TYPES OF LIFE INSURANCE POLICIES IN INDIA

1

LIFE INSURANCE POLICIES IN INDIA

2

INTRODUCTION

Insurance is a contract in which an individual or entity receives financial protection or reimbursement against losses from an insurance company.

SOURCE : INVESTOPEDIA

3

MEANING• Life insurance is a contract between an insured (insurance policy

holder) and an insurer or assurer, where the insurer promises to pay a designated beneficiary a sum of money in exchange for a premium, upon the death of the insured person.

• Depending on the contract, other events such as terminal illness or critical illness can also be the reason for the payment.

• The policy holder typically pays a premium, either regularly or as one lump sum. Other expenses (such as funeral expenses) can also be included in the benefits.

SOURCE : WIKIPEDIA DREAMSTIME.COM

4

TYPES OF LIFE INSURANCE POLICIES

INSURANCE POLICIES

PURE INSURANCE

TERM PLANS

INSURANCE CUM INVESTMENT

POLICIES

WHOLE LIFE PLANS

UNIT LINKED INSURANCE MONEY BACK ENDOWMENT

PLANS

SOURCE : WWW.WEALTHWISHER.COM

5


SOURCE : WWW.WEALTHWISHER.COM

INSURANCE POLICIES

PURE INSURANCE

TERM PLANS


POLICIES

WHOLE LIFE PLANS


PLANS

6

TERM POLICYFEATURES• Covers Amount of protection against death of an

Individual for a given period.

• Insurance amount is to be paid to the Nominees in case of death

• LOW COST - Cheapest Form of Life Insurance

• CONVERTIBILTY - From Original Term Insurance Policy to Whole Life Term etc.

• CHANGES IN PREMIUM – It may either increase or decrease based on period of the policy, age etc

SOURCE : STREETDIRECTORY.COM

FEATURES

Protection against death

Insurance amount to

be paid

Low costConvertibility

Changes in premium

INSURANCE

POLICIES

PURE INSURAN

CE

TERM PLANS

INSURANCE CUM

INVESTMENT

POLICIESWHOLE

LIFE PLANS

UNIT LINKED

INSURANCE

MONEY BACK

ENDOWMENT PLANS

7

TERM POLICY

PROS / ADVANTAGES• High amount of coverage at low premium

• DEATH BENEFIT – Payable to the beneficiary when the annuitant passes away.

• TAX BENEFIT - any payment made by a tax payer on account of Term Insurance Policy will be allowed deduction as per section 80C of the Income-tax Act, 1961 with enhanced tax deduction up to Rs 1,50,000.

• RENEWABILTY – Once the policy is expired , it can be renewed with same premium and rates

SOURCE : STREETDIRECTORY.COM MONEYCONTROL MYINSURANCECLUB.COM

PROS

HIGH COVERAGE

DEATH BENEFIT

TAX BENEFIT

RENEWABILITY

INSURANCE

POLICIES

PURE INSURAN

CE

TERM PLANS

INSURANCE CUM

INVESTMENT

POLICIESWHOLE

LIFE PLANS

UNIT LINKED

INSURANCE

MONEY BACK

ENDOWMENT PLANS

8

TERM POLICYCONS / DISADVANTAGES• LIMITED TO CONVERSION PERIOD - The conversion

options for a number of term life polices expire prior to the term period’s midpoint.

