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They could either be added to your corpus annually, at the time of maturity, or at specific intervals of say three or five years.Typically, they are paid out to the insured along with the policy's maturity proceeds.

While loyalty additions as a percentage of annual premiums could range from 2.5% to 7.5% of the premium paid, those linked tofund value could range from 0.25% to 3% of the corpus at maturity or at pre-specified intervals.

For an individual buying a Ulip or any other investmentcum-insurance plan, the 'loyalty additions' could seem like bonuses thatadd value to the corpus without attracting any extra cost. However, one must remember that there are other factors, too, that needto be taken into account while choosing a Ulip, or any financial product for that matter, over others in the market. In other words,

'loyalty additions' should never be the sole ground for selecting a particular product.

It is best to consider, among other things, the charge structure, performance of the fund and the company's track record for settlingclaims before making a decision on buying a Ulip.

Global News Top

News More stringent regulations on representative offices introduced

Newspaper Asia Insurance Review e-China insurance news

Source http://www.asiainsurancereview.com/pages/ecin.asp?country=11#14678

The State Council has issued new and more stringent regulations for representative offices of foreign companies. The newregulations require that representative offices should not employ more than four foreign staff including the chief representative,says a report by Aon Benfield. The rate of deemed profit tax will also be increased from 10% to between 15% and 30%.

While new foreign companies may apply to enter as either branches or wholly-owned subsidiaries, most applicants now apply forsubsidiary status. Each branch is treated as a separate entity for licensing purposes, and is only allowed to write business andestablish sub-branches in a designated geographical area. From 11 December 2004, foreign companies have been allowed to applyfor licenses in any province, municipality or autonomous region in the country.

To be considered for a branch, joint venture, or subsidiary license, a foreign insurer must meet the following conditions: inbusiness for more than 30 years; has a representative office in mainland China for at least two years; with total assets of at leastUS$5 billion; and meet any other conditions which the CIRC deem prudently necessary.

For foreign investors looking at buying shares in domestic Chinese insurers, foreign equity investments are limited to 20% for anyone investor and 25% in all. Eligible foreign investors must also have had total assets of more than US$2 billion in the year beforemaking the investment and have been rated "A" or above in the three years before the investment. Investments may not be madewith borrowed funds and must be held for a minimum of three years.

All foreign investment must also be approved by the CIRC in advance. Foreign insurance companies or groups which hold alicense to conduct insurance business may not, in principle, invest in other Chinese insurance companies. Exception is given if thetwo Chinese insurers consist of one life player and the other a non-life company.

If 25% or more of the insurer's shares are held by foreign entities, it is deemed to be foreign funded. While not explicitly stated,domestic insurance companies have been allowed to out-branch at a much faster rate. Also, only domestic insurance companiesare allowed to write the compulsory classes.

National Event Top

News 9th

Prof. G. S. Diwan Memorial lecture

Newspaper

Source www.dsacted.com

DS Actuarial Education Services & The Juhu Parle Education Society are conducting Ninth Prof. G.S. Diwan Memorial Lectureon ECONOMIC CAPITALA PATHWAY TO EFFECTIVE CAPITAL MANAGEMENT by Dr. Krishnaswamy SriramActuarial consultant on 22nd October, 2011 at 5.30 p.m.. The function will be preside by Shri Jayesh Choksi President of JuhuParle Education Society.

For more details pls. visit

www.dsacted.com

http://economictimes.indiatimes.com/topic.cms?search=Uliphttp://www.dsacted.com/http://www.dsacted.com/http://www.dsacted.com/http://www.dsacted.com/http://www.dsacted.com/http://www.dsacted.com/http://www.dsacted.com/http://economictimes.indiatimes.com/topic.cms?search=Ulip

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