LIFE INSURANCE PRODUCTS CHAPTER NO 5

UNIQUENESS OF LIFE INSURANCE PRODUCTS LIFE INSURANCE PRODUCT / POLICY IS INTANGIBLE. IT CANNOT BE VIEWED OR DISPLAYED LIKE ANY OTHER PRODUCT. IN ORDER TO SELL A PRODUCT A THOROUGH KNOWLEDGE OF THE BENEFITS OFFERED HAVE TO BE MADE KNOWN TO THE BUYER. AN IN-DEPTH STUDY OF THE PRODUCTS AND THE BENEFITS HAS TO BE MADE BEFORE, MARKETING THE LIFE INSURANCE PRODUCTS.

FACTORS AFFECTING THE NATURE OF INSURANCE TO BE OFFERED PERSON TO BE INSURED SUM TO BE ASSURED CONTINGENCY AT WHICH SUM ASSURED IS PAYABLE AND HOW? TERM OF THE PLAN FREQUENCY OF PAYMENT OF PREMIUMS INCREASING SUM ASSURED DUE TO PARTICIPATION IN SURPLUS & BONUS DECREASING SUM ASSURED AS IN MORTGAGE REDEMPTION PLAN (PLAN 52) ADDITIONAL BENEFITS LIKE RIDERS ETC. IRDA REGULATIONS

BASIC TYPES OF INSURANCE COVER TERM ASSURANCE BENEFIT PAYABLE ONLY ON DEATH PURE ENDOWMENT BENEFIT PAYABLE ONLY ON SURVIVAL ANNUITIES-IMMEDIATE & DEFFERED BENEFIT PAYABLE IN SERIES RIDERS BENEFITS PAYABLE AS “ADD ONS”(ADDITIONAL COVER) FREE COVER BENEFIT PAYABLE AFTER PAYMENT OF PREMIUM CEASES

TAILOR MADE OFFERS PLANCOMBINATION OF ……. WHOLE LIFE POLICY TERM ASSURANCE WHERE THE TERM CEASES ON DEATH ENDOWMENT POLICY TERM ASSURANCE PURE ENDOWMENT DOUBLE ENDOWMENT TERM ASSURANCE DOUBLE THE VALUE OF PURE ENDOWMENT MONEY BACK/ ANTICIPATED ENDOWMENT INCREASING TERM ASSURANCE PURE ENDOWMENT FOR 5,10,15,20 TERMS

COMPARITIVE STUDY OF PLANS WHOLE LIFE PREMIUM PAYING TERM(PPT) IS TILL DEATH PPT CAN BE LIMITED LIMITED PAYMENT SINGLE PREMIUM CONVERTIBLE TERM ASSURANCE MAY BE WITH PROFIT OR WITHOUT PROFIT ENDOWMENT PPT IS SPECIFIED PPT CAN BE LIMITED (LESSER THAN TERM) SUM ASSURED IS PAYABLE AT INTERVALS…. ….SURVIVAL BENEFITS SUM ASSURED PAYABLE FOR MARRIAGE AND IN INTERVALS FOR EDUCATION MAY BE WITH PROFIT OR WITHOUT PROFIT

TERM ASSURANCE AFTER PRIVATISATION OF INSURANCE SECTOR, TERM ASSURANCE HAS GAINED POPULARITY AS IT IS A LOW COST INSURANCE EXAMPLES- 1.ANMOL JEEVAN (PLAN 822) 2.AMULYA JEEVAN (PLAN 823) This Plan Has Grown Very Popular In The Insurance Market Recently.

Whole life plans 1.NEW JEEVAN ANAND PLAN [PLAN 815] A Combination Of Whole Life And Endowment. Premiums Are Payable Through Out The Term. One Sum Assured Is Payable At Maturity & The Second Sum Assured Is Payable On Death FREE INSURANCE COVER AFTER MATURITY

MONEY BACK PLANS Combination Of ---- INCREASING TERM ASSURANCE & PURE ENDOWMENT WITH DIFFERENT TERMS-IE. 5,10,15,20,25… Amounts Received May Be Invested in Mutual Funds, Income- Bonds Growth Funds, Fixed Deposits, Tecnology Stocks Etc. MONEY BACK PLANS Survival Benefits Payable At Ihe Intervals of Every Five Years

