money back policy

Money Back Policy

About the Report

The present study is titled as “A project report on Money Back

Policies”. The study is made with special reference to LIC.

Objective of the study:

To study about the need for the Life Insurance.

To study about the Money Back Policies and its types.

Terms and Conditions of the study.

Advantages and Disadvantages of the study.

Index

CH. Topic Pg.No

1Introduction gives introduction to the topic and to the

report.

5-11

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2Gives an overview on LIC – A profile of the LIC. 12-19

3Deals with theoretical view of the topic. 22-26

4Deals with the different policies by LIC. 27-58

5Concludes the project study. 59

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CHAPTER-1

INTRODUCTION

As a measure of providing protection against financial losses caused

by the premature death of breadwinner, life insurance has no parallel

or substitute.

There are two primary reasons why people purchase life insurance.

The better of the two reasons is to provide a death benefit (i.e., some

degree of financial assistance to other persons – usually family

members – when the insured dies). The other reason is to provide

savings, particularly for retirement.

Life insurance is often considered as the best estate planning “fuel”. It

can provide liquidity, help in business planning (“key person”

insurance), and provide substantial death benefits. The value for such

purposes is calculated in a different way, under ‘business insurance’.

The purpose of life insurance for most people is to protect their

beneficiaries’ standard of living in the event of and timely death of a

wage earner. Life insurance ensures that when the life assured dies,

his beneficiaries will have the financial resources in place to protect

the future income and pay for immediate and future financial

obligations. Without life insurance to meet the deficit, families can be

financially burdened or even devastated at the time of bread winners’

death.

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There are 4 main types of insurance policies: -

1. Term insurance

2. Whole life insurance

3. Endowment

4. Annuities

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TERM INSURANCE

Term Insurance pays a death benefit to the legal heirs if the person

insured, dies during the term of the policy. Such a policy provides

cover for a specified period only and may be described as temporary

insurance. Term insurance plans offer pure risk cover without any

element of saving. Hence they are the most inexpensive. The sum

assured is payable only if the insured dies during the selected period.

In case the insured does not die during tenure of insurance, nothing is

payable. Term insurance plans could be of the following different

types: -

a) Level term insurance: - Under this plan there is a uniform

premium and benefit throughout the term of the policy. In the

event of death anytime during the term the same sum assured is

payable. Where the term is for over a year, the renewal premium

is the same year. This policy plans is the most popular term

insurance plan mainly because of its simplicity. It is an answer to

neither a temporary need which neither increases nor decreases

over that period. For e.g., a lump sum amount which is due at

certain point time.

b) Decreasing term insurance: - Under this plan the premium is

constant throughout the term but the benefit decreases over a

period. Hence the amount payable on death depends on the

timing of the death even though the premium being paid is

constant. This plan is suited to cases where there is a temporary

need which is reducing. For e.g. where a mortgage loan has to

be repaid this reduces on a monthly or annual basis.

c) Increasing term insurance: - Under this plan the premium as

well as the benefit increase periodically. Te increases could be

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at a fixed percentage or in line with an agreed index this plans is

useful in keeping the benefits in line with the time value of

money so that inflation does not erode the value of the benefits

received.

d) Renewable term insurance: - Though term insurance is for a

fixed period a renewable term policy gives the right to renew the

policy without submitting fresh evidence of health. The new

premium however is increased to reflect the increased age of

the insured.

e) Convertible term insurance: - Such a plan includes a

conversion privilege which gives Proposer the right to convert

the policy to a permanent plan (endowment) without evidence of

the health. If such an option is exercised the premium for the

plan must be the standard rate for such a plan and the actual

age of the life insured on the date of conversion of policy

convertible policy are useful for people who have low income

today and hence cannot afford to pay high premium in the initial

years.

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WHOLE LIFE INSURANCE

Whole life insurance guarantees a death benefit cover throughout the

course of life provided the required premiums are paid. The

advantages of whole life insurance is that the policy if kept current

covers you over your entire life as opposed to term insurance that

covers you only for a certain term of years. Whole life insurance

policies pay out on the death of the assured whenever it occurs.

Premium may need to be paid throughout the life of the assured or a

lesser limited period.

ENDOWMENT INSURANCE

Pure endowment is a plan where the benefit is payable to the insured

only on survival of the specified term. Combining the features of term

assurance and pure endowment are endowment policies which out

either on the death of the assured whenever it occurs or after a fixed

number of years. Should the insured person survive the term of policy

the policy said to mature. Hence the claim under an endowment policy

may arise either by death or by maturity.

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ANNUITIES

Annuities are a for of pension in which an insurance company makes

a series of periodic payment to a person (annuitant) or his /her

dependants over a number of years (term) in return for the money

paid to the insurance company either in lump sum or in installment.

Annuities start where life insurance ends. It is called the reverse of life

insurance. Annuities stops on the death of a person where as

theoretically life insurance starts on the death of the assured.

Annuities are of two types-

Immediate annuity: - Immediate annuity begins at once or

immediately on expiry of the designed period. Immediate annuity

is purchased with a single premium called purchase price this

type of typically purchased when a person reaches retirement

age and has a lump sum to invest. If the person buying the

annuity dies during his legal heirs or nominees get the remaining

installment of the annuity.

Deferred annuity: - Under a deferred annuity plan the annuity

payments to the annuitant commence at some specified time or

specified age of the annuitant. This type of annuity can be

funded either by a single payment or regular payments. The

annuity payment starts after lapse of a selected period called the

deferment period. Other the above the following two types of

policies are also popular in India.

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Present Scenario

The Government of India liberalized the insurance sector in March

2000 with the passage of the Insurance Regulatory and Development

Authority (IRDA) Bill, lifting all entry restrictions for private players and

allowing foreign players to enter the market with some limits on direct

foreign ownership. Under the current guidelines, there is a 26 percent

equity cap for foreign partners in an insurance company. There is a

proposal to increase this limit to 49 percent. Premium rates of most

general insurance policies come under the purview of the government

appointed Tariff Advisory Committee.