• PURE INSURANCE ,NO INVESTMENT- In term insurance policy if policy holder survive to the maturity date no amount is payable( premium paid is not returned back)

• NO SURRENDER VALUE

SOURCE : WAHM.COM SELECTQUOTE.COM

CONS

PURE INSURANCE , NO

INVESTMENT

LIMITED TO CONVERSION

PERIOD

INSURANCE

POLICIES

PURE INSURAN

CE

TERM PLANS

INSURANCE CUM

INVESTMENT

POLICIESWHOLE

LIFE PLANS

UNIT LINKED

INSURANCE

MONEY BACK

ENDOWMENT PLANS

NO SURRENDER

VALUE

9

TERM POLICY PROS / CONS COMPARITIVE STUDY

PROS CONS

DEATH BENEFIT

HIGH COVERAGE

INCOME TAX BENEFIT

RENEWABILITY

PURE INSURANCE,NO

INVESTMENT

LIMIT TO CONVERSION PERIOD

NO SURRENDER VALUE

INSURANCE

POLICIES

PURE INSURAN

CE

TERM PLANS

INSURANCE CUM

INVESTMENT

POLICIESWHOLE

LIFE PLANS

UNIT LINKED

INSURANCE

MONEY BACK

ENDOWMENT PLANS

10

TERM POLICYSUITABILITY• SUITED FOR INVESTORS WITH SHORT TERM LIFE INSURANCE NEEDS (10YRS OR LESS) LIKE

1. Who cannot afford high premium2. Students who want to take education loan and bank require coverage3. Housing Loan 4. Suitable for investors who want to demarcate between risk coverage and investment options

SOURCE : EDWARDJONES.COM

INSURANCE

POLICIES

PURE INSURAN

CE

TERM PLANS

INSURANCE CUM

INVESTMENT

POLICIESWHOLE

LIFE PLANS

UNIT LINKED

INSURANCE

MONEY BACK

ENDOWMENT PLANS

11

FEATURES PROS CONS SUITABILITY

• Covers Amount of protection against death of an Individual for a given period.

• Insurance amount is to be paid to the Nominees incase of death

• LOW COST - Cheapest Form of Life Insurance

• CONVERTIBILTY - From Original Term Insurance Policy to Whole Life Term etc.

• CHANGES IN PREMIUM – It may either increase or decrease based on period of the police, age etc

• High amount of coverage at low premium

• DEATH BENEFIT – Payable to the beneficiary when the annuitant passes away.

• TAX BENEFIT - any payment made by a tax payer on account of Term Insurance Policy will be allowed deduction as per section 80C of the Income-tax Act, 1961 with enhanced tax deduction up to Rs 1,50,000.

• RENEWABILTY – Once the policy is expired , it can be renewed with same premium and rates

• LIMITED TO CONVERSION PERIOD - The conversion options for a number of term life polices expire prior to the term period’s midpoint.

• PURE INSURANCE , NO INVESTEMENT - In term insurance policy if policy holder survive to the maturity date no amount is payable( premium paid is not returned back)

•NO SURRENDER VALUE

• Suited for investors with short term life insurance needs (10YRS OR LESS) like

1.Who cannot afford high premium

2. Students who want to take education loan and bank acquires coverage

3.Housing Loan – life cover equal to value of the loan

4. Suitable for investors who want to demarcate between risk coverage and investment options

SUMMARY OF TERM POLICYINSURAN

CE POLICIES

PURE INSURAN

CE

TERM PLANS

INSURANCE CUM

INVESTMENT

POLICIESWHOLE

LIFE PLANS

UNIT LINKED

INSURANCE

MONEY BACK

ENDOWMENT PLANS

12


SOURCE : WEALTHWISHER

INSURANCE POLICIES

PURE INSURANCE

TERM PLANS


POLICIES

WHOLE LIFE PLANS


PLANS

13

WHOLE LIFE POLICY

FEATURES• These plans provide cover throughout whole life.

• Policyholder has an option to pay premiums upto certain age ,generally 80-100 yrs of age (Maturity Age)

• Premium remains constant during the entire term of the policy.

SOURCE : THEWEALTHWISHER

INSURANCE POLICIES

PURE INSURANC

E

TERM PLANS

INSURANCE CUM

INVESTMENT

POLICIESWHOLE

LIFE PLANS

UNIT LINKED

INSURANCE

MONEY BACK

ENDOWMENT

PLANS

FEATURES

COVER THROUGHOUT

WHOLE LIFE

MATURITY AGE

PREMIUM REMAIN

CONSTANT

14

WHOLE LIFE POLICY

PROS / ADVANTAGE• DEATH BENEFIT - In case of death of the Life Insured,

the nominee would get the Sum Assured + accrued Bonus.

