Insurance DigestV

Integrated Insurance
Digest
Integrated Enterprises (India) Private Ltd.

Phone: 044 2814 0815 www.integratedindia.in
Email : customercare@integratedindia.in
About the Book
Insurance planning is a critical component of a comprehensive financial plan

that includes evaluating risks and determining the proper insurance
coverage to mitigate those risks. The principal goal of Life insurance planning
is to identify and analyze risk factors in life and seek proper coverage to
protect the family financially, in case of an unfortunate event. The idea
behind insurance is to get a group to contribute financially to a fund
specifically designed to help individuals recover in the case of an unexpected
loss.
This Handbook would act as a Complete Guide for Life Insurance with
popular Insurance Plans that are available in India. This book would help the
customer in selecting the relevant Insurance Plan that would secure him
financially based on his life stage and requirements.
“Prevention is better than cure” as the saying goes it is very much necessary to
take up insurance as the concept of insurance was born out of the necessity to
protect, ensure and manage risk.
Hope you find this book informative and useful.
Stay protected with Insurance. Happy Reading !!
Introduction to Life Insurance
One way of contributing toward our desired purpose is by carrying

adequate insurance. This is a device people have invented for taking the
sting out of risks. It is a way of distributing losses and eliminating
uncertainty. It offers a plan (the policy) that enables a person (the policy-
holder) to join a large group of people (the life insurance company)
which undertakes to pay a sum of money to his family or others (the
beneficiaries) at the time of his death, or to him if he is still living on a
named date. In return, the policy-holder invests a sum of money (the
premium) with the insurance company.
Life Insurance is playing an important part in our national and economic
welfare as well as in individual well-being. It is preserving family life
where its existence is threatened by the death of a bread-winner; it
provides ready funds to meet emergencies by way of loans against the
value of policies;.
Contents
PART 1
Types of Life Insurance ........... 1-8
Human Life Value ........... 9 & 10
PART 2
Traditional Participating Plan ........... 11 - 41
Traditional Non-Participating Plan ........... 42 - 65
Term Insurance ........... 66 - 70
Pension Scheme ........... 71 - 77
Unit Linked Insurance Plan ........... 78 - 85
PART 3
Benefits of Life Insurance ........... 86
The ratios you need to understand before you buy an
insurance policy ........... 87 - 89
Age group wise classification of
Insurance requirement ........... 90 - 92
Select the best life insurance plan / policy in
3 easy steps ........... 93 - 94
PART 4
Financial Information summary of life Insurance
Companies (31.03.2020) ........... 95
Analysis of Financial Information of Life Insurance
Companies ........... 96
Integrated Solution for Life & Health Insurance Premium ........... 97
Integrated Solution for Life & Heath Insurance Coverage ........... 98
PART 5
Glossary - Life Insurance ........... 99 - 104
Glossary - General Insurance ........... 105 - 117
Life Insurance
Types of Life Insurance

Protection v/s Savings
Investment Oriented plans
Savings/ Anticipated Endowment

Investment
Endowment
Whole life
Term Insurance
Protection
1
Life Insurance
P Term Insurance
P Endowment Insurance
P Anticipated Endowment Insurance
P Whole Life Insurance
P Annuities
P Unit Linked Insurance Plan (ULIP)
2
Term Insurance
Term insurance plans provide life cover to protect your loved
ones at most affordable rates. This is the simplest form of life
insurance. Term plans offer financial security to your loved
ones' future even in your absence. No maturity value on
survival of the policy term.
150,000
Sum Assured
RISK COVER ONLY

100,000
In case of death during the policy

term, the Sum Assured is paid
50,000
In case of death
after term there
1 2 3 ---------------30 is no benefit
No.of Policy years
3
Endowment Insurance
Plan of Insurance where the insured is eligible for death

benefit or maturity benefit whichever happens earlier.
In case of death Else on

at age 45 Maturity
150,000
SA + Bonus
Death Benefit
Bonus gets added and

paid in case of survival
100,000 SA remains constant
50,000
30 35 40 45 50 55
Age of Insured
4
Anticipated Endowment Insurance
Plan of Insurance which has regular payouts during the term

of the policy
In case of death
at age 45 Else on
full SA paid Maturity
150,000
SA + Bonus
SA - Survival ben
+ Bonus
100,000
Survival benefit at
50,000 regular intervals
30 35 40 45 50 55
Age of Insured
5
Whole Life Insurance
Whole Life Insurance Plan covers you up till 99 years of

age. They are different from ordinary insurance
policies which have a defined term of say 10, 20 or 30
years, and are of use when you have financial
dependents for a relatively long period, possibly your
entire life.
Life cover continues along with other benefits till

the death of the policy holder
Start
Date of policy
purchase
6
Annuities
Pensions are also called Annuities. The annuity in

which the purchaser pays the purchase price in
lumpsum and starts getting the Annuity immediately is
called an Immediate Annuity.
Lump sum Premium
Purchase of
Annuity by
annuitant
Annuity
Start End
Till death of
annuitant or fixed
Monthly/ quarterly/ half yearly/ Yearly no. of years
12
7
Unit Linked Insurance Plan
Unit linked insurance plans, better known as ULIPs,
combines life insurance with financial investment. Unit-
linked insurance plans offer a wide choice of fund
options and portfolio strategies. ULIPs allow you to
withdraw money regularly from your policy after 5 years
lock-in.
Some features of ULIPs:
• Choice of investment funds

• Flexibility of choosing term, premium & cover
• Transparency
• Tax benefits
Life Insurance
Investment
Protection
+ 8
Human Life Value - HLV
Human Life Value (HLV) also known as the economic value

of an individual life. A number that tells the present value
of future income expenses, liabilities and investments.
The HLV number is taken usually to understand how much
money would be required to secure the lives of your
dependents with term insurance, in case you are no longer
around.
9
HLV Calculator
Human Live Value Calculator

The Human Life Value (HLV) Calculator helps you identify your life insurance needs on basis of income expenses, liabilities and investments
and secure your family’s future.
Personal Details
Current Age 40 Yrs
Desired Retirement Age 60 Yrs

RESULT
Educational Qualification
>
Graduate and Above
Required Life cover to

Financial Details Protect your Family’s Future is
Annual Income ` 8,00,000 ` 1,90,00,000

Eight lakh One crore ninety lakh
Monthly Expense ` 40,000
Forty thousand
Edit Check Premium
Existing Insurance Cover ` 50,00,000
Fifty lakh
Liabilities
>
Upto 10 Lacs
(eg. Outstanding Loans)
Calculate
10
Traditional Participating Plan
Traditional Policies mostly invest in bonds and are low
risk investment products. Policy holders get a guarantee
on the amount they would receive over the policy term.
Traditional Policies are further classified into
Participating policies and Non participating policies.
Participating policies are the ones that participate in the
performance of the Insurer. The benefits include a
combination of guaranteed payouts along with declared
bonuses. In non participating policies, the policy holder is
certain of the benefits he would receive over the policy
term. It is suitable for investors with low risk appetite.
11
Traditional Participating Plan Schemes
1. Bajaj Allianz Life Flexi Income Goal - Income Benefit .................... 13
2. Bajaj Allianz Life Flexi Income Goal - Enhanced Benefit .................... 15
3. Bharti Axa life Monthly Income Plan+ .................... 17
4. Bharti Axa Life Unnati : Whole Life Income Option .................... 18
5. Edelweiss Tokio Life - Active Income Plan .................... 20
6. Edelweiss Tokio Life - Smart Lifestyle .................... 22
7. HDFC Life Sanchay Par Advantage .................... 23
8. ICICI Cash Advantage .................... 24
9. ICICI Savings Suraksha .................... 25
10. ICICI Future Perfect .................... 26
11. Kotak Smart Life .................... 27
12. Kotak Premier Income Plan .................... 28
13. Kotak Premier Endowment Plan .................... 30
14. LIC Jeevan Umang .................... 32
15. LIC Jeevan Lakshya .................... 34
16. Reliance Nippon Life Bluechip Savings Insurance Plan .................... 36
17. Reliance Nippon Life Milestone Plan .................... 37
18. SBI Smart Future Choice .................... 38
19. SBI Shubh Nivesh .................... 40
20. Tata AIA Life Insurance - Value Income Plan .................... 41
12
Terminal
13
UIN: 116N162V01
Premium Holiday:
This is a unique flexibility option, where a policy holder can take a break
from premium payments. The policy holder has to inform the insurer in
writing one month before the end of the grace period of the next
premium due. The insurer will mark the status of the policy as Premium
holiday. The policy holder can avail the premium holiday after the payment of
certain annualised premiums and that too for certain period only. The policy remains
in- force during this period and all benefits are available.
14
15
UIN: 116N162V01
Rebates:
The benefits offered to the policy holder by choosing specific features of the
plan. For example, certain discounts on premium for availing higher sum
assured or certain discounts on premium for female lives.
Risk premium Component:
Risk premium is used to provide the guaranteed sum assured on death and deducted
from the premium received. It is calculated as Risk Premium= Sum Assured * Mode based
Mortality Rate.
Bancassurance:
Bancassurance is an arrangement between a bank and an insurance company allowing the
insurance company to sell its products to the bank's client base. This partnership
arrangement can be profitable for both companies. Banks earn additional revenue by
selling insurance products, and insurance companies expand their customer bases
without increasing their sales force or paying agent and broker commissions.
16
UIN: 130N057V02
17
18
UIN: 130N106V01
19
UIN: 147N065V01
20
21
UIN: 147N040V02
22
UIN: 101N136V01
23
UIN: 105N132V02
24
UIN: 105N135V02
25
UIN. 105N153V02
26
UIN: 107N102V02
27
UIN: 107N099V02
28
Benefit illustration :
Freelook period:
Free look period gives an individual the option to review the terms and
conditions of the policy for 15 days from the date of receipt of the policy
document. If he/ she disagree with the terms and conditions stated in the
policy, he/she has the option to return it, stating the reasons for objection. In
such a case, the policy would be cancelled and the premium paid would be refunded to
him / her by the insurance company, after deducting the expenses incurred on medical
examination, stamp duty charges and other charges. For policies sold through distance
marketing, the free look period is 30 days.
Grace period:
A period of time after the premium due date in which a policyholder is able to make a
premium payment without the insurance policy coverage lapsing. It is a specified period
after a premium payment is due, in which the policyholder may make such payment, and
during which the protection cover of the policy normally continues.
29
Kotak Premier Endowment Plan

Guarantee a great start to fulfill your dreams
UIN: 107N079V02
Individual, Non-Linked, Participating, Savings Life Insurance Plan
Kotak Premier Endowment Plan is a long-term savings and protection plan that provides financial
security to cope with unfortunate contingencies along with the ability to save for your future
financial needs. This plan provides guaranteed additions in the first five policy years and bonuses
start accruing from 6th year onwards, all this put together builds up a corpus for your secure
future.
Key Advantages
Guaranteed Additions: At 5% per annum of Basic Sum Assured in first 5 policy years Earn bonus
from 6th policy year onwards Convenience to select from multiple options of premium payment
term Additional Protection through a wide range of optional riders
Maturity Benefit
Survival till the end of the policy term the following benefit will be payable:
Ÿ Basic Sum Assured PLUS
Ÿ accrued Guaranteed Additions PLUS
Ÿ accrued Reversionary Bonuses and Terminal Bonus , if any
Death Benefit
In the unfortunate event of death during the term of the plan, the nominee will receive the
following:
Ÿ Minimum Death Benefit (as explained below) PLUS
Ÿ accrued Guaranteed Additions PLUS
Ÿ accrued Reversionary Bonuses and Terminal Bonus , if any
Eligibility
Entry Age - 18 - 60 years
Maximum Maturity Age - 70 Years
Premium Payment Term (PPT) - Regular Pay: Same as policy term
Limited Pay : 5 , 7 , 10 & 15 Years
Policy Term - Regular Pay: 10 – 30 years
Limited Pay: 5 Pay: 10 to 30 yrs
7 Pay & 10 Pay: 15 to 30 yrs
15 Pay: 20 to 30 yrs
Minimum Premium - Regular Pay: 8,000 per annum
Limited Pay: 15,000 per annum
30
Age Policy Term Sum Assured

Minimum Basic 18 yrs 10 yrs Rs.63,755
Sum Assured
at maturity 18 yrs 30 yrs Rs.2,00,904
60 yrs 10 yrs Rs.61,317.00
Premium Payment Mode - Yearly, Half yearly, Quarterly, Monthly
Illustration
Given below is an illustration of the benefits payable, for a person aged 35 years for a Basic Sum
Assured of 5 lakhs and with a policy term & premium payment term of 15 years:
Cumulative Accrued Total Maturity Benefit (in) Guaranteed

