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7/29/2019 Comparitive Analysis of Lic
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A SUMM
CAMPARATI
CORP
For the partial fulfil
Forwarded by-Prof. Govindarajan chettyS.A.T.I. MBA Dept.
M
Bar
SESSION
2010-2012
R TRAINING PROJECT ON
E STUDY OF LIFE INSUR
RATION OF INDIA
SUBMITTED BY:
Rohit Bundela
ment of Master of Business Admini
GuidedArvind k.
(Developmen
SUBMITTED TO-
A Dept., S.A.T.I., vidisha
Affiliated to
atullah University, BhopalSession 2010-2012
NCE
tration
y-hare
officer)
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CONTENTS
CERTIFICATE OF COMPANY... i
ACKNOWLEDGEMENT...ii
1- E X E C U T I V E S U M M E R Y
2- INTRODUCTION
3- RESEARCH OBJECTIVE & METHODOLOGY
4- ORIGIN OF INSURANCE
5- HISTORY OF INSURANCE
6- ORIGIN OF LIC
7- HISTORY OF LIC
8- TYPES OF LIFE INSURANCE
9- OBJECTIVE OF LIC
10- MISSION & VISION
11- BENEFITS OF LIC
12- TAX & LIFE INSURANCE
13- SPECIAL INVESTMENT NORMS OF LIC
14- LIC PROFIT PLUS MATCHING BENEFITS OF
15- NEEDS OF LIFE INSURANCE
16- OVERVIEW
17- CONCLUSION
19. BIBLOGRAPHY
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DECLARATION
I hereby declare that t SamratAshok Technological Institute, Vidisha Barkatullah University, Bhopal Master of Business Administration outcome of my own
project to any universi
DECLARATION
is project report submitted toSamratAshok Technological Institute, Vidisha affiliateBarkatullah University, Bhopal in partial fulfillmeMaster of Business Administration & this project i
work & I have not submitte
y for the award of any degree.
Rohit
M.B.A.
DECLARATION
SamratAshok Technological Institute, Vidisha toBarkatullah University, Bhopal t ofMaster of Business Administration s the
this
undela
3rdSem
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ACKNOWLEDGEMENTAny accomplishmentwork is no different.as I would like to adwere part of this prounending support riconceived. In particu Prof. GovindarajanChetty for proviencouragement and v
I also wfaculty members of Department of Management, SamratAshok Technological Institute facilities for the time
ACKNOWLEDGEMENT equires the effort of many peopl
So before we get into thick of ta few heartfelt words for the pect in numerous ways. Peopleht from the stage the projectlar, I wish to thankProf. GovindarajanChetty ing me proper guidance,luable suggestion for the report.
ish to express our sincere thanksDepartment of M anagement, SamratAshok Technological Institute for extending thecompletion of the report.
Rohit
M.B.A.
ACKNOWLEDGEMENT and this
he thingsople whoho gave
dea was Prof. GovindarajanChetty constant
to all the
Department of M anagement, SamratAshok Technological Institute necessary
undela
3rdSem
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EXECUTIVE SUMMARY
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EXECUTIVE SUMMARY
Someone has greatly said that practical knowledge is far better
than classroom teaching. During this project I fully realized this and
come to know about the present real world of Insurance sector . It
includes all the activities involved in providing insurance products to the final
customers. I am pl eased to know about the consumers wan ts and
competitors activities in the real world of Insurance.
The subject of my study is to analyze the present insurance sector
and products offered by LIC by applying various tools like cold
calling and through direct interaction with customers. I have also
done research on the growth of private life insurance companies in the last five
years.
The report contains first of all brief introduction about the
company. Then it contains the current status of private insurance
companies and foreign insurance companies in India.
I also put forward recommendations of the consumers and
conclusions that will help LIC to provide consumer satisfactory
se rvices in the insurance sector.
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INTRODUCTION
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INTRODUCTION
Insurance is a social device where uncertain risks of individuals may
be combined in a group and thus made more certain - small per iodic
contributions by the individuals provide a found out of which those
who suffer losses may be reimbursed. In addition to being a means to
protect onesel f, the insurance Industry is an eff ic ient conduit for the
saving of people to be channeled towards economic growth. In India,
the Insurance Industry7 is more than150 years old. Today, it is
monopolized by two PSU's in their respective fields of life and
General Insurance. However, with the successful passage IRDA Bill
through both houses of parliament in December 1999 the sector has
been opened up to private players. This will provided much. Needed
impetus to the Industry and will improve the quality of service and
products and will al so increase employment opportunit ies. There are
still some issues their need to be sorted out, particularly with regard
to the status of intermediaries as envisaged by the Insurance
Regulatory Authority.
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RESEARCH OBJECTIVE & METHODOLOGY
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RESEARCH OBJECTIVE
The report gives the brief background of the sector and proceeds to
highlight the short comings of the existing setup and players.
The benefits of liberalized sector are enumerated. The report also
tries to identify the market potential for insurance products and the
strategy that can we employed to exploit the same. The stress is also
given on knowing the awareness level of general public.
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RESEARCH METHODOLOGY
To conduct the market research first of all it is necessary to create a
research design. A research design is basically a blue print of how a
research is to be conducted, it may include;
1.Choosing the approach
2.Determining the types of data needed.
3.Locating the source of data.
4.Choosing a method of data
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RESEARCH DESIGN
Basically there are 3 types of approaches used during the any
research:
Exploratory
Descriptive
Experimental.
During this research Descriptive and Exploratory approach is taken
into consideration because of the availability of relevant information
to describe the relationships between the marketing problem and the
available information.
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TYPES OF DATA USED:
Both primary and secondary data is used in the research.
Data Collection Methods
To conduct the market research the data is collected by two sources.
SECONDARY DATA
Secondary data is one which already exists and is collected from the
publ ished sources .
The sources from which secondary data was collected are:
Newspapers and Magazines like Economic Times, Insurance Times,
and Insurance Post.
Internet
PRIMARY DATA
The primary sources of data refer to the first hand information
Primary data is collected during the survey with the help of
Questionnaires.
