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Ing vysya life insurance

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  • 1. INDEX ING VYSYA LIFE INSURANCE SERIAL NO. TOPICS PAGE NO. CHAPTER I INTRODUCTION  NEED FOR LIFE INSURANCE.  MANAGEMENT TEAM.  PARTNERS. 1-11 CHAPTER II PLANS  PROTECTION.  SAVINGS.  INVESTMENT.  RETIREMENTS. 12-34 CHAPTER III RIDERS. 35-38 CHAPTER IV EMPLOYEE BENEFITS.  GROUP GRATUITY  GROUP SUPERANNUATION 39-50 CHAPTER V FAQ,S 50-65 CHAPTER VI SURVEY 66-67 CHAPTER VII QUESTION,S ASKED TO SALES MANAGER 68 CHAPTER VIII CONCLUSION 69 CHAPTER IX METHODOLOGY 70 CHAPTER X BIBLOGRAPHY 71 T.Y.B.B.I (SEM-VI) 1
  • 2. ING Vysya Life in India - An Overview ING Vysya Life Insurance Company Private Limited (the Company) entered the private life insurance industry in India in September 2001, and in a span of 5 years has established itself as a distinctive life insurance brand with an innovative, attractive and customer friendly product portfolio and a professional advisor sales force. It has a dedicated and committed advisor sales force of over 21,000 people, working from 140 branches located in 74 major cities across the country and over 3,000 employees. It also distributes products in close cooperation with the ING Vysya Bank network. The Company has a customer base of over 4,50,000 & is headquartered at Bangalore. In 2005, ING Vysya Life earned a total income in excess of Rs. 400 crore and also has a share capital of Rs. 440 crore. The Company aims to make customers look at life insurance afresh, not just as a tax saving device but as a means to add protection to life. The one thing we hold in highest esteem is 'life' itself. We believe in enhancing the very quality of life, in addition to safeguarding an individual's security. Our core values are therefore defined as Professional, Entrepreneurial, Trustworthy, Approachable and Caring. The Company’s portfolio offers products that cater to every financial requirement, at any life stage. We believe in continuously developing customer-driven products and services and value being accessible and responsive to the needs of our customers. T.Y.B.B.I (SEM-VI) 2
  • 3. In fact, the company has developed the LifeMaker. A simple method which can be used to choose a plan most suitable to a specific customer based on his needs, Requirements and current life stage. This tool helps you build a complete financial plan for life, whether the requirement is Protection, Savings or Investment, Retirement. T.Y.B.B.I (SEM-VI) 3
  • 4.  Protection First, life insurance helps you to protect your income and your family’s financial future in case you are not around.  Saving Second, life insurance works as a long term saving, thus giving you the financial strength to achieve your life goals. It also gives you tax benefits.  Retirement Third, life insurance makes sure that you have regular income after you retire and also helps you maintain your standard of living. T.Y.B.B.I (SEM-VI) 4
  • 5.  Investment Final, life insurance is a safe, long-term investment, free from the risk of market swings. At the end of the term, you or your family can enjoy added returns on investment. Why Do I Need Life Insurance? That’s a common question. Why would you need Insurance? Simply put, Life brings with it many surprises, some pleasant and some not so and a Life Insurance Plan ensures that you are better prepared to face uncertainties. How? In a number of ways: Protection You need life insurance to be there and protect the people you love, making sure that your family has a means to look after itself after you are gone. It is a thoughtful business concept designed to protect the economic value of a human life for the benefit of those financially dependent on him. That’s a good reason . Supposing you suffer an injury that keeps you from earning? Would you like to be a financial burden on your family, already losing out on your salary? With a life insurance policy, you are protected. Your family is protected. Retirement T.Y.B.B.I (SEM-VI) 5
  • 6. Life insurance makes sure that you have regular income after you retire and also helps you maintain your standard of living. It can ensure that your post-retirement years are spent in peace and comfort. Savings and Investments Insurance is a means to Save and Invest. Your periodic premiums are like Savings and you are assured of a lump sum amount on maturity. A policy can come in really handy at the time of your child’s education or marriage! Besides, it can be used as supplemental retirement income! Tax Benefits Life insurance is one of the best tax saving options today. Your tax can be saved twice on a life insurance policy-once when you pay your premiums and once when you receive maturity benefits. Money saved is money earned! T.Y.B.B.I (SEM-VI) 6
  • 7. Management Team Board of Directors (as on March 14th, 2006) Mr. Rajan Raheja: Chairman. Mr. Kshitij Jain : Managing Director & Chief Executive Officer. Mr. Peter Alexander Smyth: Director. Mr. N.N. Joshi: Director. Mr. Jayesh Doshi: Director. Mr. Satish Raheja: Director. Mr. Rajesh Kapadia: Director. Mr. S.B. Ganguly: Director. Senior Management Team Kshitij Jain : MD & CEO. David Briscombe : Chief Finance Officer. K R Subramanian : Chief Operating Officer. T.Y.B.B.I (SEM-VI) 7
  • 8. David Hatton : Director, Employee Benefits and Pensions. Priya Gopalakrishnan : VP and Head of Human Resources. Ramesh Dasary : Strategic HR Initiatives. T K Uthappa : Head of Tied Agency. R Vishnu Kumar : Sales Controller. CEO Speak At ING Vysya Life Insurance, in a span of 5 years of operations, we have established ourselves as a distinctive life insurance brand in India. With an innovative, attractive and customer friendly product portfolio backed by a professional advisor force, we are proudly serving over 4,50,000 customers today. We are a part of the ING Group, the world's largest financial institution*, trusted by 60 million people across 50 countries, with a heritage of over 150 years. Our cornerstone is the trust that you've invested in us. We've always designed products with your needs in mind and a communication model that speaks to you. T.Y.B.B.I (SEM-VI) 8
  • 9. Our website reflects our openness & dynamism. We speak a language that you will understand, and not complicated jargon. What we tell you, we hope, will make it easier for you to choose from our product portfolio, the policy that suits you best. For instance, we have developed a dynamic new touch point between you and us -the LifeMaker The LifeMaker is a complete financial planning tool. It takes in basic information from you and offers you the policy that is best suited to your needs. In an interactive way, it gives you results that are customized to you and empowers you to choose for yourself what is best for your requirements. It is our endeavor to serve you better & develop a greater understanding of your needs. And our website is a step in the direction. So please go ahead and explore our site. Celebrate Life! Kshitij Jain MD & CEO, ING Vysya Life Insurance Co Pvt Ltd. Bangalore, INDIA. T.Y.B.B.I (SEM-VI) 9
  • 10. Partners A glance at our equity partners: • ING Group • Exide Industries Limited • Gujarat Ambuja Cements Limited • Enam Group ING Group ING Group is known for its philosophy of ‘keeping it simple’. This thought is the result of ING Group’s 150 years of understanding of customers’ needs and fulfilling them. ING is a global financial institution of Dutch origin. It has 150 years of experience, and provides a wide array of banking, insurance and asset management services in over 50 countries and is trusted by over 60 million customers. Its 1,13,000 employees work daily to satisfy a broad customer base – individuals, families, small businesses , large corporations, institutions and governments. The ING Group has gone from strength to strength year after year and is the world's 13th T.Y.B.B.I (SEM-VI) 10
