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TYPES OF LIFE INSURANCE POLICIES IN INDIA

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Helps customer find the best policy according to their suitable needs
Features,pros,cons and suitability of various policies are given :-

1. Term Policy
2. Whole Life Policy
3. Unit Linked Insurance Policy (ULIP)
4. Money Back Policy
5. Endowment Policy

Published in: Economy & Finance
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TYPES OF LIFE INSURANCE POLICIES IN INDIA

  1. 1. LIFE INSURANCE POLICIES IN INDIA 1
  2. 2. INTRODUCTION Insurance is a contract in which an individual or entity receives financial protection or reimbursement against losses from an insurance company. SOURCE : INVESTOPEDIA 2
  3. 3. MEANING • Life insurance is a contract between an insured (insurance policy holder) and an insurer or assurer, where the insurer promises to pay a designated beneficiary a sum of money in exchange for a premium, upon the death of the insured person. • Depending on the contract, other events such as terminal illness or critical illness can also be the reason for the payment. • The policy holder typically pays a premium, either regularly or as one lump sum. Other expenses (such as funeral expenses) can also be included in the benefits. SOURCE : WIKIPEDIA DREAMSTIME.COM 3
  4. 4. TYPES OF LIFE INSURANCE POLICIES INSURANCE POLICIES PURE INSURANCE TERM PLANS INSURANCE CUM INVESTMENT POLICIES WHOLE LIFE PLANS UNIT LINKED INSURANCE MONEY BACK ENDOWMENT PLANS SOURCE : WWW.WEALTHWISHER.COM 4
  5. 5. TYPES OF LIFE INSURANCE POLICIES SOURCE : WWW.WEALTHWISHER.COM 5 INSURANCE POLICIES PURE INSURANCE TERM PLANS INSURANCE CUM INVESTMENT POLICIES WHOLE LIFE PLANS UNIT LINKED INSURANCE MONEY BACK ENDOWMENT PLANS
  6. 6. TERM POLICY FEATURES • Covers Amount of protection against death of an Individual for a given period. • Insurance amount is to be paid to the Nominees in case of death • LOW COST - Cheapest Form of Life Insurance • CONVERTIBILTY - From Original Term Insurance Policy to Whole Life Term etc. • CHANGES IN PREMIUM – It may either increase or decrease based on period of the policy, age etc SOURCE : STREETDIRECTORY.COM 6 FEATURES Protection against death Insurance amount to be paid Low costConvertibility Changes in premium INSURAN CE POLICIES PURE INSURAN CE TERM PLANS INSURAN CE CUM INVESTM ENT POLICIES WHOLE LIFE PLANS UNIT LINKED INSURAN CE MONEY BACK ENDOW MENT PLANS
  7. 7. TERM POLICY PROS / ADVANTAGES • High amount of coverage at low premium • DEATH BENEFIT – Payable to the beneficiary when the annuitant passes away. • TAX BENEFIT - any payment made by a tax payer on account of Term Insurance Policy will be allowed deduction as per section 80C of the Income-tax Act, 1961 with enhanced tax deduction up to Rs 1,50,000. • RENEWABILTY – Once the policy is expired , it can be renewed with same premium and rates SOURCE : STREETDIRECTORY.COM MONEYCONTROL MYINSURANCECLUB.COM 7 PROS HIGH COVERAGE DEATH BENEFIT TAX BENEFIT RENEWABILITY INSURAN CE POLICIES PURE INSURAN CE TERM PLANS INSURAN CE CUM INVESTM ENT POLICIES WHOLE LIFE PLANS UNIT LINKED INSURAN CE MONEY BACK ENDOW MENT PLANS
