Money Back Policy

About the Report

The present study is titled as A project report on Money Back Policies. The study is made with special reference to LI .

Objective of the study:

To study a!out the need for the Life Insurance. To study a!out the Money Back Policies and its types. Terms and onditions of the study. Ad"anta#es and $isad"anta#es of the study.

Index CH. 1
report.

Topic

Pg.No

Introduction #i"es introduction to the topic and to the 5-11

Money Back Policy

2
%i"es an o"er"iew on LI & A profile of the LI . 12-19 22-26 $eals with theoretical "iew of the topic.

!
$eals with the different policies !y LI . 27-58

"
oncludes the project study. 59

Money Back Policy

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I(%RO)*#%IO(
As a measure of pro"idin# protection a#ainst financial losses caused !y the premature death of !readwinner' life insurance has no parallel or su!stitute. There are two primary reasons why people purchase life insurance. The !etter of the two reasons is to pro"ide a death !enefit (i.e.' some de#ree of financial assistance to other persons & usually family mem!ers & when the insured dies). The other reason is to pro"ide sa"in#s' particularly for retirement. Life insurance is often considered as the !est estate plannin# fuel. It can pro"ide li*uidity' help in !usiness plannin# (key person insurance)' and pro"ide su!stantial death !enefits. The "alue for such purposes is calculated in a different way' under +!usiness insurance,. The purpose of life insurance for most people is to protect their !eneficiaries, standard of li"in# in the e"ent of and timely death of a wa#e earner. Life insurance ensures that when the life assured dies' his !eneficiaries will ha"e the financial resources in place to protect the future income and pay for immediate and future financial o!li#ations. -ithout life insurance to meet the deficit' families can !e financially !urdened or e"en de"astated at the time of !read winners, death.

Money Back Policy There are . main types of insurance policies/ 0 1. 2. 3. .. Term insurance -hole life insurance 4ndowment Annuities

Money Back Policy TERM INSURANCE Term Insurance pays a death !enefit to the le#al heirs if the person insured' dies durin# the term of the policy. 5uch a policy pro"ides co"er for a specified period only and may !e descri!ed as temporary insurance. Term insurance plans offer pure risk co"er without any element of sa"in#. 6ence they are the most ine7pensi"e. The sum assured is paya!le only if the insured dies durin# the selected period. In case the insured does not die durin# tenure of insurance' nothin# is paya!le. Term insurance plans could !e of the followin# different types/ 0 a) Level term insuran e/ 0 8nder this plan there is a uniform premium and !enefit throu#hout the term of the policy. In the e"ent of death anytime durin# the term the same sum assured is paya!le. -here the term is for o"er a year' the renewal premium is the same year. This policy plans is the most popular term insurance plan mainly !ecause of its simplicity. It is an answer to neither a temporary need which neither increases nor decreases o"er that period. 9or e.#.' a lump sum amount which is due at certain point time. !) !e reasin" term insuran e/ 0 8nder this plan the premium is constant throu#hout the term !ut the !enefit decreases o"er a period. 6ence the amount paya!le on death depends on the timin# of the death e"en thou#h the premium !ein# paid is constant. This plan is suited to cases where there is a temporary need which is reducin#. 9or e.#. where a mort#a#e loan has to !e repaid this reduces on a monthly or annual !asis. c) In reasin" term insuran e/ 0 8nder this plan the premium as well as the !enefit increase periodically. Te increases could !e

Money Back Policy at a fi7ed percenta#e or in line with an a#reed inde7 this plans is useful in keepin# the !enefits in line with the time "alue of money so that inflation does not erode the "alue of the !enefits recei"ed. d) Rene#a$le term insuran e/ 0 Thou#h term insurance is for a fi7ed period a renewa!le term policy #i"es the ri#ht to renew the policy without su!mittin# fresh e"idence of health. The new premium howe"er is increased to reflect the increased a#e of the insured. e) C%nverti$le term insuran e/ 0 5uch a plan includes a con"ersion pri"ile#e which #i"es Proposer the ri#ht to con"ert the policy to a permanent plan (endowment) without e"idence of the health. If such an option is e7ercised the premium for the plan must !e the standard rate for such a plan and the actual a#e of the life insured on the date of con"ersion of policy con"erti!le policy are useful for people who ha"e low income today and hence cannot afford to pay hi#h premium in the initial years.

Money Back Policy

&'(LE LI)E INSURANCE -hole life insurance #uarantees a death !enefit co"er throu#hout the course of life pro"ided the re*uired premiums are paid. The ad"anta#es of whole life insurance is that the policy if kept current co"ers you o"er your entire life as opposed to term insurance that co"ers you only for a certain term of years. -hole life insurance policies pay out on the death of the assured whene"er it occurs. Premium may need to !e paid throu#hout the life of the assured or a lesser limited period.

EN!(&MENT INSURANCE Pure endowment is a plan where the !enefit is paya!le to the insured only on sur"i"al of the specified term. om!inin# the features of term assurance and pure endowment are endowment policies which out either on the death of the assured whene"er it occurs or after a fi7ed num!er of years. 5hould the insured person sur"i"e the term of policy the policy said to mature. 6ence the claim under an endowment policy may arise either !y death or !y maturity.

Money Back Policy ANNUITIES Annuities are a for of pension in which an insurance company makes a series of periodic payment to a person (annuitant) or his :her dependants o"er a num!er of years (term) in return for the money paid to the insurance company either in lump sum or in installment. Annuities start where life insurance ends. It is called the re"erse of life insurance. Annuities stops on the death of a person where as theoretically life insurance starts on the death of the assured. Annuities are of two types0 Imme*iate annuit+/ 0 Immediate annuity !e#ins at once or immediately on e7piry of the desi#ned period. Immediate annuity is purchased with a sin#le premium called purchase price this type of typically purchased when a person reaches retirement a#e and has a lump sum to in"est. If the person !uyin# the annuity dies durin# his le#al heirs or nominees #et the remainin# installment of the annuity. !e,erre* annuit+/ 0 8nder a deferred annuity plan the annuity payments to the annuitant commence at some specified time or specified a#e of the annuitant. This type of annuity can !e funded either !y a sin#le payment or re#ular payments. The annuity payment starts after lapse of a selected period called the deferment period. ;ther the a!o"e the followin# two types of policies are also popular in India.

Money Back Policy -resent S enari% The %o"ernment of India li!erali<ed the insurance sector in March 2=== with the passa#e of the Insurance >e#ulatory and $e"elopment Authority (I>$A) Bill' liftin# all entry restrictions for pri"ate players and allowin# forei#n players to enter the market with some limits on direct forei#n ownership. 8nder the current #uidelines' there is a 2? percent e*uity cap for forei#n partners in an insurance company. There is a proposal to increase this limit to .@ percent. Premium rates of most #eneral insurance policies come under the pur"iew of the #o"ernment appointed Tariff Ad"isory ommittee.

Money Back Policy

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+I# , A PRO-I+&
The history of life insurance in India dates !ack to 1A1A when it was concei"ed as a means to pro"ide for 4n#lish -idows. Interestin#ly in those days a hi#her premium was char#ed for Indian li"es than the non0Indian li"es as Indian li"es were considered more risky for co"era#e. -ith lar#est num!er of life insurance policies in force in the world' Insurance happens to !e a me#a opportunity in India. It,s a !usiness #rowin# at the rate of 1B02= per cent annually and presently is of the order of >s .B= !illion. To#ether with !ankin# ser"ices' it adds a!out C per cent to the country,s %$P. %ross premium collection is nearly 2 per cent of %$P and funds a"aila!le with LI per cent of %$P. Det' nearly A= per cent of Indian population is without life insurance co"er' health insurance and non0life insurance continue to !e !elow international standards. And this part of the population is also su!ject to weak social security and pension systems with hardly any old a#e income security. This it self is an indicator that #rowth potential for the insurance sector is immense. A well0de"eloped and e"ol"ed insurance sector is needed for economic de"elopment as it pro"ides lon# term funds for infrastructure de"elopment and at the same time stren#thens the risk takin# a!ility. It is estimated that o"er the ne7t ten years India would re*uire in"estments of the order of one trillion 85 dollar. The Insurance for in"estments are A

Money Back Policy sector' to some e7tent' can ena!le in"estments in infrastructure de"elopment to sustain economic #rowth of the country. -ith a lar#e capital outlay and lon# #estation periods' infrastructure projects are frau#ht with a multitude of risks throu#hout the de"elopment' construction and operation sta#es. These include risks associated with project implementation' includin# #eolo#ical risks' maintenance' commercial and political risks. -ithout co"erin# these risks the financial institutions are not willin# to commit funds to the sector' especially !ecause the financin# of most pri"ate projects is on a limited or non0recourse !asis. Insurance companies not only pro"ide risk co"er to infrastructure projects' they also contri!ute lon#0term funds. In fact' insurance companies are an ideal source of lon# term de!t and e*uity for infrastructure projects. -ith lon# term lia!ility' they #et a #ood asset0 lia!ility match !y in"estin# their funds in such projects. I>$A re#ulations re*uire insurance companies to in"est not less than 1B percent of their funds in infrastructure and social sectors. International Insurance companies also in"est their funds in such projects. Insurance is a federal su!ject in India. There are two le#islations that #o"ern the sector & The Insurance Act01@3A and the I>$A Act01@@@.

