A ppt on Life Insurance Basics, Principles, Products, Actuaries etc

1. INSURANCE
DR. V. M. TIDAKE
Principles of Insurance- Dr. V. M. Tidake 1

2. WHAT IS INSURANCE ?
• IT IS A TOOL IN THE MANAGEMENT
OF RISKS – A DEVICE THROUGH
WHICH THE RISKS FACED BY THE
INDIVIDUALS ARE POOLED
TOGETHER AND THEREBY ALL THE
MEMBERS OF POOL WILL SHARE
THE LOSSES SUFFERED BY A FEW
Principles of Insurance- Dr. V. M. Tidake 2

3. 03 CONSIDERATIONS
• RISK TRANSFER TOOL- TRANSFERRING THE RISKS FROM THE
INDIVIDUALS TO THE POOL – REDUCTION OF THE OVERALL RISK
FACED BY THE POOL.
• SOCIAL TOOL- AS A SOCIAL SAFEGUARD AGAINST THE LOSSES
EXPECTED TO BE SUFFERED DUE TO UNEXPECTED EVENTS BY A
FEW MEMBERS OF THE SOCIETY.
• COMMERCIAL OR LEGAL TOOL- WHERE A THIRD PARTY DOES
THIS ACTIVITY OF POOLING OF RISKS AND SHARING OF LOSSES
WITH A COMMERCIAL INTEREST
Principles of Insurance- Dr. V. M. Tidake 3

4. INSURANCE DEFINITION:
ECONOMIC PERSPECTIVE –
INSURANCE IS A FINANCIAL INTERMEDIATION
FUNCTION BY WHICH INDIVIDUALS EXPOSED TO A
SPECIFIED CONTINGENCY EACH CONTRIBUTE TO A
POOL FROM WHICH COVERED EVENTS SUFFERED BY
PARTICIPATING INDIVIDUALS ARE PAID. INDIVIDUALS
PURCHASE THE RIGHT TO COLLECT FROM THE POOL
IF THE INSURED CONTINGENCY OCCURS.
INSURANCE THEN IS A CONTINGENT CLAIM
CONTRACT ON THE POOL’S ASSETS.
- KENNETH BLACK (JR.) AND HAROLD SKIPPER (JR.)
Principles of Insurance- Dr. V. M. Tidake 4

5. INSURANCE DEFINITION:
LEGAL PERSPECTIVE:
INSURANCE IS AN AGREEMENT (THE INSURANCE
POLICY OR INSURANCE CONTRACTS), BY WHICH ONE
PARTY, CALLED THE POLICY OWNER, PAYS A
STIPULATED CONSIDERATION, CALLED PREMIUM, TO
THE OTHER PARTY CALLED INSURER IN RETURN FOR
WHICH THE INSURER AGREES TO PAY A DEFINED
AMOUNT OF MONEY OR PROVIDE A DEFINED
SERVICE IF A COVERED EVENT OCCURS DURING THE
POLICY TERM.Principles of Insurance- Dr. V. M. Tidake
5

6. INSURANCE TYPES:
A. LIFE INSURANCE
B. GENERAL INSURANCE
Principles of Insurance- Dr. V. M. Tidake 6

7. LIFE INSURANCE
• IT IS A CONTRACT IN WHICH THE
INSURER, IN CONSIDERATION OF A
CERTAIN PREMIUM, EITHER IN A LUMP
SUM OR IN ANY OTHER PERIODICAL
PAYMENTS, IN RETURN AGREES TO PAY
TO THE ASSURED, OR TO THE PERSON
FOR WHOSE BENEFIT THE POLICY IS
TAKEN, A STATED SUM OF MONEY ON
Principles of Insurance- Dr. V. M. Tidake 7

8. LIFE INSURANCE FEATURES
• CONTRACT RELATING TO HUMAN LIFE,
• CONTRACT PROVIDES FOR PAYMENT OF
LUMP SUM MONEY,
• THE AMOUNT IS PAID AT THE EXPIRATION OF
A CERTAIN PERIOD OR ON DEATH OF A
PERSON.Principles of Insurance- Dr. V. M. Tidake 8

9. INCIDENTS UNDER LI
• DISABILITY AND DOUBLE OR TRIPLE
INDEMNITY ACCIDENT BENEFITS (IF PROVIDED
IN THE CONTRACT);
• ANNUITIES UPON HUMAN LIFE;
• SUPERANNUATION ALLOWANCES AND
ANNUITIES PAYABLE OUT OF ANY FUND
APPLICABLE SOLELY TO THE RELIEF AND
MAINTENANCE OF PERSONS ENGAGED OR
WHO HAVE BEEN ENGAGED IN ANY
Principles of Insurance- Dr. V. M. Tidake 9

