LIFE INSURANCE PRODUCTS

CHAPTER NO 5

UNIQUENESS OF LIFE INSURANCE PRODUCTS

LIFE INSURANCE PRODUCT / POLICY IS INTANGIBLE. IT CANNOT BE VIEWED OR DISPLAYED LIKE ANY OTHER PRODUCT.

IN ORDER TO SELL A PRODUCT A THOROUGH KNOWLEDGE OF THE

BENEFITS OFFERED HAVE TO BE MADE KNOWN TO THE BUYER.

AN IN-DEPTH STUDY OF THE PRODUCTS AND THE BENEFITS HAS TO BE MADE BEFORE, MARKETING THE LIFE INSURANCE PRODUCTS.

FACTORS AFFECTING THE NATURE OF INSURANCE TO BE OFFERED•PERSON TO BE INSURED

•SUM TO BE ASSURED

• CONTINGENCY AT WHICH SUM ASSURED IS PAYABLE AND HOW?•TERM OF THE PLAN •FREQUENCY OF PAYMENT OF PREMIUMS•INCREASING SUM ASSURED DUE TO PARTICIPATION IN SURPLUS & BONUS•DECREASING SUM ASSURED AS IN MORTGAGE REDEMPTION PLAN (PLAN 52)

•ADDITIONAL BENEFITS LIKE RIDERS ETC. •IRDA REGULATIONS

BASIC TYPES OF INSURANCE COVER

• TERM ASSURANCE BENEFIT PAYABLE ONLY ON DEATH• PURE ENDOWMENT BENEFIT PAYABLE ONLY ON SURVIVAL • ANNUITIES-IMMEDIATE & DEFFERED BENEFIT PAYABLE IN SERIES RIDERS BENEFITS PAYABLE AS “ADD

ONS”(ADDITIONAL COVER)• FREE COVER BENEFIT PAYABLE AFTER PAYMENT OF

PREMIUM CEASES

TAILOR MADE OFFERS

PLAN COMBINATION OF …….

WHOLE LIFE POLICY

TERM ASSURANCE

WHERE THE TERM CEASES ON DEATH

ENDOWMENT POLICY

TERM ASSURANCE

PURE ENDOWMENT

DOUBLE ENDOWMENT

TERM ASSURANCE

DOUBLE THE VALUE OF PURE ENDOWMENT

MONEY BACK/ ANTICIPATED ENDOWMENT

INCREASING TERM ASSURANCE

PURE ENDOWMENT FOR 5,10,15,20 TERMS

COMPARITIVE STUDY OF PLANS

WHOLE LIFE• PREMIUM PAYING

TERM(PPT) IS TILL DEATH

• PPT CAN BE LIMITED• LIMITED PAYMENT

SINGLE PREMIUM• CONVERTIBLE TERM

ASSURANCE

• MAY BE WITH PROFIT OR WITHOUT PROFIT

ENDOWMENT • PPT IS SPECIFIED• PPT CAN BE LIMITED

(LESSER THAN TERM)• SUM ASSURED IS

PAYABLE AT INTERVALS….

….SURVIVAL BENEFITS• SUM ASSURED PAYABLE

FOR MARRIAGE AND IN INTERVALS FOR EDUCATION

• MAY BE WITH PROFIT OR WITHOUT PROFIT

TERM ASSURANCE

AFTER PRIVATISATION OF INSURANCE SECTOR, TERM ASSURANCE HAS GAINED POPULARITY AS IT IS A LOW COST INSURANCE EXAMPLES-

1. ANMOL JEEVAN (PLAN 822) 2. AMULYA JEEVAN (PLAN 823) This Plan Has Grown Very Popular In

The Insurance Market Recently.

Whole life plans

1. NEW JEEVAN ANAND PLAN [PLAN 815] A Combination Of Whole Life And

Endowment. Premiums Are Payable Through Out The Term .

One Sum Assured Is Payable At Maturity

& The Second Sum Assured Is Payable On

Death

FREE INSURANCE COVER AFTER MATURITY

MONEY BACK PLANS

Combination Of ---- INCREASING TERM ASSURANCE & PURE ENDOWMENT WITH DIFFERENT TERMS-IE.

5,10,15,20,25… Amounts Received May Be Invested in Mutual

Funds, Income- Bonds Growth Funds, Fixed Deposits,

Tecnology Stocks Etc.

MONEY BACK PLANS 820-20-15 821-25-20

Survival Benefits Payable At Ihe Intervals of Every Five Years

CHILDREN’S POLICIESCHILDREN ARE INSURED ONLY IN INDIA DUE TO

LOVE AND AFFECTIONThe Policies can be---Risk Plans Here the commencement of risk starts at

age 7 or two years after the policy commences ,whichever is later.