Money Back Policy

I(.*RA(#& I( I()IA
The insurance sector in India has come as a full circle from !ein# an open competiti"e market to nationali<ation and !ack to a li!erali<ed market a#ain. Tracin# the de"elopments in the Indian insurance sector re"eals the 3?= de#ree turn witnessed o"er a period of almost two centuries. A !rief history of the Insurance sector The !usiness of life insurance in India in its e7istin# from started in India in the year 1A1A with the esta!lishment of the ;riental Life Insurance ompany in alcutta. 5ome of the important milestones in the life Insurance !usiness in India are/ 1@12/ The Indian Life Assurance ompanies Act enacted as the first statute to re#ulate the life insurance !usiness. 1@2A/ The Indian Insurance ompanies Act enacted to ena!le the #o"ernment to collect statistical information a!out !oth life and non0life insurance !usinesses. 1@3A/ 4arlier le#islation consolidated and amended to !y the Insurance Act with the o!jecti"e of protectin# the interests of the insurin# pu!lic. 1@B?/ 2.B Indian and forei#n insurers and pro"ident societies taken o"er !y the central #o"ernment and nationali<ed. LI formed !y an Act of Parliament' "i<. LI Act' 1@B?' with a capital contri!ution of >s. B crore from the %o"ernment of India. The %eneral insurance !usiness in India' on the other hand' can trace its roots to the Triton Insurance Ltd.' the first #eneral Insurance ompany esta!lished in the year 1AB= in India are/ 19.7/ The Indian Mercantile Insurance Ltd. set up' the first company to transact all classes of #eneral insurance !usiness. alcutta !y the British. 5ome of the important milestones in the #eneral insurance !usiness in

Money Back Policy 1957/ %eneral Insurance !usiness practices. 1968/ The Insurance Act amended to re#ulate in"estments and set minimum sol"ency mar#ins and the Tariff Ad"isory ommittee set up. 1972/ The %eneral Insurance Business (Eationali<ation) Act' 1972/ Eationali<ed the #eneral insurance !usiness in India with effect from 1st Fanuary. 1970/ 1=C insurers amal#amated and #rouped into four companies, "i<. the Eational Insurance ompany Ltd.' the Eew India Assurance ompany Ltd. and the 8nited incorporated as a company. ompany Ltd.' the ;riental Insurance India Insurance ompany Ltd. %I ouncil' a win# of the Insurance Association

of India' frames a code of conduct for ensurin# fair conduct and sound

Money Back Policy

+ife Insurance Market

The Life Insurance market in India is an underde"eloped market that was only tapped !y the state owned LI till the entry of pri"ate insurers. The penetration of life insurance products was 1@ percent of the total .== million of the insura!le population. The state owned LI sold insurance as a ta7 instrument' not as a product #i"in# protection. Most customers were under0insured with no fle7i!ility or transparency in the products. -ith the entry of the pri"ate insurers the rules of the #ame ha"e chan#ed. The 12 pri"ate insurers in the life insurance market ha"e already #ra!!ed nearly @ percent of the market in terms of premium income. The new !usiness premiums of the 12 pri"ate players ha"e tripled to >s. 1=== crore in 2==20=3 o"er last year. Meanwhile' state owned LI ,s new premium !usiness has fallen. Inno"ati"e products' smart marketin# and a##ressi"e distri!ution. That,s the triple whammy com!ination that has ena!led fled#in# pri"ate insurance companies to si#n up Indian customers faster than anyone e"er e7pected. Indians' who ha"e always seen life insurance as a ta7 sa"in# de"ice' are now suddenly turnin# to the pri"ate sector and snappin# up the new inno"ati"e products on offer. The #rowin# popularity of the pri"ate insurers shows in other ways. They are coinin# money in new niches that they ha"e introduced. The state owned companies still dominate se#ments like endowments and money !ack policies. But in the annuity or pension products !usiness' the pri"ate insurers ha"e already wrested o"er 33 percent of the market. And in the popular unit0linked insurance schemes they ha"e a "irtual monopoly' with o"er @= percent of the customers.

Money Back Policy The pri"ate insurers also seem to !e scorin# !i# in other ways & they are persuadin# people to take out !i##er policies. 9or instance' the a"era#e si<e of a life insurance policy !efore pri"ati<ation was around >s. B='===. That has risen to a!out >s. A='===. But the pri"ate insurers are ahead in this #ame and the a"era#e si<e of their policies is around >s. 1.1 lakh to >s.1.2 lakh0way !i##er than the industry a"era#e. ($1e tives %, LIC
5pread Life Insurance widely and in particular to the rural areas

and to the socially and economically !ackward classes with a "iew to reachin# all insura!le persons in the country and pro"idin# them ade*uate financial co"er a#ainst death at a reasona!le cost.
Ma7imi<e

mo!ili<ation

of

people,s

sa"in#s

!y

makin#

insurance0linked sa"in#s ade*uately attracti"e.

onduct !usiness with utmost economy and with the full reali<ation that the moneys !elon# to the policyholders.

Act as trustees of the insured pu!lic in their indi"idual and

collecti"e capacities.
Meet the "arious life insurance needs of the community that

would arise in the chan#in# social and economic en"ironment.

In"ol"e all people workin# in the

orporation to the !est of their

capa!ility in furtherin# the interests of the insured pu!lic !y pro"idin# efficient ser"ice with courtesy.

Money Back Policy Promote amon#st all a#ents and employees of the orporation a orporate

sense of participation' pride and jo! satisfaction throu#h dischar#e of their duties with dedication towards achie"ement of ;!jecti"e. Mem$ers %n t2e 3%ar* %, t2e C%r4%rati%n S2ri5 T5S5 6i1a+an ( hairman) S2ri5 !575 Me2r%tra (Mana#in# $irector 0 LI ) S2ri5 T2%mas Mat2e# T (Mana#in# $irector 0 LI ) S2ri5 6in%* Rai8 5ecretary (9inancial 5ector)' $epartment of 4conomic Affairs' Ministry ;f 9inance S2ri5 65-5S2ett+ ( hairman' I$BI) S2ri5 R5759%s2i ( hairman cum Mana#in# $irector' %I ) S2ri5 Amitav 7%t2ari ( hartered Accountant ) S2ri5 Sunil 7ant Mun1al (M$ G 4;' 6ero orporate 5er"ices Ltd.) !r5 Arvin* 6irmani (Principal Ad"isor' Plannin# ommission' Dojana Bha"an) !r5 A59a+a"%vin* ($irector' Eational Law 5chool of India ) Smt5 -us24a :irima1i (5ocial Acti"ist) !r5 ;Ms5< S#ati -iramal ( $irector' Eicholas Piramal Ltd.) !r5:autam 3arua ( $irector' IIT' %uwahati)

Money Back Policy

Money Back Policy/ India

Money !ack policy pro"ides for periodic payments of partial sur"i"al !enefits durin# the term of the policy' as lon# as the policyholder is ali"e. They differ from endowment policy in the sense that in endowment policy sur"i"al !enefits are paya!le only at the end of the endowment period. An important feature of money !ack policies is that in the e"ent of death at any time within the policy term' the death claim comprises full sum assured without deductin# any of the sur"i"al !enefit amounts' which may ha"e already !een paid as money0!ack components. The !onus is also calculated on the full sum assured.

