comparision of whole life policies

FINANCIAL PLANNING

Comparative Analysis of Whole Life Policies (Private Sector)

ICICI Prudential Life Insurance Age-30 yrs.Sum assured 50,000,00Premium Payment term- 20 years Annual premium- Rs.8,933 (inclusive of taxes & cess) ICICI Pru Whole Life, a life insurance plan, provides you with a unique combination of savings and protection.

The annual premium is inclusive of accidental death cover, which allows the nominee to receive a sum of Rs. 1,00,00,000. in case of accidental death. Min/Max age at end of premium paying term 30/70 years Premium can be paid yearly, half yearly or monthly; with a 15 day grace period for monthly and 30 day grace period for yearly and half yearly mode Advantages Savings benefit: We are entitled to the chosen Sum Assured and all the bonuses declared, if any, at the end of the premium paying term.Life cover benefit: In case of your untimely demise during your premium paying years, your family would receive twice the Sum Assured along with all bonuses.Whole life cover benefit: You are also entitled to an additional Sum Assured payable in case death occurs after the completion of the premium paying term or on completion of 100 years of age, whichever is earlier, allowing you to leave a legacy to your dear ones.

Surrender value- Your policy will acquire a Guaranteed Surrender Value on payment of premium for at least 3 policy years which is 35% of the base policy premiums paid, less the first year's premium.

Kotak Mahindra Bank Premium: 6,000 p.a. + Taxes Age-30 yrs. Sum assured 50,000,00 Premium Payment term- 45 years

Entry Age0-65 years (Both Inclusive)

Maturity Age99 Years

Minimum Sum Assured10,00,000

Maximum Sum Assured10,00,00,000

Premium Paying FrequenciesAnnual, Half Year, Quarterly, Monthly

Kotak Eternal Life Plan-Classic Shieldplan ensures a fixed premium that stays level throughout the premium payment term. This helps us plan and manage our finances better, knowing that our premiums will never escalate, regardless of age, health.Death Benefit If the Life Insured dies within the policy tenure, the following is paid as Death Benefit Within the Premium Paying Term, the nominee would receive the Sum Assured + accrued Reversionary Bonus + Terminal Bonus (if any) + Interim Bonus (if any) would be paid as Death Benefit. After the Premium Paying Term, the nominee would receive the Sum Assured + Terminal Bonus (if any) would be paid as Death BenefitSurrender BenefitOn survival till the end of the Premium Paying Term, the vested Simple Reversionary Bonus + Special Terminal Bonus is payable as a Survival Cash BenefitMaturity Benefit On maturity, i.e. if the Life Insured survives till 99 years of age, then the Sum Assured + Terminal Bonus (if any) would be paid to the policyholder as Maturity BenefitIncome Tax Benefit -Life Insurance premiums paid up to Rs. 1,00,000 are allowed as a deduction from the taxable income each year under section 80C.

HDFC Life (Whole Life Insurance Plan)

Age: 30 Years Sum Assured: 50,00,000 Premium Paying Terms: 30 Years Premium Amt.: 6,000+Tax OR 6,742(inclusive of all taxes)

HDFC Life Click2Protect

Entry Age18 Years-55Years (Both Inclusive)

Maturity Age28Years-65Years {Both Inclusive)



Premium Paying FrequenciesAnnual Mode

HDFC Life Click2Protect provides for the payment of a lump sum amount in the event of unfortunate death. This plan provides with the following key benefits: It ensures your family may be secured for at-least 5 to 10 years in case of your unexpected demise. HDFC Life has a Claim Settlement Ratio of 96.56%. No Medicals up to a cover of Rs75 lakhs for a healthy non-smoker male up to 40 years of age. HDFC Bank Credit Card Holders can avail easy EMI options of 3 and 6 months.

Death BenefitOn the unfortunate death during the policy term, the nominee will receive the chosen Sum Assured. This benefit is applicable provided that the participant has paid all the premiums to date. Grace Period: Grace Period of 30 days from the premium due date is available for payment of premiums.

