etica wealth management pvt ltd - insurance planning
Post on 12-Sep-2014
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DESCRIPTION
Insurance Planning is a very vital component of Financial Planning. This presentation is all about various types of Life and General Insurance available in India. It also talks about the benefit of Term Insurance Policy. One should only go for Term Insurance Policy as it is best cover for Protection. This presentation also talks about the Mis-selling happening in India when it comes to insurance selling.TRANSCRIPT
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Risk Planning
A simple way to invest in equity and create wealth
INDEX
Origins of Insurance
Life insurance Industry in India
Types of Life Insurance Policies
Term Insurance Policy
Whole Life Policy
Endowment Policy
Money Back Policy
Unit-Linked Insurance Plans (ULIPS)
Annuities & Pension Plan
Riders
Term Plan Comparison
FAQs on Life Insurance
Myth Busters
General Insurance Industry
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RisksRisksRisksRisks andandandand uncertaintiesuncertaintiesuncertaintiesuncertainties areareareare partpartpartpart ofofofof life'slife'slife'slife's greatgreatgreatgreat adventureadventureadventureadventure --------
accident,accident,accident,accident, illness,illness,illness,illness, theft,theft,theft,theft, naturalnaturalnaturalnatural disasterdisasterdisasterdisaster ---- they'rethey'rethey'rethey're allallallall builtbuiltbuiltbuilt intointointointo
thethethethe workingworkingworkingworking ofofofof thethethethe universe,universe,universe,universe, waitingwaitingwaitingwaiting totototo happenhappenhappenhappen....
InsuranceInsuranceInsuranceInsurance thenthenthenthen isisisis man'sman'sman'sman's answeransweransweranswer totototo thethethethe vagariesvagariesvagariesvagaries ofofofof lifelifelifelife.... IfIfIfIf youyouyouyou
cannotcannotcannotcannot beatbeatbeatbeat manmanmanman----mademademademade andandandand naturalnaturalnaturalnatural calamities,calamities,calamities,calamities, well,well,well,well, atatatat
leastleastleastleast bebebebe preparedpreparedpreparedprepared forforforfor themthemthemthem andandandand theirtheirtheirtheir aftermathaftermathaftermathaftermath....
PROCESS OF ANALYSING INSURANCE NEED
Identifications of Risks
Assessing Risk
Manage & Control the risk
Risk avoidance
Risk Reduction
Risk Retention
Risk transfer
Monitor & Review
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COMMON RISKS FACED BY US
Death (Loss of Income)Death (Loss of Income)Death (Loss of Income)Death (Loss of Income)
Disability (Loss of Income temporarily)Disability (Loss of Income temporarily)Disability (Loss of Income temporarily)Disability (Loss of Income temporarily)
Critical Illness (High treatment charges)Critical Illness (High treatment charges)Critical Illness (High treatment charges)Critical Illness (High treatment charges)
Illness & injuries (Hospitalization expenses)Illness & injuries (Hospitalization expenses)Illness & injuries (Hospitalization expenses)Illness & injuries (Hospitalization expenses)
House: Fire, theft, calamityHouse: Fire, theft, calamityHouse: Fire, theft, calamityHouse: Fire, theft, calamity
Motor: Accidents, theft, calamityMotor: Accidents, theft, calamityMotor: Accidents, theft, calamityMotor: Accidents, theft, calamity
ORIGINS OF INSURANCE
InsuranceInsuranceInsuranceInsurance inininin IndiaIndiaIndiaIndia cancancancan bebebebe tracedtracedtracedtraced backbackbackback totototo thethethethe VedasVedasVedasVedas.... ForForForFor instance,instance,instance,instance, yogakshema,yogakshema,yogakshema,yogakshema,
thethethethe namenamenamename ofofofof LifeLifeLifeLife InsuranceInsuranceInsuranceInsurance CorporationCorporationCorporationCorporation ofofofof India'sIndia'sIndia'sIndia's corporatecorporatecorporatecorporate headquarters,headquarters,headquarters,headquarters, isisisis
derivedderivedderivedderived fromfromfromfrom thethethethe RigRigRigRig VedaVedaVedaVeda.... TheTheTheThe termtermtermterm suggestssuggestssuggestssuggests thatthatthatthat aaaa formformformform ofofofof "community"community"community"community
insurance"insurance"insurance"insurance" waswaswaswas prevalentprevalentprevalentprevalent aroundaroundaroundaround 1000100010001000 BCBCBCBC andandandand practisedpractisedpractisedpractised bybybyby thethethethe AryansAryansAryansAryans....