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ORIGIN OF INSURANCE
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ORIGIN OF INSURANCE
About 4,500 years ago, in the ancient land of Babylonia, which is today knownas Iraq, traders used to bear risk of the caravan trade by giving loans that had to
be later repaid with interest when the goods arrived safely. In 2100 BC, the
Code of Hammurabi granted legal status to the practice. That was the
beginning of Insurance. Life insurance had its origins in ancient Rome, the
capital city of Italy where citizens formed burial clubs that would meet the
funeral expenses of its members as well as help survivors by making some
payments. As European civilization progressed, its social institutions and
welfare practices also got more and more refined. With the discovery of new
lands, sea routes and the consequent growth in trade, Medieval guilds took it
upon themselves to protect their member traders from loss on account of fire,
shipwrecks and the like. Since most of the trade took place by sea, there was
also the fear of pirates. So these guilds even offered ransom for members held
captive by pirates. Burial expenses and support in times of sickness and
poverty were other services offered. Essentially, all these revolved around the
concept of insurance or risk coverage. That's how old these concepts are,
really. In 1347, in Genoa, European maritime nations entered into the earliest
known insurance contract and decided to accept marine insurance as a practice.
Insurance as we know it today owes its existence to 17th century England. In
fact, it began taking shape in 1688 at a rather interesting place called Lloyd'sCoffee House in London, where merchants, ship-owners and underwriters met
to discuss and transact business. Back to the 17th century. In 1693, astronomer
Edmond Halley constructed the first mortality table to provide a link between
the life insurance premium and the average life spans based on statistical laws
of mortality and compound interest. In 1756, Joseph Dodson reworked the
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table, linking premium rate to age. The first stock companies to get into the
business of insurance were chartered in England in 1720. The year 1735 saw
the birth of the first insurance company in the American colonies in
Charleston, SC.
In 1759, the Presbyterian Synod of Philadelphia sponsored the first life
insurance corporation in America for the benefit of ministers and their
dependents. The 19th century saw huge developments in the field of insurance,
with newer products being devised to meet the growing needs of urbanization
and industrialization. In
1835, the infamous New York fire drew people's attention to the need to
provide for sudden and large losses. Two years later, Massachusetts becamethe first state to require companies by law to maintain such reserves. The great
Chicago fire of
1871 further emphasized how fires can cause huge losses in densely populated
modern cities. The practice of reinsurance, wherein the risks are spread among
several companies, was devised specifically for such situations. There were
more offshoots of the process of industrialization. In 1897, the British
government passed the Workmen's Compensation Act, which made it
mandatory for a company to insure its employees against industrial accidents.
In the 19th century, many societies were founded to insure the life and health
of their members, while fraternal orders provided low-cost, members-only
insurance. Even today, such fraternal orders continue to provide insurance
coverage to members as do most labour organizations. Many employers
sponsor group insurance policies for their employees, providing not just life
insurance, but sickness and accident benefits and old-age pensions. Insurance
in India can be traced back to the Vedas. For instance, yogakshema, the name
of Life Insurance Corporation of India's corporate headquarters, is derived
from the Rig Veda. The term suggests that a form of "community insurance"
was prevalent around 1000 BC and practiced by the Aryans Burial societies of
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the kind found in ancient Rome were formed in the Buddhist period to help
families build houses, protect widows and children.
Bombay Mutual Assurance Society, the first Indian life assurance society, was
formed in 1870. Other companies like Oriental, Bharat and Empire of India
were also set up in the 1870-90s. It was during the swadeshi movement in the
early
20th century that insurance witnessed a big boom in India with several more
companies being set up. The Insurance Regulatory & Development Authority,
an autonomous insurance regulator set up in 2000, has extensive powers to
oversee the insurance business and regulate in a manner that will safeguard the
interests of the insured. In 1st September 1956,under the first Indian PrimeMinister Pandit Jawaharlal Nehru, the LIC(Life Insurance Corporation) the
most trusted insurance co0mpany was established
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HISTORY OF INSURENCE
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HISTORY
The origin of insurance is very old .The time when we were not even born;
man has sought some sort of protection from the unpredictable calamities ofthe nature. The basic urge in man to secure himself against any form of risk
and uncertainty led to the origin of insurance. The insurance came to India
from UK; with the establishment of the Oriental Life insurance Corporation in
1818.The Indian life insurance company act 1912 was the first statutory body
that started to regulate
the life insurance business in India. By 1956 about 154 Indian, 16 foreign and
75 provident firm sewer been established in India. Then the central
government took over these companies and as a result the LIC was formed.
Since then LIC has worked towards spreading life insurance and building a
wide network across the length and the breath of the country. After the
liberalization the entrance of foreign players has added to the competition in
the market. The General insurance business in India, on the other hand, can
trace its roots to the Triton Insurance Company Ltd., the first general insurance
company established in the year 1850 in Calcutta by the British. In 1957
General Insurance Council, a wing of the Insurance Association of India,
frames a code of conduct for ensuring fair conduct and sound business
practices. In 1972 The General Insurance Business (Nationalization) Act,
1972 nationalized the general insurance business in India with effect from 1st
January 1973. It was after this that 107 insurer amalgamated and grouped intofour companies viz. the National Insurance Company Ltd., the New India
Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United
India Insurance Company Ltd. GIC incorporated as a company
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LIFE INSURANCE IN INDIA ORIGIN OF LIC
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LIFE INSURANCE IN INDIA ORIGIN OF LIC
Almost 4,500 years ago, in the ancient land of Babylonia, traders used to bear
risk of the caravan trade by giving loans that had to be later repaid with interest
when the goods arrived safely. In 2100 BC, the Code of Hammurabi granted
legal status to the practice. Life insurance had its origins in ancient Rome,
where citizens formed burial clubs that would meet the funeral expenses of its
members as well
as help survivors by making some payments. As European civilization
progressed, its social institutions and welfare practices also got more and more
refined. With the discovery of new lands, sea routes and the consequent growth
in trade,
Medical guilds took it upon themselves to protect their member traders from
loss on account of fire, shipwrecks and the like. Since most of the trade took
place by sea, there was also the fear of pirates. So these guilds even offered
ransom for members held captive by pirates. Burial expenses and support intimes of sickness and poverty were other services offered. Essentially, all these
revolved around the concept of insurance or risk coverage. That's how old
these concepts are, really.
In 1347, in Genoa, European maritime nations entered into the earliest known
insurance contract and decided to accept marine insurance as a practice.
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The first step...
