presents - safal institute · new jeevan nidhi 189. new jeevan akshay – vi single premium plans...
TRANSCRIPT
Presents
Disclaimer
Preface
Contents
Appendix
Contents
Full Index
1. About LIC of India
2. Principles and Practice of Life Insurance
3. Selling Process
4. Underwriting Aspects
5. Life Insurance Concepts
6. Basic Insurance Contracts and Riders
7. Individual Insurance Plans
8. Business Insurance
9. Financial Tables
10. Appendix
FULL INDEX
Part-I About LIC of India
1. Brief History of Life Insurance in India.
2. Objective, Vision and Mission of LIC of India.
3. Profile of LIC of India as on 31.03.2015.
4. Grievance Redressal Policy of LIC of India.
Part-II Principles and Practice of Life Insurance
1. What is Life Insurance
2. Principles of Life Insurance Life Insurance Contract Principles of Utmost Good Faith Insurable Interest Principles of Indemnity Different Risks Needs & Insurance
3. How Surplus is Generated
4. Vesting and Distribution of Bonuses.
Continued…
5. Solvency margin and its impact on bonus rates.
6. Role of an Agent.
7. Code of conduct for agents.
8. IRDA policyholder’s protection act 2002.
Part-III Selling Process
1. The Common Denominator of Success
2. 5 Basic Requirements for Success
3. Need Based Selling Steps.
4. Prospecting.
5. 20 Point Activity System
Part-IV Life Insurance Concepts
1. Family Protection
2. An Aid to Thrift
3. Easier Terms
4. Estate Creation
Continued…
5. An Investment
6. A Device for Business Finance
7. A Complete Financial Programme
8. A Way of Life
9. Human Life Value
10. Capital Need Analysis
Part-V Underwriting Aspects
1. Selection and Classification and of Risk
2. Age Proofs
3. SUC and TRSA
4. Non-Medical Rules
5. Non-Medical Rules under Single Premium
and Bima Bachat
6. Medical Examination Rules including TPA
7. Special Medical Reports Rules
8. Validity of Medical Reports Continued…
9. Minimum waiting period for Certain Ailments
10. Personal History of Certain Diseases
11. List of Ailments for Branch Decision
12. Insurance on Female Lives
13. Insurance on Minor Lives
14. Insurance on Lives of Major Students
15. Insurance on Physically Handicapped Lives
16. Insurance on Lives of PEPs
17. Insurance on NRI Lives
18. Residence Groups and ratings for NRI’s
19. RBI Foreign Exchange Management – Life Insurance Memorandum (LIM)
20. Occupational Ratings
21. Applicable Clauses Continued…
22. Financial Underwriting
23. Summary of Financial Underwriting
24. Example of Financial Underwriting
Part-VI
Basic Insurance Contracts and Riders
1. Basic Insurance Contracts
2. Accident & Disability Benefit Rider
3. Linked Accidental Death Benefit Rider
4. New Term Assurance Rider
5. Premium Waiver Benefit Rider
Part-VII Individual Insurance Plans
Plan No. Name of Plan
TERM INSURANCE PLANS
822. Anmol Jeevan - II
823. Amulya Jeevan- II Continued…
825. e-Term
Comparison 823 v/s 825
ENDOWMENT TYPE PLANS
814. New Endowment Plan
815. New Jeevan Anand
Paid and SV under 815
827. Jeevan Rakshak
830. Limited Payment Endowment
833. Jeevan Lakshya
836. Jeevan Labh
838. Jeevan Pragati
MONEY BACK PLANS
820. New Money Back Plan – 20 years
821. New Money Back Plan- 25 years
841. Bima Diamond
Continued…
CHILDREN PLANS
832. Children Money Back
834. Jeevan Tarun