LifeLifeLifeLife insuranceinsuranceinsuranceinsurance hadhadhadhad itsitsitsits originsoriginsoriginsorigins inininin ancientancientancientancient Rome,Rome,Rome,Rome, wherewherewherewhere citizenscitizenscitizenscitizens formedformedformedformed burialburialburialburial clubsclubsclubsclubs
thatthatthatthat wouldwouldwouldwould meetmeetmeetmeet thethethethe funeralfuneralfuneralfuneral expensesexpensesexpensesexpenses ofofofof itsitsitsits membersmembersmembersmembers asasasas wellwellwellwell asasasas helphelphelphelp survivorssurvivorssurvivorssurvivors bybybyby
makingmakingmakingmaking somesomesomesome paymentspaymentspaymentspayments....
MarineMarineMarineMarine InsuranceInsuranceInsuranceInsurance (Europe)(Europe)(Europe)(Europe) //// FireFireFireFire InsuranceInsuranceInsuranceInsurance (London(London(London(London fire)fire)fire)fire)
TheTheTheThe governmentgovernmentgovernmentgovernment decideddecideddecideddecided totototo nationalizenationalizenationalizenationalize thethethethe lifelifelifelife assuranceassuranceassuranceassurance businessbusinessbusinessbusiness inininin IndiaIndiaIndiaIndia.... AsAsAsAs aaaa
result,result,result,result, TheTheTheThe LifeLifeLifeLife InsuranceInsuranceInsuranceInsurance CorporationCorporationCorporationCorporation ofofofof IndiaIndiaIndiaIndia waswaswaswas setsetsetset upupupup inininin 1956195619561956 totototo taketaketaketake overoveroverover
aroundaroundaroundaround 250250250250 lifelifelifelife companiescompaniescompaniescompanies....
TheTheTheThe InsuranceInsuranceInsuranceInsurance RegulatoryRegulatoryRegulatoryRegulatory &&&& DevelopmentDevelopmentDevelopmentDevelopment Authority,Authority,Authority,Authority, anananan autonomousautonomousautonomousautonomous insuranceinsuranceinsuranceinsurance
regulatorregulatorregulatorregulator setsetsetset upupupup inininin 2000200020002000
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LIFE INSURANCE INDUSTRY Life Insurance Industry was liberalized in the year 1999Life Insurance Industry was liberalized in the year 1999Life Insurance Industry was liberalized in the year 1999Life Insurance Industry was liberalized in the year 1999----2000.2000.2000.2000.
Currently there are 24 players in the Life Insurance Industry.Currently there are 24 players in the Life Insurance Industry.Currently there are 24 players in the Life Insurance Industry.Currently there are 24 players in the Life Insurance Industry.
22 Insurance companies have JVs with foreign partners.22 Insurance companies have JVs with foreign partners.22 Insurance companies have JVs with foreign partners.22 Insurance companies have JVs with foreign partners.
LIC and Sahara Life Insurance company do not have JVs.LIC and Sahara Life Insurance company do not have JVs.LIC and Sahara Life Insurance company do not have JVs.LIC and Sahara Life Insurance company do not have JVs.
All the major international players are present in the Indian Insurance market.All the major international players are present in the Indian Insurance market.All the major international players are present in the Indian Insurance market.All the major international players are present in the Indian Insurance market.
A high capital intensive industry A high capital intensive industry A high capital intensive industry A high capital intensive industry ---- Rs.31,437 Cr deployedRs.31,437 Cr deployedRs.31,437 Cr deployedRs.31,437 Cr deployed
Foreign partners have brought in capital of around Rs.5,053 Cr as FDI.Foreign partners have brought in capital of around Rs.5,053 Cr as FDI.Foreign partners have brought in capital of around Rs.5,053 Cr as FDI.Foreign partners have brought in capital of around Rs.5,053 Cr as FDI.
India has the largest inIndia has the largest inIndia has the largest inIndia has the largest in----force policies in the world.force policies in the world.force policies in the world.force policies in the world.
SNAPSHOT OF INDIAN LIFE INSURANCE INDUSTRY
Parameter FY 99-00 FY 06-07 FY 07-08 FY 09-10 FY 10-11
(provisional)
Number of players 1 16 18 23 24
Capital Deployed (Rs. Cr) 5 9,485 16,692 28,943 31437
Branches 2,048 5,373 8,913 12,018 11465
Employees (in Lacs) 1.23 1.87 2.54 2.70 2.42
Individual Agents (in Lacs) 7.14 19.93 25.20 29.78 26.47
New Business Policies (In Cr) 1.69 4.61 5.08 5.32 4.81
In force Policies (In Cr) 10.14 22.70 25.76 30.40 32.54
Indias share of world premium 0.50% 1.53% 1.83% NA NA
Penetration as % of GDP 1.39% 4.1% 4.0% 4.90* NA
Total Death Benefit paid(Rs.Cr) NA 4,794 5,288 8,385 10,270
Total Maturity claim paid(Rs. Cr) NA 34,356 34,543 NA NA
Over 70% of the branches are located in Class C cities or lower
Source: IRDA, Life Insurance Council
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FAQS ON LIFE INSURANCE
What is Life Insurance? What is Life Insurance? What is Life Insurance? What is Life Insurance?