Insurance as we know it today owes its existence to 17th century England. In
fact, it began taking shape in 1688 at a rather interesting place called Lloyd'sCoffee House in London, where merchants, ship-owners and underwriters met
to discuss and transact business. By the end of the 18th century, Lloyd's had
brewed enough business to become one of the first modern insurance
companies. Back to the 17th century. In 1693, astronomer Edmond Halley
constructed the first mortality table to provide a link between the life insurance
premium and the average life spans based on statistical laws of mortality and
compound interest. In 1756, Joseph Dodson reworked the table, linking
premium rate to age. The first stock
companies to get into the business of insurance were chartered in England in
1720. The year 1735 saw the birth of the first insurance company in the
American colonies in Charleston, SC. In 1759, the Presbyterian Synod of
Philadelphia sponsored the first life insurance corporation in America for the
benefit of ministers and their dependents. However, it was after 1840 that life
insurance really took off in a big way. The trigger: reducing opposition from
religious groups. The 19th century saw huge developments in the field of
insurance, with newer products being devised to meet the growing needs of
urbanization and industrialization. In 1835, the infamous New York fire drew
people's attention to the need to provide for sudden and large losses. Two yearslater, Massachusetts became the first state to require companies by law to
maintain such reserves. The great Chicago fire of 1871 further emphasized
how fires can cause huge losses in densely populated modern cities There were
more offshoots of the process of industrialization. In 1897, the British
government passed the Workmen's Compensation Act, which made it
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mandatory for a company to insure its employees against industrial accidents.
With the advent of the automobile, public liability insurance, which first made
its appearance in the 1880s, gained importance and acceptance? In the 19th
century, many societies were founded to insure the life and health of their
members, while fraternal orders provided low- cost, members-only insurance.
Even today, such fraternal orders continue to provide insurance coverage to
members as do most labor organizations. Many employers sponsor group
insurance policies for their employees, providing not
just life insurance, but sickness and accident benefits and old-age pensions.
Employees contribute a certain percentage of the premium for these policies.
Insurance in India can be traced back to the Vedas. For instance, yogakshema,the name of Life Insurance Corporation of India's corporate headquarters, is
derived from the Rig Veda. The term suggests that a form of "community
insurance" was prevalent around 1000 BC and practiced by the Aryans.
Burial societies of the kind found in ancient Rome were formed in the
Buddhist period to help families build houses, protect widows and children.
Bombay Mutual Assurance Society, the first Indian life assurance society, was
formed in
1870. Other companies like Oriental, Bharat and Empire of India were also set
up in the 1870-90s. It was during the swadeshi movement in the early 20th
century that insurance witnessed a big boom in India with several more
companies being set up. Act of 1938 that looked into investments, expenditure
and management of these companies' funds By the mid-1950s, there were
around 170 insurance companies and 80 provident fund societies in the
country's life insurance scene. However, in the absence of regulatory systems,
scams and irregularities were almost a way of life at most of these companies.
For years thereafter, insurance remained a monopoly of the public sector. It
was only after seven years of deliberation and debate - after the RN Malhotra
Committee report of 1994 became the first serious document calling for the re-
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opening up of the insurance sector to private players -- that the sector was
finally opened up to private players in 2001.
The Insurance Regulatory & Development Authority, an autonomous
insurance regulator set up in 2000, has extensive powers to oversee the
insurance business and regulate in a manner that will safeguard the interests of
the insured.
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HISTORY OF LIC
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HISTORY OF LIC
The story of insurance is probably as old as the story of mankind. The sameinstinct that prompts modern businessmen today to secure themselves against
loss and disaster existed in primitive men also. They too sought to avert the
evil consequences of fire and flood and loss of life and were willing to make
some sort of sacrifice in order to achieve security. Though the concept of
insurance is
largely a development of the recent past, particularly after the industrial era
past few centuries yet its beginnings date back almost 6000 years. Life
Insurance in its modern form came to India from England in the year 1818.
Oriental Life Insurance Company started by Europeans in Calcutta was the
first life insurance company on Indian Soil. All the insurance companies
established during that period were brought up with the purpose of looking
after the needs of European community and Indian natives were not being
insured by these companies.
Bharat Insurance Company (1896) was also one of such companies inspired by
nationalism. The Swadeshi movement of 1905-1907 gave rise to more
insurance companies. The United India in Madras, National Indian and
National Insurance in Calcutta and the Co-operative Assurance at Lahore were
established in 1911. The Life Insurance Companies Act, 1912 made it
necessary that the premium rate tables and periodical valuations of companiesshould be certified by an actuary. The Insurance Act 1938 was the first
legislation governing not only life insurance but also non-life insurance to
provide strict state control over insurance business. The demand for
nationalization of life insurance industry was made repeatedly in the past but it
gathered momentum in 1944 when a bill to amend the Life Insurance Act 1938
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was introduced in the Legislative was accomplished in two stages; initially the
management of the companies was taken over by means of an Ordinance, and
later, the ownership too by means of a comprehensive bill. The
Parliament of India passed the Life Insurance Corporation Act on the 19th of
June
1956, and the Life Insurance Corporation of India was created on 1st
September,
1956, with the objective of spreading life insurance much more widely and in
particular to the rural areas with a view to reach all insurable persons in thecountry, providing them adequate financial cover at a reasonable cost. Today
LIC
functions with 2048 fully computerized branch offices, 109 divisional offices,
8 zonal offices, 992 satellite offices and the Corporate office. LICs Wide Area
Network covers 109 divisional offices and connects all the branches through a
Metro Area Network. LIC has tied up with some Banks and Service providers
to offer on-line premium collection facility in selected cities. LICs ECS and
ATM premium payment facility is an addition to customer convenience. Apart
from on- line Kiosks and IVRS, Info Centers have been commissioned at
Mumbai, Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, New Delhi,
Pune and many other cities. With a vision of providing easy access to its
policyholders, LIC has launched its SATELLITE SAMPARK offices.
The satellite offices are smaller, leaner and closer to the customer. The
digitalized records of the satellite offices will facilitate anywhere servicing and
many other conveniences in the future. LIC continues to be the dominant life
insurer even in the liberalized scenario of Indian insurance and is moving fast
on a new growth trajectory surpassing its own past records. LIC has issued
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over one crore policies during the current year. It has crossed the milestone of
issuing 1,01,32,955 new policies by 15th Oct, 2010, posting a healthy growth
rate of 16.67% over the corresponding period of the previous year. From then
to now, LIC has crossed many milestones and has set unprecedented
performance records in various aspects of life insurance business. The same
motives which inspired our forefathers to bring insurance into existence in this
country inspire us at LIC to take this message of protection to light the lamps
of security in as many homes as possible and to help the people in providing
security to their families
Some of the important milestones in the life insurance business in India are:
1818: Oriental Life Insurance Company, the first life insurance company on
Indian soil started functioning.
1870: Bombay Mutual Life Assurance Society, the first Indian life insurance
company started its business.
1912: The Indian Life Assurance Companies Act enacted as the first statute to
regulate the life insurance business.