End of Years Age Years Annualized Guaranteed Death
Premium (in) Additions (in) @ 4% p.a @ 8% p.a Benefit* (in)
1 36 40460 25000 - - 525000
5 40 202300 125000 - - 625000
10 45 404600 125000 - - 625000
15 50 606900 125000 697063 912500 762245
Please Note: @ The assumed non guaranteed rates of return chosen in the illustration are
4%p.a. and 8% p.a. The above illustration is an extract of a separate, more detailed benefit
illustration. For full detail, please refer the benefit illustration and product brochure of the above
plan.
Insurance is the subject matter of solicitation. Please read the product brochure for full detail.
Lapse:
A policy which has been terminated for non-payment of premiums. A
policy lapses usually when the premium due is not paid even after the
grace period.
Loyalty additions:
Incentives given by an insurer as an additional benefit to the insured for keeping
the policy in full force throughout the term of the contract. Rates are determined by the
insurer on the basis of its performance.
31
UIN: 512N312V02
32
Assignment: Assignment is the transfer of rights in an insurance policy

from one person to another. It is a means whereby the beneficial interest,
right and title under a life insurance policy get transferred from assignor
(Policyholder) to assignee.
Absolute Assignment: It means the complete transfer of rights. For
example, when the life insurance policy is sold, it essentially is an absolute
assignment
33
34
UIN: 512N297V02
Mortality Charge:
Mortality charge is the actual cost of insuring a life in an insurance policy.
It is calculated with reference to a table of standard annual mortality
charges. This is based on data related to average human mortality rates.
The charges usually depend on the age of the insured. However, actuaries may
adjust the standard rates based on the health and occupation. These are likely to be
lower for younger, healthier individuals, who are not in a risky occupation.
35
36
UIN: 121N103V02
UIN: 121N136V02
37
38
SURVIVAL BENEFIT:
CASH BONUS, This is a with profit plan and participates in the profits of the company¶s life
insurance business. Cash Bonus and Terminal bonus will be declared based on Statutory Valuation
carried out at the end of every financial year. Cash Bonus, if declared, would be expressed as a
percentage of Basic Sum Assured.
DEATH BENEFIT: Higher of A or B Where:
A Sum assured on Death + Accumulated Def. # Cash bonuses if any _ #Terminal Bonus, if declared
B = Min. Death Benefit, which is = 105% of total premiums received upto the date of death.
Illustration
Age 40 years (Male) Sum Assured: 7,28,000/- Sum Assured On Death: 11,00,000/-
Annual Premium Rs.
Premium Paying Term - 7 years

Policy Term - 15 years
1 7 15
Policy Cash # Bonus: Age 55 Policy
holder 1-7 yrs = 20,384/- p.a. Maturity Benefit: holder
age 40 8-15 yrs = 21,476/ p.a. Guaranteed Maturity benefit + age 55
# Terminal Bonus (if any) =
7,78,960 + 68,650 = Rs.8,47,610/-
Life cover for Rs, 11,00,000/
# Bonuses are non-guaranteed benefits that are declared based on the valuation surplus hence could vary.
Insurance is the subject matter of solicitation. Please read the Product brochure for full detail.
39
Illustration
Age 40 years (Male) Sum Assured: 10,00,000/- Sum Assured On Death: 10,00,000/-
Policy & Premium Term 15 yrs
1 15 100
Age 100
Policy Maturity Benefit: Sum assured On Attainment of Age 100 Policy
holder holder
+ Accrued Bonuses + Terminal or death before
age 40 age 55
bonuses (if any) is paid = basic sum assured
Rs.10,00,000 +600000 +90000 Rs.10,00,000 is paid
= 16,90,000/-
Life cover for Rs, 10,00,000/ continues till the age of 100
# Bonuses are non-guaranteed benefits that are declared based on the valuation surplus hence could vary.
Insurance is the subject matter of solicitation. Please read the Product brochure for full detail.
40
UIN: 110N153V01
41
Traditional Non Participating Plan
A non participating plan is one where the policy holder

does not receive any bonuses or add-ons in the form of
dividends declared by the insurer from time to time. As the
name suggests the insurer don’t participate in the
insurance company profit, provides guaranteed benefits.
42
Traditional Non Participating Plan
1. Aditya Birla SunLife Insurance Income Assured ............ 44
2. Aditya Birla SunLife Insurance Guaranteed Milestone ............ 45
3. Bajaj Allianz Assured Wealth Goal ............ 46
4. Bharti Axa life Guaranteed Income Pro ............ 48
5. Edelweiss Tokio Life GCAP ............ 50
6. Edelweiss Tokio Life Premier Guaranteed Income ............ 51
7. HDFC Life Sanchay Plus ............ 53
8. ICICI Pru Guaranteed Income for Tomorrow (GIFT) .......... 54
9. Kotak Guaranteed Savings Plan ............ 56
10. Reliance Nippon Life Super Money Back Plan ............ 58
11. Tata AIA Life Guaranteed Return Insurance Plan ............ 59
12. Tata AIA Life Guaranteed Return Insurance Plan - Single ............ 60
13. Tata AIA Life Fortune Guarantee Plus ............ 62
14. Tata AIA Life Fortune Guarantee Plus - Single ............ 63
15. Tata AIA Life Insurance Smart Income Plus ............ 65
Term Insurance
1. HDFC Life Click2 Protect ............... 67
2. ICICI Pru - iProtect Smart ............... 69
3. Kotak eTerm ............... 70
4. TATA AIA Life Insurance Sampoorna Raksha Supreme ............... 71
Pension Scheme
1. Bajaj Allianz Life Guaranteed Pension Goal .................. 74
2. Bajaj Allianz Life Guaranteed Pension Goal .................. 76
3. TATA AIA Life Insurance Fortune Guaranteed Pension .................. 78

1. HDFC SL ProGrowth Flexi .................. 81
2. Kotak Ace Investment .................. 82
3. TATA AIA Life Insurance Param Rakshakaran .................. 83
4. TATA AIA Life Insurance Smart Sampoorna Raksha .................. 86
43
Non Traditional Participating Plan
44
UIN: 109N089V04
UIN: 109N106V03
45
Choose from multiple options :
Pay Premium for (Years) 5 7 8 10 12
Deferment Period (Years) 0/1/2
Income Period (Years) 25/30
Assured Wealth Maturity Benefit :
Goal - Second Income On maturity, you will receive

1. Sum of all premiums paid (if opted), plus
UIN: 116N170V02
A non-participating, non-linked, life, 2. Last regular guaranteed payout
individual life insurance, savings plan savings Sample Illustration

plan, is one such insurance cum investment You Pay You Get
plan that offers the assurance of regular
Rs. 2 lakh p.a Income of Rs. 24 lakh
income in the future. for 12 Years Rs. 2.78 lakhs + as ROP
p.a for 30 Years
Key Benefits
Regular guaranteed Long term Income up to
Deferment Income Period of
30 years
Period 30 Years
Option of Return of Premiums (ROP) at the 1 -------------------12----------14----------------------44
Rs. 2 Lakh p.a Rs. 24 Lakh
end of Income Period
Paid for 12 Years Policy Term 44 Yrs
Option to Defer Income payouts
Choice of Income Payout date Total Premium Total Benefit
Income Benefit with Life Cover 4.48 times
Rs. 24,00,000 Rs. 1,07,40,000
Tax Benefits
Second Income Death Benefit:
Pay your premiums for the chosen period You will have life cover throughout the Policy
Receive regular guaranteed payouts as a term. On Death of the life assured during the
percentage of Annualized Premium during policy term, the benefit shall be payable to the
the Income Period. nominee in equated monthly instalments for a
You have an option to receive all premiums period of 5 years.
paid at the end of the Income Period.
46
The Death benefit will be higher of –

a. Sum Assured on Death , or
b. 105% of total premiums* paid as on date of death or
c. The prevailing surrender value
The nominee will have an option to receive the future instalments as a Lumpsum, which shall be the
present value of future instalments at a discounted rate.
Premium Min / Max Min / Max.

Policy Term Income Period Min / Max.
Payment Term Age at Entry Age at
(PPT) (in Yrs) (in Yrs) Premium (Rs.)
(PPT) (in Yrs) (Yrs) Maturity (Yrs)
5 5to 50 30,000 to
30to 44 25/30 35 to 99
no limit
7/8/10/12 5to 60
LIFE is a Precious Gift

which needs to be PROTECTED
Plan for insurance

which ensures timely help
when need the most !
47
48
UIN: 130N101V01
Keyman insurance:
Key person insurance, also called keyman insurance, is an important form
of business insurance. In general, it can be described as an insurance policy
taken out by a business to compensate that business for financial losses that would
arise from the death or extended incapacity of an important member of the business. It is
an insurance of standard life insurance or trauma insurance policy that is used for business
succession or business protection purposes.
The policy's term does not extend beyond the period of the key person’s usefulness to the
business. Key person policies are usually owned by the business and the aim is to
compensate the business for losses incurred with the loss of a key income generator and
facilitate business continuity. Key person insurance does not indemnify the actual losses
incurred but compensates with a fixed monetary sum as specified in the insurance policy.
49
UIN: 147N031V01 Morbidity rate: The
morbidity rate is the
frequency or proportion with
which a disease appears in a
population. Morbidity rates are used in
actuarial professions, such as health
insurance, life insurance, and long-term
care insurance to determine the premiums
to charge to customers. Morbidity rates
help insurers predict the likelihood that an
insured will contract or develop any
number of specified diseases and thus
develop competitively-priced insurance
policies in its regulated industry.
50
financial obligations.
Ÿ Option to add riders to enhance the
protection on payment of additional
premium.
Key Benefits:
Under this plan option, a regular stream
of income will be payable post 2 years of
completion of PPT. A level guaranteed
income as a % of Annualized Premium
called Income Benefit Pay-out starting
UIN: 147N072V01 from the third Policy Year falling after the
completion of PPT will be payable in
arrears till Maturity or death of the Life
Plan option: Short Term Income Insured, whichever is earlier, while the
A n I n d i v i d u a l, N o n - L i n ke d, N o n - policy is in-force.
Participating, Savings, Life Insurance Death Benefit:
Product On death of the Life Insured during the
policy term while the policy is in-force,
It is designed to provide a guaranteed Death Benefit equal to Sum Assured on
regular income to self and family, Death is payable and the policy will
provided all due premiums are paid. terminate.
Key Highlights: The Sum Assured on Death at any point
Ÿ Secure the family's financial future
of time, provided the policy is in-force is
through life insurance cover. highest of:
Ÿ 10 times the Annualized Premium
Ÿ Family Income Benefits' option to
ensure that the family's dreams are Ÿ Any absolute amount assured to be
met even in case of unfortunate death paid on death
or diagnosis of covered critical Ÿ 10 times the Annual Premium
illnesses.
Ÿ Guaranteed returns to secure the
51
Edelweiss Tokio Life - Premier Guaranteed Income
The Death Benefit during the entire policy term will not be less than 105% of Total
Premiums Paid till death.
Eligibility:
Ÿ Age Limit: Minimum age limit- 18years/ Maximum Age limit- 65years.
Ÿ PPT: 8/10/12 years.
Ÿ PT: 18/22/26 years.
Illustration:
Vivek is 35-year-old male and buys Edelweiss Tokio Life Premier Guaranteed Income with
Short Term Income plan option. Annualized Premium of Rs. 1,00,000 |Sum Assured on
Death (at inception): Rs. 10,00,000 | PPT – 10 years | PT – 22 years | Premium Paying
Frequency – Annual | Income Benefit Pay-out Frequency – Annual |
On surviving till the date of Maturity, Vivek will get Rs. 20,01,500 in total against total
premium payment of Rs. 10,00,000.
Exclusion:
A condition under which the benefits are not paid is referred to as
exclusion. This is to avoid any misunderstanding of the terms of the policy.
Endowment Plan:
Is a life insurance policy which provides you with a combination of both i.e.: an insurance
cover, as well as a savings plan. It helps you in saving regularly over a specific period of time,
so that you are able to get a lump sum amount on policy maturity, if the policyholder
survives the policy term.
52
53
UIN: 101N134V09
UIN: 105N182V01
54
55
56
UIN: 107N100V01
Kotak Guaranteed Savings Plan (contd...)
Moral hazard: Moral hazard is the risk that a party has not entered into a
contract in good faith or has provided misleading information about its
assets, liabilities, or credit capacity. In addition, moral hazard also may
mean a party has an incentive to take unusual risks in a desperate attempt to earn
a profit before the contract settles. Moral hazards can be present at any time two
parties come into agreement with one another. Each party in a contract may have the
opportunity to gain from acting contrary to the principles laid out by the agreement. Any
time a party in an agreement does not have to suffer the potential consequences of a risk, the
likelihood of a moral hazard increases.
57
58
UIN: 121N098V02
59
UIN: 110N152V02
UIN: 110N152V02
60
Money Back Plans: In a money back plan, the insured person gets a
percentage of sums assured at regular intervals, instead of getting the lump
sum amount at the end of the term. It is an endowment plan with the benefit
of liquidity.
Nominee: Nominee is the person selected by the policyholder to receive the benefit
in case of death of the life insured. It thus gives a valid discharge to the insurer on
settlement of claim under a life insurance policy.
61
UIN: 110N158V02
62
UIN: 110N158V02
63
64
UIN: 110N126V03
65
Term Insurance
Term insurance plans provide life cover to protect your

loved ones at most affordable rates. This is the simplest
form of life insurance. Term plans offer financial security to
your loved ones' future even in your absence.
66
Ÿ Get income payouts from age 60
onwards under Income plus Option.
Ÿ Option to avail cover for Whole of Life.
Term Insurance
Ÿ Get back all premiums paid on survival
till maturity with Return of Premium
Rider option.
Ÿ Waiver of Premium on diagnosis of
Critical Illness under Life & CI Rebalance
option.
Maturity Benefit:
For Life & CI Rebalance & Life Protect Plan
options:
Being a Term Plan, there would be no
maturity benefit unless Return of Premium
Rider is opted for.
UIN: 101N139V01 Income Plus:

