Which is the best Life policy in the market.?

Want to take any life policy which has good return also.

There are so many high quality policies from high quality companies that it is unfair to single out any one.

However, you should strongly consider why you want the policy. It sounds as if you are looking at it for investment purposes.

If so, you may want to look elsewhere for good returns.

Buy a good inexpensive term policy and use the savings to invest on your own and pay a lot less fees and commissions.

Imagine a world where we had to sell our car back to the original dealer, or our house back to the developer, or even stocks to the original seller. This would be a world without secondary markets. It's the world that most life-insurance policyholders have faced historically. But the life settlement market is becoming increasingly fashionable as investors attempt to capitalize on what they deem to be a "mispriced" niche in the life insurance market.

Life Insurance Basics

* Term vs. Permanent Life Insurance
* How Term Life Insurance Works
* Universal Life Insurance
* Variable Life Insurance
* Whole Life Insurance
* Estimating Coverage Needs
* Policy Riders
* Death Benefits
* More Money Basics

Brief History
The viatical industry emerged in the late 1980s as the AIDS epidemic took hold and patients needed to finance expensive medical treatments. Terminally ill policyholders sold their life insurance policies to viatical firms for more than their cash surrender value but less than their death benefit. The viatical market morphed into the life settlement market in the late 1990s when AIDS/HIV patients began living longer. In the past several years, an influx of institutional sources of capital has expanded the life settlement market considerably.

Though the size of the life settlement market is unknown, best estimates illustrate a budding trend. According to A.M. Best Co., life settlement purchases have climbed from approximately $2.5 billion in 2003 to more than $10 billion in 2005 based on face amounts. This industry remains largely unregulated.

Life settlement firms target policyholders with impaired health but not terminal illnesses. This typically includes seniors 70 years or older with no-lapse universal life insurance policies with face values of $250,000 or higher.

An Example
Joe, 70 years old, decides he no longer wants his $1 million universal life insurance policy. His health may have worsened, his beneficiaries may have died, or he simply can no longer afford the premiums. Prior to the emergence of the life settlements market, Joe would have had two choices: 1) accept the insurer's contractually agreed upon surrender value, which is well below the policy's fair market value, or 2) let the policy lapse and receive nothing. That's an easy decision!

With a life settlements market, Joe could sell his policy to a life settlement company for up to 3 times its cash surrender value. The life settlement firm will pay future premiums on the policy and receive the $1 million death benefit upon Joe's death.

Life Insurance Tools

* How Much Life Insurance Do I Need?
* Return on Whole Life Insurance?
* Return on Universal Life Insurance?
* Return on Variable Life Insurance?
* Term vs. Whole Life Insurance
* Term vs. Universal Life Insurance
* Term vs. Variable Life Insurance
* See All Calculators

Effect on Life Insurers
There are a number of actuarial-based assumptions used to price life insurance policies, one of which is expected lapse rates. Life insurers price various policies with the supposition that some policyholders will lapse (discontinue paying premiums) rather than retaining the policy until death. Life settlements make estimating lapse assumptions more difficult because policyholders are opting to sell their policies rather than allowing them to lapse. If insurers price policies based on significantly lower lapse assumptions than are realized, insurers lose. Furthermore, the insurer cannot raise rates on guaranteed premium policies to make up the shortfall. Consequently, they could be compelled to hoard more reserves to pay claims.

We don't think this will have a materially adverse effect on insurers. Like many industry professionals, we think an active secondary market increases the value of insurance policies to policyholders. This should increase demand, which could drive higher premiums. Also, life insurers aren't sitting still.

What Insurers Are Doing About It
Most insurance companies offer accelerated death benefits for policyholders with impaired health as long as their life expectancy is one year or less. This competes well with viaticals but is not a close substitute for life settlements due to the limitation on life expectancy. This gap creates an opportunity for life settlement firms to capitalize on policyholders with impaired health and a life expectancy longer than one year. The fair market value of insurance policies exceeds its surrender value when the insured experiences health impairment because the death benefit is greatly accelerated. Life settlement firms currently offer policyholders fair market value; however, this gap would narrow considerably if insurance companies began offering surrender values adjusted for health impairments.

Insurance companies are taking several steps to thwart competition by life settlement firms. They are attempting to identify potential targets through the application process and cease offering policies in which premiums are financed. Insurers are also modifying underwriting assumptions and altering agents' commission structure to emphasize retention. We think solid management teams will continue to take the appropriate steps to preserve profitability while others will sacrifice future profits for near-term growth by continuing to sell into this market. MetLife MET and Protective Life PL are taking measures to reduce exposure to this market. Meanwhile, John Hancock (a unit of Manulife MFC) and Lincoln National LNC have experienced tremendous sales growth in universal life policies during the first quarter, a prime target for life settlements.

Health Insurance Basics

* Health Insurance ABCs
* Maintaining Your Benefits
* Employee Assistance Plans
* Dependent Care Benefits
* Using a Cafeteria Plan
* More Money Basics

Our Take
Some insurers support life settlements as a tool to assist consumers whose financial protection needs have changed. However, insurers specifically oppose investor-initiated life insurance transactions that are intended to circumvent insurable interest laws--in other words, life settlement firms that contact prospective policyholders to purchase an insurance policy with the intention of subsequently selling it to the life settlement firm. As long as potential profit-making opportunities are available, investors will attempt to exploit them just as in any "arbitrage" situation, whether real or perceived.