1928: The Indian Insurance Companies Act enacted to enable the government
to collect statistical information about both life and non-life insurance
businesses.
1938: Earlier legislation consolidated and amended to by the Insurance Act
with the objective of protecting the interests of the insuring public.
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1956: 245 Indian and foreign insurers and provident societies are taken over by
the central government and nationalized.
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TYPES OF LIFE INSURANCE
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TYPES OF LIFE INSURANCE
Life insurance may be divided into two basic classes temporary and
permanent or following subclasses term, universal, whole life and
endowment life insurance.
Term Insurance:
Term assurance provides life insurance coverage for a specified term of years
in exchange for a specified premium. The policy does not accumulate cash
value. Term is generally considered "pure" insurance, where the premium buysprotection in the event of death and nothing else.
There are three key factors to be considered in term insurance: Face amount
(protection or death benefit),
Premium to be paid (cost to the insured), Length of coverage (term).
Various insurance companies sell term insurance with many different
combinations of these three parameters. The face amount can remain constant
or decline. The term can be for one or more years. The premium can remain
level or increase. Common types of term insurance include Level, Annual
Renewable and Mortgage insurance."
Level Term policy has the premium fixed for a period of time longer than a
year. These terms are commonly 5, 10, 15, 20, 25, 30 and even 35 years. Level
term is often used for long term planning and asset management because
premiums remain consistent year to year and can be budgeted long term. At the
end of the term, some policies contain a renewal or conversion option.
Guaranteed Renewal, the insurance company guarantees it will issue a policy
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of equal or lesser amount without regard to the insurability of the insured and
with a premium set for the
insured's age at that time. Annual renewable term is a one year policy but the
insurance company guarantees it will issue a policy of equal or lesser amount
without regard to the insurability of the insured and with a premium set for the
insured's age at that time.
Another common type of term insurance is mortgage insurance, which is
usually a level premium, declining face value policy. The face amount is
intended to equal the amount of the mortgage on the policy owners residence
so the mortgage will be paid if the insured dies.
A policy holder insures his life for a specified term. If he dies before that
specified term is up (with the exception of suicide see below), his estate or
named beneficiary receives a payout. If he does not die before the term is up,
he receives nothing. However, in some European countries (notably Serbia),
insurance policy is such that the policy holder receives the amount he has
insured himself to, or the amount he has paid to the insurance company in the
past years..
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Permanent Life Insurance
Permanent life insurance is life insurance that remains in force (in-line) until
the policy matures (pays out), unless the owner fails to pay the premium when
due (the policy expires OR policies lapse). The policy cannot be canceled by
the insurer for any reason except fraud in the application, and that cancellation
must occur within a period of time defined by law (usually two years).
Permanent insurance builds a cash value that reduces the amount at risk to the
insurance company and thus the insurance expense over time. This means that
a policy with a million dollar face value can be relatively expensive to a 70
year old. The owner can access the money in the cash value by withdrawingmoney, borrowing the
cash value, or surrendering the policy and receiving the surrender value.
The four basic types of permanent insurance are whole life, universal life,
limited pay and endowment.
1. Whole life coverage:
Whole life insurance provides for a level premium, and a cash value table
included in the policy guaranteed by the company. The primary advantages of
whole life are guaranteed death benefits, guaranteed cash values, fixed and
known annual premiums, and mortality and expense charges will not reduce
the cash value shown in the policy. The primary disadvantages of whole life
are premium inflexibility, and the internal rate of return in the policy may not
be competitive with other savings alternatives. The death benefit can also be
increased through
the use of policy dividends. Dividends cannot be guaranteed and may be higher
or lower than historical rates over time. Premiums are much higher than term
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insurance in the short term, but cumulative premiums are roughly equal if
policies are kept in force until average life expectancy.
Cash value can be accessed at any time through policy "loans" and are received
"income-tax free". Since these loans decrease the death benefit if not paid
back, payback is optional. Cash values support the death benefit so only the
death benefit is paid out.
Dividends can be utilized in many ways. First, if Paid up additions is elected,
dividend cash values will purchase additional death benefit which will increase
the death benefit of the policy to the named beneficiary. Another alternative isto opt in for 'reduced premiums' on some policies. This reduces the owed
premiums by the unguaranteed dividends amount. A third option allows the
owner to take the dividends as they are paid out. (Although some policies
provide other/different/less options than these - it depends on the company for
some cases)
2. Universal life coverage:
Universal life insurance (UL) is a relatively new insurance product intended to
provide permanent insurance coverage with greater flexibility in premium
payment and the potential for greater growth of cash values. There are several
types of universal life insurance policies which include "interest sensitive"
(also known as "traditional fixed universal life insurance"), variable universal
life (VUL), guaranteed death benefit, and equity indexed universal life
insurance.
A universal life insurance policy includes a cash value. Premiums increase the
cash values, but the cost of insurance (along with any other charges assessed
by the insurance company) reduces cash values. However, with the exception
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of VUL, interest is credited on cash values at a rate specified by the company
and may also increase cash values. With VUL, cash values will ebb and flow
relative to the performance of the investment subaccounts the policy owner has
chosen. The surrender value of the policy is the amount payable to the policy
owner after applicable surrender charges, if any.
Universal life insurance addresses the perceived disadvantages of whole life
namely that premiums and death benefit are fixed. With universal life, both the
premiums and death benefit are flexible. Except with regards to guaranteed
death benefit universal life, this flexibility comes at a price: reduced
guarantees.
Depending on how interest is credited, the internal rate of return can be higher
because it moves with prevailing interest rates (interest-sensitive) or the
financial markets (Equity Indexed Universal Life and Variable Universal Life).
Mortality costs and administrative charges are known. And cash value may be
considered more easily attainable because the owner can discontinue premiums
if the cash value allows it
Option A is often referred to as a level death benefit. Generally speaking, the
death benefit will remain level for the life of the insured and premiums are
expected to be lower than policies with an Option B death benefit.
Option B pays the face amount plus the cash value. If cash values grow over
time, so would the death benefit which is payable to the insured's beneficiaries.
If cash values decline, the death benefit would also decline. Presumably option
B death benefit policies require greater premium than option A policies.
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3. Limited-pay:
Another type of permanent insurance is Limited-pay life insurance, in which
all the premiums are paid over a specified period after which no additional
premiums are due to keep the policy in force. Common limited pay periods
include 10-year, 20-year, and paid-up at age 65.
4. Endowments:
Endowments are policies in which the cash value built up inside the policy,
equals the death benefit (face amount) at a certain age. The age thiscommences is
known as the endowment age. Endowments are considerably more expensive
(in terms of annual premiums) than either whole life or universal life because
the premium paying period is shortened and the endowment date is earlier.