PENSION PLANS 818. New Jeevan Nidhi
189. New Jeevan Akshay – VI
SINGLE PREMIUM PLANS
816. New Bima Bachat
817. Single Premium Endowment Plan
ULIP PLANS
835. New Endowment Plus
HEALTH INSURANCE PLANS
904 Jeevan Arogya
Continued…
Part-VIII Business Insurance
1. Key Man Insurance
2. Partnership Insurance
3. Employer Employee Insurance
4. Employee Retention Scheme
5. Salary Saving Scheme
Part-IX Financial Tables
1. Future Value of Single Payment
(Compound Interest) 2. Future Value of Annual Payment (Sinking
Fund) 3. Present Value of Annual Payments
(Discounting Factors)
4. Effective interest rate
Continued…
Part-X Appendix
1. Non- Medical Charts
2. Special Medical Reports Chart
3. Medical Chart for Minors
4. Jeevan Arogya Medical Report Chart
5. Bonus Rates as on 31.03.2015
6. Bonus rates with FAB as on 31.03.2015
7. MHR Limits
8. KYC Norms
9. Rate of interest for FY 2016-17
10. Settlement Options
11. Back Dating Rules
12. Advance Payment of Premiums
13. Tax Laws and Life Insurance (A.Y. 2017 – 18)
14. Attachment of Policy
15. MWP Act Policies
16. HUF Policies
17. Check List before submitting proposal form
Continued…
18. Commission rates
19. Results of LIC 2015-16
20. Death Claim analysis 2014-15
Part-VI Individual Insurance Plans
1. TERM INSURANCE PLANS
2. ENDOWMENT TYPE PLANS
3. MONEY BACK PLANS
4. CHILDREN PLANS
5. PENSION PLANS
6. SINGLE PREMIUM PLANS
7. HEALTH INSURANCE PLAN
ENDOWMENT TYPE PLANS
814. New Endowment Plan
815. New Jeevan Anand
Paid and SV under 815
827. Jeevan Rakshak
830. Limited Payment Endowment
833. Jeevan Lakshya
836. Jeevan Labh
PLAN 833 – Jeevan Lakshya
(1) Details & Benefits
(2) Examples
(3) Features & Conditions
(4) Underwriting Rules
PLAN 833 LIC’s JEEVAN LAKSHYA
(Cir: PD/67 Dtd 11/03/2015, U&R/121 Dtd 11/03/2015, Launch
Date: 12/03/2015) DETAILS:
This is a limited premium, non-linked, with profits Endowment Plan.
Premiums are payable for 3 years less than policy term.
DEATH BENEFIT:
Sum Assured on Death (Should not be less than 105% of total
premiums paid):
i) 10% of Basic S.A will be paid from policy Anniversary after
death of life assured till policy anniversary prior to
Maturity and
ii) 110% of Basic S.A. + Bonus for full term + FAB, if any, will
be paid on date of Maturity.
MATURITY BENEFIT:
Basic Sum Assured + Vested Bonus + FAB if any.
UIN No: 512N297V01
Example*: (Plan 833)
Age- 35, S.A.- `5,00,000, Policy Term - 21 years,
PPT- 18 years ( 21-3), Basic Yearly Premium: `25,757
*Bonus and FAB rates given under example are for illustration purpose only.
Client Specific Benefit illustration @4% & 8% gross investment return must be provided to Prospect.
Entry Maturity at Age 35 Age 53 Age 56
= Basic S.A. + Vested Bonus + FAB = `5,00,000 + `5,04,000 ( 48x500x21) + `50,000 (100x500)
=`10,54,000 i. 10% of S.A. i.e `50,000 will be paid from 6th to 20th Policy Anniversary.
i.e for 15 years. Total Amount `50,000 x 15 =`7,50,000 ii. At Maturity : 110 % of S.A + Vested Bonus for 21 years + FAB = `5,50,000 + `5,04,000 (48x500x21) + `50,000 (100x500) = `11,04,000 Total Death Benefit =`7,50,000 + `11,04,000 =`18,54,000
105% of Total Basic Premiums Paid= `25,757x 6 x 1.05 = `1,62,269 Death benefit payable is more than 105% of total Basic Premiums Paid.