  8. 8. TERM POLICY CONS / DISADVANTAGES • LIMITED TO CONVERSION PERIOD - The conversion options for a number of term life polices expire prior to the term period’s midpoint. • PURE INSURANCE ,NO INVESTMENT- In term insurance policy if policy holder survive to the maturity date no amount is payable( premium paid is not returned back) • NO SURRENDER VALUE SOURCE : WAHM.COM SELECTQUOTE.COM 8 CONS PURE INSURANCE , NO INVESTMENT LIMITED TO CONVERSION PERIOD INSURAN CE POLICIES PURE INSURAN CE TERM PLANS INSURAN CE CUM INVESTM ENT POLICIES WHOLE LIFE PLANS UNIT LINKED INSURAN CE MONEY BACK ENDOW MENT PLANS NO SURRENDER VALUE
  9. 9. TERM POLICY PROS / CONS COMPARITIVE STUDY PROS CONS 9 INSURAN CE POLICIES PURE INSURAN CE TERM PLANS INSURAN CE CUM INVESTM ENT POLICIES WHOLE LIFE PLANS UNIT LINKED INSURAN CE MONEY BACK ENDOW MENT PLANS
  10. 10. TERM POLICY SUITABILITY • SUITED FOR INVESTORS WITH SHORT TERM LIFE INSURANCE NEEDS (10YRS OR LESS) LIKE 1. Who cannot afford high premium 2. Students who want to take education loan and bank require coverage 3. Housing Loan 4. Suitable for investors who want to demarcate between risk coverage and investment options SOURCE : EDWARDJONES.COM 10 INSURAN CE POLICIES PURE INSURAN CE TERM PLANS INSURAN CE CUM INVESTM ENT POLICIES WHOLE LIFE PLANS UNIT LINKED INSURAN CE MONEY BACK ENDOW MENT PLANS
  11. 11. 11 FEATURES PROS CONS SUITABILITY • Covers Amount of protection against death of an Individual for a given period. • Insurance amount is to be paid to the Nominees incase of death • LOW COST - Cheapest Form of Life Insurance • CONVERTIBILTY - From Original Term Insurance Policy to Whole Life Term etc. • CHANGES IN PREMIUM – It may either increase or decrease based on period of the police, age etc • High amount of coverage at low premium • DEATH BENEFIT – Payable to the beneficiary when the annuitant passes away. • TAX BENEFIT - any payment made by a tax payer on account of Term Insurance Policy will be allowed deduction as per section 80C of the Income-tax Act, 1961 with enhanced tax deduction up to Rs 1,50,000. • RENEWABILTY – Once the policy is expired , it can be renewed with same premium and rates • LIMITED TO CONVERSION PERIOD - The conversion options for a number of term life polices expire prior to the term period’s midpoint. • PURE INSURANCE , NO INVESTEMENT - In term insurance policy if policy holder survive to the maturity date no amount is payable( premium paid is not returned back) •NO SURRENDER VALUE • Suited for investors with short term life insurance needs (10YRS OR LESS) like 1.Who cannot afford high premium 2. Students who want to take education loan and bank acquires coverage 3.Housing Loan – life cover equal to value of the loan 4. Suitable for investors who want to demarcate between risk coverage and investment options SUMMARY OF TERM POLICY INSURAN CE POLICIES PURE INSURAN CE TERM PLANS INSURAN CE CUM INVESTM ENT POLICIES WHOLE LIFE PLANS UNIT LINKED INSURAN CE MONEY BACK ENDOW MENT PLANS
  12. 12. TYPES OF LIFE INSURANCE POLICIES SOURCE : WEALTHWISHER 12 INSURANCE POLICIES PURE INSURANCE TERM PLANS INSURANCE CUM INVESTMENT POLICIES WHOLE LIFE PLANS UNIT LINKED INSURANCE MONEY BACK ENDOWMENT PLANS