In the United States, the Technical Corrections Act of 1988 tightened the rules
on tax shelters (creating modified endowments). These follow tax rules as
annuities and IRAs do.
Accidental Death
Accidental death is a limited life insurance that is designed to cover the insured
when they pass away due to an accident. Accidents include anything from an
injury, but do not typically cover any deaths resulting from health problems or
suicide. Because they only cover accidents, these policies are much less
expensive than other life insurances. It is also very commonly offered as
"accidental death and dismemberment insurance", also known as an AD&D
policy. In an AD&D policy, benefits are available not only for accidental
death, but also for loss of limbs or bodily functions such as sight and hearing,
etc. Accidental death and AD&D policies very rarely pay a benefit; either the
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cause of death is not covered, or the coverage is not maintained after the
accident until death occurs. To be
aware of what coverage they have, an insured should always review their
policy for what it covers and what it excludes. Often, it does not cover an
insured who puts themselves at risk in activities such as: parachuting, flying an
airplane, professional sports, or involvement in a war (military or not).
Accidental death benefits can also be added to a standard life insurance policy
as a rider. If this rider is purchased, the policy will generally pay double the
face amount if the insured dies due to an accident. This used to be commonly
referred to as double indemnity coverage. In some cases, some companies mayeven offer triple indemnity coverage
Related Life Insurance Products
Riders are modifications to the insurance policy added at the same time the
policy is issued. These riders change the basic policy to provide some feature
desired by the policy owner. A common rider is accidental death, which used
to be commonly referred to as "double indemnity", which pays twice the
amount of the policy face value if death results from accidental causes, as if
both a full coverage policy and an accidental death policy were in effect on the
insured. Another common rider is premium waiver, which waives future
premiums if the insured becomes disabled. Joint life insurance is either a term
or permanent policy insuring two or more lives with the proceeds payable on
the first death or second death. Survivorship life: is a whole life policy insuring
two lives with the proceeds payable on the second (later) death. Single
premium whole life: is a policy with only one premium which is payable at the
time the policy is issued. Modified whole life: is a whole life policy that
charges smaller premiums for a specified period of time after which the
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premiums increase for the remainder of the policy. Group life insurance: is
term insurance covering a group of people, usually employees of a company or
members of a union or association. Individual proof of insurability is not
normally a consideration in the underwriting. Rather, the underwriter considers
the size and turnover of the group, and the financial strength of the group.
Senior and preneed products: Insurance companies have in recent years
developed products to offer to niche markets, most notably targeting the senior
market to address needs of an aging population. Many companies offer policies
tailored to the needs of senior applicants. Preneed (or prepaid) insurance
policies: are whole life policies that, although available at any age, are usually
offered to older applicants as well. This type of insurance is designedspecifically to cover funeral expenses when the insured person dies. In many
cases, the applicant signs a prefunded funeral arrangement with a funeral home
at the time the policy is applied for.
Investment policies
Some policies allow the policyholder to participate in the profits of the
insurance company these are with-profits policies. Other policies have no
rights to participate in the profits of the company, these are non-profit policies.
With-profits policies are used as a form of collective investment to achieve
capital growth. Other policies offer a guaranteed return not dependent on the
company's underlying investment performance; these are often referred to as
without-profit policies which may be construed as a misnomer.
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Investment Bonds
Pensions:Pensions are a form of life assurance. However, whilst basic life assurance,
permanent health insurance and non-pensions annuity business includes anamount of mortality or morbidity risk for the insurer, for pensions there is a
longevity risk.
A pension fund will be built up throughout a person's working life. When the
person retires, the pension will become in payment, and at some stage the
pensioner will buy an annuity contract, which will guarantee a certain pay-out
each month until death.
Annuities:
An annuity is a contract with an insurance company whereby the insured pays
an initial premium or premiums into a tax-deferred account, which pays out a
sum at pre-determined intervals. There are two periods: the accumulation
(when payments are paid into the account) and the annuitization (when the
insurance company pays out). IRS rules restrict how you take money out of an
annuity. Distributions may be taxable and/or penalize
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OBJECTIVES OF LIC
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OBJECTIVES OF LIC
Spread Life Insurance widely and in particular to the rural areas and to the
socially and economically backward classes with a view to reaching all
insurable persons in the country and providing them adequate financial cover
against death at a reasonable cost.
Maximize mobilization of people's savings by making insurance-linked
savings adequately attractive.
Bear in mind, in the investment of funds, the primary obligation to its
policyholders, whose money it holds in trust, without losing sight of the
interest of the community as a whole; the funds to be deployed to the bestadvantage of the investors as well as the community as a whole, keeping in
view national priorities and obligations of attractive return.
Conduct business with utmost economy and with the full realization that the
moneys belong to the policyholders.
Act as trustees of the insured public in their individual and collective
capacities.
Meet the various life insurance needs of the community that would arise in the
changing social and economic environment.
Involve all people working in the Corporation to the best of their capability in
furthering the interests of the insured public by providing efficient service with
courtesy.
Promote amongst all agents and employees of the Corporation a sense of
participation, pride and job satisfaction through discharge of their duties with
dedication towards achievement of Corporate Objective.
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MISSION &VISION
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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."
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BENEFITS WITH LIC
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BENEFITS WITH LIC
This is like a post office R.D. scheme. You can deposit yearly, half
yearly, Quarterly or Monthly (ECS) in LIC scheme.
Maturity received In LIC scheme is tax free under section 10-10D of
income tax act.
You can withdraw partial or full amount if necessary after 10 years.
The amount deposited in LIC is exempted under section 80C of income
tax act.
You can continue LIC scheme after 10 years. You cannot continue Post
Office scheme after 10 years.
In case of death 250 times monthly premium + total premium paid (1st
years premium & extra Premium paid) + LA, if any payable.
If you forget to take maturity at the end of 10 years. You can get return
beyond 10 years in LIC scheme.
LIC policy gives Maturity Benefit to the customer.
Auto-cover facility is a very good facility in these policies. LIC policy
gives you a Death Benefit with the investment. Time to time company
provide Bonus to the customers. Company gives Assured Benefit to the
customers.
LIC policies give Tax Benefits to the policy holders. It gives a good
Surrender Value to the clients.
LIC provide Accidental Death And Disability Benefit to policy holders.
LIC give Guaranteed Surrender Value in case of surrender the policy.
LIC provide Paid Up Value to the policy customers.