  • 11. largest company*. The ING Group is the world's largest financial institution* with over US $ 1 trillion# in assets and profits of US $ 8.5 billion in 2005#. Over the last 150 years, ING Group has grown to become the largest insurer in the world*. Today it touches the lives of millions of people across 50 countries. ING Group has wide and deep experience in setting up companies in new markets, which require substantial investments underlining ING's long-term commitment. In the last 20 years, ING Group has established successful life insurance companies in 15 countries contributing to the development of insurance services in these countries successfully. Exide Industries Limited With eight manufacturing plants strategically located across the country, Exide is India’s largest producer of automotive and industrial batteries. Its range of products covers everything from the smallest batteries required in motorcycles to the giant batteries powering submarines. For the fiscal year 2004-05, the company registered a sales turnover of Rs. 1,482 crores and a net profit of Rs. 77 crores. Boasting an uninterrupted dividend payment track record of 58 years, the company has a global presence through its subsidiaries in Singapore, Sri Lanka and the United Kingdom. T.Y.B.B.I (SEM-VI) 11
  • 12. It is the market leader in the organised sector in both the automotive and industrial segments. 'EXIDE' and ‘SF (Standard Furukawa)', the flagship brands of the Company, are also the leading battery brands in the country. Gujarat Ambuja Cements Limited Gujarat Ambuja Cements Ltd. is the fastest growing cement company in India and considered one of the most reputed companies in India. GACL’s brand “Ambuja Cement” is considered a premium brand in the Indian market. Apart from domestic sales, Ambuja Cement is also the largest seller of Indian cement in countries including Sri Lanka, Dubai and Kuwait. Its plants are some of the most efficient in the world, with environment protection measures that are on par with the finest in the developed world. It is the most profitable cement company in India, and the lowest cost producer of cement in the world. Enam Group Enam Group is one of India’s leading financial service providers reputed for its ability to perceive the true potential of businesses and enhance their value. The culture at Enam Group is deeply rooted in ethics, innovation etc. About ING Vysya T.Y.B.B.I (SEM-VI) 12
  • 13. ING Vysya (a group terminology) has 3 businesses in India, ING Vysya Life Insurance, ING Vysya Bank and ING Vysya Mutual Fund. ING Vysya Bank is a premier private sector bank with a 70-year heritage and 1.5 million satisfied customers. ING Vysya Mutual Fund is a mid sized asset management company with a retail investor focus. PROTECTION PLANS Conquering Life Critical Illness Plan What can this plan do for me? The Conquering Life Plan is a comprehensive critical illness cover that helps bear the financial burden of a critical illness. This is a unique health insurance benefit that helps you to protect yourself and your family against health and lifestyle risks. The Conquering Life Plan is ideal because it provides protection to you and safeguards your family's lifestyle through an easily affordable, pure risk life cover. And more importantly, it covers you against ten life- threatening critical illnesses- T.Y.B.B.I (SEM-VI) 13
  • 14. Cancer, Heart Attack, Coronary Artery Bypass Graft, Stroke, Kidney Failure, Major Organ Transplant, Brain Tumor, Paralysis, Coma and Blindness. Key Features 1. Complete Protection Against 10 Critical Illnesses And Death 2. Money When You Need it Most (Critical Illness Claims Paid on Diagnosis) 3. Free Life Cover After a Critical Illness Claim Benefits Illness Benefits · A critical illness cover of up to 50% of the sum assured is paid to you in the event of a confirmed diagnosis of any one of the critical illnesses covered. This sum can be up to a maximum of Rs. 20 lakhs. · The critical illness cover is only valid for the first critical illness suffered and not any that follow. · In the event of critical illness, the remaining premium payments for the period of the policy will be waived. Death Benefits . Your family will get the total sum assured, or T.Y.B.B.I (SEM-VI) 14
  • 15. · Your family will receive the difference between the total sum assured and the Critical illness claim paid, if any. Additional Benefits Rider Benefits Increase your coverage at a nominal extra cost by opting for any of our riders Term Rider, Accidental Death Rider, Accidental Death, Disability & Dismemberment Rider. Tax Benefits Tax benefits under Section 88 and Section 10 (10D) are available on all our life insurance plans and riders. Look-in Period This is a 15-day period for you to go through the terms and conditions and decide upon taking or canceling the policy. Product Features Eligibility Minimum age for application: 18 years Maximum age for application: 50 years Maximum age up to which premium can be paid: 65 years T.Y.B.B.I (SEM-VI) 15
  • 16. Premium Payment Term Choose premium paying terms of 10-25 years Coverage Term Same as the Premium Payment Term Premium Payment Options Annual, half-yearly or quarterly Minimum Premium Payable Annual Rs. 2, 500 Half-Yearly Rs. 1, 500 Quarterly Rs. 1, 000 Processing Fee Rs. 700 (non-refundable one time fee) T.Y.B.B.I (SEM-VI) 16
  • 17. SAVINGS PLANS Reassuring Life Endowment Plan (With Cash Bonus) What can this plan do for me? An endowment plan that arms you for tomorrow. It helps you bear those heavy expenses while building your home and providing for your children's education and marriage. And while it helps make your post-retirement years carefree and secure, it also takes care of your near and dear ones in the event of your untimely death Key Features 1. Lump Sum Benefit At Maturity T.Y.B.B.I (SEM-VI) 17
  • 18. 2. Unique Annual Cash Bonus 3. Multiple Bonus Management Options (Re-invest, Withdraw, Offset Premiums Benefits Survival Benefits I. A large financial asset for you and your beneficiaries once the policy matures, so you can meet large expenses – like funding higher education for your kids, building a house or even organizing your child’s wedding. Death Benefit II. Financial support for your family in case anything were to happen to you. III. Cash Bonus* This plan has the advantage of annual cash bonus which you may receive based upon the performance of the company. You have the option to accumulate it, withdraw it or adjust it against payment of future premiums. Bonuses are non-guaranteed and are based on the company's performance. Additional Benefits Rider Benefits Increase your coverage at a nominal extra cost by opting for any of our riders – Term Rider, Accidental Death Rider, Accidental Death, Disability & Dismemberment Rider and Waiver of Premiums Rider. T.Y.B.B.I (SEM-VI) 18
  • 19. Loan Benefit After paying a premium for three years, you will be eligible for a loan. Tax Benefits Tax benefits under Section 88 and Section 10 (10D) are available on all our life insurance plans and riders. Look-in Period This is a 15-day period for you to go through the terms and conditions and decide upon taking or canceling the policy. Product Features Eligibility Minimum age for application: 12 years Maximum age for application: 55 years Maximum maturity age: 65 years Premium Payment Term You can choose premium paying terms from 10 - 30 years (i.e. 10, 11, 12...20...30) Life Coverage Term Same as the premium payment term Premium Payment Options Annual, half-yearly, quarterly or monthly Minimum Premium Payable Annual Rs. 4, 000 T.Y.B.B.I (SEM-VI) 19
  • 20. Half-Yearly Rs. 2, 000 Quarterly Rs. 1, 000 Monthly Rs. 500 Reassuring Life Endowment Plan (Reversionary Bonus) What can this plan do for me? Ideally, once your protection needs are met, consider a saving plan. The Reassuring Life Endowment Plan with reversionary bonus* is one such offering. Besides being a savings option, it also acts as a highly reliable safety net for your family in case something happens to you. The Reassuring Life Plan is ideal because it gives you the incredible benefit of a reversionary bonus* which enhances your life cover, and hence your sum assured, dramatically, every year. So when the policy matures you can receive almost double the initial sum assured. Key Features 1. Lump Sum Benefit at Maturity 2. Customised Life Covers 3. Enhancing Life Cover (Attractive Reversionary Bonus) T.Y.B.B.I (SEM-VI) 20