In case of death where Term Rider and Accident Rider are opted: Under Natural Death : Term Rider S.A opted will be paid immediately. Under Accidental Death : Term Rider S.A + Accidental Rider S.A opted will be paid immediately.
Maturity Benefit
Premium Stops
In case of Death at age 40 (6th Policy year)
Death Benefit
Features & Conditions: (Plan 833)
Minimum age at entry : 18 years lbd Maximum age at entry : 50 years nbd Maximum maturity age : 65 years nbd Policy Term : 13 to 25 years. Premium Paying Term :( Policy Term -3) Years Minimum S.A. : `1,00,000/- & in multiples of ` 10,000 thereafter. Maximum S.A. : No limit
Available Riders: 1. Accident & Permanent Disability Benefit for full policy term/age 65- Max
1 Crore. 2. Term Assurance Rider.
Mode of Payment: Yearly, Half Yly, Qly & Mly ( SSS & ECS)
Rebates: Mode Rebate Yearly : 2%, Half Yly : 1 %
High Basic S.A. Rebate Upto 1,90,000 : Nil 2,00,000 to 4,90,000 : `2.00 %o Basic SA 5,00,000/- & above : `3.00 %o Basic SA
Paid Up/ Surrender/Policy Loan: After payment of premium of 3 full years.
Revivals: Within 2 years of FUP.
Back Dating: Allowed with lean Month’s benefits.
Proposal Form: Revised 300.
Service Tax: 1st Year of Policy : 3.625% 2nd Year onwards : 1.8125%
Tax Benefits : On Basic Premiums : u/s 80C Maturity/Death claim : u/s 10(10D)
Underwriting Rules: (Plan 833)
Without Term Rider:
Non -Medical Schemes: All Allowed.
Non-Standard Age Proofs: All Allowed.
Female Lives : All Allowed. Pregnant ladies: Cat I & II only up to 24 weeks of pregnancy.
Major Students: Max rated up S.A. inclusive of all plans `1crore. S.A. beyond `1 crore at ZUS/CUS with MM’s recommendation.
Sub-Standard Major lives: Up to EMR Class Ten only. Physically Handicapped lives should be gainfully employed.
Occupation/Residence Extra: Policy term
Rating Up Factor
Policy term
Rating Up Factor
10 Yrs 1.35 11 yrs 1.30
12 yrs 1.25 13-15 yrs 1.20
16-18 yrs 1.15 19-25 yrs 1.10
Actual Sum Assured (ASA) for SUC: For FMR, Special Reports, MHR & TRSA: Basic S.A. only.
Keyman/Partnership/Empl-Employee: Allowed only under Employer-Employee
NRIs & FNIOs Residence Group: Group I & II : Not Allowed. Group III to VI : Allowed with extra. Group VII : Allowed without extra. House wives and NMS Scheme: Group V, VI and VII only. Mail Order : Only NRIs of Group III to VII.
With Term Rider: U/W Rules of Term Rider will apply.
Non Medical Charts
Non Medical General
Age (NBD)
Sum Under Consideration (SUC)
Standard Age proof
NSAP – I NSAP - II NSAP- III
18 to 35 5 lakhs 5 lakhs 3 lakhs 2 lakhs
36 to 45 3 lakhs 3 lakhs 2 lakhs 1.50 lakhs
46 to 50 2 lakhs 2 lakhs 1.25 lakhs 1.25 lakhs
Plans
Allowed
814,815,816,817,818, 820, 821, 830, 833, 835,
836, 837 & 838
814,815,816, 817,818,820
821, 830, 833, 835, 836 & 837
814,815,816, 817,818, 820, 821, 833, 835
& 836
*SUC= 1.25 times of S.A under plans 815,820, 821, 830 & 838
NMS/NMG Professional/NRIs & FNIO’s
Non Medical for Minors and Major Students
Age SUC Plans Allowed Major
Students up to age 25 yrs
15 lakhs 814,815,816,817,818,820,821, 830, 833,
835, 836, 837 & 838
0 to 9 years 25 lakhs 814, 817, 832, 834, 835, 836 & 837
10 to 17 years 8 lakhs 814, 816, 817, 820, 821, 832, 834, 835,
836, 837 & 838
*SUC= 1.25 times of S.A under plans 815,820, 821, 830 & 838
Age (NBD) as on date of Proposal
Sum Under Consideration (SUC)
Non-Medical Special
NMG for Professionals
NRI’s & FNIOs under NMS/Professional of
Group V, VI & VII Countries only.
