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LIFE INSURANCE & LIFE INSURANCE & PRODUCTSPRODUCTS

PRESENTED BY:PRESENTED BY:

Pratik ModiPratik Modi

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► Insurance and Life Insurance in Insurance and Life Insurance in different perspectivesdifferent perspectives

►Legal aspects of Life Insurance Legal aspects of Life Insurance business in Indiabusiness in India

►Principles of insurance and their Principles of insurance and their applications to Life Insuranceapplications to Life Insurance

► Important types of Life InsuranceImportant types of Life Insurance

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What Is Insurance ?What Is Insurance ?►It is aIt is a tool in the management of tool in the management of

risksrisks – a device through which the – a device through which the risks faced by the individuals are risks faced by the individuals are pooled together and thereby all pooled together and thereby all the members of pool will share the the members of pool will share the losses suffered by a few losses suffered by a few individuals.individuals.

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► Transferring the risks from the individuals Transferring the risks from the individuals to the pool – reduction of the overall risk to the pool – reduction of the overall risk faced by the poolfaced by the pool

► Social tool – as a social safeguard against Social tool – as a social safeguard against the losses expected to be suffered due to the losses expected to be suffered due to unexpected events by a few members of unexpected events by a few members of the societythe society

► Commercial or legal tool where a third Commercial or legal tool where a third party does this activity of pooling of risks party does this activity of pooling of risks and sharing of losses with a commercial and sharing of losses with a commercial interestinterest

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Kenneth Black (Jr.) and Harold Skipper (Jr.) Kenneth Black (Jr.) and Harold Skipper (Jr.) have defined insurance under two have defined insurance under two

different perspectives :different perspectives :

Economic PerspectiveEconomic Perspective – Insurance is a – Insurance is a financial intermediation function by financial intermediation function by which individuals exposed to a specified which individuals exposed to a specified contingency each contribute to a pool contingency each contribute to a pool from which covered events suffered by from which covered events suffered by participating individuals are paid. participating individuals are paid. Individuals purchase the right to collect Individuals purchase the right to collect from the pool if the insured contingency from the pool if the insured contingency occurs. Insurance then is aoccurs. Insurance then is a contingent contingent claim contract on the pool’s assetsclaim contract on the pool’s assets..

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Legal PerspectiveLegal Perspective

► Insurance is anInsurance is an agreementagreement (the insurance (the insurance policy or insurance contracts), by which one policy or insurance contracts), by which one party, called theparty, called the policy ownerpolicy owner, pays a , pays a stipulatedstipulated consideration, called premiumconsideration, called premium, , to to the other party called Insurer in return for the other party called Insurer in return for which thewhich the insurer agrees to pay a defined insurer agrees to pay a defined amount of moneyamount of money or provide a defined or provide a defined service if aservice if a covered event occurs during the covered event occurs during the policy term.policy term.

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What Is Life Insurance ?What Is Life Insurance ?

► It is a contract in which the Insurer, in It is a contract in which the Insurer, in consideration of a certain premium, either in consideration of a certain premium, either in a lump sum or in any other periodical a lump sum or in any other periodical payments, in return agrees to pay to the payments, in return agrees to pay to the assured, or to the person for whose benefit assured, or to the person for whose benefit the policy is taken, a stated sum of money the policy is taken, a stated sum of money on the happening of a particular event on the happening of a particular event contingent on the duration of human life.contingent on the duration of human life.

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Essential Features :Essential Features :

► It is a contract relating to human lifeIt is a contract relating to human life►The contract provides for payment of The contract provides for payment of

lump sum money lump sum money ►The amount is paid at the expiration of The amount is paid at the expiration of

a certain period or on death of a a certain period or on death of a person.person.

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In India, Life Insurance business is In India, Life Insurance business is defined under Section 2 (11) of defined under Section 2 (11) of

Insurance Act, 1938, which reads :Insurance Act, 1938, which reads :

► ““Life Insurance business” means the Life Insurance business” means the business of effecting contracts of business of effecting contracts of insurance upon human life, including any insurance upon human life, including any contract whereby the payment of money contract whereby the payment of money is assured on death (except death by is assured on death (except death by accident only) or the happening of any accident only) or the happening of any contingency dependent upon human life contingency dependent upon human life and any contract which is subject to and any contract which is subject to payment of premium for a term payment of premium for a term dependent on human life and shall be dependent on human life and shall be deemed to include the granting of :deemed to include the granting of :

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► Disability and double or triple indemnity Disability and double or triple indemnity accident benefits, if so provided in the accident benefits, if so provided in the contract of insurance;contract of insurance;

► Annuities upon human life; and Annuities upon human life; and ► Superannuation allowances and annuities Superannuation allowances and annuities

payable out of any fund applicable solely payable out of any fund applicable solely to the relief and maintenance of persons to the relief and maintenance of persons engaged or who have been engaged in any engaged or who have been engaged in any particular profession, trade or employment particular profession, trade or employment or of the dependents of such persons.or of the dependents of such persons.