  • 21. Benefits Survival Benefits I. A sizeable financial asset for you and your family once the policy matures, so you can meet large expenses - like higher education for your kids, investment in a house, or organizing your child’s wedding. II. A life cover that enhances rapidly, annually, thanks to the reversionary bonus* feature. This basically means the bonus is earned not just on the original sum assured but also on the previously accumulated bonus - an amount which goes on increasing every year. III. A final additional bonus. IV. Bonus are non-guaranteed and are based on the company's performance. *Applicable if at least premiums for 15 years have been paid. Death Benefit V. Your family would receive a large sum which would include the sum assured and the accumulated reversionary bonus and final additional bonus. Additional Benefits Rider Benefits Increase your coverage at a nominal extra cost by opting for any of our riders – T.Y.B.B.I (SEM-VI) 21
  • 22. Term Rider, Accidental Death Rider, Accidental Death, Disability & Dismemberment Rider and Waiver of Premiums Rider. Loan Benefit After paying a premium for three years, you will be eligible for a loan Tax Benefits Tax benefits under Section 88 and Section 10 (10D) are available on all our life insurance plans and riders. Look-in Period This is a 15-day period for you to go through the terms and conditions and decide upon taking or canceling the policy Product Features Eligibility Minimum entry age: 12 years Maximum entry age: 55 years Maximum maturity age: 65 years Premium Payment Term You can choose paying premium terms from Payment Term 10-30 years. (i.e. 10, 11, 12...20...30) T.Y.B.B.I (SEM-VI) 22
  • 23. Life Coverage Term Same as the Premium Payment Term Premium Payment Options Annual, half-yearly, quarterly or monthly. Minimum Premium Payable Annual: Rs. 6, 000 Half-Yearly: Rs. 3, 000 Quarterly: Rs. 1, 500 Monthly: Rs. 750 T.Y.B.B.I (SEM-VI) 23
  • 24. INVESTMENT Rewarding Life Whole of Life Plan What can this plan do for me? Rewarding Life Whole of Life Plan is an offering that enables you to protect, save and invest. With this plan, you can create a sizeable financial asset to pass on to your family. The Rewarding Life Plan covers you for 85 years even after the premium paying term has ended. Your investment goes on increasing every year, thanks to a compound reversionary bonus. This basically means that apart from the bonus earned on the sum assured, your accumulated bonus earns you an additional bonus Key Features • Wealth Accumulation with Reversionary Bonus and ‘Final Additional Bonus’ • Life Cover Till 85 Years • Flexible Premium Payment Options T.Y.B.B.I (SEM-VI) 24
  • 25. Benefits I. Survival Benefit A large lump sum payment to you and your family when you turn 85. This includes the full sum assured the vested compound reversionary bonus and the final additional bonus. The total amount could be as much as 10 times the sum assured! II. Death Benefit Your family gets the sum assured, the compounded reversionary bonus** and the final additional bonus*. III. Final Additional Bonus The additional bonus will be paid once the policy reaches its maturity benefit stage (at 85 years of age or earlier death). IV. Bonus are non-guaranteed and are based on the company's performance. ** Compound reversionary bonus: Apart from the bonus on the basic sum T.Y.B.B.I (SEM-VI) 25
  • 26. assured, the accumulated bonus on your policy will also earn an additional bonus Additional Benefits Rider Benefits Increase your coverage at a nominal extra cost by opting for any of our riders – Term Rider, Accidental Death Rider, Accidental Death, Disability & Dismemberment Rider and Waiver of Premiums Rider. Loan Benefit After paying a premium for three years, you will be eligible for a loan. Tax Benefits Tax benefits under Section 88 and Section 10 (10D) are available on all our life insurance plans and riders. Look-in Period This is a 15 day period for you to go through the terms and conditions and decide upon taking or canceling the policy. Product Features T.Y.B.B.I (SEM-VI) 26
  • 27. Eligibility Minimum entry age: 12 years Maximum entry age: 50 years Maximum age up to which you can pay your premium: 65 years Flexible Premium Payment Term Based upon your current age, you can choose premium payment terms of 15, 20 or 25 years Life Coverage Term Up to the age of 85 years Premium Payment Options Annual, half-yearly, quarterly or monthly Minimum Premium Payable Annual Rs. 6, 000 Half-Yearly Rs. 3, 000 Quarterly Rs. 1, 500 Monthly Rs. 750 The Powering Life Limited Payment Endowment Plan What can this plan do for me? T.Y.B.B.I (SEM-VI) 27
  • 28. For those who have achieved financial success, ensuring that success is well protected and loved ones are cared for is an important necessity. The limited payment endowment plan does just that by allowing you to pay for the policy in a short period and to enjoy the life insurance coverage and maturity benefits for a long period. ING Vysya Life Insurance can help you to ensure that your family's future is safe and secure. The Powering Life Plan is ideal because you get a life cover and your family enjoys long term financial security. And thanks to a high reversionary bonus, your investment grows over time. You can even customise your coverage term and choose from a range of premium payment terms. Key Features • Safe Investment with High Tax Free Returns • Customisable Premium Payment Term • Enhancing Life Cover Benefits I. Survival Benefits . A large lump sum payment to you when the policy matures. . A life cover that enhances rapidly with the addition of a reversionary bonus* each year. . A final additional bonus** at the end of the term. . Flexible life-cover term. . Flexible premium payment options. T.Y.B.B.I (SEM-VI) 28
  • 29. II. Death Benefit Your beneficiaries will receive the accumulated reversionary bonus* and final additional bonus** in addition to the sum assured. III. Bonus are non-guaranteed and are based on the company's performance. **Applicable if at least premiums for 15 years have been paid. Additional Benefits Rider Benefits Increase your coverage at a nominal extra cost by opting for any of our riders -Term Rider, Accidental Death Rider, Accidental Death, Disability & Dismemberment Rider and Waiver of Premiums Rider. Loan Benefit After paying a premium for two years, you will be eligible for a loan. Tax Benefits Tax benefits under Section 88 and Section 10 (10D) are available on all our life insurance plans and riders. Look-in Period This is a 15-day period for you to go through the terms and conditions and decide upon taking or cancelling the policy. Product Features T.Y.B.B.I (SEM-VI) 29
  • 30. Eligibility Minimum entry age: 18 years Maximum entry age: 60 years Maximum maturity age: 70 years Premium Payment Options Annual, half-yearly, quarterly or monthly Minimum Premium Payable Annual Rs. 24,000 Half-Yearly Rs. 12,000 Quarterly Rs. 6,000 Monthly Rs. 3,000. T.Y.B.B.I (SEM-VI) 30
  • 31. RETIREMENTS The Best Years Retirement Plan What can this plan do for me? As the name suggests, this plan can ensure that your post-retirement years are spent in peace and comfort. And it extends the same comfort to your family by standing as a financial asset, in case you are not around. This long-term investment plan can truly ensure the best years of your life. Key Features 1. Investment Amount And Returns Declared Are Guaranteed 2. Steady Returns With 80 CCC Balanced Fund 3. Flexibility in Fund Accumulation 4. Lower Management Fees 5. Lower Minimum Contribution Limit Benefits T.Y.B.B.I (SEM-VI) 31
  • 32. I. Capital Guarantee: . Your contributions are transferred to your Individual Pension Amount(IPA). Charges as applicable will then be deducted. . The balance in your IPA will be invested in the ING Vysya Capital Guarantee Plan. II. Flexibility: . To chose the regular contribution to be made each year. . With regard to timing and frequency of contributions . To start the pension whenever you wish. . To postpone the retirement date to make best use of market conditions. III. Spouse Pension Benefit: . In case of death, your spouse can defer the purchase of annuity, if the age is less than 45 years. . To encash up to 5% of the outstanding benefit amount each year, upto age 45,and then can purchase annuity from balance, if any. Additional Benefits Term Rider Benefits The cover shall be equal to the lower of 5 times the regular contribution or Rs. 1,00,000. T.Y.B.B.I (SEM-VI) 32
