INSURANCE ASSIGNMENT

Presented by:

Arun T K(P09020241002)Aby Johnson(09020241004)

Kamil Hassan(09020241013)Samarth

Gupta(09020241026)Vishal Singla(09020241048)

Term Assurance

Term Assurance

2 Year temporary assurance

Convertible term

assurance

Anmol Jeevan-I

Amulya Jeevan-I

Term Assurance productsParameters 2 year temporary

assuranceConvertible term assurance

Anmol Jeevan-I

Amulya Jeevan-I

Entry age 18-60 years 20-50 years 18-55 years 18-60 years

Sum assured (Rs.)50000- 1 lakh

50000- 1 lakh

5 lakh to 25 lakh

25 lakhs to unlimited

Term6,12,18,24 months

5-7 years 5-25 years 5-35 years

Death benefit Total sum assured

In event of death before expire of term

Benefit on maturity

Sum assured payable on death during the term

Key feature To cover against risk for a short period of two years

Option to convert into endowment/whole life assurance

Policy valid during grace period for premium pmt

No loan, surrender value availabe.15 day cooling off period

Payment Single premium to be paid to cover entire term

Yearly, Half-yearly,Quarterly, Monthly, Salary Saving Scheme

Yearly, Half- Yearly and Single

premium

Yearly, Half-yearly or by Single Premium mode

Whole life Plans

Whole life plans

Whole life policy

Whole life payment-limited

payment

Whole life payment-single

premium

Jeevan Anand

Jeevan Tarang

Whole life insurance Parameters Whole life policy Whole life –limited

paymentThe Whole Life Policy- Single Premium

Jeevan Anand

Entry age 15-60 years 12-60 years 12-60 years 18-60 years

Sum assured (Rs.)50000 to unlimited 50000 to unlimited 30000 to unlimited 30000 to

unlimited

Term5-35 years 5-55 years NA NA

Death benefit Sum assured + accrued bonuses

Sum assured + accrued bonuses

Sum assured + accrued bonuses

Sum assured + accrued bonuses

Key feature Suitable for protecting heirs in case of premature death

Premiums to be paid only during few years and not for later years

Option to redeem entire money from 40 yrs of inception(age>=80 yrs)

Combination of endowment and whole life insurance

Payment Yearly, half-yearly, quarterly, monthly and SSS

Yearly, half yearly, quarterly, monthly, salary saving scheme Single premium

Yearly, half yearly, quarterly, monthly, SSS

Endowment assurance

Endowment assurance

Endowment assurance

policy

Jeevan Mitra

Jeevan Anand

New Janraksha

Plan

Jeevan Amrit

Endowment assuranceParameters Endowment

assurance policyJeevan Mitra New Janraksha

PlanJeevan Amrit

Additional benefitMaturity amount can be reinvested for annuity later

Profit plan which participates in Corp’s profits

Accidental death benefit-max of 5 lakh

Loan availability at 9% half yearly

Death benefit Lump sum payment Twice the sum assured + bonuses on basic sum assured

The Sum Assured plus all bonuses

Sum Assured +Bonuses

Key feature Assures a lump sum at a desired age apart from life cover

Policy can be surrendered after 3 years of value of 30% of basic premiums paid excluding 1st yr premium

Policy can be surrendered after 3 years of value of 30% of basic premiums paid excluding 1st yr premium

Suitable for people who can’t commit premium payments for long term

Payment Monthly, Quarterly, Half-Yearly, Yearly, Salary Saving Scheme.

