1.

Introduction Insurance Requirement

Insurance plan for five different individuals is going to be prepared in accordance
with financial needs, financial risk, and Individual Income Capabilities.

(a) Mr. Shaswat is only income earner in the family of four Members. His annual
income is 10 lakh rupees. he is 35 years old age individual he is only one in the
family who earn income he has two younger children he has to take burden of
family to manage all financial expenses needs of family as well as The
education of the children .

Financial needs of MR Shaswat

Financial needs of MR Shaswat is to cover the family expenses, mortgage
related expenses, loans, Education related expenses of the children and to
maintain living standard of the family.
As MR Shaswat is only Income Earner in the family, he needs to take care
of financial needs of family as well as Education expenses of the children.

Financial Security

Talking about the financial security MR Shaswat need specific policy that can
secure the future of his family in uncertainty in case he has passed way that can
give protection to the financial needs of the family as well as children education
expenses & other expenses .

Mr. shaswat is 35 years old his annual income is 10 lakh rupees with in the fund he
have to cover the expenses for the whole year of the family as well as he has to
pay mortgage interest thus to manage the financial uncertainty of MR shaswat
family He should go for Term life insurance policy .
 Risk Analysis

MR shaswat is the sole income owner of the family overall the Expenses of the
family is dependent upon his income thus in case uncertain things happen like
death of MR shaswat then family will be in much trouble so to safeguard the
Financial needs and to secured it from the uncertainties in the future he needs a
better life insurance policy .

Suggested policy ( Term life insurance policy) .

By analyzing the age annual income and family condition of MR Shaswat the best
suited policy for MR shaswat is Term life insurance Policy. The premium of this
Policy is Rs 1913 & this policy cover for 85 years the sum assure or life cover
of this policy is Rs 1crore .

The policy has been covered for the 85 years age of the policy holder the premium
has to be paid for 63 years total premium will be RS14,46,228 and total sum
assured will be RS 1 crore . Annually policyholder have to pay Rs 22956 (Twenty
two thousand nine hundred and fifty six rupees)
Term life insurance guarantees payment of stated death benefit if the covered
person dies during the a specified term Once the term expires, the policyholder can
either renew it for another term, convert the policy to permanent coverage, or allow
the policy to terminate .

Term life insurance policy covers Financial Security related to family expenses,
children education , loans ,etc. after the Expiry of the policyholder . Term life
insurance guarantees payment of a stated death benefit to the insured's
beneficiaries if the insured person dies during a specified term.

Calculation of the Sum Assured for MR Shaswat

According to MR Shaswat total monthly expenses covering food , expenses ,

entertainment , transportation education of the children, Medical expenses is
around RS 60000 his monthly income is Rs 83000 so he is left with Rs 23000 as
a result he can opt for the term insurance policy which covers Sum Assured of Rs
1 crore by paying Rs1913 as a premium .

Benefit Analysis of term insurance policy .

 Term insurance is usually a better choice for people who are younger and
have a family it allows them to purchase higher levels of coverage with more
benefits.
 Term life insurance provide greatest greatest death benefit for lower
premium compared to the other policies.
 Term life insurance is more flexible Policies also come in 10-, 15-, 20- and
30-year terms. If, for example, you want a policy that would cover your
mortgage and your children’s college tuition, a 30-year policy might be a
good match.

 Term life insurance is easy to understand, which makes it simple to shop

around and compare rates. You need to make only three main decisions:
coverage amount, length of term and preferred company. As long as you pay
the premium, you’re covered for the duration of the policy.
  Term life insurance policy provides significant benefit for the family
members as this policy provide income security to the family members in
case of death of major income Earning hand.
 Term life insurance is attractive to young people with children. parents may
obtain large amounts of coverage for reasonably low costs. upon the death of
parent, the significant benefit can replace lost income.

2 . MR Rahul is a businessman he is the owner of the juice factory He is 40years

old individual having annual income of 20 lakhs. he has the family and the source
of income to manage the expenses of the family is from the business only thus to
manage the Uncertainty in the future MR Rahul has purchased Property Insurance
policy .

It is especially Important for small business owners to carefully consider and

evaluate their business insurance needs as they have more financial exposure in the
event of a loss

Financial needs of MR Rahul

Financial needs of MR Rahul is to cover the business risk of property or we can

say the assets of the company. Business insurance coverage protects businesses
from losses due to events that may occur during the normal course of business.

That is the reason he purchased property insurance policy that keeps away from
uncertainties in the business during the normal courses in the business.

