Life Insurance

Introduction: -
The Indian Insurance Regulatory and Development Authority (IRDA) is going to make this provision in which, at the time of trouble, life insurance will be able to withdraw up to 85% without terminating the consumer policy and insurance companies will not be able to make any deduction. This provision of IRDA is to bring relief to the common life insurance consumer. But, the doubt is that somewhere, do insurers find no other way to cut the amount on consumers? Will there be income tax on this amount drawn earlier? Who can benefit and benefit from this new provision? It is very necessary for us to think so.

Advantage: -
The scheme announced by IRDA, once seen, provides relief to insurers once. But it is not possible to say anything until the full terms of insurance are revealed. After giving the facility of withdrawing 85% of the sum assured, the biggest question arises as to how it will be possible for both insurers and consumers? Insurance companies invest in the market through various means of their sum insured from the insurance product. It is in stock market and government funds. Based on the returns of the same investment, they pay the sum assured to the insured upon completion of the policy. This includes deposited interest, bonus and other benefits. This will insulate the investment plans of the insurers and therefore compensate them for the loss they themselves will make to the insured person. It may be that insurance companies reduce the targets of their bonuses if they apply to this provision. Therefore it is necessary to first come forward to implement the plan for which it has been proposed to implement this scheme. Because the big question is that if the 85% withdrawal is withdrawn, why would the insurance companies cover 100% risk for the remaining period? It seems that in the round of gains to benefit, the policy holder will not be hurt only. Insurance companies hold their investment manager here. On the advice of these managers, these companies have been investing the money received as a sum insured in a lump sum elsewhere. This amount is not in the hands of a consumer but in crores. Insurance companies already have surrender plans for the withdrawal of sum assured in the middle. Whereby they deduct a certain sum and return the insured person. The entire amount is still not able to get any back. In a way, insurance companies will have to reinforce the already existing scheme. Therefore, it is good that the consumer is exempt from removing hundred percent of the sum insured and there is no deduction in lieu of this. If it does not happen, the cover of the jackpot cover will remain in the air. Ankush: - Those who insure will be really relieved if the arbitrary condition of companies is curbed. These conditions are twenty-two pages in fine letters and do not understand them even after reading and writing. These companies raise the advantage of this. Therefore, only eight to ten major things should be mentioned in the terms of the plan. There is one thing more. Along with increasing awareness, the number of complaints related to insurance reaches into thousands of consumer courts. But they have not been able to settle for years. This facility will not be provided in the market based scheme. This option will be given by the insurance companies to the customer only when selling the policy. If you do not take that option, then companies will be free to cut the money suddenly.

Relief: -
The insurer had urged the companies to get rid of the effect of huge deductions on deposits after breaking the policy from IRDA. Therefore, the authority is going to make changes in the rules related to it. This will bring relief to the customers. At the present time, in the event of an emergency, the insured person can withdraw his / her policy and withdraw the money in the insurance. Insurance companies complete the payment only after completion of the period by adding other benefits to the amount of insurance. Before this, if anybody wants to remove a deposit, then as a penalty, companies cut 20 to 35 percent and even more. Exemption: - The policy will continue even after the withdrawal of money before maturity under the new rule. Irda, customers will have ten to fifteen percent of the money left in the policy and the remaining money will be taken to the option of not being deducted if required. In this way, the policy will also continue and there will be no deduction for the withdrawal of deposits during the Emergency. Rule: - Regarding life insurance, the rule is that income tax has not to be paid on the amount received on maturity from insurance companies. Most insurance companies sell insurance policies on the basis of this information. But, unfortunately, reality is not the only one. According to the rules, if 10 percent of the total premium has been deposited in any year and in such a situation, the amount is withdrawn if required. Since usually insurers are not aware of the rules in this manner, the amount deducted from the insurance company proves to be a huge setback. But Irda has given a great thought in this matter and due to this good thinking, such a rule is coming. Those who buy the policy usually do not know that if they have deposited more than 10 percent of the premium, then they have to pay income tax on removing the money before maturity. Many times, after earning money, the income tax returns do not show the money received from the insurance company, in such a way the income tax department has put the responsibility on the insurance company to determine whether it is time to deduct and deduct money from the insurance company. In the name of the deduction of this amount, the insurers have been raising money from the policy holder. After the introduction of the new rules of IRDA, the policyholder will not be able to pay income tax for withdrawing the amount up to 85 percent. It is true that insurance companies have to suffer some losses, but the bright side is that many such people will get their sum in the middle and the amount of penalty of 20 to 35 percent is going to be in the market and ultimately The benefit of this amount is to get the economy of the country. This step of Irda should be welcomed and should provide relief to the common policyholder by implementing this rule as soon as possible.

Agreement: -
Currently the insurance policy is compromised for the entire period. This means that the policy holder deposits the premium during the prescribed period according to the agreement and the insurance is insured against the risk during this period. The insured person is given the amount with bonus declared from time to time on expiry of the policy term. During this agreement, the policyholder can not withdraw the money deposited as a premium. There are two ways to withdraw money - one, the policy holder will take the loan and pay the fixed interest. During this time insurance for his risk remains. In the second case, he withdraws the money, then he breaks the agreement for it.

Purpose: -
When the insured person withdraws money before maturity, he has to break the agreement made by the insurance company. In such a situation, he has to pay a heavy fine to the insurance company. If it is necessary to treat the disease then it seems that the purpose of insurance has failed. Penalties - In such cases, the insurance companies return the money to the policyholder by imposing a penalty on the condition of breaking the agreement. Many times this money is so high that the purpose of insurance itself stops. For the status of insurance risk i.e. in the event of an accident, the insured person is required to compensate for the fixed economic loss. But, when the person has to withdraw money in the middle, then with the breaking of the agreement, the insurance is a tragic situation that the person wants the amount of life insurance for the treatment of a disease and for this he breaks the insurance contract in the middle. is. In such a situation, he could not get the full amount of money if he broke the agreement. If he chooses the loan option, then it does not matter if he can pay the interest and the prescribed premium. In spite of being insured, the person still struggles in financial problems. In view of all this problem, the option of extracting about 85 per cent of the amount of irda's trouble is going to prove to be very beneficial for a common policy buyer. After the implementation of this provision, the insurers will be able to continue insurance with the release of huge penalties. Disadvantages: - There is no doubt that if the new rule applies, insurance companies will have to suffer a lot. On the breakdown of the agreement for insurance, they have been charging only for compensating the loss. But, IRDA will have to accept the rules made in the form of an insurance regulatory body. It can be certain that some insurance companies also challenge this rule in the court. Epilogue: - The Indian Insurance Regulatory and Development Authority (IRDA) is going to make such a rule. In which insurance companies will not be able to make any deductions on removing the amount deposited by insurance in times of trouble. It will be very relief to the insured but, on the other hand, the insured should insure insurance carefully and fully understand their conditions, from which there is no harm to the insured further.