10. ESSENTIALS OF A VALID CONTRACT
• OFFER AND ACCEPTANCE
• CONSENSUS AD IDEM
(“MEETING OF THE MINDS”)
• PARTIES COMPETENT TO CONTRACT
• CONSIDERATIONPrinciples of Insurance- Dr. V. M. Tidake 10

11. PRINCIPLES OF LIFE INSURANCE
SPECIAL FEATURES OF LIFE INSURANCE CONTRACTS
• INSURABLE INTEREST :
• THE OBJECT OF INSURANCE SHOULD BE LAWFUL.
THE PERSON PROPOSING FOR INSURANCE MUST
HAVE INTEREST IN THE CONTINUED LIFE OF THE
INSURED AND WOULD SUFFER PECUNIARY LOSS
THE INSURED PERSON DIES. THIS IS KNOWN AS
INSURABLE INTEREST.
Principles of Insurance- Dr. V. M. Tidake 11

12. INSURABLE INTEREST
• IN LIFE INSURANCE THE PRESENCE OF INSURABLE INTEREST IS ESSENTIAL AT
THE TIME OF EFFECTING THE CONTRACT OF INSURANCE.
• IF THERE IS NO INSURABLE INTEREST, THE CONTRACT BECOMES WAGERING
AND HENCE ILLEGAL.
• EVERY INDIVIDUAL HAS UNLIMITED INSURABLE INTEREST ON HIS/HER LIFE.
• HUSBAND HAS INSURABLE INTEREST ON THE LIFE OF HIS WIFE AND VICE
VERSA.
• THE CREDITORS HAVE INSURABLE INTEREST ON THE LIVES OF DEBTORS TO
THE EXTENT OF INDEBTEDNESS.
• BUSINESS PARTNERS HAVE INSURABLE INTEREST IN THE LIVES OF OTHER
PARTNERS TO THE EXTENT OF THEIR FINANCIAL INTEREST IN THE
PARTNERSHIP.
• EMPLOYERS HAVE INSURABLE INTEREST IN THE LIVES OF EMPLOYEES WHO
Principles of Insurance- Dr. V. M. Tidake
12

13. DOCTRINE OF UTMOST GOOD
FAITH
• IN LIFE INSURANCE CONTRACTS, A VERY HIGH DEGREE OF GOOD
FAITH IS REQUIRED TO EXIST BETWEEN THE PARTIES TO THE
CONTRACT, VIZ., THE INSURER AND THE INSURED. THIS IS CALLED
THE PRINCIPLE OF UTMOST GOOD FAITH (UBERRIMA FIDES)
• IT IS THE DUTY OF THE PROPOSER TO DISCLOSE THE MATERIAL
INFORMATION FOR PROPER ASSESSMENT OF RISK BY THE
INSURER
• ALL THE REQUIRED INFORMATION FOR THE ASSESSMENT OF RISK
IS KNOWN ONLY TO THE PROPOSER AND THE INSURER HAS NO
KNOWLEDGE OF THE RISK
• THE PROPOSER MAY NOT BE HAVING TECHNICAL KNOWLEDGE
ABOUT THE INSURANCE PRODUCTS, THE BENEFITS, PRICING
ASPECTS ETC. AND HENCE WILL HAVE TO RELY UPON THE
INSURER TO ENSURE THAT THE TERMS OF THE CONTRACT ARE
FAIR AND EQUITABLE.
Principles of Insurance- Dr. V. M. Tidake 13

14. DOCTRINE OF ADHESION
•THE TERMS OF THE CONTRACT
ARE MOST OF THE TIMES FIXED
BY ONE PARTY (THE INSURER)
AND WITH MINOR EXCEPTIONS,
MUST BE ACCEPTED OR
REJECTED IN TOTAL BY THEPrinciples of Insurance- Dr. V. M. Tidake 14

