Life Insurance In India.pptx

Life Insurance In India
Vinosha Portfolio Private Limited
C-56, A /13 Sector -62, Noida – 62,
201309
 Traditional Plans
 ULIP Plans

Traditional Plan Types
 Term Plan
 Endowment Plan.
 Money Back Plan.
 Whole Life Plan.

Term Insurance
 Term insurance is widely considered to be the simplest form of life insurance. It is a
pure cover plan which offers protection for a specified time period. If the life
insured passes away during that period, the nominee receives the predetermined
death benefit. The most distinctive feature of a term insurance plan is the high
amount of coverage offered at extremely nominal premium rates. Certain term
plans also offer maturity benefits, i.e. the return of premiums if the policyholder
outlives the policy term. One can also increase the amount of coverage offered by a
term plan by opting for additional riders, such as Accidental Death Benefit or Child
Support riders.
 Return of premium
As with the regular plan, it pays death benefit if the insured dies during the term of
plan, but if the insured survives the term, the premiums paid are returned as part
of this plan. The policy period or term varies from 10-40 years.

Why Should you Buy Online Term Insurance Plans?
Term insurance is a simple financial instrument. However, you can add multiple benefits
and use the features to make life easier for yourself and your family.
Benefits of Online Term Insurance Plan
You may have avoided term plan all this while assuming buying a term plan is a long
and time-consuming process. You can shop your favorite products online in minutes
and save both time and money. Similarly, you can purchase a term insurance plan
online.
When you buy a term plan online, you get the following benefits:
1. You don't have to spend time travelling to the insurance company's office.
2. With online purchases, there are no brokers, and you buy directly from the company.
Hence you save cost.
3. Easy to go through the policy details.
4. Making payments takes no time, and you can pay using your preferred payment
mode.
5. You get the policy in your inbox, no headache of storing the original copy of it.
Buying a term insurance plan online is very easy. You have all the options in front of
you. You can select the options as per your need, make the payment and receive the
policy document within minutes in your mailbox.

Endowment Plan
 Endowment life insurance is a specialized insurance product that's often dressed up as a
college savings plan. The endowment life insurance policy promises a risk-free, guaranteed
return on a guaranteed date as long as you make the fixed monthly payments. What's more,
the cash value isn't counted against your child's financial aid eligibility.1 Could this be the
college savings plan you've been looking for?
 Let's look at whether the stated advantages of these policies live up to their promises.
 Basically these policies couple term life insurance with a savings program. As the policyholder,
you choose how much you want to save each month and when you want the policy to mature.
Based on your monthly contributions, you're guaranteed a certain payout, called
an endowment when the policy matures. You can then use this endowment for your child's
college tuition, fees, books, living expenses, and other costs. If you should die before the policy
matures, your child will receive the payout as your death benefit and will still have the
anticipated money for college.
 KEY TAKEAWAYS
 Endowment life insurance policies, by coupling term life insurance with a savings program,
offer a lump sum payment at maturity.
 They're sometimes marketed as college savings plans—consumers must read the fine print
before deciding if this is how they want to save for their children's education.
 Other college savings options like prepaid tuition and 529 plans may offer benefits not
available with endowment life insurance.

Money Back Policy
 Money back policy is a type of life insurance product that allows the insured to receive
regular returns, or as a lump-sum amount at a defined point during the policy period.
The returns offered under a money back policy can be guaranteed or depend on
investment performance, or a combination of both. This allows you to purchase a money
back policy that is best-suited for your particular financial goals.
Let’s understand how a money back policy works in detail!
 In the case of the life insured's death, a standard insurance plan pays out a lump
sum amount to the nominee of the policy. This is known as the death benefit of life
insurance. On the other hand, a money back policy is a form of life insurance policy
that allows the insured to receive a portion of the sum assured at regular intervals
rather than a lump sum at the end of the policy period. As a result, a money back
insurance policy is an endowment scheme with certain liquidity.
The amount that is received as payouts with it is known as the ‘Survival Benefits’.
These are compensated over the policy term, and the remaining sum assured is
paid at maturity, along with any vested incentives.

Here are some reasons that make money back policy suitable for you:
•Money back plans combine the benefits of an insurance policy with that of investment,
meaning that the policy earns an income for the policyholder rather than simply delivering
a lump sum in the event of his or her death.
•These policies include a guaranteed return on investment, as well as annual payouts and
insurance coverage, making them an excellent choice for those seeking both security and
income.
•As a result, policyholders receive a stable and guaranteed return on investment, as well as
the ability to increase their wealth through investment opportunities.
•Depending on your life stage, when you invest, the different types of money back, plans
can be smart. For instance, a child money back plan can help you secure their future
wisely.

Whole Life Insurance
 As a life insurance policyholder, you get the benefits depending on the types of life
insurance policies you have chosen. What distinguishes a whole life insurance plan
from other life insurance types is that it provides insurance coverage to the insured
for the entire life, up to 100 years of age.
 Typically, the death benefit, under a whole life insurance, is payable to the
beneficiary in the case of the untimely demise of the policyholder. On the other
hand, you are eligible to receive a maturity benefit under a whole life
insurance policy if you cross 100 years of age.
 Another significant feature of such whole life insurance plans is that some offer the
option to pay premium for the first 10-15 years while you get the benefits for the
entire life.

ULIP Plans
 ULIP is the acronym for Unit Linked Insurance Plan. A ULIP is the combination of
investment and insurance. Within this plan, the policyholders can make the
premium payment annually or monthly. One part of the premium amount is used to
provide a life insurance cover and the remaining sum is invested.
 In these plans, the investments are subjects to the risks associated with the capital
market. The policyholder bears the investment risk on his/her investment portfolio.
Hence, it is recommended to make an investment choice basis the needs along with
the risk appetite.
 Another factor that has to be taken into consideration by the policyholder is the
future needs of the invested funds. Moreover, a unit linked plan is much more
transparent. The charges including fund management charges, allocation charges
etc. are clearly stated upfront.
 Unit Linked Insurance Plan also allows its investors to switch their investment from
debt to equity and vice-versa, without running from pillar to post and any worries of
being charged.
 ULIP plans were first introduced in India by Unit Trust of India (UTI) in 1971. This was
followed by ULIP offerings from Life Insurance Corporation in 1989. Initially, a lot of
investors shied away from investing in ULIPs due to the high charges associated with
this insurance-investment product. However, in the recent times, major life
insurance providers including Bajaj Life, HDFC, ICICI Pru, and Edelweiss Tokio.

•Analysis of Personal Investment Goals.
•Decide Insurance Objectives.
•Decide Investment Goals.
•Compare ULIPs.
•Flexibility.
•Evaluate Risk Profile and Financial Stability.
•Understand Different Charges Levied.
•Be Well-Versed with the Features and Benefits of a ULIP Plan.
•Check the Performance of the Plan.
•Solvency Ratio.
•Claim Settlement Ratio.
•Performance of ULIP Funds.
•Investment Strategies Offered.
How To Decide Which ULIP Is Better

For Vinosha Portfolio Pvt. Ltd.

Life Insurance In India.pptx

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