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CHAPTER-2

LIC – A PROFILE

The history of life insurance in India dates back to 1818 when it was

conceived as a means to provide for English Widows. Interestingly in

those days a higher premium was charged for Indian lives than the

non-Indian lives as Indian lives were considered more risky for

coverage.

With largest number of life insurance policies in force in the world,

Insurance happens to be a mega opportunity in India. It’s a business

growing at the rate of 15-20 per cent annually and presently is of the

order of Rs 450 billion. Together with banking services, it adds about 7

per cent to the country’s GDP. Gross premium collection is nearly 2

per cent of GDP and funds available with LIC for investments are 8

per cent of GDP.

Yet, nearly 80 per cent of Indian population is without life insurance

cover, health insurance and non-life insurance continue to be below

international standards. And this part of the population is also subject

to weak social security and pension systems with hardly any old age

income security. This it self is an indicator that growth potential for the

insurance sector is immense.

A well-developed and evolved insurance sector is needed for

economic development as it provides long term funds for infrastructure

development and at the same time strengthens the risk taking ability.

It is estimated that over the next ten years India would require

investments of the order of one trillion US dollar. The Insurance

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sector, to some extent, can enable investments in infrastructure

development to sustain economic growth of the country.

With a large capital outlay and long gestation periods, infrastructure

projects are fraught with a multitude of risks throughout the

development, construction and operation stages. These include risks

associated with project implementation, including geological risks,

maintenance, commercial and political risks. Without covering these

risks the financial institutions are not willing to commit funds to the

sector, especially because the financing of most private projects is on

a limited or non-recourse basis.

Insurance companies not only provide risk cover to infrastructure

projects, they also contribute long-term funds. In fact, insurance

companies are an ideal source of long term debt and equity for

infrastructure projects. With long term liability, they get a good asset-

liability match by investing their funds in such projects.

IRDA regulations require insurance companies to invest not less than

15 percent of their funds in infrastructure and social sectors.

International Insurance companies also invest their funds in such

projects.

Insurance is a federal subject in India. There are two legislations that

govern the sector – The Insurance Act-1938 and the IRDA Act-1999.

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INSURANCE IN INDIA

The insurance sector in India has come as a full circle from being an

open competitive market to nationalization and back to a liberalized

market again. Tracing the developments in the Indian insurance sector

reveals the 360 degree turn witnessed over a period of almost two

centuries. A brief history of the Insurance sector The business of life

insurance in India in its existing from started in India in the year 1818

with the establishment of the Oriental Life Insurance Company in

Calcutta. Some of the important milestones in the life Insurance

business in India are: 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. 1956: 245 Indian and foreign insurers

and provident societies taken over by the central government and

nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956,

with a capital contribution of Rs. 5 crore from the Government of India.

The General insurance business in India, on the other hand, can trace

its roots to the Triton Insurance Ltd., the first general Insurance

Company established in the year 1850 in Calcutta by the British.

Some of the important milestones in the general insurance business in

India are:

1907: The Indian Mercantile Insurance Ltd. set up, the first company

to transact all classes of general insurance business.

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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.

1968: The Insurance Act amended to regulate investments and set

minimum solvency margins and the Tariff Advisory Committee set up.

1972: The General Insurance Business (Nationalization) Act,

1972: Nationalized the general insurance business in India with effect

from 1st January.

1973: 107 insurers amalgamated and grouped into four 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 Market

The Life Insurance market in India is an underdeveloped market that

was only tapped by the state owned LIC till the entry of private

insurers. The penetration of life insurance products was 19 percent of

the total 400 million of the insurable population. The state owned LIC

sold insurance as a tax instrument, not as a product giving protection.

Most customers were under-insured with no flexibility or transparency

in the products. With the entry of the private insurers the rules of the

game have changed.

The 12 private insurers in the life insurance market have already

grabbed nearly 9 percent of the market in terms of premium income.

The new business premiums of the 12 private players have tripled to

Rs. 1000 crore in 2002-03 over last year. Meanwhile, state owned

LIC’s new premium business has fallen.

Innovative products, smart marketing and aggressive distribution.

That’s the triple whammy combination that has enabled fledging

private insurance companies to sign up Indian customers faster than

anyone ever expected. Indians, who have always seen life insurance

as a tax saving device, are now suddenly turning to the private sector

and snapping up the new innovative products on offer.

The growing popularity of the private insurers shows in other ways.

They are coining money in new niches that they have introduced. The

state owned companies still dominate segments like endowments and

money back policies. But in the annuity or pension products business,

the private insurers have already wrested over 33 percent of the

market. And in the popular unit-linked insurance schemes they have a

virtual monopoly, with over 90 percent of the customers.

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The private insurers also seem to be scoring big in other ways – they

are persuading people to take out bigger policies. For instance, the

average size of a life insurance policy before privatization was around

Rs. 50,000. That has risen to about Rs. 80,000. But the private

insurers are ahead in this game and the average size of their policies

is around Rs. 1.1 lakh to Rs.1.2 lakh-way bigger than the industry

average.

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.

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.

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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.

Members on the Board of the Corporation

Shri. T.S. Vijayan (Chairman)

Shri. D.K. Mehrotra (Managing Director - LIC)

Shri. Thomas Mathew T (Managing Director - LIC)

Shri. Vinod Rai, Secretary (Financial Sector), Department of

Economic Affairs, Ministry Of Finance

Shri. V.P.Shetty (Chairman, IDBI)

Shri. R.K.Joshi (Chairman cum Managing Director, GIC)

Shri. Amitav Kothari (Chartered Accountant )

Shri. Sunil Kant Munjal (MD & CEO, Hero Corporate Services Ltd.)

Dr. Arvind Virmani (Principal Advisor, Planning Commission, Yojana

Bhavan)

Dr. A.Jayagovind (Director, National Law School of India )

Smt. Pushpa Girimaji (Social Activist)

Dr. (Ms.) Swati Piramal ( Director, Nicholas Piramal Ltd.)