We believe that the development of the secondary market for life insurance helps consumers by providing additional alternatives. Naturally, there are inherent risks to having a third party owner with no insurable interest in the insured's life because the investors benefit upon the insured's demise. However, some life settlement firms withhold certain personal information when policies are sold to investor groups. Conversely, all information is disclosed when policies are sold to other life settlement companies. To the extent that policyholders perform the necessary due diligence to select a reputable life settlement firm--just as they would when selecting an insurance company--we think this market is a win-win for consumers.

http://money.aol.com/insurance/morningstar/_a/our-take-on-the-secondary-market-for/20060622141709990001

Insurance is covering a risk and investment is looking for returns.
You do not expect your insurer to provide you best returns and cover your risk also. hence it is advisable you go for whole life insurance and invest in equity related mutual funds for best returns. beware risk and return are interrrelated.

go for icici market linked plans they are god even i have them its called unit linked plans

There are several things you need to consider. First what are you purchasing the insurance for, to replace income for family, provide estate liquidity etc.

Next the amount of coverage you need and the duration of that need. For example, if you only need the coverage for a short period of time (meaning less than 20 years) then term might be a good fit. If you need is beyond 20 years then universal life may be a fit.

As far as a good return, I am on a believer in buying life insurance as an investment. If you want to invest, invest, if you want insurance buy insurance. Though Universal Life does pay interest the real purpose is to provide protection.

As far as companies, shop around. You can finds vast differences in premiums between companies and products.

they all are different, hard to say

This is all based on an individuals needs.
Then make sure the comapany has at least a A rating from Best or Standard Poors --they rate the insurance companies for finanacial stability.

That is not an answerable question. There are many factors involved that must be considered:
What are your individual needs?
Are you providing for yourself or a family of 8?
Are you 20 years old or 65?
Do you have any coverage now?
Are you healthy or have medical conditions?
How much is affordable?
Do you need to help cover a $500k mortgage or only need a $20k final expense?
Are you fresh out of school & living in the basement with only the clothes that Mom washes for you to your name? or middle aged with a business you own?

this is just to illustrate how many (and these are not all) factors go into choosing a policy. It cant be done by price alone, regardless of what Suze Orman says. You may find a very cheap one on cost, but your health disqualifies you for that particular one, so you are forced to buy more expensive. You could find an ultra cheap one & the company is rated B- & could cost you much more later. If you go with the big well known name, you could be paying more & not have rider options that could benefit you.

And how many people do you know actually take the difference between term & whole, & invest it?

go for tata aig money back, or reliance market return

Do you need a life policy? have you depentants? Take out a convertable term assurance policy for a sum assured that will provide for your dependants.

Provide for your savings separately to maximise your return. In the long run equity based funds will out perform all others but they are very risky. Fixed interest funds deliver stable returns without the underlying risks of losing some or all of your money

First calculate your human life value and then decide whether to go for a term insurance or an endowment.

Term assurance are cheaper and only the risk is covered. It is better to invest in Mutual funds and equity for growth of your investment.

Popular term assurance plan from LIC is Anmol Jeevan

Firstly, it depends on ur actual need?
that is either u want policy which is best for income tax rebate or more facilitating to life risk coverage,
But today in market the best insurer after LIC in life insurance is ICICI prudential, & one of the best policy they provide is TERM INSURANCE WITH ENDOWMENT!
Rest deepnds on ur market study

term insurance with HDFC is the cheapest.
for best returns invest in MF.

get term insurance - it is cheaper
then take the extra money a "whole life" policy would cost you - and invest in a Roth IRA

and you will have a ton MORE money

Happy Thank$giving

We r not ur insuuren agents

hi,
HOW ARE U, I HAVE RECENTLY JOIN A LIFE INSURANCE COMPANY (BHARTI-AXA), AND I HAVE MY GROUP(Bharti-Axa@yahoogroups.com) FOR MORE DETAIL JOIN THIS GROUP.
WE HAVE CAME UP WITH VERY GOOD PLAN THAT IS FUTURE CONFIDENT IT IS BASICALLY LONG TERM PLAN.
IT IS DEPEND ON YOU HOW MUCH TIME YOU SHOULD WANT TO PAY MINIMUM IS THREE YEARS(YOU WILL GET SURRENDER VALUE) - SIX YEARS)FULL AMOUNT PAID) BUT IF YOU CONTINUE THAN U WILL GET SUM ASSURE OR FUND VALUE WHICH EVER IS HIGHER.
IT IS BASICALLY DEPENDS ON MARKET FACTOR (EQUITY, DEBT, BALANCE, PROTECTION)

EQUITY - WILL BE ON EQUITY MARKET
DEBT - IT WILL BE ON GOVERMENT SECUTIES AND SUM AMOUNT ON EQUITY
BALANCE - IT WILL BE BALANCE IN EQUITY AND DEBT
PROTECT- IT WILL BE ON GOVERMENT SECURITY

PREMIUM PAYING TERM IS YEARLY , MONTHLY, QUATERLY,HALF YEARLY/
NO EXTRA CHARGES ARE ALOWED

YOU HAVE ALSO HAVE TO OPTION OF SWITCHING( TRANSFER FROM EQUITY TO DEBT OR TO BALANCE OR TO PROTECT AND VICE VERSA)

IT HAS BONUSES ALSO

IT IS BASICALLY INSURANCE *** INVESTMENT PLAN

THANKING YOU
SANDIP JITENDRA CHAVDA

Enter Your Message or Comment

User Name:
User Email:
Post a comment:

Archive: Forum -Forum -Finance - Links - 1 - 2 - RSS - All RSS Feeds
The Causes and the Results. 0.024
Copyright (c) 2011 Financial Crisis Sunday, May 27, 2012 - Terms of use - Privacy Policy