  • 33. The sum assured under this rider will be used to increase the benefit amount under the basic policy. Term Rider Premium Premium will be paid by way of deduction from the IPA on each due date. Tax Benefit Under Section 80 CCC. Any lump sum received at chosen retirement date or on death is exempted from tax, under Section 10(10A) of the IT Act. Product Features Eligibility Minimum entry age: 18 yrs Maximum entry age: 65 yrs Minimum deferment period: 5 yrs Maximum deferment period: 52 yrs Minimum vesting age: 45 yrs Maximum vesting age: 70 yrs Applicable Charges Initial one-time charge Rs. 700 Contribution Related Charges All first year contributions 10% All subsequent contributions 3% T.Y.B.B.I (SEM-VI) 33
  • 34. Annual Management fee will be levied on each 31st March on the IPA after crediting bonus interest. The Annual Management fee will depend on the size of balance in the IPA and will be as follows: Balance in IPA Annual Management Fee p.a. Upto Rs. 50,000 2.5% 50,001-75,000 2% 75,001-1,00,000 1.75% Above 1,00,000 1.5% New Future Perfect What can this plan do for me? Life is not always picture perfect. It’s making the right choice from the various choices available that makes life perfect. The decisions you make now, when you are young, have an enduring effect, even after retirement. What you need is a flexible plan that allows you to override the unexpected wave that you may face in future, with ease, while still allowing you to make the most of the situation, financially. An ING Vysya Life Plan does just that by allowing you to choose how you want your post-retirement future to be with a tax-free investment plan based on your idea of risks versus returns. How does this plan work? T.Y.B.B.I (SEM-VI) 34
  • 35. The ING Vysya Life New Future Perfect Unit Linked Plan has been carefully put together to enable you get the maximum benefits from your investment plan. It not only provides you with flexibility in terms of premium amounts and frequency, but also offers you an investment opportunity that’s just perfect for your long-term financial future. The ING Vysya Life New Future Perfect Unit Linked Plan offers you flexibility in terms of how much you want to pay, how often you want to pay and the choice of investment pattern. After all, what you are looking for is not just life cover but something that covers all of what life has to offer. What are the features of this plan? The plan comes with its own three unique features:  Protect your Future: Even after retirement, you and your family are well provided and protected with continued life cover.  Survival Benefits: Apart from the regular yearly systematic withdrawal benefits starting from age 60 till 80, you will also receive maturity benefit at the age 80.  Manage your investments: You can choose from any of the five investment options - Debt, Secure, Balanced, Equity or Growth Fund, depending upon your appetite for risks and returns. Review the performance of your investments and switch between the plans or top up with additional funds. T.Y.B.B.I (SEM-VI) 35
  • 36. RIDERS What Are Riders? Riders are the optional contracts, which offer additional benefits for policyholders. They are always attached to a basic policy. They cannot be bought separately or independently of a basic policy. Each Rider will have its own premium rate and separate policy conditions. We offer the following Riders with our products: Term Rider This Rider amount is payable only on death during the application term. This amount will be in addition to the Sum Assured, under the basic policy to which this Rider is attached. However this benefit is not payable, in case of occurrence of death due to suicide, within one year of commencement of risk. Features Entry Age 18 years (last birth date) T.Y.B.B.I (SEM-VI) 36
  • 37. Last Premium Paying Age 65 years (last birth date) Premium Paying Term Same as base policy Payment Mode For individuals: yearly, half yearly, quarterly For group billing as a single cheque from a company: monthly facility availability Modal Factor Yearly: 10.86 Half yearly: 5.61 Quarterly: 2.895 Exclusion This Rider shall not cover death caused directly or indirectly due to suicide, while sane or insane, where such death occurs within one year of the Effective Date of the Rider. Maximum Cover Equal to the Sum Assured under the basic policy, subject to an overall maximum of Rs. 20,00,000/- Tax Benefit Rebate under Section 88 and maturity benefit under Section 10(10 D) T.Y.B.B.I (SEM-VI) 37
  • 38. Waiver of Premium Rider Waiver of Premium Rider under the basic policy and all other Riders - in case of total disability occurring due to sickness or accident. The total disability should last for at least 6 consecutive months. No disability covers during the first 6 months of the policy. Total Disability Resulting from accident or sickness and disability occurring within 180 days of the accident or sickness. The disability should last for at least 180 consecutive days. Applicable only when the disability completely and continuously prevents the life assured from engaging in any occupation to earn any wages. Features Entry Age 18 years (last birth date) Last Premium Paying Age 60 years (last birth date) Premium Paying Term Same as base policy Payment Mode For Individuals: Yearly, Half-yearly, Quarterly For group billing as a single cheque from a company: monthly facility availability T.Y.B.B.I (SEM-VI) 38
  • 39. Modal Factor Yearly: 10.86 Half yearly: 5.61 Quarterly: 2.895 Exclusions This Rider shall not cover any disability caused directly or indirectly by any of the following: 1. Intentional self-inflicted injury, suicide or attempted suicide, while sane or insane. 2. Life Assured being under the influence of alcohol, narcotics, psychotropic substances or drugs unless taken in accordance with the lawful directions and prescription of a qualified and registered medical practitioner. 3. War (declared or undeclared), war-like operations, invasion, civil commotion, riots or revolution. 4. Participation in any flying activity, except as a bonafide passenger in a commercially licensed aircraft. 5. Participation is a criminal or unlawful act. 6. Any injury sustained before the Effective Date of this Rider. Any physical/ medical condition not disclosed but found existing before the Effective date of this Rider. 7. Participation in hazardous sports, hobbies or pastimes including (but not limited to) racing, parachuting, mountaineering etc. T.Y.B.B.I (SEM-VI) 39
  • 40. 8. No premiums shall be waived if the sickness leading to disability occurs within 180 days after the Effective date of this Rider. 9. Atomic energy explosion or radiation of any kind. Tax Benefit Rebate under Section 88 and maturity benefit under Section 10(10 D) Employee Benefits - a definite advantage for both employers and employees. Most management follows an integrated method of arriving at compensation and benefit plans for their employees. Life insurance, health and pension benefits are viewed today as an important component of a company's remuneration structure. Organizations wanting to attract and retain employees have given these benefits a special place in their compensation structure. Traditionally, medical insurance was offered as a critical part of employee compensation. However, the new focus is to provide a comprehensive cover. It is now possible to provide this through Group Life and Critical Illness insurance in the most cost effective and efficient manner. Further, emerging demographics pose concerns of disability and living too long, making it necessary to address these issues during the earning years of life. To design, administer and manage compensation and benefit package to meet all such needs requires core competence and preparedness, which a life insurance company can provide. T.Y.B.B.I (SEM-VI) 40