Dr.Gautam Barua ( Director, IIT, Guwahati)

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Money Back Policy, India

Money back policy provides for periodic payments of partial survival

benefits during the term of the policy, as long as the policyholder is

alive.

They differ from endowment policy in the sense that in endowment

policy survival benefits are payable only at the end of the endowment

period.

An important feature of money back policies is that in the event of

death at any time within the policy term, the death claim comprises full

sum assured without deducting any of the survival benefit amounts,

which may have already been paid as money-back components. The

bonus is also calculated on the full sum assured.

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CHAPTER 3

MONEY BACK POLICIES – A

THEORITICAL VIEW

The story of insurance is probably as old as the story of mankind. The

same instinct 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.

However, later with the efforts of eminent people like Babu Muttylal

Seal, the foreign life insurance companies started insuring Indian

lives.

But Indian lives were being treated as sub-standard lives and heavy

extra premiums were being charged on them. Bombay Mutual Life

Assurance Society heralded the birth of first Indian life insurance

company in the year 1870, and covered Indian lives at normal rates.

Starting as Indian enterprise with highly patriotic motives, insurance

companies came into existence to carry the message of insurance

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and social security through insurance to various sectors of society.

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 1906.

Inn 1907, Hindustan Co-operative Insurance Company took its birth in

one of the rooms of the Jorasanko, house of the great poet

Rabindranath Tagore, in Calcutta. The Indian Mercantile, General

Assurance and Swadeshi Life (later Bombay Life) were some of the

companies established during the same period. Prior to 1912 India

had no legislation to regulate insurance business. In the year 1912,

the Life Insurance Companies Act, and the Provident Fund Act were

passed. The Life Insurance Companies Act, 1912, made it necessary

that the premium rate tables and periodical valuations of companies

should be certified by an actuary. But the Act discriminated between

foreign and Indian companies on May accounts, putting the Indian

companies at a disadvantage.

The first two decades of the twentieth century saw lot of growth in

insurance business. From 44 companies with total business-in-force

as Rs.22.44 crore, it rose to 176 companies with total business-in-

force as Rs.298 crore in 1938. During the mushrooming of insurance

companies many financially unsound concerns were also floated

which failed miserably. 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 was introduced in the Legislative Assembly.

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However, it was much later on the 19th of January, 1956, that life

insurance in India was nationalized. About 154 Indian insurance

companies, 16 non-Indian companies and 75 provident were

operating in India at the time of nationalization. Nationalization 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 and 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 the country, providing them adequate financial

cover at a reasonable cost.

LIC has 5 zonal offices, 33 divisional offices and 212 branch offices,

apart from its corporate office in the year 1956. Since life insurance

contracts are long term contracts and during the currency of the policy

it requires as variety of services need was felt in the later years to

expand the operations and place a branch office at each district

headquarter. Re-organization of LIC took place and large numbers of

new branch offices were opened. As a result of re-organization

servicing functions were transferred to the branches, and branches

were made accounting units. It worked wonders with the performance

of the corporation. It may be seen that from about 200.00 crores of

New Business in 1957 the corporation crossed 1000.00 crores only in

the year 1969-70, and it took another 10 years for LIC to cross

2000.00 crore mark of new business. But with re-organization

happening in the early eighties, by 1985-86 LIC had already crossed

7000.00 crore Sum Assured on new policies.

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Today LIC functions with 2048 fully computerized branch offices, 100

divisional offices, 7 zonal offices and the corporate office. LIC’s Wide

Area Network covers 100 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. LIC’s 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 SATTELITE 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 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 over one

crore policies during the current year. It has crossed the milestone of

issuing 1,01,32,955 new policies by 15th Oct, 2005, 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 up

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.

Money Back Policy

The following are the objectives of the money back policy: -

The primary purpose of the life insurance is to provide

replacement of income to the family and dependence on

premature death of the bread winner.

Life insurance can also be used as regular saving cum

protection plan for meeting long term financial goals. While

saving through other instruments as individual does not get the

benefit of protection along with saving.

Through insurance one can provide protection against

outstanding loan liability in the event of death.

Provisions for one’s own later years become increasingly

necessary, especially in changing cultural and social

environment. One can buy a suitable insurance policy, which

will provide periodical payments in one’s old age.

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.”

Money Back Policy

SOME FREQUENTLY ASKED QUESTIONS

BY INVESTOR

What is Money Back Policy?

Unlike ordinary endowment insurance plans where the survival

benefits are payable only at the end of the endowment period, money

back policies provide for periodic payments of partial survival benefits

during the term of the policy, of course so long as the policy holder is

alive.

An important feature of this type of policies is that in the event of death

at any time within the policy term, the death claim comprises full sum

assured without deducting any of the survival benefit amounts, which

may have already been paid as money-back components. Similarly,

the bonus is also calculated on the full sum assured.

How is it beneficial to me?

Under money back policies premiums can be paid as per the

insurance company’s policy. These could be quarterly, half yearly or

annually. The premiums for these policies are payable for the selected

term of years, or till death if it occurs earlier.

By buying such policies one can receive income at regular intervals

other than the risk cover it provides. Also a good amount of bonus on

the full sum assured is quite a good bargain.

Who should buy this plan?

Money Back Policy

Such plans are particular popular with individuals for whom income at

regular intervals is a necessity in addition to an insurance cover. The

minimum age is 12 years to be eligible for a Money-Back Policy.

How does the money-back policy work?

Site Ground has adopted the policy of refunding customers who

decide to stop using our services within the first 30 days of having

their shared Windows or Linux account with us. After the 30 days have

passed (e.g. if you request service cancellation on day 31) we will only

cancel your account.

Please note that Virtual Private Servers are not covered by the Money

Back Guarantee. Other excluded products are fees for dedicated

servers (including setup fees), shared hosting account setup fees as

well as ANY upgrades, extras or additional payments that have been

done after the initial purchase.

In case you are canceling a reseller account, we will subtract a $12

setup fee plus $8.95 for each of the registered domain names from

your refund.

