endowment policy ssr

04/11/2023 Endowment Policy 1

Risk Analysis And Investment Planning

Presented To:– Prof. Uttam Kumar

Endowment Policy


Sudhir Singh

Rajput

Pooja Singh

Nitin Mishra

Avinash Abhay Azad

Saurabh Tripathi

Presented By:-


What is Endowment Policy?

Type of life insurance policy which is designed to pay a lump sum after a specified term (on its 'maturity') or on death.

Typical maturities are 10, 15 or 20 years up to a certain age limit.

Policies are typically traditional with-profits or unit-linked

Endowment plans are priced a little higher than term plans because of maturity benefits.


Cont… Additional Bonuses:- Generally, Endowment plans have

two types of bonuses: Reversionary bonus:- Also called regular bonus, this is

annual bonus which depends on the performance of the insurer and is added to the fund every year payable at the end of policy period.

Terminal bonus:- An additional loyalty bonus offered by the insurer at the end of policy term

Tax Benefits:- Under Section 80C you can avail tax benefit, yearly

premium (not more than 1lac) will be deducted from taxable income.

Under Section 10(10D) death claim is completely tax free.


Cont… The Good:- Endowment plans have both death and survival benefits. The bonuses accumulate over time to give good maturity lump

sum

The Bad:- Endowment plans are priced higher than term plans.

Policybazaar Judgment on Endowment Plans:- Endowment plans is for people looking for survival benefits along with death benefit. Though priced higher, it is worth it to buy endowment plans since its no profit no loss equation as premiums paid are returned in form of survival benefits. And you get insurance life cover which is important thing to have


Type of Endowment Policy

Traditional With Profits Endowments

Unit-linked endowment

Traded endowments

Full endowments

Low cost endowment (LCE)


Cont… Traditional With Profits Endowments:- There is an amount guaranteed to be paid out called the sum

assured and this can be increased on the basis of investment performance through the addition of periodic (for example annual) bonuses.

Regular bonuses are guaranteed at maturity and a further non-guarante bonus may be paid at the end known as a terminal bonus.

Unit-linked endowment:- Unit-linked endowments are investments where the premium is

invested in units of a unitised insurance fund. Units are encashed to cover the cost of the life assurance. Policyholders can often choose which funds their premiums are

invested in and in what proportion. Unit prices are published on a regular basis and the encashment

value of the policy is the current value of the units.


Cont…

Traded endowments:- Traded endowment policies (TEPs) or second hand

endowment policies (SHEPs) are traditional with-profits endowments that have been sold to a new owner part way through their term.

The TEP market enables buyers (investors) to buy unwanted endowment policies for more than the surrender value offered by the insurance company.

When a policy is sold, all beneficial rights on the policy are transferred to the new owner.


Cont…

Full endowments:- A full endowment is a with-profits endowment where the basic sum assured is equal to the death benefit at start of policy and, assuming growth, the final payout would be much higher than the sum assured.

Low cost endowment (LCE):- A low cost endowment is a combination of an endowment where an estimated future growth rate will meet a target amount and a decreasing life insurance element to ensure that the target amount will be paid out as a minimum if death occurs.


LIC IndiaJeevan Anand Plan

Table - 149

Endowment Assurance

Overview, Benefits and Suggestion


FeaturesJeevan Anand Plan : Table 149 J

EEVAN

ANAND

TABLE

149

Plan Type RegularCategory For Whole Life And Good Returns

Guarantee Yes + Bonus

Insurance Cover Maturity at 75

Death Benefit The Sum Assured along with the vested bonuses is payable on death in a lump sum.

Guaranteed Surrender Value

The policy may be surrendered after it has been in force for 3 years or more. he guaranteed surrender value is 30% of the basic premiums paid excluding the first year’s premium. Any extra premium(s) paid and premium(s) towards Accident Benefit are also excluded.

Premium Waiver Option No

Auto Cover No

Revival of Policy No

Loan On the Policy Yes

Accident Benefit An additional Sum Assured (subject to a limit of Rs.5 lakh) is payable in a lump sum on death due to accident up to age 70 of life assured. In case of permanent disability of the life assured due to accident this additional Sum assured is payable in installments.

Rebate on the premium Depending on the amount of the sum assured chosen and the plan duration

Endowment Assurance and Whole Life plans


BenefitsJeevan Anand Plan : Table 149 J

EEVAN

ANAND

TABLE

149

Min & Max Entry Age 18 years , 65 years

Min & Max Policy Term 5 to 57 years

Min & Max Maturity Age 75 years is the Maximum Maturity Age

Min & Max Sum Assured

Rs 100000.00 Min, No Limit for Max

Premium Paying Term Pay till the Premium Paying term for the Endowment Term. For Whole life the Policy Covers till age 70.

