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  1. 2. <ul><li>Introduction </li></ul><ul><li>Policies </li></ul><ul><li>Calculations </li></ul><ul><li>Benefits for Company and Customer </li></ul>
  2. 3. <ul><li>It provides protection for a specific period of time. It pays a benefit only if you die during the term. </li></ul><ul><li>Policies generally last for 5, 10, 15, 20 or 30 years. </li></ul>
  3. 4. <ul><li>Policy gives security for your dependents after your demise. </li></ul><ul><li>Amount you will get at the end of the policy period in a term life policy also makes it a rewarding investment. </li></ul><ul><li>Tax Concessions. </li></ul><ul><li>For youth insurance act as a profitable scheme to regulate their savings. </li></ul>
  4. 5. <ul><li>A Pension plan is a method in which an employee transfers part of his or her current income stream toward retirement income. </li></ul><ul><li>Provides replacement for salary when a person is no longer working </li></ul>
  5. 6. <ul><li>On maturity this amount is invested for generating a regular income stream, which is referred to as pension or annuity. </li></ul><ul><li>Pension plans are distinct from life insurance plans, which are taken to cover risk in case of an unfortunate event </li></ul>
  6. 7. <ul><li>Regular income after retirement. </li></ul><ul><li>Tax deductions make them a potent investment tool. </li></ul><ul><li>For youth insurance act as a profitable scheme to regulate their savings. </li></ul>
  7. 9. <ul><li>This insurance scheme LIFEPEN is a combination of both Life and Pension policy. </li></ul><ul><li>Individual need to pay one premium to get the facility of both (Life and Pension)schemes. </li></ul><ul><li>Total amounted premium in LIFEPEN is less in compare to the summed premium of life and pension policy </li></ul>
  8. 10. <ul><li>In this plan we are providing the facility of both and will pay amount for which ever event (Death or Retirement) occurred first </li></ul>
  9. 11. <ul><li>Immediate 30yrs plan. </li></ul><ul><li>10yrs break plan. </li></ul>
  10. 12. <ul><li>For the age group from 25 to 55years. </li></ul><ul><li>Maximum tenure of 30yrs </li></ul><ul><li>Annuity start immediately after the mature year. </li></ul>
  11. 13. <ul><li>A person start planning for his life insurance in 25 age and start premium from 26 age up to the age of 55 years. After the age of 55 years he will retire then our company gives him pension policy up to the age of 80 years. </li></ul><ul><li>C25…....C26……...….C55…...C56….……….…………80 </li></ul><ul><li>(X) (X) (X) (Y) (Y) </li></ul><ul><li>Assumption:- </li></ul><ul><li>Let interest rate = 10% </li></ul><ul><li>We want to earn profit = 15% </li></ul><ul><li>Our Company will give the </li></ul><ul><li>customer each year as pension= Rs 60,000/- </li></ul><ul><li>If the policy holder dies after the age of 40 years and before 55 years then the lump sum amount of Rs 5,00,000/- will be given to his nominee. </li></ul>
  12. 14. <ul><li>Now we are going to calculate:- </li></ul><ul><li>How much should we get from customer? </li></ul><ul><li>How much will be the Premium for each year? </li></ul><ul><li>Let X be the annuity which the policy holder has to pay as a premium </li></ul><ul><li>PV value at C25=X* (using PVIFA at the rate of 10 % of 30 years) </li></ul><ul><li> =X* 9.4269 </li></ul><ul><li> =9.4269*X ………(1) </li></ul>
  13. 15. <ul><li>We want to earn </li></ul><ul><li>15% profit so that = PV*.85 </li></ul><ul><li> =X*9.4269*.85 </li></ul><ul><li> =8.0129* </li></ul><ul><li>Then profit = (9.4269-8.0129)*X </li></ul><ul><li> = 1.4440*X </li></ul><ul><li>  Future value of (1) at C55 =PV*(1+r) ^n </li></ul><ul><li> =9.4269X*(1.1) ^30 </li></ul><ul><li> =165.54*X……..(2) </li></ul>
  14. 16. <ul><li>Let Y be the annual payment to be given to the policy holder after his retirement. </li></ul><ul><li>Here, calculating the PV of the annuity to be paid after the retirement: </li></ul><ul><li>PV value at C55 =Y* using PVIFA at the rate of 10% for 25 years </li></ul><ul><li>=Y*9.0770 </li></ul><ul><li> =9.0770*Y …………………(3) </li></ul>
  15. 17. <ul><li>Now compare (2) and (3) at C55. </li></ul><ul><li>165.54*X=9.0770*Y </li></ul><ul><li> X= 9.0770*Y165.54 </li></ul><ul><li> X=.054*Y </li></ul><ul><li> If Y=60,000 </li></ul><ul><li> X=.054*60,000 </li></ul><ul><li> X=3290(Premium) </li></ul><ul><li>C25…....C26……...….C55…...C56….……….……………..C80 </li></ul><ul><li>(3,290) (3,290) (3,290) (60,000) (60,000) </li></ul>
  16. 18. <ul><li>For the age group from 25 to 55years. </li></ul><ul><li>Maximum tenure of 30yrs </li></ul><ul><li>Annuity start after 10 yrs the mature year. </li></ul>
  17. 19. <ul><li>Introducer of scheme. </li></ul><ul><li>Mass Attractor. </li></ul><ul><li>Less people claim for insurance. </li></ul><ul><li>Profit. </li></ul>
  18. 20. <ul><li>Enjoying the two scheme in one. </li></ul><ul><li>Investment Low. </li></ul><ul><li>Return High. </li></ul><ul><li>Tax benefits. </li></ul>
  19. 21. ?
  20. 22. <ul><li>Thank You… </li></ul>