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► The insurance contracts, which deal with The insurance contracts, which deal with disability, accidental death alone, sickness disability, accidental death alone, sickness etc. are excluded from the purview of life etc. are excluded from the purview of life insurance.insurance.

► However, life insurance contracts can have However, life insurance contracts can have benefits payable on the accidental death or benefits payable on the accidental death or disability of the persons insured as disability of the persons insured as additional benefits on the basic life additional benefits on the basic life insurance contracts.insurance contracts.

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Essentials of a Valid ContractEssentials of a Valid Contract

►Offer and acceptanceOffer and acceptance►Consensus ad idem Consensus ad idem

(“meeting of the minds”)(“meeting of the minds”)►Parties competent to contractParties competent to contract►ConsiderationConsideration►Legality of purposeLegality of purpose

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Principles of Life InsurancePrinciples of Life Insurance

Special Features of Life Insurance ContractsSpecial Features of Life Insurance Contracts

► Insurable Interest :Insurable Interest : The object of insurance should be lawful. The object of insurance should be lawful.

The person proposing for insurance must The person proposing for insurance must have interest in the continued life of the have interest in the continued life of the insured and would suffer pecuniary loss if insured and would suffer pecuniary loss if the insured person dies. This is known as the insured person dies. This is known as Insurable Interest.Insurable Interest.

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In Life Insurance the presence of insurable In Life Insurance the presence of insurable interest is essential at the time of effecting interest is essential at the time of effecting the Contract of Insurance.the Contract of Insurance.

If there is no insurable interest, the If there is no insurable interest, the contract becomes wagering and hence contract becomes wagering and hence illegal.illegal.

Every individual has unlimited insurable Every individual has unlimited insurable interest on his/her life.interest on his/her life.

Husband has insurable interest on the life Husband has insurable interest on the life of his wife and vice versaof his wife and vice versa

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The creditors have insurable interest on The creditors have insurable interest on the lives of debtors to the extent of the lives of debtors to the extent of indebtedness.indebtedness.

Business partners have insurable interest Business partners have insurable interest in the lives of other partners to the extent in the lives of other partners to the extent of their financial interest in the of their financial interest in the partnershippartnership

Employers have insurable interest in the Employers have insurable interest in the lives of employees who are key to the lives of employees who are key to the profitability of the business.profitability of the business.

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►Doctrine of utmost good faithDoctrine of utmost good faith In Life Insurance contracts, a very high In Life Insurance contracts, a very high

degree of good faith is required to exist degree of good faith is required to exist between the parties to the contract, between the parties to the contract, viz., the insurer and the insured. This is viz., the insurer and the insured. This is called the principle of utmost good faith called the principle of utmost good faith (Uberrima fides)(Uberrima fides)

It is the duty of the proposer to disclose It is the duty of the proposer to disclose the material information for proper the material information for proper assessment of risk by the insurerassessment of risk by the insurer

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All the required information for the All the required information for the assessment of risk is known only to the assessment of risk is known only to the proposer and the insurer has no proposer and the insurer has no knowledge of the riskknowledge of the risk

The proposer may not be having The proposer may not be having technical knowledge about the technical knowledge about the insurance products, the benefits, pricing insurance products, the benefits, pricing aspects etc. and hence will have to rely aspects etc. and hence will have to rely upon the insurer to ensure that the upon the insurer to ensure that the terms of the contract are fair and terms of the contract are fair and equitable.equitable.

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Doctrine of AdhesionDoctrine of Adhesion

►The terms of the contract are The terms of the contract are most of the times fixed by one most of the times fixed by one party (the insurer) and with party (the insurer) and with minor exceptions, must be minor exceptions, must be accepted or rejected in total by accepted or rejected in total by the other party (the proposer).the other party (the proposer).