Do you need life insurance?Do you need life insurance?Do you need life insurance?Do you need life insurance?
How much does life insurance cost?How much does life insurance cost?How much does life insurance cost?How much does life insurance cost?
How much do I insure myself for?How much do I insure myself for?How much do I insure myself for?How much do I insure myself for?
What will I receive on maturity of my policy?What will I receive on maturity of my policy?What will I receive on maturity of my policy?What will I receive on maturity of my policy?
Are there any advantages in buying insurance at an early age?Are there any advantages in buying insurance at an early age?Are there any advantages in buying insurance at an early age?Are there any advantages in buying insurance at an early age?
How do I buy a policy?How do I buy a policy?How do I buy a policy?How do I buy a policy?
Where can I get all the relevant information?Where can I get all the relevant information?Where can I get all the relevant information?Where can I get all the relevant information?
TYPES OF LIFE INSURANCE POLICIES
Term Insurance PolicyTerm Insurance PolicyTerm Insurance PolicyTerm Insurance Policy
Whole Life PolicyWhole Life PolicyWhole Life PolicyWhole Life Policy
Endowment PolicyEndowment PolicyEndowment PolicyEndowment Policy
Money Back PolicyMoney Back PolicyMoney Back PolicyMoney Back Policy
UnitUnitUnitUnit----Linked Insurance Plans (ULIPS)Linked Insurance Plans (ULIPS)Linked Insurance Plans (ULIPS)Linked Insurance Plans (ULIPS)
Annuities & Pension PlanAnnuities & Pension PlanAnnuities & Pension PlanAnnuities & Pension Plan
RidersRidersRidersRiders
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TERM INSURANCE POLICY
Provides cover for a specific period onlyProvides cover for a specific period onlyProvides cover for a specific period onlyProvides cover for a specific period only
Premium is very low. Premium is very low. Premium is very low. Premium is very low.
No returns/refund of premiumNo returns/refund of premiumNo returns/refund of premiumNo returns/refund of premium
No investment elementNo investment elementNo investment elementNo investment element
100% Risk Cover100% Risk Cover100% Risk Cover100% Risk Cover
Sum assured paid on deathSum assured paid on deathSum assured paid on deathSum assured paid on death
Best policy for adequate life coverBest policy for adequate life coverBest policy for adequate life coverBest policy for adequate life cover
Buy based on life insurance need analysisBuy based on life insurance need analysisBuy based on life insurance need analysisBuy based on life insurance need analysis
WHOLE LIFE POLICY
Pays either at death or maturityPays either at death or maturityPays either at death or maturityPays either at death or maturity
Maturity usually 100 years age.Maturity usually 100 years age.Maturity usually 100 years age.Maturity usually 100 years age.
Premium paid for life time Premium paid for life time Premium paid for life time Premium paid for life time
Works for estate planning as benefits are generally enjoyed Works for estate planning as benefits are generally enjoyed Works for estate planning as benefits are generally enjoyed Works for estate planning as benefits are generally enjoyed
by familyby familyby familyby family
Very High Commission (Very High Commission (Very High Commission (Very High Commission (uptouptouptoupto 35%)35%)35%)35%)
Not Very flexibleNot Very flexibleNot Very flexibleNot Very flexible
Expected Expected Expected Expected RetunRetunRetunRetun : 4 : 4 : 4 : 4 6%6%6%6%
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ENDOWMENT POLICY
Most popular insurance policy in IndiaMost popular insurance policy in IndiaMost popular insurance policy in IndiaMost popular insurance policy in India
Combines Investment + Risk CoverCombines Investment + Risk CoverCombines Investment + Risk CoverCombines Investment + Risk Cover
Sum assured paid on death or survival at maturity Sum assured paid on death or survival at maturity Sum assured paid on death or survival at maturity Sum assured paid on death or survival at maturity
Bonus paid along with Sum Assured on maturity Bonus paid along with Sum Assured on maturity Bonus paid along with Sum Assured on maturity Bonus paid along with Sum Assured on maturity
Premiums are higher than term plan due to a savings Premiums are higher than term plan due to a savings Premiums are higher than term plan due to a savings Premiums are higher than term plan due to a savings
componentcomponentcomponentcomponent
Very High Commission (Very High Commission (Very High Commission (Very High Commission (uptouptouptoupto 40%)40%)40%)40%)
Not FlexibleNot FlexibleNot FlexibleNot Flexible
Expected Expected Expected Expected RetunRetunRetunRetun : 4 : 4 : 4 : 4 6%6%6%6%
MONEY BACK POLICY
Covers death & survival benefitsCovers death & survival benefitsCovers death & survival benefitsCovers death & survival benefits
Lump sum paid periodically.Lump sum paid periodically.Lump sum paid periodically.Lump sum paid periodically.
