Helps customer find the best policy according to their suitable needs
Features,pros,cons and suitability of various policies are given :-
1. Term Policy
2. Whole Life Policy
3. Unit Linked Insurance Policy (ULIP)
4. Money Back Policy
5. Endowment Policy
2. INTRODUCTION
Insurance is a contract in which an individual or entity
receives financial protection or reimbursement against
losses from an insurance company.
SOURCE : INVESTOPEDIA
2
3. MEANING
• Life insurance is a contract between an insured (insurance policy
holder) and an insurer or assurer, where the insurer promises to pay
a designated beneficiary a sum of money in exchange for a premium,
upon the death of the insured person.
• Depending on the contract, other events such as terminal
illness or critical illness can also be the reason for the payment.
• The policy holder typically pays a premium, either regularly or as one
lump sum. Other expenses (such as funeral expenses) can also be
included in the benefits.
SOURCE : WIKIPEDIA
DREAMSTIME.COM
3
4. TYPES OF LIFE INSURANCE POLICIES
INSURANCE
POLICIES
PURE INSURANCE
TERM PLANS
INSURANCE CUM
INVESTMENT
POLICIES
WHOLE LIFE
PLANS
UNIT LINKED
INSURANCE
MONEY BACK
ENDOWMENT
PLANS
SOURCE : WWW.WEALTHWISHER.COM
4
5. TYPES OF LIFE INSURANCE POLICIES
SOURCE : WWW.WEALTHWISHER.COM
5
INSURANCE
POLICIES
PURE
INSURANCE
TERM PLANS
INSURANCE CUM
INVESTMENT
POLICIES
WHOLE LIFE
PLANS
UNIT LINKED
INSURANCE
MONEY BACK
ENDOWMENT
PLANS
6. TERM POLICY
FEATURES
• Covers Amount of protection against death of an
Individual for a given period.
• Insurance amount is to be paid to the Nominees in case
of death
• LOW COST - Cheapest Form of Life Insurance
• CONVERTIBILTY - From Original Term Insurance Policy
to Whole Life Term etc.
• CHANGES IN PREMIUM – It may either increase or
decrease based on period of the policy, age etc
SOURCE : STREETDIRECTORY.COM
6
FEATURES
Protection
against
death
Insurance
amount to
be paid
Low costConvertibility
Changes in
premium
INSURAN
CE
POLICIES
PURE
INSURAN
CE
TERM
PLANS
INSURAN
CE CUM
INVESTM
ENT
POLICIES
WHOLE
LIFE
PLANS
UNIT
LINKED
INSURAN
CE
MONEY
BACK
ENDOW
MENT
PLANS
7. TERM POLICY
PROS / ADVANTAGES
• High amount of coverage at low premium
• DEATH BENEFIT – Payable to the beneficiary when the
annuitant passes away.
• TAX BENEFIT - any payment made by a tax payer on
account of Term Insurance Policy will be allowed
deduction as per section 80C of the Income-tax Act,
1961 with enhanced tax deduction up to Rs 1,50,000.
• RENEWABILTY – Once the policy is expired , it can be
renewed with same premium and rates
SOURCE : STREETDIRECTORY.COM
MONEYCONTROL
MYINSURANCECLUB.COM
7
PROS
HIGH
COVERAGE
DEATH
BENEFIT
TAX BENEFIT
RENEWABILITY
INSURAN
CE
POLICIES
PURE
INSURAN
CE
TERM
PLANS
INSURAN
CE CUM
INVESTM
ENT
POLICIES
WHOLE
LIFE
PLANS
UNIT
LINKED
INSURAN
CE
MONEY
BACK
ENDOW
MENT
PLANS
8. TERM POLICY
CONS / DISADVANTAGES
• LIMITED TO CONVERSION PERIOD - The conversion
options for a number of term life polices expire prior to
the term period’s midpoint.