SiteGround also reserves the right to keep a part of the domain name

registration fee. The domain name itself remains your property, and

you will be given access to a control panel, from which you are able to

change nameservers (useful when changing hosts) and WHOIS

information.

Important notice: This text contains selected information regarding the 30

day money-back guarantee and only has informative character. For more

details, please read carefully the Terms of Use for the respective product

before purchase

Money Back Policy

CHAPTER 4

MONEY BACK POLICY WITH LIC

Money back plans are a special type of endowment plans and are also

called as anticipated endowment assurance plans. Under money back

plans, survival benefits are spread over the term of the policy i.e.,

certain percentage of sum assured is paid at regular intervals. Apart

from the above death benefit continues like an endowment plan i.e.,

full sum assured shall be payable on death within the term irrespective

of earlier survival benefits.

I. Jeevan Surabhi Policy – Plan no.106

Features:

This plan was introduced in Oct 92 by LIC and is a modified version of

other money back plans offered by LIC. The difference between the

other money back plans and Jeevan Surabhi plans are that:

Maturity term is more than premium paying term.

Early and higher rate of survival benefit payment.

Risk cover increases every five years.

Special Features:

Longer policy terms & limited premium paying terms as under:

Plan No. Policy Term Premium Paying Term

106 15 years 12 years

Survival benefitsSurvival Benefits % of Basic Sum AssuredAt the end of 4 years 30At the end of 8 years 30At the end of 12 years 40At the end of 15 years Bonus

Money Back Policy

Maturity 15 years

Death Benefits:

If death occurs at anytime during the term of a policy (provided the

policy has been kept in force by payment of all premiums that had

fallen due), the basic sum assured along with the vested bonus will be

paid. The survival benefits already paid, if any, will not be deducted

from this claim amount. An additional amount (depending on the

duration of the policy) will also be paid on death under such a policy.

The additional amounts payable, at various stages are shown in the

table given below: -

Policy Parameters:

Min MaxEntry Age 14 55

Sum Assured 20000 No limitTerm 15 12

Mode of Payment Max Maturity AgePolicy loan available

Yearly, half yearly, quarterly, monthly,

salary saving scheme

70 Years No

Suitable for:

This plan holds special interest to people who besides wishing to

provide for their old age and family feel the need for lump sum

benefits at periodical intervals.

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II. Jeevan Surabhi Policy – Plan no. 107

Special Features:

Longer policy terms & limited premium paying terms as under:

Plan No. Policy Term Premium Paying Term

107 20 years 15 years

Survival benefits:Survival Benefits % of Basic Sum AssuredAt the end of 4 years 25At the end of 8 years 25At the end of 12 years 25At the end of 15 years 25At the end of 18 years NilAt the end of 20 years BonusMaturity 20 years

Death Benefits:

If the death occurs at anytime during the term of a policy (provided the

policy has been kept in force by payment at all premiums that had


paid. The survival benefits already paid, if any, will not be deducted for

this claim amount. An additional amount (depending on the duration of

the policy) will also be paid on death under such a policy.

Additional Amount to Be Paid in Case of Death for a Policy of Rs. 1000.Policy First 56th-10th 11th-15th 16th-20th

(Policy Years) (Policy Year) (Policy Year)(Policy Year)

107/20 Nil 500 1000 1500

Money Back Policy

Policy Parameters:

Min Max.Entry Age 14 50Sum Assured 20000 No limitTerm 20Mode of Payment Max Maturity Age Policy loan

available Yearly, half yearly, quarterly, monthly, salary saving scheme

70 No

Suitable for:




Money Back Policy

III. Jeevan Surabhi Policy – Plan no. 108

Features:

This plan was introduced in Oct 92 by LIC and is a modified version of

other money back plans offered by LIC. The difference between the

other money back plans and these plans is as follows: -

Maturity term is more than premium paying term.

Early and higher rate of survival benefit payment.

Risk cover increases every five years.

Special Features:

Longer policy terms & limited premium paying terms as under: -

Plan No. Policy Term Premium Paying Term108 25 years 18 years

Survival benefits:

Survival Benefits % of Basic Sum Assured

At the end of 4 years 20




At the end of 18 years Bonus

Maturity 25 years

Money Back Policy

Death Benefits:

If death occurs at anytime during the term of a policy (provided the

policy has been kept in force by payment of all premiums that had


paid. The survival benefits already paid, if any, will not be deducted for

this claim amount. An additional amount (depending on the duration of

the policy) will also be paid on death under such a policy. The

additional amounts payable, at various stages are shown in the table

given below: -

Additional Amount To Be Paid In Caw Of Death For A Policy Of

Rs.1000

Policy First 56th-10th 11th-15th 16th-20th 21st-26th

(Policy Year) (Policy Year) (Policy Year) (Policy Year)

108/25 Nil 500 1000 1500 2000

Policy Parameters:

Min MaxEntry Age 14 45Sum Assured 20000 No limitTerm 25 18 Mode of Payment Max Maturity Age Policy loan

availableYearly, half yearly, quarterly, monthly, salary saving scheme

70 Years No

Suitable for:




Money Back Policy

IV. Money back with profits – Policy – Plan no.75

Features:


benefits are payable only at the end of the endowment period, this

scheme provides for periodic payments of partial survival benefits as

follows during the term of the policy, of course so long as the policy

holder is alive.

Special Features:

In the case of a 12-year policy:

20% of the sum assured becomes payable each at the 4th and 8th

years, and the balance 60% plus the accumulated bonus at the

end of the 12-year term.

Similarly, for a policy of 15 years: 25% of the sum assured is

payable each after 5 and 10 years, and the balance 50% of the

sum assured together with the accumulated bonus at the end of

the 15th year.

In the case of a 20-year Money-Back Policy: 20% of the sum

assured becomes payable each after 5, 10, 15 years, and the

balance of 40% plus the accrued bonus become payable at the

25th year.

For a Money-back Policy of 25 years; 15% of the sum assured

becomes payable each after 5, 10, 15 and 20 years, and the

balance 40% plus the accrued bonus become payable at the 25th

year.