Money Back Policy

#$AP%&R
MO(&0 BA#1 PO+I#I&. , A %$&ORI%I#A+ 2I&3
The story of insurance is pro!a!ly as old as the story of mankind. The same instinct that prompts modern !usinessmen today to secure themsel"es a#ainst loss and disaster e7isted in primiti"e men also. They too sou#ht to a"ert the e"il conse*uences of fire and flood and loss of life and were willin# to make some sort of sacrifice in order to achie"e security. Thou#h the concept of insurance is lar#ely a de"elopment of the recent past' particularly after the industrial era & past few centuries & yet its !e#innin#s date !ack almost ?=== years. Life Insurance in its modern form came to India from 4n#land in the year 1A1A. ;riental Life Insurance ompany started !y 4uropeans in alcutta was the first life insurance company on Indian 5oil. All the insurance companies esta!lished durin# that period were !rou#ht up with the purpose of lookin# after the needs of 4uropean community and Indian nati"es were not !ein# insured !y these companies. 6owe"er' later with the efforts of eminent people like Ba!u Muttylal 5eal' the forei#n life insurance companies started insurin# Indian li"es. But Indian li"es were !ein# treated as su!0standard li"es and hea"y e7tra premiums were !ein# char#ed on them. Bom!ay Mutual Life Assurance 5ociety heralded the !irth of first Indian life insurance company in the year 1AC=' and co"ered Indian li"es at normal rates. 5tartin# as Indian enterprise with hi#hly patriotic moti"es' insurance companies came into e7istence to carry the messa#e of insurance and social security throu#h insurance to "arious sectors of society.

Money Back Policy Bharat Insurance ompany (1A@?) was also one of such companies

inspired !y nationalism. The 5wadeshi mo"ement of 1@=B01@=C #a"e rise to more insurance companies. The 8nited India in Madras' Eational Indian and Eational Insurance in alcutta and the o0 operati"e Assurance at Lahore were esta!lished in 1@=?. Inn 1@=C' 6industan o0operati"e Insurance ompany took its !irth in

one of the rooms of the Forasanko' house of the #reat poet >a!indranath Ta#ore' in alcutta. The Indian Mercantile' %eneral Assurance and 5wadeshi Life (later Bom!ay Life) were some of the companies esta!lished durin# the same period. Prior to 1@12 India had no le#islation to re#ulate insurance !usiness. In the year 1@12' the Life Insurance ompanies Act' and the Pro"ident 9und Act were ompanies Act' 1@12' made it necessary passed. The Life Insurance

that the premium rate ta!les and periodical "aluations of companies should !e certified !y an actuary. But the Act discriminated !etween forei#n and Indian companies on May accounts' puttin# the Indian companies at a disad"anta#e. The first two decades of the twentieth century saw lot of #rowth in insurance !usiness. 9rom .. companies with total !usiness0in0force as >s.22... crore' it rose to 1C? companies with total !usiness0in0 force as >s.2@A crore in 1@3A. $urin# the mushroomin# of insurance companies many financially unsound concerns were also floated which failed misera!ly. The Insurance Act 1@3A was the first le#islation #o"ernin# not only life insurance !ut also non0life insurance to pro"ide strict state control o"er insurance !usiness. The demand for nationali<ation of life insurance industry was made repeatedly in the past !ut it #athered momentum in 1@.. when a !ill to amend the Life Insurance Act 1@3A was introduced in the Le#islati"e Assem!ly.

Money Back Policy 6owe"er' it was much later on the 1@ th of Fanuary' 1@B?' that life insurance in India was nationali<ed. A!out 1B. Indian insurance companies' 1? non0Indian companies and CB pro"ident were operatin# in India at the time of nationali<ation. Eationali<ation was accomplished in two sta#esH initially the mana#ement of the companies was taken o"er !y means of an ;rdinance' and later' the ownership too !y means of and a comprehensi"e !ill. The Parliament of India passed the Life Insurance 1@B?' and the Life Insurance orporation Act on the 1@ th of Fune orporation of India was created on 1 st

5eptem!er' 1@B?' with the o!jecti"e of spreadin# life insurance much more widely and in particular to the rural areas with a "iew to reach all insura!le persons in the country' pro"idin# them ade*uate financial co"er at a reasona!le cost. LI has B <onal offices' 33 di"isional offices and 212 !ranch offices'

apart from its corporate office in the year 1@B?. 5ince life insurance contracts are lon# term contracts and durin# the currency of the policy it re*uires as "ariety of ser"ices need was felt in the later years to e7pand the operations and place a !ranch office at each district head*uarter. >e0or#ani<ation of LI took place and lar#e num!ers of new !ranch offices were opened. As a result of re0or#ani<ation ser"icin# functions were transferred to the !ranches' and !ranches were made accountin# units. It worked wonders with the performance of the corporation. It may !e seen that from a!out 2==.== crores of Eew Business in 1@BC the corporation crossed 1===.== crores only in the year 1@?@0C=' and it took another 1= years for LI happenin# in the early ei#hties' !y 1@AB0A? LI C===.== crore 5um Assured on new policies. to cross 2===.== crore mark of new !usiness. But with re0or#ani<ation had already crossed

Money Back Policy Today LI functions with 2=.A fully computeri<ed !ranch offices' 1==

di"isional offices' C <onal offices and the corporate office. LI ,s -ide Area Eetwork co"ers 1== di"isional offices and connects all the !ranches throu#h a Metro Area Eetwork. LI has tied up with some Banks and 5er"ice pro"iders to offer on0line premium collection facility in selected cities. LI ,s 4 5 and ATM premium payment facility is an addition to customer con"enience. Apart from on0line Iiosks and IJ>5' Info Ban#alore' LI enters ha"e !een commissioned at Mum!ai' Ahmeda!ad' hennai' 6ydera!ad' Iolkata' Eew $elhi' Pune and many

other cities. -ith a "ision of pro"idin# easy access to its policyholders' has launched its 5ATT4LIT4 5AMPA>I offices. The satellite offices are smaller' leaner and closer to the customer. The di#itali<ed records of the satellite offices will facilitate anywhere ser"icin# and many other con"eniences in the future. LI continues to !e dominant life insurer e"en in the li!erali<ed has issued o"er one

scenario of Indian insurance and is mo"in# fast on a new #rowth trajectory surpassin# its own past records. LI crore policies durin# the current year. It has crossed the milestone of issuin# 1'=1'32'@BB new policies !y 1B th ;ct' 2==B' postin# a healthy #rowth rate of 1?.?CK o"er the correspondin# period of the pre"ious year. 9rom then to now' LI has crossed many milestones and has set up

unprecedented performance records in "arious aspects of life insurance !usiness. The same moti"es which inspired our forefathers to !rin# insurance into e7istence in this country inspire us at LI to take this messa#e of protection to li#ht the lamps of security in as many homes as possi!le and to help the people in pro"idin# security to their families.

Money Back Policy The followin# are the o!jecti"es of the money !ack policy/ 0
The primary purpose of the life insurance is to pro"ide

replacement of income to the family and dependence on premature death of the !read winner.
Life insurance can also !e used as re#ular sa"in# cum

protection plan for meetin# lon# term financial #oals. -hile sa"in# throu#h other instruments as indi"idual does not #et the !enefit of protection alon# with sa"in#.
Throu#h

insurance one can pro"ide protection a#ainst

outstandin# loan lia!ility in the e"ent of death.

Pro"isions for one,s own later years !ecome increasin#ly

necessary'

especially

in

chan#in#

cultural

and

social

en"ironment. ;ne can !uy a suita!le insurance policy' which will pro"ide periodical payments in one,s old a#e.

Missi%n
47plore and enhance the *uality of life of people throu#h financial security !y pro"idin# products and ser"ices of aspired attri!utes with competiti"e returns' and !y renderin# resources for economic de"elopment.

6isi%n
A trans0nationally competiti"e financial con#lomerate of si#nificance to societies and Pride of India.