• PURE INSURANCE ,NO INVESTMENT- In term insurance
policy if policy holder survive to the maturity date no
amount is payable( premium paid is not returned back)
• NO SURRENDER VALUE
SOURCE : WAHM.COM
SELECTQUOTE.COM
8
CONS
PURE
INSURANCE , NO
INVESTMENT
LIMITED TO
CONVERSION
PERIOD
INSURAN
CE
POLICIES
PURE
INSURAN
CE
TERM
PLANS
INSURAN
CE CUM
INVESTM
ENT
POLICIES
WHOLE
LIFE
PLANS
UNIT
LINKED
INSURAN
CE
MONEY
BACK
ENDOW
MENT
PLANS
NO
SURRENDER
VALUE
9. TERM POLICY PROS / CONS
COMPARITIVE STUDY
PROS CONS
9
INSURAN
CE
POLICIES
PURE
INSURAN
CE
TERM
PLANS
INSURAN
CE CUM
INVESTM
ENT
POLICIES
WHOLE
LIFE
PLANS
UNIT
LINKED
INSURAN
CE
MONEY
BACK
ENDOW
MENT
PLANS
10. TERM POLICY
SUITABILITY
• SUITED FOR INVESTORS WITH SHORT TERM LIFE INSURANCE NEEDS (10YRS OR LESS) LIKE
1. Who cannot afford high premium
2. Students who want to take education loan and bank require coverage
3. Housing Loan
4. Suitable for investors who want to demarcate between risk coverage and
investment options
SOURCE : EDWARDJONES.COM
10
INSURAN
CE
POLICIES
PURE
INSURAN
CE
TERM
PLANS
INSURAN
CE CUM
INVESTM
ENT
POLICIES
WHOLE
LIFE
PLANS
UNIT
LINKED
INSURAN
CE
MONEY
BACK
ENDOW
MENT
PLANS
11. 11
FEATURES PROS CONS SUITABILITY
• Covers Amount of
protection against death of
an Individual for a given
period.
• Insurance amount is to be
paid to the Nominees incase
of death
• LOW COST - Cheapest
Form of Life Insurance
• CONVERTIBILTY - From
Original Term Insurance
Policy to Whole Life Term
etc.
• CHANGES IN PREMIUM – It
may either increase or
decrease based on period of
the police, age etc
• High amount of coverage at
low premium
• DEATH BENEFIT – Payable
to the beneficiary when the
annuitant passes away.
• TAX BENEFIT - any payment
made by a tax payer on
account of Term Insurance
Policy will be allowed
deduction as per section 80C
of the Income-tax Act, 1961
with enhanced tax
deduction up to Rs
1,50,000.
• RENEWABILTY – Once the
policy is expired , it can be
renewed with same
premium and rates
• LIMITED TO CONVERSION
PERIOD - The conversion
options for a number of
term life polices expire prior
to the term period’s
midpoint.
• PURE INSURANCE , NO
INVESTEMENT - In term
insurance policy if policy
holder survive to the
maturity date no amount is
payable( premium paid is
not returned back)
•NO SURRENDER VALUE
• Suited for investors with
short term life insurance
needs (10YRS OR LESS) like
1.Who cannot afford high
premium
2. Students who want to
take education loan and
bank acquires coverage
3.Housing Loan – life cover
equal to value of the loan
4. Suitable for investors who
want to demarcate between
risk coverage and
investment options
SUMMARY OF TERM POLICY
INSURAN
CE
POLICIES
PURE
INSURAN
CE
TERM
PLANS
INSURAN
CE CUM
INVESTM
ENT
POLICIES
WHOLE
LIFE
PLANS
UNIT
LINKED
INSURAN
CE
MONEY
BACK
ENDOW
MENT
PLANS
12. TYPES OF LIFE INSURANCE POLICIES
SOURCE : WEALTHWISHER 12
INSURANCE
POLICIES
PURE
INSURANCE
TERM PLANS
INSURANCE CUM
INVESTMENT
POLICIES
WHOLE LIFE
PLANS
UNIT LINKED
INSURANCE
MONEY BACK
ENDOWMENT
PLANS
13. WHOLE LIFE POLICY
FEATURES
• These plans provide cover throughout whole life.
• Policyholder has an option to pay premiums upto
certain age ,generally 80-100 yrs of age (Maturity
Age)
• Premium remains constant during the entire term of
the policy.
SOURCE : THEWEALTHWISHER
13
INSURANC
E POLICIES
PURE
INSURANC
E
TERM
PLANS
INSURANC
E CUM
INVESTME
NT
POLICIES
WHOLE
LIFE
PLANS
UNIT
LINKED
INSURANC
E
MONEY
BACK
ENDOWM
ENT
PLANS
FEATURES
COVER
THROUGHOUT
WHOLE LIFE
MATURITY
AGE
PREMIUM
REMAIN
CONSTANT
14. WHOLE LIFE POLICY
PROS / ADVANTAGE
• DEATH BENEFIT - In case of death of the Life Insured,
the nominee would get the Sum Assured + accrued
Bonus.