Plans can be given and special plans like 1. Single Premium Endowment ( Plan 817)

RIDERSIT IS A BENEFIT GIVEN IN ADDITION TO THE

BASIC INSURANCE EXAMPLES…

CRITICAL ILLNESS RIDER Additional Benefit

for Certain Diseases Granted

PREMIUM WAIVER BENEFITS The Payment of

Future Premium Is Waived on Happening of

a Predefined Event, As Stated in the Critical

Illness Rider

TERM ASSURANCE RIDER An Additional Term

Insurance Given up to the Basic Sum Assured

or 25 Lakhs Whichever Is Less

CRITICAL ILLNESS RIDER

Critical Illness Sum assured will be payable on the life assureds surviving for a period of 28 days from the date of occurrence of any of the following critical illness

• Heart Attack• Stroke,Cancer• Kidney failure & Major Organ Transplant• Paralysis, 3rd Degree Burns & Blindness• Coronary Artery By-pass Surgery• Heart Valve Replacement Or Repair &Aorta

Graft Surgery It Is Allowed For A Maximum Sum assured upto

5 Lakhs Under All Policies & Up To Age 60. Only Standard lives are covered for Critical

Illness

ANNUTIES

ANNUTIES ARE SAME AS PENSIONS

ANNUTIES ARE REVERSE OF LIFE

INSURANCE

IN AN ANNUTY A SERIES OF

PAYMENT IS RECEIVED, IN RETURN

OF THE SPECIFIED CAPITAL

INVESTED.S

ANNUTIES MAY BE IMMEDIATE DEFERREDSTARTS IMMEDIATELY STARTS AT A

SPECIFIED FUTURE

DATEANNUTIES MAY BE-------1. LIFE ANNUTIES PAYABLE TILL DEATH 2. ANNUITY CERTAIN PAYABLE FOR A SELECTED

PERIOD IRRESPECTIVE OF DEATH OF THE ANNUTANT

3. ANNUITY CERTAIN AND THEREAFTER FOR LIFE4. JOINT LIFE LAST SURVIVOR5. ANNUITY WITH RETURN OF PURCHASE PRICE THE FREQUENCY OF ANNUITY MAY BE

MONTHLY QUARTERLY, HALF YEARLY OR YEARLY.

Business oriented products

1.KEYMAN INSURANCE2.PARTNERSHIP

INSURANCE3.EMPLOYER -EMPLOYEE

INSURANCE SCHEME

KEY MAN INSURANCE

KEY MAN INSURANCE POLICIES ARE OFFERED TO

KEY

PERSONS IN A COMPANY• The Company Is the Proposer.• The Company Pays the Premiums Against the

Policy Issued to Certain Persons Whose Absence Would Cause a Considerable Loss to the Profits of the Company.

• The Profit of the Company for the Last Three Years Is Taken Into Account

• A Key Man Questionnaire Has to Be Completed Which Establishes the Importance of the Services of the Key Persons to the Company

• Only Term Plans Are Offered.

EMPLOYER EMPLOYEE INSURANCE

• AN EMPLOYER PROPOSES INSURANCE COVER FOR THE BENEFIT OF THE EMPLOYEE AND HIS KIN.

• AFTER THE POLICY HAS BEEN ISSUED THE EMPLOYER ASSIGNS THE POLICY IN FAVOUR OF THE EMPLOYEE.

• THE PREMIUMS ARE PAID BY THE EMPLOYER WHICH ARE SHOWN AS BUSINESS EXPENSES AND QUALIFY FOR TAX REBATE

SALARY SAVING SCHEME POLICIES

• SSS POLICIES CATER TO NEED OF THE WORKING CLASS.

• PAYMENT OF PREMIUM BECOMES EASIER

WITHOUT DEFAULT• THE INSURER RECEIVES ONE

REMITTANCE OF MANY WORKERS THEREBY REDUCING THE ADMINISTRATIVE COST AND SO YEARLY PREMIUM RATES ARE CHARGED FOR MONTHLY COLLECTIONS ALSO

• THE AGENT BENFITS AS THE CHANCE OF LAPSES ARE LESS

PENSION PLANS

• NEW JEEVAN NIDHI- PLAN 818

• NEW JEEVAN AKSHAY- VI- PLAN 189

THANK YOU

M. J. MALIKS.B.A.

836 B.O.AHMEDABAD D.O.

09879094925lic.malik@gmail.com