CHILDREN’S POLICIES CHILDREN ARE INSURED ONLY IN INDIA DUE TO LOVE AND AFFECTION The Policies can be--- Risk Plans Here the commencement of risk starts at age 7 or two years after the policy commences,whichever is later. Plans can be given and special plans like 1.Single Premium Endowment ( Plan 817)

RIDERS IT IS A BENEFIT GIVEN IN ADDITION TO THE BASIC INSURANCE EXAMPLES… CRITICAL ILLNESS RIDER Additional Benefit for Certain Diseases Granted PREMIUM WAIVER BENEFITS The Payment of Future Premium Is Waived on Happening of a Predefined Event, As Stated in the Critical Illness Rider TERM ASSURANCE RIDER An Additional Term Insurance Given up to the Basic Sum Assured or 25 Lakhs Whichever Is Less

CRITICAL ILLNESS RIDER Critical Illness Sum assured will be payable on the life assureds surviving for a period of 28 days from the date of occurrence of any of the following critical illness Heart Attack Stroke,Cancer Kidney failure & Major Organ Transplant Paralysis, 3 rd Degree Burns & Blindness Coronary Artery By-pass Surgery Heart Valve Replacement Or Repair &Aorta Graft Surgery It Is Allowed For A Maximum Sum assured upto 5 Lakhs Under All Policies & Up To Age 60. Only Standard lives are covered for Critical Illness

ANNUTIES ANNUTIES ARE SAME AS PENSIONS ANNUTIES ARE REVERSE OF LIFE INSURANCE IN AN ANNUTY A SERIES OF PAYMENT IS RECEIVED, IN RETURN OF THE SPECIFIED CAPITAL INVESTED.S

ANNUTIES MAY BE IMMEDIATE DEFERRED STARTS IMMEDIATELY STARTS AT A SPECIFIED FUTURE DATE ANNUTIES MAY BE LIFE ANNUTIES PAYABLE TILL DEATH 2. ANNUITY CERTAIN PAYABLE FOR A SELECTED PERIOD IRRESPECTIVE OF DEATH OF THE ANNUTANT 3. ANNUITY CERTAIN AND THEREAFTER FOR LIFE 4. JOINT LIFE LAST SURVIVOR 5. ANNUITY WITH RETURN OF PURCHASE PRICE THE FREQUENCY OF ANNUITY MAY BE MONTHLY QUARTERLY, HALF YEARLY OR YEARLY.

Business oriented products 1.KEYMAN INSURANCE 2.PARTNERSHIP INSURANCE 3.EMPLOYER -EMPLOYEE INSURANCE SCHEME

KEY MAN INSURANCE KEY MAN INSURANCE POLICIES ARE OFFERED TO KEY PERSONS IN A COMPANY The Company Is the Proposer. The Company Pays the Premiums Against the Policy Issued to Certain Persons Whose Absence Would Cause a Considerable Loss to the Profits of the Company. The Profit of the Company for the Last Three Years Is Taken Into Account A Key Man Questionnaire Has to Be Completed Which Establishes the Importance of the Services of the Key Persons to the Company Only Term Plans Are Offered.

EMPLOYER EMPLOYEE INSURANCE AN EMPLOYER PROPOSES INSURANCE COVER FOR THE BENEFIT OF THE EMPLOYEE AND HIS KIN. AFTER THE POLICY HAS BEEN ISSUED THE EMPLOYER ASSIGNS THE POLICY IN FAVOUR OF THE EMPLOYEE. THE PREMIUMS ARE PAID BY THE EMPLOYER WHICH ARE SHOWN AS BUSINESS EXPENSES AND QUALIFY FOR TAX REBATE

SALARY SAVING SCHEME POLICIES SSS POLICIES CATER TO NEED OF THE WORKING CLASS. PAYMENT OF PREMIUM BECOMES EASIER WITHOUT DEFAULT THE INSURER RECEIVES ONE REMITTANCE OF MANY WORKERS THEREBY REDUCING THE ADMINISTRATIVE COST AND SO YEARLY PREMIUM RATES ARE CHARGED FOR MONTHLY COLLECTIONS ALSO THE AGENT BENFITS AS THE CHANCE OF LAPSES ARE LESS

PENSION PLANS NEW JEEVAN NIDHI - PLAN 818 NEW JEEVAN AKSHAY- VI - PLAN 189

THANK YOU M. J. MALIK S.B.A. 836 B.O. AHMEDABAD D.O