• MATURITY BENEFIT - There is an option to withdraw
the Sum Assured + accrued bonuses declared under the
policy anytime after 40 years from the date of
commencement of the policy provided the life insured
has attained a minimum age of 80 years.( No specific
maturity date)
• INCOME TAX BENEFIT-any payment made by a tax
payer on account of Term Insurance Policy will be
allowed deduction as per section 80C of the Income-tax
Act, 1961.
• SURRENDER VALUE
SOURCE : MY INSURANCE CLUB
14
PROS
DEATH
BENEFIT
SURRENDER
VALUE
TAX BENEFIT
MATURITY
BENEFIT
INSURANC
E POLICIES
PURE
INSURANC
E
TERM
PLANS
INSURANC
E CUM
INVESTME
NT
POLICIES
WHOLE
LIFE
PLANS
UNIT
LINKED
INSURANC
E
MONEY
BACK
ENDOWM
ENT
PLANS
15. WHOLE LIFE POLICY
CONS / DISADVANTAGE
SOURCE : JRC INSURANCE GROUP
MONEYUNDER30
15
• EXPENSIVE
• LOW INTEREST RATES- Interest earned is low
compared to other policies.
• INFLEXIBLE
• COMPLICATED – Only expert can tell whether
this policy is a good deal.
CONS
LOW INTEREST
RATES
EXPENSIVE
INFLEXIBLE
COMPLICATED
INSURANC
E POLICIES
PURE
INSURANC
E
TERM
PLANS
INSURANC
E CUM
INVESTME
NT
POLICIES
WHOLE
LIFE
PLANS
UNIT
LINKED
INSURANC
E
MONEY
BACK
ENDOWM
ENT
PLANS
16. WHOLE LIFE POLICY PROS / CONS
COMPARITIVE STUDY
16
PROS CONS
INFLEXIBLE
LOW INTEREST RATES
EXPENSIVE
COMPLICATED
MATURITY BENEFIT
INCOME TAX BENEFIT
DEATH BENEFIT
SURRENDER VALUE
INSURANC
E POLICIES
PURE
INSURANC
E
TERM
PLANS
INSURANC
E CUM
INVESTME
NT
POLICIES
WHOLE
LIFE
PLANS
UNIT
LINKED
INSURANC
E
MONEY
BACK
ENDOWM
ENT
PLANS
17. WHOLE LIFE POLICY
SUITABILITY
• People who invested for post retirement needs & intend to invest in other avenues.
• It is suitable and profitable if this policy is taken at younger age as premium charged will remain same.
• People who want to diversify their savings
• It helps to topup retirement savings of people.
SOURCE : THEWEALTHWISHER.COM
17
INSURANC
E POLICIES
PURE
INSURANC
E
TERM
PLANS
INSURANC
E CUM
INVESTME
NT
POLICIES
WHOLE
LIFE
PLANS
UNIT
LINKED
INSURANC
E
MONEY
BACK
ENDOWM
ENT
PLANS
18. 18
FEATURES PROS CONS SUITABILITY
• These plans provide cover
throughout whole life.
• Policyholder has an option
to pay premiums upto
certain age ,generally 80-100
yrs of age (Maturity Age)
• Premium remain constant
during the entire term of the
policy.
• DEATH BENEFIT - In case of death of
the Life Insured, the nominee would
get the Sum Assured + accrued Bonus.
• MATURITY BENEFIT - There is an
option to withdraw the Sum Assured +
accrued bonuses declared under the
policy anytime after 40 years from the
date of commencement of the policy
provided the life insured has attained a
minimum age of 80 years.( No specific
maturity date)
• INCOME TAX BENEFIT-any payment
made by a tax payer on account of
Term Insurance Policy will be allowed
deduction as per section 80C of the
Income-tax Act, 1961.
•SURRENDER VALUE
• EXPENSIVE
• LOW INTEREST RATES-
Interest earned is low
compared to other
policies.
• INFLEXIBLE
•COMPLICATED – Only
expert can tell whether
this policy is a good
deal.
