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Life insurance - Unitedworld School of Business

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  • 1. LIFE INSURANCE
  • 2. LIFE INSURANCE PRODUCTSTERM ASSURANCE PLANSWHOLE LIFE PLANSENDOWMENT TYPE PLANSCOMBINATIONS OF WHOLE LIFE ANDENDOWMENT TYPE PLANSCHILDREN ASSURANCE PLANSANNUITIES AND PENSIONSGROUP SCHEMES—GRATUITY/LEAVEENCASHMENT/TERM LIFE/ PENSION
  • 3. TERM ASSURANCE PLANS TERM ASSURANCE PLANS OFFER PURE RISK COVER WITHOUTANY ELEMENT OF SAVING, HENCE THEY ARE VERY CHEAP.THEYPROVIDE DEATH COVER FOR A GIVEN PERIOD WITHOUT REFUNDOF PREMIUM.THEY ARE USEFUL UNDER CERTAIN SITUATIONS ASCOLLATERAL SECURITY AGAINST LONG TERM LOANS,MORTGAGEetc. Examples of TERM ASSURANCE PLANS— LEVEL TERM –LONGTERM PLANS SUBJECT TO LEVEL PREMIUMS eg.BIMA SANDESH(ALSO REFUNDS ALL PREMIUMS ON SURVIVAL OFLIFE ASSURED. CONVERTIBLE TERM —INSURED HAS OPTION TO CONVERTPOLICY INTO EITHER LIMITED PAYMENT OR ENDOWMENT MORTGAGE REDEMPTION PLAN --ENSURES THAT OUTSTANDINGLOAN IS AUTOMATICALLY SETTLED IN THE EVENT OF DEATH OFTHE BORROWER.
  • 4. WHOLE LIFE PLANSTHIS IS THE CHEAPEST FORM OF LIFE INSURANCE. THEPLANS PROVIDE MAXIMUM DEATH COVER TO THEDEPENDENTS FOR THE PREMIUM PAID.THE PREMIUM ISPAYABLE FOR THE LIFE-TIME OF THE ASSURED OR ALIMITED PERIOD AND THE SUM ASSURED IS PAYABLEONLY ON THE DEATH OF THE LIFE ASSURED.EXAMPLES OF WHOLE LIFE PLANS—Whole Life Plan—with and without profitConvertible Whole Life Plan—after 5yrs.assured can convert itinto endowment plan
  • 5. ENDOWMENT TYPE PLANS THESE ARE VERY POPULAR AS THEY NOT ONLY MAKE PROVISIONFOR THE FAMILY OF THE LIFE ASSURED IN THE EVENT OF HIS EARLYDEATH BUT ASSURE A LUMPSUM AT ANY DESIRED AGE.AMOUNTASSURED BECOMES PAYABLE AT THE END OF THE ENDOWMENTTERM IF IT HAS NOT ALREADY BEEN PAID BY REASON OF HISEARLIER DEATH.PREMIUMS ARE PAYABLE FOR A PERIOD EQUAL TOTHE ENDOWMENT TERM OR UNTIL DEATH,IF EARLIER. Examples of Endowment plans— Double Endowment Plan—S/A is payable if death occurs before selected term anddouble the S/A is payable if life assured survives the period Jan Raksha Plan Special Endowment Plan—for artists/professionals Marriage Endowment/Education Annuity Plan Jeevan Saathi—Double Cover Joint Life Plan Jeevan Shree—guaranteed addition to the S/A +loyalty addition Jeevan Mitra—Double Cover Endowment Plan
  • 6. COMBINATIONS OF WHOLE LIFE ANDENDOWMENT TYPE PLANSCOMBINATIONS PROVIDE FOR PERIODIC PAYMENTS ASWELL AS HIGHER S/A BENEFITS IN CASE OF DEATH DURINGPOLICY PERIODExamples of Combination plans—Money Back Policy—policy is issued for a selected term of say 20yrs.1/5thof S/A is payable on surviving 5 yrs., further 1/5thonsurviving 10 yrs. ,further 1/5thon surviving 15 yrs. and balance 2/5on surviving the term. Full S/A is payable without any adjustment ofsurvival benefits in case of death during policy term.Modified Plans—Jeevan Sanchay,Jeevan Sneha,
  • 7. CHILDREN ASSURANCE PLANS NEW PLANS HAVE BEEN SPECIALLY DESIGNED FOR CHILDREN WHERE THERISK MAY START AS EARLY AS 7yrs. AS CHILDREN CANNOT ENTER INTO CONTRACTS, POLICIES WILL BE TAKENOUT BY ELDERS.WHEN THE CHILD ATTAINS THE AGE OF MAJORITY,HEMAY ASSUME THE OWNERSHIP OF THE POLICY.THE POLICY IS THEN SAIDTO VEST IN THE CHILD. Examples of Children Assurance Plans— Children Deferred Endowment Plan (with profit) Children Money Back Assurance Plan— specially designed for those parents who desire tomake advance provision for education/ marriage/other contingencies in the life of the child Jeevan Sukanya---plan designed exclusively for female child. Plan provides risk cover not onlyon the life assured but also extends to the life of her husband when she gets married. Jeevan Kishore--- This is a novel plan which covers the life of the child from an early age.Bothmale and female children between the ages of 1 and 12 yrs.are eligible to be proposed for Insuranceunder this plan.