  • 41. Group Gratuity Financial Protection. ING Vysya Life's Group Gratuity Plan is a special way to reward your employee's loyalty. Absence of a good gratuity funding mechanism can prove to be a financial strain if you have to pay out huge amounts in any year. Having a group gratuity plan enables you to meet your legal obligations of providing gratuity in a hassle free manner. It not only helps you build healthy corpus, but also offers additional insurance cover, to provide enhanced gratuity benefits in the event of unfortunate death of your employee. This can be done in a tax efficient and hassle free manner through this plan. The Flexibility You can decide the type of investment strategy to accumulate adequate corpus to provide for your employees gratuity benefits. For your convenience, we provide various investment options. You can invest in one or more of such plans. Investment options being, Liquid 100% of the available funds are invested in Provides for liquidity and T.Y.B.B.I (SEM-VI) 41
  • 42. plan short term(with in one year of maturity) debt and money market instruments safety Debt plan 100% of the available funds are invested in debt instruments (3 to 7 years) Provides safety and growth with minimum risk Secure plan Up to a maximum of 20% of the available funds are invested in equity and the rest in debt instruments Provides for growth with low risk Balanced plan Up to maximum of 40% of the available funds are invested in equity and the rest in debt instruments Provides for higher growth with reasonable security Growth plan Up to a maximum of 60% of the available funds are invested in equity and the rest in debt instruments Provides for opportunity of high growth You also have the flexibility to review investments periodically and switch investments from one plan to another. Two switches per policy year are offered free of cost. You have the advantage of additional insurance cover to provide full service gratuity in the event of an employees' unfortunate death before retirement. Lion Advantages For you • It is a hassle free process. Reduces administrative work, as we take care of it • Better returns of being part of the huge ING Vysya Life's investment portfolio • We offer actuarial help in assessing periodic liability to enable you to have proper funding plan T.Y.B.B.I (SEM-VI) 42
  • 43. • It provides additional insurance at a little extra cost, which will enhance benefits in case of unfortunate death of employee • An opportunity to design tax efficient employee benefits* with inputs from experts in various fields like HR, investments and actuaries • It helps build customized solutions to meet specific needs • It helps you in being a good corporate citizen *Income tax benefits: You can contribute upto 8.33% of annual wage bill and claim tax exemption for the same under Sec 36(1)V of Income Tax Act, 1961. Investment income on such investments are exempt from tax under Sec 10(25)iii of Income Tax Act, 1961. For your employees 1. Enhanced gratuity benefits by way of additional insurance cover in case of death before retirement - it means full gratuity even in case of early death. 2. Safety of the funds - being managed by experts 3. Periodic valuation of the Gratuity Fund by our actuaries to ensure adequate fund is available to pay benefits - a reassurance that fund is secure Specifications Minimum Entry Age 18 years Maximum Entry Age As per the Scheme rules Contributions and Premium Initial Contribution This Contribution is payable in respect of members who have to T.Y.B.B.I (SEM-VI) 43
  • 44. their credit, past service with the Employer. The contribution can be paid in lump sum or in annual installments not exceeding 5 years or as agreed between the Policyholder and the Company. Ordinary contributions This is the regular contribution payable each year to secure the gratuity benefits on account of future service. Premium This is the amount payable to secure the life cover. The life cover shall be as per the scheme rules and can either be flat cover or future service gratuity. The Initial and Ordinary Contributions will be expressed as a % of the salary bill and subject to limit of 8.33% of total salary including PF according to Income Tax Rules 87 and 88 (part XIII of IT Rules 1962). Contribution and premium frequency The Ordinary contribution and Premium are generally payable in advance. We may allow the contribution and Premium to be paid half yearly, quarterly or monthly. The Initial Contribution is payable in lump sum T.Y.B.B.I (SEM-VI) 44
  • 45. or in flexible installments as agreed by the company over a period not exceeding 5 years. Switches Two switches per policy year offered free of cost. Section 41 of the Insurance Act, 1938 states: 1. No person shall allow or offer to allow, either directly or indirectly, as an inducement to any person to take out or renew or continue an insurance in respect of any kind of risk relating to lives or property in India, any rebate of the whole or part of the commission payable or any rebate of the premium shown on the Policy, nor shall any person taking out or renewing or continuing a Policy accept any rebate, except such rebate as may be allowed in accordance with the published prospectuses or tables of the insurer. 2. Any person making default in complying with the provisions of this section shall be punishable with fine that may extend to five hundred rupees. Group SuperAnnuation Financial protection for your employees. ING Vysya Life's Group Superannuation Plan is a special way to safeguard your employees financial interests. It enables you to take care of your employees post retirement needs by providing timely and hassle free support. It helps you build healthy corpus to provide essential financial support for retiring employees, whom T.Y.B.B.I (SEM-VI) 45
  • 46. you wish to include in the group. This can be done in a tax efficient and hassle free manner through the plan. The Flexibility You can decide the type of investment strategy to accumulate adequate corpus to provide for your employee's retirement benefits. For your convenience, we provide various investment options. You can invest in one or more of such plans. Investment options being, Liquid plan 100% of the available funds are invested in short term(with in one year of maturity) debt and money market instruments Provides for liquidity and safety Debt plan 100% of the available funds are invested in debt instruments (3 to 7 years) Provides safety and growth with minimum risk Secure plan Up to a maximum of 20% of the available funds are invested in equity and the rest in debt instruments Provides for growth with low risk Balanced plan Up to a maximum of 40% of the available funds are invested in equity and the rest in debt instruments Provides for higher growth with reasonable security Growth plan Up to a maximum of 60% of the available funds are invested in equity and the rest in Provides for opportunity of high growth T.Y.B.B.I (SEM-VI) 46
  • 47. debt instruments You also have the flexibility to review investments periodically and switch investments from one plan to another. Two switches per policy year are offered free of cost. The Schemes Share Concern. Partner with your employees If you choose, you can make your employees partners in this plan by allowing them to voluntarily contribute to build higher retirement benefits. It helps them save taxes and invest their retirement savings to maximize returns by investing in debt and equity instruments without having to bother about investment management. T.Y.B.B.I (SEM-VI) 47
  • 48. Lion Advantages For you • It is a hassle free process. Reduces administrative work, as we take care of it • Better returns of being a part of the huge ING Vysya Life's investment portfolio • It is a one stop solution for fund management and annuity provision • An opportunity to design tax efficient employee benefits with inputs from experts in various fields like HR, investments and actuaries • It helps build customized solutions to meet specific needs • It gives convenient investment options, with a choice to review as and when you choose • It helps retain employees longer • It helps you be a good corporate citizen • It provides support in completing all legal formalities of setting up a superannuation plan For your employees • Long term income protection, which provides for regular income even after retirement • Provides different annuity options to suit individual needs • Once the annuity starts, the returns are guaranteed • Tax exemption under Section 88 of Income Tax Act, for employees' contribution T.Y.B.B.I (SEM-VI) 48