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Principle of IndemnityPrinciple of Indemnity

► Insurance contracts other than life Insurance contracts other than life insurance contract are contracts of insurance contract are contracts of indemnity in the sense that the amount indemnity in the sense that the amount payable by the insurer in case of the payable by the insurer in case of the contingency stated in the policy occurring contingency stated in the policy occurring is limited to the loss that the insured will is limited to the loss that the insured will suffer.suffer.

► The insurance contract promises to keep The insurance contract promises to keep the insured indemnified against the the insured indemnified against the financial loss that he would suffer on financial loss that he would suffer on account of the happening of the event.account of the happening of the event.

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Main Types Of Life InsuranceMain Types Of Life Insurance

►Whole Life InsuranceWhole Life Insurance

Intended to provide Life Insurance Intended to provide Life Insurance protection over one’s lifetime – protection over one’s lifetime – provides for payment of the assured provides for payment of the assured amount upon the insured’s deathamount upon the insured’s death regardless of when it occurs.regardless of when it occurs.

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►The payment of assured sum is a The payment of assured sum is a certainty; only the time of the payment certainty; only the time of the payment of the assured sum is an uncertaintyof the assured sum is an uncertainty

Ordinary Whole Life InsuranceOrdinary Whole Life Insurance Limited Payment Whole Life InsuranceLimited Payment Whole Life Insurance Convertible Whole Life InsuranceConvertible Whole Life Insurance

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Endowment InsuranceEndowment Insurance

►Benefits under the policy paid on the Benefits under the policy paid on the death of the life insured during the death of the life insured during the selected term or on his survival to the selected term or on his survival to the end of the term.end of the term. Normal durations ranging from 10 to 30 Normal durations ranging from 10 to 30

years or more; shorter term policies years or more; shorter term policies ranging from 3 to 10 yearsranging from 3 to 10 years

Single premium endowment insurance Single premium endowment insurance policiespolicies

Money Back or Cash Back or Anticipated Money Back or Cash Back or Anticipated Endowment Insurance PoliciesEndowment Insurance Policies

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Term InsuranceTerm Insurance

► Insurance protection for selected term only – Insurance protection for selected term only – in case the insured person dies during the in case the insured person dies during the term, the benefits are payable.term, the benefits are payable.

► In case of his survival till the end of selected In case of his survival till the end of selected term, the policy normally expires without term, the policy normally expires without any benefit becoming payableany benefit becoming payable

►May be regarded as temporary insurance – May be regarded as temporary insurance – premium for term insurance is relatively premium for term insurance is relatively low.low.

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AnnuitiesAnnuities►Series of periodic paymentsSeries of periodic payments

►Annuity provider (insurer) agrees to Annuity provider (insurer) agrees to pay the purchaser of annuity pay the purchaser of annuity (annuitant) a series of regular (annuitant) a series of regular periodical payments for a fixed period periodical payments for a fixed period or during someone’s life time.or during someone’s life time.

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Group Life InsuranceGroup Life Insurance

► There are groups of people who share There are groups of people who share something in common and are something in common and are connected by some underlying connected by some underlying similarity like occupation, profession, similarity like occupation, profession, employment, social purposes or even employment, social purposes or even entertainment can have a similar entertainment can have a similar need for life insurance which can be need for life insurance which can be met by a single insurance contract.met by a single insurance contract.

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►These categories of products These categories of products that cover the risk of a that cover the risk of a contingency dependent on the contingency dependent on the life of a group of persons, life of a group of persons, come under the group life come under the group life insurance.insurance.

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Conventional GroupsConventional Groups

►Employer – Employee GroupsEmployer – Employee Groups

►Creditor – Debtor GroupsCreditor – Debtor Groups

►Associations of Self-employed Associations of Self-employed ProfessionalsProfessionals

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Non-conventional GroupsNon-conventional Groups

► Co-operative SocietiesCo-operative Societies► Trade UnionsTrade Unions► Welfare AssociationsWelfare Associations► Non-government OrganisationsNon-government Organisations► Voluntary AssociationsVoluntary Associations► Charitable Trusts, etc.Charitable Trusts, etc.

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Life Insurance Products Life Insurance Products

Two groups viz.Two groups viz.►Packaged Products –Packaged Products –

benefits under such products are pre-benefits under such products are pre-defined and customer has to choose the defined and customer has to choose the plan that is closest to this requirementplan that is closest to this requirement

Ability of the agent to explain the different Ability of the agent to explain the different plans is important factorplans is important factor

Most of LIC’s products fall under this Most of LIC’s products fall under this categorycategory

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►Non-packaged Products –Non-packaged Products – products with certain basic products with certain basic

features like Endowmnet or features like Endowmnet or Money-back. the customer to Money-back. the customer to choose as per his needs and choose as per his needs and then expand it by rider benefits then expand it by rider benefits – accident cover, critical illness – accident cover, critical illness cover, disability benefits, cover, disability benefits, hospitalisation cover etc.hospitalisation cover etc.

cater to niche market and have cater to niche market and have profit potential.profit potential.