• MATURITY BENEFIT - There is an option to withdraw the Sum Assured + accrued bonuses declared under the policy anytime after 40 years from the date of commencement of the policy provided the life insured has attained a minimum age of 80 years.( No specific maturity date)

• INCOME TAX BENEFIT-any payment made by a tax payer on account of Term Insurance Policy will be allowed deduction as per section 80C of the Income-tax Act, 1961.

• SURRENDER VALUE

SOURCE : MY INSURANCE CLUB

PROS

DEATH BENEFIT

SURRENDER VALUE

TAX BENEFIT

MATURITY BENEFIT

INSURANCE POLICIES

PURE INSURANC

E

TERM PLANS

INSURANCE CUM

INVESTMENT

POLICIESWHOLE

LIFE PLANS

UNIT LINKED

INSURANCE

MONEY BACK

ENDOWMENT

PLANS

15

WHOLE LIFE POLICY

CONS / DISADVANTAGE

SOURCE : JRC INSURANCE GROUP MONEYUNDER30

• EXPENSIVE

• LOW INTEREST RATES- Interest earned is low compared to other policies.

• INFLEXIBLE

• COMPLICATED – Only expert can tell whether this policy is a good deal.

CONS

LOW INTEREST RATES

EXPENSIVE

INFLEXIBLECOMPLICATED

INSURANCE POLICIES

PURE INSURANC

E

TERM PLANS

INSURANCE CUM

INVESTMENT

POLICIESWHOLE

LIFE PLANS

UNIT LINKED

INSURANCE

MONEY BACK

ENDOWMENT

PLANS

16

WHOLE LIFE POLICY PROS / CONS COMPARITIVE STUDY

PROS CONS

INFLEXIBLE

LOW INTEREST RATES

EXPENSIVE

COMPLICATED

MATURITY BENEFIT

INCOME TAX BENEFIT

DEATH BENEFIT

SURRENDER VALUE

INSURANCE POLICIES

PURE INSURANC

E

TERM PLANS

INSURANCE CUM

INVESTMENT

POLICIESWHOLE

LIFE PLANS

UNIT LINKED

INSURANCE

MONEY BACK

ENDOWMENT

PLANS

17

WHOLE LIFE POLICY

SUITABILITY• People who invested for post retirement needs & intend to invest in other avenues.

• It is suitable and profitable if this policy is taken at younger age as premium charged will remain same.

• People who want to diversify their savings

• It helps to topup retirement savings of people.

SOURCE : THEWEALTHWISHER.COM

INSURANCE POLICIES

PURE INSURANC

E

TERM PLANS

INSURANCE CUM

INVESTMENT

POLICIESWHOLE

LIFE PLANS

UNIT LINKED

INSURANCE

MONEY BACK

ENDOWMENT

PLANS

18


• These plans provide cover throughout whole life.

• Policyholder has an option to pay premiums upto certain age ,generally 80-100 yrs of age (Maturity Age)

• Premium remain constant during the entire term of the policy.

• DEATH BENEFIT - In case of death of the Life Insured, the nominee would get the Sum Assured + accrued Bonus.

• MATURITY BENEFIT - There is an option to withdraw the Sum Assured + accrued bonuses declared under the policy anytime after 40 years from the date of commencement of the policy provided the life insured has attained a minimum age of 80 years.( No specific maturity date)

• INCOME TAX BENEFIT-any payment made by a tax payer on account of Term Insurance Policy will be allowed deduction as per section 80C of the Income-tax Act, 1961.

•SURRENDER VALUE

• EXPENSIVE

• LOW INTEREST RATES- Interest earned is low compared to other policies.