Financial Security

Property insurance is a type of insurance policy that provides financial

reimbursement to the owner of the property in the event of damage or theft this
policy provides protection against most risks to property such as theft , fire ,
weather damage , Accident Etc. so MR Rahul prefer this policy as this policy
covers all his financial risk agent .

Risk Analysis

MR Rahul owns a juice factory so his business is exposed to various

uncertainties or risk like damage of the property, theft , Accident , breakdown of
the machines , weather damage Etc. So to safeguard property of the business and
various Uncertainties of the businesses in the future MR Rahul has purchased
Property insurance.

Property Insurance Policy

MR Rahul has purchased Property insurance policy to Safeguard the business

property from uncertainties in the future as this policy covers risk like damage of
the property , theft , Accident , breakdown of the machines , weather damages Etc.

The turnover Annual income from his business is 20 lakh rupees His purchased
Property Insurance policy for 10 years and the monthly Premium amount is RS
4500 and the sum assured is RS 1 Crore .

Calculation of the Sum Assured for MR Rahul

Rahul total assets worth is Rs 2 crore however he has taken loan of 50 lakh rupees
@ interest rate of 8% from the bank for 5 years so he has to pay = loan amount +
interest amount = 50lakh +20lakh = 70 lakh Thus sum assured amount is Rs 1
crore .

Benefit Analysis

 Property insurance covers perils associated with assets of the business thus it
provides sense of security to the owner.
 Property Insurance is known called as umbrella Insurance policy as it covers
risk associated with various things like Property insurance includes
homeowners insurance, renters insurance, flood insurance, and earthquake
insurance.
3 . MR Sachin is Only Income in the family he works in a bank He is 40 years
old individual having one spouse & a daughter. his annual income is Rs 10 lakhs.
he is also the patient of diabetes, high Blood pressure, obesity.

He is also concerned about the corona virus expenses and family members health
related Expenses

Financial needs

 Financial needs of MR Rahul is to cover all the Expenses related health

issue of the himself , family as well as Covid related Expenses in case If any
member suffer from the virus . Hospitalization expenses etc..

Financial Security

After by analyzing the financial needs of Mr. sachin he wants the policy that
would fulfill all the health related expenses of the family as well as himself .as
medical expenses are so costly and it will be burden for Mr. sachin to manage all
the expenses .

Risk Analysis

MR sachin has health related issues like diabetes , high BP And he is also worried
about his family as Medical Expenses Will be costly so risk associated with him is
related to Medical Expenses of the family which will be real burden for him to pay
from his pocket & also his risk is related to the corona burden incase if any family
members suffer from it he has to manage a lot of expenses for that .
 Suggested Policy ( Family health insurance )

By analyzing the financial needs , risk and the condition of the family the best
suited policy for him and his family is health insurance policy This policy covers
medical expenses of the family to the total amount & as well as this policy also
covers covid related expenses in case any members of the family suffered from the
virus all the expenses is covered by the insurance company .

The Assured is Rs 1 crore and the annual premium is RS 18000 and the policy
period is 1 year .

Riders

 Room rent Waiver.

 Maternity Cover.
 Hospital Cash
 Critical Illness cover
 Personal Accident cover
Calculation of the Sum assured

MR Sachin has the annual income of the Rs 10 lakh his family expenses is about
4lakhs Rupees as his is diabetic patient his medicine expenses are RS 60 thousand
annually he have other expenses which is 2 lakh annually thus he is able to pay
the premium amount annually which is 18000. Thus the sum assured is Rs 1 crore

Benefit Analysis

 It provides Coverage in the medical expenses Health insurance plans offer

protection against high Medical Expenses, hospitalization Expenses, day
care products.

 It provides Coverage against Critical Illness against life – threatening

diseases such as kidney failure, stroke Etc. The policy amount may be used
to meet your illness- related treatment costs, daily expenses and any other
financial obligations.

 Health insurance plans provide tax benefits premium paid towards health
policy are Eligible for tax deductions under Section 80D of the Income Tax
Act ,1961.

 Health insurance Reduces the financial burden for the expensive medical
expenses and hence reduce inconveniency regarding monetary expenses.
4 . MR Aditya is 40 years old individual he is the sole income Earner in the family
he has to manage all the family Expenses , Education Expenses of the children
Thus to Manage All the financial related Uncertainties and to fulfill the Demands
and needs of the family he has Purchased Endowment policy (Ulip) Policy Unit –
Linked Insurance Policy .

Financial needs

Financial needs of the MR Aditya is to cover the Major Expenses of the family
like Education expenses of the children, retirement funding , Marriage Expenses of
the children Etc. .thus to manage the financial needs of the family MR Aditya has
purchased ULIP Policy .

