.

ULIP vs. Mutual fund

ULIPs and mutual fund are similar type of investment but not same. As we know mutual funds are more into investments; whereas ULIPs are into investments as well as insurance. When we look into the basic concept the difference between the two is very small, and mainly consists of product structure and risk coverage.

The basic difference evolves regarding its regulation. The ULIPs are regulated by the IRDA, whereas mutual funds are regulated by the SEBI. Then the other important aspect is when we look from an industrial point of view, the main focus of mutual funds is on low costs while the main focus for the ULIPs lies in the better performance and the distribution of its products. The other aspect includes flexibility, in this case a ULIP allows us to increase our life cover and at the same time are premiums rates remain the same. This is achieved by reducing our investments. On the other hand you don’t get any life cover in mutual funds. The only option we are left is purchasing a new insurance policy which would ultimately lead to additional cost.

The other important point to be focused involves that even if the costs of the investments in ULIPs is more compared to Mutual funds, the ULIPs offer better products which are suited for long term investments, whereas mutual fund products can only be used for sole purposes or short term returns. And one more point which acts as a beneficiary in terms of insurance is, that we do not receive any insurance cover in mutual funds whereas we receive insurance cover in ULIP plans.

Mutual Funds and ULIPs both are subject to market risks; if something unfortunate happen to investor, family or nominee will receive only fund value. On the other hand ULIPs will give your family guaranteed sum assured in case of death of the policy holder.

As these investments are the most preferred investment options to invest. even a small drawback somewhere makes a strong impression in our minds. So in the case of ULIPs vs Mutual funds if we notice, ULIPs are more preferable even if both stand at the same level. Somewhere when we equate both the investment options ULIPs are more beneficial as well as flexible as per our requirements.

Jeevan Saathi

Jeevan Saathi

Jeevan Saathi Summary:

LIC Jeevan Saathi (Table No.89) is specially designed for married couples. It is for husband and wife who wants single policy for joint life risk cover.

Key features:

  • Unique Joint Life Insurance Policy from India’s No.1 Insurance company
  • Tax benefit
  • You can pay monthly, quarterly, half yearly or yearly premiums.

LIC Jeevan Saathi (Table No.89)

 

Maturity Benefits:
Sum assured plus Bonus are given, if husband and wife are alive upto maturity period.

Death Benefits:
(a) Future premiums are waived and survivor gets Sum Assured immediately on the death of Husband/wife.
(b) He/She gets Sum Assured again with full bonus, if the survivor (husband/wife) survives till maturity.
(c) Sum Assured plus Bonus is paid till that time to the nominee, if the survivor also dies before maturity.

Jeevan Saathi Highlights:

(a) Housewives: Max. Sum Assured is 15 lakhs for graduates having driving license or passport or credit card or mediclaim insurance. You need to submit a Proof.

(b) Females can take this plan without any extra premium who has undergone sterilization lives with 2 cesarean operation.

(c) Females can take this plan without any extra premium, who attained menopause and hasn’t undergone sterilization and lives with 2 cesarean operation.

(d) Maximum SA of 50 lakhs for Female category II and Max. SA of Rs. 2 lakhs is allowed under the plan to self-employed female or housewives live in category III.

(e) Pregnant ladies are not allowed in this plan. Wife need not to be a earning person for SA 2 lakhs or less.

(f) Jeevan saathi is issued only to working couple or wife should be an income tax assesses.

(g) Female has to pay 3% extra premium if she is with 1/2 cesarean operation.

(h) For females lives with 3 or more cesarean operation, this plan is NOT allowed.

(i) To grant insurance cover on Husband’s life, wife’s income is also considered but subjected to certain restrictions. (1) Based on his own income, husband should have been insured fully. (2) Proposer should be the wife. (3) Wife should belongs to female category I/II.

LIC Jeevan Saathi Conditions and Requirement:

  • Min. age at entry:     20 yrs
  • Max. age at entry:     50 yrs
  • Max. Maturity age :   70 years
  • Min. Term  :   15 years
  • Max. Term  :   30 years
  • Accident benefits per 1000 SA     Rs. 2 extra
  • Min. S.A. :    Rs 50000
  • Max. S.A. :    No Limit
  • Modes allowed :    All
  • SA in multiples :    Rs 5000
  • Revival  :   Yes
  • Surrender of Policy:     Yes
  • Housing Loan :    Yes

Example:
Mr. Jeevan and Mrs Puja are husband and wife. They buy a Jeevan saathi joint life insurance policy for 20 years term for Rs. 1 Lakh sum assured.

Scenario 1: (a) Unfortunately, if one of the either Mr Jeevan or Mrs Puja expires after some time, the survivor will get  Rs. 1lakh (without bonus) immediately and there will be no need for the survivor to pay future premiums. Again. if he or she survives till the maturity period then He/She will get Rs 1,88,000/- as maturity maturity amount (Rs 1 lakh sum assured + Rs 88,000/- being estimated bonus for full term. (b) In case if both died due to same accident and, if they die within 180 days from the date of accident of the first person then the nominee will get 4 times SA plus bonus accrued till the death. (c) If the survivor dies before the maturity term, then nominee will receive the SA + bonus till that period.

Scenario 2: If Mr.Jeevan and Mrs Puja survive till maturity then they together will get the maturity benefits of Rs 1,88,000 (Rs 1 lakh SA + Rs.88,000/- bonus at an estimated Rs 44 per 1000 per annum.

How to Apply for LIC Jeevan Saathi Policy?


Update: LIC Jeevan Saathi Plan No.89 Has Been Discontinued.


Note:
The above is the product summary giving the key features of the plan. This is for illustrative purpose only. This does not represent a contract and for details please refer to your policy document.