Money Back Policy

.OM& -R&4*&(%+0 A.1&) 4*&.%IO(. B0 I(2&.%OR

&2at is M%ne+ 3a = -%li +>
8nlike ordinary endowment insurance plans where the sur"i"al !enefits are paya!le only at the end of the endowment period' money !ack policies pro"ide for periodic payments of partial sur"i"al !enefits durin# the term of the policy' of course so lon# as the policy holder is ali"e. An important feature of this type of policies is that in the e"ent of death at any time within the policy term' the death claim comprises full sum assured without deductin# any of the sur"i"al !enefit amounts' which may ha"e already !een paid as money0!ack components. 5imilarly' the !onus is also calculated on the full sum assured.

'%# is it $ene,i ial t% me>

8nder money !ack policies premiums can !e paid as per the insurance company,s policy. These could !e *uarterly' half yearly or annually. The premiums for these policies are paya!le for the selected term of years' or till death if it occurs earlier. By !uyin# such policies one can recei"e income at re#ular inter"als other than the risk co"er it pro"ides. Also a #ood amount of !onus on the full sum assured is *uite a #ood !ar#ain. &2% s2%ul* $u+ t2is 4lan> 5uch plans are particular popular with indi"iduals for whom income at re#ular inter"als is a necessity in addition to an insurance co"er. The minimum a#e is 12 years to !e eli#i!le for a Money0Back Policy.

Money Back Policy '%# *%es t2e m%ne+-$a = 4%li + #%r=> 5ite %round has adopted the policy of refundin# customers who decide to stop usin# our ser"ices within the first 3= days of ha"in# their shared -indows or Linu7 account with us. After the 3= days ha"e passed (e.#. if you re*uest ser"ice cancellation on day 31) we will only cancel your account. Please note that Jirtual Pri"ate 5er"ers are not co"ered !y the Money Back %uarantee. ;ther e7cluded products are fees for dedicated ser"ers (includin# setup fees)' shared hostin# account setup fees as well as AED up#rades' e7tras or additional payments that ha"e !een done after the initial purchase. In case you are cancelin# a reseller account' we will su!tract a L12 setup fee plus LA.@B for each of the re#istered domain names from your refund. 5ite%round also reser"es the ri#ht to keep a part of the domain name re#istration fee. The domain name itself remains your property' and you will !e #i"en access to a control panel' from which you are a!le to chan#e nameser"ers (useful when chan#in# hosts) and -6;I5 information. Im4%rtant n%ti e/ This text contains selected information regarding the 30 day money-back guarantee and only has informative character. For more details, please read carefully the Terms of Use for the respective product before purchase

Money Back Policy

#$AP%&R !
MO(&0 BA#1 PO+I#0 3I%$ +I#
Money !ack plans are a special type of endowment plans and are also called as anticipated endowment assurance plans. 8nder money !ack plans' sur"i"al !enefits are spread o"er the term of the policy i.e.' certain percenta#e of sum assured is paid at re#ular inter"als. Apart from the a!o"e death !enefit continues like an endowment plan i.e.' full sum assured shall !e paya!le on death within the term irrespecti"e of earlier sur"i"al !enefits.

I5 9eevan Sura$2i -%li + ? -lan n%51.6

)eatures/ and is a modified "ersion of

This plan was introduced in ;ct @2 !y LI

other money !ack plans offered !y LI . The difference !etween the other money !ack plans and Fee"an 5ura!hi plans are that/ Maturity term is more than premium payin# term. 4arly and hi#her rate of sur"i"al !enefit payment. >isk co"er increases e"ery fi"e years.
S4e ial )eatures/

Lon#er policy terms G limited premium payin# terms as under/ -lan N%5 1=? -%li + Term 1B years -remium -a+in" Term 12 years K of Basic 5um Assured 3= 3= .= Bonus

5ur"i"al !enefits 5ur"i"al Benefits At the end of . years At the end of A years At the end of 12 years At the end of 1B years

Money Back Policy Maturity

!eat2 3ene,its/

1B years

If death occurs at anytime durin# the term of a policy (pro"ided the policy has !een kept in force !y payment of all premiums that had fallen due)' the !asic sum assured alon# with the "ested !onus will !e paid. The sur"i"al !enefits already paid' if any' will not !e deducted from this claim amount. An additional amount (dependin# on the duration of the policy) will also !e paid on death under such a policy. The additional amounts paya!le' at "arious sta#es are shown in the ta!le #i"en !elow/ 0 -%li + -arameters/ 4ntry A#e 5um Assured Term Mode of Payment Dearly' half yearly' *uarterly' monthly' salary sa"in# scheme
Suita$le ,%r/

Min 1. 2==== 1B Ma7 Maturity A#e C= Dears

Ma7 BB Eo limit 12 Policy loan a"aila!le Eo

This plan holds special interest to people who !esides wishin# to pro"ide for their old a#e and family feel the need for lump sum !enefits at periodical inter"als.

Money Back Policy

II5 9eevan Sura$2i -%li + ? -lan n%5 1.7

S4e ial )eatures/

Lon#er policy terms G limited premium payin# terms as under/ -lan N%5 1=C -%li + Term 2= years -remium -a+in" Term 1B years K of Basic 5um Assured 2B 2B 2B 2B Eil Bonus 2= years

5ur"i"al !enefits/ 5ur"i"al Benefits At the end of . years At the end of A years At the end of 12 years At the end of 1B years At the end of 1A years At the end of 2= years Maturity
!eat2 3ene,its/

If the death occurs at anytime durin# the term of a policy (pro"ided the policy has !een kept in force !y payment at all premiums that had fallen due)' the !asic sum assured alon# with the "ested !onus will !e paid. The sur"i"al !enefits already paid' if any' will not !e deducted for this claim amount. An additional amount (dependin# on the duration of the policy) will also !e paid on death under such a policy. Additional Amount to Be Paid in ase of $eath for a Policy of >s. 1===. Policy 9irst B?th01=th 11th01Bth 1?th0 2=th (Policy Dears) (Policy Dear) (Policy Dear) (Policy Dear) 1=C:2= Eil B== 1=== 1B==

Money Back Policy

-%li + -arameters/ 4ntry A#e 5um Assured Term Mode of Payment Min 1. 2==== 2= Ma7 Maturity A#e Ma7. B= Eo limit Policy a"aila!le Eo loan

Dearly' half yearly' C= *uarterly' monthly' salary sa"in# scheme

Suita$le ,%r/

This plan holds special interest to people who !esides wishin# to pro"ide for their old a#e and family feel the need for lump sum !enefits at periodical inter"als.

Money Back Policy

III5

9eevan Sura$2i -%li + ? -lan n%5 1.8

)eatures/ and is a modified "ersion of

This plan was introduced in ;ct @2 !y LI

other money !ack plans offered !y LI . The difference !etween the other money !ack plans and these plans is as follows/ 0 Maturity term is more than premium payin# term. 4arly and hi#her rate of sur"i"al !enefit payment. >isk co"er increases e"ery fi"e years.

S4e ial )eatures/

Lon#er policy terms G limited premium payin# terms as under/ 0 -lan N%5 Term 1=A -%li + Term 2B years -remium -a+in" 1A years

Survival $ene,its/

5ur"i"al Benefits At the end of . years At the end of A years At the end of 12 years At the end of 1B years At the end of 1A years Maturity

K of Basic 5um Assured 2= 2= 2= 2= Bonus 2B years

Money Back Policy

!eat2 3ene,its/

If death occurs at anytime durin# the term of a policy (pro"ided the policy has !een kept in force !y payment of all premiums that had fallen due)' the !asic sum assured alon# with the "ested !onus will !e paid. The sur"i"al !enefits already paid' if any' will not !e deducted for this claim amount. An additional amount (dependin# on the duration of the policy) will also !e paid on death under such a policy. The additional amounts paya!le' at "arious sta#es are shown in the ta!le #i"en !elow/ 0 Additional Amount To Be Paid In >s.1=== Policy 1=A:2B 9irst Eil B?th01=th B== 11th01Bth 1=== 1?th02=th 1B== 21st02?th 2=== (Policy Dear) (Policy Dear) (Policy Dear) (Policy Dear) aw ;f $eath 9or A Policy ;f

-%li + -arameters/ 4ntry A#e 5um Assured Term Mode of Payment Min 1. 2==== 2B Ma7 Maturity A#e Ma7 .B Eo limit 1A Policy a"aila!le Eo

loan

Dearly' half yearly' C= Dears *uarterly' monthly' salary sa"in# scheme

Suita$le ,%r/

This plan holds special interest to people who !esides wishin# to pro"ide for their old a#e and family feel the need for lump sum !enefits at periodical inter"als.

