LIFE INSURANCE PRODUCTS

– TERM, ENDOWMENT AND WHOLE LIFE POLICIES

MBA/4106 – INSURANCE
MANAGEMENT
UNIT – 1II
Dr. H. M. Jha “Bidyarthi”
Professor and Head
Department of Business Administration and Research
Shri Sant Gajanan Maharaj College of Engineering, Shegaon
Email: hmjhabidyarthi@rediffmail.com
 COURSE OUTCOME

Understand and Design Life

Insurance Product
Recap
 COVERAGE

 TERM LIFE POLICIES – CONCEPT AND TYPES

 WHOLE LIFE POLICIES – CONCEPT AND TYPES
 ENDOWMENT INSURANCE POLICIES –
CONCEPT AND TYPES
 TERM LIFE POLICY - CONCEPT
 Simplest and cheapest form of life insurance policy
 Life insurance protection for selected term – period of
years only
 Benefits are payable under policy in case the insured
dies during the term
 In case of survival of insured policy normally expires
without any benefit payable
 Comparable with `Property & Casualty insurance
 Premium is relatively low
 TERM LIFE POLICY - TYPES
 Convertibility – without medical examination
 Renewability – without medical examination
 Re-entry Option – with medical examination
 Terminal illness benefit
 Level benefit term insurance
 Level premium
 Increasing (stepped) premium
 TERM LIFE POLICY - TYPES
 Decreasing benefit term insurance
 Mortgage redemption
 Payer benefit rider
 Increasing benefit term insurance
 Constant growth
 Index linked
 WHOLE LIFE POLICY - CONCEPT
 Life insurance protection over the life time
 Payment of assured sum is certainty
 Payment of assured sum on death regardless
of when it occurs
 Time of payment of assured sum is uncertain
 WHOLE LIFE POLICY - TYPES
 Participating type policy
 Non-participating type policy
 Ordinary whole life insurance
 Limited payment whole life insurance
 Convertible whole life insurance
 Increasing whole life insurance
 Special provision policy
ENDOWMENT INSURANCE POLICY - CONCEPT

 Primarily to provide living benefit

 Secondarily to provide life insurance
 More of an investment than a life policy
 Payment of face value of policy on attaining
certain age or after a number of years of
premium payment
 A method of accumulating capital for special
purpose – anticipated financial needs
 For protecting the savings programme
ENDOWMENT INSURANCE POLICY - TYPES

 Pure endowment
 Joint endowment
 Marriage endowment
 Education endowment
 Money back plans
 Endowment policy with profit
 Endowment policy without profit
SUMMARY
?