Max New York Life is looking at the urban population with a range of new micro life insurance policies that it plans to launch by June. According to the source, the life insurance policies will be aimed at the grassroot labour class with premiums as low as Rs 50-100. Even a rickshaw-puller can be a potential customer. The company already has a micro insurance product called 'Easy-term policy' aimed at the rural poor, which it sells through SHGs and NGOs and in tie-ups with Peerless and Nirmal Chhaya. Last year, the company had sold almost 17,000 such policies with premiums ranging from Rs 50 to Rs 500. Almost 20 per cent of the company's business comes from the rural market. The company has tie-ups with YES Bank, 12 district cooperative banks of Andhra Pradesh and one in Rajasthan, and is also looking to collaborate with cooperative banks in the eastern region to sell low-end products. The company is contemplating to asset up 100 new offices in the country by the end of the year, of which eight will be in the East. At present, it has 233 offices all over India, of which 39 are located in villages. Almost 17 per cent of the company's business comes from the East where it has 24 offices at present.
Term policy - It is the purest form of life insurance at the lowest cost. The policy keeps the insured person in the protection net for a specific term as decided by you (normally 5, 10, 15, 20 25, 30 Years). If the insured person passes away, his nominee would receive the insured amount ( Sum Assured, decided for the premium paid when the policy was taken). You can decide the amount (sum assured) which you want your family to receive if some unfortunate incident happens to you. In case you survive the term; you may or may not receive any maturity amount depending on the option chosen by you in the beginning. It has two options- Cover with return of Premium- If the insured person survived the term then premiums paid throughout the term for the life insurance cover are paid back as a maturity benefit. The maturity may or may not include the bonus (depending upon the plan chosen by the Insured). For example- Rs 9000 for a 10 Lac cover for 10 year Term. Cover wi...
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