The insurance business in India isn’t just growing, but also becoming more sophisticated in terms of product offerings. To help readers keep ahead of developments in this business, Mint features a Q&A on insurance every Monday.
What is the difference between various fund options? How should one choose between the options?
Generally, all life insurance companies offer the customer the option of investing in four or five basic funds. These include:
* Secure: progressive return on your investment by investing a higher element in debt securities, with minimum exposure to equities.
* Balanced: capital growth by availing opportunities in debt and equity markets, providing a customer with a good balance between risk andreturn.
* Growth: higher capital growth by investing a higher element of assets in the equity market.
* Index: aims to create long-term wealth by investing in shares of the 50 companies that make up the Nifty index on the National Stock Exchange and has a lower fund management charge compared to other equity-linked funds.
Depending on your risk appetite and your objective for investment, you can decide which fund option to invest in.
My brother died recently in a car accident. He had invested in a unit-linked insurance plan about four years back. What I wanted to know is how the nominee/legal heir makes a death claim in a unit-linked policy
In case of a death claim, the claimant (nominee/legal heirs) must submit thefollowing:
* An intimation of the death of the life assured
* Death certificate issued by the local health and medical authority
* Completed claim forms
* Policy of life assurance
* Medical evidence in case of health and disability rider claims
* Other forms required by the company
As per the Insurance Regulatory and Development Authority directive, the claim has to be settled within 30 days from the date of receipt.
In case the claim warrants an investigation, then the insurance company has to complete the investigation not later than six months from the time of lodging the claim.
Readers are welcome to write in with their queries to firstname.lastname@example.org. The questions will be answered by senior executives from leading insurance firms.
This week’s expert is Bert Paterson, managing director and CEO, Aviva India