15. PRINCIPLE OF INDEMNITY
• INSURANCE CONTRACTS OTHER THAN LIFE INSURANCE
CONTRACT ARE CONTRACTS OF INDEMNITY IN THE
SENSE THAT THE AMOUNT PAYABLE BY THE INSURER IN
CASE OF THE CONTINGENCY STATED IN THE POLICY
OCCURRING IS LIMITED TO THE LOSS THAT THE
INSURED WILL SUFFER.
• THE INSURANCE CONTRACT PROMISES TO KEEP THE
INSURED INDEMNIFIED AGAINST THE FINANCIAL LOSS
THAT HE WOULD SUFFER ON ACCOUNT OF THE
HAPPENING OF THE EVENT.
Principles of Insurance- Dr. V. M. Tidake 15

16. MAIN TYPES OF LIFE INSURANCE
• WHOLE LIFE INSURANCE
• INTENDED TO PROVIDE LIFE
INSURANCE PROTECTION OVER
ONE’S LIFETIME – PROVIDES FOR
PAYMENT OF THE ASSURED
AMOUNT UPON THE INSURED’S
DEATH REGARDLESS OF WHEN
IT OCCURS.
Principles of Insurance- Dr. V. M. Tidake 16

17. WHOLE LIFE INSURANCE
• THE PAYMENT OF ASSURED SUM IS A
CERTAINTY; ONLY THE TIME OF THE PAYMENT
OF THE ASSURED SUM IS AN UNCERTAINTY
• ORDINARY WHOLE LIFE INSURANCE
• LIMITED PAYMENT WHOLE LIFE
INSURANCE
• CONVERTIBLE WHOLE LIFE INSURANCEPrinciples of Insurance- Dr. V. M. Tidake 17

18. ENDOWMENT INSURANCE
• BENEFITS UNDER THE POLICY PAID ON
THE DEATH OF THE LIFE INSURED DURING
THE SELECTED TERM OR ON HIS
SURVIVAL TO THE END OF THE TERM.
• NORMAL DURATIONS RANGING
FROM 10 TO 30 YEARS OR MORE;
SHORTER TERM POLICIES RANGING
FROM 3 TO 10 YEARS
• SINGLE PREMIUM ENDOWMENT
INSURANCE POLICIES
• MONEY BACK OR CASH BACK OR
ANTICIPATED ENDOWMENT
Principles of Insurance- Dr. V. M. Tidake 18

19. TERM INSURANCE
• INSURANCE PROTECTION FOR SELECTED TERM
ONLY – IN CASE THE INSURED PERSON DIES
DURING THE TERM, THE BENEFITS ARE PAYABLE.
• IN CASE OF HIS SURVIVAL TILL THE END OF
SELECTED TERM, THE POLICY NORMALLY EXPIRES
WITHOUT ANY BENEFIT BECOMING PAYABLE
• MAY BE REGARDED AS TEMPORARY INSURANCE –
PREMIUM FOR TERM INSURANCE IS RELATIVELY
LOW.
Principles of Insurance- Dr. V. M. Tidake 19

20. ANNUITIES
• SERIES OF PERIODIC PAYMENTS
• ANNUITY PROVIDER (INSURER) AGREES
TO PAY THE PURCHASER OF ANNUITY
(ANNUITANT) A SERIES OF REGULAR
PERIODICAL PAYMENTS FOR A FIXED
PERIOD OR DURING SOMEONE’S LIFE
TIME.Principles of Insurance- Dr. V. M. Tidake 20

21. GROUP LIFE INSURANCE
• THERE ARE GROUPS OF PEOPLE
WHO SHARE SOMETHING IN
COMMON AND ARE CONNECTED
BY SOME UNDERLYING
SIMILARITY LIKE OCCUPATION,
PROFESSION, EMPLOYMENT,
SOCIAL PURPOSES OR EVEN
ENTERTAINMENT CAN HAVE A
SIMILAR NEED FOR LIFE
INSURANCE WHICH CAN BE MET
BY A SINGLE INSURANCE
Principles of Insurance- Dr. V. M. Tidake 21

22. GROUP LIFE INSURANCE
• THESE CATEGORIES OF
PRODUCTS THAT COVER THE
RISK OF A CONTINGENCY
DEPENDENT ON THE LIFE OF
A GROUP OF PERSONS, COME
UNDER THE GROUP LIFE
INSURANCE.
Principles of Insurance- Dr. V. M. Tidake 22

23. CONVENTIONAL GROUPS
• EMPLOYER – EMPLOYEE GROUPS
• CREDITOR – DEBTOR GROUPS
• ASSOCIATIONS OF SELF-EMPLOYED
PROFESSIONALSPrinciples of Insurance- Dr. V. M. Tidake 23