An important feature of this type of policies is that in the event of

death at any time within the policy term, the death claim comprises

full sum assured without deducting any of the survival benefit

Money Back Policy

amounts, which may have already been paid as money-back

components.

The extra premium for this benefit is very reasonable and well

worth it, unlike in the case of the whole life anticipated policy.

Survival benefits:

Period Sum assured for 20 years term Sum Assured for 25 years’ term

5 Years 20 Percent 15 percent10 Years 20 percent 15 percent15 Years 20 percent 15 percent20 Years 40 percent + Bonus 15 percent25 Years - 40 percent + Bonus

Policy Parameters:

Min MaxEntry Age 13 50Sum Assured 20,000 No limitTerm 20 20 Mode of Payment Max Maturity Age Policy loan

availableYearly, half yearly, quarterly, monthly, salary saving scheme

70 Years No

Suitable for:



benefits at periodical intervals. This plan meets with periodical needs

although loans are not granted under this policy. A terminal bonus is

granted though.

The basic bonus under plan is slightly lower than the rate applicable to

endowment assurances. During 1998-99, LIC issued 40.23 lakh

policies under this scheme.

Money Back Policy

V. New Money back – Policy – Plan no. 93

Special Features:


benefits are payable only at the end of the endowment period, this

scheme provides for periodic payments of partial survival benefits as

follows during the term of the policy, of course so long as the policy

holder is alive.

For a Money-Back Policy of 25 years (Table 93), 15% of the sum

assured becomes payable each after 5, 10, 15 and 20 years, and the

balance 40% plus the accrued become payable at the 25th year.


at any time within the policy term, the death claim comprises full sum


may have already been paid as money-back components. Similarly,

the bonus is also calculated on the full sum assured.

Survival benefits:

Period 75/20 Years 92/20 YearsAt the end of 5 Years 20 % 15 %At the end of 10 Years 20 % 15 %At the end of 15 Years 20 % 15 %At the end of 20 Years Balance 40 % + 15 %Accrued BonusAt the end of 25 Years Nil Balance 40 percent +

Accrued Bonus

Permanent disability:

Benefit available

Income-tax rebate

Money Back Policy

Under section 88 on premiums paid.

100% Income tax free:

Permanent disability, maturity and death claims.

Death Benefits:

Full sum assured + bonus irrespective of survival benefits taken

Death before maturity.

Natural:

Payment of full Sum assured + accrued bonus.

Accident:

Payment of double the Sum Assured + Accrued bonus (Survival

benefits already paid will not be deducted).

Policy Parameters:

Min MaxEntry Age 13 50Sum Assured 20,000 No limitTerm 25 25 Mode of Payment Max Maturity Age Policy loan

availableYearly, half yearly, quarterly, monthly, special saving scheme

70 Years No

Suitable for:

This plan holds a special interest to people who besides wishing to



VI. Jeevan Sanchaya Policy – Plan no. 123

Features:

Money Back Policy

This is a money back plan which is giving Guaranteed Addition as well

as loyalty addition instead of participating in profits of LIC.

Guaranteed Addition :

The Guaranteed Addition @ Rs.70/- per thousand Sum Assured

payable for each completed policy year (during which the policy was in

force for the full Sum Assured) will be payable at the end of the term

of the policy or earlier death of the life assured.

Loyalty Addition (Final Payment):

If the premiums are paid for at least 5 years, loyalty addition may

become available along with claim payments. The rate of loyalty

addition will be declared by the corporation depending upon the

experience with regard to Mortality, Interest & Expenses and be based

on integral number of years premiums paid.

Accident Benefit:

The Accident Benefit will be exclusively guaranteed under this plan,

subject to a maximum of Rs.5, 00,000/- only.

Special Features:

Accident Benefit:

Accident Benefit will be granted under this plan subject to the payment

of additional premium of Rs.1/- per thousand S.A. subject to an

exclusive limit of Rs.5, 00,000. The following additional benefits will

accrue. On death due to accident during the term of the contract and

provided the policy is in full force on the date of death an additional

sum equal to the basic Sum assured will be payable. On disability due

to accident, the basic sum assured will be paid in monthly installment

spread over a period of 10 years starting from first of the month

following disablement. Waiver of the premiums payable in future.

Survival benefits:

Money Back Policy

Plan 123/12 % Of Sum Assured

At the end of 4 years 20At the end of 8 years 20At the end of 12 years 60

On Maturity, the policyholder will receive the balance sum assured as

given in the above table plus the guaranteed addition and loyalty

addition (if any).

Death Benefits:

On death of the life assured during the term of the policy, the basic

Sum assured is payable irrespective of survival benefits already paid.

In addition to the basic Sum Assured, Guaranteed and Loyalty

additions if any, as per provisions herein below are also payable.

Policy Parameters:

Min MaxEntry Age 14 58Sum Assured 25000 No LimitTerm 12Mode of Payment Max Maturity Age Policy loan

availableYearly, half yearly, quarterly, monthly, salary saving scheme.

70 years No

Suitable for:




Money Back Policy

VII. Jeevan Sanchaya Policy – Plan no. 124

Features:

This is a money back plan which is giving Guaranteed Addition as well

as loyalty addition instead of participating in profits of LIC.

Guaranteed Addition:









experience with regard to Mortality, Interest & Expenses and be based

on integral number of years premiums paid.

Accident Benefit:



Special Features:

Accident Benefit:

Accident Benefit will be granted under this plan subject to the payment

of additional premium of Rs.1/- per thousand S.A. subject to an


accure. On death due to accident during the term of the contract and


sum equal to the basic Sum assured will be payable.

Money Back Policy

On disability due to accident, the basic sum assured will be paid in

monthly installment spread over a period of 10 years starting from first

of the month following disablement. Waiver of the premiums payable

in future.

Survival benefits:

Plan 123/12 % Of Sum Assured

At the end of 5 years 25At the end of 10 years 25At the end of 15 years 60



addition (if any).