20% + 20% + 20% + 40% of SA at predefined intervals20% + 20% + 20% + 40% of SA at predefined intervals20% + 20% + 20% + 40% of SA at predefined intervals20% + 20% + 20% + 40% of SA at predefined intervals
Full sum assured paid on deathFull sum assured paid on deathFull sum assured paid on deathFull sum assured paid on death
Popular for planning Childrens Education & MarriagePopular for planning Childrens Education & MarriagePopular for planning Childrens Education & MarriagePopular for planning Childrens Education & Marriage
Very High Commission (Very High Commission (Very High Commission (Very High Commission (uptouptouptoupto 40%)40%)40%)40%)
Expected Expected Expected Expected RetunRetunRetunRetun : 4 : 4 : 4 : 4 6%6%6%6%
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ANNUITIES AND PENSION
Immediate Annuity PolicyImmediate Annuity PolicyImmediate Annuity PolicyImmediate Annuity Policy
Single PremiumSingle PremiumSingle PremiumSingle Premium
Monthly PensionMonthly PensionMonthly PensionMonthly Pension
Meant for Retirees investing Retirement ProceedsMeant for Retirees investing Retirement ProceedsMeant for Retirees investing Retirement ProceedsMeant for Retirees investing Retirement Proceeds
Deferred Annuity PolicyDeferred Annuity PolicyDeferred Annuity PolicyDeferred Annuity Policy
Invest regularly for some yearsInvest regularly for some yearsInvest regularly for some yearsInvest regularly for some years
Monthly pension starts at retirement ageMonthly pension starts at retirement ageMonthly pension starts at retirement ageMonthly pension starts at retirement age
Can commute upto 1/3 of accumulationCan commute upto 1/3 of accumulationCan commute upto 1/3 of accumulationCan commute upto 1/3 of accumulation
WHAT ARE RIDERS?
Accidental Death
Additional Sum Assured if death
Critical Illness
If critical illness diagnosed
Waiver of Premium
Waives off premium if something happens to person
who is paying premium
Used mainly in Childrens Policies
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UNIT LINKED INSURANCE PLANS (ULIPS)
Market linked investment where the premium paid is invested in fundsMarket linked investment where the premium paid is invested in fundsMarket linked investment where the premium paid is invested in fundsMarket linked investment where the premium paid is invested in funds
Different Options Different Options Different Options Different Options ---- Equity, Balanced, Debt. Switch facility availableEquity, Balanced, Debt. Switch facility availableEquity, Balanced, Debt. Switch facility availableEquity, Balanced, Debt. Switch facility available
Greater flexibility in policy structureGreater flexibility in policy structureGreater flexibility in policy structureGreater flexibility in policy structure
Sold as Investment PlansSold as Investment PlansSold as Investment PlansSold as Investment Plans
Higher of the SA or Fund value is paid at death / maturityHigher of the SA or Fund value is paid at death / maturityHigher of the SA or Fund value is paid at death / maturityHigher of the SA or Fund value is paid at death / maturity
Higher LiquidityHigher LiquidityHigher LiquidityHigher Liquidity
Highest Highest Highest Highest MisMisMisMis----selling as earlier commission was very highselling as earlier commission was very highselling as earlier commission was very highselling as earlier commission was very high
Recent SEBIRecent SEBIRecent SEBIRecent SEBI----IRDA spat and subsequent IRDA clampdown on ULIPSIRDA spat and subsequent IRDA clampdown on ULIPSIRDA spat and subsequent IRDA clampdown on ULIPSIRDA spat and subsequent IRDA clampdown on ULIPS
Highest NAV guaranteed Highest NAV guaranteed Highest NAV guaranteed Highest NAV guaranteed ---- A big fraudA big fraudA big fraudA big fraud
VARIOUS COSTS - ULIPS
Mortality charges
Cost of insurance coverage
Premium allocation charges
Usually goes towards agents commission
Fund management charges
To manage investment component like MFs
Policy administration charges
To cover operational costs
Surrender charges
Higher charges for early surrender
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LIC SAMRIDHI PLUSPremium Allocation Charge
First Year 27.5%
Second & Third Year 7.5%
Thereafter 5%
Mortality Charge 0.5%
Policy Administration Charge Rs 360 p.a
Fund Management Charge 0.40%
Surrender Charge 1st year 6%
Guarantee Charge 0.40%
Miscellaneous Charges
Dark side
of
insurance
mis-selling
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Policy date: December 28, 2010
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Sum Assured: Rs 5,00,000
Highest NAV guaranteed
Various Charges
Premium Allocation Charge : 4%
Premium Administration Charge : 3.6%
Fund Management Charge : 1.35%
Surrender Charge : 6%
Mortality Charge : As Applicable
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Highest NAV Charge : 0.5%
Additional Service Charge : Rs 250
Total First year Charges : 9.45%
Surrendered on January 5th, 2011
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HAPPY ENDING !!!!