24. NON-CONVENTIONAL GROUPS
• CO-OPERATIVE SOCIETIES
• TRADE UNIONS
• WELFARE ASSOCIATIONS
• NON-GOVERNMENT ORGANISATIONS
• VOLUNTARY ASSOCIATIONS
• CHARITABLE TRUSTS, ETC.
Principles of Insurance- Dr. V. M. Tidake 24

25. LIFE INSURANCE PRODUCTS IN
INDIA
• TERM INSURANCE
• TWO-YEAR TEMPORARY INSURANCE
• CONVERTIBLE TERM INSURANCE FOR 5-7 YEARS –
OPTION TO CONVERT INTO LIMITED PAYMENT
WHOLE LIFE OR ENDOWMENT ASSURANCE
• BIMA SANDESH – RETURN OF PREMIUM ON
SURVIVAL
• BIMA KIRAN – TERM INSURANCE; RETURN OF
PREMIUM ON SURVIVAL – FREE INSURANCE COVER
FOR 10 YEARS TO THE EXTENT OF 30% - 60% OF
THE FACE VALUE OF POLICY
• MORTGAGE REDEMPTION ASSURANCE – TO COVER
OUTSTANDING LOAN UNDER HOUSE MORTGAGE.Principles of Insurance- Dr. V. M. Tidake 25

26. • WHOLE LIFE PLANS
• WHOLE LIFE POLICY – PREMIUMS
PAYABLE FOR 35 YEARS OR AGE 80
YEARS, WHICHEVER IS LATER;
INSURANCE MONEY PAYABLE ON
DEATH
• LIMITED PAYMENT WHOLE LIFE
POLICY
• CONVERTIBLE WHOLE LIFE POLICY –
PREMIUMS PAYABLE UPTO AGE 70 OF
THE INSURED – LIMITED PAYMENT –
OPTION TO COVERT AT THE END OF
5 YEARS INTO ENDOWMENT PLAN
Principles of Insurance- Dr. V. M. Tidake 26

27. ENDOWMENT PLANS
• ENDOWMENT ASSURANCE (WITH OR
WITHOUT PROFITS)
• BHAVISHYA JEEVAN POLICY (WITH PROFITS) –
FIRST 5 YEARS PREMIUM ARE QUITE HIGH
FROM 6TH YEAR SCALED DOWN TO ALMOST
1/3RD.
• JEEVAN MITRA (DOUBLE COVER OR TRIPLE
COVER)
• JEEVAN GRIHA (DOUBLE COVER OR TRIPLE
COVER) – LOW COST WITHOUT PROFIT
ENDOWMENT ASSURANCE – FACE VALUE PAID
ON MATURITY
• NEW JAN RAKSHA (WITH PROFITS)
• JEEVAN SHREE (WITHOUT PROFITS BUT WITH
GUARANTEED ADDITION) – LIMITED PREMIUM
PAYING PERIOD – KEYMAN INSURANCE
Principles of Insurance- Dr. V. M. Tidake 27

28. • JEEVAN PRAMUKH
• ASHA DEEP II (WITH PROFITS) – ENDOWMENT PLAN WITH
RIDERS TO COVER FOUR SERIOUS ILLNESSES VIZ. CANCER,
PARALYTIC STROKE LEADING TO PERMANENT DISABILITY,
KIDNEY FAILURE (BOTH KIDNEYS), AND CARDIAC BYE-PASS
SURGERY – EXCEPT 1ST YEAR – 50% OF S.A. PREMIUM
WAIVER – ANNUITY OF 10% OF S.A. TILL MATURITY
• BALANCE 50% OF S.A. ON DEATH OR MATURITY WITH
BONUS
• MARRIAGE ENDOWMENT OR EDUCATION ANNUITY (WITH
PROFITS) – NO IMMEDIATE PAYMENT ON DEATH – PAYMENT
IN LUMPSUM IN CASE OF MARRIAGE – PAYMENT IN HALF
YEARLY INSTALMENTS OVER 5 YEARS IN EDUCATION
ANNUITY FROM DATE OF MATURITY ONLY.
• MONEY BACK PLANS
Principles of Insurance- Dr. V. M. Tidake 28