Money Back Policy

I65

M%ne+ $a = #it2 4r%,its ? -%li + ? -lan n%575

)eatures/

8nlike ordinary endowment insurance plans where the sur"i"al !enefits are paya!le only at the end of the endowment period' this scheme pro"ides for periodic payments of partial sur"i"al !enefits as follows durin# the term of the policy' of course so lon# as the policy holder is ali"e.
S4e ial )eatures/

In the case of a 120year policy/ 2=K of the sum assured !ecomes paya!le each at the . th and Ath years' and the !alance ?=K plus the accumulated !onus at the end of the 120year term. 5imilarly' for a policy of 1B years/ 2BK of the sum assured is paya!le each after B and 1= years' and the !alance B=K of the sum assured to#ether with the accumulated !onus at the end of the 1Bth year. In the case of a 2=0year Money0Back Policy/ 2=K of the sum assured !ecomes paya!le each after B' 1=' 1B years' and the !alance of .=K plus the accrued !onus !ecome paya!le at the 2Bth year. 9or a Money0!ack Policy of 2B yearsH 1BK of the sum assured !ecomes paya!le each after B' 1=' 1B and 2= years' and the !alance .=K plus the accrued !onus !ecome paya!le at the 2B th year. An important feature of this type of policies is that in the e"ent of death at any time within the policy term' the death claim comprises full sum assured without deductin# any of the sur"i"al !enefit

Money Back Policy amounts' which may ha"e already !een paid as money0!ack components. The e7tra premium for this !enefit is "ery reasona!le and well worth it' unlike in the case of the whole life anticipated policy.
Survival $ene,its/

-eri%* B Dears 1= Dears 1B Dears 2= Dears 2B Dears

Sum assure* ,%r 2. +ears term 2= Percent 2= percent 2= percent .= percent M Bonus 0

Sum Assure* ,%r 25 +ears@ term 1B percent 1B percent 1B percent 1B percent .= percent M Bonus

-%li + -arameters/ 4ntry A#e 5um Assured Term Mode of Payment Min 13 2='=== 2= Ma7 Maturity A#e Ma7 B= Eo limit 2= Policy a"aila!le Eo

loan

Dearly' half yearly' C= Dears *uarterly' monthly' salary sa"in# scheme

Suita$le ,%r/

This plan holds special interest to people who !esides wishin# to pro"ide for their old a#e and family feel the need for lump sum !enefits at periodical inter"als. This plan meets with periodical needs althou#h loans are not #ranted under this policy. A terminal !onus is #ranted thou#h. The !asic !onus under plan is sli#htly lower than the rate applica!le to endowment assurances. $urin# 1@@A0@@' LI policies under this scheme. issued .=.23 lakh

Money Back Policy

65

Ne# M%ne+ $a = ? -%li + ? -lan n%5 90

S4e ial )eatures/

8nlike ordinary endowment insurance plans where the sur"i"al !enefits are paya!le only at the end of the endowment period' this scheme pro"ides for periodic payments of partial sur"i"al !enefits as follows durin# the term of the policy' of course so lon# as the policy holder is ali"e. 9or a Money0Back Policy of 2B years (Ta!le @3)' 1BK of the sum assured !ecomes paya!le each after B' 1=' 1B and 2= years' and the !alance .=K plus the accrued !ecome paya!le at the 2B th year. An important feature of this type of policies is that in the e"ent of death at any time within the policy term' the death claim comprises full sum assured without deductin# any of the sur"i"al !enefit amounts' which may ha"e already !een paid as money0!ack components. 5imilarly' the !onus is also calculated on the full sum assured.
Survival $ene,its/

-eri%* 92A2. Bears At the end of B Dears At the end of 1= Dears At the end of 1B Dears At the end of 2= Dears 1B K Accrued Bonus At the end of 2B Dears

75A2. Bears 2= K 2= K 2= K Balance .= K M Eil 1B K 1B K 1B K

Balance .= percent M Accrued Bonus

-ermanent *isa$ilit+/

3ene,it availa$le

Income0ta7 re!ate

Money Back Policy

8nder section AA on premiums paid. 1==K Income ta7 free/ Permanent disa!ility' maturity and death claims.

!eat2 3ene,its/

9ull sum assured M !onus irrespecti"e of sur"i"al !enefits taken $eath !efore maturity. Natural/ Payment of full 5um assured M accrued !onus. A i*ent/

Payment of dou!le the 5um Assured M Accrued !onus (5ur"i"al !enefits already paid will not !e deducted). -%li + -arameters/ 4ntry A#e 5um Assured Term Mode of Payment Min 13 2='=== 2B Ma7 Maturity A#e Ma7 B= Eo limit 2B Policy a"aila!le Eo

loan

Dearly' half yearly' C= Dears *uarterly' monthly' special sa"in# scheme

Suita$le ,%r/

This plan holds a special interest to people who !esides wishin# to pro"ide for their old a#e and family feel the need for lump sum !enefits at periodical inter"als.

6I5

9eevan San 2a+a -%li + ? -lan n%5 120

)eatures/

Money Back Policy This is a money !ack plan which is #i"in# %uaranteed Addition as well as loyalty addition instead of participatin# in profits of LI .
:uarantee* A**iti%n/

The %uaranteed Addition N >s.C=:0 per thousand 5um Assured paya!le for each completed policy year (durin# which the policy was in force for the full 5um Assured) will !e paya!le at the end of the term of the policy or earlier death of the life assured.
L%+alt+ A**iti%n ;)inal -a+ment</

If the premiums are paid for at least B years' loyalty addition may !ecome a"aila!le alon# with claim payments. The rate of loyalty addition will !e declared !y the corporation dependin# upon the e7perience with re#ard to Mortality' Interest G 47penses and !e !ased on inte#ral num!er of years premiums paid.
A

i*ent 3ene,it/

The Accident Benefit will !e e7clusi"ely #uaranteed under this plan' su!ject to a ma7imum of >s.B' =='===:0 only.
S4e ial )eatures/

i*ent 3ene,it/

Accident Benefit will !e #ranted under this plan su!ject to the payment of additional premium of >s.1:0 per thousand 5.A. su!ject to an e7clusi"e limit of >s.B' =='===. The followin# additional !enefits will accrue. ;n death due to accident durin# the term of the contract and pro"ided the policy is in full force on the date of death an additional sum e*ual to the !asic 5um assured will !e paya!le. ;n disa!ility due to accident' the !asic sum assured will !e paid in monthly installment spread o"er a period of 1= years startin# from first of the month followin# disa!lement. -ai"er of the premiums paya!le in future.

Money Back Policy

Survival $ene,its/

Plan 123:12 K ;f 5um Assured At the end of . years At the end of A years At the end of 12 years 2= 2= ?=

;n Maturity' the policyholder will recei"e the !alance sum assured as #i"en in the a!o"e ta!le plus the #uaranteed addition and loyalty addition (if any).
!eat2 3ene,its/

;n death of the life assured durin# the term of the policy' the !asic 5um assured is paya!le irrespecti"e of sur"i"al !enefits already paid. In addition to the !asic 5um Assured' %uaranteed and Loyalty additions if any' as per pro"isions herein !elow are also paya!le. -%li + -arameters/ Min Ma7 4ntry A#e 1. BA 5um Assured 2B=== Eo Limit Term 12 Mode of Payment Ma7 Maturity A#e Policy a"aila!le Dearly' half yearly' C= years Eo *uarterly' monthly' salary sa"in# scheme.

loan

Suita$le ,%r/

This plan holds special interest to people who !esides wishin# to pro"ide for their old a#e and family feel the need for lump sum !enefits at periodical inter"als.

