Why invest in epremium insurance?

What are the plans in Life Insurance Corporation ?

The insurance plans launched by Jeevan Bima Corporation are:

 

01. Life insurance (with benefits) 

02. Term Insurance (With Profit)  

03. Progressive Term Insurance (With Profit)

04. Expected Term Insurance (with Profit)

05. Multi Installment Insurance (with benefits)

06. Marriage Endowment Policy       

07. Joint Term Insurance        

08. Child Safety Insurance      

09. Dual security tenure  

10. Pension insurance   

11. Health insurance      

12. Single Premium Policy (with benefits)

13. Triple Protection Policy

14. Overseas Assurance Policy (with benefits)      

15. Life Insurance (Without Profit)      

16. Term Insurance (Without Profit)       

17. Expected Term Insurance (Without Profit)     

18. Overseas Mediclaim Policy    

19. Self-Dependent Insurance (Without Profit)      

20. Property Tax Insurance (Non Profit)   

21. Education and Marriage Insurance for Boys and Girls (with benefits)   

22. Guaranteed Bonus Term Insurance     

23. Money Back Term Policy (Without Profit)      

24. Term Insurance (Non-Profit)      

25. Self-Dependent Insurance (Single Premium Policy)  

26. Life insurance scheme for poverty alleviation         

27. Expatriate Insurance    

28. JBC Monthly Savings Scheme      

29. JBC Expected Monthly Savings Scheme    

30. Social Security Insurance (with benefits)        

31. Promila DPS (With Profit)        

32. Hajj Insurance (with benefits)      

33. Rural Life Insurance (with benefits)    

34. Mortgage Protection Policy

 What is an insurance contract? 

An agreement entered into between the insured and the insurer for the purpose of transferring the potential risk of human life or property is called an insurance contract. In an insurance contract, the insured transfers the risk in return for payment of installments or premium for a specified period and the insurer accepts the risk for a specified period by receiving the premium. That is, if there is a loss of property of the insured as a result of any possible accident, or the death of the life or at the end of the life insurance period, the insurance contract is the agreement to pay the amount determined by the insurer to the insured or his nominee.

What is the insurance offer? 

An insurance proposal is a written application made by the insured to the insurer for taking insurance. Generally, insurance is offered on printed paper prescribed by the insurance company. Where the insured’s name, father’s name, mother’s name, occupation details, date of birth, permanent address, present address, list and term of insurance, insurance number, amount of premium, mode of payment of premium, income and source of income Nominator’s name, age, relation, customer Signature, date of application, witness statement etc. are recorded.

What information and documents must be given to the insured to make the insurance contract?

All the information and documents that the insurance customer has to provide to make the insurance contract are:-

  • Details of the name and address of the insured are to be submitted.
  • Details of occupation of insurance customer Field specific customer occupation proof is required to be submitted.
  • Details of income of the insured customer are required to submit field specific income proof.
  • The professional address of the insured is to be submitted.
  • Insurance customer has to submit proof of age.
  • Passport size photograph of the insured and nominee is required to be submitted.
  • Medical/Non Medical Report to be submitted as proof of good health.
  • Urine test report, ECG report, X-ray report and different blood test reports are required to be submitted for large amount insurance/ age wise.
  • Persons working abroad are required to submit attested photocopy of passport and last Bangladesh arrival stamped passport page.

 What are the things the insurance customer needs to check?

The policyholder generally needs to verify the following:-

  • Whether all the information in the proposal is correctly and accurately recorded.
  • Whether the financial capability or capacity of the insurance company is sufficient.
  • Whether all information is correctly recorded in the insurance document.
  • Whether the sales representative of the insurance company has proper appointment letter.

 Why invest in premium?

Insurance companies invest the surplus (if any) from their premium income after paying insurance claims, commission, salary-bonuses of development officers and management expenses in safe and profitable sectors for the following reasons:

A. Payment of Insurance Claims: Interest, bonus etc. are added to the premium collected and naturally the amount of insurance claim is much higher than the epremium received. Hence there is no alternative to invest the premium to equalize the potential claims by investing the premium received in safe and profitable sectors.

b. Covering financial shortfall: Premiums received from insurance customers are much less than the insurance claims payable. Premium investment is essential to avoid any financial difficulties in paying insurance claims on time.

c. Support to National Economic Activities: Huge premiums collected by the insurance industry must be invested in government development activities, increasing national production through development of domestic industries and strengthening national economic strength through export of surplus production.

Premium investment is very important in insurance business. The success of an insurance company depends to a large extent on the sound and efficient management of investment activities.

What is an agent and what does an agent do?

Agent: The person who sells the insurance scheme/insurance policy to the customer on behalf of the insurance company is called agent or insurance representative. Bima Pratidhi acts as a bridge between the insured and the insurance company. Section 124 of the Insurance Act-2010 has provisions relating to insurance agents. Insurance agents get commission from insurance companies as per the law by the authorities.

Job of Agent: The role of agent is very important in life insurance business. An insurance agent does the following on behalf of an insurance company:

      (1) Selling insurance policies of appointed insurance companies.

     (2) To induce the insured to pay renewal premiums on time.

     (3) Connects the insured with the insurance company for payment of insurance claims.

To carry out the above functions, the insurance company takes measures to establish the relationship between the insured. This is why agent activity is very important in life insurance business expansion. If the activities of the agent are done faithfully, the insurance products will be highly successful in marketing.

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