  13. 13. WHOLE LIFE POLICY FEATURES • These plans provide cover throughout whole life. • Policyholder has an option to pay premiums upto certain age ,generally 80-100 yrs of age (Maturity Age) • Premium remains constant during the entire term of the policy. SOURCE : THEWEALTHWISHER 13 INSURANC E POLICIES PURE INSURANC E TERM PLANS INSURANC E CUM INVESTME NT POLICIES WHOLE LIFE PLANS UNIT LINKED INSURANC E MONEY BACK ENDOWM ENT PLANS FEATURES COVER THROUGHOUT WHOLE LIFE MATURITY AGE PREMIUM REMAIN CONSTANT
  14. 14. WHOLE LIFE POLICY PROS / ADVANTAGE • DEATH BENEFIT - In case of death of the Life Insured, the nominee would get the Sum Assured + accrued Bonus. • MATURITY BENEFIT - There is an option to withdraw the Sum Assured + accrued bonuses declared under the policy anytime after 40 years from the date of commencement of the policy provided the life insured has attained a minimum age of 80 years.( No specific maturity date) • INCOME TAX BENEFIT-any payment made by a tax payer on account of Term Insurance Policy will be allowed deduction as per section 80C of the Income-tax Act, 1961. • SURRENDER VALUE SOURCE : MY INSURANCE CLUB 14 PROS DEATH BENEFIT SURRENDER VALUE TAX BENEFIT MATURITY BENEFIT INSURANC E POLICIES PURE INSURANC E TERM PLANS INSURANC E CUM INVESTME NT POLICIES WHOLE LIFE PLANS UNIT LINKED INSURANC E MONEY BACK ENDOWM ENT PLANS
  15. 15. WHOLE LIFE POLICY CONS / DISADVANTAGE SOURCE : JRC INSURANCE GROUP MONEYUNDER30 15 • EXPENSIVE • LOW INTEREST RATES- Interest earned is low compared to other policies. • INFLEXIBLE • COMPLICATED – Only expert can tell whether this policy is a good deal. CONS LOW INTEREST RATES EXPENSIVE INFLEXIBLE COMPLICATED INSURANC E POLICIES PURE INSURANC E TERM PLANS INSURANC E CUM INVESTME NT POLICIES WHOLE LIFE PLANS UNIT LINKED INSURANC E MONEY BACK ENDOWM ENT PLANS
  16. 16. WHOLE LIFE POLICY PROS / CONS COMPARITIVE STUDY 16 PROS CONS INFLEXIBLE LOW INTEREST RATES EXPENSIVE COMPLICATED MATURITY BENEFIT INCOME TAX BENEFIT DEATH BENEFIT SURRENDER VALUE INSURANC E POLICIES PURE INSURANC E TERM PLANS INSURANC E CUM INVESTME NT POLICIES WHOLE LIFE PLANS UNIT LINKED INSURANC E MONEY BACK ENDOWM ENT PLANS
  17. 17. WHOLE LIFE POLICY SUITABILITY • People who invested for post retirement needs & intend to invest in other avenues. • It is suitable and profitable if this policy is taken at younger age as premium charged will remain same. • People who want to diversify their savings • It helps to topup retirement savings of people. SOURCE : THEWEALTHWISHER.COM 17 INSURANC E POLICIES PURE INSURANC E TERM PLANS INSURANC E CUM INVESTME NT POLICIES WHOLE LIFE PLANS UNIT LINKED INSURANC E MONEY BACK ENDOWM ENT PLANS
  18. 18. 18 FEATURES PROS CONS SUITABILITY • These plans provide cover throughout whole life. • Policyholder has an option to pay premiums upto certain age ,generally 80-100 yrs of age (Maturity Age) • Premium remain constant during the entire term of the policy. • DEATH BENEFIT - In case of death of the Life Insured, the nominee would get the Sum Assured + accrued Bonus. • MATURITY BENEFIT - There is an option to withdraw the Sum Assured + accrued bonuses declared under the policy anytime after 40 years from the date of commencement of the policy provided the life insured has attained a minimum age of 80 years.