For Fixed Term:
Ÿ On Survival until Maturity, Sum Assured
on Maturity will be payable.
Ÿ Sum Assured on Maturity will be equal to Max
HDFC Life Click 2 Protect Life:
(110% of Total Premiums Paid less total
(A Non-Linked, Non-Participating, Individual, Pure
Survival Benefits paid out already)
Risk Premium/ Savings Life Insurance Plan)
For Whole Life: NIL
HDFC Life presents Click 2 Protect Life, as a term Death Benefit:
plan that provides benefits as per altering Life & CI Rebalance : The highest of:
lifestyle and life stage needs and that helps to
• 10 times of the Annualized Premium
stay truly protected.
• 105% of Total Premiums Paid.
Key Features:
• Life Cover SA.
Ÿ Provides comprehensive financial protection
Life Protect : The highest of:
to family.
• 105% of Total Premiums Paid.
Ÿ Option to choose a cover from 3 plan options.
• 10 times of the Annualized Premium.
Ÿ Auto balances Death and Critical Illness
benefits with increasing age under Life & CI • Basic Sum Assured
Rebalance option.
67
Income Plus : The highest of: Life Term : Whole Life
• Sum Assured on Death. Age at Entry Age at Maturity Policy Term
Min Max Min Max Min Max
Term Insurance
• 105% of Total Premiums Paid. (Less total
Survival Benefits paid out till the date of 45 yrs 65 yrs Whole of life
death.) Premium Payment Term
Sum Assured on Death is the higher of: Limited Pay (5, 10, 15 pay)
• 10 times of the Annualized Premium. Income Plus : Fixed Term
• Sum Assured on Maturity. Age at Entry Age at Maturity Policy Term
• Basic Sum Assured Min Max Min Max Min Max
Eligibility Criteria: 30 yrs 50 yrs 70 yrs 85 yrs 70 yrs. 40 yrs.
Plan Option : Life & CI Rebalance Policy Term
Age at Entry Age at Maturity Policy Term Min Regular Pay: 5 years Limited Pay: 6
Min Max Min Max Min Max years
18 yrs 65 yrs 28 yrs 75 yrs 10 yrs. 30 yrs. Max 85 years – Age at Entry
Premium Payment Term Premium Payment Term
Regular Pay, Limited Pay (5 to any PPT less than PT Limited Pay (5, 10 pay)
Life Term : Fixed Term Income Plus : Whole Life
Age at Entry Age at Maturity Age at Entry : Min 45 years
Min Max Min Max Maximum : 10 pay - 50 years / 5 pay - 55 years
18 yrs 65 yrs 18 yrs 85 yrs Age at Maturity
Policy Term Minimum & Maximum : Whole life
Min Regular Pay: 5 years Limited Pay: 6 Policy Term
years Minimum & Maximum : Whole life
Max 85 years – Age at Entry Premium Payment Term
Premium Payment Term Limited Pay (5, 10, 15 pay)
Regular Pay, Limited Pay (5 to any PPT less than PT
Insurability:
The characteristic of being acceptable for insurance is called insurability. The
insurability of an individual or object is ascertained depending upon the norms and
policies of the insurance company. The sum of all conditions and circumstances pertaining
to the insurance applicant, such as health, life expectancy, risk profile, and susceptibility to injury
are judged according to the insurance company's requirements or standards to find out if the individual
is insurable.
68
UIN: 105N151V06
Term Insurance
69
Term Insurance
UIN: 107N104V01
70
Term Insurance
UIN: 110N160V02
Tata AIA Life Insurance Sampoorna Raksha Ÿ Inbuilt payor Accelerator benefit that
Supreme A Non-Linked Non-Participating advances 50% of Basic Sum Assured in
Individual Life Insurance Plan. We all want to event of a Terminal illness diagnosis.
ensure that our loved ones have a Ÿ Option to get Income payouts at age 55,
comfortable life and secured future. We all 60 or 65 onwards for a peaceful life
thrive to provide happiness and security to Ÿ Option to avail medical second
our family. We want to make sure they are opinion/medical consultation/ personal
never short in terms of financial resources to medical case management Flexibility to
live the life of their dreams, thereby choose Policy Term and Premium Paying
providing a strong 'foundation' of financial Term
security for them. Presenting Tata AIA Life Ÿ Lower premium rate for Female lives
Insurance Sampoorna Raksha Supreme Ÿ Enhance your protection with Optional
Plan, an insurance plan that provides Riders
financial protection to your family and offers Ÿ Tax benefits, as per the applicable Income
you the -flexibility to choose the plan that Tax laws
suits your need.
Eligibility Criteria at a Glance
Key Features Plan / Minimum Max. Age at
Ÿ Flexibility to choose from below Death
Max. (Age
Benefit (Age at Maturity
at Entry)
Benefit options: option Entry) (years)
- Life Option Life 18 65 100
- Life Plus Option Life Plus 18 65 100
- Life Income Life Income 30 50 100
- Credit Protect Credit Protect 18 65 95
Ÿ Option for Whole Life coverage (till age Policy Term (in Months)
100 years) Regular Pay Limited Pay
Ÿ Flexibility to receive death benefit payout Min. Max. Min. Max.
as a Lump sum or Income (up to 60 Life 13 984 14 984
months) or both Life Plus 120 480 120 480
Ÿ Option to Increase cover at Important Life Income N/a N/a 240* 840
milestones with Life stage option Credit Protect 60 360 61 360
Ÿ Option to increase Sum Assured through
top-ups
71
*The minimum policy term will be subject to Suppose during the term of policy the life
Term Insurance
the minimum maturity age being at least assured suffers Terminal illness the benefit
equal to 70 years amount equal to 50% of the Base Sum
Premium Payment Term assured (Rs.25 lakhs) is paid out as lump sum
(PPT) (Months) on acceptance of Terminal illness under the
Regular Pay Limited Pay inbuilt Payor Accelerated Benefit, premium
Min. Max. Min. Max. continue to remain payable.
Life 13 984 13 983
In case the life assured dies during the policy
Life Plus 120 480 60 479
term, the stipulated death benefit
Life Income N/a N/a 60 120
Rs.50,00,000/- less any payout under Payor
Credit Protect 60 360 13 359
Accelerated Benefit will be paid out to the
$ This option is available only for 60 and 120 nominee (as per the payout plan chosen)
months under Limited Pay and the policy will terminate.
Example: Mr.X aged 35 year takes the plan
with Life option for Sum assured (death
benefit) of Rs. 50,00,000 lakhs for a term of 25
year with an equal premium paying term.
Term is the simplest Lo w e r c o s t w h e n Term Insurance is It’s a good option for

form of life insurance to compared to other usually a sensible a d d r e s s i n g
understand. modes of insurance. choice for people who requirements that will
are building a family. disappear in time, such
as loan cover insurance.
72
Pension
Scheme
Pension Scheme
UIN: 116N167V02
74
Pension Scheme
Immediate Deferred Deferred
Purchase Immediate Annuity Annuity Life Annuity Life
Age at last (10 year
Price Annuity Life with ROP (10 year
birthday deferment)
(without GST) Life with ROP deferment)
Non-Traditional Plans: Unlike traditional plans, these plans

provide a window of investment in the market and pay out higher
returns. It also presents an opportunity for the investor to partially
withdraw funds and re-apportioned funds along with insurance
coverage that can be increased or decreased as needed. However, these
plans require the more active participation of policyholder as he is responsible
for the investment. Unit Linked Insurance Plans (ULIPs) are the most common
form of non-traditional insurance plans.
75
Pension Scheme
UIN: 116N167V02
Presenting Bajaj Allianz Life Guaranteed Pension Goal which assures your Lifestyle goals by giving
guaranteed income throughout life as per your choice and need.
Key Features
Bajaj Allianz Life Guaranteed Pension Goal is a Non-Participating, Non-linked, Individual/Group

General Annuity Savings/Pure Risk Plan.
Ÿ Guaranteed income throughout life: Your annuity amount is guaranteed at policy

inception and is paid regularly as per your choice and need (Yearly/Half-
yearly/Quarterly/Monthly)
Ÿ Wide range of Annuity Options: Choose from a wide range of Annuity options to meet your
Lifestyle goals
Ÿ Choose when your second innings starts: Annuity starts immediately or after a few years
(from policy inception) as per your choice and need
Ÿ Ensure your family’s lifestyle goals are met even when you are not around: Option
to take Joint life annuity with 50% or 100% annuity payable to your spouse after your death
Ÿ Return of cost (Purchase price): Option to receive Return of Purchase Price (ROP) on
death or as Survival Benefit.
How does the Plan Work?
Step-1 Choose Deferred or Immediate Annuity option. Annuity option has to be chosen at
inception and once opted cannot be changed during the policy term
Step-2 Enter the Purchase price you wish to pay or the Annuity you wish to receive
Step-3 Choose the Annuity payout frequency
Step-4 Receive annuity payouts as per chosen frequency
Annuity Options available under the Plan
You can choose any of the following Annuity options at inception

Ÿ Immediate Annuity: Pay a limp sum and the Annuity pay-out will start immediately, as early
as next month, depending up on the Annuity frequency option chosen by you at inception.
Ÿ Deferred Annuity: Pay a lump sum or regular/limited Premium and Annuity pay-out will
start after the deferment period, chosen by you at inception.
76
Let us look at the benefits available under Annuity option: Life Annuity with Return of
Pension Scheme
Purchase Price (ROP) on death
Under Immediate Annuity: Annuity will be payable to you throughout life and on death the
Purchase price will be retuned to your nominee.
Under Deferred Annuity: Annuity will be payable to you throughout life and on death after the
Deferment period, an amount equal to the Purchase price plus attached Guaranteed Additions
less annuity instalments paid shall be paid to your nominee, subject to a minimum amount equal
to the Purchase price.
Deferred Annuity
Immediate Annuity (Deferment Period = 10 years,
Single premium payment)
Age at last Purchase
birthday Price 3 Option B : Life Option B : Life
Option A: Life Option A: Life
Annuity with ROP Annuity with ROP
Annuity (₹) Annuity (₹)
on death (₹) on death (₹)
50 years / Male 1,71,900 1,54,700 3,28,775 2,94,700
55 years / Male ₹ 25 Lakhs 1,82,300 1,55,200 3,57,250 3,02,125
60 years / Male 1,96,100 1,55,500 3,96,325 3,06,575
Insurance is the subject matter of solicitation Please read the product brochure for full details.
What are the advantages of Life Insurance?
Peace of Mind Wealth

Financial Security Creation
Buy young
Tax Savings Save more
77
Pension Scheme
UIN: 110N161V01
Tata AIA Life Insurance Fortune Return of Purchase Price

Guarantee Pension 4. Deterred Life Annuity (GA-II) and with
Return Life and Joint Life basis
A Non-Linked, Non-Participating Annuity
Plan Plan Options 1 and 2 are available under
Single Pay & Single Life and Joint Life basis
Your retirement years are your second
innings, a new life where you leave behind Plan Options 3 and 4 are available under
your working life and find time for yourself. To Single, Limited and Regular Pay & Single Life
have a worry-free retirement, you need to and Joint Life basis.
plan right, so that you can truly enjoy your Eligibility Criteria
golden years.
Minimum Maximum
Presenting, Tata AIA Life Insurance Fortune

Option 1 & 2:
Guarantee Pension that helps you gain Entry Age 30 yrs
85 years
financial freedom during your second Option 3 & 4:
innings. The plan offers you regular 84 years
guaranteed income for life to help you
manage your expenses post retirement. Premium
Payment Single 1
Term
Key Features Regular/ 5 yrs 12 yrs
Ltd
Ÿ Multiple annuity options to suit your needs
Single Pay 1 year 10 years
Ÿ High purchase price benefit to encourage
Deferment = Premium
you to save more Regular Pay
Period paying term
Ÿ Option to increase annuity through Top-up Limited Pay PPT + 1 PPT + 5 years
premiums
Purchase Corresponding
Ÿ Tax benefits may be applicable on price to minimum No limit #
annuity
premiums paid and benefits received as
per applicable tax laws Annuity Yearly 12,000 No limit #
# Subject to board approved policy

The Annuity Options available to you /
2. Immediate Life Annuity with Return of
group members under this product are:
Purchase Price Option
1. Immediate Life Annuity
Annuity is paid till the annuitants(s) is/are
2. Immediate Life Annuity with Return of alive and annuity payments commence
Purchase Price immediately as per the frequency chosen.
3. Deferred Life Annuity (GA-I) and with Death benefit is Total Premiums Paid till date.
78
Illustration 2 - Age at Entry : 1st Life - 55 Years, 2nd Life - 50 years;
Pension Scheme
Premium Payment Term: Single Pay
Annuity starts immediately 75

55 Age 56 60 70
1st ₹ ₹ ₹ ₹ ₹ ₹ ₹ ₹ ₹ ₹ ₹ ₹ ₹
Life
Annuity starts immediately 75

50 Age 51 55 65
2nd ₹ ₹ ₹ ₹ ₹ ₹ ₹ ₹ ₹ ₹ ₹ ₹ ₹
Life
Pay Single Annuity continues ROP is paid

Premium after death of 1st life on Death of
2nd life &
Policy ceases
Insurance is subject matter of solicitation. Please read the product brochure for full details.
3 Main factors influencing type of Life insurance
1 Family and work situation
Life goals 2
3 Coverage type –Short term or Long term
79
Term Insurance
A Unit Linked Insurance Plan (ULIP) is a product offered by
insurance companies that, unlike a pure insurance policy,
gives investors both insurance and investment under a
single integrated plan.
The insurer pools money from all the policyholders and

invests the same in the funds chosen by them. Once the
money is invested, the total corpus is divided into ‘Units'
with a certain face value. Each investor is then allocated
'Units' in proportion to the invested amount.
Unit Linked Insurance Plan (ULIP)
81
UIN: 101L072V05
82
UIN: 107L064V05
UIN: 110L156V01
Sometimes, a pure term insurance plan, or a The Benefits:

life insurance investment plan aren't enough Life Insurance Cover
to offer a complete and comprehensive Lump sum benefit paid to family in case of
solution to your family. This is where the Tata unfortunate death
AIA Life Insurance Param Rakshak solution
Accidental Death Benefit
comes in and gives you a comprehensive,
Additional Sum Assured in case of Accidental
360-degree protection and coverage, and
Death.
secures the future of your loved ones.
2X Additional Sum Assured in case of
The Param Rakshak solution comprises of
accidental death in public transport.
Tata AIA Life Insurance Smart Sampoorna
Raksha, A Unit-linked, Non-participating, Accidental Total & Permanent
Individual Life Insurance Plan for Savings and Disability Benefit
Protection (UIN:110L156V01) and Tata AIA Benefit payout in case of Total and
Life Insurance Linked Comprehensive Permanent disability due to accident.
Protection Rider, A Non-linked, Non- 2X Bene#t in case of disability due to
participating, Individual Health Rider (UIN: accident in public transport
110A032V02) and Param Rakshak Plus
Criticare Plus Benefit
solution comprises of Tata AIA Life Insurance
40 Critical Illness Conditions covered
SmartSampoorna Raksha, A Unit-linked, Non-
participating, Individual Life Insurance Plan HospiCare Benefit
for Savings and Protection Ÿ Hospital Cash Benefit
(UIN:110L156V01), Tata AIA Life Insurance Ÿ Per day Hospitalization Benefit @ 0.5%
Linked Comprehensive Protection Rider, A of Sum Assured
Non-linked, Non-participating, Individual Ÿ 2X of Per day Hospitalization Benefit for
Health Rider (UIN: 110A032V02) and Tata ICU Benefit
AIA Life Insurance Linked Comprehensive
Return on Maturity at the end of Policy
Health Rider, A Non-linked, Non-participating,
Term.
Individual Health Rider (UIN: 110A031V02).
Fund value on Maturity from the Base Plan
83
Eligibility Criteria :