Policy Parameters:



70 years No

Suitable for:




Money Back Policy

VIII. Jeevan Sanchaya Policy – Plan no.124

Features:

Jeevan Sanchaya is a money back plan which is giving Guaranteed

Addition as well as loyalty addition instead of participating in profits of

LIC.

Guaranteed Addition:









corporation’s experience with regards to mortality, interest & expenses

and is based on integral number of years’ premiums paid.

Accident Benefit:



Special Features:

Accident Benefit:

Accident Benefit will be granted under the plan subject to the payment

of additional premium of Re.1/- per thousand S.A. subject to an


accure. On death due to accident during the term of the contract and


sum equal to the basic Sum assured will be payable. On disability due

Money Back Policy

to accident, the basic sum assured will be paid, in monthly installment

spread over a period of 10 years starting from first of the month

following disablement.

Survival benefits:

Plan 125/12 % Of Sum AssuredAt the end of 5 years 20At the end of 10 years 20At the end of 15 years 20At the end of 20 years 40



addition (if any).

Death Benefits:

On death of the life assured during the term of the policy, the basic

Sum assured is payable irrespective of survival benefits already paid.

In addition to the basic Sum Assured, Guaranteed and Loyalty

additions if any, as per provisions herein below are also payable.

Policy Parameters:



70 years No

Suitable for:




Money Back Policy

IX. Jeevan Bharathi

Features

Product summary

This is a with-profits plan offered to women. It provides life insurance

cover throughout the term of the plan along with the periodic

payments on survival at specified durations during the policy term.

The plan also provides the cover against affliction of certain Female

Critical Illness and occurrence of certain Congenital Disabilities in

newly born children.

Premium:

Premiums at yearly intervals are payable throughout the term of the

policy or till earlier death. After at least two full years’ premiums have

been paid, full insurance cover is available even when premiums are

not paid for up to three years. Premium for congenital disability benefit

ceases at policy anniversary after the life assured completes the age

of 40 years.

Guaranteed Additions during the first 5 years:

During the first 5 years, Guaranteed Additions of Rs.50/- per

Rs.1000/- Sum Assured will be added to the policy at the end of each

completed year for which premium is paid.

Bonuses after the first 5 years:

This is a with-profit plan and participates in the profits of the

Corporation’s life insurance business after 5 years. It gets a share of

the profits in the form of bonuses. Simple Reversionary Bonuses are

declared per thousand Sum Assured annually at the end of each

financial year. Once declared, they form part of the guaranteed

benefits of the plan.

Money Back Policy

Benefits

Death Benefit: The Sum assured plus all vested guaranteed

additions and bonuses is payable in a lump sum upon the death

of the life assured during the policy term irrespective of the

Survival Benefit paid earlier.

Survival/Maturity Benefit: The percentage of Sum Assured as

mentioned below will be paid on survival to the end of specified

durations:

% of SA paid on survival to the end of specifies durationDuration Policy Term

15 years 20 years5 20% 20%10 20% 20%15 60% 20%20 - 40%

Female Critical Illness Benefit: An amount equal to the Basic

Sum Assured (with a limit of Rs.2 lakhs) is paid on diagnosis of

any of the specified critical illnesses.

Congenital Disability Benefit: An amount equal to 50% of the

Sum Assured (subject to a maximum of Rs.1 Lakh) will be paid

on the birth, during the policy term, of a child with any of the

specified congenital disabilities. This benefit will be available for

two children. The cover will be provided where age at entry of life

assured is 35 years or below, and will be available till the life

assured attains 40 years of age.

Supplementary/Extra Benefits: These are the optional benefits

that can be added to your basic plan for extra protection/option.

An additional premium is required to be paid for benefits.

Money Back Policy

Surrender Value: Buying a life insurance contract is a long-term

commitment. However, surrender value are available under the

plan on earlier termination of the contract.

Guaranteed Surrender Value: The policy may be surrendered

after is has been in force for 3 years or more. The guaranteed

surrender value is 30% of the basic premiums paid excluding the

first year’s premium, any extra premiums and premiums towards

Accident Benefit, Female Critical Illness Benefit and Congenital

Disability Benefit.

Company’s policy on surrenders: In practice, the company will

pay a Special Surrender Value – which is equal to or more than

the Guaranteed Surrender Value. The benefit payable on

surrender reflects the discounted value of the reduced claim

amount that would be payable on death or at maturity. This value

will depend on the duration for which premiums have been paid

and the policy duration at the date of surrender. In some

circumstances, in case of termination of the policy, the surrender

value payable may be less than the total premium paid. The

Corporation’s surrender value will be reviewed from time to time

and may change depending on the economic environment, our

experience and other factors.

Note: The above is the product summary giving the key features of the

plan. This is for illustrative purposes only. This does not represent a

contract and for details please refer to your policy document.

Money Back Policy

X. Jeevan Rekha (Now Closed for Sale)

Product summary:

This is a Money Back Whole Life plan. It provides financial protection

against death throughout the lifetime with regular flow of survival

benefits at five yearly intervals.

Features

Premium:

Premiums are payable yearly, half-yearly, quarterly, monthly or through

salary deduction, as opted by you. The premium paying terms available

are 5, 10, 15, 20, 25 years or for life. Alternatively, the premium may be

paid in one lump sum.

Bonuses:

This is a with-profit plan and participates in the profits of the

Corporation’s life insurance business. It gets a share of the profits in

the form of bonuses. Simple Reversionary Bonuses are declared per

thousand Sum Assured annually at the end of each financial year.

Once declared, they form part of the guaranteed benefits of the plan. A

Final (Additional) Bonus may also be payable provided the policy has

run for certain minimum period.

Benefits

Survival Benefits: 10% of the Basic Sum Assured will be paid

throughout your lifetime after every 5 years. First such payment

will be paid after five years from the date of commencement.

Money Back Policy

Death Benefit: The Sum Assured along with all vested bonuses is

payable in a lump sum upon the death of the life assured,

whenever it occurs.

Supplementary/Extra Benefits: These are the optional benefits that

can be added to your basic plan for extra protection/option. An

additional premium is required to be paid.