( No specific maturity date) • INCOME TAX BENEFIT-any payment made by a tax payer on account of Term Insurance Policy will be allowed deduction as per section 80C of the Income-tax Act, 1961. •SURRENDER VALUE • EXPENSIVE • LOW INTEREST RATES- Interest earned is low compared to other policies. • INFLEXIBLE •COMPLICATED – Only expert can tell whether this policy is a good deal. • People who invested for post retirement needs & intend to invest in other avenues. • It is suitable and profitable if this policy is taken at younger age as premium charged will remain same. • People who want to diversify their savings •It helps to topup retirement savings of people. SUMMARY OF WHOLE LIFE POLICY INSURANC E POLICIES PURE INSURANC E TERM PLANS INSURANC E CUM INVESTME NT POLICIES WHOLE LIFE PLANS UNIT LINKED INSURANC E MONEY BACK ENDOWM ENT PLANS
  19. 19. TYPES OF LIFE INSURANCE POLICIES SOURCE : WEALTHWISHER 19 INSURANCE POLICIES PURE INSURANCE TERM PLANS INSURANCE CUM INVESTMENT POLICIES WHOLE LIFE PLANS UNIT LINKED INSURANCE MONEY BACK ENDOWMENT PLANS
  20. 20. UNIT LINKED INSURANCE POLICY FEATURES • It provides financial protection along with investment opportunities • Premium paid in ULIP after deductions ( e.g. service tax deductions) is invested in equity or debt market. • Its performance is linked to market growth. SOURCE : POLICY BAZAAR MONEYCONTROL 20 INSURA NCE POLICIES PURE INSURA NCE TERM PLANS INSURA NCE CUM INVEST MENT POLICIESWHOLE LIFE PLANS UNIT LINKED INSURA NCE MONEY BACK ENDOW MENT PLANS FEATURES FINANCIAL PROTECTION INVESTMENT PERFORMANCE LINKED TO MARKET
  21. 21. UNIT LINKED INSURANCE POLICY PROS / ADVANTAGES • DEATH BENEFIT - In case of death of insured, the Sum Assured and fund value is released to the beneficiary. • TAX BENEFIT- ULIP also offers tax benefits under Section 80C and 10(10D) of the Income Tax Act, 1961. The premium paid is deductible from taxable income for maximum amount of Rs 1,00,000. • TRANSPARENT – Daily track of Net Asset Value (NAV) of the fund. • FLEXIBLE – Systematically managing the funds SOURCE : LIFEINSCOUNSIL 21 INSURAN CE POLICIES PURE INSURAN CE TERM PLANS INSURAN CE CUM INVESTM ENT POLICIES WHOLE LIFE PLANS UNIT LINKED INSURAN CE MONEY BACK ENDOW MENT PLANS PROS DEATH BENEFIT TAX BENEFIT FLEXIBLE TRANSPARENT
  22. 22. UNIT LINKED INSURANCE POLICY CONS / DISADVANTAGES • Returns is not guaranteed • LOCK IN PERIOD FOR 5 YEARS - It does not allow any liquidity option atleast for 5 years • LOW SUM ASSURED - Greater focus is on investment value. SOURCE : WISDOMTIMES IRDA.GOV.IN 22 INSURAN CE POLICIES PURE INSURAN CE TERM PLANS INSURAN CE CUM INVESTM ENT POLICIES WHOLE LIFE PLANS UNIT LINKED INSURAN CE MONEY BACK ENDOW MENT PLANS CONS NO GUARANTEE RETURN LOCK IN PERIOD LOW SUM ASSURED
  23. 23. UNIT LINKED INSURANCE POLICY PROS / CONS COMPARITIVE STUDY 23 PROS CONS INSURA NCE POLICIE S PURE INSURA NCE TERM PLANS INSURA NCE CUM INVEST MENT POLICIE S WHOLE LIFE PLANS UNIT LINKED INSURA NCE MONEY BACK ENDOW MENT PLANS
  24. 24. UNIT LINKED INSURANCE POLICY SUITABILITY • It is suitable for the investors who are considering long term investments as it provides insurance cover , investments & tax benefits. SOURCE : HINDU BUSINESS LINE 24 INSURAN CE POLICIES PURE INSURAN CE TERM PLANS INSURAN CE CUM INVESTM ENT POLICIES WHOLE LIFE PLANS UNIT LINKED INSURAN CE MONEY BACK ENDOW MENT PLANS