  • 49. Specifications Minimum Entry Age 18 years Maximum Entry Age As per scheme rules Contributions 1. Initial Contr****************************i bution This Contribution is payable in respect of members who have to their credit, past service with the Employer. The contribution can be paid in lump sum or in annual installments not exceeding 5 years or as agreed between the Policyholder and the Company. 2. Ordinary contributions This is the regular contribution payable each year to provide for pension. The Initial and Ordinary 3. Contributions will be expressed as a % of the salary bill and subject to limit of 27% of total salary including PF according to Income Tax Rules 87 and 88 (part XIII of IT Rules 1962). Contribution and frequency 1. The Ordinary contribution is generally payable annually in advance. We may T.Y.B.B.I (SEM-VI) 49
  • 50. allow the contribution to be paid half yearly, quarterly or monthly or at any time during the Policy year. 2. The Initial Contribution is payable in lump sum or in flexible installments as agreed by the company over a period not exceeding 5 years. Allocation Charges Maximum Allocation charges, varying by contribution type and policy year are as follows 1. Initial Contribution: 5% 2. First Year Ordinary Contribution: 5% 3. Renewal Year Contribution: 3% Allocation charges will be specified for each Policy. Switching Two switches per policy year offered free of cost. Section 41 of the Insurance Act, 1938 states: 1. No person shall allow or offer to allow, either directly or indirectly, as an inducement to any person to take out or renew or continue an insurance in respect of any kind of risk relating to lives or property in India, any rebate of T.Y.B.B.I (SEM-VI) 50
  • 51. 2. the whole or part of the commission payable or any rebate of the premium shown on the Policy, nor shall any person taking out or renewing or continuing a Policy accept any rebate, except such rebate as may be allowed in accordance with the published prospectuses or tables of the insurer. 3. Any person making default in complying with the provisions of this section shall be punishable with fine that may extend to five hundred rupees. T.Y.B.B.I (SEM-VI) 51
  • 52. FAQS 1. What is life insurance? Life insurance is a contract in which the insurer, in consideration of certain payment to be made to it (called the premium), either in a lump sum or in any other periodical payments, agrees to pay the assured, his nominee or any person for whose benefit the policy is taken, a stated sum of money on the happening of a particular event contingent on the duration of human life. 2. Why do you need life insurance? Uncertainty of death is inherent in human life. It is this risk, which gives rise to the necessity for some form of protection against the financial loss arising from death. Insurance attempts to alleviate this uncertainty by providing financial security should such an event happen and therefore provides for 1. family protection and/ or 2. provision for old age and/or 3. Investment options, depending on the nature of the insurance product. 3. What are the advantages of a life insurance policy? Life insurance plan is said to be superior to an ordinary savings plan. Unlike many other savings or investment plans, life insurance offers a combination of three benefits viz., income protection, savings and investment options, depending on the policy chosen. In the event of death, a life insurance policy offers the full sum assured, whereas other savings/ investment plans would T.Y.B.B.I (SEM-VI) 52
  • 53. make available only the accumulated savings with interests/ returns. Insurance encourages and forces thrift: A savings deposit can be too easily withdrawn. Many may not be able to resist the temptation of using the balance for some less worthy purpose. On the other hand the payment of life insurance premiums becomes a habit and comes to be viewed with the same seriousness as the payment of interest on a mortgage. Thus, insurance in effect brings about compulsory savings. Ready marketability and suitability for quick borrowing: After the specified initial period, if the policyholder finds himself unable to continue payment of premiums he can surrender the policy for a cash sum, alternatively, he can tide over a temporary difficulty by taking a loan on the sole security of the policy without delay. Further, a life insurance policy is sometimes accepted as a security for a commercial loan. Tax relief: Subject to certain limits and conditions prescribed by the Income Tax Act, 1961 (the “Income Tax Act”), a life insurance plan offers tax benefits in the form of deductions from income/ rebate on income tax and also exempt from tax the amounts received under a life insurance policy. When the tax relief is taken into account it will be found that the assured is in effect paying a lower premium for his insurance. T.Y.B.B.I (SEM-VI) 53
  • 54. 4. How much insurance cover do you need? Answer to this question depends on various factors including (i) the reasons for seeking insurance viz., as an income-protection, savings or investment tool, (ii) income sources and amounts other than salary/earnings; (iii) whether or not the individual is married and, if so, what is the spouse earning capacity; (iv) the number of individuals who are financially dependent on the life to be insured; (v) benefits to accrue from an employer-sponsored life insurance plan if available; (vi) whether any special life insurance needs exist (e.g., mortgage repayment, education fund, estate planning need); (vii) whether the life to be insured has any other old-age or super-annuation benefits etc. Rough estimates suggest an amount of life insurance equal to four to five times of ones annual earnings. 5. When does the coverage on the policy begin? Coverage under a life insurance policy begins once the proposal made to the life insurance company is accepted and communicated and the person making the proposal has paid the first premium. Most companies provide some temporary conditional coverage during the application process assuming certain conditions are met. This temporary coverage is limited in time and amount. The availability, amount and conditions are described in the application and vary from company to company. If you are replacing existing coverage, you should never drop your existing coverage until your new policy has been approved, and your first premium has been paid. T.Y.B.B.I (SEM-VI) 54
  • 55. 6. When could a person cover the lives of spouse and children? There is no single guidance or rule for this. Initially, life insurance for appropriate amounts should be effected on the family breadwinner(s). It is of utmost importance that the income earning capacity of the primary breadwinner be fully protected, if possible, through the purchase of the required amount of life insurance before contemplating the purchase of life insurance on children or on a non-wage earning spouse. In a dual-earning household, it is important to protect the income earning capacity of both spouses. Life insurance on a non- wage earning spouse is often recommended for the purpose of paying for household services lost at this individuals death. 7. What is premium? Premium is the consideration (price) payable periodically to the life insurance company for the risk undertaken by it under the insurance policy 8. Who is a proposer? The person who proposes to enter into a contract of insurance with a life insurance company to insure himself or another life on whose life he has insurable interest 9. Who is a life insured? The person whose life is covered under the contract of insurance. T.Y.B.B.I (SEM-VI) 55
  • 56. 10.What is a claim? Demand presented for payment of the benefit due under the terms of an insurance policy . 11.What is lapse of policy? The termination of policy caused by the policyholders failure to pay the premiums within the stipulated period. 12.What is maturity date? The date on which the policy comes to on end and on which the survival benefits are payable. 13.What is maturity value? The amount payable under a life insurance policy on its maturity date. 14.What is a life insurance policy? A written document issued by a life insurance company to a policyholder, which expresses the insurance contract between the company and the policyholder. 15.Who is a policyholder? A person that has entered into a contract of insurance with the insurance company. T.Y.B.B.I (SEM-VI) 56