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► Basic Elements :Basic Elements :(a)(a) Risk coverage – to provide lump Risk coverage – to provide lump

sum amount to the family in the sum amount to the family in the event of untimely death of the event of untimely death of the breadwinner – ‘Term Insurance’ or breadwinner – ‘Term Insurance’ or ‘Temporary Insurance’.‘Temporary Insurance’.

(b)(b) Savings – lump sum amount is Savings – lump sum amount is payable only if the insured payable only if the insured survives till the end of the selected survives till the end of the selected period; if death occurs during the period; if death occurs during the period of insurance, nothing is period of insurance, nothing is payable – ‘Pure Endowment’.payable – ‘Pure Endowment’.

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►Term Insurance :Term Insurance : a contract for limited number of yearsa contract for limited number of years payment only if death occurs during payment only if death occurs during

the termthe term low cost / high risk coveragelow cost / high risk coverage stricter underwriting rules and stricter underwriting rules and

restrictionsrestrictions renewable feature and convertible renewable feature and convertible

featurefeature increasing or decreasing Term increasing or decreasing Term

InsuranceInsurance

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►Whole Life Insurance –Whole Life Insurance – Risk coverage for the death of the insured- Risk coverage for the death of the insured-

whenever it may happenwhenever it may happen No fixed termNo fixed term Variations – Variations – Pure Whole LifePure Whole Life – Premium payable – Premium payable

throughout the life of the insured till death. Risk throughout the life of the insured till death. Risk coverage for duration of life – amount payable coverage for duration of life – amount payable on deathon death

Limited Payment Whole life Limited Payment Whole life – Premium payable – Premium payable for limited / shorter period or till death if earlier for limited / shorter period or till death if earlier risk coverage throughout liferisk coverage throughout life

Premium rate is low than Term InsurancePremium rate is low than Term Insurance Provide permanent protection at moderate costProvide permanent protection at moderate cost Convertible Whole Life PlanConvertible Whole Life Plan

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►Endowment Assurance – The insurer Endowment Assurance – The insurer agreesagrees

►to pay the insurance money in the event of to pay the insurance money in the event of death of the insured during endowment termdeath of the insured during endowment term

►to pay the insurance money in the event of the to pay the insurance money in the event of the insured surviving till the end of the endowment insured surviving till the end of the endowment termterm

Economic concept – decreasing term Economic concept – decreasing term assurance and increasing investment – assurance and increasing investment – Reserve value supplemented by Term Reserve value supplemented by Term InsuranceInsurance

Premium rates usually higher than Whole Premium rates usually higher than Whole Life PlanLife Plan

Sound plan for various types of customers.Sound plan for various types of customers.

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Life Insurance Products In Life Insurance Products In IndiaIndia

► Term InsuranceTerm Insurance Two-year temporary insuranceTwo-year temporary insurance Convertible term insurance for 5-7 years – option Convertible term insurance for 5-7 years – option

to convert into limited payment whole life or to convert into limited payment whole life or endowment assuranceendowment assurance

Bima Sandesh – Return of premium on survivalBima Sandesh – Return of premium on survival Bima Kiran – Term insurance; Return of premium Bima Kiran – Term insurance; Return of premium

on survival – free insurance cover for 10 years to on survival – free insurance cover for 10 years to the extent of 30% - 60% of the face value of the extent of 30% - 60% of the face value of policypolicy

Mortgage Redemption Assurance – to cover Mortgage Redemption Assurance – to cover outstanding loan under house mortgage.outstanding loan under house mortgage.