Min / Max Entry (age last birthday) - 18 years/60 years
Max Age at Maturity (age last birthday) - Base Cover – 100 years
Accidental Death Benefit, Accidental Total and
Permenant Disability Benefit – 85years
Hospicare Benefit and Criticare Plus – 75 years
Coverage Term - 30 or 40 years, subject to the maximum maturity
age (given above)
Premium Payment Term (PPT) - 5 / 10 / 12 and Regular Pay
Rider PPT will be the same as the base plan PPT
(Subject to Max Maturity age of chosen riders)
Minimum Premium - Base Plan Premium: 5 Pay – ` 60,000 p.a.
Others – ` 18,000 p.a
Premium Mode - Annual Only
Sum Assured
Min Max
Base (Life Cover) – Rs. 50 Lakhs Base (Life Cover) – No Limit

ABD and ATPD – Rs. 50 Lakhs ABD and ATPD – Rs. 2 Cr.
HCB – Rs. 10 Lakhs HCB – Rs. 40 Lakhs
Criticare Plus – Rs. 20 Lakhs Criticare Plus – Rs. 1 Cr.
Increase / Decrease in Basic Sum Assured – Not Allowed

Rider SA cannot exceed the Base Sum Assured
Sample Illustration: Param Rakshak Plus Solution
Premium
Payment Term /
5 Pay 40 10 Pay 40 12 Pay 40 Regular Pay / 40
Policy Term –
(Years)
Basic Sum 50 50 50 50
1 Cr. 1 Cr. 1 Cr. 1 Cr.
Assured (BSA) Lakhs Lakhs Lakhs Lakhs
Annual Premium 98039 196078 111111 55556 47170 94340 30675 61350
84
Sum
Rider

Assured
Accidental Equal
Death to BSA 9550 19100 5300 10600 4550 9100 2250 4500
Benefit
Accidental Equal
Total and to BSA
Permanent 5750 11500 3200 6400 2750 5500 1350 2700
Disability
Benefit
Criticare
Plus 2000000 65020 65020 35740 35740 30680 30680 15900 15900
Benefit
Hospicare
1000000 5150 5150 2830 2830 2430 2430 1260 1260
Benefit
Total Premium 183509 296848 102626 166681 87580 142050 51435 85710
Maturity Fund Value
@ 4% (Non – 545244 1090489 668207 1336403 683754 1367509 1426012 2852024
Guaranteed)
Maturity Fund Value
@ 8% (Non – 2442482 6100430 2729974 5851303 2695254 5392403 3717437 7440671
Guaranteed)
*All premiums are subject to applicable taxes, cesses & levies.
Benefit Illustration. ~Some Benefits are guaranteed and some Benefits are variable (non-
guaranteed) with returns based on the future performance of the opted funds and fulfilment of
other applicable Policy conditions. The above illustration has been determined using assumed
future investment returns of 8% and 4% respectively. These assumed rates of return are not
guaranteed and there are no upper and lower limits of what you might get back at Maturity, due to
the fact that the value of your Policy is dependent on a number of factors including future
investment performance.
Insurance is the subject matter of solicitation. Please read the product brochure for full detail.
85
UIN: 110L156V01
86
Insurance offers the most comprehensive
and flexible means to manage the personal financial risk.
Major Risks faced by Individuals

Disability 1
Suffer a prolonged illness 2
Premature death 3
Outlive their resources 4
87
There are various benefits of having a life insurance cover.
Ÿ Peace of Mind/ Financial Security - Having life insurance provides the ultimate
peace of mind. This is because if someone were to meet with their demise, they know
their family and loved ones will have a financial safety net. All of us have some
financial liabilities, but an adequate life insurance cover ensures that your debts or
loved ones will be financially taken care of in the event of death.
Ÿ Wealth Creation - Some life insurance plans also offer the opportunity to create
wealth. Apart from life cover, these policies invest premium in different investment
classes to deliver superior risk-adjusted returns that beat inflation and grow your
corpus.
Ÿ Tax Savings - Life insurance plans offer dual tax benefits. The premiums paid offer
tax deduction under Section 80C of the Income Tax Act. This means up to ₹ 1.5lakh
premium paid annually is deducted from gross income, thus lowering tax outgo.
Separately, the maturity insurance plans may be entirely tax-free. This tax benefit is
under Section 10(10D) of the Income Tax Act.
Ÿ Buy Young, Save More - Life insurance plans give you the ability to lock in low
premium rates while you're young. If you buy the same policy when you are older,
you will be paying a much higher premium compared to, if you bought the same plan
when you were younger.
88
The ratios you need
to understand before
you buy an insurance policy.
1. Persistency ratio
This ratio helps you understand how persistent customers have been in
renewing their policies every year. It is measured at different intervals
—13th month, 25th month, 37th month and 61st month.
It gauges the trust customers have in the long-term products and
services being offered by the insurer.
Persistency ratio is calculated thus:
No.of policyholders paying the premium divided by net active
policyholders, multiplied by 100.
This is an indicator of customer satisfaction. A high ratio indicates a large
pool of satisfied customers. Low persistency ratio indicates inability to
retain customers. Higher the persistency ratio, the better.
“It implies that the associated policyholders are satisfied with the product
portfolio, customer service, post sales service, product utility, returns on
their product, customer loyalty, etc. and are renewing their policies as and
when due.
89
90
91
Age group wise classification of
Insurance requirement
Most of individuals in their 20s think that they don't need

life insurance as it's too early to get insured and they don't
have any dependents yet. These notions are absolutely
wrong. It's never too early to get insured.
There are merits of buying a life insurance plan in 20s.
Ÿ Can enjoy the low premium rates
Ÿ The earlier to start, the better corpus will accumulate
through the policy term
Ÿ Can experiment with higher risk forms of investment
Starting a retirement plan becomes all the more important 20s
in 20s as appetite for savings at this age will set up a
foundation for the savings habit will develop for all the years to come.
Ÿ Consisting primarily of newlyweds and families with

young kids, 30s is the favourite age group of insurance
marketers. 30s is the time for an individual when his own
personal needs take a back seat, giving way to the family
concerns such as financial security of your family, future
planning for their children and so forth.
Ÿ 30s is an ideal age bracket to get insured as an individual is
free of the financial obligations that comes with the
subsequent ages.
Ÿ Individuals in this age group can go for a Term Plan or
30s alternatively a Money Back Plan.. The latter suits those
investors who prefer getting returns at periodic intervals
so as to meet their immediate financial needs.
92
Ÿ The only catch to getting insured in 40s is that an individual
is more burdened than ever as he is stretched between
children's educational expenses and parents' medical
expenses. It is advisable that in this age, a term plan and in
case of looking to buy an insurance-cum-investment plan,
endowment policies can be bought.
Ÿ 40s is perhaps the best time to start planning for
retirement as there would be enough time to collect a
substantial corpus at retirement age.
40s
Ÿ In 50s, children are financially independent, the living costs

are low and life is slow and easy. All in all, there would be no
dependents to worry about.
Ÿ At this age it is best to buy a retirement plan rather than a term
plan at this age. Starting with a retirement plan at this point
will help to attain a sound corpus till the point to get retired.
50s
Ÿ As soon as an individual touches 60s, he begins to get bugged

by 'it's too late to get insured' syndrome. But just like it's never
too early to get insured, it's never too late to get insured. So if
still haven't bought a life plan, better do it now.
Ÿ The goal of insurance is not just financially securing the loved
ones but also to make up for the lost income as well as to pay
off the outstanding loans if any.
60s
93
Ÿ The fact, that most of the insurers have set the upper cap on
the entry age at 65 years, discourages such individuals
even more.
Ÿ In 70s, it becomes more and more difficult to get a decent
insurance cover or even to get the existing policy renewed.
Earlier, most of the insurers set the upper cap of the
renewability age at 75 years.
Ÿ IRDA intervened and made it mandatory for the insurers to
offer lifelong renewability feature.
70s
& above
94
Select the best life insurance plan/
policy in 3 easy steps:
Compare
insurance plans
Calculate the life cover
Engage an insurance advisor
Once the policy holder has identified the need to take life insurance, they should
know about getting some basic steps right to select the best life insurance policy.
Ÿ Engage an insurance advisor:
While this may seem trivial, engaging a reliable and competent insurance
advisor at the initial stage in your quest for life insurance is critical. Most
individuals are not capacitated to take a decision by themselves and need the
expertise of an insurance advisor. We the Integrated make sure to provide the
best insurance advises as per the policy holder.
95
Ÿ Calculate the life cover:
The insurance advisor will help to calculate the amount of life cover – or the
sum assured. He will assess sources of their income, number of dependents,
their debts and liabilities and their expenses based on their lifestyle and arrive
at a life cover. He will also decide the best plan be it – a term plan, endowment
plan, unit-link plan or a combination of plans, to help provide them with an
optimum life cover.
Likewise, if one has other needs like planning for their child's education or
marriage, pension for their retirement or a woman's insurance plan for
women, trust the advisor to do the math and come up with an ideal solution.
Ÿ Compare insurance plans:
Since there are many insurance companies in the market offering a variety of
plans, one need to be sure to select the most suitable one? The insurance
advisor will do the homework by comparing life insurance plans from various
insurers across relevant parameters recommending the most apt plan based
on their needs.
Determining the right insurance coverage for your needs is an important
decision. To help with understanding the types of life insurance policies and
choosing life insurance make sure to seek out for guidance if required..
96
Financial information summary of life insurance companies ( 31.3.2021)
Renewal Premium
Force in Business
Lapsed Policies
Policies inforce
Operating Exp.
Total Premium
New Premium
Share Holders
Policy holders
(SA in crores)
Commission
Equity Cap
Total AUM
(in crores)
(jn crores)
(jn crores)
(in crores)
(in crores)
(in crores)
in Crores
in Crores
Benefits
(’000)
(’000)
AUM
AUM
Insurance
Company
LIC 100 714 34,87,655 34,88,368 2,86,225 7,694 1,01,55,659 1,84,430 2,18,857 4,03,287 22,171 34,990 2,84,655
SBI Life 1,000 8,605 93,936 1,02,541 8,625 252 17,51,891 20,624 29,630 50,254 1,779 2,412 21,493
HDFC 2,021 8,542 90,538 99,080 5,723 185 11,24,819 20,107 18,477 38,583 1,710 4,586 21,781
ICICI Prudential 1,436 10,090 63,573 73,663 5,090 206 12,96,869 13,226 22,507 35,733 1,500 2,688 22,525
Max Life 1,919 3,848 58,185 62,033 4,582 187 8,40,333 6,826 12,192 19,018 1,227 2,701 6,998
Bajaj Allianz 151 10,058 34,860 44,917 3,712 92 2,10,019 6,313 5,712 12,025 580 1,927 6,108
Tata AIA 1,954 2,136 27,711 29,847 2,171 84 5,82,226 4,144 6,961 11,105 1,058 1,734 2,777
Kotak Mahindra 510 3,476 23,604 27,080 2,019 98 2,55,521 5,257 5,844 11,100 523 1,497 4,100
Aditya Birla 1,901 2,445 22,203 24,648 1,970 94 2,67,276 4,564 5,212 9,775 543 1,435 4,785
PNB Metlife 2,013 1,364 19,924 21,288 1,441 66 1,92,794 1,996 4,036 6,033 339 1,009 2,508
Total 13,004 51,277 39,22,189 39,73,466 3,21,559 8,959 1,66,77,406 2,67,486 3,29,427 5,96,913 31,429 54,977 3,77,729
Reliance Nippon 1,196 1,253 17,057 18,310 2,502 77 1,07,913 1,135 3,601 4,736 149 1,041 2,777
Exide Life 1,850 1,107 14,365 15,473 1,601 53 75,503 781 2,544 3,325 212 685 1,721
India First 663 620 10,366 10,986 861 52 48,303 2,051 2,005 4,056 171 593 3,327
Canara HSBC 950 1,208 8,953 10,161 659 48 80,038 2,301 2,815 5,116 294 588 2,054
Star Union Daichi 259 573 8,562 9,135 567 23 41,791 1,164 1,835 2,999 182 390 1,137
Ageas Federal 800 704 7,486 8,190 621 18 49,339 632 1,327 1,959 67 239 952
Bharti AXA 3,086 528 7,445 7,973 681 84 57,159 783 1,498 2,281 156 699 551
Aviva 2,005 641 6,508 7,149 409 11 84,104 220 945 1,165 25 239 993
Shriram 179 635 5,126 5,761 1,037 169 45,613 880 1,138 2,019 123 489 558
Pramerica 374 848 4,345 5,193 337 14 18,771 227 767 994 29 250 386
Future Generalis 1,966 168 4,293 4,461 382 35 28,854 523 799 1,322 42 549 502
Edelweiss Tokio 313 238 2,632 2,870 312 30 49,728 455 793 1,248 106 543 165
Aegon 1,468 40 2,047 2,087 335 11 2,04,026 62 464 526 5 107 310
Sahara 232 291 1,109 1,400 227 0 1,780 0 73 73 3 33 103
Total 15,342 8,856 1,00,295 1,09,151 10,533 623 8,92,923 11,214 20,604 31,818 1,565 6,445 15,534
Grand Total 28,346 60,133 40,22,484 40,82,616 3,32,091 9,582 1,75,70,329 2,78,700 3,50,031 6,28,731 32,994 61,422 3,93,263
97
Analysis of financial information of life insurance companies ( 31.3.2021)
Total premium (%)
Claims Settlement
Total premium (%)
Total premium (%)
Total premium (%)

Average Premium
Total Expenses /
PHF/Total AUM
per policy (Rs.)