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TAX AND LIFE INSURANCE
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TAX AND LIFE INSURANCE
Taxation of life insurance in the United States
Premiums paid by the policy owner are normally not deductible for federal and
state income tax purposes. Proceeds paid by the insurer upon death of the
insured are not included in gross income for federal and state income tax
purposes; however, if the proceeds are included in the "estate" of the deceased,
it is likely they will be subject to federal and state estate and inheritance tax.
Cash value increases within the policy are not subject to income taxes unless
certain events occur. For this reason, insurance policies can be a legal and
legitimate tax shelter wherein savings can increase without taxation until the
owner withdraws the money from the policy. On flexible-premium policies,
large deposits of premium could cause the contract to be considered a
"Modified Endowment Contract" by the Internal Revenue Service (IRS), which
negates many of the tax advantages associated with life insurance. The
insurance company, in most cases, will inform the policy owner of this dangerbefore applying their premium. The tax ramifications of life insurance are
complex. The policy owner would be well advised to carefully consider them.
As always, the United States Congress or the state legislatures can change the
tax laws at any time.
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Taxation of life assurance in the United Kingdom
Premiums are not usually allowable against income tax or corporation tax,
however qualifying policies issued prior to 14 March 1984 does still attract
LAPR (Life Assurance Premium Relief) at 15% (with the net premium being
collected from the policyholder). Non-investment life policies do not normally
attract either income tax or capital gains tax on claim. If the policy has as
investment element such as an endowment policy, whole of life policy or an
investment bond then the tax treatment is determined by the qualifying status
of the policy.
Qualifying status is determined at the outset of the policy if the contract meetscertain criteria. Essentially, long term contracts (10 years plus) tend to be
qualifying policies and the proceeds are free from income tax and capital gains
tax. Single premium contracts and those run for a short term are subject to
income tax depending upon your marginal rate in the year you make a gain.
All (UK) insurers pay a special rate of corporation tax on the profits from their
life book; this is deemed as meeting the lower rate (20% in 201011) liability
for policyholders. Therefore a policyholder who is a higher rate taxpayer
(40% in 2010-11), or becomes one through the transaction, must pay tax on the
gain at the difference between the higher and the lower rate.
This gain is reduced by applying a calculation called top-slicing based on the
number of years the policy has been held. Although this is complicated, the
taxation of life assurance based investment contracts may be beneficial
compared to alternative equity-based collective investment schemes (unit
trusts, investment trusts and OEICs). One feature which especially favors
investment bonds is the '5% cumulative allowance' the ability to draw 5% of
the original investment amount each policy year without being subject to any
taxation on the amount withdrawn. If not used in one year, the 5% allowance
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can roll over into future years, subject to a maximum tax deferred withdrawal
of 100% of the premiums payable. The withdrawal is deemed by the HMRC
(Her Majesty's Revenue and Customs) to be a payment of capital and therefore
the tax liability is deferred until maturity or surrender of the policy. This is an
especially useful tax planning tool for higher rate taxpayers who expect to
become basic rate taxpayers at some predictable point in the future (e.g.
retirement), as at this point the deferred tax liability will not result in tax being
due. The proceeds of a life policy will be included in the estate for death duty
(in the UK, inheritance tax (IHT)) purposes, except that policies written in trust
may fall outside the estate. Trust law and taxation of trusts can be complicated,
so any individual intending to use trusts for tax planning would usually seekprofessional advice from an Independent Financial Adviser (IFA) and/or a
solicitor.
Pension Term Assurance
Although available before April 2011, from this date pension term assurance
became widely available in the UK. Most UK product providers adopted the
name "life insurance with tax relief" for the product. Pension term assurance is
effectively normal term life assurance with tax relief on the premiums. All
premiums are paid net of basic rate tax at 22%, and higher rate tax payers can
gain an extra 18% tax relief via their tax return.
Although not suitable for all, PTA briefly became one of the most common
forms of life assurance sold in the UK until the Chancellor, Gordon Brown,
announced the withdrawal of the scheme in his pre-budget announcement on 6
December
2011.
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SPECIAL INVESTMENT NORMS FOR LIC
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SPECIAL INVESTMENT NORMS FOR LIC
As per last weeks IRDA announcement, no insurance company can invest
more than 10% of its total fund size or 10% of the outstanding shares of theinvestee company (whichever is less) in any company . Since the
announcement the Insurance industry had been abuzz with discussions on how
this would impact the biggest Life Insurance player- LIC. Finance Ministry
resources said that IRDA is examining an option to exempt LIC's existing
investments from these norms and apply these only on its new investments. If
this option is not offered to LIC, it could impact a lot of blue chip companies
like Ranbaxy, ITC, Cipla, and L&T etc where LIC currently has a substantial
stake.
So watch this space to see what IRDA finally mandates the Insurance
behemoth
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LIC PROFIT PLUS: MATCHING BENEFITS
OF INVESTMENT AND INSURANCE
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LIC PROFIT PLUS: MATCHING BENEFITS OF
INVESTMENT AND INSURANCE
This is a unit linked endowment plan that provides complete protection andalso gathers benefits with your investment funds. The policyholder can choose
the level of cover within the limits, which will depend on the policy term
chosen, the amount of premium payable and whether the premium is payable
or collectible one time or regularly during the premium paying term.
The allocated premium will be utilized to purchase units as per the selected
fund type. The premiums can be paid regularly at the intervals or distances of
yearly, half-yearly, monthly. Four major type of investment funds are available
under the profit plus plan, including, short-term investment, bond fund,
secured fund, balanced fund. If the death of the policy holder occurs, higher of
the sum assured shall be available. On the life assured surviving the maturity
date of the contract, an amount equal to the policyholders fund value is
payable. The unit fund is subject to different charges and value of units may
increase or decrease, depending on the net asset value. The LIC profit plus
comprises of various features they are; partial withdrawals, switching, and
discontinuance of the premium. The partial withdrawals can be either in the
form of the fixed amount or else in the form of the fixed number of units.
Under the feature of switching, the policy holder may switch between the sorts
of funds for the integral fundvalue along the period of the policy term which is subject to some charges.
However, once surrendering this LIC profit plus policy, it is impossible to
restore the policy again. If your age is above 18, you may prefer for the
accident benefit that is equal to the amount of life covers subject to a minimum
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of Rs. 25,000/- and maximum of Rs. 50 lakh. If ever the death occurs due to an
accident, an additional sum equal to critical illness benefit shall be payable.