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►Whole Life PlansWhole Life Plans Whole Life Policy – premiums Whole Life Policy – premiums

payable for 35 years or age 80 payable for 35 years or age 80 years, whichever is later; years, whichever is later; insurance money payable on deathinsurance money payable on death

Limited Payment Whole Life PolicyLimited Payment Whole Life Policy Convertible Whole Life Policy – Convertible Whole Life Policy –

Premiums payable upto age 70 of Premiums payable upto age 70 of the insured – limited payment – the insured – limited payment – option to covert at the end of 5 option to covert at the end of 5 years into Endowment Planyears into Endowment Plan

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Endowment PlansEndowment Plans► Endowment Assurance (with or without Endowment Assurance (with or without

profits)profits)► Bhavishya Jeevan Policy (with profits) – first Bhavishya Jeevan Policy (with profits) – first

5 years premium are quite high from 65 years premium are quite high from 6thth year scaled down to almost 1/3year scaled down to almost 1/3rdrd..

► Jeevan Mitra (Double Cover or Triple Cover)Jeevan Mitra (Double Cover or Triple Cover)► Jeevan Griha (Double Cover or Triple Cover) Jeevan Griha (Double Cover or Triple Cover)

– Low cost without profit endowment – Low cost without profit endowment assurance – face value paid on maturityassurance – face value paid on maturity

► New Jan Raksha (with profits)New Jan Raksha (with profits)► Jeevan Shree (without profits but with Jeevan Shree (without profits but with

guaranteed addition) – limited premium guaranteed addition) – limited premium paying period – keyman insurancepaying period – keyman insurance

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► Jeevan PramukhJeevan Pramukh► Asha Deep II (with profits) – Endowment Plan with Asha Deep II (with profits) – Endowment Plan with

riders to cover four serious illnesses viz. cancer, riders to cover four serious illnesses viz. cancer, paralytic stroke leading to permanent disability, paralytic stroke leading to permanent disability, kidney failure (both kidneys), and cardiac bye-pass kidney failure (both kidneys), and cardiac bye-pass surgery – except 1surgery – except 1stst year – 50% of S.A. premium year – 50% of S.A. premium waiver – annuity of 10% of S.A. till maturitywaiver – annuity of 10% of S.A. till maturity

► Balance 50% of S.A. on death or maturity with Balance 50% of S.A. on death or maturity with bonusbonus

► Marriage Endowment or Education Annuity (with Marriage Endowment or Education Annuity (with profits) – no immediate payment on death – profits) – no immediate payment on death – payment in lumpsum in case of marriage – payment in lumpsum in case of marriage – payment in half yearly instalments over 5 years in payment in half yearly instalments over 5 years in Education Annuity from date of maturity only.Education Annuity from date of maturity only.

► Money back plansMoney back plans

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Special PlansSpecial Plans► For Children – For Children –

Children Deferred Assurance PlansChildren Deferred Assurance Plans New Children Deferred Assurance PlanNew Children Deferred Assurance Plan Jeevan BalyaJeevan Balya Jeevan KishoreJeevan Kishore Children’s Money Back PlanChildren’s Money Back Plan Jeevan AnuragJeevan Anurag

► For Disabled ChildrenFor Disabled Children Jeevan AdharJeevan Adhar Jeevan VishwasJeevan Vishwas IT exemption upto Rs. 20,000/- on premiumIT exemption upto Rs. 20,000/- on premium

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► Jeevan Asha IIJeevan Asha II Endowment Assurance with medical benefit Endowment Assurance with medical benefit

riderrider 2% of face value paid every 2 year for 2% of face value paid every 2 year for

medical checkupmedical checkup Reimbursement of expenses upto 20% to Reimbursement of expenses upto 20% to

50% of face value of policy for minor / 50% of face value of policy for minor / major surgeriesmajor surgeries

On death full S.A.On death full S.A.► Joint Life PoliciesJoint Life Policies

Jeevan SaathiJeevan Saathi Jeevan Saritha – benefit of joint life and last Jeevan Saritha – benefit of joint life and last

survivorship annuity apart from lump sum survivorship annuity apart from lump sum payment on death or maturitypayment on death or maturity

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Unit Linked Insurance PlanUnit Linked Insurance Plan

►Bima Plus – Capital Market Linked Bima Plus – Capital Market Linked Insurance PlanInsurance Plan Premium has two partsPremium has two parts

►Risk premiumRisk premium►Investment premiumInvestment premium

Investment at the choice of policyholder – Investment at the choice of policyholder – from three combinations viz.from three combinations viz.►Secured fund (complete security)Secured fund (complete security)►Balanced fund (moderate risk)Balanced fund (moderate risk)►Risk fund (high risk investments)Risk fund (high risk investments)

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► Investment PatternInvestment Pattern

Equity Debt Liquid

Secured Not less than 10% 80 % 20 %

Balanced Not less than 30% 80 % 20 %

Risk Not less than 50% 75 % 25 %

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►Policy holder to select a Policy holder to select a fundfund

