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Presented To:– Prof. Uttam Kumar




12/17/2012           Endowment Policy           1
Presented By:-

             Sudhir Singh
                                          Pooja Singh
              Rajput
      Nitin         Avinash Abhay              Saurabh
      Mishra            Azad                   Tripathi

12/17/2012             Endowment Policy                   2
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
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
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
  have


12/17/2012                Endowment Policy                   5
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
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
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
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
Endowment Assurance




   Overview, Benefits and Suggestion




                 LIC India
             Jeevan Anand Plan
                Table - 149

12/17/2012          Endowment Policy   10
Endowment Assurance and Whole Life plans
Features
                             Jeevan Anand Plan : Table 149                                                              J
Plan Type                    Regular                                                                                    E
                                                                                                                        E
Category                     For Whole Life And Good Returns
                                                                                                                        V
Guarantee                    Yes + Bonus                                                                                A
Insurance Cover              Maturity at 75                                                                             N
Death Benefit                The Sum Assured along with the vested bonuses is payable on death in a lump sum.
                                                                                                                        A
Guaranteed Surrender         The policy may be surrendered after it has been in force for 3 years or more.              N
Value                        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
                                                                                                                        D
Premium Waiver Option        No
Auto Cover                   No                                                                                      T
Revival of Policy            No                                                                                      A
Loan On the Policy           Yes
                                                                                                                     B
                                                                                                                     L
Accident 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.
                                                                                                                        1
Rebate on the premium        Depending on the amount of the sum assured chosen and the plan duration                    4
                                                                                                                        9
     12/17/2012                                     Endowment Policy                                              11
Endowment Assurance and Whole Life plans

Benefits
                             Jeevan Anand Plan : Table 149                                                                J
Min & Max Entry Age          18 years , 65 years
                                                                                                                          E
                                                                                                                          E
Min & Max Policy Term        5 to 57 years                                                                                V
Min & Max Maturity Age       75 years is the Maximum Maturity Age                                                         A
Min & Max Sum Assured        Rs 100000.00 Min, No Limit for Max                                                           N

Premium Paying Term          Pay till the Premium Paying term for the Endowment Term. For Whole life the Policy     A
                             Covers till age 70.                                                                    N
Loan Availability            Yes                                                                                    A
Survival 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.                                     A
Rebates in Premium           2% if paid Yearly, 1% if Paid Half Yearly                                                    B
Suicide Clause               No Suicide Clause                                                                            L
                                                                                                                          E
Accident 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
Endowment Assurance and Whole Life plans




                                  Recommendation

Should I Take This YES. Go for this plan. No other Company (Insurance Provider) has
Plan?              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 has
Costlier Compared Endowment and Whole Life. Only Whole Life plan which pays
to others?        money. Compare to traditional Term Life, no plan gives money.




    12/17/2012                         Endowment Policy                            13
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 21

12/17/2012           Endowment Policy               14
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
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.
 What's Special?
   So in case of death, your dependants get the
  sum assured.



12/17/2012            Endowment Policy              16
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
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
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
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
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 year

12/17/2012           Endowment Policy            21
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
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-annually


12/17/2012           Endowment Policy          23
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
12/17/2012   Endowment Policy   25

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Endowment Policy SSR

  • 1. Presented To:– Prof. Uttam Kumar 12/17/2012 Endowment Policy 1
  • 2. Presented By:- Sudhir Singh Pooja Singh Rajput Nitin Avinash Abhay Saurabh Mishra Azad Tripathi 12/17/2012 Endowment Policy 2
  • 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. 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. 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 have 12/17/2012 Endowment Policy 5
  • 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. 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. 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. 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. Endowment Assurance Overview, Benefits and Suggestion LIC India Jeevan Anand Plan Table - 149 12/17/2012 Endowment Policy 10
  • 11. Endowment Assurance and Whole Life plans Features Jeevan Anand Plan : Table 149 J Plan Type Regular E E Category For Whole Life And Good Returns V Guarantee Yes + Bonus A Insurance Cover Maturity at 75 N Death Benefit The Sum Assured along with the vested bonuses is payable on death in a lump sum. A Guaranteed Surrender The policy may be surrendered after it has been in force for 3 years or more. N Value 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 D Premium Waiver Option No Auto Cover No T Revival of Policy No A Loan On the Policy Yes B L Accident 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. 1 Rebate 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. Endowment Assurance and Whole Life plans Benefits Jeevan Anand Plan : Table 149 J Min & Max Entry Age 18 years , 65 years E E Min & Max Policy Term 5 to 57 years V Min & Max Maturity Age 75 years is the Maximum Maturity Age A Min & Max Sum Assured Rs 100000.00 Min, No Limit for Max N Premium Paying Term Pay till the Premium Paying term for the Endowment Term. For Whole life the Policy A Covers till age 70. N Loan Availability Yes A Survival 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. A Rebates in Premium 2% if paid Yearly, 1% if Paid Half Yearly B Suicide Clause No Suicide Clause L E Accident 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. Endowment Assurance and Whole Life plans Recommendation Should I Take This YES. Go for this plan. No other Company (Insurance Provider) has Plan? 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 has Costlier Compared Endowment and Whole Life. Only Whole Life plan which pays to others? money. Compare to traditional Term Life, no plan gives money. 12/17/2012 Endowment Policy 13
  • 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 21 12/17/2012 Endowment Policy 14
  • 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. 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.  What's Special? So in case of death, your dependants get the sum assured. 12/17/2012 Endowment Policy 16
  • 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. 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. 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. 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. 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 year 12/17/2012 Endowment Policy 21
  • 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. 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-annually 12/17/2012 Endowment Policy 23
  • 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. 12/17/2012 Endowment Policy 25