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    Fundamentals of Life Insurance

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    swati_agarwal67
    The document provides an overview of life insurance fundamentals and types. It discusses that life insurance insures against death, provides financial security for dependents, and comes in various types to suit different needs. It then describes the key features of life insurance including savings instrument, social security, risk coverage from acceptance, and beneficiary payment. The document outlines the major types of life insurance - term life, whole life, universal life, and variable life - and summarizes their basic characteristics.

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    Fundamentals of Life Insurance

    Uploaded by

    swati_agarwal67
    32 views10 pages
    The document provides an overview of life insurance fundamentals and types. It discusses that life insurance insures against death, provides financial security for dependents, and comes in various types to suit different needs. It then describes the key features of life insurance including savings instrument, social security, risk coverage from acceptance, and beneficiary payment. The document outlines the major types of life insurance - term life, whole life, universal life, and variable life - and summarizes their basic characteristics.

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    The document provides an overview of life insurance fundamentals and types. It discusses that life insurance insures against death, provides financial security for dependents, and comes in various types to suit different needs. It then describes the key features of life insurance including savings instrument, social security, risk coverage from acceptance, and beneficiary payment. The document outlines the major types of life insurance - term life, whole life, universal life, and variable life - and summarizes their basic characteristics.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    32 views10 pages

    Fundamentals of Life Insurance

    Uploaded by

    swati_agarwal67
    The document provides an overview of life insurance fundamentals and types. It discusses that life insurance insures against death, provides financial security for dependents, and comes in various types to suit different needs. It then describes the key features of life insurance including savings instrument, social security, risk coverage from acceptance, and beneficiary payment. The document outlines the major types of life insurance - term life, whole life, universal life, and variable life - and summarizes their basic characteristics.

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    Fundamentals

    of
    Life Insurance
    Life insurance is the only type of insurance that
    insures against an absolute certainty.

    Life insurance is designed to provide financial


    security when someone dies.

    It answers the age old question, who will take care


    of your family if you were to die unexpectedly?

    Life insurance comes in a variety of types to satisfy


    just about anyone's needs.

    Life Insurance in India was nationalized by


    incorporating Life Insurance Corporation (LIC) in
    1956.
    Life Insurance contract may be defined
    whereby the insurer, in consideration of
    a premium paid either in lump sum or in
    periodical installments, undertakes to
    pay an annuity of a certain sum of money
    either on the death of the insured or on
    the expiry of a certain number of years.
    FEATURES OF LIFE INSURANCE
     Instrument of savings  Policyholders can seek loans
    against the policy
     Provides social security
     Certain policies cover up for
     Risk coverage starts from
    treatment to serious ailments
    the date of accepting of
     Ministry of finance extends
    proposal
    income-tax benefits on the
     Beneficiary amount of premium paid
    nominee/legal heir stands  Money can be set aside for
    to gain children’s marriage and
     Policy can be assigned or education
    mortgaged  Provision for old age
    Helps people to be
    financially sound

    Only & best way


    of family
    Enhances standards protection
    of living

    USES OF
    INSURANCE
    Best safeguard
    Best saving & investment against future
    instrument in terms of unpredictable risks
    security, marketability,
    liquidity & stability of value

    Insurance can preserve


    value of humans & assets
     Life Insurer in Public Sector
    1.Life Insurance Corporation of India

     Life Insurers in Private Sector


    1.SBI Life Insurance
    2.Metlife India Life Insurance
    3.ICICI Prudential Life Insurance
    4.Bajaj Allianz Life
    5.Max New York Life Insurance
    6.Sahara Life Insurance
    7.Tata AIG Life
    8.HDFC Standard Life
    9.Birla Sunlife
    10.Kotak Life Insurance
    11.Aviva Life Insurance
    12.Reliance Life Insurance Company Limited - Formerly known as AMP Sanmar LIC
    13.ING Vysya Life Insurance
    •Shriram Life Insurance
    1.Bharti AXA Life Insurance Co Ltd
    •Future Generali Life Insurance Co Ltd
    1.IDBI Fortis Life Insurance
    2.AEGON Religare Life Insurance
    3.DLF Pramerica Life Insurance
    4.CANARA HSBC Oriental Bank of Commerce LIFE INSURANCE
    5.India First Life insurance company limited
    6.Star Union Dia-ichi Life Insurance Co. Ltd
    TYPES OF LIFE INSURANCE
    Term Life Insurance

     The most basic and least expensive type of life insurance is term life insurance. This product
    insures your life for a temporary, stated period of time, most commonly five, 10, 20 or 30 years.
    Unlike permanent products, term life insurance does not build cash value over time. If you
    outlive the stated term of your contract, you lose all the premiums you paid. Many term life
    products are convertible, meaning they can be converted to a permanent life insurance plan at
    any time without a medical exam. Term insurance is generally "annually renewable," meaning
    the product will continue past the stated term, but the premiums will increase every year
    thereafter.

    Whole Life Insurance

     Whole life insurance is a permanent product designed to pay a stated benefit at your death,
    no matter when it occurs, in exchange for a fixed premium that never changes, starting from the
    moment you make your first payment. Unlike term insurance, whole life products build cash
    value over time and do not expire as long as you pay your premium. Though the cash value does
    mean significantly higher premiums than an equal benefit for a term plan, you can borrow
    against the cash value as long as the policy remains in force. If you die with an outstanding loan
    against your policy, the death benefit will simply be reduced by the outstanding loan amount.
    Universal Life Insurance

     Universal life insurance, like whole life, is a permanent product that builds cash value over
    time. The primary difference between universal and whole life insurance is that universal life
    allows you greater flexibility when paying premiums. A minimum premium amount is required
    to keep the policy in force, but you are allowed to pay extra premiums to grow the cash value
    on a tax-deferred basis. If the cash value is sufficient, you may decrease the premiums you pay
    or cease paying premiums altogether and allow the policy to pay for itself. Cash value may be
    accessed by policy loans. Insurance companies typically offer a minimum guaranteed rate of
    growth for the cash value in universal life policies.

    Variable Life Insurance

     Variable life insurance is essentially the same as universal life insurance, except that the
    portion of your premiums that are invested for cash value is invested in different portfolios of
    your choosing and is subject to the fluctuations of the securities markets. In other words,
    variable life insurance allows for greater growth potential than universal life because you can
    choose how you want your money invested, but it also has a risk of losing your investment
    capital due to poor portfolio performance.
    THANK YOU…

    BY: Swati Agarwal


    Sandeep
    Shankey
    Abhishek
    Ajjay

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