LIFE INSURANCE PRODUCTS
CHAPTER NO 5
UNIQUENESS OF
LIFE INSURANCE PRODUCTS
LIFE INSURANCE PRODUCT / POLICY IS
INTANGIBLE. IT CANNOT BE VIEWED OR
DISPLAYED LIKE ANY OTHER PRODUCT.
IN ORDER TO SELL A PRODUCT A THOROUGH
KNOWLEDGE OF THE
BENEFITS OFFERED HAVE TO BE MADE KNOWN
TO THE BUYER.
AN IN-DEPTH STUDY OF THE PRODUCTS AND
THE BENEFITS HAS TO BE MADE BEFORE,
MARKETING THE LIFE INSURANCE
PRODUCTS.
FACTORS AFFECTING THE NATURE OF
INSURANCE
TO BE OFFERED
•PERSON
TO BE INSURED
•SUM TO BE ASSURED
• CONTINGENCY AT WHICH SUM ASSURED IS
PAYABLE AND HOW?
•TERM OF THE PLAN
•FREQUENCY OF PAYMENT OF PREMIUMS
•INCREASING SUM ASSURED DUE TO
PARTICIPATION IN SURPLUS & BONUS
•DECREASING SUM ASSURED AS IN MORTGAGE
REDEMPTION PLAN (PLAN 52)
•ADDITIONAL BENEFITS LIKE RIDERS ETC.
•IRDA REGULATIONS
BASIC TYPES OF INSURANCE COVER
• TERM ASSURANCE
BENEFIT PAYABLE ONLY ON DEATH
• PURE ENDOWMENT
BENEFIT PAYABLE ONLY ON SURVIVAL
• ANNUITIES-IMMEDIATE & DEFFERED
BENEFIT PAYABLE IN SERIES
RIDERS
BENEFITS PAYABLE AS “ADD ONS”(ADDITIONAL
COVER)
• FREE COVER
BENEFIT PAYABLE AFTER PAYMENT OF PREMIUM
CEASES
TAILOR MADE OFFERS
PLAN
COMBINATION OF
…….
WHOLE LIFE
POLICY
TERM
ASSURANCE
WHERE THE TERM
CEASES ON DEATH
ENDOWMENT
POLICY
TERM
ASSURANCE
PURE
ENDOWMENT
DOUBLE
ENDOWMENT
TERM
ASSURANCE
DOUBLE THE
VALUE OF PURE
ENDOWMENT
MONEY BACK/
ANTICIPATED
ENDOWMENT
INCREASING
TERM
ASSURANCE
PURE
ENDOWMENT FOR
5,10,15,20 TERMS
COMPARITIVE STUDY OF PLANS
•
•
•
•
WHOLE LIFE
PREMIUM PAYING
TERM(PPT) IS TILL
DEATH
PPT CAN BE LIMITED
LIMITED PAYMENT
SINGLE PREMIUM
CONVERTIBLE TERM
ASSURANCE
• MAY BE WITH PROFIT
OR WITHOUT PROFIT
•
•
•
•
•
ENDOWMENT
PPT IS SPECIFIED
PPT CAN BE LIMITED
(LESSER THAN TERM)
SUM ASSURED IS
PAYABLE AT INTERVALS….
….SURVIVAL BENEFITS
SUM ASSURED PAYABLE
FOR MARRIAGE AND IN
INTERVALS FOR
EDUCATION
MAY BE WITH PROFIT OR
WITHOUT PROFIT
TERM ASSURANCE
AFTER PRIVATISATION OF INSURANCE
SECTOR, TERM ASSURANCE HAS GAINED
POPULARITY AS IT IS A LOW COST
INSURANCE EXAMPLES1. 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, IncomeBonds Growth Funds, Fixed Deposits,
Tecnology Stocks Etc.
MONEY BACK PLANS
820-20-15
821-25-20
Survival Benefits Payable At Ihe Intervals of Every Five Years
CHILDREN’S 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, 3rd Degree Burns & Blindness
Coronary Artery By-pass Surgery
Heart Valve Replacement Or Repair &Aorta Graft Surgery
It Is Allowed For A Maximum Sum assured upto 5 Lakhs
Under All Policies & Up To Age 60.
Only Standard lives are covered for Critical Illness
ANNUTIES
ANNUTIES ARE SAME AS PENSIONS
ANNUTIES ARE REVERSE OF LIFE
INSURANCE
IN AN ANNUTY A SERIES OF PAYMENT IS
RECEIVED, IN RETURN OF THE SPECIFIED
CAPITAL INVESTED.S
ANNUTIES MAY BE
IMMEDIATE
STARTS IMMEDIATELY
DEFERRED
STARTS AT A SPECIFIED
FUTURE DATE
ANNUTIES MAY BE------1. LIFE ANNUTIES PAYABLE TILL DEATH
2. ANNUITY CERTAIN PAYABLE FOR A SELECTED
PERIOD IRRESPECTIVE OF DEATH OF THE ANNUTANT
3. ANNUITY CERTAIN AND THEREAFTER FOR 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.
09879094925
lic.malik@gmail.com