Health Insurance

1.It is the contract between the insurer and the insured where in the insurer agrees to pay hospitalization expenses to the extent of an agreed sum insured in the event of any medical treatment arising out of an illness or an injury.

2.A Health insurance policy generally covers the basic costs in case of hospitalization due to any accidents/diseases/illnesses which do not form a part of the permanent exclusions of the policy.

3.Health insurance policies gives a tax benefit under Sec 80 D of income tax Act.

4.Grace period beyond the expiry date of the policy for renewal is 30 days.

Types of Annuities

Immediate Annuities

Becomes payable one annuity period later purchasing it in lumpsum

Commenses at end of monthly, quarterly, half yearly and yearly

Deferred Annuities

With a deferred annuity, money is invested for a period of time until the annuitant is ready to receive annuities.

Is paid after accumulation or deferment phase

Basic Classification of Annuities

• Firstly, how the annuity is purchased, they are divided into single premium annuities, by paying the lumpsum premium and by paying series of premium over a number of years.
• Secondly, how often the annuity is paid, it is typically on monthly basis but other options like fortnightly or quarterly may be possible.
• Third way, when the annuity payment is due to begin, either immediate or a deferred annuity
• Fourth classification, Length of the payout period or when the annuity payments would end.
• Finally, whether the annuity amount is fixed(Guaranteed) or variable.

Payment to Annuitants:

1. Annuities are paid to annuitants as long as they live during guarantee period & thereafter to nominee.
2. In joint life annuity, after death of annuitant, 50% of annuity is paid to surviving spouse during her life time.

• If the spouse predeceases the annuitant, the annuity ceases.

Types of Pension Schemes

1.Public Pensions

a.This is known as the first pillar of social security and consists of pensions that are provided by the state.
b.These are publicly managed with mandatory membership and are typically funded on a "Pay As You Go)(PAYG) Basis

2.Occupational Pensions
This is the second pillar of post-retirement provision. Occupational pensions have been set up by employers for their employees, with contributions from both employers and employees.  They are normally sponsored and form part of the employees benefit package

3.Personal Pensions
A personal pension is typically offered and purchased in the form of an annuity contract between the insurance company or other pension provider and an annuitant

Commutation of Pension
1/3rd of the accumulated value can be withdrawn at the time of retirement and is tax-free