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Saturday 17 November 2012

Types of Life Insurance products in India


Types of Life Insurance

Taking out a life insurance policy covers the risk of dying early, by providing for your family in the event of your death. It also manages the risk of retirement – providing an income for you in non-earning years. Choosing the right policy type with the coverage that is right for you therefore becomes critical.

There are a variety of policies available in the market, ranging from Term Endowment and Whole Life Insurance, to Money Back Policies, ULIPs, and Pension plans. Let's see what each of these is about, so that you can consider the one that best suits you.

Term Insurance


Term Insurance, as the name implies, is for a specific period, and has the lowest possible premium among all insurance plans. You can select the length of the term for which you would like coverage, up to 35 years.

Payments are fixed and do not increase during your term period. In case of an untimely death, your dependents will receive the benefit amount specified in the term life insurance agreement.

You can customise Term life insurance with the addition of riders, such as Child, Waiver of Premium, or Accidental Death.

Endowment Insurance

Endowment Insurance is ideal if you have a short career path, and hope to enjoy the benefits of the plan (the original sum and the accumulated bonus) in your life time.

Endowment plans are especially useful when you retire; by buying an annuity policy with the sum received, it generates a monthly pension for the rest of your life.

Whole Life Insurance

Whole Life Policies have no fixed end date for the policy; only the death benefit exists and is paid to the named beneficiary. The policy holder is not entitled to any money during his or her own lifetime, i.e., there is no survival benefit. This plan is ideal in the case of leaving behind an estate.

Primary advantages of Whole Life Insurance are guaranteed death benefits, guaranteed cash values, and fixed and known annual premiums.

Money-Back Plan

In a Money-Back plan, you regularly receive a percentage of the sum assured during the lifetime of the policy. Money-Back plans are ideal for those who are looking for a product that provides both - insurance cover and savings.

It creates a long-term savings opportunity with a reasonable rate of return, especially since the payout is considered exempt from tax except under specified situations.

ULIP

Unit-linked Insurance Plans (ULIPs), introduced by the private players, are hugely popular, because they combine the benefits of life insurance policies with mutual funds. A certain part of the premium is invested in listed equities/debt funds/bonds, and the balance is used to provide for life insurance and fund management expenses.

Pension Plan

Insurance companies offer two kinds of pension plans - endowment and unit linked. Endowment plans invest in fixed income products, so the rates of return are very low.

Unit-linked plans are more flexible. You can stop contributing after 10 years and the fund will keep compounding your corpus till the vesting date. You can opt for higher exposure in the stock market for your plan if your risk appetite allows it. Lower risk options like balanced funds are also offered.

Product's offered to customer by LIC


Children's Policy
Komal Jeevan - Plan No. 159
Children Deferred - Plan no.41, Jeevan Kishore – Plan no.102
Jeevan Chhaya - Plan no.103
Marriage Endowment/Educational Annuity - Plan No. 90
Jeevan Anurag - Plan no.168
Jeevan Ankur 

Endowment Policy
Endowment with Profits - Plan no.14 Limited Payment Endowment withProfits - Plan no.48,  Jeevan Mitra - Plan no.88
New JanaRaksha Policy - Plan no.91, Jeevan Anand Plan no. 149
Jeevan Mitra Triple Cover - Plan no.133

Group Insurance Policy
Janashree Bima Yojana
Group Insurance Scheme in lieu of EDLI
Group (Term) Insurance Scheme
Group Savings Linked Insurance Scheme, Group Superannuation Scheme
Group Mortgage Redemption Assurance Scheme

Joint Life Policy
Jeevan Saathi - Plan no.89

Money Back Policy
Money Back with Profit - Plan no.75, New Money Back - Plan no.93
Jeevan Surabhi 15 yrs - Plan no.106, Jeevan Surabhi 20 yrs - Plan no.107
Jeevan Surabhi 25 yrs - Plan no.108, Jeevan Bharati Plan No 160
Jeevan Samriddhi Plan No 154, 155, 156 157
Bima Bachat- Plan no.175

Pension Plans or Annuities
New Jeevan Dhara - Plan no.148, New Jeevan Suraksha Plan no. 147
Jeevan Akshay II Plan no. 163, Jeevan Nidhi Plan no. 169
Jeevan Akshay V Plan no. 183

Special Plans
Term Assurance - Plan no.43, Mortgage Redemption - Plan no.52
Jeevan Aadhar - Plan no.114, Market Plus - Plan No 181
Jeevan Vishwas Plan No. 136, Jeevan Saral Plan No. 165
Jeevan Pramukh Plan No. 167, Bima Nivesh 2005 Plan No 171
Money Plus-Plan No 180

Term Policy
Convertible Term Assurance - Plan no.58
New Bima Kiran
Term Assurance
Anmol Jeevan I Plan No- 164
Amulya Jeevan-Plan No-177

Friday 16 November 2012

Introduction to LIC of india


Life Insurance Corporation of India (LIC) (Hindiभारतीय जीवन बीमा निगम) is the largest insurance group and investment companyin India. Its a state-owned where Government of India has 100% stake. LIC also funds close to 24.6% of the Indian Government's expenses. It has assets estimated of INR13.25 trillion (US$250.43 billion).[1] It was founded in 1956 with the merger of 243 insurance companies and provident societies.
Headquartered in Mumbai, financial and commercial capital of India, the Life Insurance Corporation of India currently has 8 zonal Offices and 113 divisional offices located in different parts of India, around 3500 servicing offices including 2048 branches, 54 Customer Zones, 25 Metro Area Service Hubs and a number of Satellite Offices located in different cities and towns of India and has a network of 13,37,064 individual agents, 242 Corporate Agents, 79 Referral Agents, 98 Brokers and 42 Banks (as on 31.3.2011) for soliciting life insurance business from the public.

History
•Life insurance in its modern form came to India from England in the year 1818.
•Oriental life Insurance company, started by Europeans In Calcutta was the first life Insurance company on Indian soil.
•Before 1912 India had no Legislation to Regulate Insurance Business.
In the year 1912, the life insurance companies act the provident fund act were passed
LIC’s  wide area network covers 100 divisional offices & connects all the branches through a metro area network with satellite offices attached to about  some 50 branches.
And has a network of around 1.2 million agents for soliciting life insurance from the public.
It has crossed the milestone of issuing 1,01,32,955.
New policies by 15th oct,2005-growth of 67% of previous year

MISSION
  • “Explore and enhance the quality of life of people through financial security by Providing products and services of aspired attributes with competitive returns, and by rendering resources for economic development.”
  • Vision
  • “A trans-nationally competitive financial conglomerate of significance to societies and Pride of India.”
Objective
  • Spread Life Insurance widely and in particular to the rural areas and to the Socially and economically backward classes with a view to reaching all insurable persons in the country and providing them adequate financial cover against death at a reasonable cost.
  • Maximize mobilisation of people’ savings by making insurance-linked savings Adequately attractive..
  • Conduct business with utmost economy and with the full realisation that moneys belong to the policyholders.
  • Act as trustees of the insured public in their individual  and collective capacities.
  • Promote amongst all agent and employees of the corporation a sense of participation, pride and job  satisfaction towards achievement of corporate objective.
  • INTERNATIONAL OPERATIONS..
  • LIC has always acknowledged the need to expand. our expanding efforts have been consistent & are evident through our associations.