Loan Availability Yes

Survival Benefit The policyholder will receive the sum assured and all the accumulated bonuses. A final additional bonus, if any, may also be paid out. In such a case, the risk cover for the policyholder continues till death, on which an amount equal to the sum assured will be paid out further. However, there will be no bonus component attached to the payout on death after the premium paying term has ended.

Rebates in Premium 2% if paid Yearly, 1% if Paid Half Yearly

Suicide Clause No Suicide Clause

Accident Benefit Rider The plan also incorporates an accident benefit rider. However, the cap on the amount is Rs 5 lakh. The premium for the rider is built in to the basic plan itself. The amount under the rider will be paid if the policyholder dies in an accident. This payout is over and above the basic sum assured. The maximum age at which this rider ceases is 70. Should the policyholder suffer permanent disability because of an accident, the sum assured under this rider will be paid out in installments.



Recommendation

Should I Take This Plan?

YES. Go for this plan. No other Company (Insurance Provider) has this type of product. This is an Endowment plan with Whole Life.

Do not get tempted with the ULIP Plans which talk about high returns. This plan ( Jeevan Anand) is the BEST, and highly Recommended plan.

Is this plan Costlier Compared to others?

Yes, the Premium is little bit more compared to other plans.

This Plan has got double offer, and secures till age 70. This has Endowment and Whole Life. Only Whole Life plan which pays money. Compare to traditional Term Life, no plan gives money.



TATA AIG Life Insurance

A new unit-linked endowment insurance plan called Gyan Kosh - to secure their children’s education, important milestones of life like marriage, and provide funds for setting up a business.

Assure Educare - Assure Educare is an endowment policy designed to give the child the education he or she wants. Two plans:-

Educare 18 Educare 21


Cont… Survival benefits:-This plan guarantees

payment of 10 percent of the sum assured at maturity or on death .

Bonus:- Revisionary and Terminal bonuses is offered by the company.

Riders:- The Payer Benefit Rider waives off all future payments for this policy in the event of the unfortunate death of the parent.

Tax Benefits:- Premiums paid for this policy are eligible for tax returns as per current Income Tax rules.


Cont…

Assure Security and Growth Plan:- This is an Endowment policy that aims at giving you safety and returns.

Eligibility:- The duration of the policy can be 10, 20 or 30 years.

What's Special? So in case of death, your dependants get the sum

assured.


Cont… And what are the extras? A guaranteed 10 per cent bonus after the 10th

policy anniversary. Reversionary bonus projected at an annual 5 per

cent . And a Terminal bonus paid on maturity or death

Tax Benefits, Riders:- Premiums paid are eligible for tax benefits under Section 88. And you can attach Term, Accident and Disability riders to this policy for added protection.


AVIVA Life Insurance

Life Saver (Flexible Endowment savings Plan)

Lifesaver is a unitized fixed term, protection cum savings plan.

Lifesaver can be purchased on any life between 18 to 65 years .

The minimum premium is Rs.3,500 for yearly, Rs.2,000 for half-yearly, Rs.1,000 for quarterly and Rs.350 for monthly frequency of premium payment.


Cont…

Additional Single Premiums:- Lifesaver also offers you the flexibility of making lump sum investments through additional single premiums.

Riders:- Accidental Death & Dismemberment (AD&D)

Critical Illness & Permanent Total Disability (CI&PTD)

Rider cover expires at 60 years of age.


Cont…

What do I get on maturity? Upon survival, at maturity the policy value is paid

to you.

The policy will become paid-up with zero sum insured and you may avail the policy value as and when required.


Kotak Life Insurance

Kotak Life Endowment Insurance Plan is a Traditional Participating Endowment.

How it works In this plan, premiums are paid for the Premium

Paying Term as selected at the beginning of the Policy Term.

The premiums, after deduction of charges, are deposited in the Accumulation Account along with Bonus at the end of each year


Kotak Endowment Insurance Policy

(In years) Minimum MaximumPolicy Term 10 30

Premium Payment Term 3,5,7,10 and 15

Entry Age of Life Insured 18 65

Age at Maturity - 75

Regular Premium(in Rs. ) 4000 No Limit

Payment modes Yearly, Half-Yearly, Quarterly and Monthly


Birla Sun Life Insurance

Policy Term:- 10, 15, 20, 25 and 30 years Savings Date:- Same as policy term Entry Age:- 1 year to 65 years, subject to

minimum age of 18 on Savings Date.

Basic Premium:- Minimum Rs. 25,000 p.a. if paid annually Minimum Rs. 30,000 p.a. if paid monthly

quarterly or semi-annually


Cont… Pay Term:- Short pay – 5, 10, 15, 20 years |To

Savings Date

Top-up Premium:- Minimum Rs. 5,000

Premium Payment Option:- Monthly, Quarterly, Semi-annually or Annually

Enhanced Sum Assured:- Minimum Rs. 50,000 Entry Age 18 to 65 years, subject to maximum age of 75 on Savings Date.

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