Per policy (Rs.)
3 year per rate
5 year per rate
OP. expenses/
Commission /
Sum Assured
Lapse Ratio
persistency
persistency
(%) within
SOL Ratio
Benefits /
Average
30 days
%
%
%
Insurance
Company
LIC 99.98 14,090 3,54,813 2.70 1.76 55.00 48.00 5.50 8.68 70.58 84.76 95.12
SBI Life 91.61 58,265 20,31,159 5.72 2.15 54.34 38.92 3.54 4.80 42.77 51.11 92.79
HDFC 91.38 67,422 19,65,542 5.00 2.01 57.00 43.40 4.43 11.89 56.45 72.77 92.00
ICICI Prudential 86.30 70,200 25,47,787 7.36 2.17 64.45 56.42 4.20 7.52 63.04 74.76 95.85
Max Life 93.80 41,504 18,33,921 4.98 2.02 58.00 50.00 6.45 14.20 36.80 57.45 99.87
Bajaj Allianz 77.61 32,396 5,65,802 3.83 6.66 46.04 35.11 4.82 16.02 50.80 71.64 96.42
Tata AIA 92.84 51,148 26,81,606 4.82 2.04 57.16 39.75 9.52 15.61 25.00 50.14 100.00
Kotak Mahindra 87.16 54,969 12,65,352 5.79 2.90 68.26 50.81 4.71 13.48 36.94 55.13 86.79
Aditya Birla 90.08 49,625 13,56,868 7.35 1.80 48.00 38.00 5.55 14.68 48.95 69.18 99.81
PNB Metlife 93.59 41,866 13,37,938 5.68 1.90 55.84 38.65 5.62 16.72 41.58 63.91 99.87
Total 90.44 48,148 15,94,079 5.32 2.54 56.41 43.91 5.43 12.36 47.29 65.08 95.85
Reliance Nippon 93.15 18,927 4,31,234 3.41 2.45 56.03 39.00 3.15 21.99 58.63 83.76 93.72
Exide Life 92.84 20,764 4,71,544 3.47 2.24 47.65 32.75 6.38 20.61 51.76 78.75 86.64
India First 94.35 47,090 5,60,864 8.98 1.81 50.86 39.63 4.23 14.63 82.04 100.89 94.32
Canara HSBC 88.11 77,676 12,15,210 11.65 3.27 60.33 45.69 5.74 11.48 40.14 57.37 100.00
Star Union Daichi 93.73 52,927 7,37,636 5.08 2.06 47.60 35.65 6.08 13.01 37.92 57.00 79.03
Ageas Federal 91.41 31,519 7,93,975 3.63 3.40 60.87 41.10 3.42 12.20 48.59 64.21 100.00
Bharti AXA 93.37 33,492 8,39,345 12.91 1.78 42.86 37.49 6.85 30.66 24.14 61.66 100.00
Aviva 91.03 28,506 20,57,449 3.11 2.24 60.60 39.07 2.16 20.47 85.24 107.88 97.68
Shriram 88.98 19,461 4,39,754 17.90 1.80 31.05 21.63 6.09 24.22 27.66 57.97 97.66
Pramerica 83.67 29,467 5,56,704 4.35 4.42 77.80 62.91 2.96 25.14 38.81 66.92 85.27
Future Generalis 96.22 34,603 7,55,118 9.67 2.03 32.70 25.54 3.15 41.55 37.96 82.66 92.78
Edelweiss Tokio 91.71 39,990 15,93,157 11.80 2.15 55.75 44.28 8.49 43.50 13.19 65.18 82.55
Aegon 98.10 15,689 60,84,509 3.36 2.41 72.00 39.00 0.96 20.26 58.86 80.07 100.00
Sahara 79.22 3,219 78,285 0.08 9.26 55.05 45.36 3.99 45.15 140.33 189.47 87.56
Total 91.14 32,381 11,86,770 7.10 2.95 53.65 39.22 4.55 24.63 53.23 82.41 92.66
Grand Total 90.79 40,265 13,90,425 6.21 2.75 55.03 41.56 4.99 18.50 50.26 73.75 94.26
98
5% INTEGRATED SOLUTION
for Life insurance and Health insurance
Premium Amount (Rs.) for Life & Health
Age 25 years Age 30 years

(5% Yearly Income)
Monthly Income
Yearly Income
Allocation of
Purpose
Premium
(Rs.)
(Rs.)
Sum Assured
Sum Assured
Rs. in lacs
Rs. in lacs
Premium Premium
25,000 3,00,000 15,000 Term 9,000 30 9,000 30
Health 6,000 4 6,000 4
30,000 3,60,000 18,000 Term 10,800 36 10,800 36
Health 7,200 4.8 7,200 4.8
40,000 4,80,000 24,000 Term 14,400 48 14,400 48
Health 9,600 6.4 9,600 6.4
50,000 6,00,000 30,000 Term 18,000 60 18,000 60
Health 12,000 8 12,000 8
60,000 7,20,000 36,000 Term 21,600 72 21,600 72
Health 14,400 9.6 14,400 9.6
70,000 8,40,000 42,000 Term 25,200 84 25,200 84
Health 16,800 11.2 16,800 11.2
80,000 9,60,000 48,000 Term 28,800 96 28,800 96
Health 19,200 12.8 19,200 12.8
90,000 10,80,000 54,000 Term 32,400 108 32,400 108
Health 21,600 14.4 21,600 14.4
100,000 12,00,000 60,000 Term 36,000 120 36,000 120
Health 24,000 16 24,000 16
99
5% Age 35 years
Sum Assured
INTEGRATED SOLUTION
for Life insurance and Health insurance
Premium Amount (Rs.) for Life & Health
Age 40 years Age 45 years Age 50 years Age 55 years

Sum Assured
Sum Assured
Sum Assured
Sum Assured
Rs. in lacs
Rs. in lacs
Rs. in lacs
Rs. in lacs
Rs. in lacs
Premium Premium Premium Premium Premium
9,000 30 7,500 25 6,750 22.5 6,750 22.5 6,000 20
6,000 4 7,500 3.75 8,250 3.3 8,250 3.3 9,000 3
10,800 36 9,000 30 8,100 27 8,100 27 7,200 24
7,200 4.8 9,000 4.5 9,900 3.96 9,900 3.96 10,800 3.6
14,400 48 12,000 40 10,800 36 10,800 36 9,600 32
9,600 6.4 12,000 6 13,200 5.28 13,200 5.28 14,400 4.8
18,000 60 15,000 50 13,500 45 13,500 45 12,000 40
12,000 8 15,000 7.5 16,500 6.6 16,500 6.6 18,000 6
21,600 72 18,000 60 16,200 54 16,200 54 14,400 48
14,400 9.6 18,000 9 19,800 7.92 19,800 7.92 21,600 7.2
25,200 84 21,000 70 18,900 63 18,900 63 16,800 56
16,800 11.2 21,000 10.5 23,100 9.24 23,100 9.24 25,200 8.4
28,800 96 28,800 80 28,800 72 28,800 72 28,800 64
19,200 12.8 19,200 12 19,200 10.56 19,200 10.56 19,200 9.6
32,400 108 27,000 90 24,300 81 24,300 81 21,600 72
21,600 14.4 27,000 13.5 29,700 11.88 29,700 11.88 32,400 10.8
36,000 120 30,000 100 27,000 90 27,000 90 24,000 80
24,000 16 30,000 15 33,000 13.2 33,000 13.2 36,000 12

EMI (equated monthly instalment) commitment , if any, for housing loan or car loan should be added to the allocated amount
so that the total allocated amount does not exceed 30% of total income.
100
for Life, Health, Car insurance &
Investments (equity & Mutual funds)
(10% Yearly Income)

Monthly Income
Yearly Income
Allocation of
Purpose
Premium
(Rs.)
(Rs.)
Sum Assured
Sum Assured
Rs. in lacs
Rs. in lacs
Premium Premium
25,000 3,00,000 30,000 Term 9,000 30 9,000 30
Health 6,000 4 6,000 4
Vehicle 3,000 3,000
Investments 12,000 12,000
30,000 3,60,000 36,000 Term 10,800 36 10,800 36
Health 7,200 4.8 7,200 4.8
Vehicle 3,600 3,600
40,000 4,80,000 48,000 Term 14,400 48 14,400 48
Health 9,600 6.4 9,600 6.4
Vehicle 4,800 4,800
50,000 6,00,000 60,000 Term 18,000 60 18,000 60
Health 12,000 8 12,000 8
Vehicle 6,000 6,000
101
for Life, Health, Car insurance &
Investments (equity & Mutual funds)
Age 35 years Age 40 years Age 45 years Age 50 years Age 55 years
Sum Assured
Sum Assured
Sum Assured
Sum Assured
Sum Assured
Rs. in lacs
Rs. in lacs
Rs. in lacs
Rs. in lacs
Rs. in lacs
9,000 30 7,500 25 6,750 22.5 6,750 22.5 6,000 20
6,000 4 7,500 3.75 8,250 3.3 8,250 3.3 9,000 3
3,000 3,000 3,000 3,000 3,000
12,000 12,000 12,000 12,000 12,000
10,800 36 9,000 30 8,100 27 8,100 27 7,200 24
7,200 4.8 9,000 4.5 9,900 3.96 9,900 3.96 10,800 3.6
3,600 3,600 3,600 3,600 3,600
14,400 14,400 14,400 14,400 14,400
14,400 48 12,000 40 10,800 36 10,800 36 9,600 32
9,600 6.4 12,000 6 13,200 5.28 13,200 5.28 14,400 4.8
4,800 4,800 4,800 4,800 4,800
19,200 19,200 19,200 19,200 19,200
18,000 60 15,000 50 13,500 45 13,500 45 12,000 40
12,000 8 15,000 7.5 16,500 6.6 16,500 6.6 18,000 6
6,000 6,000 6,000 6,000 6,000
24,000 24,000 24,000 24,000 24,000
55
102
10% INTEGRATED SOLUTION (contd...)
(10% Yearly Income)

Monthly Income Age 25 years Age 30 years
Yearly Income
Allocation of
Purpose
Premium
(Rs.)
(Rs.)
Sum Assured
Sum Assured
Rs. in lacs
Rs. in lacs
Premium Premium
60,000 7,20,000 72,000 Term 21,600 72 21,600 72
Health 14,400 9.6 14,400 9.6
Vehicle 7,200 7,200
70,000 8,40,000 84,000 Term 25,200 84 54,600 84
Health 16,800 11.2 16,800 11.2
Vehicle 8,400 2,520
80,000 9,60,000 96,000 Term 28,800 96 28,800 96
Health 19,200 12.8 19,200 12.8
Vehicle 9,600 9,600
90,000 10,80,000 1,08,000 Term 32,400 108 32,400 108
Health 21,600 14.4 21,600 14.4
Vehicle 10,800 10,800
1,00,000 12,00,000 1,20,000 Term 36,000 120 36,000 120
Health 24,000 16 24,000 16
Vehicle 12,000 12,000
55
103
Sum Assured
Sum Assured
Sum Assured
Sum Assured
Sum Assured
Rs. in lacs
Rs. in lacs
Rs. in lacs
Rs. in lacs
Rs. in lacs
21,600 72 18,000 60 16,200 54 16,200 54 14,400 48
14,400 9.6 18,000 9 19,800 7.92 19,800 7.92 21,600 7.2
7,200 7,200 7,200 7,200 7,200
28,800 28,800 28,800 28,800 28,800
39,900 84 43,050 70 39,375 63 41,213 63 38,194 56
16,800 11.2 21,000 10.5 23,100 9.24 23,100 9.24 25,200 8.4
5,460 3,990 4,305 3,938 4,121
21,840 15,960 17,220 15,750 16,485
28,800 96 28,800 80 28,800 72 28,800 72 28,800 64
19,200 12.8 19,200 12 19,200 10.56 19,200 10.56 19,200 9.6
9,600 9,600 9,600 9,600 9,600
38,400 38,400 38,400 38,400 38,400
32,400 108 27,000 90 24,300 81 24,300 81 21,600 72
21,600 14.4 27,000 13.5 29,700 11.88 29,700 11.88 32,400 10.8
10,800 10,800 10,800 10,800 10,800
43,200 43,200 43,200 43,200 43,200
36,000 120 30,000 100 27,000 90 27,000 90 24,000 80
24,000 16 30,000 15 33,000 13.2 33,000 13.2 36,000 12
12,000 12,000 12,000 12,000 12,000
48,000 48,000 48,000 48,000 48,000

104
15% (15% Yearly Income)
INTEGRATED SOLUTION
Insurance, Investments (equity & Mutual funds) &
Retirement Planning (NPS, Deferred Pension Plans)