29. SPECIAL PLANS
• FOR CHILDREN –
• CHILDREN DEFERRED ASSURANCE PLANS
• NEW CHILDREN DEFERRED ASSURANCE PLAN
• JEEVAN BALYA
• JEEVAN KISHORE
• CHILDREN’S MONEY BACK PLAN
• JEEVAN ANURAG
• FOR DISABLED CHILDREN
• JEEVAN ADHAR
• JEEVAN VISHWAS
• IT EXEMPTION UPTO RS. 20,000/- ON PREMIUM
Principles of Insurance- Dr. V. M. Tidake 29

30. • JEEVAN ASHA II
• ENDOWMENT ASSURANCE WITH MEDICAL BENEFIT RIDER
• 2% OF FACE VALUE PAID EVERY 2 YEAR FOR MEDICAL CHECKUP
• REIMBURSEMENT OF EXPENSES UPTO 20% TO 50% OF FACE VALUE
OF POLICY FOR MINOR / MAJOR SURGERIES
• ON DEATH FULL S.A.
• JOINT LIFE POLICIES
• JEEVAN SAATHI
• JEEVAN SARITHA – BENEFIT OF JOINT LIFE AND LAST SURVIVORSHIP
ANNUITY APART FROM LUMP SUM PAYMENT ON DEATH OR
MATURITY
Principles of Insurance- Dr. V. M. Tidake 30

31. UNIT LINKED INSURANCE PLAN
• BIMA PLUS – CAPITAL MARKET LINKED INSURANCE PLAN
• PREMIUM HAS TWO PARTS
• RISK PREMIUM
• INVESTMENT PREMIUM
• INVESTMENT AT THE CHOICE OF POLICYHOLDER – FROM
THREE COMBINATIONS VIZ.
• SECURED FUND (COMPLETE SECURITY)
• BALANCED FUND (MODERATE RISK)
• RISK FUND (HIGH RISK INVESTMENTS)
Principles of Insurance- Dr. V. M. Tidake 31

32. • INVESTMENT PATTERN
Principles of Insurance- Dr. V. M. Tidake 32
Equity Debt Liquid
Secured Not less than 10% 80 % 20 %
Balanced Not less than 30% 80 % 20 %
Risk Not less than 50% 75 % 25 %

33. •POLICY HOLDER TO SELECT
A FUND
•SWITCH OVER TWICE DURING
THE TERM SUBJECT TO
MINIMUM GAP OF 2 YEARS
•COST OF SWITCHING OVER
2% OF THE CURRENT BID
VALUE OF THE FUND
Principles of Insurance- Dr. V. M. Tidake 33

34. LIFE INSURANCE PRODUCTS OF
PRIVATE COMPANIES
• HDFC STANDARD LIFE
• ENDOWMENT ASSURANCE PLAN
• MONEY BACK PLAN – PAYMENT OF CASH LUMP SUM AT 5
YEARLY INTERVALS
• GROUP INSURANCE POLICY – SPECIFIED GROUP FOR A TERM
OF ONE YEAR
• ENDOWMENT ASSURANCE PLANS
• ICICI PRU SINGLE PREMIUM BOND – SAVINGS WITH LIFE COVER
– FIXED TERM PLAN OF 5 OR 10 YEARS
Principles of Insurance- Dr. V. M. Tidake 34

35. • ICICI PRU SAVE N’ PROTECT
• FIXED TERM POLICY
• POLICYHOLDER CAN ACCUMULATE FUNDS FOR FUTURE
REQUIREMENTS ON A REGULAR BASIS I.E. CHILDREN’S
EDUCATION, MARRIAGE ETC.
• EXTENDED TERM ASSURANCE COVER FOR 5 YEARS FOR
50% OF S.A. WITHOUT PAYMENT OF PREMIUM
• ADD-ON’S OR RIDERS
• OPTION FOR ADDITIONAL BENEFITS
• ACCIDENT AND DISABILITY BENEFIT
• CRITICAL ILLNESS BENEFIT
• MAJOR SURGICAL ASSISTANCE
• LEVEL TERM ASSURANCE
• DURING TENURE OF EXTENDED LIFE COVER, NO RIDER
BENEFIT AVAILABLE
Principles of Insurance- Dr. V. M. Tidake 35

36. ICICI PRU FOREVER LIFE
• REGULAR INCOME FOR LIFE AFTER PRESCRIBED DATE
• LIFE COVER DURING THE DEFERMENT PERIOD
• OPTIONS
• LIFE TIME ANNUITY
• LIFE ANNUITY CERTAIN FOR 5, 10, 15 YEARS
• LIFE ANNUITY WITH RETURN OF PURCHASE PRICE
• JOINT LIFE, LAST SURVIVOR ANNUITY
• ADD-ON’S OR RIDERS – ONE CAN BE CHOSEN
• ACCIDENT AND DISABILITY BENEFIT
• MAJOR SURGICAL ASSISTANCE
• LEVEL TERM INSURANCE
Principles of Insurance- Dr. V. M. Tidake 36