Money Back Policy

6II5 9eevan San 2a+a -%li + ? -lan n%5 12C

)eatures/

This is a money !ack plan which is #i"in# %uaranteed Addition as well as loyalty addition instead of participatin# in profits of LI .
:uarantee* A**iti%n/

The %uaranteed Addition N >s.C=:0 per thousand 5um Assured paya!le for each completed policy year (durin# which the policy was in force for the full 5um Assured) will !e paya!le at the end of the term of the policy or earlier death of the life assured.
L%+alt+ A**iti%n ;)inal -a+ment</

If the premiums are paid for at least B years' loyalty addition may !ecome a"aila!le alon# with claim payments. The rate of loyalty addition will !e declared !y the corporation dependin# upon the e7perience with re#ard to Mortality' Interest G 47penses and !e !ased on inte#ral num!er of years premiums paid.
A

i*ent 3ene,it/

The Accident Benefit will !e e7clusi"ely #uaranteed under this plan' su!ject to a ma7imum of >s.B' =='===:0 only.
S4e ial )eatures/

i*ent 3ene,it/

Accident Benefit will !e #ranted under this plan su!ject to the payment of additional premium of >s.1:0 per thousand 5.A. su!ject to an e7clusi"e limit of >s.B' =='===. The followin# additional !enefits will accure. ;n death due to accident durin# the term of the contract and pro"ided the policy is in full force on the date of death an additional sum e*ual to the !asic 5um assured will !e paya!le.

Money Back Policy ;n disa!ility due to accident' the !asic sum assured will !e paid in monthly installment spread o"er a period of 1= years startin# from first of the month followin# disa!lement. -ai"er of the premiums paya!le in future.
Survival $ene,its/

-lan 120A12 K ;f 5um Assured At the end of B years At the end of 1= years At the end of 1B years 2B 2B ?=

;n Maturity' the policyholder will recei"e the !alance sum assured as #i"en in the a!o"e ta!le plus the #uaranteed addition and loyalty addition (if any). -%li + -arameters/ Min Ma7 4ntry A#e 1. BB 5um Assured 2B=== Eo Limit Term 1B Mode of Payment Ma7 Maturity A#e Policy a"aila!le Dearly' half yearly' C= years Eo *uarterly' monthly' salary sa"in# scheme.
Suita$le ,%r/

loan

This plan holds special interest to people who !esides wishin# to pro"ide for their old a#e and family feel the need for lump sum !enefits at periodical inter"als.

Money Back Policy

6III5 9eevan San 2a+a -%li + ? -lan n%512C

)eatures/

Fee"an 5anchaya is a money !ack plan which is #i"in# %uaranteed Addition as well as loyalty addition instead of participatin# in profits of LI .
:uarantee* A**iti%n/

The %uaranteed Addition N >s.C=:0 per thousand 5um Assured paya!le for each completed policy year (durin# which the policy was in force for the full 5um Assured) will !e paya!le at the end of the term of the policy or earlier death of the life assured.
L%+alt+ A**iti%n ;)inal -a+ment</

If the premiums are paid for at least B years' loyalty addition may !ecome a"aila!le alon# with claim payments. The rate of loyalty addition will !e declared !y the corporation dependin# upon the corporation,s e7perience with re#ards to mortality' interest G e7penses and is !ased on inte#ral num!er of years, premiums paid.
A

i*ent 3ene,it/

The Accident Benefit will !e e7clusi"ely #uaranteed under this plan' su!ject to a ma7imum of >s.B' =='===:0 only.
S4e ial )eatures/

i*ent 3ene,it/

Accident Benefit will !e #ranted under the plan su!ject to the payment of additional premium of >e.1:0 per thousand 5.A. su!ject to an e7clusi"e limit of >s.B' =='===. The followin# additional !enefits will accure. ;n death due to accident durin# the term of the contract and pro"ided the policy is in full force on the date of death an additional sum e*ual to the !asic 5um assured will !e paya!le. ;n disa!ility due

Money Back Policy to accident' the !asic sum assured will !e paid' in monthly installment spread o"er a period of 1= years startin# from first of the month followin# disa!lement.
Survival $ene,its/

Plan 12B:12 K ;f 5um Assured At the end of B years At the end of 1= years At the end of 1B years At the end of 2= years

2= 2= 2= .=

;n Maturity' the policyholder will recei"e the !alance sum assured as #i"en in the a!o"e ta!le plus the #uaranteed addition and loyalty addition (if any).
!eat2 3ene,its/

;n death of the life assured durin# the term of the policy' the !asic 5um assured is paya!le irrespecti"e of sur"i"al !enefits already paid. In addition to the !asic 5um Assured' %uaranteed and Loyalty additions if any' as per pro"isions herein !elow are also paya!le. -%li + -arameters/ Min Ma7 4ntry A#e 1. B= 5um Assured 2B=== Eo Limit Term 2= Mode of Payment Ma7 Maturity A#e Policy a"aila!le Dearly' half yearly' C= years Eo *uarterly' monthly' salary sa"in# scheme.
Suita$le ,%r/

loan

This plan holds special interest to people who !esides wishin# to pro"ide for their old a#e and family feel the need for lump sum !enefits at periodical inter"als.

Money Back Policy

ID5
)eatures

9eevan 32arat2i

-r%*u t summar+ This is a with0profits plan offered to women. It pro"ides life insurance co"er throu#hout the term of the plan alon# with the periodic payments on sur"i"al at specified durations durin# the policy term. The plan also pro"ides the co"er a#ainst affliction of certain 9emale ritical Illness and occurrence of certain newly !orn children. -remium/ Premiums at yearly inter"als are paya!le throu#hout the term of the policy or till earlier death. After at least two full years, premiums ha"e !een paid' full insurance co"er is a"aila!le e"en when premiums are not paid for up to three years. Premium for con#enital disa!ility !enefit ceases at policy anni"ersary after the life assured completes the a#e of .= years. :uarantee* A**iti%ns *urin" t2e ,irst 5 +ears / $urin# the first B years' %uaranteed Additions of >s.B=:0 per >s.1===:0 5um Assured will !e added to the policy at the end of each completed year for which premium is paid. 3%nuses a,ter t2e ,irst 5 +ears/ This is a with0profit plan and participates in the profits of the orporation,s life insurance !usiness after B years. It #ets a share of the profits in the form of !onuses. 5imple >e"ersionary Bonuses are declared per thousand 5um Assured annually at the end of each financial year. ;nce declared' they form part of the #uaranteed !enefits of the plan. on#enital $isa!ilities in

Money Back Policy 3ene,its

!eat2 3ene,it/ The 5um assured plus all "ested #uaranteed

additions and !onuses is paya!le in a lump sum upon the death of the life assured durin# the policy term irrespecti"e of the 5ur"i"al Benefit paid earlier.
SurvivalAMaturit+ 3ene,it/ The percenta#e of 5um Assured as

mentioned !elow will !e paid on sur"i"al to the end of specified durations/ K of 5A paid on sur"i"al to the end of specifies duration $uration Policy Term 1B years 2= years B 2=K 2=K 1= 2=K 2=K 1B ?=K 2=K 2= 0 .=K
)emale Criti al Illness 3ene,it / An amount e*ual to the Basic

5um Assured (with a limit of >s.2 lakhs) is paid on dia#nosis of any of the specified critical illnesses.
C%n"enital !isa$ilit+ 3ene,it/ An amount e*ual to B=K of the

5um Assured (su!ject to a ma7imum of >s.1 Lakh) will !e paid on the !irth' durin# the policy term' of a child with any of the specified con#enital disa!ilities. This !enefit will !e a"aila!le for two children. The co"er will !e pro"ided where a#e at entry of life assured is 3B years or !elow' and will !e a"aila!le till the life assured attains .= years of a#e.
Su44lementar+AEEtra 3ene,its/ These are the optional !enefits

that can !e added to your !asic plan for e7tra protection:option. An additional premium is re*uired to !e paid for !enefits.