  • 57. 16.Can you have more than one insurance policy? Why would you need multiple policies? Yes. When one is purchasing an insurance policy to cover the entire risk, it might be prudent to break the policy into smaller units. Though this increases the cost of insurance, as the discount in premium for larger sum assured may not be available, the benefit may offset this cost. Having multiple policies allows you to discontinue some policies while continuing the others, in case there is a financial crisis because of which you suddenly find yourself in a tight spot. After the financial crisis is over, you may reactivate the other discontinued policies, subject to the terms of those policies. 17.Are moneys payable under a life insurance policy free from attachment? Section 60(1)(kb) of the Code of Civil Procedure, 1908 states that all moneys payable under a policy of insurance on the life of the judgment debtor will be free from attachment. This places an assigned policy outside the reach of the creditors. 18.What is underwriting? Underwriting is the process through which a life insurance company takes a decision whether to accept the risk and if so at what rate of premium, after considering relevant facts disclosed to it. 19.What is group insurance policy? An insurance policy that provides coverage for a number of people under one contract, called a master contract. In a Group insurance policy, the policy holder is usually the employer who contributes premium which is a certain percentage T.Y.B.B.I (SEM-VI) 57
  • 58. of the salary of the employees in the Employers organization. However, the employees are the beneficiary in such Group insurance policies. In general, in a group insurance policy the insurance company ordinarily –cannot turn down any applicant that is a member of the defined group. 20.What are “with profit” policies? Policies, where the policyholders receive bonuses, upon the insurance company generating surplus and declaring them to the policyholder. Only a "with profit" policy is eligible to bonus. The bonus that may be receivable may vary year to year according to the surplus generated by the insurance company. ‘With profit’ policies are more popular because of the possibility of getting increasing bonus every year even though the premium payable is higher than the premium paid in ‘without profit’ policies. 21.What is a paid up policy? Once the premium on a life insurance policy for a specified period is paid in full, the policy may not lapse even if no subsequent premiums are paid. Such policies are known as paid-up policies. In such cases, the sum originally assured is reduced to a sum bearing the same ratio to the sum originally assured as the number of premiums actually paid to total number of premiums originally stipulated as payable under the policy. By way of example, if 6 out of the originally stipulated 30 premiums are paid, the sum assured under a paid-up policy could still be 20 percent of the original sum assured by the policy. T.Y.B.B.I (SEM-VI) 58
  • 59. 22.What is a material fact? A fact that would influence the judgment of a prudent insurer in deciding whether to insure a particular risk, or the terms on which to insure it would be considered material. Generally, all information required in the proposal form are considered material and a non-disclosure or misrepresentation in relation to such information sought could give rise to a right in favour of the insurance company to repudiate the claim. 23.What is reinsurance? The practice of insurance companies insuring the risk insured by them is called reinsurance. 24.What is nomination? Nomination is a right conferred on the holder of the policy of life insurance on his own life to appoint a person or persons to receive the policy moneys in the event of the policy becoming a claim by death. 25.Who is a nominee? The person designated by the policyholder to receive the proceeds of an insurance policy, upon the death of the insured. 26.Who can nominate? Any policyholder, who is a major and the life insured under a policy can make a Nomination. Nomination is not effective in a policy taken on the life of another person. T.Y.B.B.I (SEM-VI) 59
  • 60. 27.When can nomination be done? Nomination can be done at the inception of the policy itself. All that a policyholder has to do is to provide the details of the nominee in the proposal form. If a nomination was not done at the time of filing the proposal, it can be done at a later date either by an endorsement made at the back of the policy document or by making the endorsement of nomination on a piece of paper pasted on the policy. 28.How can nomination be changed? Subject to the provisions contained in Section 39 of the Insurance Act, 1938, there are no restrictions on the policyholder regarding changing his nomination at any point of time, any number of times. The life-assured is free to change or cancel a nomination and make a fresh nomination any number of times during the currency of the policy. Transfer or assignment of a policy (except when it is made to an insurer in specified cases) automatically cancels a nomination. 29.What is successive nomination? Successive nomination means that money should be paid to nominee A; failing him, to nominee B; failing whom, to nominee C, etc. Such a nomination is treated in favour of one individual in the order mentioned and is acceptable in law. 30.What are the details to be provided about the nominee(s)? The following precautions are necessary at the time of filling in the proposal: Mention the Full Name, Address, age, relationship to yourself of the nominee. T.Y.B.B.I (SEM-VI) 60
  • 61. 31.What is transfer or assignment of a life insurance policy? Transfer or Assignment is a method of transferring ones transferable interest in a life insurance policy to another person or institution including as security for repayment of loans. 32.What is the difference between nomination and assignment? While the nomination is an authorization to receive the policy moneys in the event of the death of the life assured, it does not give the nominee an absolute right over the money received to the exclusion of other legal heirs. Further, the Nomination can be revoked or cancelled at any time during the lifetime of the policyholder at his will and pleasure or by a subsequent assignment. On the other hand, assignment of an insurance policy is a transfer or assignment of all rights and liabilities to the insurance policy in favour of the assignee. 33.How to make an assignment or transfer of a life insurance policy? Assignment or transfer of a life insurance policy may be made by simply making an endorsement to that effect in the policy document. Another way of transferring or assigning the life insurance policy is by getting a separate assignment deed executed. The former case is a preferred mode of assignment as it is exempt from further stamp duty. An assignment should be signed by the Assignor or his duly authorised agent specifically stating the fact of transfer or assignment and attested by at least one witness. T.Y.B.B.I (SEM-VI) 61
  • 62. 34.What are the advantages of raising loans on an insurance policy? One of the advantages of a life insurance policy is the facility of loan that it offers in times of need. At a time when there is a dire necessity and no other funds are available, it is best to go in for loan on your life insurance policy. However, most policies stipulate a limit as to the amount that could be taken on loan. Generally the limit is 90 percent of the available cash surrender value on the policy. It is much easier and a more economical source of borrowing. And above all, it does not hurt your self-esteem. It is after all your own money that your are withdrawing 35.What are the tax benefits on purchasing policies? Subject to certain limits and conditions prescribed by the Income Tax Act, premiums paid to effect or to keep in force an insurance policy on the life of the assesses or on the life of the wife or husband or any child (whether minor or major) of the assessed irrespective of the status of the child, enjoys tax rebate under section 88 of the income tax act. In the case of contribution to pension funds, deduction is available under Section 80CCC of the Income Tax Act 36.Does a beneficiary on receipt of death benefits or when an individual receives maturity benefits pay taxes? Section 10(10D) of the Income-tax Act, 1961, provides total exemption on any sum received under a life insurance policy, including the sum allocated by way of bonus on such policy, other than any sum received under Sub-section (3) of Section 80 DD or sub-section (3) of Section 80DDA, any sum received under a Keyman Insurance Policy, or under a policy issued in respect of which the T.Y.B.B.I (SEM-VI) 62
