Simplifiers

GROUP MEMBERS

Rinku PatelShubhangi RathodGarima MishraPritam Naik

INSURANCE

Life insurance is contract5th largest marketGrowth rate – 32% to 34%GDP – 1.9% to 4%LIC nationalised in 1956Pvt co. –IPO after 10yrs

TYPES OF LIFE INSURANCE POLICY

CHILDREN PLAN

• Children's Plans helps you save so that you can fulfill your child's dreams and aspirations. • These plans go a long way in securing your child's future by financing the key milestones in their lives even if you are no longer around to oversee them.

• For example, with the high and rising costs of education, if you are not financially prepared, your child may miss an opportunity of a lifetime.

TYPES OF CHILDREN PLAN

1 . JEEVAN ANURAG:

• This is a with-profits plan specifically designed to take care of educational need of children

• The minimum age of the life assured under the basic plan is 20 to 60 years. this plan also provides for an immediate payment of basic sum assured amount on death of the life assured during the term of the policy.

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2. MARRIAGE ENDOWMENT OR EDUCATION ANNUITY PLAN

• This is an endowment assurance plan that provides for benefits on or from the selected maturity date to meet the marriage educational expenses of the named child.

3. JEEVAN KISHORE: • This is an endowment assurance plan available for

children of less than 12 years of age the policy may be purchased by any of the parent grandparent.

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4. JEEVAN CHHAYA:

• This is an endowment assurance plan that provides financial protection against death throughout the term of the plan this is a with-profits plan and participates in the profits of the corporation’s life insurance business.

TERM INSURANCE

• Simplest and cheapest insurance policy.

• After maturity no eligibility of profits or allowances.

• Policy available for 5, 10, 15, 20 or 30 years.

• Only lump sum amount paid in case of death of policyholder.

SOME TERM INSURANCE PLANS

1. TWO – YEAR TEMPORARY ASSURANCE POLICY

• Risk coverage for 2 years.

• Single premium

• No loan granted against plan

• Proposer has to pay examination fees, age proof

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2. ANMOL JEEVAN

• Category I & category II people are eligible

• Minimum age 18 yrs. & maximum 50 yrs.

• Maximum age at the time of maturity is 60 yrs.

• Minimum sum assured is 3 lacs & maximum 5 lacs.

LIFE INS. CO. OFFERING TERM INS. PLANSLife Insurance Companies Policies

ICICI Prudential I-protect

HDFC Life Term assurance Plan

LIC Anmol Jeevan

ENDOWMENT ASSURANCE PLAN

• Best saving plan

• Moderate premium, high bonus , high liquidity

• After maturity added benefit like bonus and profits.

• Plan will have maturity of 10, 15 & 20 years.

JEEVAN SARAL ENDOWMENT PLAN

• Minimum for 10 yrs. & maximum for 55 yrs

• Sum Assured= Monthly Premium* 250 Time Risk Coverage

• Risk Coverage= 250* Monthly Premium (natural)

• Accidental Coverage= 500* Monthly Premium

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• Loan granted against plan

• Swap of premium after 3 yrs

• Partial Withdrawal Benefit

After 3 yrs (80% of paid up premium) After 4 yrs (90% of paid up premium) After 5 yrs. to 9 yrs 11 months 29 days (100% of paid

up premium) After 10 complete yrs (100% of paid up premium +

Loyal Addition)

DOCUMENTS

• Self Attested Photograph

• Residence Proof

• Photo- ID Proof

• Income Proof

COMPANIES PROVIDING ENDOWMENT PLANS

Life Insurance Companies Policies

Met Life Met Suvidha

SBI Life SBI Life Sudarshan

LIC Jeevan Saral

BENEFITS

• Death Benefit

• Maturity Benefit

• Tax Benefit (U/S 80c)

ULIP

ULIP stands for Unit Linked Insurance Plans. As we know that insurance is for protecting our life from any

uncertain events like death or accident. The purpose of the normal insurance plan is just protecting

the life but not ensuring any savings for the future. Many people wanted plan which gives protection as well as

the returns for their investment. So, insurance companies come up with the ULIP plan where

the premium amount is invested in the stock market.

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In ULIPs, a part of the investment goes towards providing you life cover.

The residual portion of the ULIP is invested in a fund which in turn invests in stocks or bonds; the value of investments alters with the performance of the underlying fund opted by you.

TABLE OF INVESTMENT OPTIONSGeneral description Nature of investment Risk

category

Equity funds Primarily invested in company stocks with general aim of capital appreciation

Medium to High

Income, fixed interest & bonds funds

Invested in corporate bonds,Government securities & other fixed income instruments

Medium

Cash funds Also known as money market funds-Invested in cash, bank deposits and money market instruments

Low

Balanced funds Combining equity investment with fixed interest instruments

Medium

MUTUL V/S ULIP

In structure both ULIP and Mutual Funds looks similar. But, in objective they are different. Because of the high first-year

charges, mutual funds are a better option if you have a five-year horizon.

But if you have a horizon of 10 years or more, then ULIPs have an edge.