Tax BenefitPremiums paid under this plan are eligible for tax benefits are under section 80C of the Income Tax Act, 1961, subject to provisions contained therein. This plan provides no Maturity Benefit. This plan provides no Surrender Benefit.

Bajaj Allianz

Age: 30 yrs.Sum assured : 50,00,000Premium Payment Term : 20yrsPremium : 4,88,045(Inc. Service Tax & Edu. Cess)Bajaj Allianz Lifelong Assure is a participating individual limited premium whole life endowment plan. The key advantages of this plan are: Cash Bonus starting from the end of 6 year Guaranteed Cash Back starting from the end of Premium Payment Term Life cover up to the age of 100 years Guaranteed Death Benefit of up to 300% of Sum Assured

Survival BenefitYou will start receiving Guaranteed Cash Back of 3% of your Sum Assured every year, from the end of your premium payment term till the age of 99 years (1,50,000).You will be entitled for Cash Bonus declared, if any, starting from the end of 6 policy year till the age of 99 years. (3,00,000) Maturity BenefitYour policy will mature at the age of 100 years. On the maturity date, Maturity Value as mentioned (300% of sum assured) will be paid and the policy will terminate. Death BenefitThe death benefit payable to the nominee shall be as followsi) 10 times annualised premiumii) 105% of total premium paid till date of deathiii) 200%, 250% or 300% of sum assured depending on the PPT chosen. Surrender Policy Policy Surrender Year34 to 2021 to 2526 to 3031 to 3536 to 4041 onwards

Proportion of the premiums paid till date30% 50%52%53%56%60%65%

Canara HSBC Life

Age: 30 Years Sum Assured: 50,00,000 Premium Paying Terms: 30 Years Premium Amt.: Rs. 4,299(inclusive of all taxes)

Entry Age31 days

Minimum Maturity Age99 years



Premium Paying FrequenciesAnnually/Semi-Annually/ Quarterly/Monthly

Canara HSBC Life Unit Linked Whole Life Plan is an investment cum protection Plan. This plan provides with the following key benefits:

Comparative AnalysisParticularsBajaj AllianzHDFC LifeICICI PruCanara-HSBCKotak Mahindra

Premium (Amount Inclusive Taxes )Rs. 4,88,045Rs.6742Rs.8933Rs. 51,588Rs.6742

Premium Paying Terms20 Years30 Years20 Years30 Years45 Years

Cover Up to (Age)100 Years65 Years OR PPT (whichever is earlier)100 Years99 years99 Years

Maturity Benefit 300% Sum AssuredNo Maturity Benefit100% Sum Assured + BonusFund Value+ Top up premiums (if any) 100% Sum Assured + Bonus

Death Benefit 300% Sum Assured100% Sum Assured200% Sum AssuredFund Value or Sum assured whichever is higherSum Assured +Reversionary Bonus+ Terminal Bonus+ Interim Bonus

Grace Period-30 Days15/30 Days31 days15/30 Days

Surrender Benefit YesNoYesYesYes

Tax BenefitUnder 80(C)Under 80(C)Under 80(C)Under 80(C)Under 80(C)

Additional Benefits- Cash Benefit ( Rs. 300000 p.a )- Cash Bonus ( Rs. 150000 p.a )- No Medical Documents for a healthy non-smoker under the age 40- Loan Benefit (80% Sum Assured)- Savings Benefit- Cash BenefitLoyalty Addition Benefit: This feature gives free extra allocation of Units during the term of the Policy to enhance your Fund Value.

No Additional Benefits

Case

Mr X. is a healthy 30 yrs. old male (non tobacco user) and decides to buy a whole life policy to secure himself and his family.mr. x wants the sum assured of the policy to be around Rs. 50,00,000.

AnalysisWe would recommend going with the ICICI Pru Whole Life Plan, as it offers an assured sum of Rs. 50,00,000. at a comparatively better premium of Rs. 8933. Per annum with a payment term of 20 years. Additionally its offers several benefits/bonuses such as Loan Benefit (80% Sum Assured), Savings Benefit, Cash Benefit, Accidental Benefit. Thus, taking into consideration all the above factors, this policy is more attractive compared to the others.