37. • ICICI PRU CASH BANK
• THREE-IN-ONE COMBINING SAVINGS, LIQUIDITY AND
PROTECTION
• TERM OF 15 OR 20 YEARS
• SURVIVAL BENEFIT AT REGULAR INTERVALS
ADD-ON’S OR RIDERS
• ACCIDENT AND DISABILITY BENEFIT
• CRITICAL ILLNESS BENEFIT
• MAJOR SURGICAL ASSISTANCE
• LEVEL TERM INSURANCE
Principles of Insurance- Dr. V. M. Tidake 37

38. • PROTECTION PLANS
• THE PRU LIFE GUARD OR TERM LEVEL ASSURANCE
• DEATH RISK COVERAGE
• NO MATURITY BENEFITS IN CASE OF SINGLE PREMIUM LEVEL
TERM POLICY
ADD-ON’S OR RIDERS
• ACCIDENT AND DISABILITY BENEFIT
• CRITICAL ILLNESS BENEFIT
• MAJOR SURGICAL ASSISTANCE
• LEVEL TERM INSURANCE
Principles of Insurance- Dr. V. M. Tidake 38

39. BIRLA SUN LIFE INSURANCE
COMPANY LTD.
• FLEXI SAVE PLUS ENDOWMENT PLAN:
• PREMIUM FOR A FIXED DURATION OR IN A SINGLE LUMP SUM
• BENEFIT OF INSURANCE COVER AS ALSO INVESTMENT TO
HELP SAVINGS GROW – BONDS / SECURITIES
• LOAN FACILITY UPTO 90% OF THE TOTAL POLICY VALUE ON
PAYMENT OF INTEREST AT FIXED RATE
• FACILITY OF WITHDRAWAL FROM 3RD POLICY ANNIVERSARY –
CAN CLOSE THE PLAN EARLIER – NO SURRENDER CHARGES
AFTER 4TH YEAR.
Principles of Insurance- Dr. V. M. Tidake 39

40. • FLEXI CASH FLOW MONEY BACK
PLAN:
• FIXED TERM POLICY WITH PERIODIC
PAYBACK AT FIXED INTERVALS
• OFFERS FLEXIBILITY TO CHOOSE
BETWEEN THE INVESTMENT OPTION,
AUTOMATIC PREMIUM PAYMENT,
DURATION OF THE PLAN ETC.
• OTHER BENEFITS AS IN FLEXI SAVE PLUS
ENDOWMENT PLAN
Principles of Insurance- Dr. V. M. Tidake 40

41. • FLEXI LIFE LINE-WHOLE LIFE PLAN
• HIGHER RETURN AND SECURITY TO
FAMILY
• MEMBERS TO KEEP PAYING PREMIUM
AND ENJOY THE BENEFIT OF SAVINGS
AND LIFE INSURANCE
• OFFERS THE FLEXIBILITY TO CHOOSE
THE PREMIUM PAYMENT INVESTMENT
OPTION, DURATION ETC.Principles of Insurance- Dr. V. M. Tidake 41

42. BAJAJ ALLIANZ LIFE INSURANCE CO.
LTD.
• GROUP CREDIT CARE PLAN (EMPLOYER – EMPLOYEE):
• GROUP TERM INSURANCE SCHEME PROVIDING BASIC LIFE
INSURANCE PROTECTION TO EMPLOYEES WHO HAVE TAKEN
LOAN FROM EMPLOYER
• COVERING RISK OF OUTSTANDING LOAN IN CASE OF
PREMATURE DEATH
• ONE POLICY DOCUMENT – TO THE EMPLOYER
• ACCIDENTAL DEATH BENEFIT – ADDITIONAL AMOUNT
EQUAL TO LIFE COVER GRANTED – TOTAL ACCIDENT COVER
LIMIT 10 LACS
• ACCIDENTAL PERMANENT TOTAL DISABILITY BENEFIT –
PAYMENT OF AN AMOUNT EQUAL TO LIFE COVER GRANTED
TOTAL ACCIDENTAL DISABILITY COVER LIMIT – 10 LACSPrinciples of Insurance- Dr. V. M. Tidake 42

