Life Insurance and Pension Business ,Key Man Insurance and Human Life Value Insurance

!ypes of Life Insurance

!erm Life Insurance &ndo#ment Insurance Permanent )*(ole+ Life Insurance ,nit Lin%ed Plans
Increasing / Decreasing term policies Converti le term assurance policy Level !erm life Insurance "ene#a le !erm life Insurance $oint life endo#ment plan Money ac% endo#ment plan Marriage endo#ment plan &ducational endo#ment plan

'rdinary #(ole life plan Limited payment #(ole life plan

Com ination of protection and investments )savings+

!erm Life Insurance

3um assured is paya le only in t(e event of deat( during t(e termIn case of survival, t(e contract comes to an end at t(e end of term!erm Life Insurance can e for period as long as 42 years and as s(ort as 5 year.o refund of premium- Lo# premium as only deat( ris% is covered.on6participating policies
Decreasing Term Insurance !(e sum assured decreases #it( t(e term of t(e policy- .ormally decreasing term assurance plan is ta%en out for mortgaged protection, under #(ic( outstanding loan amount decreases as time passes as also t(e sum assuredRenewable Term Life Insurance Level Term Life Insurance !(e sum assured t(roug(out t(e term of t(e policy does not c(ange*it( rene#a le term insurance, t(e insurance company automatically allo#s you to rene# your coverage after t(e term of t(e policy is over )generally 0 to 12 years+ Convertible Term Insurance ,nder t(is plan a policy(older is entitled to e/c(ange t(e term policy for an endo#ment insurance or a #(ole life policy-

Increasing Term Insurance Life insurance cover under t(is plan goes on increasing periodically over t(e term in a predetermined rate- )"iders+

*(ole Life Insurance

*(ole life plans are a type of endo#ment plan, #(ic( cover deat( for an indefinite period*(en t(e policy (older dies, t(e face value of t(e policy, %no#n as a death benefit, is paid to t(e person or persons named in t(e life insurance policy )t(e eneficiary or eneficiaries+If you cancel t(e policy after a certain amount of time (as passed, t(e insurance company #ill surrender t(e cas( value to you-

Ordinary Whole Life Plan

!(is is a continuous premium payment plan- !(e insured pays premium t(roug(out (is life- It provides dual facility of protection plus savings-

Limited Payment Whole Life Plan

It provides t(e same enefit as a ove ut premiums are paid for a limited period- Premiums are sufficiently (ig(er to cover t(e ris%

,nder t(is plan, t(e insured receives a fi/ed sum in a periodic interval on (is survival and full sum assured is paid on deat( of t(e policy (older #it(out any deductionAntici ated Whole Life Plans

It ta%es care of family needs after deat( of t(e insured and interim needs of t(e insured and (is family-

Pension Products
Features L Pension Product types

Pension products provide financial security t(roug( a sta le retirement income 7ll pension products (ave a clearly defined assured enefit at t(e time of sale an assured enefit applica le on Deat( 3urrender and Vesting *(ic( is declared at t(e time of sale

Pension Products are offered in t(e follo#ing platforms Individual or group unit lin%ed insurance products Individual or group O non unit lin%ed insurance products timi#e with Varia le Insurance Relationshi Pension Products Customers 't(er Pension Products offered y .P3).ational Pension 3c(eme+ Deferred 7nnuity and Immediate 7nnuity Pension Plans %nhance $alue& Define Benefit Plans and !a"imi#e Customer Define ContriAdded ution Plans 'uality
$alue by being through (ew the Low Cost Provider Product Develo ment

Comparison between Deferred Annuity and Immediate Annuity L

Deferred Annuity
Pay Premium for 8 9ears and post retirement pension income Purc(ase #it( eit(er a single premium or periodic premiums 'nly :e# players

Immediate Annuity
Payout egins s(ortly post lump sum payment Purc(ase #it( a single premium7ll t(e players offer t(ese products

U IP !Unit in"ed Insurance Products#

DEFINITION FEATURES

7 ,LIP is a insurance product #(ic( provides a com ination of ris% cover and investment It com ines t(e c(aracteristics of a mutual fund and life insurance product !(e allocated )invested+ portions of t(e premiums after deducting for all t(e c(arges and premium for ris% cover under all policies in a particular fund as c(osen y t(e policy (olders are pooled toget(er to form a ,nit fund ,nit is a component of t(e :und in a ,nit Lin%ed Policy

Investment "is% is ;enerally Borne y Investor Products are offered ased on investors "is% profile, Investment o <ectives and !ime Hori=on O timi#e Relationshi :le/i ility to s#itc( et#een funds with !op up facility is availa le Customers *it(dra#al facility is availa le Various C(arges >fees are Premium allocation c(arges, Mortality C(arges, :und Management %nhance $alue& !a"imi#e Customer Added 'uality fees, policy/administration c(arges, surrender $alue by being through (ew the Low Cost Provider Product c(arges, fund s#itc(ing c(arges Develo ment .o Minimum ;uarantee

TYPES OF FUNDS
D%)CRIPTIO( &?uity :unds Income, :i/ed Interest and Bond :unds Cas( :unds Balanced :unds (AT*R% O+ I($%)T!%(T) RI), CAT%-OR.

Medium to Primarily invested in company stoc%s #it( t(e general aim of capital appreciation Hig( Invested in corporate onds, government securities and ot(er fi/ed income instruments

Medium

3ometimes %no#n as Money Mar%et :unds invested in cas(, an% deposits and money mar%et instruments Lo# Com ining e?uity investment #it( fi/ed interest instruments Medium

Traditiona$ Pension Products

DEFINITION FEATURES

!raditional and are

Pension

Products products

are #it(

of a

Ma<or portion of t(e premium is re?uired to e

Immediate annuity or Deferred 7nnuity type conventional com ination of protection and saving features Various 7nnuity options are offered

invested in ris%6free securities Portion of t(e premium invested Relationshi with in Money
Customers O timi#e

mar%ets .o option to c(oose et#een various asset

!a"imi#e Customer classes and t(e investments #ere made Added solely 'uality $alue by being %nhance $alue& through (ew the Low Cost Provider Product Develo ment

at t(e discretion of t(e insurance company

Comparison of U IP and Traditiona$ Pension Products

,nit Lin%ed Insurance Product

:le/i ility .o "estriction of &?uity Investment !ransparent

!raditional Pension Product

"igid "estriction on &?uity Investment Lac% of !ransparency