• People who invested
for post retirement
needs & intend to
invest in other
avenues.
• It is suitable and
profitable if this policy
is taken at younger
age as premium
charged will remain
same.
• People who want to
diversify their savings
•It helps to topup
retirement savings of
people.
SUMMARY OF WHOLE LIFE
POLICY
INSURANC
E POLICIES
PURE
INSURANC
E
TERM
PLANS
INSURANC
E CUM
INVESTME
NT
POLICIES
WHOLE
LIFE
PLANS
UNIT
LINKED
INSURANC
E
MONEY
BACK
ENDOWM
ENT
PLANS
19. TYPES OF LIFE INSURANCE POLICIES
SOURCE : WEALTHWISHER 19
INSURANCE
POLICIES
PURE
INSURANCE
TERM PLANS
INSURANCE CUM
INVESTMENT
POLICIES
WHOLE LIFE
PLANS
UNIT LINKED
INSURANCE
MONEY BACK
ENDOWMENT
PLANS
20. UNIT LINKED INSURANCE
POLICY
FEATURES
• It provides financial protection along with investment
opportunities
• Premium paid in ULIP after deductions ( e.g. service tax
deductions) is invested in equity or debt market.
• Its performance is linked to market growth.
SOURCE : POLICY BAZAAR
MONEYCONTROL
20
INSURA
NCE
POLICIES
PURE
INSURA
NCE
TERM
PLANS
INSURA
NCE
CUM
INVEST
MENT
POLICIESWHOLE
LIFE
PLANS
UNIT
LINKED
INSURA
NCE
MONEY
BACK
ENDOW
MENT
PLANS
FEATURES
FINANCIAL
PROTECTION
INVESTMENT
PERFORMANCE
LINKED TO
MARKET
21. UNIT LINKED INSURANCE
POLICY
PROS / ADVANTAGES
• DEATH BENEFIT - In case of death of insured, the Sum
Assured and fund value is released to the beneficiary.
• TAX BENEFIT- ULIP also offers tax benefits under Section
80C and 10(10D) of the Income Tax Act, 1961. The
premium paid is deductible from taxable income for
maximum amount of Rs 1,00,000.
• TRANSPARENT – Daily track of Net Asset Value (NAV) of
the fund.
• FLEXIBLE – Systematically managing the funds
SOURCE : LIFEINSCOUNSIL 21
INSURAN
CE
POLICIES
PURE
INSURAN
CE
TERM
PLANS
INSURAN
CE CUM
INVESTM
ENT
POLICIES
WHOLE
LIFE
PLANS
UNIT
LINKED
INSURAN
CE
MONEY
BACK
ENDOW
MENT
PLANS
PROS
DEATH
BENEFIT
TAX BENEFIT
FLEXIBLE
TRANSPARENT
22. UNIT LINKED INSURANCE
POLICY
CONS / DISADVANTAGES
• Returns is not guaranteed
• LOCK IN PERIOD FOR 5 YEARS - It does not allow any
liquidity option atleast for 5 years
• LOW SUM ASSURED - Greater focus is on investment
value.
SOURCE : WISDOMTIMES
IRDA.GOV.IN
22
INSURAN
CE
POLICIES
PURE
INSURAN
CE
TERM
PLANS
INSURAN
CE CUM
INVESTM
ENT
POLICIES
WHOLE
LIFE
PLANS
UNIT
LINKED
INSURAN
CE
MONEY
BACK
ENDOW
MENT
PLANS
CONS
NO GUARANTEE
RETURN
LOCK IN PERIOD LOW SUM ASSURED
23. UNIT LINKED INSURANCE POLICY PROS /
CONS COMPARITIVE STUDY
23
PROS CONS
INSURA
NCE
POLICIE
S
PURE
INSURA
NCE
TERM
PLANS
INSURA
NCE
CUM
INVEST
MENT
POLICIE
S
WHOLE
LIFE
PLANS
UNIT
LINKED
INSURA
NCE
MONEY
BACK
ENDOW
MENT
PLANS
24. UNIT LINKED INSURANCE
POLICY
SUITABILITY
• It is suitable for the investors who are considering long term investments as it provides insurance cover ,
investments & tax benefits.