Monthly, Quarterly, Half-Yearly, Yearly, Salary Saving Scheme. Monthly, Quarterly,

Half-Yearly, Yearly, Salary Saving Scheme

Yearly or half-yearly during the premium paying term of 3 or 4 or 5 yrs

GROUP INSURANCE

GROUP INSURANCE SCHEMES

Group Term Insurance Schemes

Group Insurance Scheme in Lieu Of

EDLI

Group Savings Linked Insurance

Scheme

Group Term Insurance Schemes

Features

• Administration of the scheme is on group basis and cost is low. • Insurability conditions without insisting upon any medical evidence• Scheme offers covers only on death• Should be a member of the Provident Fund Scheme of the employer• May provide for a uniform cover to all members of the group or graded covers for different categories of members

Premium Chargeable

• One Year Renewable Group term assurance plan with premium depending upon the changes in size and age distribution of the group.

• The premium under such scheme may be wholly paid by the employer or the Nodal Agency or contributory.• The schemes may have add-ons like Double Accident Benefit, Critical Illness Benefit, Disability benefit etc.

Group Insurance Scheme in Lieu Of EDLI

• Statutory liability to subscribe to Employee's Deposit Linked Insurance Scheme, 1976 to provide for the benefit of Life insurance to all their employees.

• Insurance benefit is equal to the average balance to the credit of the deceased employee in the Provident Fund during the last 12 months

• The contribution @ 0.50% of each employee's salary is payable by the Employer to the Provident Fund Authorities.

• Under Sec. 17(2A) of the act, the employer may be exempted from contributing to this scheme, if provided for better insurance benefits through alternative scheme.

EDLI Scheme

Group Insurance Scheme in Lieu Of EDLI

• The premium payable by the employer is usually less than the total contribution being paid by the employer to R.P.F.C; particularly when the salary level is high and average age of the group is low.

• Settlement of claim is quicker, LIC requires only the death certificate and the Claim Form from the employer.

• Premium paid by the employer is treated as normal business expenses for Income-Tax purpose.

Benefits for Employer

• Each employee is covered for a sum assured ranging between 5,000 to 2,00,000 depending upon the current salary and service put in from day one irrespective of the actual balance in the Provident Fund

• Double accident benefit can be allowed to the extent of the Sum Assured for an extra Premium.

Benefits for Employee

Group Savings Linked Insurance scheme

• Protection at low cost without individual evidence of health.• Premium is decided on the basis of Group size and the

occupation of the group.• Premium has two components - Risk Premium is utilized to

offer life cover and the Savings Premium is accumulated in members account.

• Double accident benefit can be allowed to the extent of the Sum Assured for an extra Premium.

• The present rate of interest allowed on saving portion of premium is 8% compounding yearly.

Features

Group Savings Linked Insurance scheme

• Any employee irrespective of his present state of health is eligible• Employee should not be absent on medical ground on the date of

commencement of the scheme• All employees who have not crossed the retirement age are eligible• All future employees have to join the scheme compulsorily

Eligibility

• Employees' total contribution, savings as well as risk premium is entitled for income-tax rebate under Sec. 80C of the Income Tax Act.

• The entire claim amount including interest earned payable on retirement or leaving service or on death is free from income-tax.

• The premium paid by the employer towards insurance cover is treated as business expenses.

Benefits

Retirement / Pension Schemes

Pension Plans

Market Plus I

Jeevan Nidhi

Jeevan Akshay-VI

New Jeevan Dhara-I

New Jeevan Suraksha-I

Jeevan Suraksha Jeevan Dhara Jeevan Nidhi Jeevan Akshay

Annuity Type Deferred Deferred Deferred Immediate

Minimum annual premium (Rs) 2,500 2,500 3,000

50,000 or amount to get an annual

annuity of Rs 3,000

Minimum cover (Rs) 50,000 50,000 50,000 50,000

Min-Max. tenure (Yrs) 2 yrs - 35 yrs 2 yrs - 35 yrs 5 yrs - 35 yrs NA

Min/Max Age at entry (Yrs) 18-70 18-65 18-65 NA

Min-Max vesting age (Yrs) 50-79 50-79 40-75 40-75

Riders available Term assurance rider, Critical illness rider

Term assurance rider, Critical illness rider

Accidental death and disability benefit rider, Term assurance rider,

Critical illness riderNone

Life cover available No Yes Yes No

Tax Benefits Under 80CCC Under 80CCC Under 80CCC None

Features

# Participation in Profits# Multiple Annuity Options

# Participation in Profits# 25% as tax free lump sum on maturity# Multiple Annuity Options

# Pension can commence at 40 years# Guaranteed Additions# Participation in Profits# Benefits on vesting# Multiple Annuity Options on vesting# Death Benefit on death before annuity vests

