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The 2 basic needs of all individuals are;

Risk Coverage

Savings for Future

Basic Elements of Life Insurance

Products

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Risk here means ³Death´ 

The first basic need is to provide a

lump sum amount to the family in theevent of untimely death of the breadwinner

Here the amount is payable only if 

the death of the insured occursduring the selected period

TERM INSURANCE 

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The second is accumulation of savings for a specific purpose.

Here the amount is payable only if the insured survives till the end of theselected period

P URE ENDOWMENT 

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These 2 concepts ± Basic elements of every Life Ins. Product

Basic Building Blocks in all LifeInsurance Product design

Life Ins. Products are developed bycombining these 2 elements in differentproportions, according to the needs of individuals

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Types of Life Insurance Products

Conventional Plans

Unit Linked Plans Annuities & Pensions

Besides there are Group Insurance

Plans & other special plans

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Conventional Plans: Oldest types of plans available

Cater to customers with a low risk

appetite Steady and almost assured returns

over the long term

Premium to Sum Assured ratios are

fixed for each plan and age. Generally withdrawals are not

allowed before maturity

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Conventional Plans-Types Conventional Plans:

a) Participating Plans

a) Non Participating Plans

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Conventional Plans - Typesa) Participating Plans:

Share of profits are distributed to thePolicy holders

Also called µWith Profit Policies¶ 

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a) Participating Plans:

i. Endowment Plansii. Money Back Plans

iii. Whole life Plans

iv. Children¶s Plans

v. Joint Life Plans

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Many investors use this to fundanticipated financial needs

Premium is comparatively higher

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Risk cover on life continues for the

full Sum Assured

Bonus is also calculated on the full

Sum Assured

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If the policyholder survives till theend of the policy term, the survival

benefits are deducted from thematurity value

Money Back Policies give Money inhand + Insurance cover

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Money back policies are normally fora fixed tenure, normally up to 25

years or so

The policy holder pays a fixedpremium periodically during thepaying period

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iii. Whole Life Policies

Cover extends to the whole life Premiums are paid till death

Premium rates are comparatively

lower

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iv. Children's Plans

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iv. Joint Life Policies

Cover the risk of two or more lives

Under a single policy Usually cover Husband & Wife,

Partners etc

SA becomes payable;

Either at maturity Or during the death of one of the

assureds