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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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