Life Insurance Settlement Demystified

Why Buy Life Insurance? Life insurance is generally offered as part of a benefits package with employment. For the most part, however, these policies are rather small, usually in the one lakh rupees range. People buy life insurance policies so that their families will not have to bear financial burden when a loved one passes on.

There is another reason to buy life insurance, however, and it is the life insurance settlement. Your life insurance policy can be settled for a large sum before the end of your lifetime, though many people are not aware of this. Others buy life insurance specifically with this reasoning in mind.

Purchasing a Life Insurance Policy, though it may sound strange, it’s actually a good idea to buy life insurance while the policyholder is still in good health. Rates are usually cheaper when this is the case, which makes buying a life insurance policy a whole lot easier. Also, rates are less expensive if you buy life insurance while still young. If you’re young and in good health, it’s actually the best time of your life to purchase a life insurance policy – as strange as that may sound.

Don’t be afraid to do your own shopping around to find the best rates, and the best life insurance settlement. Comparison shopping is the way to make sure you get the best life insurance policy, and settlement, possible. Don’t rely on your employer to give you all the life insurance coverage you need. Generally, life insurance policies and settlements offered as part of a benefits package will not have good payoffs.

The Life Insurance Settlement.

There are many reasons that you may want to settle your life insurance policy. Sometimes, a settlement is the best thing you can do for your family. For instance, when the policyholder has reached the age of seventy and there is a need for a new life insurance policy or long-term care, your best option may be a life insurance settlement. A change in health status, tax charge, or when the policy has outlived the beneficiaries may all be reasons to consider a life insurance settlement, as well.

A large factor in the life insurance settlement is the need for liquidation of assets. This may be due to bankruptcy or other financial reasons, or simply that the policy holder would like to acquire the settlement early. Your reasons for settling your policy are your own, and if you feel the need for a settlement then you should pursue one.

Be sure to discuss your settlement options with your insurance company. If needed, have a new policy in place before going forward with your settlement. There is no reason you cannot have two or more life insurance policies at the same time.

A life insurance settlement can allows you to enjoy some of the benefits of your policy, and be a good source of income when long-term care or extra income is needed. Be sure to discuss the exact amount that you will receive from your settlement with your insurance company, and find out the payment scale and time frame for receiving your settlement. When you agree on a settlement, the paperwork that you sign should include all of this information. Be sure to look over any paperwork very carefully before signing, because you can never be too careful with insurance companies.

Let the child play, Assure Career Builder will worry about the career

Hi friends,

Let's talk about the policy which takes care of your children's career requirements.

Tata AIG Life's Assure Career Builder is a juvenile insurance product designed to provide your children with the financial support they’ll need at important junctures in their life.

Key features include:

• Lump sum payments at various stages of your child’s life: 20% of sum assured on your child’s 18th birthday, 20% on his/her 21st birthday, 20% on his/her 24th birthday and the remaining 40% when the policy matures on your child’s 27th birthday.
• Lump sum payments at various stages of your child’s life: 20% of sum assured on your child’s 18th birthday, 20% on his/her 21st birthday, 20% on his/her 24th birthday and the remaining 40% when the policy matures on your child’s 27th birthday.
• Periodic payments against the policy do not affect the full payment of the sum assured in case of the insured’s death.
• A guaranteed addition of 10% of the sum assured to be paid at the time of maturity or death (policy must be in force for a minimum 10 years).
• A compound reversionary bonus, as declared by the Company, is credited to the policy on the policy anniversary.
• A terminal bonus payable on death or maturity (policy must be in force for a minimum 10 years).

Tax Benefits, Riders and Age Eligibility

• Compound reversionary bonus and terminal bonus are non-guaranteed and depend on the performance of the Company.
• Assure Career Builder is supported by a money-back guarantee. If you change your mind, simply return the policy document within 15 days of receipt and your premiums will be refunded (minus a nominal deduction to cover administrative charges).
• Premiums paid under this plan are eligible for tax benefits under Section 80C of the Income Tax Act, 1961. Any sum received under this plan is exempt from tax under section 10(10D) of the Income Tax Act, 1961.
• You can attach the Payor Benefit Rider at a nominal extra cost, which waives all future payments for this policy in the event of your unfortunate death or disability.
• Minimum entry age is 0 years, with a maximum of 15 years. The policy matures at age 27.

Please have a look at Sample Benefit Illustration below:

Illustration for Assure Career Builder
Sum Assured Rs. 2,00,000
Age	Annual Premium	Guaranteed Benefits			Non Guaranteed Benefits		Total Benefits at Maturity
		Sum Assured	Guaranteed Additions	Accumulated Coupons	Higher Rate	Lower Rate	Higher Rate	Lower Rate
0	9,638	200,000	20,000	200,000	683,364	270,055	903,364	490,055
5	13,380	200,000	20,000	200,000	481,315	204,089	701,315	424,089
10	19,466	200,000	20,000	200,000	323,005	146,489	543,005	366,489

Basic Premium Information

Issue Age	Premium rate per Rs.1,000 Sum Assured
0	52.19
1	55.61
2	59.19
3	63
4	66.95
5	70.9
6	75.62
7	81.21
8	87.39
9	94.22
10	101.33
11	109.84
12	118.89
13	129.96
14	142.99
15	158.15

Large Size Discount

Face Amount	Deduction in Gross premium rates per Rs.1000 Sum Assured
25,000 to 99,999	0
100,000 to 149,999	1.5
150,000 to 199,999	3
200,000 & above	4

You can download the product brochure by clicking here.

So, now onwards, when your children(s) is/are playing, let them play. And ask yourself to assure their career with Assure Career Builder.