►Switch over twice during Switch over twice during the term subject to the term subject to minimum gap of 2 yearsminimum gap of 2 years

►Cost of switching over Cost of switching over 2% of the current bid 2% of the current bid value of the fundvalue of the fund

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Life Insurance Products of Life Insurance Products of Private CompaniesPrivate Companies

►HDFC Standard Life HDFC Standard Life Endowment Assurance PlanEndowment Assurance Plan Money Back Plan – payment of cash lump Money Back Plan – payment of cash lump

sum at 5 yearly intervalssum at 5 yearly intervals Group Insurance Policy – specified group for Group Insurance Policy – specified group for

a term of one yeara term of one year

►Endowment Assurance PlansEndowment Assurance Plans ICICI Pru Single Premium Bond – savings with ICICI Pru Single Premium Bond – savings with

life cover – fixed term plan of 5 or 10 yearslife cover – fixed term plan of 5 or 10 years

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► ICICI Pru Save n’ ProtectICICI Pru Save n’ Protect Fixed term policyFixed term policy Policyholder can accumulate funds for future Policyholder can accumulate funds for future

requirements on a regular basis i.e. Children’s requirements on a regular basis i.e. Children’s education, marriage etc.education, marriage etc.

Extended Term Assurance cover for 5 years for Extended Term Assurance cover for 5 years for 50% of S.A. without payment of premium50% of S.A. without payment of premium

► Add-On’s or RidersAdd-On’s or Riders Option for additional benefitsOption for additional benefits

►accident and disability benefitaccident and disability benefit►critical illness benefitcritical illness benefit►major surgical assistancemajor surgical assistance► level term assurancelevel term assurance

During tenure of extended life cover, no rider During tenure of extended life cover, no rider benefit availablebenefit available

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ICICI Pru Forever LifeICICI Pru Forever Life

►Regular income for life after prescribed Regular income for life after prescribed datedate

►Life cover during the deferment periodLife cover during the deferment period►OptionsOptions

life time annuitylife time annuity life annuity certain for 5, 10, 15 yearslife annuity certain for 5, 10, 15 years life annuity with return of purchase pricelife annuity with return of purchase price joint life, last survivor annuityjoint life, last survivor annuity

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►Add-On’s or Riders – one can be Add-On’s or Riders – one can be chosenchosen Accident and Disability benefitAccident and Disability benefit Major surgical assistanceMajor surgical assistance Level Term InsuranceLevel Term Insurance

► ICICI Pru Cash BankICICI Pru Cash Bank Three-in-one combining savings, Three-in-one combining savings,

liquidity and protectionliquidity and protection Term of 15 or 20 yearsTerm of 15 or 20 years Survival benefit at regular intervalsSurvival benefit at regular intervals

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Add-on’s or RidersAdd-on’s or Riders►Accident and Disability benefitAccident and Disability benefit►Critical illness benefitCritical illness benefit►Major surgical assistanceMajor surgical assistance►Level Term InsuranceLevel Term Insurance

►Protection PlansProtection Plans The Pru Life Guard or Term Level The Pru Life Guard or Term Level

AssuranceAssurance►Death Risk CoverageDeath Risk Coverage►No maturity benefits in case of single No maturity benefits in case of single

premium level term policypremium level term policy

Add-on’s or Riders as in ICICI Pru Cash Add-on’s or Riders as in ICICI Pru Cash BankBank

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Birla Sun Life Insurance Birla Sun Life Insurance Company Ltd.Company Ltd.

►Flexi Save Plus Endowment PlanFlexi Save Plus Endowment Plan Premium for a fixed duration or in a single Premium for a fixed duration or in a single

lump sumlump sum Benefit of insurance cover as also Benefit of insurance cover as also

investment to help savings grow – bonds / investment to help savings grow – bonds / securitiessecurities

Loan facility upto 90% of the total policy Loan facility upto 90% of the total policy value on payment of interest at fixed ratevalue on payment of interest at fixed rate

Facility of withdrawal from 3Facility of withdrawal from 3rdrd policy policy anniversary – can close the plan earlier – anniversary – can close the plan earlier – no surrender charges after 4no surrender charges after 4thth year. year.

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►Flexi Cash Flow Money Back Flexi Cash Flow Money Back PlanPlan fixed term policy with periodic fixed term policy with periodic

payback at fixed intervalspayback at fixed intervals offers flexibility to choose offers flexibility to choose

between the investment option, between the investment option, automatic premium payment, automatic premium payment, duration of the plan etc.duration of the plan etc.