43. GROUP RISK CARE PLAN
(EMPLOYER – EMPLOYEE)
• RISK COVERAGE
• LIFE INSURANCE BENEFIT FOR ALL
MEMBERS
• ONE POLICY DOCUMENT TO THE
EMPLOYER
• ACCIDENTAL DEATH BENEFIT
• ACCIDENTAL PERMANENT TOTAL
DISABILITY BENEFITSPrinciples of Insurance- Dr. V. M. Tidake 43

44. • GROUP CREDIT CARE PLAN (NON
EMPLOYER – EMPLOYEE)
• GROUP TERM INSURANCE SCHEME TO PEOPLE HAVING
AVAILED A LOAN FROM AN INSTITUTION OR CO-OPERATIVE
• COVERS RISK OF OUTSTANDING LOAN
• ONE POLICY DOCUMENT TO THE INSTITUTION OR CO-
OPERATIVE
• FACILITY OF ENHANCEMENT OF COVER BY ADDING
ACCIDENTAL DEATH BENEFIT / ACCIDENTAL PERMANENT
TOTAL DISABILITY BENEFIT.
Principles of Insurance- Dr. V. M. Tidake 44

45. • GROUP RISK CARE PLAN (NON
EMPLOYER – EMPLOYEE)
• BASIC LIFE INSURANCE PROTECTION
TO GROUP MEMBERS
• COVERS RISK OF DEATH – ALL
MEMBERS OF THE SCHEME
• ONE POLICY DOCUMENT TO THE
GROUP POLICYHOLDER
• FACILITY OF ENHANCEMENT OF
COVER – ACCIDENTAL DEATH
BENEFIT / ACCIDENTAL PERMANENT
– TOTAL DISABILITY BENEFIT.Principles of Insurance- Dr. V. M. Tidake 45

46. •TERM CARE PLAN –
• TERM INSURANCE PLAN – LIFE
COVER WITH RETURN OF
PREMIUM ON MATURITY
• LIFE INSURANCE COVER AT LOW
COST
• TWO PREMIUM PAYMENT
OPTIONS-
A. REGULAR PREMIUM PAYMENT
THROUGHOUT THE SELECTED
TERM
B. SINGLE PREMIUM PAYMENT
Principles of Insurance- Dr. V. M. Tidake 46

47. • OPTION TO CHOOSE UPTO 5
ADDITIONAL BENEFITS
• ECONOMY
• PROTECT – 3 IN-BUILT ADDITIONAL BENEFITS
• ACCIDENTAL DEATH BENEFIT
• ACCIDENTAL PERMANENT TOTAL / PARTIAL DISABILITY BENEFIT
• WAIVER OF PREMIUM BENEFIT
• HEALTH
• CRITICAL ILLNESS BENEFIT
• HOSPITAL CASH BENEFIT
• TOTAL – PROVIDING 5 IN-BUILT BENEFITS OF ‘PROTECT’ &
‘HEALTH’.
Principles of Insurance- Dr. V. M. Tidake 47

48. • RISK CARE PLAN:
• A PURE TERM INSURANCE PLAN – VERY ECONOMICAL
• OFFERS COVER AT THE LOWEST POSSIBLE COST
• NO SURVIVAL BENEFIT
• LIFE TIME CARE PLAN:
• A LIFE TIME ENDOWMENT PLAN WITH PROFITS
• 4 DIFFERENT PLAN TYPE – ECONOMY, PROTECT HEALTH
AND TOTAL PLAN
Principles of Insurance- Dr. V. M. Tidake 48

49. •SAVE CARE PLAN
• ENDOWMENT PLAN WITH PROFITS FOR
A SPECIFIED PERIOD TO MEET PLANNED
EXPENDITURES LIKE EDUCATION /
WEDDING OF CHILDREN
• COMES IN 4 TYPES – ECONOMY SINGLE
PREMIUM PLAN, ECONOMY PLAN,
PROTECT PLAN, HEALTH PLAN
Principles of Insurance- Dr. V. M. Tidake 49

50. PRODUCTS IN OVERSEAS MARKET
• TERM INSURANCE - FOR DIFFERENT SPECIFIED PERIOD-
• RENEWABLE AND NON-RENEWABLE
• CONVERTIBLE AND NON-CONVERTIBLE
• TWO OTHER FORMS-
• LEVEL TERM INSURANCE – PROVIDES SPECIFIED AMOUNT OF
COVERAGE FOR THE ENTIRE PERIOD OF POLICY
• DECREASING TERM LIFE INSURANCE
Principles of Insurance- Dr. V. M. Tidake 50

