Shriram Life Insurance posts 38% growth in FY16

Shriram life Insurance is the only private insurer to have made profits in the first three consecutive years. When compared to other industry peers that have been around for more than ten years of operation. Shriram is also the most profitable life insurance company in India. What do they do differently? The company’s performance stands out of the efficient use of capital and their low cost of operations. It has been successful in taking life Insurance to the section/class of people where it is the most successful- The Common Man. The founders of the company have always maintained a firm focus on the rural market since they put their step in 1974 towards building this group.

Shriram life insurance has an outstanding underwriting record. It has won several rewards for innovation in relaxing the underwriting standards and to satisfy customer needs. Apart from the laurels the company also posted 37.7% enlargement in sum rewarding during FY16.

Manoj Kumar Jain, handling executive of Shriram Life, pronounced that the association is awaiting 25-30% on all business parameters during an FY17. He said crossing 1000 crore in gross premium is a huge milestone for the company. They sold close to 2.67 lakh retail policies which rank them on number 7 of all private life insurers in the country. For the FY March 2016, the company has covered more than 1.4 crore lives including 60 Lakh lives of Telenor subscribers.

Not only this the company has now expanded its reach from 200 branches to 530 branches through the expansion that it started three years back. This makes it a PAN India company, the company is still expanding its reach to TIER III and IV cities of the west, north and east India by adding additional 75 branches in the current Fiscal year.

Shriram life insurance also announced INR 20 Per 1000 Sum Assured for policy term less than ten years and INR 30 per 1000 Sum Assured for policy term greater than ten years.

Shriram Life Insurance offers a host of Insurance Plans in the form of Fiscal assistance to their policyholders. Here is the list of plans that you can invest in:

•         Traditional Life Insurance Plans- These are the conventional plans and offers a guaranteed sum at the time of maturity along with the bonus, depending on the plan one has opted.

•           Group Life Insurance Plans- In this plan people are covered under a single insurance plan; it is common among a group of employees or member of the union.

•          Endowment Life Insurance Plans- In such plans, the insurer pays periodic premiums which are invested depending on the insurance company’s judgment.

•        Money Back Life Insurance Policy- The policyholder of such plans receives a portion of the sum assured at regular intervals based on the plan chosen.

•      Term Life Insurance Plans- This is also the low-cost Insurance plan wherein the customer is allowed to secure a corpus to his/her family in case of sudden death or unfortunate event. In such plans the company and the customer go into a contract wherein in case of the insurer’s demise the company pays the deposited money/amount to the beneficiary after a certain period. Remember this period varies from 5-30 years. However, the premiums are quite low.

• Unit Linked Insurance Plans (ULIP)- One of the most popular plans, the investment is made as per the insurer’s financial commitment, preference, and the risk appetite. The investment made here is also subjected to various market risks, which are obviously to be borne by the policyholder. The Policyholder can redeem the collected units at the time of maturity at the prices that prevail then. Some plans also offer additional benefits either at the time of maturity or annually.

The 6 Biggest Retirement Planning Mistakes You Can Avoid

Retirement brings an end to your economic independence. You stop earning and your life gets dependent on what you have saved throughout your employment years. A little mistake in your retirement planning may result in an irreparable financial damage in your life.

In this article, we will show you the 6 most common blunders that people make while planning their retirement.

Read on to prevent yourself from committing the same mistakes in your life.

 Not Planning Your Post-retirement Lifestyle

Lifestyle planning should be considered an integral part of retirement planning. You must have a clear picture in your mind about the kind of life you are willing to have after retirement as this will help you set your financial goal for retirement. If you want a laid-back life with your family and grandchildren around, the required size of your retirement corpus will be different from that if you had preferred a life full of tours and travels. Your post-retirement accommodation will also make differences in your retirement planning. So, the first step is to plan a preferred post-retirement lifestyle and then, take help of a pension calculator to estimate the amount you need to have in your retirement corpus.

Starting Too Late and Saving Too Little

It is necessary to start saving for retirement as early as possible. Having an employee’s Provident Fund ensures that your retirement planning is already in progress. But you too should take an active part in your retirement planning. Start your own planning separately by investing in different saving schemes.  Investment plans are another great option to multiply your wealth. Moreover, start investing as early possible. If you start late, you will have to save in larger amounts. Starting late and saving little is a dangerous combination that can end up your post-retirement life in a financial disaster.

Not Taking Economic Ups and Downs into Account

Economic ups and downs are the parts and parcels of life. Retirement, therefore, should be planned in such a way that it beats inflation and help you stay financially independent throughout your life.  Pension calculator will estimate the amount you need to have, by the time you retire. The results of pension calculator are mostly accurate as it takes inflation into account. Taking the current inflation rate into account is very important as economic fluctuations are largely dependent on it. Hence, Plan for your retirement strategically so that it sustains all the economic ups and downs of your post-employment life.

Not having sufficient health insurance coverage

Our health tends to deteriorate with age. Therefore, if you do not want to spend a major part of your retirement savings on medical expenses, you should get yourself sufficient health coverage. Health insurance plans promise to provide financial support in times of medical emergencies. So, if you think a life insurance plan with critical illness rider or hospital cash rider will be enough, you are wrong. Getting your health insured is the wisest way to fight medical contingencies post retirement.

Not having a diversified investment portfolio

If you think Fixed Deposits are the only investment instrument to grow wealth, you are wrong. They offer lesser interest rates that those offered by other investment plans like ULIPs or equity funds.  ULIPs give better returns than bank FDs and NSCs. So, put your money into various investment instruments. Moreover, while investing, make sure to have a diversified financial portfolio, as it will give you higher returns at lower risks.

Not Taking Retirement Plans Seriously

A large fraction of people in India does not take pension plans seriously. As per them, retirement plans offered by insurance companies do not offer as much return as that offered by other investment instruments like Equity Linked Saving Schemes, National Pension Scheme or Senior citizen Scheme. But these schemes do not provide life coverage which is sufficiently offered by pension plans.  Moreover, if you are not averse to investment associated risk, you can invest in a unit linked retirement plan or a pension plan offered by mutual fund as well.

To Sum Up,

Plan your retirement strategically. Do not make the blunders mentioned above, if you want a nourishing and flourishing life post retirement.