The charges associated with a Unit linked Insurance Plan (ULIP) can significantly impact the returns from the policy. A two-part discussion on ULIPS: first how charges reduce returns and then a category-wise study of ULIP returns and how to compare them with mutual funds.

This post is entirely due to an interesting thread started by Guru Rudagi at Facebook group Asan Ideas for Wealth with key comments from Ramesh Mangal (one of my personal finance influencers) and Butan Mohapatra who took the trouble of sending me his ULIP statement with a detailed explanation.

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Here are some must-know facts about accident insurance policies in India that a buyer should be aware of. An accident insurance policy is one that provides

  • 100% of sum insured in case of accidental death,
  • 100% -50% of sum insured in case of permanent total disablement (eg. loss of both limbs, both eyes, both feet)*
  • Anywhere between 70% to 5% of sum insured in case of permanent partial disablement (loss of one limb, one eye …)*
  • About 1% of the sum insured for about 100 weeks (or so*) in case of temporary but TOTAL disablement.

(*) These features change from insurer to insurer.

Although inexpensive, accident insurance policies are not “simple” products. Here are some must-know facts about accident insurance policies in India.

Definition of an accident

An accident is a sudden, unforeseen and involuntary event caused by external and visible and violent means.  – Individual Personal Accident Policy Prospectus United India Insurance.

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Claim settlement ratio does not matter anymore from 2015 if your life insurance policy is at least 3-years old because IRDA has amended the section 45 of insurance act  such that any life insurance policy which is at least 3-years old cannot be denied claim  “on the ground of misrepresentation or suppression of a material fact not amounting to fraud“. Source: Applicability of provisions of Sec 45 of Insurance Act 1938 in various scenarios (thanks to Ramesh Mangal for the link).

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Here is how one can choose a term life insurance provider in 30 minutes. Each passing day, more and more individuals are realizing the need for buying a term life insurance plan. However, too much time elapses between when they decide to buy and actually buy.

Many cannot choose. They require some kind of ratification from just about anyone that XYZ is a ‘good’ company to buy from.  Does not matter how ‘good’ is judged. Does not matter that unlike mutual fund or a stock, insurance is an individualistic solution.

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While trying to buy a term life insurance plan, it is natural to want a listing of premiums offered by all insurers. So we type, "compare term insurance plans" in Google and click on one of the first few links, without scrolling down the page.

The trouble is, most (if not all) of the 'popular' insurance comparison portals require activation via mobile. They get your email, mobile no, provide you access only if the mobile number is yours (you need a code sent via sms to get in!).

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