Several situations can result in later payment of a claim. If the insured died within the first one to two years after the policy was issued, beneficiaries could face delays of six to 12 months. The reason: the one- to two-year contest ability clause, says Huntley. “Most policies contain this clause, which allows the carrier to investigate the original application to ensure fraud was not committed. As long as the insurance company cannot prove the insured lied on the application, the benefit will normally be paid,” says Huntley. Most policies also contain a suicide clause that allows the company to deny benefits if the insured commits suicide during the first two years of the policy. Another scenario that could delay payment, not surprisingly, is when “homicide” is listed as the cause of death on the death certificate. In this case, a claims representative may communicate with the detective assigned to the case to rule out the beneficiary as a suspect. “If the beneficiary is a suspect, the benefit will be held until charges are dropped or he/she is acquitted of the crime,” says Huntley. New Choices in Payout Options Since the inception of the industry more than 200 years ago, the payout to the beneficiary was always a lump-sum payment of the proceeds. The default payout option of most policies remains a lump sum, says Richard Reich, President, Intramark Insurance Services, Inc. Installments and Annuities Modern life insurance policies have seen a monumental improvement in how payouts can be delivered to the policy’s beneficiaries, says Bernstein. These included an installment-payout option, or an annuity option, in which the proceeds and accumulated interest are paid out regularly over the life of the beneficiary. These choices give the policy owner the opportunity to select a pre-determined, guaranteed income stream of between 5 and 40 years. “For income-protection life insurance, most life insurance buyers prefer the installment option to guarantee the proceeds will last for the necessary number of years,” says Bernstein. Founding organisations The Oriental Life Insurance Company, the first company in India offering life insurance coverage, was established in Kolkata in 1818. Its primary target market was the Europeans based in India, and it charged Indians heftier premiums.[6] Surendranath Tagore had founded Hindusthan Insurance Society, which later became Life Insurance Corporation.[7] The Bombay Mutual Life Assurance Society, formed in 1870, was the first native insurance provider. Other insurance companies established in the pre-independence era included
The first 150 years were marked mostly by turbulent economic conditions. It witnessed India's First War of Independence, adverse effects of the World War I and World War II on the economy of India, and in between them the period of worldwide economic crises triggered by the Great depression. The first half of the 20th century saw a heightened struggle for India's independence. The aggregate effect of these events led to a high rate of and liquidation of life insurance companies in India. This had adversely affected the faith of the general in the utility of obtaining life cover. Nationalisation in 1956 LIC Zonal Office, at Connaught Place, New Delhi, designed by Charles Correa, 1991. LIC Building at Chennai, was the tallest building in India when it was inaugurated in 1959 In 1955, parliamentarian Feroze Gandhi raised the matter of insurance fraud by owners of private insurance agencies. In the ensuing investigations, one of India's wealthiest businessmen, Ramkrishna Dalmia, owner of the Times of India newspaper, was sent to prison for two years. The Parliament of India passed the Life Insurance of India Act on 19 June 1956 creating the Life Insurance Corporation of India, which started operating in September of that year. It consolidated the business of 245 private life insurers and other entities offering life insurance services; this consisted of 154 life insurance companies, 16 foreign companies and 75 provident companies. The nationalization of the life insurance business in India was a result of the Industrial Policy Resolution of 1956, which had created a policy framework for extending state control over at least 17 sectors of the economy, including life insurance. Whole Life Insurance BenefitsIf you've been considering a whole life (permanent/cash value) insurance policy, you understand that unlike term life insurance (which provides coverage for a specific time period), a whole life policy is permanent*, and designed to provide coverage for your entire lifetime. However, what you may not know is that there are many financial benefits contained in a well-designed whole life insurance policy that stretch beyond the death benefit protection it provides.
When selecting life insurance, you should consider all your available options. To be helpful, we've put together a short list highlighting just a few of the financial features associated with a quality whole life policy.** 1. Whole life insurance protection. The cash value that your whole life policy accumulates isn't subject to stock market volatility. 2. Cash Value growth. Regardless of how stock markets perform, your cash value grows at a fixed rate. Over time, your policy builds cash value that is not subject to stock market declines. 3. Additional income. Under IRC Section 1035, a whole life policy can be exchanged without tax penalties for an annuity, which can provide you with additional income for life. Be sure to consult a qualified financial adviser or tax professional to assess your specific scenario.
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