Endowment Policy SSR


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This presentation is all about Endowment Policy, its type and comparison of endowment policy among various players and best player......:) :)

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Endowment Policy SSR

  1. 1. Presented To:– Prof. Uttam Kumar12/17/2012 Endowment Policy 1
  2. 2. Presented By:- Sudhir Singh Pooja Singh Rajput Nitin Avinash Abhay Saurabh Mishra Azad Tripathi12/17/2012 Endowment Policy 2
  3. 3. What is Endowment Policy? Type of life insurance policy which is designed to pay a lump sum after a specified term (on its maturity) or on death. Typical maturities are 10, 15 or 20 years up to a certain age limit. Policies are typically traditional with- profits or unit-linked Endowment plans are priced a little higher than term plans because of maturity benefits.12/17/2012 Endowment Policy 3
  4. 4. Cont… Additional Bonuses:- Generally, Endowment plans have two types of bonuses: Reversionary bonus:- Also called regular bonus, this is annual bonus which depends on the performance of the insurer and is added to the fund every year payable at the end of policy period. Terminal bonus:- An additional loyalty bonus offered by the insurer at the end of policy term Tax Benefits:- Under Section 80C you can avail tax benefit, yearly premium (not more than 1lac) will be deducted from taxable income. Under Section 10(10D) death claim is completely tax free.12/17/2012 Endowment Policy 4
  5. 5. Cont… The Good:- Endowment plans have both death and survival benefits. The bonuses accumulate over time to give good maturity lump sum The Bad:- Endowment plans are priced higher than term plans. Policybazaar Judgment on Endowment Plans:- Endowment plans is for people looking for survival benefits along with death benefit. Though priced higher, it is worth it to buy endowment plans since its no profit no loss equation as premiums paid are returned in form of survival benefits. And you get insurance life cover which is important thing to have12/17/2012 Endowment Policy 5
  6. 6. Type of Endowment Policy  Traditional With Profits Endowments  Unit-linked endowment  Traded endowments  Full endowments  Low cost endowment (LCE)12/17/2012 Endowment Policy 6
  7. 7. Cont… Traditional With Profits Endowments:- There is an amount guaranteed to be paid out called the sum assured and this can be increased on the basis of investment performance through the addition of periodic (for example annual) bonuses. Regular bonuses are guaranteed at maturity and a further non-guarante bonus may be paid at the end known as a terminal bonus. Unit-linked endowment:- Unit-linked endowments are investments where the premium is invested in units of a unitised insurance fund. Units are encashed to cover the cost of the life assurance. Policyholders can often choose which funds their premiums are invested in and in what proportion. Unit prices are published on a regular basis and the encashment value of the policy is the current value of the units.12/17/2012 Endowment Policy 7
  8. 8. Cont… Traded endowments:- Traded endowment policies (TEPs) or second hand endowment policies (SHEPs) are traditional with-profits endowments that have been sold to a new owner part way through their term. The TEP market enables buyers (investors) to buy unwanted endowment policies for more than the surrender value offered by the insurance company. When a policy is sold, all beneficial rights on the policy are transferred to the new owner.12/17/2012 Endowment Policy 8
  9. 9. Cont… Full endowments:- A full endowment is a with- profits endowment where the basic sum assured is equal to the death benefit at start of policy and, assuming growth, the final payout would be much higher than the sum assured. Low cost endowment (LCE):- A low cost endowment is a combination of an endowment where an estimated future growth rate will meet a target amount and a decreasing life insurance element to ensure that the target amount will be paid out as a minimum if death occurs.12/17/2012 Endowment Policy 9
  10. 10. Endowment Assurance Overview, Benefits and Suggestion LIC India Jeevan Anand Plan Table - 14912/17/2012 Endowment Policy 10
  11. 11. Endowment Assurance and Whole Life plansFeatures Jeevan Anand Plan : Table 149 JPlan Type Regular E ECategory For Whole Life And Good Returns VGuarantee Yes + Bonus AInsurance Cover Maturity at 75 NDeath Benefit The Sum Assured along with the vested bonuses is payable on death in a lump sum. AGuaranteed Surrender The policy may be surrendered after it has been in force for 3 years or more. NValue he guaranteed surrender value is 30% of the basic premiums paid excluding the first A year’s premium. Any extra premium(s) paid and premium(s) towards Accident Benefit are also excluded. N DPremium Waiver Option NoAuto Cover No TRevival of Policy No ALoan On the Policy Yes B LAccident Benefit An additional Sum Assured (subject to a limit of Rs.5 lakh) is payable in a lump sum on E death due to accident up to age 70 of life assured. In case of permanent disability of the life assured due to accident this additional Sum assured is payable in installments. 1Rebate on the premium Depending on the amount of the sum assured chosen and the plan duration 4 9 12/17/2012 Endowment Policy 11
