5 occasions to re-assess your life insurance coverage

Life insurance is something which you ought to invest in. However, once you lock into a policy, it doesn’t mean that the same policy will serve you for the rest of your life. Here are 5 instances when should reassess your life insurance policy.

1. You’re buying a house

It’s necessary to look at home insurance if you are building your dream home, or you want to renovate your house. Proper home insurance will provide coverage for the actual house, its belongings and all its occupants.

2. You’re expecting a baby

Bringing a child into this world is a big responsibility. Expect a significant rise in your household expenses (ie: baby food, clothes, toys etc). This means that there is a lot more at stake for your new family. As a parent, having enough life insurance coverage will give you peace of mind knowing that your family can maintain their standard of living and secure your child’s future. For more information, check out our article about the importance of having child insurance.

Photo credits: HNB Assurance. All rights reserved. This picture may not be duplicated on other websites.

3. You’re getting married

Congratulations! Wedding planning aside, one of the more important considerations for soon-to-be-newlyweds is taking out a life insurance policy. This will secure your spouse’s ability to pay living expenses, medical bills, vehicle payments etc. What better way to kickstart your marriage knowing that your future is well assured!

4. You’re getting a promotion/new job

This one applies for a lot of people, especially young people. We’ve already mentioned why getting a life insurance policy at a young age is beneficial. However, its worth taking a look at that policy as you change jobs or get promoted.

For example, a promotion would mean that you could invest in a decent vehicle, home or purchase other goods and services as you accumulate wealth. In order to keep up with your bills and maintain your lifestyle, you should consider buying more insurance, now that you have the extra money to do so.

Photo credits: HNB Assurance. All rights reserved. This picture may not be duplicated on other websites.

5. Retirees with an Empty Nest

This may be tough for some parents to hear, but you should be ready when the kids leave home. The big advantage is that your life insurance needs are likely to drop as you only need to depend on yourselves. That being said, you need to be aware that your financial & health concerns are managed appropriately. Thus, make it a point to speak to your life insurance advisor.

Even if none of these 5 reasons apply to you, its still smart to review your insurance at least once a year. The advantage is that you can speak to your advisor and find out about new products/covers which will benefit you, which you may not know about if you didn’t take the initiative.

 

 

 

Disclaimer: The views shared in this blog are based on the macro economic conditions & industry status quo as per the time of publishing.

What is ‘My Pension’? Mr. Manjula de Silva Answers your FAQ’s

A guaranteed monthly lifetime pension from HNB Assurance, for everyone over 55 years

HNB Assurance has identified a primary need of the elderly citizens of our country and has introduced a Guaranteed Monthly Pension Plan named ‘my pension’ for those who seek a peaceful and contented retirement, becoming the first insurance company in the country to do so. This unique product is being offered in collaboration with its parent company, Hatton National Bank, which will market this product islandwide through its branch network.

We interviewed Manjula de Silva, Managing Director of HNB Assurance on the importance of retirement plans and their latest product ‘my pension’.

       1. Can you tell us about the current situation of the insurance industry and what is your reaction to that?

Yes, the insurance industry is highly competitive, similar products are being launched with similar pricing strategies; there is a high level of new entrants entering the Industry making it more and more competitive. We look at this in a positive manner and we encourage such competition as that enables us to be innovative with new products that cater to the needs of our customers. We have managed to have a high growth and improve our market share of Life insurance because we cater to their needs and continuously do research on what the consumer wants. HNB Assurance PLC has recorded an impressive growth as per the latest interim results released to the Colombo Stock Exchange. The Company was successful in strengthening its topline over the first half of the Financial Year of 2014, where the combined turnover, expressed as Gross Written Premium (GWP), of both Life and Non-Life Insurance businesses escalated by 24% over the same period of the previous financial year. This achievement was driven by an impressive 27% growth in Life Insurance GWP while Non-Life Insurance GWP also contributed with a growth of 21%.

      2. Can you tell us about ‘mypension’? Is it an insurance plan or a pension plan?

It is a combination of a pension plan and an insurance plan. ‘my pension’ gives you a guaranteed monthly pension for life. In addition, a life cover will be in effect in the event of demise of the policyholder within the first 10 years. At the point of entry, the Company guarantees a  pension value which you will continue to receive throughout your life irrespective of interest rate fluctuations. My pension is a single premium policy where you can pay the premium at once and enjoy monthly pensions for the rest of your life, regardless of how long you live.

    3. Can you illustrate through an example?

For instance if you are 55 years of age and have invested 5 million rupees you will receive a monthly pension of Rs. 41,750 (Annual pension will be Rs. 501,000) plus a life cover of Rs. 5,500,000 less total monthly pensions paid up to death. This monthly pension will be paid for as long as you live. The monthly pension will vary depending on the initial investment that you have paid. The other remarkable feature of this pension plan is that if you buy it at an older age, the pension you will receive will be more. For instance, a person aged 65 investing Rs. 5 Million will receive a monthly pension of Rs. 43,750 (Annual Pension of Rs. 525,000) with the same life cover for 10 years.

     4. What will happen if the policyholder dies within the first 10 years? Will the family get anything back?

Yes, that is what we are addressing through the life cover attached to the policy. If a policyholder dies within 10 years of taking the policy, his nominated beneficiaries will receive 110% of the investment less the pensions received by the policyholder up to his death. This effectively ensures that the initial investment is protected in the event of an early death. For instance if someone aged 55 invest one million Rupees and dies after two years of receiving the pension, his beneficiaries will receive approximately Rs. 900,000/-. This is in addition to the monthly pension of approximately Rs. 200,000/- already received by the policy holder.

     5. Normally a pension is given to government employees, what qualifications do you need to possess in order to  attain this product?

In order to obtain a My pension retirement plan you need to be within the entry age 55 to 80 & pay an initial investment for the single premium in the value range of Rs. 1 Million to 25 Million.

Out of all the retirement products in the market and considering the market interest rates, my pension is the best product available offering the highest pension for a given investment. The specialty about this product is that even though the interest rates fluctuate in the market, you will get the same fixed amount that was calculated at the time of committing. You will get a monthly pension from the day that you bought this product till the last day that you live. Even if you have been a government employee or a private employee same applies to all who obtain this pension plan.

     6. From where can you get a ‘mypension’ plan?

My pension’ can easily be obtained from any of the 51 HNB Assurance branches that are located Island wide or from any of the 175 HNB branches where Bancassurance counters of HNB Assurance are located. Customers can also call the dedicated 24 hour hotline on 0114-384-384 to get more details or visit the Customer Service Center located at 51A, Dharmapala Mawatha, Colombo 3.

     7. It is clear that ‘mypension’ is an attractive pension plan, Can you say something about the company that offers it?

HNB Assurance is a trusted company with a Fitch rating of ‘A (lka)’ which implies the strong financial stability of the company. We are a proud subsidiary of HNB which is one of the largest private sector commercial banks in Sri Lanka with a heritage of more than 125 years. Our hope is that our customers have a safe, independent retirement where they can enjoy their retirement with no stress, with an abundance of confidence that we will look after their financial needs.

Manjula de Silva – Managing Director of HNB Assurance

Disclaimer: The views shared in this blog are based on the macro economic conditions & industry status quo as per the time of publishing.