Money Back Policy

Surren*er 6alue/ Buyin# a life insurance contract is a lon#0term

commitment. 6owe"er' surrender "alue are a"aila!le under the plan on earlier termination of the contract.
:uarantee* Surren*er 6alue/ The policy may !e surrendered

after is has !een in force for 3 years or more. The #uaranteed surrender "alue is 3=K of the !asic premiums paid e7cludin# the first year,s premium' any e7tra premiums and premiums towards Accident Benefit' 9emale $isa!ility Benefit.
C%m4an+@s 4%li + %n surren*ers / In practice' the company will

ritical Illness Benefit and

on#enital

pay a 5pecial 5urrender Jalue & which is e*ual to or more than the %uaranteed 5urrender Jalue. The !enefit paya!le on surrender reflects the discounted "alue of the reduced claim amount that would !e paya!le on death or at maturity. This "alue will depend on the duration for which premiums ha"e !een paid and the policy duration at the date of surrender. In some circumstances' in case of termination of the policy' the surrender "alue paya!le may !e less than the total premium paid. The orporation,s surrender "alue will !e re"iewed from time to time and may chan#e dependin# on the economic en"ironment' our e7perience and other factors. N%te/ The above is the product summary giving the key features of the plan. This is for illustrative purposes only. This does not represent a contract and for details please refer to your policy document.

Money Back Policy

D5

9eevan Re=2a ;N%# Cl%se* ,%r Sale<

-r%*u t summar+/ This is a Money Back -hole Life plan. It pro"ides financial protection a#ainst death throu#hout the lifetime with re#ular flow of sur"i"al !enefits at fi"e yearly inter"als. )eatures
-remium/

Premiums are paya!le yearly' half0yearly' *uarterly' monthly or throu#h salary deduction' as opted !y you. The premium payin# terms a"aila!le are B' 1=' 1B' 2=' 2B years or for life. Alternati"ely' the premium may !e paid in one lump sum.
3%nuses/

This is a with0profit plan and participates in the profits of the orporation,s life insurance !usiness. It #ets a share of the profits in the form of !onuses. 5imple >e"ersionary Bonuses are declared per thousand 5um Assured annually at the end of each financial year. ;nce declared' they form part of the #uaranteed !enefits of the plan. A 9inal (Additional) Bonus may also !e paya!le pro"ided the policy has run for certain minimum period. 3ene,its 5ur"i"al Benefits/ 1=K of the Basic 5um Assured will !e paid throu#hout your lifetime after e"ery B years. 9irst such payment will !e paid after fi"e years from the date of commencement.

Money Back Policy $eath Benefit/ The 5um Assured alon# with all "ested !onuses is paya!le in a lump sum upon the death of the life assured' whene"er it occurs. 5upplementary:47tra Benefits/ These are the optional !enefits that can !e added to your !asic plan for e7tra protection:option. An additional premium is re*uired to !e paid. 5urrender Jalue/ Buyin# a life insurance contract is lon#0term commitment. 6owe"er' surrender "alues are a"aila!le on the plan on earlier termination of the contract. %uaranteed 5urrender Jalue/ The policy may !e surrendered after it has !een in force for 3 years or more. The #uaranteed surrender "alue is 3=K of the !asic premiums paid e7cludin# the first year,s premium. In case of a sin#le premium policy the #uaranteed surrender "alue is @=K of the sin#le premium paid. orporation,s policy on surrenders/ In practice' the orporation will

pay a 5pecial 5urrender Jalue & which is either e*ual to or more than the %uaranteed 5urrender Jalue. The !enefit paya!le on surrender reflects the discounted "alue of the reduced claim amount that would !e paya!le on death. This "alue will depend on the duration for which premiums ha"e !een paid and the policy duration at the date of surrender. In some circumstances' in case of early termination of the policy' the surrender "alues paya!le may !e less than the total premium paid. The orporation re"iews the surrender "alue paya!le under its plans from time to time dependin# on the economic en"ironment' e7perience and other factors.

Money Back Policy N%te/ The above is the product summary giving the key features of the plan. This is for illustrative purpose only. This does not represent a contract and for details please refer to your policy document. Statut%r+ #arnin"/ 5ome !enefits are #uaranteed and some !enefits are "aria!le with returns !ased on the future performance of your insurer carryin# on life insurance !usiness. If your policy offers #uaranteed returns then these will !e clearly marked #uaranteed in the illustration ta!le on this pa#e. If your policy offers "aria!le returns then the illustrations on this pa#e will show two different rates of assumed future in"estment returns. These assumed rates of return are not #uaranteed and they are not upper or lower limits of what you mi#ht #et !ack as the "alue of your policy is dependent on a num!er of factors includin# future in"estment performance. Illustrati%n/ A#e at entry/ = years' Premium Payin# Term/ 1A years' Policy term/ 2? years' 5um Assured/ >s. 1' =='===:0' Annual Premium/ >s. C'2A1:0.

Money Back Policy 4nd Total of premiums year paid till end of year 1 A'.AA 2 1?'@C? 3 2B'.?. . 33'@B2 B .2'..= ? B='@2A C B@'.1? A ?C'@=. @ C?'3@2 1= A.'AA= 1B 1'2C'32= 2= 1'?@'C?= 2B 2'12'2== 3= 2'12'2== i) The Benefit on $eath durin# the year (>s.) Jaria!le Total %uaranteed 5cenario 5cenario 5cenario 5cenario 1 2 1 2 = 2'=='=== = 2'=='=== = 2'=='=== = 2'=='=== 2==== 2'=='=== = 2'=='=== = 2'=='=== = 2'=='=== = 2'=='=== 2==== 2'=='=== 2==== 2'=='=== 2==== 2'=='=== 2==== 2'=='=== 2==== 2'=='=== a!o"e 2'A== B'?== A'.== 11'2== 1.'=== 1?'A== 1@'?== 22'.== 2B'2== 2A'=== .2'=== C2'=== @='=== 1'=A'=== 1B'A== 31'?== .C'.== ?3'2== C@'=== @.'A== 1'1='?== 1'2?'.== 1'.2'2== 1'BA'=== 2'3C'=== .'2='=== B'2B'=== ?'3='=== C3@A= C3@A= C3@A= C3@A= C3@A= C3@A= 1.B=== 1B2B== 1?==== 1?CB== 2=B=== 2.2B== 2ACB== 3'=A'=== C3@A= C3@A= C3@A= C3@A= C3@A= C3@A= 1BC=== 1?AB== 1A1=== 1@3B== 2C2=== 3C=B== B?.B== A'3='===

illustration is

applica!le to a

non0smoker

male:female standard (from medical' life style and occupation point of "iew) file. ii) The non0#uaranteed !enefits (1) and (2) in a!o"e illustration are calculated so that they are consistent with the Projected In"estment >ate of >eturn assumption of ?K p.a. (5cenario 1) and 1=K p.a. (5cenario 2) respecti"ely. In other words' in preparin# this !enefit illustration' it is assumed that the Projected In"estment >ate of >eturn that LI will !e a!le to earn throu#hout the term of the policy will !e ?K p.a. or 1=K p.a.' as the case may !e. The projected In"estment rate of return is not #uaranteed.

Money Back Policy iii) The main o!jecti"e of the illustration is that the client is a!le to appreciate the features of the product and the flow of !enefits in different circumstances with some le"el of *uantification. i") 9uture !onus will depend on future profits and as such is not #uaranteed. 6owe"er' once !onus is declared in any year and added to the policy' the !onus so added is #uaranteed. ") The flow of !enefits' in a!o"e illustrations' ha"e !een shown for first 3= years. In practice' the !enefits will continue so lon# the policyholder sur"i"es.

Money Back Policy

DI5
)eatures

M%ne+ 3a = #it2 -r%,it

8nlike ordinary endowment insurance plans where the sur"i"al !enefits are paya!le only at the end of the endowment period' this scheme pro"ides for periodic payments of partial sur"i"al !enefits as follows durin# the term of the policy' of course so lon# as the policy holder is ali"e. In the case of a 2=0year Money0Back Policy' 2=K of the sum assured !ecomes paya!le each after B' 1=' 1B and 2= years' and the !alance of .=K plus the accrued !onus !ecome paya!le at the 2= th year. 9or a Money0Back Policy of 2B years 1BK of the sum assured !ecomes paya!le each after B'1='1B and 2= years' and the !alance .=K plus the accrued !onus !ecome paya!le at the 2B th year. An important feature of this type of policies is that in the e"ent of death at any time within the policy term' he death claim comprises full sum assured without deductin# any of the sur"i"al !enefit amounts' which ha"e already !een paid. 5imilarly' the !onus is also calculated on the full sum assured.