SOURCE : HINDU BUSINESS LINE
24
INSURAN
CE
POLICIES
PURE
INSURAN
CE
TERM
PLANS
INSURAN
CE CUM
INVESTM
ENT
POLICIES
WHOLE
LIFE
PLANS
UNIT
LINKED
INSURAN
CE
MONEY
BACK
ENDOW
MENT
PLANS
25. SUMMARY OF UNIT LINKED
INSURANCE POLICY
25
INSURAN
CE
POLICIES
PURE
INSURAN
CE
TERM
PLANS
INSURAN
CE CUM
INVESTM
ENT
POLICIES
WHOLE
LIFE
PLANS
UNIT
LINKED
INSURAN
CE
MONEY
BACK
ENDOW
MENT
PLANS
FEATURES PROS CONS SUITABILTY
• It provides financial
protection along with
investment opportunities
• Premium paid in ULIP after
deductions (e.g. service tax
deductions) is invested in
equity or debt market.
• Its performance is linked to
market growth.
• DEATH BENEFIT - In case of
death of insured, the Sum
Assured and fund value is
released to the beneficiary.
•TAX BENEFIT- ULIP also
offers tax benefits under
Section 80C and 10(10D) of
the Income Tax Act, 1961.
The premium paid is
deductible from taxable
income for maximum
amount of Rs 1,00,000.
•TRANSPARENT – Daily track
of Net Asset Value (NAV) of
the fund.
• FLEXIBLE – Systematically
manage of the funds
• Returns is not guaranteed
• LOCK IN PERIOD FOR 5
YEARS - It does not allow
any liquidity option atleast
for 5 years
• LOW SUM ASSURED -
Greater focus is on
investment value.
• It is suitable for the
investors who are
considering long term
investments as it provides
insurance cover ,
investments & tax benefits.
27. MONEY BACK POLICY
FEATURES
• It provides Insurance Cover & also periodic return at
regular intervals
• In the event of the death of insured during the policy
term, the beneficiary will get full money i.e. sum
assured without any deduction of any survival benefits
(i.e. amounts which have already been paid as money
back components)
• It yields low & fixed returns as they are not market
linked.
• SURRENDER VALUE
SOURCE : LICINDIA 27
INSURANCE
POLICIES
PURE
INSURANCE
TERM
PLANS
INSURANCE
CUM
INVESTMEN
T POLICIES
WHOLE LIFE
PLANS
UNIT
LINKED
INSURANCE
MONEY
BACK
ENDOWME
NT PLANS
FEATURES
INSURANCE
COVER
SURRENDER
VALUE
SUM
ASSURED
LOW & FIXED
RETURNS
28. MONEY BACK POLICY
PROS / ADVANTAGES
• FAMILY SECURITY – It gives way for a person to plan the
course of his life with a sum that is expected in regular
intervals
• ASSURED BONUS - Every policy will have a set of
assured bonus that may be shared in regular intervals or
got at the end of the policy.
SOURCE : MYINSURANCECLUB
THINKRUPEES.COM
28
INSURANCE
POLICIES
PURE
INSURANCE
TERM
PLANS
INSURANCE
CUM
INVESTMEN
T POLICIES
WHOLE LIFE
PLANS
UNIT
LINKED
INSURANCE
MONEY
BACK
ENDOWME
NT PLANS
PROS
FAMILY
SECURITY
ASSURED
BONUS
29. MONEY BACK POLICY
CONS / DISADVANTAGES
• LOW RETURNS
• LOW COVERS - Relative to term policy for same
premium
29
INSURANCE
POLICIES
PURE
INSURANCE
TERM
PLANS
INSURANCE
CUM
INVESTMEN
T POLICIES
WHOLE LIFE
PLANS
UNIT
LINKED
INSURANCE
MONEY
BACK
ENDOWME
NT PLANS
CONS
LOW RETURNS
LOW COVERS
30. MONEY BACK POLICY PROS/CONS
COMPARITIVE STUDY
30
PROS CONS
LOW COVERS
LOW RETURNS
BONUS
FAMILY SECURITY
INSURANCE
POLICIES
PURE
INSURANCE
TERM
PLANS
INSURANCE
CUM
INVESTMEN
T POLICIES
WHOLE LIFE
PLANS
UNIT
LINKED
INSURANCE
MONEY
BACK
ENDOWME
NT PLANS
31. MONEY BACK POLICY
SUITABILITY
• Individuals who require money at certain intervals in their lifetime to meet Fixed Long & Short term
financial needs along with life insurance cover e.g.
