LIFE INSURANCE Life insurance is a contract for payment of money to the person assured (or to the person entitled

to receive the same) on the occurrence of an event insured against. Usually the contract provides for Payment of an amount may be on the date of maturity or at specified periodic intervals or after death, if it occurs earlier. Periodical payment of insurance premium can be done by the assured to the corporation who provides the insurance.

Who can buy a life insurance policy? Any person above 18 years of age and who is eligible to enter into a valid contract. Subject to certain conditions, a policy can be taken on the life of a spouse or children.

What is a Whole Life Policy? When most people think of life insurance, they think of a traditional whole life policy. These are the simplest policies to understand: You pay a fixed premium every year based on your age and other factors, you earn interest on the policy's cash value as the years roll by, and your beneficiaries get a fixed benefit after you die. The policy takes you into old age for the same premium you started out with. Whole life insurance policies are valuable because they provide permanent protection and accumulate cash values that can be used for emergencies or to meet specific objectives. The surrender value gives you an extra source of retirement money if you need it.

Why does one need Life Insurance? Life insurance is designed to protect you and your family against financial uncertainties that may result due to unfortunate demise or illness. You can also view it as a comprehensive financial instrument as a part of your financial planning offering you savings & investment facilities along with cover against financial loss. By choosing the right policy as per your needs i.e. customized solutions, you will be able to plan for a secure future for yourself and your loved ones. Choosing the right plan Identifying the right plan basis your needs is the first crucial step towards insurance planning. At RLIC we help customer by identifying their various needs and offering plans that are customized for you. You may also choose a plan by identifying the life stage you are at. The following needs of a person can be fulfilled by insurance: Protection Need for a sound income protection in case of your unfortunate demise. Investment Need to ensure long-term real growth of your money. Saving Save for the milestones and protect your savings too. Pension Need to save for a comfortable life post retirement.

Once customers have analyzed their needs as per above classification, customers need to then ascertain important factors such as type of cover, insurance amount as per one's income, life stage and dependents

Objectives of Life Insurance 1. To spread life insurance and provide life insurance protection to the masses at reasonable cost. 2. To mobilize peoples savings through insurance-linked savings schemes. 3. To invest the funds to serve the best interests of both the policy holders and the nation. 4. To conduct business with maximum economy, always remembering that the money belongs to the policy holders. 5. To act as trustees of the policy holders and protect their individual and collective interests. 6. To innovate and adapt to meet the changing life insurance needs of the community.

Benefits to Insurance Policy Holder (1) Tax Benefits: Relief in income tax is available for amount paid by way of premium for life insurance.Investment qualifying for rebate viz. insurance premia, premium paid toward annuity plans for life insurance are specified under section 88(2) of the income tax Act. (2) Safety: In life insurance, on death, the full sum assured is payable (with bonuses wherever applicable) whereas in other saving scheme, only the amount (saved with interest) is payable. (3) Liquidity:

Loans can be raised on sole security of the policy which has acquired a paid-up value. Besides, a Life Insurance policy is also generally accepted as security for even a commercial loan/housing loan. (4) Aid to Thrift: Life Insurance encourages thrift Long term saving can be made in a relatively painless manner because of easy instalment facility (Premium can be made through monthly, quarterly, half-yearly or yearly instalment). The Salary Saving Scheme, popularly known as SSS provide a convenient method if paying premium each month through deduction from ones salary. The Salary Saving Scheme can be introduced in an institution of establishment subject to specified terms and condition.

(5) Money at the time of Requirements: A suitable insurance plan or a combination of different plans can be taken to meet specific needs that are likely to arise in future such as childrens education, start in life or marriage provision or even periodical needs for cash ones a predetermined stretch of time. Alternatively, policy money can be so arranged to be used for other investments subject to certain conditions, loans are granted to policy holders for house or for purchase of flats.

ICICI PRUDENTIAL ICICI prudential: ICICI prudential insurance is a joint venture of ICICI bank and prudential plc a leading financial service group in the UK. Total capital stands for Rs. 37.72 billion, with ICICI Bank holding a stake of 74% and Prudential plc holding 26%. ICICI begin their operations in December 2000 after receiving approval from IRDA. Now ICICI prudential is having over 1000 offices, over 270000 advisors and 21bancassurance partners. ICICI Prudential was the first life insurer in India to receive a National Insurer Financial Strength rating of AAA from Fitch ratings. ICICI prudential is working on the base of five core values Integrity Customer first Boundary less Ownership Passion Key features: Understanding the needs of customers and offering them superior products and service. Leveraging technology to service customers quickly, efficiently and conveniently. Developing and implementing superior risk management and investment strategies to offer sustainable and stable returns to policyholders. Providing an enabling environment to foster growth and learning for employees.

RANGE OF PRODUCTS At ICICI Prudential Life, we understand that different individuals have different needs. The ideal insurance plan is one that addresses the exact insurance needs of the individual which depends on the age and life stage of the individual apart from a host of other factors. ICICI Prudential Life offers plans under the following major need categories:

Term plans Wealth plans Child plans Health plans Retirement plans Group plans Rural plans

HDFC standard life insurance: HDFC Standard Life Insurance Company Ltd. is one of India's leading private insurance companies. It is a joint venture of Housing Development Finance Corporation Limited, India's leading housing finance institution and a Group Company of the Standard Life in UK. HDFC as on March 31, 2007 holds 81.9 per cent of equity venture. Gross premium income of the HDFC for the year ending March 31, 2007 was Rs. 2, 856 crores and new business premium income was Rs. 1,624 crores. The company has covered over 8, 77,000 lives year ending March 31, 2007. HDFC standard is having 1000 advisors in 11 towns.

Key features: Creating corporate agents through HDFC bank in India. Creating agents to provide total financial consultancy. Introducing low cost group schemes for companies and NGOs.

Aviva life insurance: Aviva is UKs largest and the worlds fifth largest insurance Group. It is one of the leading providers of life and pensions products to Europe and has substantial businesses elsewhere around the world. Aviva has a joint venture of Dabur, one of India's oldest, and largest Group of companies. And country's leading producer of traditional healthcare products. In accordance with the government regulations Aviva holds a 26 per cent stake in the joint venture and the Dabur group holds the balance 74 per cent share. Aviva has 193 Branches in India (including rural branches) supporting its distribution network. Through its Banc assurance partner locations, Aviva products are available in more than 2,795 locations across India. Aviva has a sales force of over 30000 financial planning advisors.

Key features: Through the Financial Health Check (FHC) Avivas sales force has been able to establish its credibility in the market. The FHC is a free service administered by the FPAs for a need-based analysis of the customers long-term savings and insurance needs. Depending on the life stage and earnings of the customer, the FHC assesses and recommends the right insurance product for them. Introduced the concept of Banc assurance in India.

Max New York life insurance: Max New York Life Insurance Company Ltd. is a joint venture between New York Life, a Fortune 100 company and Max India Limited, one of India's leading multi-business corporations The Company's paid up capital is Rs. 907.4 crore. Max New York life is working on the base of six core values Excellence, Honesty, Knowledge, Caring, Integrity The Company practices a lot of importance on its selection process of insurance advisors which comprises four stages - screening, psychometric test, career seminar and final interview. 337 agent advisors have qualified for the Million Dollar Round Table (MDRT) membership in 2007 and Max New York Life has moved up to 21st rank in MDRT global list. Key features: Max New York Life has adopted prudent financial practices to ensure safety of policyholder's funds. Investing significantly in its training programme and each agent is trained for 152 hours as opposed to the mandatory 100 hours stipulated by the IRDA before beginning to sell in the marketplace.