If your age lies between 18 and 50 years, you may opt for the critical illness
benefit that is equal to the life cover subject to a minimum of Rs.50,000 and
maximum of Rs. 5 lakh provided the policy term is 10 years and above. If
premiums are not paid within the grace period, policy will lapse. The same can
be revived within two years from the due date of unpaid premium. Under this
plan, risk will commence either after two years from the date of
commencement of policy or from the policy coinciding with or immediately
following the completion of seven years of age, whichever is later in case theage at entry of the life assured is less than or equal to ten years. There shall not
be any life cover during this period. The value of installment payable on the
date specified shall be subject to investment risk that is the NAV may go up or
down depending upon the performance of the fund. If you are not satisfied
with the terms and conditions of the policy, you may return the policy to us
within 15 days.
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NEED FOR LIFE INSURANCE
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NEED FOR LIFE INSURANCE
The need for life insurance comes from the need to safeguard our family. If
you care for your familys needs you will definitely consider insurance. Today
insurance has become even more important due to the disintegration of the
prevalent joint family system, a system in which a number of generations co-
existed in harmony, a system in which a sense of financial security was always
there as there were more earning members. Times have changed and the
nuclear family has emerged. Apart from other pitfalls of a nuclear family, a
high sense of insecurity is observed in it today besides, the family has shrunk.
Needs are increasing with time and fulfillment of these needs is a big questionmark. How will you be able to satisfy all those needs? Better lifestyle, good
education, your long desired house. But again - you just cannot fritter away all
your earnings. You need to save a part of it for the future too - a wise decision.
This is where
insurance helps you. Factors such as fewer number of earning members, stress,
pollution, increased competition, higher ambitions etc are some of the reasons
why insurance has gained importance and where insurance plays a successful
role. Insurance provides a sense of security to the income earner as also to the
family. Buying insurance frees the individual from unnecessary financial
burden that can otherwise make him spend sleepless nights. From the very
beginning of your life, to your retirement age insurance can take care of all
your needs. Your child needs good education to mould him into a good citizen.
After his schooling he need to
go for higher studies, to gain a professional edge over the others - a necessity
in this age where cut-throat competition is the rule. His career needs have to be
fulfilled. Insurance is a must also because of the uncertain future adversities of
life. Accidents, illnesses, disability etc are facts of life which can be extremely
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devastating. Other than the hospital location, medication bills these may run up
its the aftermath of the incident, the physical well being of the individual that
has to be taken into consideration. Will the individual be in a position to earn
as before? A pertinent question. But what if he is not? Disability can be taken
care of by insurance. Your family will not have to go through the grind due to
your present inability. Moreover, retirement, an age when every individual has
almost fulfilled his responsibilities and looks forward to relaxing can be
painful if not planned
properly. Have you considered the increasing inflation and taxes? Will your
investment offer you attractive returns under such circumstances? Will it take
care of your family after you? An insurance policy will definitely take care ofthese and a lot more. Insurance today has opened up new vistas for every
section of society. Even for the village farmer insurance holds a lot of
potential.
Considering how dependent our agricultural system is on the monsoon, the
farmer sees a dim future. The uncertainty of the monsoon too can be taken care
of by insurance. Looking at the advantages of an insurance policy a number of
farmers have gone in for insurance. Insurance has become a necessity today. It
provides timely financial as also rewards with bonuses.
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OVERVIEW
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OVERVIEW
Parties to contract
There is a difference between the insured and the policy owner (policy holder),
although the owner and the insured are often the same person. For example, if
Joe buys a policy on his own life, he is both the owner and the insured. But if
Jane, his wife, buys a policy on Joe's life, she is the owner and he is the
insured. The policy owner is the guarantee and he or she will be the personwho will pay for the policy. The insured is a participant in the contract, but not
necessarily a party to it. However, "insurable interest" is required to limit an
unrelated party from taking life insurance on, for example, Jane or Joe. Also,
most companies allow the Payer and Owner to be different, e. g., a grandparent
paying premiums for a policy on a child, owned by a grandchild [or vice
versa]. The beneficiary receives policy proceeds upon the insured's death. The
owner designates the beneficiary, but the beneficiary is not a party to the
policy. The owner can change the beneficiary unless the policy has an
irrevocable beneficiary designation. With an irrevocable beneficiary, that
beneficiary must agree to any beneficiary changes, policy assignments, or cash
value borrowing. In cases where the policy owner is not the insured (also
referred to as the celui qui vat or CQV), insurance companies have sought to
limit policy purchases to those with an "insurable interest" in the CQV. For life
insurance policies, close family members and business partners will usually be
found to have an insurable interest. The "insurable interest"
requirement usually demonstrates that the purchaser will actually suffer some
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kind of loss if the CQV dies. Such a requirement prevents people from
benefiting from the purchase of purely speculative policies on people they
expect to die.
With no insurable interest requirement, the risk that a purchaser would murder
the CQV for insurance proceeds would be great. In at least one case, an
insurance company which sold a policy to a purchaser with no insurable
interest (who later murdered the CQV for the proceeds), was found liable in
court for contributing to the wrongful death of the victim (Liberty National
Life v. Weldon, 267 Ala.171 (1957)).
Contract terms
Special provisions may apply, such as suicide clauses wherein the policy
becomes null if the insured commits suicide within a specified time (usually
two years after the purchase date; some states provide a statutory one-year
suicide clause). Any misrepresentations by the insured on the application arealso grounds for nullification. Most US states specify that the contestability
period cannot be longer than two years; only if the insured dies within this
period will the insurer have a legal right to contest the claim on the basis of
misrepresentation and request additional information before deciding to pay or
deny the claim. The face amount on the policy is the initial amount that the
policy will pay at the death of the insured or when the policy matures, although
the actual death benefit can provide for greater or lesser than the face amount.
The policy matures when the insured dies or reaches a specified age (such as
100 years old).
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Costs, insurability, and underwriting
The insurer (the life insurance company) calculates the policy prices with
intent to fund claims to be paid and administrative costs, and to make a profit.The cost of insurance is determined using mortality tables calculated by
actuaries. Actuaries are professionals who employ actuarial science, which is
based in mathematics (primarily probability and statistics). Mortality tables
are statistically-based tables showing expected annual mortality rates. It is
possible to derive life expectancy estimates from these mortality assumptions.