Surrender Value: Buying a life insurance contract is long-term

commitment. However, surrender values are available on the plan

on earlier termination of the contract.

Guaranteed Surrender Value: The policy may be surrendered after

it has been in force for 3 years or more. The guaranteed surrender

value is 30% of the basic premiums paid excluding the first year’s

premium. In case of a single premium policy the guaranteed

surrender value is 90% of the single premium paid.

Corporation’s policy on surrenders: In practice, the Corporation will

pay a Special Surrender Value – which is either equal to or more

than the Guaranteed Surrender Value. The benefit payable on

surrender reflects the discounted value of the reduced claim

amount that would be payable on death. This value will depend on

the duration for which premiums have been paid and the policy

duration at the date of surrender. In some circumstances, in case

of early termination of the policy, the surrender values payable

may be less than the total premium paid. The Corporation reviews

the surrender value payable under its plans from time to time

depending on the economic environment, experience and other

factors.

Money Back Policy

Note: The above is the product summary giving the key features of the plan.

This is for illustrative purpose only. This does not represent a contract and

for details please refer to your policy document.

Statutory warning:

“Some benefits are guaranteed and some benefits are variable with

returns based on the future performance of your insurer carrying on

life insurance business. If your policy offers guaranteed returns then

these will be clearly marked “guaranteed” in the illustration table on

this page. If your policy offers variable returns then the illustrations on

this page will show two different rates of assumed future investment

returns. These assumed rates of return are not guaranteed and they

are not upper or lower limits of what you might get back as the value

of your policy is dependent on a number of factors including future

investment performance.”

Illustration:Age at entry: 0 years, Premium Paying Term: 18 years, Policy term: 26 years, Sum Assured: Rs. 1, 00,000/-, Annual

Premium: Rs. 7,281/-.

End of year

Total

premiums

paid till

end of

year

Benefit on Death during the year (Rs.)

Guaranteed

Variable Total

Scenario 1

Scenario 2

Scenario 1

Scenario 2

1 8,48

80

2,00,000

2,800

15,800

73980

73980

2 16,976

02,00,000

5,600

31,600

73980

73980

3 25,464

02,00,000

8,400

47,400

73980

73980

4 33,9 0 2,00, 11, 63, 739 739

Money Back Policy

52 000 200 200 80 80

5 42,440

20000

2,00,000

14,000

79,000

73980

73980

6 50,928

02,00,000

16,800

94,800

73980

73980

7 59,416

02,00,000

19,600

1,10,600

145000

157000

8 67,904

02,00,000

22,400

1,26,400

152500

168500

9 76,392

02,00,000

25,200

1,42,200

160000

181000

10

84,880

20000

2,00,000

28,000

1,58,000

167500

193500

15

1,27,320

20000

2,00,000

42,000

2,37,000

205000

272000

20

1,69,760

20000

2,00,000

72,000

4,20,000

242500

370500

25

2,12,200

20000

2,00,000

90,000

5,25,000

287500

564500

30

2,12,200

20000

2,00,000

1,08,000

6,30,000

3,08,000

8,30,000

i) The above illustration is applicable to a non-smoker

male/female standard (from medical, life style and occupation

point of view) file.

ii) The non-guaranteed benefits (1) and (2) in above illustration

are calculated so that they are consistent with the Projected

Investment Rate of Return assumption of 6% p.a. (Scenario 1)

and 10% p.a. (Scenario 2) respectively. In other words, in

Money Back Policy

preparing this benefit illustration, it is assumed that the

Projected Investment Rate of Return that LIC will be able to

earn throughout the term of the policy will be 6% p.a. or 10%

p.a., as the case may be. The projected Investment rate of

return is not guaranteed.

iii) The main objective of the illustration is that the client is able to

appreciate the features of the product and the flow of benefits

in different circumstances with some level of quantification.

iv) Future bonus will depend on future profits and as such is not

guaranteed. However, once bonus is declared in any year and

added to the policy, the bonus so added is guaranteed.

v) The flow of benefits, in above illustrations, have been shown

for first 30 years. In practice, the benefits will continue so long

the policyholder survives.

Money Back Policy

XI. Money Back with Profit

Features

Unlike ordinary endowment insurance plans where the survival benefits

are payable only at the end of the endowment period, this scheme

provides for periodic payments of partial survival benefits as follows

during the term of the policy, of course so long as the policy holder is

alive.

In the case of a 20-year Money-Back Policy, 20% of the sum assured

becomes payable each after 5, 10, 15 and 20 years, and the balance of

40% plus the accrued bonus become payable at the 20th year.

For a Money-Back Policy of 25 years 15% of the sum assured

becomes payable each after 5,10,15 and 20 years, and the balance

40% plus the accrued bonus become payable at the 25th year.


at any time within the policy term, he death claim comprises full sum


have already been paid. Similarly, the bonus is also calculated on the

full sum assured.

Money Back Policy

XII. Bima Bachat

Benefits

What is Bima Bachat?

LIC’s Bima Bachat is a money-back policy which offers financial

security and assurance to the policy holder and his family. Bima Bachat

requires the policy holder to pay only one premium. The amount paid

for the premium depends on the duration of the policy taken and life

insurance is available till the date of maturity.

What other benefits do I receive during the specified duration of

the policy?

For a term of 9 years: The policy holder will receive 15% of the sum

assured at the end of every 3rd and 6th policy year.

For a term 12 years: The policy holder will receive 15% of the sum

assured at the end of every 3rd, 6th and 9th policy year.

Money Back Policy

For a term 15 years: The policy holder will receive15% of the sum

assured at the end of every 3rd, 6th, 9th and 12th policy year.

What additional benefits do I get upon maturity?

If the policy holder outlives the duration of the policy, at the time of

maturity, a single premium payment (excluding extra premium) is made

along with loyalty additions, if any.

How much insurance do I get?

The policy holder is insured for an amount equal to the sum assured.

What about the installment received already?

The insurance cover is irrespective of the installments received.

When am I eligible for the guaranteed surrender value?