  25. 25. SUMMARY OF UNIT LINKED INSURANCE POLICY 25 INSURAN CE POLICIES PURE INSURAN CE TERM PLANS INSURAN CE CUM INVESTM ENT POLICIES WHOLE LIFE PLANS UNIT LINKED INSURAN CE MONEY BACK ENDOW MENT PLANS FEATURES PROS CONS SUITABILTY • It provides financial protection along with investment opportunities • Premium paid in ULIP after deductions (e.g. service tax deductions) is invested in equity or debt market. • Its performance is linked to market growth. • DEATH BENEFIT - In case of death of insured, the Sum Assured and fund value is released to the beneficiary. •TAX BENEFIT- ULIP also offers tax benefits under Section 80C and 10(10D) of the Income Tax Act, 1961. The premium paid is deductible from taxable income for maximum amount of Rs 1,00,000. •TRANSPARENT – Daily track of Net Asset Value (NAV) of the fund. • FLEXIBLE – Systematically manage of the funds • Returns is not guaranteed • LOCK IN PERIOD FOR 5 YEARS - It does not allow any liquidity option atleast for 5 years • LOW SUM ASSURED - Greater focus is on investment value. • It is suitable for the investors who are considering long term investments as it provides insurance cover , investments & tax benefits.
  26. 26. INSURANCE POLICIES PURE INSURANCE TERM PLANS INSURANCE CUM INVESTMENT POLICIES WHOLE LIFE PLANS UNIT LINKED INSURANCE MONEY BACK ENDOWMENT PLANS TYPES OF LIFE INSURANCE POLICIES SOURCE : WEALTHWISHER 26
  27. 27. MONEY BACK POLICY FEATURES • It provides Insurance Cover & also periodic return at regular intervals • In the event of the death of insured during the policy term, the beneficiary will get full money i.e. sum assured without any deduction of any survival benefits (i.e. amounts which have already been paid as money back components) • It yields low & fixed returns as they are not market linked. • SURRENDER VALUE SOURCE : LICINDIA 27 INSURANCE POLICIES PURE INSURANCE TERM PLANS INSURANCE CUM INVESTMEN T POLICIES WHOLE LIFE PLANS UNIT LINKED INSURANCE MONEY BACK ENDOWME NT PLANS FEATURES INSURANCE COVER SURRENDER VALUE SUM ASSURED LOW & FIXED RETURNS
  28. 28. MONEY BACK POLICY PROS / ADVANTAGES • FAMILY SECURITY – It gives way for a person to plan the course of his life with a sum that is expected in regular intervals • ASSURED BONUS - Every policy will have a set of assured bonus that may be shared in regular intervals or got at the end of the policy. SOURCE : MYINSURANCECLUB THINKRUPEES.COM 28 INSURANCE POLICIES PURE INSURANCE TERM PLANS INSURANCE CUM INVESTMEN T POLICIES WHOLE LIFE PLANS UNIT LINKED INSURANCE MONEY BACK ENDOWME NT PLANS PROS FAMILY SECURITY ASSURED BONUS
  29. 29. MONEY BACK POLICY CONS / DISADVANTAGES • LOW RETURNS • LOW COVERS - Relative to term policy for same premium 29 INSURANCE POLICIES PURE INSURANCE TERM PLANS INSURANCE CUM INVESTMEN T POLICIES WHOLE LIFE PLANS UNIT LINKED INSURANCE MONEY BACK ENDOWME NT PLANS CONS LOW RETURNS LOW COVERS
  30. 30. MONEY BACK POLICY PROS/CONS COMPARITIVE STUDY 30 PROS CONS LOW COVERS LOW RETURNS BONUS FAMILY SECURITY INSURANCE POLICIES PURE INSURANCE TERM PLANS INSURANCE CUM INVESTMEN T POLICIES WHOLE LIFE PLANS UNIT LINKED INSURANCE MONEY BACK ENDOWME NT PLANS