# Multiple annuity schemes# No maximum limits on annuity# No medical examinations

Surrender Value Yes Yes No No

Loan Allowed No No No No

JEEVAN SURAKSHA JEEVAN DHARA JEEVAN NIDHI JEEVAN AKSHAY

Special Schemes

Special Schemes

Health Plan

Health Protection Plus

Micro Insurance Plans

Jeevan Madhur

Jeevan Mangal

Health Protection Plus• Long term health insurance plan that can combine health insurance

covers for the entire family (husband, wife and the children)• Premium Payment mode: Yearly, Half-Yearly & Monthly (ECS Mode only) • Premiums allocated to purchase units will be strictly invested in a Health

Protection Plus Fund (Income and Growth – Low Risk)• Charges

– Policy Administration Charges - Rs.75 per month during the first year and Rs. 25 per month during the subsequent years.

– Fund Management Charges - Levied @ 1.25% per annum of the unit fund, at the time of computation of NAV which will be done on daily basis.

• Increase or decrease of premiums is allowed during the term of the policy.• Option to revive the policy any time within a period of two years from the

due date of first unpaid premium by payment of arrears of premiums or by availing Premium Holidays.

• No death insurance cover is available under the plan.

Health Protection Plus• Hospital Cash Benefit (HCB)

– A daily benefit is payable in case the insured is hospitalized due to either accidental body injury or sickness

– The quantum of benefit depends upon the level of cover opted.• Major Surgical Benefit (MSB)

– In the event of the insured undergoing one of the major surgeries defined lump sum benefit equivalent to the percentage of the sum assured mentioned against that surgery

– payable on providing proper proof of surgery to the satisfaction of the corporation.• Domiciliary Treatment Benefit (DTB)

– The Principal Insured can claim an amount equivalent to the actual expense he or she has incurred in respect of any domiciliary treatment

– To meet the medical expenses incurred over and above the hospital expense.• Limits

– On attainment of the insured’s maximum cover ceasing age – 75 years– On reaching the maximum lifetime benefit limits under HCB (365 days) and MSB (3 times

the sum assured)– Insured spouse’s cover terminates on the date of divorce/ legal separation

• No surrender , policy loan, assignment will be allowed under this policy.• Premium payable eligible for Section 80(D) benefit of Income Tax Act, 1961.

JEEVAN MADHUR JEEVAN MANGAL

Minimum annual premium (Rs) 250 250

Sum Assured (Rs) 5,000 - 30,000 10,000 - 50,000

Min-Max. tenure (Yrs) 5-15 yrs 10-15 yrs

Min/Max Age at entry (Yrs) 18-60 18-60

Maximum Age at Maturity 65 70

Riders available None Accidental Death and Disability Rider

Features

# Death Benefit# Participation in Profits# Auto-Cover Facility for 2 years# Paid up value available on premium lapse# Accidental Death and Disability Benefit

# Death Benefit# Maturity Benefit

Surrender Yes Yes

Mode of Premium Weekly to Annual Weekly to Annual or lump sum

Unit linked plans

ULIPS

Secured funds

Balanced fund

Growth fund Bond Fund

Secured fundsLIC Child Fortune Plus Secured Fund

Balanced fund

LIC Child Fortune Plus Balanced Fund

Growth fundLIC Child Fortune Plus Growth Fund

Bond FundLIC Child Fortune Plus Bond Fund

ULIP Plans• BIMA Plus• Future Plus• Jeevan Plus• Market Plus• Money Plus• Fortune Plus• Profit Plus• Gratuity Plus• Health Plus• Money Plus-I• Market Plus-I• Child Fortune Plus• Health Protection Plus• Jeevan Sathi Plus• Wealth Plus• Pension Plus