1. BUSINESSMAN
2. PROFESSIONALS
SOURCE : LICINDIA
31
INSURANCE
POLICIES
PURE
INSURANCE
TERM
PLANS
INSURANCE
CUM
INVESTMEN
T POLICIES
WHOLE LIFE
PLANS
UNIT
LINKED
INSURANCE
MONEY
BACK
ENDOWME
NT PLANS
32. SUMMARY OF MONEY BACK
POLICY
32
FEATURES PROS CONS SUITABILITY
• It provides Insurance
Cover & also period return
at regular interval
• In the event of the death
of insured during the policy
term, the beneficiary will get
full money sum assured
without any deduction of
survival benefit amount
which has been paid as
money back components
• It yield low & fixed returns
as they are not market
linked.
• SURRENDER VALUE
• FAMILY SECURITY – It gives
way for a person to plan the
course of his life with a sum
that is expected in regular
intervals
• BONUS - Every policy will
have a set of assured bonus
that may be shared in
regular intervals or got at
the end of the policy.
• LOW RETURNS
• LOW COVERS – Relative to
term policy for same
premium.
• Individuals who require
money at certain intervals in
their lifetime to meet Fixed
Long & Short term financial
needs along with life
insurance e.g.
BUSINESSMAN &
PROFESSIONALS
INSURANCE
POLICIES
PURE
INSURANCE
TERM
PLANS
INSURANCE
CUM
INVESTMEN
T POLICIES
WHOLE LIFE
PLANS
UNIT
LINKED
INSURANCE
MONEY
BACK
ENDOWME
NT PLANS
33. TYPES OF LIFE INSURANCE POLICIES
33
INSURANCE
POLICIES
PURE
INSURANCE
TERM PLANS
INSURANCE CUM
INVESTMENT
POLICIES
WHOLE LIFE
PLANS
UNIT LINKED
INSURANCE
MONEY BACK
ENDOWMENT
PLANS
34. ENDOWMENT POLICY
FEATURES
• Simple policy with guaranteed returns
• Protection & Savings Plan
• Sum assured is paid to the beneficiary on the death of
the insured or on the maturity of the term.
SOURCE : INDIANOTES
34
INSURANCE
POLICIES
PURE
INSURANCE
TERM PLANS
INSURANCE
CUM
INVESTMEN
T POLICIES
WHOLE LIFE
PLANS
UNIT LINKED
INSURANCE
MONEY
BACK
ENDOWMEN
T PLANS
FEATURES
SIMPLE
POLICY
SUM ASSURED
PROTECTION &
SAVINGS PLAN
35. ENDOWMENT POLICY
PROS / ADVANTAGES
• DEATH BENEFIT - Payable to the beneficiary when the
annuitant passes away.( Sum Assured + Accrued Bonus)
• MATURITY BENEFIT - Payable to the beneficiary at the
maturity of the policy. ( Sum Assured + Accrued Bonus)
• TAX BENEFIT - any payment made by a tax payer on
account of Term Insurance Policy will be allowed deduction as
per section 80C of the Income-tax Act, 1961.
• SURRENDER VALUE –
1. WITHIN 3YRS OF BUYING THE POLICY – Receive no
surrender value
2. MORE THAN 3YRS – Receive surrender value
SOURCE : MYINSURANCECLUB
INDIA NOTES
35
INSURANCE
POLICIES
PURE
INSURANCE
TERM PLANS
INSURANCE
CUM
INVESTMEN
T POLICIES
WHOLE LIFE
PLANS
UNIT LINKED
INSURANCE
MONEY
BACK
ENDOWMEN
T PLANS
PROS
DEATH
BENEFIT
TAX BENEFIT
SURRENDER
VALUE
MATURITY
BENEFIT
36. ENDOWMENT POLICY
CONS / DISADVANTAGES
• Low Returns.
• Premium paid is higher as compared to term policy.
• Only few companies provide advantage of Renewability
• It provides protection only for specified period.
