Why the life insurance companies are giving rebate for larger premiums ?

by admin on Feb.09, 2010, under finance

Undecided Question

:Insurance, Life Insurance Companies, Premiums

5 Comments for this entry

justin bieber
February 9th, 2010 on 9:22 am
Insurance companies gives rebate on mode of payment & high sum assured , it is given on the tabular rate of premium applicable for the age of life insured. the rational behind it is the administrative cost (apart from the commission to the agent) for an insurance in yearly /half yearly mode is less than an insurance in the monthly/qly mode,similarly it is for high sum assured& low sum assured. so the insurance company usually passes on this difference to the customer having insurance with higher mode of payment or high sum assured.PREMIUM so calculated remains the same through out the contract term, no rebate other than mentioned above is offered by any insurance company. rebates offered any agent is an offence under section 41 of insurance act 1938 Source(s): insurance
selena gomez
February 9th, 2010 on 9:22 am
Insurance companies don't give rebates , but give commisions to agents on policies and it is these agents that offer a portion of their commission/income as , so called Rebates. Though these are illegal but who cares ? Even Smoking is illegal .
taylor lautner
February 9th, 2010 on 9:23 am
Rebates are illegal. No insurance company gives them. If you know of a company or agent that is giving rebates contact your Department of Insurance in your state and report them.A link is below. Just click on your state. Source(s): https://www.aipso.com/links.asp
justin bieber
February 9th, 2010 on 9:23 am
For larger premium u get only additional bonus after 6th year from baja-allianz and if u want any exta incentive call 09999631811, Neelam, pay out are possible..
justin bieber
February 9th, 2010 on 9:23 am
Rebate for premium is illegal. They can give discount.http://policywala.com/ Source(s): http://policywala.com/