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The name inspires trust
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A ULIP CUSTOMER & HIS AGENT
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WHERE ARE PURE PROTECTION PLANS ???
BANKS ARE THE BIGGEST MIS-SELLERS
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TERM PLANS COMPARISON CHART
Sum Assured: Rs 5,00,000.00
Annual Premium: Rs 19,603.00
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Sum Assured: Rs 100,00,000.00
Annual Premium: Rs 22,500.00
Sum Assured: Rs 100,00,000.00
Annual Premium: Rs 15,111.00
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Sum Assured: Rs 2,50,00,000.00
Annual Premium: Rs 22,600.00
Sum Assured: Rs 1,50,00,000.00
Annual Premium: Rs 11,300.00
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ITS UPTO YOU TO DECIDE !!!!!
LIC ASHA DEEP II ENDOWMENT PLAN ICICI I-PROTECT TERM PLAN
Sum Assured - Rs 5,00,000
Annual premium - Rs 19,603
Value at maturity based on LICs
projection chart - Rs 13,27,500
Sum Assured - Rs 100,00,000
Annual premium - Rs 8,300
Difference in Premium - Rs 11,303
Invested in Mutual Funds -
@12% - Rs 18,80,073
@15% - Rs 31,38,062
@20% - Rs 74,80,026
LIC ASHA DEEP
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ASHA (NIRASHA) DEEP
Continue to pay annual premium
Maturity value after 25 years
Rs 13,27,500
Surrender value: Rs 82,220
Annual Premium: Rs 19,603
Remaining Tenure: 18 years
Invests in Mutual Funds -
@12% - Rs 18,33,596
@15% - Rs 26,90,627
@20% - Rs 51,24,223
LIC ASHA DEEP SURRENDER
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LIC ASHA DEEP SURRENDER CHEQUE
ASHA DEEP INVESTED INTO MUTUAL FUND
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INVESTMENTBY LIFE INSURANCE COMPANIES
Parameter FY 09-10 % age
Central Government Securities 3,61,520 57%
State Government and other approved securities 1,36,998 21.5%
Investment in Infrastructure Sector 1,39,710 21.5%
Instruments FY 2009-10 FY 2010-11
Equity 4,46,881 5,06,895 (34%)
Fixed Income (Debt) 8,10,904 9,52,993 (64%)
Others 32,161 20,425 (2%)
Total 12,89,946 14,80,313 (100%)
LIFE INSURANCE DEATH CLAIMS
LICLICLICLIC PrivatePrivatePrivatePrivate KotakKotakKotakKotak AegonAegonAegonAegon ReligareReligareReligareReligare ICICI ICICI ICICI ICICI PruPruPruPru
Amount in
Rs crs4,799.55 1,158.58 55.91 1.08 218.04
No of Policies 6,53,909 72,200 1,983 24 14,479
Avg Amount
per policy73,397.83 1,60,468.1 2,81,946.5 4,50,000 1,50,590.5
Sum Assured: More than 6 timesTenure of LIC - Avg 15 years ; Private - 2 to 5 yrsAgent / RM Mis-selling Vs Claims settled by Claims department
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Started in 184425,000 peoplePresence in 20 markets in US, Asia and Europe4 crore customers across the globe
Founded in 1696, Since 1834 associated with IndiaThe world's 6th largest Insurance groupBiggest in the UK 44.5 million-customer base worldwide with 402 billion assets under management at 31 December 2010.
History of 140 years9 crore customersPresence in 50 markets in US, Asia, latin America and Europe
Are you still concerned???
