WHO SHOULD OBTAIN LIFE ASSURANCE PLAN / TAKAFUL PLAN?

Who should obtain life assurance Plan and for what purpose? is a big question unanswered since many decades in Pakistan, because in 1972 government of Pakistan has nationalized life assurance industry in Pakistan under the name and style “State Life Insurance Corporation of Pakistan (SLIC)” and also recruited uneducated activists of political parties etc as a result SLIC could not passed on proper message to general public about need and importance of life assurance to them and their family and made Pakistan unmatched and far behind in life assurance sector as compared to other progressive countries. In 1992, realizing this economic shortcoming and big setback, government of Pakistan welcome private companies to do life assurance business in Pakistan.

One will be surprised to know that in USA and Europe more than 90% families are life assurance covered not under compulsion but due to awareness about its importance and need to a family, while only less than 10% families are life assured / Takaful covered in Pakistan as a result if the head of family effected by DISEASE (cancer, heart attack, coronavirus etc), OR DISABILITY (accident by air, road etc) OR DEATH (untimely) then there used to be a big financial blast in the family and his wife and children come on road and face financial death every day as nobody even relatives and friends support them financially in a way it should be ---- Zakat and charity is not permanent and regular solution to this financial problem in Pakistan environment.

As Life assurance / Takaful financial and sales Advisor, when I contacted public in general and professional families in particular, they used to avoid by saying that they are not interested in life assurance / Takaful etc. etc., although they don’t know about it, which is not their mistake. Actually a big gap is created upto 1992 as life assurance agents never approach them to evaluate their family financial needs and to explain importance of life assurance to a family. Instead of this, many of sales agents prefer to beg before them to buy a life insurance policy as their wife is sick or children are hungry and so on. This attitude forced general public to avoid meeting such people without realizing that they and their family are losing financially when something bad happen.

The following class of people needs to obtain life assurance / Takaful Plan for the betterment of their families or for their family businesses, and fulfillment of their children’s big dreams:

1.   Newly married couple;

2.   A person who is maintaining family financially and is in age bracket of 30 years to 45 years;

3.   On arrival of newly born babies for their higher education and / or marriage;

4.   A person who want to enjoy retirement life with no financial burden with no work to do;

5.   Young professionals who are enjoying high status in society;

6.   Overseas Pakistani families who are exposed to high risk living abroad due to fast track travelling, tension and pressure of work which create chance of untimely death, chances of critical illness like heart attack, cancer, severe diabetes, paralyses etc. FACT OF LIFE is that every overseas Pakistan ultimately have to settle in Pakistan;

7.   A person start job, who may be married or unmarried. It is good for unmarried person who may get good amount of money when such person will get married and having children;

8.   A person who want to maintain self-respect and not to prefer begging before friends and relatives when need huge money for children higher education , daughter marriage, refund of loan, need money during jobless period or retirement period etc.;

9.   A couple having daughters and need money for their respectable marriages;

10. A person whose nature of job is of travelling by road, air etc;

11. A person who want reserve money in case of serious illness to pay huge bill amount to hospital;

12. A person who has company insurance facility covering ONLY death, accident and / or hospitalization because company insurance facility never pay money for to meet children higher education or marriage, refund of loan or other contingencies. Further such company insurance facility stop when employee leave the job;

13. A breadwinner who want to protect his family financially in case of his disease, disability or death, so that they may not come on road and face financial death every day;

14. A breadwinner who want that his family get same amount of income every month even in his absence;

15. A family head who want that education of their children should not be disturbed and discontinued in even in their absence or jobless / retirement period;

16. A family businessman / businesswoman who want that his / her family should not suffered financially in repayment of business banks loan and creditors;

17. A family businessperson realized that family business may go up or may go down and cash flow of business disturb a lot and family also suffered;

18. A family businessperson also wish to expand his business after few years without disturbing existing cash flow;

19. A family businessperson who want to retain key employees / management of their business on long term basis usually prefer to obtain life insurance Plan / Takaful Plan on them and pay their premium / contribution;

20. A person who want to keep huge saving to meet any emergencies or contingencies;

21. A person who want to enjoy income tax savings;

22. A head of the family who is on hospital bed or suffered from heart attack, cancer or severe diabetes, paralyses etc and worried about financial needs of family;

23. A young family who feel they will be sahib-e-hasiyat (financially affordable) and Hajj will become mandatory on them and want huge money on hand when performing Hajj, Umrah or Ziarat in 10 to 15 years;

Life assurance / Takaful Plan give maximum benefits / facilities to a planned young family. As age grows Plan become expensive or sometimes become impossible. It is suggested that old age Policyholders / Participants can cover their family financially by taking Plan in the name of their son or daughter who are salaried working / business partner and pay premium / contribution by parents. Even old age grand parents may gift such Takaful coverage / life insurance Plan to grandchildren for their higher education / wedding by obtaining coverage in the name of their children and pay premium / contribution by grandparent FOR THEIR CHILDREN FINANCIAL BETTERMENT. Nowadays legal income of most of the young sons and sons in laws are not lucrative so it will be a big financial support from parents or grandparents to them.