►Other benefits as in Flexi Save Other benefits as in Flexi Save Plus Endowment PlanPlus Endowment Plan

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►Flexi Life Line-Whole Life PlanFlexi Life Line-Whole Life Plan Higher return and security to Higher return and security to

familyfamily Members to keep paying Members to keep paying

premium and enjoy the benefit premium and enjoy the benefit of savings and life insuranceof savings and life insurance

Offers the flexibility to choose Offers the flexibility to choose the premium payment the premium payment investment option, duration investment option, duration etc.etc.

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Bajaj Allianz Life Insurance Co. Bajaj Allianz Life Insurance Co. Ltd.Ltd.

► Group Credit Care Plan (Employer – Employee)Group Credit Care Plan (Employer – Employee) Group Term Insurance Scheme providing basic Group Term Insurance Scheme providing basic

life insurance protection to employees who life insurance protection to employees who have taken loan from employerhave taken loan from employer

Covering risk of outstanding loan in case of Covering risk of outstanding loan in case of premature deathpremature death

One policy document – to the employerOne policy document – to the employer Accidental death benefit – additional amount Accidental death benefit – additional amount

equal to life cover granted – total accident cover equal to life cover granted – total accident cover limit 10 lacslimit 10 lacs

► Accidental Permanent Total Disability Benefit – Accidental Permanent Total Disability Benefit – Payment of an amount equal to life cover granted Payment of an amount equal to life cover granted total accidental disability cover limit – 10 lacstotal accidental disability cover limit – 10 lacs

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►Group Risk Care Plan Group Risk Care Plan (Employer – Employee)(Employer – Employee) Risk coverageRisk coverage Life Insurance Benefit for all Life Insurance Benefit for all

membersmembers One policy document to the One policy document to the

employeremployer Accidental Death BenefitAccidental Death Benefit Accidental Permanent Total Accidental Permanent Total

Disability BenefitsDisability Benefits

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►Group Credit Care Plan (Non Group Credit Care Plan (Non Employer – Employee)Employer – Employee) Group Term Insurance Scheme to Group Term Insurance Scheme to

people having availed a loan from an people having availed a loan from an institution or co-operativeinstitution or co-operative

Covers risk of outstanding loanCovers risk of outstanding loan One policy document to the One policy document to the

institution or co-operativeinstitution or co-operative Facility of enhancement of cover by Facility of enhancement of cover by

adding accidental death benefit / adding accidental death benefit / accidental permanent total disability accidental permanent total disability benefit.benefit.

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►Group Risk Care Plan (Non Group Risk Care Plan (Non Employer – Employee)Employer – Employee) Basic life insurance protection to Basic life insurance protection to

group membersgroup members Covers risk of death – all Covers risk of death – all

members of the schememembers of the scheme One policy document to the group One policy document to the group

policyholderpolicyholder Facility of enhancement of cover Facility of enhancement of cover

– Accidental death benefit / – Accidental death benefit / accidental permanent – total accidental permanent – total disability benefit.disability benefit.

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►Term Care Plan –Term Care Plan –Term Insurance Plan – life Term Insurance Plan – life cover with return of premium cover with return of premium on maturityon maturity

Life insurance cover at low Life insurance cover at low costcost

Two premium payment Two premium payment optionsoptions►regular premium payment regular premium payment throughout the selected termthroughout the selected term►single premium paymentsingle premium payment

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►Option to choose upto 5 additional Option to choose upto 5 additional benefitsbenefits economyeconomy Protect – 3 in-built additional benefitsProtect – 3 in-built additional benefits

►Accidental death benefitAccidental death benefit►Accidental permanent total / partial disability Accidental permanent total / partial disability

benefitbenefit►Waiver of premium benefitWaiver of premium benefit

HealthHealth►Critical illness benefitCritical illness benefit►Hospital cash benefitHospital cash benefit

Total – providing 5 in-built benefits of Total – providing 5 in-built benefits of ‘Protect’ & ‘Health’.‘Protect’ & ‘Health’.

