PRESENTED BY

y SIDDHI BHAMANI y ASHISH CHOPRA y PURAV DEDHIA

04 06 08

What is Insurance?

Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment.

What is Life Insurance?

y Life insurance is a contract

that pays a beneficiary in the event of your death as long as the policy is in effect.

y Life insurance is something you

buy for those people you leave behind. Life insurance covers your expenses such as funeral and medical bills. You may also need to leave financial support to your family.

HISTORY
Some of the important milestones in the life insurance business in India are: y 1818: Oriental Life Insurance Company, the first life insurance company on Indian soil started functioning.
y

1870: Bombay Mutual Life Assurance Society, the first Indian life insurance company started its business. 1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. 1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses. 1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public. 1956: 245 Indian and foreign insurers and provident societies are taken over by the central government and nationalised. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Government of India.

Advantages of Life Insurance

Risk Cover Planning for life stage needs Protection against rising health expenses Builds the habit of thrift Safe and profitable long-term investment Assured income through annuities Protection plus savings over a long Growth through dividends Facility of loans without affecting the policy benefits y Tax Benefits y Mortgage Redemption
y y y y y y y y y

Disadvantages of Life Insurance

y Expensive y No benefit in case of long life y Increasing premiums y Irrelevant in case of no-family person

Insurance terminology you should know

y Bound y Insurer y Insured y Insurance Rider/Endorsement y Insurance Umbrella Policy y Insurable Interest

Types of Life Insurance

Basically there are 2 types of life insurance:
 TERM LIFE INSURANCE  PERMANENT LIFE INSURANCE

TERM LIFE INSURANCE

y Term Insurance The most basic and least expensive

type of life insurance. You buy coverage for a certain amount of time, such as 10, 15, 20 or 30 years. If you die before the term is over, your beneficiary gets the benefit stated in your policy. If you live beyond the term, the policy expires.

y Therefore, if you purchase a 30 year term policy at the

age of 20 you will not have any life insurance beyond the age of 50

PERMANENT LIFE INSURANCE

y Whole Life Policy y Endowment policies y Money back policies y Annuity / Pension Policies / Funds y Universal life coverage

Players in Indian market

Future of the Sector

y Indian insurance sector is likely to register

unprecedented growth of 200% and attain a size of Rs. 2000 billion by 2009-10 y A private sector insurance business will achieve a growth rate of 140% as a result of aggressive marketing technique being adopted by them against 35-40% growth rate of state owned insurance companies. y In rural markets, the share of private insurance players would increase substantially as these have been able to generate a faith among their rural consumers.

Insurance Sector - Emerging Areas

y Demand for Pension Plans y Separateness of Banking and Insurance y Role of Information Technology y Innovative Products y Creating Insurance awareness y Using Postal Network

Conclusion
y In life we don't appreciate things like Health,

small moments of happiness, nature, time spend with our family which are most wonderful and real things in life.

y Life Insurance is one of the similar things in

personal finance domain.

y You just need to shift your focus of view from

"what you are losing" to "what you are gaining" , once you do this with Term Insurance your Life will become wonderful