FOLLOWING EXAMPLE WILL GIVE BETTER UNDERSTANDING ABOUT BENEFITS AND FACILITIES LIFE ASSURANCE / TAKAFUL PLAN MAY GIVE TO A POLICYHOLDER / PARTICIPANT:

1.   FIRST YEAR CONTRIBUTION OF RS. 5,30,383/- IF 35 YEARS AGE & PLAN TERM 25 YEARS

(A) On natural death, Plan pays Rs. 37.5 million (min) to family even after one day of plan.

(B) On accidental death, Plan pays Rs. 47.5 million (min) even after one day of plan.

(C) On accidental permanent disability, Plan pays Rs. 10 million and Plan to continue.

(D) Plan pays Rs.0.5 million after 29 days of diagnose any critical illness or surgery.

(E) On retirement age of 60 (maturity of Plan), Plan pays cash value of Rs. 69 million.

(F)  Plan make available cash value every year, which can be withdrawn any time without interest to meet future children higher education / marriage, repayment of forced loan, jobless / retirement period etc. Cash value Say in 7 years Rs.4.070 million, 10 years Rs.7.762 million, 15 years Rs.17.928 million, 20 years Rs.36.270 million, 25 years Rs.69.283 million (Maturity of Plan).

2.   FIRST YEAR CONTRIBUTION OF RS. 2,24,383/- IF 35 YEARS AGE & PLAN TERM 25 YEARS

(A) On natural death, Plan pays Rs. 15 million (min) to family even after one day of plan.

(B) On accidental death, Plan pays Rs. 25 million (min) even after one day of plan.

(C) On accidental permanent disability, Plan pays Rs. 10 million and Plan to continue.

(D) Plan pays Rs.0.5 million after 29 days of diagnose any critical illness or surgery.

(E) On retirement age of 60 (maturity of Plan), Plan pays cash value of Rs. 27.5 million.

(F) Plan make available cash value every year, which can be withdrawn any time without interest to meet future children higher education / marriage, repayment of forced loan, jobless / retirement period etc. Cash value Say in 7 years Rs.1.616 million, 10 years Rs.3.084 million, 15 years Rs.7.121 million, 20 years Rs.14.402 million, 25 years Rs.27.506 million (Maturity of Plan).

3.   FIRST YEAR CONTRIBUTION OF RS. 32,878/- IF 35 YEARS AGE & PLAN TERM 25 YEARS

(A) On natural death, Plan pays Rs. 1.5 million to family even after one day of plan.

(B) On accidental death, Plan pays Rs. 3 million (min) even after one day of plan.

(C) On accidental permanent disability, Plan pays Rs. 1.5 million and Plan to continue.

(D) Plan pays Rs.0.5 million after 29 days of diagnose any critical illness or surgery.

(E) On retirement age of 60 (maturity of Plan), Plan pays cash value of Rs.3.2 million.

(F) Plan make available cash value every year, which can be withdrawn any time without interest to meet future children higher education / marriage, repayment of forced loan, jobless / retirement period etc. Cash value Say in 7 years Rs.0.193 million, 10 years Rs.0.368 million, 15 years Rs.0.851 million, 20 years Rs.1.722 million, 25 years Rs.3.267 million (Maturity of Plan).

OTHER COMMON TERMS INCLUDES:

(A) Income tax savings every year.;

(B) No need to pay yearly contribution if permanently disabled (natural or accidental) and incapable to do any work.

(C) To cover inflation, 5% added on every previous year contribution, which is optional.

(D) Enjoy PRIMUS category, who pay yearly contribution of Rs. 250,000/- and above. Its benefits includes: Use free airport CIP Lounge, one time free Executive check-up in first class hospital in Pakistan like Agha Khan Hospital in Karachi, gift hamper, discounts, attend you within 48 hours.

BREAKING NEWS

1.  Surprise cash gift to enjoy with family;

2.  Nowadays investments have drastically crashed down globally except investment in life insurance / Takaful;

3.  Any person age between 18 and 65 years can obtain policy with YEARLY contribution (premium) from Rs. 8,000/- to above Rs. 1,500,000/-. Even person who is in hospital suffering from any critical disease like heart attack, cancer, Coronavirus may also obtain special policy.

To seek further advises on life assurance / Takaful, please contact Syed Imtiaz Abbas Hussain, Chartered Accountant. EFU life / Family Takaful Sales Consultant Karachi – Pakistan. Cell 0092 3003572479 or Email: [email protected].

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