• INFLEXIBLE

•COMPLICATED – Only expert can tell whether this policy is a good deal.

• People who invested for post retirement needs & intend to invest in other avenues.

• It is suitable and profitable if this policy is taken at younger age as premium charged will remain same.

• People who want to diversify their savings

•It helps to topup retirement savings of people.

SUMMARY OF WHOLE LIFE POLICY

INSURANCE POLICIES

PURE INSURANCE

TERM PLANS

INSURANCE CUM INVESTMENT POLICIES

WHOLE LIFE PLANS

UNIT LINKED

INSURANCE

MONEY BACK

ENDOWMEN

T PLAN

S

19



INSURANCE POLICIES

PURE INSURANCE

TERM PLANS


WHOLE LIFE PLANS

UNIT LINKED INSURANCE

MONEY

BACK

ENDOWMEN

T PLANS

20

UNIT LINKED INSURANCE POLICY

FEATURES• It provides financial protection along with investment

opportunities

• Premium paid in ULIP after deductions ( e.g. service tax deductions) is invested in equity or debt market.

• Its performance is linked to market growth.

SOURCE : POLICY BAZAAR MONEYCONTROL

INSURANCE POLICIES

PURE INSURANCE

TERM PLANS


WHOLE LIFE PLANS

UNIT LINKED INSURA

NCE

MONEY

BACK

ENDOWMENT PLANS

FEATURES

21


PROS / ADVANTAGES• DEATH BENEFIT - In case of death of insured, the Sum

Assured and fund value is released to the beneficiary.

• TAX BENEFIT- ULIP also offers tax benefits under Section 80C and 10(10D) of the Income Tax Act, 1961. The premium paid is deductible from taxable income for maximum amount of Rs 1,00,000.

• TRANSPARENT – Daily track of Net Asset Value (NAV) of the fund.

• FLEXIBLE – Systematically managing the funds

SOURCE : LIFEINSCOUNSIL

INSURANCE

POLICIES

PURE INSURAN

CE

TERM PLANS

INSURANCE CUM

INVESTMENT

POLICIESWHOLE

LIFE PLANS

UNIT LINKED

INSURANCE

MONEY BACK

ENDOWMENT PLANS

PROS

DEATH BENEFIT

TAX BENEFIT

FLEXIBLE

TRANSPARENT

22


CONS / DISADVANTAGES• Returns is not guaranteed

• LOCK IN PERIOD FOR 5 YEARS - It does not allow any liquidity option atleast for 5 years

• LOW SUM ASSURED - Greater focus is on investment value.

SOURCE : WISDOMTIMES IRDA.GOV.IN

INSURANCE POLICIES

PURE INSURANCE

TERM PLANS


WHOLE LIFE PLANS

UNIT LINKE

D INSURANCE

MONEY BACK

ENDOWME

NT PLANS

NO GUARANTEE

RETURN

LOCK IN PERIOD

LOW SUM ASSURED

23

UNIT LINKED INSURANCE POLICY PROS / CONS COMPARITIVE STUDY

PROS CONS

TRANSPARENT

TAX BENEFIT

DEATH BENEFIT

FLEXIBLE

LOW SUM ASSURED

LOCK IN PERIOD

RETURN IS NOT GUARANTEED

INSURANCE

POLICIES

PURE INSURA

NCE

TERM PLANS

INSURANCE CUM

INVESTMENT

POLICIESWHOLE

LIFE PLANS

UNIT LINKED INSURA

NCE

MONEY BACK

ENDOWMENT PLANS

24


SUITABILITY• It is suitable for the investors who are considering long term investments as it provides insurance cover ,

investments & tax benefits.