To explain this further a ULIP has high first-year charges towards acquisition (including agents’ commissions).

As a result, they find it difficult to outperform mutual funds in the first five years. But in the long-term, ULIP managers have several advantages over mutual fund managers. 

Since policyholder premiums come at regular intervals, investments can be planned out more evenly.

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Mutual fund managers cannot take a similar long-term view because they have bulk investors who can move money in and out of schemes at short notice.

From October 2009, IRDA has set the maximum fees amount to be levied against the ULIP policies. Which makes the ULIP more compete against the mutual funds.

WHAT SHOULD I VERIFY BEFORE SIGNING THE PROPOSAL?

All the charges deductible under the policy Features and benefits Limitations and exclusions Lapsation and its consequences Other disclosures Illustration projecting benefits payable in two scenarios of 6%

and 10% returns as prescribed by the life insurance council. What will my family receive if something happens to me?

Investment returns from ULIP may not be guaranteed.” In unit linked products/policies, the investment risk in investment portfolio is borne by the policy holder”. Depending upon the performance of the unit linked fund(s) chosen; the policy holder may achieve gains or losses on his/her investments. It should also be noted that the past returns of a fund are not necessarily indicative of the future performance of the fund.

EXPENSES CHARGED IN A ULIP

Premium Allocation Charge:A percentage of the premium is appropriated towards charges initial and renewal expenses apart from commission expenses before allocating the units under the policy. 

Mortality Charges: These are charges for the cost of insurance coverage and depend on number of factors such as age, amount of coverage, state of health etc. 

Fund Management Fees:Fees levied for management of the fund and is deducted before arriving at the NAV. 

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Administration Charges:This is the charge for administration of the plan and is levied by cancellation of units.

Surrender Charges:Deducted for premature partial or full encashment of units. 

Fund Switching Charge:Usually a limited number of fund switches are allowed each year without charge, with subsequent switches, subject to a charge. 

Service Tax Deductions:Service tax is deducted from the risk portion of the premium.

MONEY BACK POLICY

 Plan is an excellent plan with good return on reinvestment, best suited for businessmen and professionals.

Money is available at regular intervals in future to meet the specific expenses such as children's education or marriage.

At the same time, the policy provides insurance protection for the family as well as old age provision.

SALIENT FEATURES

A policy where lump sum amounts are paid to the life assured at periodic intervals on survival.

In case of death of the life assured within the term, the total sum insured is paid to the nominee, irrespective of earlier survival benefits.

Bonus is payable under this scheme. Premiums are to be paid regularly to get survival benefits. Premiums cease at death or on expiry of term whichever is earlier. This plan can be availed of for terms 20 or 25 years .

ON DEATH

Full sum assured is payable at death of the life assured within the term, without any deduction of earlier survival benefits.

(For example, suppose a person takes a Rs.1,00,000/- policy for 20 years. At the end of the 5th and 10th year he receives Rs.20,000/- each as survival benefit. If he happens to die in the 12th year, the nominee of the life assured will receive full Rs.1,00,000/-, irrespective of the earlier benefits of Rs.40,000/-)

ON SURVIVAL

Terms At the end

Amount of money back For example on rupees1,00,000/- policy

For 5th 20% of sum assured 20,000/-

20 10th 20% of sum assured 20,000/-

years 15th 20% of sum assured 20,000/-

Plan 20th 40% of sum assured 40,000/- + Bonus

5th 15% of sum assured 15,000/-

For 10th 15% of sum assured 15,000/-

25 15th 15% of sum assured 15,000/-

years 20th 15% of sum assured 15,000/-

Plans 25th 40%of sum assured 40,000/- + Bonus

ADVANTAGES OF LIFE INSURANCE

Mental peace Financial security Loan in case of need Cover for whole life Tax free source of savings Maintenance of living standard Assured income through annuites

TAILOR MADE

Life Stage Primary Need Life Insurance Product

Young & Single Asset creation Wealth creation plans

Young & Just married

Asset creation & protection Wealth creation and mortgage protection plans

Married with kids Children's education, Asset creation and protection

Education insurance, mortgage protection & wealth creation plans

Middle aged with grown up kids

Planning for retirement & asset protection

Retirement solutions & mortgage protection

Across all life-stages

Health plans Health Insurance

DISADVANTAGES OF LIFE INSURANCE Expensive Irrelevant in case of no family person Increasing premium No benefit in case of long life

MARKET SHARE OF INSURANCE CO. (2011)

MARKET SHARE (2012)

QUESTIONNAIRE

How do you formulate the policies ? Which policies are sold the most ? How to apply for any policy(Eligibility criteria) ? Documents required(taking policy) ? Tax exemption ? Criteria of settlement of claim ? How you create awareness among customer ? What are documents required for settlement of

claim ?

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What are the penalties levied on non-payment of premium ?

What are the target to be achieved ? What is settlement done during

emergencies ? What are the challenged faced ? Do you have any tie-up ? How life ins is different from health

ins ?

THANK YOU