Monthly Income
Yearly Income
Allocation of
Purpose
Premium
(Rs.)
(Rs.)
Sum Assured
Sum Assured
Rs. in lacs
Rs. in lacs
Premium Premium
25,000 3,00,000 45,000 Term 9,000 30 9,000 30
Health 6,000 4 6,000 4
Vehicle 3,000 3,000
Retirement Planning 9,000 9,000
30,000 3,60,000 54,000 Term 10,800 36.00 10,800 36
Health 7,200 4.8 7,200 4.80
Vehicle 3,600 3,600
40,000 4,80,000 72,000 Term 14,400 48 14,400 48
Health 9,600 6.4 9,600 6.4
Vehicle 4,800 4,800
105
Insurance, Investments (equity & Mutual funds) &
Retirement Planning (NPS, Deferred Pension Plans)
Sum Assured
Sum Assured
Sum Assured
Sum Assured
Sum Assured
Rs. in lacs
Rs. in lacs
Rs. in lacs
Rs. in lacs
Rs. in lacs
9,000 30 7,500 25 6,750 22.5 6,750 22.5 6,000 20
6,000 4 7,500 3.75 8,250 3.3 8,250 3.3 9,000 3
3,000 3,000 3,000 3,000 3,000
9,000 9,000 9,000 9,000 9,000
18,000 18,000 18,000 18,000 18,000
10,800 36 9,000 30 8,100 27 8,100 27 7,200 24
7,200 4.80 9,000 4.5 9,900 3.96 9,900 3.96 10,800 3.60
3,600 3,600 3,600 3,600 3,600
18,000 18,000 18,000 18,000 18,000
14,400 14,400 14,400 14,400 14,400
14,400 48 12,000 40 10,800 36 10,800 36 9,600 32
9,600 6.4 12,000 6 13,200 5.28 13,200 5.28 14,400 4.8
4,800 4,800 4,800 4,800 4,800
24,000 24,000 24,000 24,000 24,000
19,200 19,200 19,200 19,200 19,200
106
(15% Yearly Income)

Monthly Income
Yearly Income
Allocation of
Purpose
Premium
(Rs.)
(Rs.)
Sum Assured
Sum Assured
Rs. in lacs
Rs. in lacs
Premium Premium
50,000 6,00,000 90,000 Term 18,000 60 18,000 60
Health 12,000 8 12,000 8
Vehicle 6,000 6,000
60,000 7,20,000 1,08,000 Term 21,600 72 21,600 72
Health 14,400 9.6 14,400 9.6
Vehicle 7,200 7,200
70,000 8,40,000 1,26,000 Term 25,200 84 54,600 84
Health 16,800 11.2 16,800 11.2
Vehicle 8,400 2,520
80,000 9,60,000 1,44,000 Term 28,800 96 28,800 96
Health 19,200 12.8 19,200 12.8
Vehicle 9,600 9,600
107
Age 35 years
Sum Assured Age 40 years Age 45 years Age 50 years Age 55 years
Sum Assured
Sum Assured
Sum Assured
Sum Assured
Rs. in lacs
Rs. in lacs
Rs. in lacs
Rs. in lacs
Rs. in lacs
18,000 60 15,000 50 13,500 45 13,500 45 12,000 40
12,000 8 15,000 7.5 16,500 6.6 16,500 6.6 18,000 6
6,000 6,000 6,000 6,000 6,000
30,000 30,000 30,000 30,000 30,000
24,000 24,000 24,000 24,000 24,000
21,600 72 18,000 60 16,200 54 16,200 54 14,400 48
14,400 9.6 18,000 9 19,800 7.92 19,800 7.92 21,600 7.2
7,200 7,200 7,200 7,200 7,200
36,000 36,000 36,000 36,000 36,000
28,800 28,800 28,800 28,800 28,800
39,900 84 43,050 70 39,375 63 41,213 63 38,194 56
16,800 11.2 21,000 10.5 23,100 9.24 23,100 9.24 25,200 8.4
5,460 3,990 4,305 3,938 4,121
42,000 42,000 42,000 42,000 42,000
21,840 15,960 17,220 15,750 16,485
28,800 96 28,800 80 28,800 72 28,800 72 28,800 64
19,200 12.8 19,200 12 19,200 10.56 19,200 10.56 19,200 9.60
9,600 9,600 9,600 9,600 9,600
57,600 57,600 57,600 57,600 57,600
38,400 38,400 38,400 38,400 38,400
108
(15% Yearly Income)

Monthly Income
Yearly Income
Allocation of
Purpose
Premium
(Rs.)
(Rs.)
Sum Assured
Sum Assured
Rs. in lacs
Rs. in lacs
Premium Premium
90,000 10,80,000 1,62,000 Term 32,400 108 32,400 108
Health 21,600 14.4 21,600 14.4
Vehicle 10,800 10,800
1,00,000 12,00,000 1,80,000 Term 36,000 120 36,000 120
Health 24,000 16 24,000 16
Vehicle 12,000 12,000
109
Age 35 years Sum Assured Age 40 years Age 45 years Age 50 years Age 55 years
Sum Assured
Sum Assured
Sum Assured
Sum Assured
Rs. in lacs
Rs. in lacs
Rs. in lacs
Rs. in lacs
Rs. in lacs
32,400 108 27,000 90 24,300 81 24,300 81 21,600 72
21,600 14.4 27,000 13.5 29,700 11.88 29,700 11.88 32,400 10.8
10,800 10,800 10,800 10,800 10,800
54,000 54,000 54,000 54,000 54,000
43,200 43,200 43,200 43,200 43,200
36,000 120 30,000 100 27,000 90 27,000 90 24,000 80
24,000 16 30,000 15 33,000 13.2 33,000 13.2 36,000 12
12,000 12,000 12,000 12,000 12,000
60,000 60,000 60,000 60,000 60,000
48,000 48,000 48,000 48,000 48,000
110
GLOSSARY
LIFE INSURANCE
Annuity
Annuities refer to the regular payments the insurance company will guarantee at some future date. So,
say, after you cross 55, the insurance company will start giving you a monthly or quarterly return. This is
known as an annuity (premium is what you pay them).
This is often done to supplement income after retirement.
Actual Cash Value (ACV)
It is the value of an item at the time it was damaged by the insured event. ACV is calculated as Replacement
Cost Value (RCV) less depreciation.
Age Change
The date on which a person's age, for insurance purposes, changes. In most Life Insurance contracts this
is the date midway between the insured's natural birth dates. On the date of age change, a person's age
may change to that of the last birth date, the nearer birth date, or the next birth date, depending upon the
way in which the rating structure has been established by that particular insurer.
Bonus
This is the amount given in addition to the sum assured.
Reversionary bonus is a bonus that is added to policies throughout the term of the policy. It may or may
not be declared every year. When it is declared, it will not be given to you immediately.
It will be payable as a guaranteed sum to the policyholder either at the end of the policy, or, if death occurs
before that, to the nominee.
This bonus can either be a with-profit bonus or a guaranteed bonus.
A with-profit bonus is linked to the profit of the company. If the company makes a profit, it declares a
bonus in accordance with the profits. The profits are added to your insurance policy and given to you
either on maturity of the policy or to your nominee if death occurs before that.
This bonus will be flexible as it is dependent on the performance of the company. However, once it is
declared, it becomes part of your sum assured.
This is offered purely at the discretion of the insurer and depends on the profits made that year.
As opposed to a with-profit bonus, there is a guaranteed bonus.
This is part of the sum assured. It will be paid to you irrespective of the profits of the company.
Beneficiary
A person who receives the payment of the amount of insurance after the death of the insured.
Blackout Period
The period of time during which a surviving spouse no longer receives survivors benefits (after the
youngest child is no longer eligible) and before he or she is eligible for retirement benefits.
111
Claim
A request for an insurance company to pay for a loss. Claims to your own insurance company are known
as 'first insurance company' while claims made by one person to another person's company are called
'third party claims'.
Claimant
A person who makes a claim against a party based on legal liability.
Coverage
It is the range of protection that you are provided under an insurance policy.
Cash Surrender Value
The amount that is available to the owner if a life insurance policy is surrendered. The amount represents
the cash value minus surrender charges and any outstanding loans due upon cancellation of the policy.
Contingent Beneficiary
A person(s) named to receive policy benefits if the primary beneficiary is deceased at the time the
benefits become payable.
Cost of Insurance
The amount a policy owner pays to an insurer, minus what he or she gets back from the insurer. This
expression is used when determining the true cost of permanent forms of Life Insurance to a policy
owner.
Cash Value Life Insurance
A permanent insurance policy that builds cash value, often described as a savings account within the
policy. Cash value life insurance differs from term insurance, where premiums purchase pure insurance
protection only.
Certificates of Coverage
A statement of coverage, also known as a Certificate of Insurance, that an individual receives when
insured under a group contract. The certificate serves as proof of insurance, and outlines benefits and
provisions.
Contest ability Period
Period of time, generally two years, during which an insurance company can declare a life insurance
contract void because of misrepresentation or concealment by the insured in obtaining the policy. Once
this period has elapsed, the company cannot cancel the policy or refuse to pay claims for any reason other
than nonpayment of premiums.
Deductible
It is the amount you are required to pay before the insurance company begins to pay.
Depreciation
Decrease in the value of an item due to age, usage, wear and tea. Most things decrease in value as they age.
Deferred Premium
The unpaid and yet undue premiums on Life Insurance, paid on other than an annual premium basis.
Dependent Life Insurance
A life insurance benefit which is part of a group life insurance contract which provides death protection to
112
the eligible dependents of a covered employee.
Deposit Premium
The premium deposit paid by a prospective policyholder when an application is made for an insurance
policy. It is usually equal to at least the first month's estimated premium and is applied toward the total
policy premium when billed.
Disability Insurance
A type of policy which provides income benefits to the insured if he or she becomes ill or is injured and can
no longer work. It is also known as disability income insurance.
Disability Benefit
Benefit payable under a Disability Income policy or a provision of some other policy, such as a Life
Insurance contract.
Exclusive
Things that are not covered under the policy.
Face Amount
The amount of death benefit coverage that is purchased under a life insurance policy.
Family Life Insurance Policy
A contract that provides insurance within a single policy for a father, mother, and born and unborn
children. The father's coverage is typically Whole Life Insurance, with the mother and children insured
for smaller amounts of Term Insurance.
Flexible Premium Variable Life
A whole life contract and a security which features flexible premium payments, no guaranteed cash
values and either a minimum guaranteed death benefit or no guaranteed death benefit. Policy values are
dependent on the performance of a separate account
Grace period
It is the amount of time between the payment due date and when the policy will be canceled if payment is
not received.
Grace Period
A prescribed period, usually 30 to 31 days from the premium due date, during which an insurance
contract is in force and the premium may be paid.
Gross Premium
The premium for participating Life Insurance. If an insured elects to use his dividends to pay premiums,
this becomes the net premium when dividends are subtracted from it.
Group Permanent Life Insurance
A form of Life Insurance under which members of a group are provided one of several plans of Permanent
Life Insurance on a group basis instead of the more usual plan of Term Life Insurance.
Human Life Value
A method of determining Life Insurance needs by considering a person's income, expenses, remaining
years of earning capacity, and depreciation in the value of the dollar over time.
113
Insurer and Insured
The person in whose name the insurance policy is made is referred to as the policy holder or the insured.
So, if you have taken an insurance policy, you are the policy holder, the one who is insured.
The insurer is the insurance company that offers the policy.
Joint Insurance
Insurance written on two or more persons with benefits usually payable only at the first death.
Liability insurance
Liability insurance pays the loss of other people when you are responsible for that loss.
Life Insurance
A type of Insurance that guarantees a specific sum of money to a designated beneficiary upon the death of
the insured or to the insured if he or she lives beyond the policy matures.
Long-Term Care Insurance
An insurance contract that pays benefits in the event the insured needs long-term medical care in a
facility other than a hospital.
Maturity Date
The date at which the face amount of a Life Insurance policy becomes payable by reason of either death or
endowment.
Maturity Value
The amount payable to a living insured at the end of an endowment period or to the owner of a Whole Life
policy if he lives past a certain age.
Minimum Deposit Policy
A Cash Value Life Insurance policy having a first-year loan value that is available to borrow against
immediately upon payment of the first-year premium. This is not the case with most Life Insurance
policies, the main reason being high first-year expenses.
Premium
This is the amount you pay to the insurance company to buy a policy.
Peril
It is the cause of the possible loss or damage.
Policy
Policy is the legal document issued by the insurance company that outlines the general terms and
conditions of the insurance.
Policyholder
The one who buys the insurance is called policyholder or insured.
Rider
It is an optional feature that can be added to a policy.
For instance, you may take a life insurance policy and an add on accident insurance as a rider. You will
have to pay an additional premium to avail this benefit.
114
Return of Premium
A rider on a Life Insurance policy providing that, in the event of the death of the insured within a specified
period of time, the policy will pay, in addition to the face amount, an amount equal to the sum of all
premiums paid to date.
Sum Assured and Maturity Value
Sum assured is the amount of money an insurance policy guarantees to pay before any bonuses are
added. In other words, sum assured is the guaranteed amount you will receive.
This is also known as the cover or the coverage and is the total amount you are insured for.
Maturity value is the amount the insurance company has to pay you when the policy matures. This would
include the sum assured and the bonuses.
Let's take an example of an endowment policy.
Age of policy holder 30 years