  • 63. premium payable for any of the years during the term of the policy exceeds 20% of the actual capital sum insured. 37.What does Add-on Benefits or Riders mean? The additional benefits, over and above the benefits available under the insurance policy that a policyholder may be entitled to at an extra cost are called Add - on Benefits or Riders. One could opt for any one or more of the benefits at a little extra cost. This additional protection for your loved ones ensures that you receive a sum additional to the assured sum in case of any untoward event in your life. 38.When are the benefits of the Life Insurance plan withheld? Suicide: No benefits will be payable if death occurs due to suicide, within a specified period from the date of commencement of risk. In addition benefits under a life insurance policy may not be granted if the insurer has the right to repudiate the claim 39.What is Survival Benefit? Survival benefit is a benefit payable on survival of the life assured to a particular pre-defined point of time in the insurance contract. For example, in the Money-Back Policy, the life assured is paid a certain percentage of the sum assured every few years. This survival benefit is payable only when the life assured is alive. It does not matter if the life assured is suffering from any illness or not. However, if the life assured dies, the benefit payable is Death Benefit and not survival benefit. T.Y.B.B.I (SEM-VI) 63
  • 64. 40.What is the Death Benefit? In the event of death during the plan term, your family would receive the full sum assured. 41.What is Accidental Death Benefit? This benefit is an ‘Add-on’ (Rider) benefit. When you opt for this benefit, the amount payable in the unfortunate event of death due to accident, would be substantially higher than the basic sum assured that may be payable in the case of a policy that merely provides for death benefit. As an illustration, if a person Mr. A has opted for Accidental Death Benefit along with the basic cover on life dies in an accident, then his nominee would be paid an extra benefit called the ‘Accidental Death Benefit’ which is additional to the benefit receivable under the basic policy 42.What is Accidental Death, Disability and Dismemberment Benefit? If you want more than regular accident death protection, you can choose this add-on benefit. A helping hand for the family, the assured sum would be paid to you or to your beneficiary in the event of your death, disability or dismemberment due to an accident. The percentage of the sum assured you receive would depend on the extent of disability. This amount would be over and above the basic assured sum. For instance, If Mr. A has opted for the ‘Accidental Death, Disability and Dismemberment Benefit’ then the life assured will receive a certain percentage of the rider benefit if the life assured has suffered on his earning capacity by loss of his limb, sight, hearing capacity, speech, etc due to an accident. While the regular accident T.Y.B.B.I (SEM-VI) 64
  • 65. 43.death protection rider provides the assured certain increased sum after death, it does not provide any benefit if the life assured survives an accident but suffers from dismemberment or disability due to the accident. The rider in “Accidental Death Disability and Dismemberment” covers situations, in addition to covering Accidental Death, where the life assured survives an accident but suffers from disability and/or dismemberment. 44.What is Waiver of Premiums benefit? In the unfortunate case that you become totally disabled, thisadd on benefit waives off all future premiums both on the basic cover and on all add-on benefits during the disability period. All benefits of the original insurance plan would remain valid until maturity, without your being required to continue to pay the premiums for the base policy or the Add-ons. 45.What is term Benefit? For a small additional premium, the amount received on death would be higher. The additional sum assured could be upto the amount assured by the basic plan. 46.What does Accidental disability mean ? A person who has opted for the ‘add-on’ benefit called ‘Accidental Death, Disability and Dismemberment Benefit’, suffers from ‘Total and Permanent Disability’ due to an accident, then he eligible for certain benefits under the rider. A person would be said to be suffering from ‘Total and Permanent Disability’ when the disability results from bodily injury caused by accident within 180 days of the accident. Further the disability prevents the life assured T.Y.B.B.I (SEM-VI) 65
  • 66. from engaging in any work continuously, completely and permanently. Depending on the extent of disability, the life assured will receive a certain percentage of the sum assured under this Rider. T.Y.B.B.I (SEM-VI) 66
  • 67. SHRI CHINAI COLLEGE OF COMMERCE & ECONOMICS Questionnaire for Survey of Ing Vysya Life Insurance NAME:- DESIGNATION: - CONTACT NO.:- 1. Are You Aware Of Insurance? Yes No 2. Do You Have Life Insurance Plan Of Any Company? If Yes Than Which Co. _______________________________ Reason: - ________________________________________ 3. Did you benefit yourself from this policy? Yes No 4. Do You Have Any Ing Vysya Life Insurance Plan? Yes No Reason: - _________________________________________ 5. Which Type Of Policy You Have Taken? Reason: - ____________________________________ 6. At What Age You Have Taken Insurance Policy? __________________________________________________ 7. Give Your Comments On Ing Vysya Life Insurance? ____________________________________________________ Project Guide: - Prepared By:- PROF.NISHIKANT JHA Mohd Yunus Shaikh T.Y.B.B.I (SEM-VI) 67
  • 68. Survey report ING VSYA’S position in life insurance business 78% 18% 4% LIC other companies ing vysya As per the findings:-  Majority of people have policies of LIC. The reason why people have taken policies of LIC is that it is a government company and it is very old, therefore people have trust in it.  18% of people are covered by policies of other companies.  4% of people have policies of ING VYSYA. T.Y.B.B.I (SEM-VI) 68
  • 69. Question’s asked to the sales manager ROY. 1. Where is the head office? Bangalore. 2. How many branches? At present we have three branches in Mumbai. By December 2007 more 10 branches will come up. 3. How many agents do you have? 500. 4. Which are the best selling policies? All are best. 5. Why a person should go for ING VYSYA? Its world’s largest conglomerate. 6. You concentrate mostly on which age group? Younger generation’ 7. What are the marketing strategies used? From 1st February advertisement are going to roll in 60 channels throughout the country. T.Y.B.B.I (SEM-VI) 69
  • 70. CONCLUSION After completing this project, it can be concluded that even though LIC is the major player of life insurance in Indian market, which has not only gained market share but also got strong public confidence. However ING VYSYA is a good company which gives better returns but still as they do not promote their product their market share is 0.55%. If they promote their company and product they can certainly have a good growth in future. T.Y.B.B.I (SEM-VI) 70
  • 71. METHODOLOGY VISITED AT: - ING VYSYA LIFE INSURANCE CHAKALA BRANCH, OPP TO WESTERN EXPRESS HIGHWAY ANDHERI (E) MUM: 69. INFORMATION PROVIDED BY: SALES MANAGER ROY. T.Y.B.B.I (SEM-VI) 71
  • 72. BIBLIOGRAPHY WEBSITES OF  WWW.INGVYSYALIFE.COM  WWW.GOOGLE.COM BOOKS REFERRED IC-33 ISSUED BY IRDA T.Y.B.B.I (SEM-VI) 72
  • 73. T.Y.B.B.I (SEM-VI) 73