ENDOWMENT PLANSENDOWMENT PLANSENDOWMENT PLANSENDOWMENT PLANSPrepared by:Prepared by:

Shrikant DeshpandeShrikant Deshpande Nitesh UrweteNitesh Urwete

Dilip DhoteDilip Dhote Omraj GurunuleOmraj Gurunule

Abhilash ChandraAbhilash Chandra

Introduction of Endowment Plans

• Life insurance products are usually referred to as ‘ Plans ’ of insurance.

• Plans of insurance that provide only death cover are called Term Insurance. Those that provide only survival benefits are called Pure Endowment Plans.

• All traditional life insurance plans are combination of these two basic plans. A term insurance plan along with a pure endowment plan, when offered as a single product is called an Endowment Assurance Plan.

• A term insurance plan with unspecified period is called a Whole Life Plan.

Need Based Analysis• Who can be insured ? 1. Individual adult 2. Children ( minor ) 3. Two or more persons jointly.• What can be Sum Assured ?• In what contingency S.A. be payable ? On

death or survival.• When would the S.A. be payable ? • How would S.A. be payable ? lump sum or in

installments.• What would be the term of the policy ?

T-14 Endowment Plan• Min. age at entry- 12 yrs nbd; Max. age at entry- 65 yrs

nbd.• Max. age at maturity- 75 yrs.• Min. term – 5 yrs, Max. term- 55yrs.• Min. S.A.- 50,000 ; Max- no limit.

• Amount on maturity- S.A. + Bonus + Terminal Bonus.• On death:- 1. Natural: S.A. + Bonus for no. of years prem. Paid +

Terminal bonus. 2. Accidental : Double S.A. + Bonus for no. of yrs prem.

Paid + Terminal bonus. Acc. Benefit Max. 50 lacs.• Rider : Term Assurance & Critical illness rider available.

T- 48 Limited payment endowment (With profits)

• Min. age at entry: 12 yrs. ( NBD) Max. age at entry : 1. Regular mode - 60 yrs nbd 2. Single premium- 65 yrs nbd• Max. age at maturity- 75 yrs.• Policy term : 1. Regular mode – 15,20 & 25 yrs. 2. Single premium- 5 yrs to 50yrs.

• Min. S.A. : 50,000/- ; Max : No limit.

Contd……….

Contd….

• Premium paying term for regular mode: 1. For 15 yrs - 5 & 10 yrs. 2. For 20 yrs - 5,10 & 15 yrs. 3. for 25 yrs - 5,10,15 & 20 yrs.• Amount On maturity : S.A. + Bonus of 25 yrs. + Final Bonus. On Death :- 1. Natural – S.A. + Bonus for no. of years till death+

FAB if any. 2. Accidental Death – S.A. + Additional S.A. for DAB +

Bonus for no. of yrs till death+ FAB if any.

T- 88 Jeevan Mitra-Double Cover

• Min. age at entry : 18 yrs Max. age at entry: 50 yrs.• Max. age at maturity : 70 yrs.• Min. term : 15 yrs ; Max term 30 yrs.• Min. S.A. : 50,000 ; Max. S.A.: No limit.• Death Benefits: 1. Natural Death- Double S.A. + Bonus for no. of yrs

premium paid + Terminal bonus if any.

2. Accidental Death – Three times S.A. + Bonus for no. of yrs. Prem. Paid + Terminal bonus.

Acc. Benefit : max 50 lacs.

T- 133 Jeevan Mitra – Triple Cover

Differential Point:• Death Benefits: 1. Natural Death -Triple S.A. + Bonus for no. of

yrs prem. Paid + Terminal bonus if any. 2. Accidental Death – Four times S.A. + Bonus

for no. of yrs prem. Paid + Terminal Bonus if any.

T- 91 New Janaraksha (With Profits)

• Specially designed for workers in unorganized sectors. e.g. Daily wage earner, farmers, small businessmen• Min age at entry : 18 yrs nbd. Max age at entry : 50 yrs nbd.• Min. term: 12 yrs ; Max term 30 yrs.• Min. S.A.: 30,000 ; Max: 10,00,000.• Special feature: If at least 2 yrs prem. Have been paid, and if further

premiums are not paid, then full death cover will continue for the period of 3 yrs from date of first unpaid premium.

Cntd…

• Death benefits: 1. Natural death : S.A. + Bonus for no. of yrs.

Prem. paid + Terminal bonus if any. 2. Accidental death: Double S.A. + Bonus for

no. of yrs. Prem. paid + Terminal bonus. Acc. Benefit max 7.5 lacs

Contd…….

T-90 Marriage Endowment/

Educational Annuity

• Min. age at entry : 18 yrs lbd Max age at entry : 60 yrs.• Max age at maturity : 70 yrs.• Min term: 5 yrs ; Max term 25yrs.• Min S.A.: 50,000/- ; Max : no limit.• Death benefits: 1. Natural Death: S.A. + bonus 2. Accidental Death: S.A paid immediately (max 25lakh

incl. of all plans) + All benefits of natural death.

• On maturity : S.A. + Acc. Bonus + Terminal Bonus.• Special feature: This plan is specially designed for child’s

education/marriage. It is very ideal for parents having children less than 10 yrs of age. Term chosen should coincide with the maturity and marriageable age.

Selling Point : For endowment plan. How better than

whole life.

Long live the king, Long live the King, eat jam & butter; eat jhunka & bhakar; even if you die, Family wants u to die, Family will not suffer. So that they can eat

jam& butter.

TRUST- THY NAME IS LIC