  12. 12. Endowment Assurance and Whole Life plansBenefits Jeevan Anand Plan : Table 149 JMin & Max Entry Age 18 years , 65 years E EMin & Max Policy Term 5 to 57 years VMin & Max Maturity Age 75 years is the Maximum Maturity Age AMin & Max Sum Assured Rs 100000.00 Min, No Limit for Max NPremium Paying Term Pay till the Premium Paying term for the Endowment Term. For Whole life the Policy A Covers till age 70. NLoan Availability Yes ASurvival Benefit The policyholder will receive the sum assured and all the accumulated bonuses. A final N additional bonus, if any, may also be paid out. In such a case, the risk cover for the D policyholder continues till death, on which an amount equal to the sum assured will be paid out further. However, there will be no bonus component attached to the T payout on death after the premium paying term has ended. ARebates in Premium 2% if paid Yearly, 1% if Paid Half Yearly BSuicide Clause No Suicide Clause L EAccident Benefit Rider The plan also incorporates an accident benefit rider. However, the cap on the amount is Rs 5 lakh. The premium for the rider is built in to the basic plan itself. The amount under the rider will be paid if the policyholder dies in an accident. This payout is over 1 and above the basic sum assured. The maximum age at which this rider ceases is 70. 4 Should the policyholder suffer permanent disability because of an accident, the sum 9 assured under this rider will be paid out in installments. 12/17/2012 Endowment Policy 12
  13. 13. Endowment Assurance and Whole Life plans RecommendationShould I Take This YES. Go for this plan. No other Company (Insurance Provider) hasPlan? this type of product. This is an Endowment plan with Whole Life. Do not get tempted with the ULIP Plans which talk about high returns. This plan ( Jeevan Anand) is the BEST, and highly Recommended plan. Yes, the Premium is little bit more compared to other plans.Is this plan This Plan has got double offer, and secures till age 70. This hasCostlier Compared Endowment and Whole Life. Only Whole Life plan which paysto others? money. Compare to traditional Term Life, no plan gives money. 12/17/2012 Endowment Policy 13
  14. 14. TATA AIG Life Insurance A new unit-linked endowment insurance plan called Gyan Kosh - to secure their children’s education, important milestones of life like marriage, and provide funds for setting up a business. Assure Educare - Assure Educare is an endowment policy designed to give the child the education he or she wants. Two plans:- Educare 18 Educare 2112/17/2012 Endowment Policy 14
  15. 15. Cont… Survival benefits:-This plan guarantees payment of 10 percent of the sum assured at maturity or on death . Bonus:- Revisionary and Terminal bonuses is offered by the company. Riders:- The Payer Benefit Rider waives off all future payments for this policy in the event of the unfortunate death of the parent. Tax Benefits:- Premiums paid for this policy are eligible for tax returns as per current Income Tax rules.12/17/2012 Endowment Policy 15
  16. 16. Cont… Assure Security and Growth Plan:- This is an Endowment policy that aims at giving you safety and returns. Eligibility:- The duration of the policy can be 10, 20 or 30 years. Whats Special? So in case of death, your dependants get the sum assured.12/17/2012 Endowment Policy 16
  17. 17. Cont… And what are the extras? A guaranteed 10 per cent bonus after the 10th policy anniversary. Reversionary bonus projected at an annual 5 per cent . And a Terminal bonus paid on maturity or death Tax Benefits, Riders:- Premiums paid are eligible for tax benefits under Section 88. And you can attach Term, Accident and Disability riders to this policy for added protection.12/17/2012 Endowment Policy 17
  18. 18. AVIVA Life Insurance Life Saver (Flexible Endowment savings Plan) Lifesaver is a unitized fixed term, protection cum savings plan. Lifesaver can be purchased on any life between 18 to 65 years . The minimum premium is Rs.3,500 for yearly, Rs.2,000 for half-yearly, Rs.1,000 for quarterly and Rs.350 for monthly frequency of premium payment.12/17/2012 Endowment Policy 18
  19. 19. Cont… Additional Single Premiums:- Lifesaver also offers you the flexibility of making lump sum investments through additional single premiums. Riders:- Accidental Death & Dismemberment (AD&D) Critical Illness & Permanent Total Disability (CI&PTD) Rider cover expires at 60 years of age.12/17/2012 Endowment Policy 19
  20. 20. Cont…What do I get on maturity? Upon survival, at maturity the policy value is paid to you. The policy will become paid-up with zero sum insured and you may avail the policy value as and when required.12/17/2012 Endowment Policy 20
  21. 21. Kotak Life Insurance Kotak Life Endowment Insurance Plan is a Traditional Participating Endowment. How it works In this plan, premiums are paid for the Premium Paying Term as selected at the beginning of the Policy Term. The premiums, after deduction of charges, are deposited in the Accumulation Account along with Bonus at the end of each year12/17/2012 Endowment Policy 21
  22. 22. Kotak Endowment Insurance Policy (In years) Minimum Maximum Policy Term 10 30 Premium Payment Term 3,5,7,10 and 15 Entry Age of Life Insured 18 65 Age at Maturity - 75 Regular Premium(in Rs. ) 4000 No Limit Payment modes Yearly, Half-Yearly, Quarterly and Monthly 12/17/2012 Endowment Policy 22
  23. 23. Birla Sun Life Insurance Policy Term:- 10, 15, 20, 25 and 30 years Savings Date:- Same as policy term Entry Age:- 1 year to 65 years, subject to minimum age of 18 on Savings Date. Basic Premium:- Minimum Rs. 25,000 p.a. if paid annually Minimum Rs. 30,000 p.a. if paid monthly quarterly or semi-annually12/17/2012 Endowment Policy 23
  24. 24. Cont… Pay Term:- Short pay – 5, 10, 15, 20 years |To Savings Date Top-up Premium:- Minimum Rs. 5,000 Premium Payment Option:- Monthly, Quarterly, Semi-annually or Annually Enhanced Sum Assured:- Minimum Rs. 50,000 Entry Age 18 to 65 years, subject to maximum age of 75 on Savings Date.12/17/2012 Endowment Policy 24
  25. 25. 12/17/2012 Endowment Policy 25