Cash Value within Universal Life

Although whole life insurance and universal life insurance both fall into the category of permanent coverage, the differences between the two lie in how the cash value accumulates. Under a universal life insurance policy, the insurance company issuing the policy establishes an interest rate minimum, stated within each individual contract. Should the insurance company's portfolio outperform the minimum interest rate, excess earnings may be applied to the cash value of a policy. The potential to earn more than the minimum crediting interest rate differentiates universal life insurance from whole life.

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What is auto insurance?

Auto insurance protects you against financial loss if you have an accident. It is a contract between you and the insurance company. You agree to pay the premium and the insurance company agrees to pay your losses as defined in your policy. Auto insurance provides property, liability and medical coverage:

• Property coverage pays for damage to or theft of your car.
• Liability coverage pays for your legal responsibility to others for bodily injury or property damage.
• Medical coverage pays for the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses.

An auto insurance policy is comprised of six different kinds of coverage. Most states require you to buy some, but not all, of these coverages. If you're financing a car, your lender may also have requirements. Most auto policies are for six months to a year. Your insurance company should notify you by mail when it’s time to renew the policy and to pay your premium.

Online Insurance Purchase Gets a Boost with Digital Sops

The online insurance market does not even account for 1% of the gross premium amount of Rs.4.63 lakh accumulated by the insurance industry in the Financial Year 2016. But the government’s decision to incentivise online policy purchase from the public sector companies comes as a major boost for the future of this sector.
This decision comes amid a plethora of other announcements made by the Central government to push the country towards a cashless economy. The government-owned insurance companies would now offer a discount or credit of up to 10% of the premium amount in case of general insurance and 8% in case of new life insurance policies sold through customer portals, if the premium is paid via digital means.
According to IRDAI, purchase of online health insurance contributed to 2% of the total premium collected in health insurance sector in the Financial Year 2016. In the life insurance sector, online sales provided 0.52% of all the new premium collected.
Although government sector insurers like LIC lead the insurance sector, they lag behind their private peers when it comes to online sales. According to Alok Bhatnagar, the co-founder of EasyPolicy, currently the market share of public-sector firms for purely online purchase of policies is not more than 15%.

3rd January 2017