  31. 31. MONEY BACK POLICY SUITABILITY • Individuals who require money at certain intervals in their lifetime to meet Fixed Long & Short term financial needs along with life insurance cover e.g. 1. BUSINESSMAN 2. PROFESSIONALS SOURCE : LICINDIA 31 INSURANCE POLICIES PURE INSURANCE TERM PLANS INSURANCE CUM INVESTMEN T POLICIES WHOLE LIFE PLANS UNIT LINKED INSURANCE MONEY BACK ENDOWME NT PLANS
  32. 32. SUMMARY OF MONEY BACK POLICY 32 FEATURES PROS CONS SUITABILITY • It provides Insurance Cover & also period return at regular interval • In the event of the death of insured during the policy term, the beneficiary will get full money sum assured without any deduction of survival benefit amount which has been paid as money back components • It yield low & fixed returns as they are not market linked. • SURRENDER VALUE • FAMILY SECURITY – It gives way for a person to plan the course of his life with a sum that is expected in regular intervals • BONUS - Every policy will have a set of assured bonus that may be shared in regular intervals or got at the end of the policy. • LOW RETURNS • LOW COVERS – Relative to term policy for same premium. • Individuals who require money at certain intervals in their lifetime to meet Fixed Long & Short term financial needs along with life insurance e.g. BUSINESSMAN & PROFESSIONALS INSURANCE POLICIES PURE INSURANCE TERM PLANS INSURANCE CUM INVESTMEN T POLICIES WHOLE LIFE PLANS UNIT LINKED INSURANCE MONEY BACK ENDOWME NT PLANS
  33. 33. TYPES OF LIFE INSURANCE POLICIES 33 INSURANCE POLICIES PURE INSURANCE TERM PLANS INSURANCE CUM INVESTMENT POLICIES WHOLE LIFE PLANS UNIT LINKED INSURANCE MONEY BACK ENDOWMENT PLANS
  34. 34. ENDOWMENT POLICY FEATURES • Simple policy with guaranteed returns • Protection & Savings Plan • Sum assured is paid to the beneficiary on the death of the insured or on the maturity of the term. SOURCE : INDIANOTES 34 INSURANCE POLICIES PURE INSURANCE TERM PLANS INSURANCE CUM INVESTMEN T POLICIES WHOLE LIFE PLANS UNIT LINKED INSURANCE MONEY BACK ENDOWMEN T PLANS FEATURES SIMPLE POLICY SUM ASSURED PROTECTION & SAVINGS PLAN
  35. 35. ENDOWMENT POLICY PROS / ADVANTAGES • DEATH BENEFIT - Payable to the beneficiary when the annuitant passes away.( Sum Assured + Accrued Bonus) • MATURITY BENEFIT - Payable to the beneficiary at the maturity of the policy. ( Sum Assured + Accrued Bonus) • TAX BENEFIT - any payment made by a tax payer on account of Term Insurance Policy will be allowed deduction as per section 80C of the Income-tax Act, 1961. • SURRENDER VALUE – 1. WITHIN 3YRS OF BUYING THE POLICY – Receive no surrender value 2. MORE THAN 3YRS – Receive surrender value SOURCE : MYINSURANCECLUB INDIA NOTES 35 INSURANCE POLICIES PURE INSURANCE TERM PLANS INSURANCE CUM INVESTMEN T POLICIES WHOLE LIFE PLANS UNIT LINKED INSURANCE MONEY BACK ENDOWMEN T PLANS PROS DEATH BENEFIT TAX BENEFIT SURRENDER VALUE MATURITY BENEFIT
  36. 36. ENDOWMENT POLICY CONS / DISADVANTAGES • Low Returns. • Premium paid is higher as compared to term policy. • Only few companies provide advantage of Renewability • It provides protection only for specified period. SOURCE : WEALTHLINK INDIANOTES 36 INSURANCE POLICIES PURE INSURANCE TERM PLANS INSURANCE CUM INVESTMEN T POLICIES WHOLE LIFE PLANS UNIT LINKED INSURANCE MONEY BACK ENDOWMEN T PLANS CONS NON RENEWABILITY HIGH PREMIUM LOW RETURNS PROTECTION FOR SPECIFIED PERIOD
