Online ULIPs

wealthymattersLife insurers like HDFC Life, Aviva India and Bajaj Allianz have started focussing heavily on the online platform for selling ULIPS (unit-linked insurance plan), promoting them as low-cost products, in the last few months.These policies are cheaper than their offline counterparts, as the savings made on agents’ commissions are passed on to policyholders in the form of lower premium allocation charges.

Insurers are launching these online Ulips to counter distributors’ reluctance to promote ULIPS . Over the last four years (post September 2010, when IRDA imposed a cap on ULIP charges), many agents and brokers have stopped selling ULIPS.

While the broad structure of a lowcost ULIP sold online is similar to a regular ULIP, slashing of premium allocation charges is the key differentiating feature. HDFC Life’s online ULIP has completely done away with allocation charges.It only charges fund management fee and a risk premium for mortality cover and on this aspect, directly competes with ELSS Mutual funds. The entire premium paid by the customer gets invested. Aviva’s product levies a premium allocation fee of 4-5%, compared to its offline counterpart that charges 8-9%. Bajaj Allianz’s online ULIP levies premium allocation charges ranging from 0-5.5% in the first five years, depending on the premium amount and year. Read more of this post

Health Insurance Policies For Students

wealthymattersUniversities abroad mostly make it mandatory for students to have medical coverage. Some universities insist on certain specific requirements such as a minimum medical sum insured, maternity expenses,coverage of mental and nervous disorders, drug and alcohol abuse and inter-collegiate sports injuries.Studying your course fee structure closely would be a good idea. It will help you ascertain whether the cost of health insurance is included in the fees. Next, you need to figure out whether your university allows you to replace this built-in cover with a health policy, that is, student cover from an Indian insurer of your choice.If the answer is yes,you’re in luck.

A student  can buy student health insurance cover in India with one-third  the premium he/she would have to pay for a similar cover in a foreign country. Additionally, Indian travel cover ensures that students are covered round-the-clock for all in-patient and outpatient treatments when they are abroad. This is unlike many universities who only cover students within the premises. The cover offered by some universities restricts students to a specific list of hospitals. Read more of this post

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