Such estimates can be important in taxation regulation. The three main
variables in a mortality table have been age, gender, and use of tobacco. More
recently in the US, preferred class specific tables were introduced. The
mortality tables provide a baseline for the cost of insurance. In practice, these
mortality tables are used in conjunction with the health and family history of
the individual applying for a policy in order to determine premiums and
insurability. Mortality tables currently in use by life insurance companies in
the United States are individually modified by each company using pooled
industry experience studies as a starting point. In the 1980s and 90's the SOA
197580 Basic Select & Ultimate tables were the typical reference points,
while the 2001 VBT and 2001 CSO tables were published more recently. The
newer tables include separate mortality tables for smokers and non- smokers
and the CSO tables include separate tables for preferred classes. Recent US
select mortality tables predict that roughly 0.35 in 1,000 non-smoking malesaged 25 will die during the first year of coverage after underwriting.
Mortality approximately doubles for every extra ten years of age so that the
mortality rate in the first year for underwritten non-smoking men is about 2.5
in 1,000 people at age 65.[6] Compare this with the US population male
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mortality rates of 1.3 per 1,000 at age 25 and 19.3 at age 65 (without regard to
health or smoking status). The mortality of underwritten persons rises much
more quickly than the general population. At the end of 10 years the mortality
of that 25 year- old, non-smoking male is 0.66/1000/year. Consequently, in a
group of one thousand 25 year old males with a $100,000 policy, all of average
health, a life insurance company would have to collect approximately $50 a
year from each of a large group to cover the relatively few expected claims.
(0.35 to 0.66 expected deaths in each year x $100,000 payout per death = $35
per policy).
Administrative and sales commissions need to be accounted for in order for
this to make business sense. A 10 year policy for a 25 year old non-smoking
male person with preferred medical history may get offers as low as $90 per
year for a $100,000 policy in the competitive US life insurance market. The
insurance company receives the premiums from the policy owner and invests
them to create a pool of money from which it can pay claims and finance the
insurance company's operations. The majority of the money that insurance
companies make comes directly from premiums paid, as money gained through
investment of premiums can never, in even the most ideal market conditions,
vest enough money per year to pay out claims.[citation needed] Rates charged
for life insurance increase with the insurer's age because, statistically, people
are more likely to die as they get older. Given that adverse selection can have a
negative impact on the insurer's financial situation, the insurer investigates
each proposed insured individual unless the policy is below a company-established minimum amount, beginning with the application process. Group
Insurance policies are an exception. This investigation and resulting evaluation
of the risk is termed underwriting. Health and lifestyle questions are asked.
Certain responses or information received may merit further investigation. Life
insurance companies in the United States support the Medical Information
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Bureau (MIB), which is a clearinghouse of information on persons who have
applied for life insurance with participating companies in the last seven years.
As part of the application, the insurer receives permission to obtain
information from the proposed insured's physicians. Underwriters will
determine the purpose of insurance. The most common is to protect the owner's
family or financial interests in the event of the insured's demise. Other
purposes include estate planning or, in the case of cash- value contracts,
investment for retirement planning. Bank loans or buy-sell provisions of
business agreements are another acceptable purpose. .
Life insurance companies are never required by law to underwrite or to provide
coverage to anyone, with the exception of Civil Rights Act compliance
requirements. Insurance companies alone determine insurability, and some
people, for their own health or lifestyle reasons, are deemed uninsurable. The
policy can be declined (turned down) or rated.[citation needed] Rating
increases the premiums to provide for additional risks relative to the particular
insured.[citation needed] Many companies use four general health categories
for those evaluated for a life insurance policy. These categories are Preferred
Best, Preferred, Standard, and Tobacco.[citation needed] Preferred Best is
reserved only for the healthiest individuals in the general population. This
means, for instance, that the proposed insured has no adverse medical history,
is not under medication for any condition, and his family (immediate and
extended) have no history of early cancer, diabetes, or other conditions.
Preferred means that the proposed insured is currently under medication for a
medical condition and has a family history of particular illnesses.[citation
needed] Most people are in the Standard category. citation needed Profession,
travel, and lifestyle factor into whether the proposed insured will be granted a
policy, and which category the insured falls. For example, a person who would
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otherwise be classified as Preferred Best may be denied a policy if he or she
travels to a high risk country. Citation needed Underwriting practices can vary
from insurer to insurer which provide for more competitive offers in certain
circumstances.
Death proceeds
Upon the insured's death, the insurer requires acceptable proof of death before
it pays the claim. The normal minimum proof required is a death certificate
and the insurer's claim form completed, signed (and typically
notarized).[citation needed] If the insured's death is suspicious and the policy
amount is large, the insurer may investigate the circumstances surrounding the
death before deciding whether it
has an obligation to pay the claim. Proceeds from the policy may be paid as a
lump sum or as an annuity, which is paid over time in regular recurring
payments for either a specified period or for a beneficiary's lifetime.[citation
needed]
Insurance vs Assurance
The specific uses of the terms "insurance" and "assurance" are sometimes
confused. In general, in jurisdictions where both terms are used, "insurance"
refers to providing coverage for an event that might happen (fire, theft, flood,
etc.), while "assurance" is the provision of coverage for an event that is certain
to happen.
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In the United States both forms of coverage are called "insurance", principally
due to many companies offering both types of policy, and rather than refer to
themselves using both insurance and assurance titles, they instead use just one.
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Conclusion
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Conclusion
Famous institution sponsoring a Cine Awards function stating that it
Was done to increase the brand awareness of LIC. That sounded
Like a big joke. It is time that the top level officials of LIC come out
Sometime in order to feel the pulse of the common man.
After Findings we can see about LIC features and his The tendency to take the
expedient approach and focus on the far right of the LIC spectrum, Peacetime
Contingency Operations and conduct training as usual, while briefing that the
LIC block has been checked, will lead us to a possibly fatal false sense of
security.
Instinctive behavior and ingrained training must be adjusted to fit new
circumstances. STXs must be developed locally or borrowed from units who
have already been through the training.
The probability of becoming involved in a LIC operation is high. The potential
to attract international attention, even with limited forces, is also great. Unit
shave demonstrated that with a balanced training focus and proper preparation,
many pitfalls outlined above can be avoided.
LIC is not conventional warfare. This is critical for the counterinsurgent to
understand. The insurgents violent and coercive strategy is applied so as toachieve political, civil, military and psychological results. Hence, the
counterinsurgent must counter all of these strategic elements individually. In
Corporation of India
7/29/2019 Comparitive Analysis of Lic
72/73
BIBLOGRAPHY
7/29/2019 Comparitive Analysis of Lic
73/73
BIBLOGRAPHY
Books
Insurance principles and practice- Mishra M.N. -S.Chand andCompany ltd
Indian Insurance- Narayanan H. -Jaico
Website www.Insurance.com
www.Insurance India. Com www.licindia.com
www.google.com