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Life insurance project(LIC)

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Life insurance project(LIC)

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Life insurance corporation of India provides wide range of life insurance products its your time to decide which one you want as we all know life is precious protect it by taking right insurance product.

Life insurance corporation of India provides wide range of life insurance products its your time to decide which one you want as we all know life is precious protect it by taking right insurance product.

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Life insurance project(LIC)

  1. 1. A STUDY ON “POLICIES AND FEATURES OF LIC PLANS"(AGENT LICENCE) By:-Anil goswami Reg no:-11008499
  2. 2. Objective To do detail study of the policies of lic of India. To pass the exam by nseit conducted at Jammu. To get license issued from irda and start the agent work. Earn commission and get practical experience about selling insurance products.
  3. 3. Introduction to LIC  Life Insurance Corporation of India (LIC) state owned insurance group was formed in September, 1956, by an Act of Parliament.  LIC have network of 2048 branches,109 division office and 8 zonal office, 1,337,064 individual agents spread over the country.  LICis the largest insurance company in India in terms of its asset value of 1560481.84 Crore.  LIC headquarter is in Mumbai, India and government of India is the owner of the company.
  4. 4. Products and Subsidiaries.. LIC have various product like Life insurance, health insurance, investment management, mutual fund. LIC is having the following subsidiaries  LIC housing finance.  LIC pension plan fund ltd.  LIC international  LIC card subsidiaries  LIC nomura mutual fund.
  5. 5. Mission & vision Mission: "Explore and enhance the quality of life of people through financial security by providing products and services of aspired attributes with competitive returns, and by rendering resources for economic development." Vision: "A trans-nationally competitive financial conglomerate of significance to societies and Pride of India."
  6. 6. LIC logo and Recognitions  LIC's slogan yogakshemam vahamyaha is in Sanskrit language which translates in English as "Your welfare is our responsibility”.  The Economic Times Brand Equity Survey 2012 rated LIC as the No. 6 Most Trusted Service Brand of India.  From the year 2006, LIC has been continuously winning the Readers' Digest Trusted brand award.
  7. 7. Meaning of life Insurance Life insurance is a contract that pledges payment of an amount to the person assured (or his nominee) on the happening of the event insured against.
  8. 8. Why to have insurance  Protection  Liquidity  Tax Relief  Money when you need it
  9. 9. Constituents of insurance market Agents: these contribute the major percentage of insurance sales in India. It’s the agents primary responsibility to meet the client, understand their needs and accordingly recommend the suitable products. Corporate agents: These include bank and brokers . Underwriters: these include whether to accept or reject the insurance proposal. If the proposal to be accepted then underwriters decides at what price it should be accepted.
  10. 10. Continue.. Actuaries: these calculate the standard price of the products. The take into account the statistical data and the past claim experience of the company. Third party administrators: these do the work of building hospital networks. They also help in approvals at the time of the admission to the hospitals and with setting the bill with insurer on discharge. Loss adjusters/surveyres: these do the work of assessing and certifying a loss when a claim is made on the insurance company.
  11. 11. Continue.. IRDA: The regulator has the responsibility of ensuring the smooth running of the insurance sector .the insurance regulatory and development authority is the insurance regulator in India .The IRDA grants the insurance licenses to insurance companies and makes sure all the insurance companies compliance at all times. Training institutes: these have the responsibility of supplying trained manpower meet the growing need of the skilled labor in the insurance industry.
  12. 12. Continue.. Institute of India, insurance institute of risk management and the national insurance Academy are the premier training institute's in the field of insurance. NGO: these play an important role in spreading the awareness about insurance products and the protecting the rights of the customers. The role of Ngo in rural areas where they work with self help groups (SHGs) and the insurance companies on deeper penetration of micro-insurance products at grassroots level.
  13. 13. Life insurance products Basic elements of a life insurance plans Death cover: this amount to be paid to nominee/beneficiary in the event of death of the life insured during the term of the policy. Maturity benefit: this amount to be paid to the maturity of the policy if the life insured survives through the term of the policy.
  14. 14. Basic life insurance products Term insurance plans: Term insurance plans only offer death cover. No maturity benefit. Tenure: normally the term starts from 5,10,15,20,25,30years chosen by the insured and agreed the insurer. Minimum and maximum age: most companies specify the minimum and maximum age at the entry and exit for the plans.
  15. 15. Pure endowment plan This plan only offer survival benefit in the event of the life insured surviving the entire tenure of the plan. There is no death cover.
  16. 16. Endowment insurance plans
  17. 17. Endowment insurance plans Combination of term insurance and pure endowment Maturity benefit: if insured survives the entire term of the plan insurance company will pay specified amount. Death cover: if the life insured dies before the maturity period of the plan insurance company will pay the death cover to nominee/beneficiary. Saving Element: along with maturity benefit bonus will be payed by the insurance company. Goal based: for child’s marriage and higher education these plan bought by the insured.
  18. 18. Whole life insurance plans A term insurance plan with an unspecified period is called a whole life plan. Death cover: on the death of life insured, the nominee/beneficiary is paid sum insured along with the bonuses accumulated up until the point of time. Emergency withdrawal: individual can make partial withdrawal to meet emergency requirements. Saving element: Insurance company declare bonuses for these plans based on return earn on investment.
  19. 19. Convertible insurance plans Conversion: These insurance plans can be converted from one type into another. For Instance term insurance plan can be converted into an endowment plan or whole life plan or any other plan as allowed by the insurance company. At the time of the plan conversion the life insured is not required to undergo a medical check-up. At the time of conversion there is no further underwriting decision to be made.
  20. 20. Joint life insurance plans Jointly insured: Joint life insurance plans offer coverage of two persons under one policy. This plan ideal for married couples or partners in a business firm. Death cover: sum insured is payable on the death of the first joint policyholder and then again on the death of the surviving policyholder along with the accumulated bonuses up to that date. Bonus: If both policyholder survived until maturity then maturity benefit along with bonuses accumulated until that date is paid.
  21. 21. Micro insurance plans Low income groups: Micro insurance aim to provide insurance to low income groups. Insurance range: The irda has specified that the life cover provided under-micro insurance products should range from Rs.5,000 to Rs.50,000. A life insurer may offer life micro-insurance products as well as general micro-insurance products and vice-versa.
  22. 22. Unit linked insurance plans Higher Risk: unit link carry a higher risky then with-profit policies and contain fewer guarantees. Flexible: unit-linked policies suited to people prepared to undertake some investment risk to obtain the benefits of flexibility . Returns: return are subject to movement in the capital markets where investments such as equities (shares) are traded.
  23. 23. How to become an agent Submit the required qualifications ,and date of birth document with fees. Undergo practical training. Pass the required examination conducted by IRDA. Get the license from development officer and start selling insurance polices to various clients.
  24. 24. LIC departments Branch manager office Developments officers room Claims department Policy service department Sales departments Enquiry counter Cash counter 1 Cash counter2 Agents room
  25. 25. Major leanings Knowledge about different policies of life insurance corporation of India. How to fill up proposal form of LIC. What other document required to be attached with proposal form of LIC. How to deal with clients and recommend on the basis of their needs. Am able to sell insurance policies and earned commission to become successful agent for the corporation.
  26. 26. Continue.. How to Calculate the premiums of LIC plans Agents confidential report/Moral hazard Report
  27. 27. Role of agent and career
  28. 28. Conclusion and findings During this training I learnt about life insurance various polices and practical things about life insurance corporation of India. I got license so I become agent for the life insurance corporation of India by this my confidence is increased by this project I understood the various clients needs and sell recommended polices accordingly.
  29. 29. THANK YOU

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