Founded in 1845 is the oldest company in USFortune 100 company The Company holds the highest possible ratings for financial strength currently awarded to any life insurer from the life insurance industry's four principal rating agencies
History of only 52 years
MYTH BUSTERS
Myth 1: Insurance is for tax saving
Myth 2: Insurance is Investment
Myth 3: I dont need Insurance.
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5 EASY STEPS TO BUYING A POLICY
Initially,Initially,Initially,Initially, calculatecalculatecalculatecalculate thethethethe exactexactexactexact amountamountamountamount ofofofof insuranceinsuranceinsuranceinsurance thatthatthatthat youyouyouyou needneedneedneed;;;;
DecideDecideDecideDecide whichwhichwhichwhich productproductproductproduct suitssuitssuitssuits youyouyouyou bestbestbestbest basedbasedbasedbased onononon youryouryouryour lifelifelifelife stagestagestagestage andandandand needneedneedneed
CalculateCalculateCalculateCalculate thethethethe premiumpremiumpremiumpremium
OnceOnceOnceOnce youyouyouyou havehavehavehave decideddecideddecideddecided onononon allallallall thethethethe aboveaboveaboveabove parameters,parameters,parameters,parameters, getgetgetget inininin touchtouchtouchtouch withwithwithwith aaaa LifeLifeLifeLife
AdvisorAdvisorAdvisorAdvisor
The Life Advisor will assist you in filling up a proposal form. In addition to a The Life Advisor will assist you in filling up a proposal form. In addition to a The Life Advisor will assist you in filling up a proposal form. In addition to a The Life Advisor will assist you in filling up a proposal form. In addition to a
proposal form, you need to submit some financial documents that are required proposal form, you need to submit some financial documents that are required proposal form, you need to submit some financial documents that are required proposal form, you need to submit some financial documents that are required
in order to buy a policy. The Life Advisor will notify the list of financial in order to buy a policy. The Life Advisor will notify the list of financial in order to buy a policy. The Life Advisor will notify the list of financial in order to buy a policy. The Life Advisor will notify the list of financial
documents required for the same.documents required for the same.documents required for the same.documents required for the same.
10 COMMANDMENTS OF LIFE INSURANCE
Thou shall buy insurance only for risk cover
Thou shall not consider insurance as an investment option
Thou shall preferably buy only a term policy
Thou shall not trust his agent blindly
Thou shall be wary of the hype (advertisements)
Thou shall not buy ULIP at any cost
Thou shall not insure yourself if you a lone bird
Thou shall not insure if you are wealthy
Thou shall not buy a child insurance plan or a plan for a non-earning member
Thou shall read the fine print carefully
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HOW TO BUY LIFE INSURANCE
Buy insurance only from a licensed agent / intermediaryBuy insurance only from a licensed agent / intermediaryBuy insurance only from a licensed agent / intermediaryBuy insurance only from a licensed agent / intermediary
Shop aroundShop aroundShop aroundShop around
Understand the scope of cover, terms and conditions of the policyUnderstand the scope of cover, terms and conditions of the policyUnderstand the scope of cover, terms and conditions of the policyUnderstand the scope of cover, terms and conditions of the policy
Fill in your application carefully Fill in your application carefully Fill in your application carefully Fill in your application carefully Never sign blank proposalsNever sign blank proposalsNever sign blank proposalsNever sign blank proposals
Health related particularsHealth related particularsHealth related particularsHealth related particulars should be trueshould be trueshould be trueshould be true
Age and Address Proof should be correctAge and Address Proof should be correctAge and Address Proof should be correctAge and Address Proof should be correct
Ensure premiums are paid to your insurance companyEnsure premiums are paid to your insurance companyEnsure premiums are paid to your insurance companyEnsure premiums are paid to your insurance company
Read your policy when you receive itRead your policy when you receive itRead your policy when you receive itRead your policy when you receive it
15 day free look up period15 day free look up period15 day free look up period15 day free look up period
WHERE TO BUY LIFE INSURANCE?
Individual Agents -
Corporate Agents -
Bancassurance -
Insurance Brokers
Directly from companies
Branches
Online from websites
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INFORMATION FOR EXISTING POLICY HOLDERS
Always remember your premium due dates to avoid a policy lapse. Always remember your premium due dates to avoid a policy lapse. Always remember your premium due dates to avoid a policy lapse. Always remember your premium due dates to avoid a policy lapse.
Always insist on a premium receipt as a proof of payment.Always insist on a premium receipt as a proof of payment.Always insist on a premium receipt as a proof of payment.Always insist on a premium receipt as a proof of payment.
