Life Insurance as you all may know is insuring the life against unforeseen events happening in your life. Today the life has become so stressful that you need to get yourself protected at every point of time. Your loved ones who are dependent upon you for all your financial needs in life will become helpless if they are to face with any kind of situation like this. Life insurance provides the cash to lighten the financial burden imposed on you or your family by a serious event such as your death, prolonged illness or disablement.

Calculating the life insurance premium is about calculating the chance of having to pay out. For non-life insurance this can be simplified to calculating the chance, multiplied by the costs. For life insurance the premium depends on three factors: costs, interest and mortality.

1. Costs

The insurer’s expenses make up the costs. Think of salaries, computers, and maintenance of buildings. It also includes the commissions to be paid to the agents. It is advisable to base the premium calculation needed for the risk on a fixed percentage of costs in the premium

2. Interest

Especially with regard to life insurance we have to consider interest. When the policy provides for a pay-out for when the insured person dies, then the insurer knows that he will have to pay out at some time. He only does not know when. In the course of the years he will receive insurance premiums that he has to reserve for the pay-out that will happen one day. Suppose that 32 years have lapsed between taking out an insurance policy and the moment of dying, then the insurer will have received interest over 32 years on the first premium payment, over 31 years on the second payment, etc.

If we assume a premium of Rs 100 and a rate of interest of 5% per year, the insurer will receive in premiums and interest: [100*1.0532] + [100*1.0531] + [100*1.0530] + etc. This is 476+454+432+ etc. = 7,906. Especially when it involves a longer period the effects on interest income are huge. In 30 years a 5% rate of interest has more than quadrupled the amount.

The Mortality factor deals with an estimate that the insurer has in mind when he will calculate the Life insurance premium for the policy and accordingly he will place in front of you the life insurance policies which is more suitable to your life.

For all kind of Life Insurance policy needs visit www.bharti-axalife.com

Life Insurance, Life Insurance Companies, life insurance company, Life Insurance India, life insurance plans, Life Insurance Premium

Who is allowed to take out a life insurance policy on my life?
The only individual who can buy a life insurance policy on your life is someone who has an actual “insurable interest” on your life. A stranger is not allowed to purchase a life insurance policy on your life.
Individuals who typically have an insurable interest on someone else’s life are family members (immediate family), employers, business partners, or major creditors.
Do my beneficiaries have an insurable interest on my life?
If you purchase a life insurance policy on your own life, then you are the owner of that particular policy. You have the right to name anyone you like as your beneficiary.
How do I begin the process of applying for life insurance?
Generally, you fill out an application regarding your personal health history, age, and other information. Depending on your answers on the application, the life insurance company will determine if it wants to insure you or not.
Once the application is completed, you should make sure to review it to catch any mistakes, blank areas, or any other additional information you forgot to include. This application will become part of your policy contract down the line, and any blank spaces left on the application could run the risk of being filled in by another party.
It is always essential to be as honest as possible when filling out the application. Any factual omissions, exaggerations, half-truths, or lies could cause your policy to become void if discovered later, risking leaving your beneficiaries with nothing.
How large of a factor are my age and health status when a company is deciding to insure me?
These factors are definitely something that are taken into consideration when a life insurance company is determining if they want to insure you.
It’s true that life insurance companies generally assume risks in regards to insuring someone who is not in the ideal health condition, these companies still attempt to stack the odds as high as possible in their favor. To minimize any potential risk, insurance companies decide how much to charge the potential insured party directly depending on particular factors, such as health condition and age.
Life insurance companies use statistical measurements (”mortality tables”) to estimate how long a potential insured party will live for.
Depending on this measurement the insurance company will gauge how much to charge you for the life insurance policy and what benefits will come
along with it.
As the insured party grows older, the risk the insurance company is taking also grows, as does the cost of the policy. This is one of the main reasons why life insurance tends to be so much cheaper the younger you are. It can be difficult to secure life insurance at times if you are fairly old in age.
Life insurance companies do take other factors into consideration other than health and age, however. They also look at elements that can negatively affect a potential insured party’s life expectancy, such as personal habits, career choices, and family health histories.

Beneficiaries, Life Insurance, life insurance company, Life Insurance Policies

Life Insurance in simple words means – A life which is insured. In today’s fast paced world, where everybody is too busy, getting insured does makes sense. In today’s world, where people are too involved in their self- made world, one needs to keep a track of the kind of assistance they can get in bad times. Things can really go wrong, you can meet a fatal accident while going to office, your wife can be discovered of a heart disease at the age of 40 or you can be out of your job. To cover all these situations and to have a backup in the bad times, life insurance is the best thing you can have. Life Insurance works as a reliable backup in the times of crash out or in conditions where you are not able to provide financial support to your family. Human Life in all conditions cannot be valued. Hence, when someone takes a life insurance policy, he/she is paid the monetary benefit called Sum Insured in Insurance Terms. This Sum Insured along with some added bonuses is given out to the Insured or the beneficiary in case of death, permanent disability, permanent partial disability or accident of the person taking insurance. By covering oneself against all these risks involved with our lives, one can think of a substantially easy life. The policy which you take depends entirely upon you. It is for you to determine the kind of policy you would require. Your daily needs after you retire like paying of monthly bills, yearly trips, medical needs and bills etc. are to be calculated by you. Based on this, the life insurance policy has to be decided. Once taken, you can be rest assured that you will have a peaceful life 20 years from now, or that you child will have a proper education even if you are not there or your wife won’t feel helpless in case you are not there to stand by her side or that you will have a peaceful life. Life Insurance is a sensitive issue, often calling for complications. To overcome such complications, the Govt. Of India devised a regulatory board called Insurance Regulatory and Development Board (IRDA). IRDA on its part laid out some common policies on which all the insurance companies of India – whether Govt. or private run. So, irrespective of the company you take the policy from, almost all the profits, benefits and guaranteed returns get are somewhere the same.

Life Insurance, life insurance company, life insurance plans, Life Insurance Policy, life insurance providers, life insurance services