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Exide Insurance Launches Term Plans With Return Of Premium

By Anumeha

Exide Life Insurance Company Limited is a life insurance company maintained by Exide Industries of India. Exide Life Insurance has its links with various markets and agencies. It allocates its products over these multi channels along with direct channels.

The company is linked with around 200 offices across the country and consists of around 50,000 advisors from these offices. Exide insurance grants group life insurance solutions. The company acquires and asset of around 11,015 crores and provides services to around 15 lakh clients across the country.

Exide insurance has been functioning since the year 2001. It is headquartered in Bangalore, India. Exide insurance deals with life insurance products. They provide long-term saving and protection services. Exide Life Insurance Company Limited has been ranked as one of the most reliable brands in the insurance sector in India according to the ‘Economic Times’, based on the survey ‘Equity Brand Survey 2014’.

History of Exide Life Insurance Company Limited:

A Dutch financial company called ING insurance tied up with Vysya Bank of Bangalore. They ventured in 2000 to enter into the insurance market for Indian customers. The joint venture later formed the ING Vysya life insurance company. In the same year the ING insurance company and Damani Group made a joint venture to form a life insurance joint venture company. This marked the first bancassurance venture in India.

The Exide Industries bought 50% of the stakes of ING Vysya life insurance in the year 2005. During financial crises in 2008 ING decided to bailout of the agreement. They started to restructure their strategy and exit their insurance business from India.

ING Vysya To Exide Life Insurance Company Limited:

Exide industries obtained 50% stake of ING Vysya Life Insurance company after the exit of ING from India in 2013. Therefore, becoming the 100% stake holder. In 2014 following the validation from IRDA (Insurance Regulatory and Development Authority) and the MCA (Ministry of Corporate Affairs) the name changed to Exide Life Insurance Company Limited from ING Vysya Life Insurance company Limited.

Exide Life Insurance Company Limited Launches Term with Return Of Premium:

With its enormous growth and success over the years, Exide insurance has finally launched a term life plan. The term plan is called the ‘Exide Life Smart Term Plan’. It offers life coverage and assured returns of premium (ROP) on maturity of the policy term. This term plan has three different versions.

ü  Classic version- one may receive 100% of the premiums back on maturity.

ü  Step-up – One may receive up to 110% to 150% of the premium back on maturity.

ü  Based on the tenure one chooses all-inclusive of offers that has higher coverage for low premium and partial return of premium on maturity.

Exide Insurance Discontinues Its Existing Term Plan for The New Term Plan ‘ROP’:

Exide insurance gave over its existing term plans to replace it with the new Term plan since the demand for it was higher than the usual. Although critics against the new Term plan has criticized due to Term plan’s higher rate of premium. However, Sanjay Tiwari, Executive vice president of product management rejects criticism saying that although the premiums may be a little higher than usual the returns would be in great sum on the maturity of policy.

Sanjay Tiwari said- “ROP plans are between pure term and savings plans. There is a demand for such plans because the mind set of customers are that they should get back their premium on maturity”.

Effective Premium Can Be Lower Than The Premium For Unaltered Term Plans:

If the sum assured is INR 1.1 crore and the policy’s tenure is for 20 years then the annual premium in the comprehensive option for 45-year-old male reaches to 39,454 INR. 31% of the premium is returned on maturity and the effective premium reaches around 27,000 INR. This is in proportion to the premium in regular term plans.

Return Of Premium Term Plan Offers:

Exide Insurance Offers flexible premium payment choices in the ROP Term plan. Similar to that of regular payment, single payment, five-year payment and rides like critical illness and accidents coverage. Other than ROP term plans, there are increasing demand for UILIPs (Unit Linked Insurance Plans). Exide insurance share a product portfolio of around 9% to 10% with ULIP . Exide insurance does not plan to increase it beyond 15%. Exide insurance practice selective ULIPs distributions to their customers.

Financial and Operational Highlight’s of Exide Life Insurance in 2016-2017:

ü  Profits: An amount of Rupees 112 crores are increased by 27% in these two years.

ü  Gross Premium Income: An amount of Rupees 2409 crores, growth of 18% in these two years.

ü  Premium Renewal: An amount of Rupees 1546 crores, growth of 9% in these two years.

ü  Assets: An amount of Rupees 11,015 crores, growth of 16% in these two years.

 

Exide Life Insurance Pension Plans:

 

The main objective of this plan is to ensure that when the policyholders retire they have a source of income to meet their living expenses.

  • Exide Life Golden Years Retirement Plan: This plan offers has to provide its clients three choices for the installment of the premium. It can be paid at once, for a given period or all through the term of the plan. It likewise offers ensured vesting and loyalty advantages.
  • Exide Life Immediate Annuity with Return of Purchase Price: This pension plan that accompanies a single premium installment choice. Also, it does not require any medical examinations and the entry purchase amount is returned within 30 years of purchasing the plan in case of death making it a death benefit.

 

Exide Life Child Plans:

 

  • Exide Life Mera Aashirvad: This is a child insurance plan which gives maturity and death benefits which is tax free benefits in which the plan has a premium waiver clause which is applicable in case of the unexpected demise of the insured life and payouts are given as per the policy with the objective of aiding child’s future.
  • Exide Life New Creating Life Insurance Plans: This is a regular or limited insurance plan for children which give a tax-free return offering rebates on higher premiums.
  • Exide Life Wealth Maxima – Maxima Child: This is a ULIP (Unit Linked Insurance Plan) which helps you grow financially to help you build your child’s future. The premium sum can be paid yearly, half-yearly or monthly.
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