Money Back Policy

XII.

3ima 3a 2at

3ene,its &2at is 3ima 3a 2at> LI ,s Bima Bachat is a money0!ack policy which offers financial security and assurance to the policy holder and his family. Bima Bachat re*uires the policy holder to pay only one premium. The amount paid for the premium depends on the duration of the policy taken and life insurance is a"aila!le till the date of maturity. &2at %t2er $ene,its *% I re eive *urin" t2e s4e i,ie* *urati%n %, t2e 4%li +>

9or a term of @ years/ The policy holder will recei"e 1BK of the sum assured at the end of e"ery 3rd and ?th policy year.

9or a term 12 years/ The policy holder will recei"e 1BK of the sum assured at the end of e"ery 3rd' ?th and @th policy year.

Money Back Policy

9or a term 1B years/ The policy holder will recei"e1BK of the sum assured at the end of e"ery 3rd' ?th' @th and 12th policy year. &2at a**iti%nal $ene,its *% I "et u4%n maturit+> If the policy holder outli"es the duration of the policy' at the time of maturity' a sin#le premium payment (e7cludin# e7tra premium) is made alon# with loyalty additions' if any. '%# mu 2 insuran e *% I "et> The policy holder is insured for an amount e*ual to the sum assured.

&2at a$%ut t2e installment re eive* alrea*+> The insurance co"er is irrespecti"e of the installments recei"ed. &2en am I eli"i$le ,%r t2e "uarantee* surren*er value> The #uaranteed surrender "alue is a"aila!le only after completion of at least one policy year. This "alue is e*ual to @= K of the sin#le premium paid (e7cludin# e7tra premium).

Money Back Policy &2at %t2er $ene,its *%es t2is insuran e %ver %,,er> Bima Bachat is the only money0!ack policy that offers a loan facility. The rate of interest for this will !e determined from time to time !y the corporation. Presently the rate of interest is @K p.a. paya!le half0yearly. It also offers other !enefits like the 1B day coolin# off period' #race period and re"i"al. &2% is eli"i$le ,%r t2e 4%li +> Are t2ere %t2er %n*iti%ns %r restri ti%ns> The followin# are the re*uirements that one needs to !e aware of !efore applyin# for this policy/ The person applyin# for the policy should ha"e completed 1B years and should not !e older than ?? years. O The policy will mature when the person is CB years old. O There is a choice of three terms to choose from (@' 12 and 1B years) for the policy dependin# on the a#e and re*uirement of the applicant. O The minimum sum that needs to !e assured is >s 2='===:0 and there is no limit on the amount that can !e assured. O It is important to note that the sum assured should !e in multiples of >s B===:0 only. O The policy re*uires the holder to pay a sin#le premium.

Money Back Policy -remium -a+ment Sin"le -remium The sample premium rates are as under/ 0 A#e 1B 2= 2B 3= 3B .= .B B= BB ?= ?B Annual Premium per 1=== 5A @ 12 C1?..= CC1.3B C1C.2= CC1.AB C1C.BB CC2.2B C1A..B CC3.3B C21.=B CCB.CB C2B.A= CA=.2B C3..1= CAC.?= C.?.?= C@C.@= C?2.?B A11.@B CA..A= A31.3= A1?.2B 0

1B A=..== A=...= A=..@B A=?.1= A=A.BB A12.@B A1@.?= A2A.@B A.1.CB AB@.3B 0

Money Back Policy

&2at in entives *% I "et ,%r a 2i"2er sum assure*> Let,s take an e7ample of a 3= year old with a Bima Bachat policy for 12 years. If the sum assured is >s .B'=== then he has to pay a premium of >s 3.A==.CB. But for a sum assured amount of >s B='=== he will ha"e to pay a premium of >s 3?C3..13 only' thus #ettin# a BK re!ate in premium. >efer to the ta!le !elow for other re!ate percenta#es/ Less than >s. B='=== EIL >s. B='=== and Less than BK >s.1 lakh >s. 1 lakh and Less than CK >s.2 lakh >s. 2 lakh and a!o"e AK N%tes/ i) The a!o"e e7amples are applica!le to a Pstandard non0smoker male:female (Pmedical condition' lifestyle and occupation) ii) PThe non0#uaranteed !enefits (1) and (2) in a!o"e illustration are calculated so that they are consistent with the Projected In"estment >ate of >eturn assumption of ?K p.a.(5cenario 1) and 1=K p.a.

Money Back Policy (5cenario 2) respecti"ely. In other words' in preparin# this !enefit illustration' it is assumed that the Projected In"estment >ate of >eturn that LI will !e a!le to earn throu#hout the term of the policy will !e ?K p.a. or 1=K p.a.' as the case may !e. The Projected In"estment >ate of >eturn is not #uaranteed. iii) The main o!jecti"e of the e7ample is that the client is a!le to appreciate the features of the product and the flow of !enefits in different circumstances with some le"el of *uantification.

The maturity !enefit is the amount shown at the end of the policy term. Statut%r+ #arnin"/ 5ome !enefits are #uaranteed and some !enefits are "aria!le with returns !ased on the future performance of your Insurer carryin# on life insurance !usiness. If your policy offers #uaranteed returns then these will !e clearly marked #uaranteed in the illustration ta!le on this pa#e. If your policy offers "aria!le returns then the illustrations on this pa#e will show two different rates of assumed future in"estment returns. These assumed rates of return are not #uaranteed and they are not the upper or lower limits of what you mi#ht #et !ack' as the "alue of your policy is dependent on a num!er of factors includin# future in"estment 47tract from performance. section .1 of the insurance act/

(1) Eo person shall allow or offer to allow' either directly or indirectly' as an inducement to any person to take out or renew or continue an insurance in respect of any kind of risk relatin# to li"es or property in India' any re!ate of the whole or part of the commission paya!le or any re!ate of the premium shown on the policy nor shall any person takin# out or renewin# or continuin# a policy accept any re!ate e7cept

Money Back Policy such re!ates as may !e allowed in accordance with the pu!lished prospectuses or ta!les of the insurer / pro"ided that acceptance !y an insurance a#ent of commission in connection with a policy of life insurance takin# out !y himself on his own life shall not !e deemed to !e acceptance the insurance a#ent satisfies the prescri!ed conditions esta!lishin# that he is a !ona fide insurance a#ent employed !y the insurer. (2) Any person makin# default in complyin# with the pro"isions of this 5ection shall !e punisha!le with a fine which may e7tend to >s.B== : 0 Eote/ !onditions apply" for #hich please refer to the policy document or contact our nearest branch office.

Money Back Policy

CHAPTER 5
#O(#+*.IO(
Life Insurance ompany,s are e7pected to !e meticulous with the risk

classification as they deal with pu!lic monies. The underwritin# tools play a pi"otal role in placin# the risks appropriate. The main risks that are premature death' disa!ility and are e7cessi"e lon#e"ity. These risks may ruin an indi"idual as well as hi:her dependents economically !y causin# the stoppa#e of re#ular income. 5uch a state is referred to as 4conomic $eath of an indi"idual. Protection throu#h insurance may sa"e an indi"idual and his family from such an economic death. The concept of insurance is !ased on three principles economic' le#al and actuarial:mathematical. Accordin# to the economic principle' the loss suffered !y an indi"idual is shared !y a lar#er #roup who are facin# the similar type of risk. The le#al principle restricts the mem!ers of the risk pool to enjoy the !enefit of ha"in# insurance co"era#e without "iolatin# the laws of the land. The actuarial:mathematical principle ena!les a life insurer to estimate the premium to !e paid !y each mem!er in order to #et the re*uired le"el of protection on the !asis of the risk class to which an indi"idual !elon#s.

Money Back Policy

BIB+IO5RAP$0
Books and Ma6a7ine
1. 2. IE58>AE 4 -AT 6 MA%AQIE4 IE$IAE 9IEAE IAL 5D5T4M 0 B6A>TI.J.PAT6AI 0 $r. %. >AM456 BAB8 3. Mr. Iailash Bindal (Insurance A#ent LI )

4.

WEBSITE/

1. www.licindia.com 2. www.#oo#le.com