SOURCE : HINDU BUSINESS LINE

INSURANCE

POLICIES

PURE INSURAN

CE

TERM PLANS

INSURANCE CUM

INVESTMENT

POLICIESWHOLE

LIFE PLANS

UNIT LINKED

INSURANCE

MONEY BACK

ENDOWMENT PLANS

25

SUMMARY OF UNIT LINKED INSURANCE POLICY

INSURANCE

POLICIES

PURE INSURAN

CE

TERM PLANS

INSURANCE CUM

INVESTMENT

POLICIESWHOLE

LIFE PLANS

UNIT LINKED

INSURANCE

MONEY BACK

ENDOWMENT PLANS

FEATURES PROS CONS SUITABILTY

• It provides financial protection along with investment opportunities

• Premium paid in ULIP after deductions (e.g. service tax deductions) is invested in equity or debt market.

• Its performance is linked to market growth.

• DEATH BENEFIT - In case of death of insured, the Sum Assured and fund value is released to the beneficiary.

•TAX BENEFIT- ULIP also offers tax benefits under Section 80C and 10(10D) of the Income Tax Act, 1961. The premium paid is deductible from taxable income for maximum amount of Rs 1,00,000.

•TRANSPARENT – Daily track of Net Asset Value (NAV) of the fund.

• FLEXIBLE – Systematically manage of the funds

• Returns is not guaranteed

• LOCK IN PERIOD FOR 5 YEARS - It does not allow any liquidity option atleast for 5 years

• LOW SUM ASSURED - Greater focus is on investment value.

• It is suitable for the investors who are considering long term investments as it provides insurance cover , investments & tax benefits.

26

INSURANCE POLICIES

PURE INSURANCE

TERM PLANS


POLICIES

WHOLE LIFE PLANS


PLANS



27

MONEY BACK POLICY

FEATURES• It provides Insurance Cover & also periodic return at

regular intervals

• In the event of the death of insured during the policy term, the beneficiary will get full money i.e. sum assured without any deduction of any survival benefits (i.e. amounts which have already been paid as money back components)

• It yields low & fixed returns as they are not market linked.

• SURRENDER VALUE

SOURCE : LICINDIA

INSURANCE POLICIES

PURE INSURANCE

TERM PLANS

INSURANCE CUM

INVESTMENT POLICIES

WHOLE LIFE PLANS

UNIT LINKED

INSURANCE

MONEY BACK

ENDOWMENT PLANS

FEATURES

INSURANCE COVER

SURRENDER VALUE

SUM ASSURED

LOW & FIXED RETURNS

28

MONEY BACK POLICY

PROS / ADVANTAGES• FAMILY SECURITY – It gives way for a person to plan the

course of his life with a sum that is expected in regular intervals

• ASSURED BONUS - Every policy will have a set of assured bonus that may be shared in regular intervals or got at the end of the policy.

SOURCE : MYINSURANCECLUB THINKRUPEES.COM

INSURANCE POLICIES

PURE INSURANCE

TERM PLANS

INSURANCE CUM

INVESTMENT POLICIES

WHOLE LIFE PLANS

UNIT LINKED

INSURANCE

MONEY BACK

ENDOWMENT PLANS

PROS

FAMILY SECURITY

ASSURED BONUS

29

MONEY BACK POLICY

CONS / DISADVANTAGES• LOW RETURNS

• LOW COVERS - Relative to term policy for same premium

INSURANCE POLICIES

PURE INSURANCE

TERM PLANS

INSURANCE CUM

INVESTMENT POLICIES

WHOLE LIFE PLANS

UNIT LINKED

INSURANCE

MONEY BACK

ENDOWMENT PLANS

CONS

LOW RETURNS LOW COVERS

30

MONEY BACK POLICY PROS/CONS COMPARITIVE STUDY

PROS CONS

LOW COVERS

LOW RETURNS

BONUS

FAMILY SECURITY

INSURANCE POLICIES

PURE INSURANCE

TERM PLANS

INSURANCE CUM

INVESTMENT POLICIES

WHOLE LIFE PLANS

UNIT LINKED

INSURANCE

MONEY BACK

ENDOWMENT PLANS

31

MONEY BACK POLICY

SUITABILITY• Individuals who require money at certain intervals in their lifetime to meet Fixed Long & Short term

financial needs along with life insurance cover e.g.