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►Risk Care Plan Risk Care Plan a pure term insurance plan – very a pure term insurance plan – very

economicaleconomical offers cover at the lowest possible offers cover at the lowest possible

costcost no survival benefitno survival benefit

►Life time Care PlanLife time Care Plan a life time endowment plan with a life time endowment plan with

profitsprofits 4 different plan type – economy, 4 different plan type – economy,

protect health and total planprotect health and total plan

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►Save Care Plan Save Care Plan Endowment plan with profits Endowment plan with profits for a specified period to meet for a specified period to meet planned expenditures like planned expenditures like education / wedding of education / wedding of childrenchildren

Comes in 4 types – Economy Comes in 4 types – Economy Single Premium Plan, Single Premium Plan, Economy Plan, Protect Plan, Economy Plan, Protect Plan, Health PlanHealth Plan

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Products In Overseas MarketProducts In Overseas Market

►Term Insurance - for different specified Term Insurance - for different specified periodperiod Renewable and non-renewableRenewable and non-renewable Convertible and non-convertibleConvertible and non-convertible

►Two other formsTwo other forms Level Term Insurance – provides specified Level Term Insurance – provides specified

amount of coverage for the entire period amount of coverage for the entire period of policyof policy

Decreasing Term Life InsuranceDecreasing Term Life Insurance

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Universal Life InsuranceUniversal Life Insurance

►Variation of whole life, the pure Variation of whole life, the pure insurance part (the Term portion) is insurance part (the Term portion) is separated from the investment (cash separated from the investment (cash portion)portion)

► Investment portion invested in money Investment portion invested in money market fundsmarket funds

►Cash value portion is set up as an Cash value portion is set up as an accumulation fund to which investment accumulation fund to which investment income is creditedincome is credited

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► Death benefit (Term Insurance) is paid Death benefit (Term Insurance) is paid out of accumulation fundout of accumulation fund

► The cash value of Universal Life The cash value of Universal Life Insurance grows at variable rateInsurance grows at variable rate

► The insured can vary his annual death The insured can vary his annual death benefit and the annual premiumbenefit and the annual premium

► Provision for making partial surrender Provision for making partial surrender and take policy loan against cash valueand take policy loan against cash value

► When earnings are good, policy owner When earnings are good, policy owner can put more money in the cash portion can put more money in the cash portion of the policyof the policy

► Normally there is guaranted minimum Normally there is guaranted minimum interest rateinterest rate

► A few other optionsA few other options

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► Variable Life InsuranceVariable Life Insurance A form of whole life insurance – Term portion; A form of whole life insurance – Term portion;

premium towards administrative expenses; part premium towards administrative expenses; part towards investment or cash value portiontowards investment or cash value portion

The insured may select to invest the funds in The insured may select to invest the funds in various investments : stocks, bonds, MF’s. He various investments : stocks, bonds, MF’s. He may only choose from investment vehicles from may only choose from investment vehicles from the insurance companies portfolio.the insurance companies portfolio.

Option to switch investment vehicles a few Option to switch investment vehicles a few timestimes

It is expensive – commission and service fee is It is expensive – commission and service fee is high.high.

Value of death benefit may fluctuate up or down Value of death benefit may fluctuate up or down depending on the performance of the depending on the performance of the investment portion. However, death benefit can investment portion. However, death benefit can never fall below a defined level.never fall below a defined level.

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► Whole Life Insurance Products in Foreign Whole Life Insurance Products in Foreign MarketsMarkets Part premium for insurance; small part towards Part premium for insurance; small part towards

admin. expenses; balance for investmentadmin. expenses; balance for investment Insurance coverage for entire lifeInsurance coverage for entire life Premium throughout life or selected term (10, Premium throughout life or selected term (10,

20, 30 years)20, 30 years) Provision for single premiumProvision for single premium Cash value portion belongs to insured; can take Cash value portion belongs to insured; can take

loan or cash; interest on accumulation fund is loan or cash; interest on accumulation fund is tax freetax free

Premiums are fixed regardless of the age or Premiums are fixed regardless of the age or health of the policy owner.health of the policy owner.

Investment vehicles are generally bonds and Investment vehicles are generally bonds and mortgagesmortgages

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►Progressive Protection PolicyProgressive Protection Policy Designed to adapt to changing Designed to adapt to changing

circumstancescircumstances Lump sum in the event of death / Lump sum in the event of death /

terminal illnessterminal illness No cash-in-value; purely for protection; No cash-in-value; purely for protection;

No investmentNo investment Provision for increase / decrease in cover Provision for increase / decrease in cover

at any time other than the first yearat any time other than the first year Option to have the policy increase Option to have the policy increase

automatically every yearautomatically every year Option for mode of payment of premiumOption for mode of payment of premium

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