Ensure your age is stated correctly in the proposal. If it is incorrect, get it rectified at Ensure your age is stated correctly in the proposal. If it is incorrect, get it rectified at Ensure your age is stated correctly in the proposal. If it is incorrect, get it rectified at Ensure your age is stated correctly in the proposal. If it is incorrect, get it rectified at
the earliestthe earliestthe earliestthe earliest
Keep your policy in a safe place until the life insurance policy money is received.Keep your policy in a safe place until the life insurance policy money is received.Keep your policy in a safe place until the life insurance policy money is received.Keep your policy in a safe place until the life insurance policy money is received.
Always keep the nomination under your policy alive and he/she should be aware Always keep the nomination under your policy alive and he/she should be aware Always keep the nomination under your policy alive and he/she should be aware Always keep the nomination under your policy alive and he/she should be aware
about it. about it. about it. about it.
Always intimate change in address to insurance company immediatelyAlways intimate change in address to insurance company immediatelyAlways intimate change in address to insurance company immediatelyAlways intimate change in address to insurance company immediately
Always clarify any doubts you have about your policy with the life insurance company Always clarify any doubts you have about your policy with the life insurance company Always clarify any doubts you have about your policy with the life insurance company Always clarify any doubts you have about your policy with the life insurance company
/ insurance advisor./ insurance advisor./ insurance advisor./ insurance advisor.
5 COMMON LIFE INSURANCE MISTAKES
Treating life insurance as a savings avenue
Trusting your life insurance agent / advisor completely
Considering life insurance as a one time activity
Buying the wrong product (99% are victim of this) - Child plan,
Life insurance for non-earning spouse
Buy Life insurance purely to save Tax
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FILING A LIFE INSURANCE CLAIM
Maturity claim Fill the claim form
Original policy bond
Death claim Claim intimation/notificationClaim intimation/notificationClaim intimation/notificationClaim intimation/notification
Contact the respective life insurance branch office.
Contact your insurance advisor
Call the respective Customer Helpline
Documents required for claim processingDocuments required for claim processingDocuments required for claim processingDocuments required for claim processing
Original policy document,
Death certificate,
Police FIR and post mortem exam report (for accidental death),
Certificate and records from the treating doctor/hospital (for death due to illness)
Settlement of Claim (within 30 days of receipt of all documents)Settlement of Claim (within 30 days of receipt of all documents)Settlement of Claim (within 30 days of receipt of all documents)Settlement of Claim (within 30 days of receipt of all documents)
PROTECTION OF POLICY HOLDERS INTEREST
Note:-
There are 12 ombudsman Centre's in India.
The companies cannot challenge the decision of the ombudsman
Register a Complaint with the Toll free number /Register a Complaint with the Toll free number /Register a Complaint with the Toll free number /Register a Complaint with the Toll free number /
helpline of the Companyhelpline of the Companyhelpline of the Companyhelpline of the Company
Complaint to the Grievance officer of the companyComplaint to the Grievance officer of the companyComplaint to the Grievance officer of the companyComplaint to the Grievance officer of the company
ComplaintComplaintComplaintComplaint to Council / IRDA / Ombudsmanto Council / IRDA / Ombudsmanto Council / IRDA / Ombudsmanto Council / IRDA / Ombudsman
Grievance Redressal Mechanism
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No time
Agents Job
GENERAL INSURANCE
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TYPES OF GENERAL INSURANCE
Motor InsuranceMotor InsuranceMotor InsuranceMotor Insurance
Health InsuranceHealth InsuranceHealth InsuranceHealth Insurance
Fire InsuranceFire InsuranceFire InsuranceFire Insurance
Travel InsuranceTravel InsuranceTravel InsuranceTravel Insurance
Home InsuranceHome InsuranceHome InsuranceHome Insurance
Critical Illness coverCritical Illness coverCritical Illness coverCritical Illness cover
HEALTH INSURANCE
Rising medical costsRising medical costsRising medical costsRising medical costs
Uncertain hospital billsUncertain hospital billsUncertain hospital billsUncertain hospital bills
Expensive / quality health care servicesExpensive / quality health care servicesExpensive / quality health care servicesExpensive / quality health care services
Family health insurance at a lesser premiumFamily health insurance at a lesser premiumFamily health insurance at a lesser premiumFamily health insurance at a lesser premium
Tax benefitTax benefitTax benefitTax benefit
Changing lifestyle Changing lifestyle Changing lifestyle Changing lifestyle Most Important reasonMost Important reasonMost Important reasonMost Important reason
Why is Health Insurance important?
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POOR EATING HABITS RESULTING IN POOR HEALTH
Acidity, Diabetes, High Cholestrol, Obesity and the list goes on
EVERY FAMILY HAS ONE..