Cover Rs 2,00,000
Term 20 years
Annual premium Rs 9,000
If the policy holder passes away before the policy matures, the beneficiary gets Rs 2,00,000 along with the
bonus too (if any).
If he is alive when the policy matures, he will get Rs 2,00,000 as well as any bonuses declared during the
tenure of the policy.
Let's say the bonuses amounted to Rs 1,00,000. His maturity value would be Rs 3,00,000 (sum assured +
bonuses).
Surrender Value & Paid-up value
Halfway through the policy, you might want to discontinue it and take whatever money is due to you.
The amount the insurance company then pays is known as the surrender value. The policy ceases to exist
after this payment has been made. Do remember, you will lose out on returns if you withdraw your policy
before time.
Paid-up value is different. If you stop paying the premiums, but do not withdraw the money from your
policy, the policy is referred to as paid up.
The sum assured is reduced proportionately, depending on when you stopped. You then get the amount at
the end of the term.
Survival Benefit
This is the amount payable at the end of specified durations. These amounts are fixed and predetermined.
Let's take an example.
Age of policy holder 30 years

Cover Rs 2,00,000
Term 15 years
Annual premium Rs 18,000
Now the policy promised to give back a portion of the sum assured (10%, 15%, 20%, 25%) every three
years.
115
After 3 years: Rs 20,000
On maturity: Rs 60,000
Should you die during this tenure, your beneficiary will get the entire Rs 2,00,000. Irrespective of
whether or not you have been paid any amount till date.
Term Insurance
The type of Life Insurance policy that provides protection only for a specified period of time. A common
policy period would be one year, five years, 10 years, or until the insured reaches age 65 or 70. It does not
build up any of the non for feiture values associated with Whole Life policies.
Underwriting
The process of selecting risks for insurance and determining in what amounts and on what terms the
insurance company will accept.
Universal Life
A combination flexible premium, adjustable life insurance policy. The premium payer may select the
amount of premium he or she can pay and the policy benefits are those which the premium will purchase.
Or, the premium payer may change the amount of insurance and pay premium accordingly.
116
GENERAL INSURANCE
Actuary
A professional who analyses data, design the insurance products and decides on the premium.
Additional Insured
Normally Lenders, Bankers, Financial Institutions.
Agent
A representative of the insurance company authorized to finalize contracts of insurance and provide
service to the policyholder on their behalf.
All-Risks Policy
Policy with the broadest form of Insurance cover that includes losses from all causes not specifically
excluded in the policy.
Arbitration
Settling of a dispute or differences between parties by a neutral person or panel thus rendering a
judgement as to the responsibility for or extent of a loss.
Assignment
Legal transfer of ownership of a property, or of benefits, right, liabilities, under a contract, from one party
to another.
Assurance
Commonly used in connection with life- policies, an act of assuring the benefits in the case of the event
that will certainly happen, sooner or later.
Assured
Beneficiary of a life insurance policy.
Additional Insured
Normally Lenders, Bankers, Financial Institutions
Bailee - Bailor
Bailee is the one to whom goods are entrusted for a particular purpose, say safe keeping, by another,
called Bailor.
Bailment
Act of delivering goods by the bailor, into the care (not for possession) of someone called bailee.
Bancassurance
Sale of insurance products through the involvement of a bank.
Bill of Lading
Official Document detailing the transfer of goods like item, quantity, value, etc. from a (foreign) supplier
to a buyer. It is issued by the carrier to the shipper.
Blanket Insurance
Form of liability insurance designed to provide coverage for - more than a single piece of property, two or
more locations, or a combination of property and locations, under a single limit.
117
Break Bulk
Shipment of goods packed, usually in small separable units like bales, cases, cartons, drums, etc. but non-
containerized.
Broker
A specialist individual or firm, licensed by the IRDA, who represents buyers of insurance and deals with
various Insurance companies in arranging for the coverage required by their client.
Business Interruption Insurance
Form of liability insurance design to provide coverage for fixed costs and any additional expenses
incurred to the policy holder if his business activities are interrupted due to the occurrence of a peril,
such as a fire.
Captive Insurer
A wholly owned subsidiary of a non-insurance entity established for the purpose of insuring the risks of
its owner/ owners.
Cargo Insurance
It is a sub branch of Transit insurance. It provides coverage to the shipper of the goods against financial
loss if the goods are damaged or lost during shipping whether by land, sea or air.
Cash against Document (CAD)
A transaction in which the title of goods is passed via transfer of documents once the buyer makes the
payment in cash. It is used primarily used in exports.
Catastrophe
Sudden occurrence of an event of a calamitous or disastrous nature. E.g. flood, earthquake
Caveat Emptor
Latin term for “let the buyer beware”. This axiom means that the buyer alone is responsible for checking
the quality of goods he purchases, and that the law will not help if he buys foolishly.
Certificate of Insurance
A document issued by the Insurance Co. to the policyholder certifying the existence of insurance.
Generally, it is issued for Motor and Marine insurances describing in general terms policy provisions for
allowances, co-insurance, deductible, eligibility, etc.
Cession
Amount of insurance transferred to a reinsurer (insurer of insurer) by the original insuring company in a
reinsurance arrangement.
Claim
Formal notification to an insurance company for payment due to loss or damage covered by an insurance
policy.
Claims-Made Policy
Insurance policy in which the insurer must meet claims made only during the time period of the policy.
(irrespective of when the loss occurred as in occurrence based policy). Most liability policies are Claims-
made.
118
Coinsurance
Insurance provision under which risk is shared between several insurers or insurer and insured. In the
latter definition it is more generally called co-pay. The policy will detail the proportion of the risks shared
by each.
Commission
The fee charged by an agent/broker for his services in procuring and servicing the insurance.
Concealment
In the insurance world, it is a conscious act on the part of the applicant/insured to withhold a material
fact from the insurer. It renders the insurance policy void.
Clauses/Provisions
Conditions inserted in an insurance policy that qualify or place limitations on the insurer's promise to
perform.
Consequential Loss policy
A policy that insures against indirect losses, i.e. losses occurring as the consequence of some other loss
that was covered, such as fire. It is similar to the loss of profit policy.
Consideration
The payment of a sum of money from one party (Insured) to the other (Insurer) after which an
agreement is made binding. The term is also used informally to mean any form of payment.
Consignment
An arrangement under which goods are shipped to someone (Consignee), usually to care for or sell on
behalf of the sender (Consignor).
Contract of Insurance
A binding agreement under which the Insurer accepts significant risks from the policyholder by agreeing
to compensate in the case of occurrence of the insured event. A contract of insurance is embodied in a
written document called the policy.
Contractual Liability
Liability arising out of a contract. The extent to which one holds another liable varies from contract to
contract, job to job and so on.
Contractor's All Risks Policy (CAR)
Policy that covers a wide range of perils, normally associated with a construction project.
Contribution
Portion of loss paid by each insurance company in a contract where a risk has been insured twice over.
Contributory Negligence
A behavior that contributes to one's own injury. In such cases the injured party cannot collect any
compensation from someone who supposedly caused the accident. E.g. Careless driving.
Cover Note
A temporary document issued by an insurance company to an applicant usually as an interim cover, often
one month, until a formal Insurance Policy is drawn up and issued.
119
Cross Liability Endorsement
It arises when there is a claim by one insured for which another insured covered by the same policy may
be held liable. This endorsement covers the insured against whom the claim is made in the same manner
as if separate policies had been issued. However, it does not operate to increase the insurance company's
overall limit of liability.
Damaged Arrived value
Market value of the goods in damaged condition.
Debris Removal Clause
It indemnifies for expenses incurred in removal of debris, dismantling or pulling down the damaged parts
of the structure, and shoring up of the structure.
Deductible
An amount which the insured is required and obligated to pay, per claim or per accident, towards the total
amount of an insured loss. Generally the lower the deductible, the higher the Insurance Premium. It may
be compulsory or voluntary.
Depreciation
A reduction in the value of an asset over a period of time due to wear and tear, age or obsolescence. It is
used to determine the actual cash value of property at time of loss.
Directors' and Officers' (D & O) Liability Insurance
Insurance specifically designed to protect a company's directors and officers against third party
litigation. It provides cover for their personal liability arising due to wrongful acts, neglect, misstatement
or errors in their managerial capacity.
Duty of Disclosure
An important element of Insurance contract requiring disclosure of material facts by the insured.
Dynamic Risk
As against pure/static risk, dynamic risk may result either in Profit or Loss for the organization. It arises
from a human decision and is uninsurable.
Earned Premium
The portion of the total premium that relates to an expired period of policy cover.
Electronic Data Interchange (EDI)
Method of transmitting data between organizations using computers.
Errors and Omissions Insurance (E & O insurance)
A Professional liability Insurance that covers court costs and settlements against claims made by clients
for errors and omissions, such as incorrect records or accounting mistakes.
Estimated Maximum Loss (EML)
Used in fire, explosion and material damage insurance policies, it is an estimate of the maximum probable
monetary loss that could be sustained on an insured peril.
Estoppel
The law insists that a person must bear liability for previous actions. Estoppel is generally used to prevent
a party from making an allegation or a denial of responsibility, for example, the parties to a contract
120
cannot subsequently claim that they were unaware of its conditions.
Excess of Loss
A contract between an insurer and a reinsurer by which the reinsurer bears any loss over a certain stated
amount.
Exchange Gain (Loss)
Profit (Loss) made by an importer if there is a favorable (unfavorable) change in the exchange rate.
Expense Ratio
The ratio of a company's operating expenses including acquisition costs to premiums written or earned.
Exgratia Payment
A payment made by a Insurance Co. to policyholders where a claim does not meet the terms and
conditions but the company chooses to make a voluntary payment out of kindness or as a favor, without
recognizing any obligation to make such a payment.
Facultative
Individual risk offered by an insurer for acceptance or rejection by a reinsurer. This policy, when
accepted, provides an insurer with coverage for specific individual risks that are unusual or so large that
they aren't covered in the insurance company's reinsurance treaties.
Fidelity Guarantee Insurance
Commercial insurance that indemnifying employers against financial loss on account of forgery,
defalcation, embezzlement and fraudulent conversion by employees.
Fiduciary
A person who holds something in trust for another.
First Loss Insurance
Partial fire/burglary/ theft insurance in which the full value of the insured item is declared, but a lower
sum is insured (at a consequently lower premium). Generally used where the value of stocks is
considerable and of bulky nature rendering a full loss very unlikely.
Fleet Insurance
Motor insurance policy that covers more than two vehicles from one organization under one policy.
Fortuitous Loss
Unexpected loss that occurs as a result of chance or accident and not by anyone's intention.
Franchise Figure
Similar to deductible, it is an agreed figure below which an insurer does not have to meet a claim. A loss
above the franchise figure is paid in full.
Fronting
The use of an insurer to issue an insurance policy on behalf of a captive insurer without the intention of
bearing any of the risk. The risk of loss is transferred back to the captive insurer with an indemnity or
reinsurance agreement.
General Average
Marine insurance provision whereby a loss, resulting from a deliberate act of sacrifice to save other
121
goods, is shared by the insurers concerned (such as the insurer of a vessel and the insurer of its cargo
where part of the cargo has been jettisoned – and lost – to save the ship).
Glass Insurance
Protection for loss of or damage to glass, glass door, glass windows and glass frontage of buildings.
Gross Negligence
The intentional failure of a legal duty with respect to the rights of others.
Group Insurance
Insurance written on a number of people under a single master policy, issued to their employer or to an
association/society with which they are affiliated.
Hazard
Process/ phenomenon that can endanger life, health property or environment.
Hull Insurance
Insurance of a vessel and its machinery against physical damage caused by certain perils. It applies to
both Aircraft and Ship.
Implied Warranty
A promise, arising by operation of law, that something that is sold will be merchantable and fit for the
purpose for which it is sold (not explicitly written into the contract).
Incurred Losses
Claims paid + loss reserves, associated with a particular period of time.
Incurred-But-Not Reported Reserves (IBNR)
Reserves that are established for the amount owed by the insurer for the claims that have occurred but
yet to be reported.
Indemnification
Compensation for loss/injury, in whole or in part, by payment, repair or replacement.
Indemnity
Principle of Insurance that specifies an insured should not collect more than the actual cash value of a loss
but should be restored to approximately the same financial position that existed before the loss. (Except
in Life Insurance)
Insurable Interest
Financial or other interest, recognized at law, in the life or property covered by an Insurance contract. An
unlimited insurable interest exists in one's own life and the life of a spouse. However, in most cases,
insurable interest is limited to the value of the property or goods, or extent of liability
Insurable Risk
Risk against which insurance cover can be obtained.
Insurance
Form of risk management whereby the insurer agrees to provide compensation to the insured in the
event of a specified occurrence, for example, loss of or damage to property. In return, the insured pays the
insurer a premium, usually at fixed intervals.
122
Insured/Policyholder
Person/Company that holds an insurance policy (a contract with an insurance company). Also called a
policyholder.
Insured Peril
Peril that is specifically stated in an insurance policy as being covered.
Insurer
One that insures. Insurance company or other person or company that undertakes to indemnify someone
against particular risks, usually as defined in an insurance policy and for an insurance premium.
Insuring Clause
The clause in an insurance policy which sets forth the names of the individual covered, property and
location covered, perils covered, inception and termination date.
Intangible Assets
Assets that cannot be seen, touch or physically measured, for e.g., goodwill, honesty, integrity, etc.
Jettison
Throwing overboard of cargo to lighten a vehicle thus preserving property from loss. It is covered under
the marine cargo policy.
Jeweler's Block Insurance Policy
Policy providing coverage of the property of jewelers' and the property of others in their care/ custody
against probable losses.
Joint- and – Several Liability
A designation of liability by which members of a group are either individually or mutually responsible to a
party in whose favor the judgment has been awarded.
Key Man Insurance
Form of business Insurance to cover the life of essential employees in a company. This form of insurance
covers also covers the cost of replacing such personnel at short notice by equally qualified temporary
staff and any loss of profits incurred in the meantime
Knock – for – Knock Agreement
Motor insurance agreement between group of insurers whereby they agree to bear the responsibility for
damage to its own policyholders' vehicles, so long as the policyholder is covered for such damage
regardless of liability.
Lapsed Policy
A policy cancelled for non-payment of premiums.
Larceny
The unauthorized taking, removing, carrying, loading away of another person's property.
Law of Large Numbers
Rule that assumes that the greater the number of exposures, the more closely will actual results approach
the sample results obtained from an infinite number of exposures.
123
Liability
Any legally enforceable obligation.
Liabilities
Portion of a balance sheet which denotes legal obligations of the company, including anticipated future
payments or losses.
Liability Insurance
Incorporated association of insurers providing services worldwide, specializing in marine insurance.
Loading
The amount added to the basic premium to cover expenses, profit and a margin for contingencies.
Loss
Injury/damage sustained by the insured due to a peril covered under the contract of Insurance.
Loss adjuster/Commercial adjuster
Independent claim specialists who calculate the loss payable in a complex claim. They investigate the
incident on behalf of the Insurer.
Loss avoidance
A risk management technique whereby a situation/activity leading to a sure loss is avoided.
Loss control
Action taken by the insured to prevent accident or loss, as suggested by the insurer.
Loss Payable Clause
Clause authorizing payment to someone with an insurable interest in the property, even if he is not the
insured. This is generally to protect the lender in mortgage cases.
Loss Ratio
In insurance, the ratio of claims to total premium for a period. It is a measure of the profitability of the
insurance business.
Loss Reserve
The amount set aside as the estimated cost of claims which may come up in the future.
Marine Insurance
Insurance of ship and its cargo providing indemnity for property loss, damage and injury to third parties.
Marine losses may be of the following types - Hull – damage to or loss of vessel. Cargo – goods that have
been sold and are being shipped to the buyer. Duty/Freight – the cost of transporting cargo. Liability –
damage or injury to third parties
Minor
A person under the age of 18, who cannot legally conduct certain transactions or purchase certain goods.
Misrepresentation
An intentional false, incorrect, improper, or incomplete statement of a material fact.
Moral Hazard
Risk that the party in front has provided misleading information or may take unusual risks in an attempt
124
to earn profit.
Mutual Insurance Company
An insurance company which has no shareholders. Its ownership and control is vested in the
policyholders and portion of surplus earnings are paid to policyholders in the form of dividends.
Named Perils
Perils specifically listed in the policy.
Negligence
Failure to exercise due diligence and care that a reasonable and prudent person is expected to use under
similar circumstances.
Occupational Hazard
Hazards which are inherent in a particular occupation, industry or work environment. To compensate for
the danger involved, people in such jobs are generally paid more.
Overriding Commission
In reinsurance, commission paid to the ceding company which is more than the acquisition cost to allow
for additional expenses.
Package Policy
A combination of two or more basic policies or coverage e.g. Motor Package Policy, Householders
Package, Shopkeepers Policy, Office Package Insurance etc.
Peril
Any event that causes a loss. Perils may be included or excluded in an insurance policy, for example, an
insured peril in a fire policy is fire; an excluded peril is war.
Peril of Nature
In insurance, a class of peril that includes earthquake, flood, hailstones, storm, thunderbolt and
subsidence.
Peril of the Sea
All perils which are unique of transportation and which could not be prevented by reasonable efforts,
including sinking of the vessel, standing, heavy weather, lightening, collision with other vessels or
submerged objects and damage by sea water when caused by an insured peril.
Personal Lines
Property and casualty insurance for individuals or families rather than for business or organizations,
such as auto or home insurance.
Physical Damage
Damage to or loss of the property physically, resulting from collision, fire, theft or other perils.
Policy
The legal document issued by an insurance company to a policyholder, which outlines the conditions and
terms of the insurance, also called the policy contract or the contract
Pollution Liability
Exposure to lawsuits for injury or cleanup costs that result from pollution damage. Pollution liability
insurance is for businesses and contractors who wish to protect against risks associated with
125
construction and ongoing industrial operations, such as broken pipelines, fuel spills and release of toxic
gases.
Pool/ Risk Pool
An organization of insurers or reinsurers through which particular types of risk are underwritten and
premiums, losses and expenses are shared in agreed upon amounts. It is generally for catastrophic risks.
Portability in Insurance
The right to transfer rights and credits when changing Insurance companies.
Premium
The sum paid by the insured to the insurer to keep an insurance policy in force
Probate
Court supervised process of validating or establishing a distribution for assets of a deceased including
the payment of outstanding obligations.
Product Liability Insurance
It covers liabilities against financial loss to a manufacturer, merchant, or distributor because of injury or
damage due to the use of covered product.
Proof of Loss
Documentary evidence given by an insured to prove the validity of the claim. It usually consists of a claim
form completed by the insured, written estimates, receipts, police reports, etc.
Proposal Form
Form filled in by a person wanting to take out insurance. Inaccuracies or omissions (accidental or
deliberate) in a proposal may invalidate any insurance policy issued.
Proposer
Individual or company offering or seeking insurance.
Proximate Cause
It is the immediate effective cause of an insured loss. As defined in the case of Pawsey v. Scottish Union &
National “the active efficient cause which sets in motion a train of events, which brings about a result,
without the intervension of any force, started and working actively from a new and independent source”.
Static/Pure Risk.
A risk that can result in either a break-even situation, or a loss, but never a profit.
Risk Avoidance
An action that removes the chance of an adverse outcome happening.
Risk Control
Measures adopted to minimize the effect of an insurable risk, either before or after a loss occurs.
Risk Reduction
Measures that could reduce the chance of losses occurring or the size of such losses.
Risk Retention
Risk retained by a Insurance Co. because it would cost more to insure against it than the loss itself.
126
Reimbursement
Compensation for damages or losses incurred as a result of an accident or sickness, only to an amount
specified in the policy.
Reinstatement
The restoration of coverage under an insurance policy which has lapsed for non-payment of premiums.
Reinsurance
Insurance taken by the Insurance Co. itself to transfer some of its risk.
Renewal
Continuance of coverage under a policy beyond its original term by the insurer's acceptance of the
premium for a new policy term.
Replacement Insurance
An insurance rider that guarantees an amount of money needed to replace an asset as mentioned in the
policy.
Rider
Optional coverage. It's a provision in an insurance policy allowing for amendments to its terms and/or
coverage.
Risk
The chance of loss.
Salvage
Rescuing people or property from a flood, fire, shipwreck or other disaster.
Salvage Value
An estimated value that an asset will be worth at the end of its useful life.
At Sight Bill of Exchange
Bill of exchange payable on presentation of documents i.e. on sight.
Slip
Document submitted by a broker when insurance business is placed with underwriters at Lloyd's of
London. It includes the name of the insured, the starting date and period of insurance, the property
insured and the period of cover, the premium and commission payable, and any special conditions or
limitations.
Sound Arrived value
Market value of the goods in sound condition
Stop-Loss Insurance
Insurance or reinsurance arrangements against the risk of large losses or severe adverse claim
experience. It limits the loss exposure.
Subrogation
Right of an insurer, having indemnified the insured, to avail himself of any rights and remedies of the
insured, for example, salvage.
127
Sum Insured
Maximum amount an insurance company is liable for, under a particular insurance policy.
Surplus Reinsurance
In reinsurance, it is the amount by which the sum insured exceeds the ceding office's retention. The
ceding co. sends the insurer the fraction of each risk that exceeds their retention limit.
Surplus Treaty
Reinsurance agreement whereby all risks that exceed a pre-determined amount are reinsured.
Surveyor
Person whose job is to inspect the properties (to be insured/ already insured) and report on its condition.
They are often employed by the insurance company.
Subject to average Clause
A condition in the insurance policy suggesting payments for damage/loss will be in the ratio of the value
insured, generally used in cases of under insurance.
Tariff
Insurance premiums set through a collective agreement by members or rating bureau and thus is same
for a given risk or type of insurance.
Third Party
Person mentioned in a contract but not a party to the contract.
Third-party insurance
Third-party insurance gives the insured cover against claims made by a third party (who is not named in
the policy and not a party to it).
Third Party Liability
Liability arising to an insured due to someone who is not party to the contract i.e. other than the insured
or the insurer. This party/person is called the third party and the liability to him/her arising under law or
contract is called third party liability.
Total Loss
Full loss of an Insured item i.e. when the asset/property is completely destroyed or lost and irretrievable.
The full insured value is payable in case of a total loss claim. In motor insurance, if the cost of repairs is
more than 75% of the IDV, it is considered a Total Loss.
Through Bill of Lading
A multi-modal bill of lading issued when different ships/ or different means of transportation such as
aircraft, rail, truck are to be used in delivering shipments from their point of origin to their final
destination.
Theory of Probability
This mathematical theory enables the insurance company to predict potential losses based on a study of
the insured's previous loss experiences.
Underwriter
Financial professional or institution that assesses the risk and establishes the rates of premium
accordingly.
128
Underwriting
Process of assessing proposals / risks for insurance.
Unexpired Risk Reserves
Fund that an insurance company creates to cover a shortfall in its unearned premium reserve.
Unvalued Policy/Open Policy
Insurance policy that doesn't specify the value of the subject matter insured. In the event of a claim, the
insured must prove the actual value of the item.
Utmost Good Faith
Doctrine which states that the information disclosed in the insurance contract by both the parties is in
perfect good faith, concealing nothing. If either party has not acted in the utmost good faith, then the
contract may become void.
Valued Policy
Insurance policy that has assigned values to insured items, the values being agreed by the insurer. In the
event of a claim for total loss, that sum is paid without negotiating.
Void Contract
A contract that has been cancelled due to fraudulent means of obtaining it or intentional concealment/
misrepresentation of risk. Such a contract is deemed in law never to have existed.
Waiver
Surrender of a legal right/ privilege. E.g. waiver of premium, waiver of the right to subrogation, etc.
Warranty
In insurance, it is a promise made by an insured person and included in the insurance contract that
something will, or will not be done; for example, that an alarm system will be maintained and switched
on. Breach of warranty allows an insurer to repudiate claim.
Sea Waybill
A waybill is a non-negotiable receipt issued after receipt of the goods by the carrier. It is not a document of
title.
Wear and Tear
Loss, damage or depreciation in value of an item due to deterioration through normal use rather than
through accident or negligence.
Work in Progress
In accounting, the value of goods currently under manufacture, but not completed at the end of the
accounting period.
129
Contact
130
Contact
Mumbai - Kalyan : B-9, Shri Swamiraj CHS, Shelar Park, Khadakpada Circle, Kadakpada, Kalyan West, Thane Dist. 421 306. Phone: 8591303604 / 8591303606
131
Contact
Connect with us
on Social Media
https://www.facebook.com/IntegratedEnterprises
https://twitter.com/IntegratedTweet
132
Notes
Life Insurance
who should get it?
The sooner you buy life insurance, the less it may cost over time.
Having life insurance makes sense for these individuals:
Life insurance may never be cheaper or easier to come by than now, while
you are young and healthy. Help protect your loved ones today.
Integrated Enterprises (India) Private Ltd.
Phone: 044 2814 0815 www.integratedindia.in
Email : customercare@integratedindia.in

