introduction to life insurance-roheet
TRANSCRIPT
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Introduction to Life Insurance Industry
& Basics of Insurance
Roheet Kumar Roll No: 26
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AgendaAgenda
At the end of this session you will know«.
Basics of Life Insurance
Types of Insurance
Basic Jargons
Life Insurance in India
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Basics of Life Insurance :Basics of Life Insurance :
Basics
²Insurance is a function of Uncertainty
²Risk & Perils
Premium
Expenses
Mortality
Investment
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Term PlanTerm Plan
This plan offers a large Sum Assured as against a very
nominal premium.
If the policyholder lives for a specified period he/she receives
the Face Value of the policy.
Endowment PlanEndowment Plan
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Whole Life PlanWhole Life Plan
The policy covers a very wide age group of people.
The plan covers the person all through his life.
The plan can work as a saving plan,as a retirement planand even as a children plan.
The plan offers both Maturity and Death benefit.
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Money Back PlanMoney Back Plan The policyholder gets the Sum Assured benefit both at the
time of maturity and death
Annuities are contracts that convert an accumulation of money into a series of payments to the policyholder duringhis retirement age.
Annuity/PensionAnnuity/Pension
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Unit Linked Insurance PlanUnit Linked Insurance Plan
The plan offers the insurance cover with the added feature of ainvestment plan.
The risk and return in these plans goes hand in hand.
The plan offers flexibilities like partial withdrawals, switching,top-ups unlike the traditional plan.
ULIPs offer both death and maturity benefit.
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Universal Life Insurance PlanUniversal Life Insurance Plan
In simple words, Universal Life is a combination
of a Traditional and a Unit Linked plan.
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Basic jargonBasic jargon Proposal: Is the basis of the Insurance Contract
Policy Bond: Is the evidence of the Insurance Contract
Due Date: The date by which policyholder needs to pay the premium
Days of grace: Extra time given to pay the overdue premium
Lapse: Termination of a policy upon the policy owner's failure to pay the premium within the grace period. If there are non forfeiture
values, the policy lapses but may remain effective reduced paid-up
insurance
Maturity Value: The amount received by Proposer at the end of
Policy term.
Death benefit : The amount paid to nominee after death of Life
Assured.
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Life Insurance in IndiaLife Insurance in India
In India life insurance business was transacted in 1870.The first company was Bombay Mutual Assurance
Society Ltd.
Before the formation of LIC, 170 insurance companiesand 75 Provident Fund Societies were operating in India
LIC was formed on 1st September 1956
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Benefits of Life InsuranceBenefits of Life Insurance
Insurance plan gives the following benefits Insurance plan gives the following benefits
² ² Family Protection Family Protection
² ² Children· Education & Marriage Children· Education & Marriage
² ² Personal Retirement Personal Retirement
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25 30 43 50 55 60 65 70 80 90 100
AGE
Marriage /
children
Children ² growing
needs/education
Growingneeds/marriage
Your earning grow till 60
Save max till 60
Have max resp.till 60
Now it·s
your own
needs
Would not
like to be
dependent
on anybody
Earnings have gown
down
Responsibility CurveResponsibility Curve
LI
A
B
IL
IT
I
E
S
NeedsIncome
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