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IS THIS THE TREND???
Mr Raghu Pillai,CEO, Future GroupAge - 54 yrs, Heart Attack
Mr R Ravimohan,Former CEO, CrisilAge - 52 yrs, Heart Attack
Mr Ranjan Das,CEO, SAP IndiaAge - 42 yrs, Cardiac Arrest
Some reasonsBlackberrysExcessive TravellingPeer PressureEasy Lifestyle
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A grim reminder. Before its too late
Are we prepared for this ????
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HEALTH INSURANCE
Hospitalization Expenses over 24 hoursHospitalization Expenses over 24 hoursHospitalization Expenses over 24 hoursHospitalization Expenses over 24 hours
Room charges, Medicine & Test Charges, Operation, doctor Room charges, Medicine & Test Charges, Operation, doctor Room charges, Medicine & Test Charges, Operation, doctor Room charges, Medicine & Test Charges, Operation, doctor
fees etc coveredfees etc coveredfees etc coveredfees etc covered
Family floaters available Family floaters available Family floaters available Family floaters available
Group mediclaim policyGroup mediclaim policyGroup mediclaim policyGroup mediclaim policy
Eligible for tax benefits under 80DEligible for tax benefits under 80DEligible for tax benefits under 80DEligible for tax benefits under 80D
Rs 1 to 5 lakhs cover recommended based on affordability Rs 1 to 5 lakhs cover recommended based on affordability Rs 1 to 5 lakhs cover recommended based on affordability Rs 1 to 5 lakhs cover recommended based on affordability
HOW MUCH HEALTH INSURANCE COSTS?
Source: www.icicilombard.com
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CRITICAL ILLNESS COVER Benefit paid immediately on first diagnosis of the covered Major Medical Illnesses Benefit paid immediately on first diagnosis of the covered Major Medical Illnesses Benefit paid immediately on first diagnosis of the covered Major Medical Illnesses Benefit paid immediately on first diagnosis of the covered Major Medical Illnesses
and Procedure, Accidental Death /Permanent Total Disablement (PTD) due to and Procedure, Accidental Death /Permanent Total Disablement (PTD) due to and Procedure, Accidental Death /Permanent Total Disablement (PTD) due to and Procedure, Accidental Death /Permanent Total Disablement (PTD) due to
accidentaccidentaccidentaccident
Choose between a cover ofChoose between a cover ofChoose between a cover ofChoose between a cover of 3 Lakh,3 Lakh,3 Lakh,3 Lakh, 6 Lakh or6 Lakh or6 Lakh or6 Lakh or 12 Lakh sum insured and policy 12 Lakh sum insured and policy 12 Lakh sum insured and policy 12 Lakh sum insured and policy
duration between 1 year, 3 years or 5 years.duration between 1 year, 3 years or 5 years.duration between 1 year, 3 years or 5 years.duration between 1 year, 3 years or 5 years.
Major Medical Illness & Procedures :Major Medical Illness & Procedures :Major Medical Illness & Procedures :Major Medical Illness & Procedures :
CancerCancerCancerCancer
Coronary Artery Bypass Graft SurgeryCoronary Artery Bypass Graft SurgeryCoronary Artery Bypass Graft SurgeryCoronary Artery Bypass Graft Surgery
Myocardial Infarction (Heart Attack)Myocardial Infarction (Heart Attack)Myocardial Infarction (Heart Attack)Myocardial Infarction (Heart Attack)
End Stage Renal FailureEnd Stage Renal FailureEnd Stage Renal FailureEnd Stage Renal Failure
Major Organ TransplantMajor Organ TransplantMajor Organ TransplantMajor Organ Transplant
StrokeStrokeStrokeStroke
ParalysisParalysisParalysisParalysis
Heart Valve Replacement SurgeryHeart Valve Replacement SurgeryHeart Valve Replacement SurgeryHeart Valve Replacement Surgery
Multiple SclerosisMultiple SclerosisMultiple SclerosisMultiple Sclerosis
CRITICAL ILLNESS CHARGES
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STEPS TO BUY A HEALTH INSURANCE
Pay attention to policy conditionsPay attention to policy conditionsPay attention to policy conditionsPay attention to policy conditions
Read the exclusions and limitations very carefullyRead the exclusions and limitations very carefullyRead the exclusions and limitations very carefullyRead the exclusions and limitations very carefully
Compare premium costs, deductibles, coCompare premium costs, deductibles, coCompare premium costs, deductibles, coCompare premium costs, deductibles, co----paymentspaymentspaymentspayments
Take an informed decisionTake an informed decisionTake an informed decisionTake an informed decision
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GET WELL SOON !!!
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