Insurance DigestV

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Insurance DigestV

Uploaded by

Copyright:

Available Formats

Integrated Insurance

Integrated Enterprises (India) Private Ltd.

Insurance planning is a critical component of a comprehensive financial plan

One way of contributing toward our desired purpose is by carrying

Types of Life Insurance

Investment Oriented plans

Savings/ Anticipated Endowment

RISK COVER ONLY

In case of death during the policy

Plan of Insurance where the insured is eligible for death

In case of death Else on

Bonus gets added and

100,000 SA remains constant

Plan of Insurance which has regular payouts during the term

Whole Life Insurance Plan covers you up till 99 years of

Life cover continues along with other benefits till

Pensions are also called Annuities. The annuity in

Lump sum Premium

Some features of ULIPs:

• Choice of investment funds

Human Life Value (HLV) also known as the economic value

Human Live Value Calculator

Current Age 40 Yrs

Desired Retirement Age 60 Yrs

Graduate and Above

Required Life cover to

Annual Income ` 8,00,000 ` 1,90,00,000

Monthly Expense ` 40,000

(eg. Outstanding Loans)

2. Bajaj Allianz Life Flexi Income Goal - Enhanced Benefit .................... 15

3. Bharti Axa life Monthly Income Plan+ .................... 17

4. Bharti Axa Life Unnati : Whole Life Income Option .................... 18

5. Edelweiss Tokio Life - Active Income Plan .................... 20

6. Edelweiss Tokio Life - Smart Lifestyle .................... 22

7. HDFC Life Sanchay Par Advantage .................... 23

8. ICICI Cash Advantage .................... 24

9. ICICI Savings Suraksha .................... 25

10. ICICI Future Perfect .................... 26

11. Kotak Smart Life .................... 27

12. Kotak Premier Income Plan .................... 28

13. Kotak Premier Endowment Plan .................... 30

14. LIC Jeevan Umang .................... 32

15. LIC Jeevan Lakshya .................... 34

16. Reliance Nippon Life Bluechip Savings Insurance Plan .................... 36

17. Reliance Nippon Life Milestone Plan .................... 37

18. SBI Smart Future Choice .................... 38

19. SBI Shubh Nivesh .................... 40

20. Tata AIA Life Insurance - Value Income Plan .................... 41

Traditional Participating Plan

Traditional Participating Plan

Premium Payment Mode - Yearly, Half yearly, Quarterly, Monthly

Cumulative Accrued Total Maturity Benefit (in) Guaranteed

1 36 40460 25000 - - 525000

5 40 202300 125000 - - 625000

10 45 404600 125000 - - 625000

15 50 606900 125000 697063 912500 762245

Assignment: Assignment is the transfer of rights in an insurance policy

DEATH BENEFIT: Higher of A or B Where:

Premium Paying Term - 7 years

Life cover for Rs, 11,00,000/

A non participating plan is one where the policy holder

Unit Linked Insurance Plan

Goal - Second Income On maturity, you will receive