  37. 37. ENDOWMENT POLICY PROS / CONS COMPARITIVE STUDY 37 PROS CONS LOW RETURNS HIGH PREMIUM NON - RENEWABILITY PROTECTION FOR SPECIFIED PERIOD SURRENDER VALUE TAX BENEFIT MATURITY BENEFIT DEATH BENEFIT INSURANCE POLICIES PURE INSURANCE TERM PLANS INSURANCE CUM INVESTMEN T POLICIES WHOLE LIFE PLANS UNIT LINKED INSURANCE MONEY BACK ENDOWMEN T PLANS
  38. 38. ENDOWMENT POLICY SUITABILITY • It is apt for people of all ages & social groups who wish to protect their family from Financial setback & Looking for Benefits. E.G SAVINGS,WEALTH CREATION.ETC. • It is for people who want 100% return on the Insurance Premium they paid so they are willing to accept a low insurance cover and obtain lump sum amount at maturity. SOURCE : LIC INDIA.IN INDIANOTES 38 INSURANCE POLICIES PURE INSURANCE TERM PLANS INSURANCE CUM INVESTMEN T POLICIES WHOLE LIFE PLANS UNIT LINKED INSURANCE MONEY BACK ENDOWMEN T PLANS
  39. 39. SUMMARY OF ENDOWMENT POLICY 39 INSURANCE POLICIES PURE INSURANCE TERM PLANS INSURANCE CUM INVESTMEN T POLICIES WHOLE LIFE PLANS UNIT LINKED INSURANCE MONEY BACK ENDOWMEN T PLANS FEATURES PROS CONS SUITABILITY • Simple policy with guaranteed returns • Protection & Savings Plan • Sum assured is paid to the beneficiary on the death of the insured or on the maturity of the term. • DEATH BENEFIT - Payable to the beneficiary when the annuitant passes away.( Sum Assured + Accrued Bonus) • MATURITY BENEFIT - Payable to the beneficiary at the maturity of the policy. ( Sum Assured + Accrued Bonus) • TAX BENEFIT - any payment made by a tax payer on account of Term Insurance Policy will be allowed deduction as per section 80C of the Income-tax Act, 1961. • SURRENDER VALUE – 1. WITHIN 3YRS OF BUYING THE POLICY – Receive no surrender value 2. MORE THAN 3YRS – Receive surrender value. • Low Returns • Premium paid is higher as compared to term policy. • Only Few companies provide advantage of Renewability . • It provides protection only for specified period. • It is apt for people of all ages & social groups who wish to protect their family from Financial setback & Looking for Benefits. E.G SAVINGS,WEALTH CREATION.ETC. •It is for people who want 100% return on the Insurance Premium they paid so they are willing to accept a low insurance cover and obtain lump sum amount at maturity.
  40. 40. SUMMARY OF POLICIES 40 PARTICULARS TERM WHOLE LIFE ULIP MONEY BACK ENDOWMENT FEATURES • MATURITY BENEFIT • TAX BENEFIT (UPTO Rs 1.5L) • MARKET LINKED • SURRENDER VALUE           ( UPTO Rs 1L)    ( periodic payments)        TARGET SEGMENTS • Pure Insurance • Suited for investors with short term life insurance needs (10 years or less) • Who cannot afford high premium • Housing Loan value cover • Pick up at a young age, as premium charged remains same •Diversify their savings • Useful to pass on inheritance without any tax • Single package covering long-term market invest- ments, tax benefits, and insurance cover. Individuals who need savings at certain intervals in their lifetime to meet fixed long & short term financial needs along with life insurance e.g. businessmen It is apt for people of all ages & social groups who wish to protect their family from unfortunate setbacks & at the same time looking for savings.

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