  • 8. ANNUITIES AND PENSIONS AN ANNUITY CONTRACT PROVIDES FOR REGULAR PERIODIC PAYMENTSDURING A SPECIFIED PERIOD.ANNUITY MAY BE IMMEDIATE,LIFE ANNUITYOR CERTAIN FOR A PERIOD AND THEREAFTER FOR LIFE OR IT MAY BEDEFERRED. A PENSION IS ALSO AN ANNUITY.IT IS PROVIDED BY AN EMPLOYER TO THEEMPLOYEES OR THEIR DEPENDENTS IN CONSIDERATION OF THE SERVICERENDERED. IMMEDIATE ANNUITY-- IS PURCHASED BY A SINGLE PREMIUM CALLEDCONSIDERATION AND THE ANNUITY MAY BE PAID YEARLY,HALF-YEARLY,QUARTERLY OR MONTHLY.Eg.Jeevan Akshay Plan. VARIATIONS ANDCOMBINATIONS IN PLANS ARE AVAILABLE. DEFERRED ANNUITY— ANNUITY PAYMENTS COMMENCE AFTER THEDEFERMENT PERIOD AND MAY BE PAID YEARLY,HALF-YEARLY,QUARTERLYOR MONTHLY. Eg.Jeevan Dhara Plan VARIATIONS AND COMBINATIONS INPLANS ARE AVAILABLE
  • 9. GROUP SCHEMES—GRATUITY/LEAVEENCASHMENT/TERM LIFE/ PENSION GROUP INSURANCE PROVIDES COVER TO A NUMBER OF PERSONSUNDER A SINGLE POLICY CALLED MASTER POLICY. GROUP GRATUITY SCHEME – PAYMENT OF GRATUITY UNDER PAYMENT OFGRATUITY ACT-1972 IS COMPULSORY.EMPLOYER MAY PAY GRATUITY OUT OFHIS OWN REVENUES OR FORM A TRUST AND ADMINISTER THE SCHEME WITH ANINSURANCE COMPANY,WHICH WILL ALWAYS PROVE MORE BENEFICIAL.. GROUP PENSION/SUPERANNUATION— OBJECT OF THE SCHEME IS TOPROVIDE AN EMPLOYEE PENSION ON RETIREMENT.THE PENSION IS PAYABLEDURING THE LIFETIME OF THE RETIRED EMPLOYEE AND VARIOUS OPTIONS AREAVAILABLE. GROUP TERM LIFE – IS A TERM ASSURANCE PLAN FOR THE GROUP ANDPROVIDES LIFE COVER WITH OR WITHOUT RIDERS. GROUP LEAVE ENCASHMENT –AS PER AMENDMENTS TO THE COMPANIESACT,EMPLOYERS HAVE TO FUND LEAVE ENCASHMENT FACILITY AND THIS CANALSO ARRANGED WITH A LIFE INSURER AT COMPETITIVE PREMIUM RATES.
  • 10. GROUP SCHEMES—GRATUITY/LEAVEENCASHMENT/TERM LIFE/ PENSION GROUP INSURANCE PROVIDES COVER TO A NUMBER OF PERSONSUNDER A SINGLE POLICY CALLED MASTER POLICY. GROUP GRATUITY SCHEME – PAYMENT OF GRATUITY UNDER PAYMENT OFGRATUITY ACT-1972 IS COMPULSORY.EMPLOYER MAY PAY GRATUITY OUT OFHIS OWN REVENUES OR FORM A TRUST AND ADMINISTER THE SCHEME WITH ANINSURANCE COMPANY,WHICH WILL ALWAYS PROVE MORE BENEFICIAL.. GROUP PENSION/SUPERANNUATION— OBJECT OF THE SCHEME IS TOPROVIDE AN EMPLOYEE PENSION ON RETIREMENT.THE PENSION IS PAYABLEDURING THE LIFETIME OF THE RETIRED EMPLOYEE AND VARIOUS OPTIONS AREAVAILABLE. GROUP TERM LIFE – IS A TERM ASSURANCE PLAN FOR THE GROUP ANDPROVIDES LIFE COVER WITH OR WITHOUT RIDERS. GROUP LEAVE ENCASHMENT –AS PER AMENDMENTS TO THE COMPANIESACT,EMPLOYERS HAVE TO FUND LEAVE ENCASHMENT FACILITY AND THIS CANALSO ARRANGED WITH A LIFE INSURER AT COMPETITIVE PREMIUM RATES.