The guaranteed surrender value is available only after completion of at

least one policy year. This value is equal to 90 % of the single premium

paid (excluding extra premium).

Money Back Policy

What other benefits does this insurance cover offer?

Bima Bachat is the only money-back policy that offers a loan facility.

The rate of interest for this will be determined from time to time by the

corporation. Presently the rate of interest is 9% p.a. payable half-yearly.

It also offers other benefits like the 15 day cooling off period, grace

period and revival.

Who is eligible for the policy? Are there other conditions or

restrictions?

The following are the requirements that one needs to be aware of

before applying for this

policy:

The person applying for the policy should have completed 15 years

and should not be older than 66 years.

· The policy will mature when the person is 75 years old.

· There is a choice of three terms to choose from (9, 12 and 15 years)

for the policy depending on the age and requirement of the applicant.

· The minimum sum that needs to be assured is Rs 20,000/- and there

is no limit on the amount that can be assured.

· It is important to note that the sum assured should be in multiples of

Rs 5000/- only.

· The policy requires the holder to pay a single premium.

Money Back Policy

Premium Payment

Single Premium

The sample premium rates are as under: -

What incentives do I get for a higher sum assured?

Let’s take an example of a 30 year old with a Bima Bachat policy for

Age Annual Premium per 1000 SA

9 12 15

15 716.40 771.35 804.00

20 717.20 771.85 804.40

25 717.55 772.25 804.95

30 718.45 773.35 806.10

35 721.05 775.75 808.55

40 725.80 780.25 812.95

45 734.10 787.60 819.60

50 746.60 797.90 828.95

55 762.65 811.95 841.75

60 784.80 831.30 859.35

65 816.25 - -

Money Back Policy

12 years. If the sum assured is Rs 45,000 then he has to pay a

premium of Rs 34800.75. But for a sum assured amount of Rs 50,000

he will have to pay a premium of Rs 36734.13 only, thus getting a 5%

rebate in premium.

Refer to the table below for other rebate percentages:

Less than Rs. 50,000 NIL

Rs. 50,000 and Less than Rs.1 lakh

5%

Rs. 1 lakh and Less than Rs.2 lakh

7%

Rs. 2 lakh and above 8%

Notes:

i) The above examples are applicable to a *standard non-smoker

male/female

(*medical condition, lifestyle and occupation)

ii) *The non-guaranteed benefits (1) and (2) in above illustration are

calculated so that they are consistent with the Projected Investment

Rate of Return assumption of 6% p.a.(Scenario 1) and 10% p.a.

(Scenario 2) respectively. In other words, in preparing this benefit

illustration, it is assumed that the Projected Investment Rate of Return

that LIC will be able to earn throughout the term of the policy will be

6% p.a. or 10% p.a., as the case may be. The Projected Investment

Rate of Return is not guaranteed.

iii) The main objective of the example is that the client is able to

appreciate the features of the product and the flow of benefits in

different circumstances with some level of quantification.

Money Back Policy

The maturity benefit is the amount shown at the end of the policy term.

Statutory warning:

“Some benefits are guaranteed and some benefits are variable with

returns based on the future performance of your Insurer carrying on

life insurance business. If your policy offers guaranteed returns then

these will be clearly marked “guaranteed” in the illustration table on

this page. If your policy offers variable returns then the illustrations on

this page will show two different rates of assumed future investment

returns. These assumed rates of return are not guaranteed and they

are not the upper or lower limits of what you might get back, as the

value of your policy is dependent on a number of factors including

future investment performance.”

Extract from section 41 of the insurance act:

(1) No person shall allow or offer to allow, either directly or indirectly,

as an inducement to any person to take out or renew or continue an

insurance in respect of any kind of risk relating to lives or property in

India, any rebate of the whole or part of the commission payable or

any rebate of the premium shown on the policy nor shall any person

taking out or renewing or continuing a policy accept any rebate except

such rebates as may be allowed in accordance with the published

prospectuses or tables of the insurer : provided that acceptance by an

insurance agent of commission in connection with a policy of life

insurance taking out by himself on his own life shall not be deemed to

be acceptance the insurance agent satisfies the prescribed conditions

establishing that he is a bona fide insurance agent employed by the

insurer.

(2) Any person making default in complying with the provisions of this

Section shall be punishable with a fine which may extend to Rs.500 / -

Money Back Policy

Note: “Conditions apply” for which please refer to the policy document or

contact our nearest branch office.

Money Back Policy

CHAPTER 5

CONCLUSION

Life Insurance Company’s are expected to be meticulous with the risk

classification as they deal with public monies. The underwriting tools

play a pivotal role in placing the risks appropriate. The main risks that

are premature death, disability and are excessive longevity. These

risks may ruin an individual as well as hi/her dependents economically

by causing the stoppage of regular income. Such a state is referred to

as “Economic Death” of an individual.

Protection through insurance may save an individual and his family

from such an economic death. The concept of insurance is based on

three principles economic, legal and actuarial/mathematical.

According to the economic principle, the loss suffered by an individual

is shared by a larger group who are facing the similar type of risk. The

legal principle restricts the members of the risk pool to enjoy the

benefit of having insurance coverage without violating the laws of the

land. The actuarial/mathematical principle enables a life insurer to

estimate the premium to be paid by each member in order to get the

required level of protection on the basis of the risk class to which an

individual belongs.

Money Back Policy

BIBLIOGRAPHY

Books and Magazine

1. INSURANCE WATCH MAGAZINE

2. INDIAN FINANCIAL SYSTEM

- BHARTI.V.PATHAK

- Dr. G. RAMESH BABU

3. Mr. Kailash Bindal (Insurance Agent LIC)

4. WEBSITE:

1. www.licindia.com

2. www.google.com

http://www.google.com/

http://www.licindia.com/

http://www.licindia.com/%00%E5%A1%B9%EF%92%81%E1%B4%BB%E4%A1%BF%E2%B2%AF%E5%B6%82%E8%97%84%E6%8C%A7%00%00%EA%AE%A5

Documents

money back policy