18 to 35 Rs-20 lakhs Rs-15 lakhs Rs-20 lakhs
36 to 45 Rs-15 lakhs Rs-10 lakhs Rs-15 lakhs
46 to 50 Rs-5 lakhs Rs-5 lakhs Rs-5 lakhs
Plans Allowed 814,815,816,817,818,820,821,830, 833, 835, 836, 837, 838,
Term Rider & PWB
*SUC= 1.25 times of S.A under plans 815,820, 821, 830 & 838
SPECIAL MEDICAL REPORT CHART Applicable to proposals under medical category for all plans
(Cir: U&R/4/2008 dt. 15/01/2008)
Notes: For Critical Illness Rider: Age 36 and above, ECG, Hb% & FBS are compulsory for any SA.
For Revivals age 56 and above: Special Reports are not required for sum to be revived upto ` 50,000/-.
Sum Under
Consideration
Age at Entry (Last Birthday)
Upto 35 years
36 to 45 years 46 to 55 years 56 & above
Upto 2,00,000 Nil Nil Nil Rest ECG, FBS
(Rs.150/-)
2,00,001 to 5,00,000
Nil Nil Rest ECG ,FBS
(Rs.150/-)
Rest ECG, FBS,
Lipidogram, RUA, Hb%
( Rs. 380/-)
5,00,001 to 10,00,000
Nil Nil
Rest ECG, FBS, Lipidogram, RUA,
Hb%
( Rs.380/-)
Rest ECG, FBS, Lipidogram, RUA,
Hb%
( Rs.380/-)
10,00,001 to
15,00,000 Nil
Lipidogarm, FBS, RUA ,
Elisa for HIV, Hb%
(Rs.520/-)
Rest ECG, SBT-13, RUA,
Hb% (Rs. 1,170/-)
Rest ECG, Haemogram,
SBT-13, CTMT, RUA,
(Rs. 2,020/-)
15,00,001 to
35,00,000
Lipidogarm, FBS, Elisa
for HIV, Hb% (Rs. 490/-)
Rest ECG, SBT-13, RUA,
Hb% ( Rs. 1,170/-)
Rest ECG, Haemogram, SBT-13, RUA,
CTMT, (Rs. 2,020/-)
Rest ECG, Haemogram, SBT-13, RUA,
CTMT, HbAlc (Rs. 2,270/-)
35,00,001 to
50,00,000
Rest ECG, SBT-13,
RUA, Hb%
( Rs. 1,170/-)
Rest ECG, Haemogram,
SBT-13, RUA, CTMT,
(Rs. 2,020/-)
Rest ECG, Haemogram,
SBT-13, RUA, CTMT, HbAlc (Rs. 2,270/-)
Rest ECG, Haemogram, SBT-13, RUA,
CTMT, HbAlc, Chest X-Ray (Rs. 2,370/-)
50,00,001 and Above
Rest ECG,
Haemogram, SBT-13,
RUA.