51. UNIVERSAL LIFE INSURANCE
• VARIATION OF WHOLE LIFE, THE PURE INSURANCE PART
(THE TERM PORTION) IS SEPARATED FROM THE
INVESTMENT (CASH PORTION)
• INVESTMENT PORTION INVESTED IN MONEY MARKET
FUNDS
• CASH VALUE PORTION IS SET UP AS AN ACCUMULATION
FUND TO WHICH INVESTMENT INCOME IS CREDITEDPrinciples of Insurance- Dr. V. M. Tidake 51

52. • DEATH BENEFIT (TERM INSURANCE) IS PAID OUT OF
ACCUMULATION FUND
• THE CASH VALUE OF UNIVERSAL LIFE INSURANCE GROWS
AT VARIABLE RATE
• THE INSURED CAN VARY HIS ANNUAL DEATH BENEFIT AND
THE ANNUAL PREMIUM
• PROVISION FOR MAKING PARTIAL SURRENDER AND TAKE
POLICY LOAN AGAINST CASH VALUE
• WHEN EARNINGS ARE GOOD, POLICY OWNER CAN PUT
MORE MONEY IN THE CASH PORTION OF THE POLICY
• NORMALLY THERE IS GUARANTEED MINIMUM INTEREST
RATE
• A FEW OTHER OPTIONSPrinciples of Insurance- Dr. V. M. Tidake 52

53. • VARIABLE LIFE INSURANCE
• A FORM OF WHOLE LIFE INSURANCE – TERM PORTION; PREMIUM
TOWARDS ADMINISTRATIVE EXPENSES; PART TOWARDS
INVESTMENT OR CASH VALUE PORTION
• THE INSURED MAY SELECT TO INVEST THE FUNDS IN VARIOUS
INVESTMENTS : STOCKS, BONDS, MF’S. HE MAY ONLY CHOOSE
FROM INVESTMENT VEHICLES FROM THE INSURANCE COMPANIES
PORTFOLIO.
• OPTION TO SWITCH INVESTMENT VEHICLES A FEW TIMES
• IT IS EXPENSIVE – COMMISSION AND SERVICE FEE IS HIGH.
• VALUE OF DEATH BENEFIT MAY FLUCTUATE UP OR DOWN
DEPENDING ON THE PERFORMANCE OF THE INVESTMENT
PORTION. HOWEVER, DEATH BENEFIT CAN NEVER FALL BELOW A
DEFINED LEVEL.Principles of Insurance- Dr. V. M. Tidake 53

54. • WHOLE LIFE INSURANCE PRODUCTS IN FOREIGN MARKETS
• PART PREMIUM FOR INSURANCE; SMALL PART TOWARDS ADMIN.
EXPENSES; BALANCE FOR INVESTMENT
• INSURANCE COVERAGE FOR ENTIRE LIFE
• PREMIUM THROUGHOUT LIFE OR SELECTED TERM (10, 20, 30 YEARS)
• PROVISION FOR SINGLE PREMIUM
• CASH VALUE PORTION BELONGS TO INSURED; CAN TAKE LOAN OR CASH;
INTEREST ON ACCUMULATION FUND IS TAX FREE
• PREMIUMS ARE FIXED REGARDLESS OF THE AGE OR HEALTH OF THE
POLICY OWNER.
• INVESTMENT VEHICLES ARE GENERALLY BONDS AND MORTGAGES
Principles of Insurance- Dr. V. M. Tidake 54

55. • PROGRESSIVE PROTECTION POLICY
• DESIGNED TO ADAPT TO CHANGING CIRCUMSTANCES
• LUMP SUM IN THE EVENT OF DEATH / TERMINAL ILLNESS
• NO CASH-IN-VALUE; PURELY FOR PROTECTION; NO
INVESTMENT
• PROVISION FOR INCREASE / DECREASE IN COVER AT ANY TIME
OTHER THAN THE FIRST YEAR
• OPTION TO HAVE THE POLICY INCREASE AUTOMATICALLY
EVERY YEAR
• OPTION FOR MODE OF PAYMENT OF PREMIUM
Principles of Insurance- Dr. V. M. Tidake 55

56. THANK YOU
Principles of Insurance- Dr. V. M. Tidake 56