1. BUSINESSMAN2. PROFESSIONALS

SOURCE : LICINDIA

INSURANCE POLICIES

PURE INSURANCE

TERM PLANS

INSURANCE CUM

INVESTMENT POLICIES

WHOLE LIFE PLANS

UNIT LINKED

INSURANCE

MONEY BACK

ENDOWMENT PLANS

32

SUMMARY OF MONEY BACK POLICYFEATURES PROS CONS SUITABILITY

• It provides Insurance Cover & also period return at regular interval

• In the event of the death of insured during the policy term, the beneficiary will get full money sum assured without any deduction of survival benefit amount which has been paid as money back components

• It yield low & fixed returns as they are not market linked.

• SURRENDER VALUE

• FAMILY SECURITY – It gives way for a person to plan the course of his life with a sum that is expected in regular intervals

• BONUS - Every policy will have a set of assured bonus that may be shared in regular intervals or got at the end of the policy.

• LOW RETURNS

• LOW COVERS – Relative to term policy for same premium.

• Individuals who require money at certain intervals in their lifetime to meet Fixed Long & Short term financial needs along with life insurance e.g. BUSINESSMAN & PROFESSIONALS

INSURANCE POLICIES

PURE INSURANCE

TERM PLANS

INSURANCE CUM

INVESTMENT POLICIES

WHOLE LIFE PLANS

UNIT LINKED

INSURANCE

MONEY BACK

ENDOWMENT PLANS

33


INSURANCE POLICIES

PURE INSURANCE

TERM PLANS


POLICIES

WHOLE LIFE PLANS


PLANS

34

ENDOWMENT POLICY

FEATURES• Simple policy with guaranteed returns

• Protection & Savings Plan • Sum assured is paid to the beneficiary on the death of

the insured or on the maturity of the term.

SOURCE : INDIANOTES

INSURANCE POLICIES

PURE INSURANCE

TERM PLANS

INSURANCE CUM

INVESTMENT POLICIES

WHOLE LIFE PLANS


MONEY BACK

ENDOWMENT PLANS

FEATURES

SIMPLE POLICY

SUM ASSUREDPROTECTION & SAVINGS PLAN

35

ENDOWMENT POLICY

PROS / ADVANTAGES• DEATH BENEFIT - Payable to the beneficiary when the

annuitant passes away.( Sum Assured + Accrued Bonus)

• MATURITY BENEFIT - Payable to the beneficiary at the maturity of the policy. ( Sum Assured + Accrued Bonus)

• TAX BENEFIT - any payment made by a tax payer on account of Term Insurance Policy will be allowed deduction as per section 80C of the Income-tax Act, 1961.

• SURRENDER VALUE –1. WITHIN 3YRS OF BUYING THE POLICY – Receive no

surrender value 2. MORE THAN 3YRS – Receive surrender value

SOURCE : MYINSURANCECLUB INDIA NOTES

INSURANCE POLICIES

PURE INSURANCE

TERM PLANS

INSURANCE CUM

INVESTMENT POLICIES

WHOLE LIFE PLANS


MONEY BACK

ENDOWMENT PLANS

PROS

DEATH BENEFIT

TAX BENEFIT

SURRENDER VALUE

MATURITY BENEFIT

36

ENDOWMENT POLICY

CONS / DISADVANTAGES• Low Returns.

• Premium paid is higher as compared to term policy.

• Only few companies provide advantage of Renewability

• It provides protection only for specified period.