SOURCE : WEALTHLINK
INDIANOTES
36
INSURANCE
POLICIES
PURE
INSURANCE
TERM PLANS
INSURANCE
CUM
INVESTMEN
T POLICIES
WHOLE LIFE
PLANS
UNIT LINKED
INSURANCE
MONEY
BACK
ENDOWMEN
T PLANS
CONS
NON
RENEWABILITY
HIGH PREMIUM
LOW RETURNS PROTECTION
FOR
SPECIFIED
PERIOD
37. ENDOWMENT POLICY PROS /
CONS COMPARITIVE STUDY
37
PROS CONS
LOW RETURNS
HIGH PREMIUM
NON - RENEWABILITY
PROTECTION FOR
SPECIFIED PERIOD
SURRENDER VALUE
TAX BENEFIT
MATURITY BENEFIT
DEATH BENEFIT
INSURANCE
POLICIES
PURE
INSURANCE
TERM PLANS
INSURANCE
CUM
INVESTMEN
T POLICIES
WHOLE LIFE
PLANS
UNIT LINKED
INSURANCE
MONEY
BACK
ENDOWMEN
T PLANS
38. ENDOWMENT POLICY
SUITABILITY
• It is apt for people of all ages & social groups who wish to protect their family from Financial setback & Looking for
Benefits. E.G SAVINGS,WEALTH CREATION.ETC.
• It is for people who want 100% return on the Insurance Premium they paid so they are willing to accept a low
insurance cover and obtain lump sum amount at maturity.
SOURCE : LIC INDIA.IN
INDIANOTES
38
INSURANCE
POLICIES
PURE
INSURANCE
TERM PLANS
INSURANCE
CUM
INVESTMEN
T POLICIES
WHOLE LIFE
PLANS
UNIT LINKED
INSURANCE
MONEY
BACK
ENDOWMEN
T PLANS
39. SUMMARY OF ENDOWMENT
POLICY
39
INSURANCE
POLICIES
PURE
INSURANCE
TERM PLANS
INSURANCE
CUM
INVESTMEN
T POLICIES
WHOLE LIFE
PLANS
UNIT LINKED
INSURANCE
MONEY
BACK
ENDOWMEN
T PLANS
FEATURES PROS CONS SUITABILITY
• Simple policy with
guaranteed returns
• Protection & Savings
Plan
• Sum assured is paid to
the beneficiary on the
death of the insured or
on the maturity of the
term.
• DEATH BENEFIT - Payable to the
beneficiary when the annuitant
passes away.( Sum Assured + Accrued
Bonus)
• MATURITY BENEFIT - Payable to
the beneficiary at the maturity of the
policy. ( Sum Assured + Accrued
Bonus)
• TAX BENEFIT - any payment made
by a tax payer on account of Term
Insurance Policy will be allowed
deduction as per section 80C of the
Income-tax Act, 1961.
• SURRENDER VALUE –
1. WITHIN 3YRS OF BUYING THE
POLICY – Receive no surrender
value
2. MORE THAN 3YRS – Receive
surrender value.
• Low Returns
• Premium paid is higher
as compared to term
policy.
• Only Few companies
provide advantage of
Renewability .
• It provides protection
only for specified
period.
• It is apt for people of
all ages & social groups
who wish to protect
their family from
Financial setback &
Looking for Benefits. E.G
SAVINGS,WEALTH
CREATION.ETC.
•It is for people who
want 100% return on
the Insurance Premium
they paid so they are
willing to accept a low
insurance cover and
obtain lump sum
amount at maturity.
40. SUMMARY OF POLICIES
40
PARTICULARS TERM WHOLE
LIFE
ULIP MONEY
BACK
ENDOWMENT
FEATURES • MATURITY BENEFIT
• TAX BENEFIT (UPTO
Rs 1.5L)
• MARKET LINKED
• SURRENDER VALUE
( UPTO
Rs 1L)
( periodic
payments)
TARGET
SEGMENTS
• Pure
Insurance
• Suited for
investors
with short
term life
insurance
needs (10
years or
less)
• Who cannot
afford high
premium
• Housing
Loan value
cover
• Pick up at a
young age,
as premium
charged
remains
same
•Diversify
their savings
• Useful to
pass on
inheritance
without any
tax
• Single
package
covering
long-term
market
invest-
ments, tax
benefits,
and
insurance
cover.
Individuals
who need
savings at
certain
intervals in
their lifetime
to meet fixed
long & short
term financial
needs along
with life
insurance e.g.
businessmen
It is apt for people
of all ages & social
groups who wish to
protect their family
from unfortunate
setbacks & at the
same time looking
for savings.