Financial Security

MR Aditya has purchased the ULIP Policy to secured the Financial needs of the
family and to get Appropriate rate of return in the future by investing some amount
of the premium in the investment plan to secured and to cover the major expenses
of the family in the future .

Risk Analysis

Talking about the risk or assessing risk of MR Aditya He wants to mitigate future
risk of financial hurdles as a result he bought ULIP Policy. It is the combination of
insurance + Investment .A Small portion of the money invested goes to securing
life of the individual whereas the rest of the money is invested in the market
which covers risk of life as well as future return on investment .
 Benefit Analysis .

 Flexible investment options. ULIPs offer a whole host of high, medium

and low-risk investment options via different fund available under the same
plan .
 Tax Benefits : The investment made in the ulips is eligible for deduction
under section 80 (c) , the returns from the policy are exempt from taxation
on maturity unders section 10 D

 Switching : Ulips gives you the liberty to switch between equity ,debt or
mutual funds during the tenure of ULIP Plan to suit your requirements .

(b) 5 . MR Krishna Is 35 years old young individual &he is only income earner
in the family of four Members. His annual income is 10 lakh rupees. he is only
one in the family who earn income he has two younger children he has to take
burden of family to manage all financial expenses needs of family as well as the
education of the children .

Financial needs of MR Krishna

Financial needs of MR Krishna are to cover the family expenses, mortgage

related expenses, loans, Education related expenses of the children and to
maintain living standard of the family.
As MR Krishna is only Income Earner in the family, he needs to take care of
financial needs of family as well as Education expenses of the children.
Financial Security

MR Krishna specific policy specific policy that can secure the future of his family
in uncertainty in case he has passed way that can give protection to the financial
needs of the family as well as children education expenses & other expenses .

Mr. Krishna is 35 years old his annual income is 10 lakh rupees with in the fund
he have to cover the expenses for the whole year of the family as well as he has to
pay mortgage interest thus to manage the financial uncertainty of MR Krishna
family He should go for Term life insurance policy .

Risk Analysis

MR Krishna is the sole income owner of the family overall the Expenses of the
family is dependent upon his income and also the children expenses . thus, in case
uncertain things happen like death of MR Krishna then family will be in much
trouble so to safeguard the Financial needs and to secured it from the uncertainties
in the future he needs a better life insurance policy

Suggested policy ( Term life insurance policy) .

 By analyzing the age annual income and family condition of MR Shaswat the best
suited policy for MR shaswat is Term life insurance Policy. The premium of this
Policy is Rs 1500 & this policy cover for 65 years the sum assure or life cover
of this policy is Rs 1crore .

The policy has been covered for the 85 years age of the policy holder the premium
has to be paid for 30 years total premium will be RS14,46,228 and total sum
assured will be RS 1 crore . Annually policyholder have to pay Rs 22956 (Twenty
two thousand nine hundred and fifty six rupees)

Term life insurance guarantees payment of stated death benefit if the covered
person dies during the a specified term Once the term expires, the policyholder can
either renew it for another term, convert the policy to permanent coverage, or allow
the policy to terminate .

Term life insurance policy covers Financial Security related to family expenses,
children education , loans ,etc. after the Expiry of the policyholder . Term life
insurance guarantees payment of a stated death benefit to the insured's
beneficiaries if the insured person dies during a specified term.

Calculation of the Sum Assured for MR Krishna

According to MR Krishna total monthly expenses covering food , expenses ,

entertainment , transportation education of the children, Medical expenses is
around RS 60000 his monthly income is Rs 83000 so he is left with Rs 23000 as
a result he can opt for the term insurance policy which covers Sum Assured of Rs
1 crore by paying Rs1500s as a premium .
Benefit Analysis of term insurance policy .

 Term insurance is usually a better choice for people who are younger and
have a family it allows them to purchase higher levels of coverage with more
benefits.
 Term life insurance provide greatest death benefit for lower premium
compared to the other policies.
 Term life insurance is more flexible Policies also come in 10-, 15-, 20- and
30-year terms. If, for example, you want a policy that would cover your
mortgage and your children’s college tuition, a 30-year policy might be a
good match.

 Term life insurance is easy to understand, which makes it simple to shop

around and compare rates. You need to make only three main decisions:
coverage amount, length of term and preferred company. As long as you pay
the premium, you’re covered for the duration of the policy.

 Term life insurance policy provides significant benefit for the family
members as this policy provide income security to the family members in
case of death of major income Earning hand.
 Term life insurance is attractive to young people with children. parents may
obtain large amounts of coverage for reasonably low costs. upon the death of
parent, the significant benefit can replace lost income.