SOURCE : WEALTHLINK INDIANOTES

INSURANCE POLICIES

PURE INSURANCE

TERM PLANS

INSURANCE CUM

INVESTMENT POLICIES

WHOLE LIFE PLANS


MONEY BACK

ENDOWMENT PLANS

CONS

NON RENEWABILITY

HIGH PREMIUM

LOW RETURNS PROTECTION FOR

SPECIFIED PERIOD

37

ENDOWMENT POLICY PROS /CONS COMPARITIVE STUDY

PROS CONS

LOW RETURNS

HIGH PREMIUM

NON - RENEWABILITY

PROTECTION FOR SPECIFIED PERIOD

SURRENDER VALUE

TAX BENEFIT

MATURITY BENEFIT

DEATH BENEFIT

INSURANCE POLICIES

PURE INSURANCE

TERM PLANS

INSURANCE CUM

INVESTMENT POLICIES

WHOLE LIFE PLANS


MONEY BACK

ENDOWMENT PLANS

38

ENDOWMENT POLICY

SUITABILITY• It is apt for people of all ages & social groups who wish to protect their family from Financial setback & Looking for

Benefits. E.G SAVINGS,WEALTH CREATION.ETC.

• It is for people who want 100% return on the Insurance Premium they paid so they are willing to accept a low insurance cover and obtain lump sum amount at maturity.

SOURCE : LIC INDIA.IN INDIANOTES

INSURANCE POLICIES

PURE INSURANCE

TERM PLANS

INSURANCE CUM

INVESTMENT POLICIES

WHOLE LIFE PLANS


MONEY BACK

ENDOWMENT PLANS

39

SUMMARY OF ENDOWMENT POLICY

INSURANCE POLICIES

PURE INSURANCE

TERM PLANS

INSURANCE CUM

INVESTMENT POLICIES

WHOLE LIFE PLANS


MONEY BACK

ENDOWMENT PLANS


• Simple policy with guaranteed returns

• Protection & Savings Plan

• Sum assured is paid to

the beneficiary on the death of the insured or on the maturity of the term.

• DEATH BENEFIT - Payable to the beneficiary when the annuitant passes away.( Sum Assured + Accrued Bonus)

• MATURITY BENEFIT - Payable to the beneficiary at the maturity of the policy. ( Sum Assured + Accrued Bonus)

• TAX BENEFIT - any payment made by a tax payer on account of Term Insurance Policy will be allowed deduction as per section 80C of the Income-tax Act, 1961.

• SURRENDER VALUE –1. WITHIN 3YRS OF BUYING THE

POLICY – Receive no surrender value

2. MORE THAN 3YRS – Receive surrender value.

• Low Returns

• Premium paid is higher as compared to term policy.

• Only Few companies provide advantage of Renewability .

• It provides protection only for specified period.

• It is apt for people of all ages & social groups who wish to protect their family from Financial setback & Looking for Benefits. E.G SAVINGS,WEALTH CREATION.ETC.

•It is for people who want 100% return on the Insurance Premium they paid so they are willing to accept a low insurance cover and obtain lump sum amount at maturity.

40

SUMMARY OF POLICIESPARTICULARS TERM WHOLE

LIFEULIP MONEY

BACKENDOWMENT

FEATURES • MATURITY BENEFIT

• TAX BENEFIT (UPTO Rs 1.5L)

• MARKET LINKED

• SURRENDER VALUE

( UPTO Rs 1L)

( periodic payments)

TARGET

SEGMENTS

• Pure Insurance • Suited for

investors with short term life insurance needs (10 years or less) •Who cannot

afford high premium• Housing

Loan value cover

• Pick up at a young age, as premium charged remains same

•Diversify their savings

• Useful to pass on inheritance without any tax

• Single package covering long-term market invest-ments, tax benefits, and insurance cover.

Individuals who need savings at certain intervals in their lifetime to meet fixed long & short term financial needs along with life insurance e.g. businessmen

It is apt for people of all ages & social groups who wish to protect their family from unfortunate setbacks & at the same time looking for savings.

Economy & Finance

TYPES OF LIFE INSURANCE POLICIES IN INDIA