(Rs. 1,220/-)
Rest ECG,
Haemogram, SBT-13, RUA, CTMT, HbAlc
(Rs. 2,270/-)
Rest ECG,
Haemogram, SBT-13, RUA, CTMT, HbAlc,
Chest X-Ray (Rs. 2,370/-)
Rest ECG,
Haemogram, SBT-13, RUA, CTMT, HbAlc,
Chest X-Ray (Rs. 2,370/-)
Results of LIC of India For the year 2015-16
Valuation Surplus after Tax Govt. Share @ 5% 95% to be distributed to Policy Holders (Investment by Govt in LIC in 1956 was ` 5.00 crores)
: ` 50,035.14 Crores : ` 2,501.75 Crores : ` 47,533.38 Crores
Total Number of Policies in force-Individual (More than Population of Many Countries)
: 29.02 Crores
Total Premium Income (The daily collection of Corporation is ` 729 Crores)
: ` 2,66,265 Crores
Total Policy Payments : ` 1,43,445 Crores
Total Gross Income for the year (Four Times the income of leading Bank in India)
: ` 4,24,186 Crores
Total Number of Claims Settled Total Amount paid towards claims
: 2,15,71,000 : ` 1,01,042 Crores
Percentage of Death Claim Settled Percentage of Maturity Claims Settled
: 99.55% : 99.75%
First Year Premium Income : ` 97,674 Crores
Total Life Fund : ` 20,57,625 Crores
Total Assets of Corporation : ` 22,10,378 Crores
Investment in Govt/Infra/Social Sector : ` 14,85,901 Crores
LIC’s Market Share as on 31/03/2016 ( Balance with 23 other Companies)
: 70.44% on Premium : 76.84% on Policies
Death Claim Analysis of All Life Insurers for the Year 2014-15
Source: IRDA's Annual Report 2014-2015, Page no 127, Available at www.irda.gov.in
Company
% of Claims Paid
% of Claims Repudiated
% of Claims Pending
Number Amount Number Amount Number Amount
Aegon Religare 89.78 85.93 10.00 14.38 0.22 0.31
Aviva 83.07 71.99 16.40 26.63 0.53 1.38
Bajaj Allianz 91.85 80.98 5.13 10.55 3.02 8.47
Bharati AXA 80.90 70.92 16.22 22.45 2.88 6.63
Birla Sunlife 95.30 87.10 3.02 7.35 1.68 5.55
Canara HSBC 89.58 79.77 7.29 13.65 3.13 6.59
DLF Pramerica 57.19 48.80 35.47 41.19 5.77 7.88
Edelweiss Tokio 57.14 53.76 37.82 38.58 5.04 7.66
Future Generali 83.70 68.53 14.54 23.63 1.76 7.84
HDFC Life 90.50 65.55 7.24 21.13 2.26 13.32
ICICI Prudential 93.80 79.56 5.42 17.25 0.78 3.19
IDBI Federal 75.80 70.90 19.67 21.26 4.53 7.84
India First 72.21 60.43 22.84 27.92 4.95 11.65
Exide Life 86.10 67.24 12.27 27.41 1.40 4.52
Kotak Mahindra 90.73 82.15 6.03 8.52 3.24 9.33
Max Life 96.03 93.59 3.90 5.61 0.07 0.80
Met Life 92.86 85.70 5.56 8.42 1.50 5.66
Reliance Life 83.84 73.63 10.37 15.81 5.79 10.56
Sahara 89.97 89.84 6.43 6.29 3.60 3.87
SBI Life 89.43 83.72 7.41 7.67 3.16 8.61
Shriram Life 65.66 51.21 23.11 30.10 11.22 18.69
Star Union Dai-ichi 94.08 91.54 5.61 7.58 0.32 0.89
Tata AIA 94.47 89.54 4.57 7.95 0.96 2.51
Private Total 89.40 78.39 7.78 14.52 2.80 7.04
LIC of India 98.19 95.51 1.15 2.06 0.48 2.19
Notes:
1. More percentage of Number of claims are repudiated by the
private companies as compared with LIC of India.
2. Percentage of Claim Amount Repudiated is even more; this
shows that more High Sum Assured claims are being
repudiated by private companies. ( Look at the figures of
Aviva, HDFC, ICICI, Reliance and others)
3. During the year 2014-15 Claim settlement performance of Big
Private Companies like SBI, HDFC, ICICI has reduced as
compared with last year.
4. The Pending claims of private companies are also on higher
side; this shows delay in settlement of claims by private
companies.