Pension Plan ULIP LIC’s Pension Plus is a unit linked deferred pension plan, which provides you a minimum guarantee on the gross premiums paid. The plan is without any life cover. Premiums paid after deduction of allocation charge will purchase units of the Fund type chosen. The Unit Fund is subject to various charges and value of units may increase or decrease, depending on the Net Asset Value (NAV).

Market Plus 1- unit linked pension schemeMarket Plus 1 is a unit linked pension scheme (ULIP). Policy holder can choose the plan with or without risk cover. This investment plan is divided in four types of investment Funds namely Bond, Secured, Balanced and Growth Fund. Market Plus 1 is primarily a Pension policy. There is option to pay one time premium. Critical illness benefit minimum Rs 50,000 and the maximum Rs 10 lakh. Accident benefit from Rs 25,000 upto a maximum of Rs 50 lakh. Switch from one type of fund to another upto four times a year. Premium top up. Policy can be taken with or without risk cover. Net Asset Value (NAV) declared on a daily basis.

LIC’s Profit Plus Scheme LIC’s Profit Plus is a Unit Linked Endowment Insurance Plan. Profit Plus (ULIP) is designed for common man to enhance their savings and financial protection to their family. One may encash the units partially after the third policy anniversary subject to certain conditions. One can switch between any fund types for the entire Fund Value during the policy term subject to switching charges, if any. When the policy comes for maturity, one may exercise “Settlement Option” and may receive the policy money in installments spread over a period of not more than five years from the date of maturity. There shall not be any life cover during this period. The value of installment payable on the date specified shall be subject to investment risk i.e. the NAV may go up or down depending upon the performance of the fund.

Jeevan Saathi Plus PlanLIC’s Jeevan Saathi Plus plan is a unit linked plan (ULIP) wherein a couple can take the insurance cover on their lives under a single policy. The proposer under the plan shall be called Principal Life Assured (P.L.A.) and the other life (wife/husband) shall be called Spouse Life Assured (S.L.A.). The premiums can be paid either in lump sum (single premium) or regularly throughout policy term. The P.L.A. can choose the level of cover (Sum Assured) for both lives within the limits, which will depend on whether the policy is a Single premium or Regular premium contract, age and the amount of premium agreed to pay. For regular premium policies, in case of death of the P.L.A. during the term of the policy, the plan also provides for waiver of all future premiums including outstanding premiums, if any, provided life cover is in force. Advantages:1.) It Cost less 2.) It helps in estate planning, particularly for a couple who also happen to be a owner of a family run business and 3.) It can be used to set off mortgage loans without causing any major discomfort to the surviving

partner.

LIC Wealth Plus Plan LIC’s Wealth Plus is a ULIP insurance plan that protects your investment from market fluctuations, so that your investments are protected in financially volatile times. Wealth Plus offers Guarantee of the highest NAV in the first 7 years of the policy, subject to a minimum of Rs.10. Policy term is 8 years.

Child Fortune Plus A ULIP which will be allowed to the parents who have a child upto the age of 17 years last birthday. The risk cover under the plan will be on the life of the parent who will be the life assured. There will be no insurance coverage on the life of the child, but the policy will be allowed based on the age of the child. The policy will continue till the child attains the age of 25 years last birthday or till the life assured attains the age of 75 years nearest birthday, whichever is earlier. The purpose of the plan is to meet the educational and other needs of the child named as nominee in the policy.

Money Plus 1 Plan A ULIP Endowment plan with regular premium paying term which offers investment cum insurance during the term of the policy. One can choose the level of cover within the limits, which will depend on the level of premium one agrees to pay.

Q and A

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