Money Back and Endowment Policy

Members: Amod Gupte Shreeta Rege Rishabh Ruia Paras Sangle Divyakumar Gupta Sheetal Iyer Shishir Jadhav Dnyaneshwar R.

Moneyback Policy
Periodic return of a fixed percentage of the sum assured during policy tenure Policy specific variation in: i. The percentage of sum assured to be received ii. The number of instalments iii. The intervening period between instalments iv. Riders Gives bonuses on the plans The term of the plan varies between 10 25 years

Moneyback Policy
Policy owner outlives term: Receives: Remaining corpus with bonus Event of death before policy maturity: Nominee or legal heirs get the insured sum with bonus Tax benefits under sections 80C and 10(10D) of Income Tax Act, 1961. Popular when only limited investment options were available for investors Now found to be expensive option

Why Yes?
Combination of Insurance with Investment Low Risk Element Guaranteed Returns Full Coverage in Event of Death of Policy Holder

Why No?
Save a little money each month and at the end of the year, you will be surprised at how little you have Ernest Haskins Higher premiums Lower Returns Flexibility in choice premiums and sum assured to suit growing incomes and lifestyle is missing

Premium Calculation
30 year old person
Results Age : 30 Amount Insured :100000 Policy term : 20 (in yrs.) Payment term : 20 (in yrs.) Yearly : 6,480.00 Half yearly : 3,290.00 Quarterly : 1,670.00 Monthly : 584.00

40 year old person

Results Age : 40 Amount Insured :100000 Policy term (in yrs.) Payment term (in yrs.) Yearly Half yearly Quarterly Monthly : 20 : 20 : 6,969.00 : 3,539.00 : 1,796.00 : 629.00

SBI Life: Smart Money Back Insurance

Age Gender Premium Payment Frequency Term(yrs) Sum Assured(Rs) Base Premium Yearly Premium for Riders 30 Female Yearly 12 1000000 102810 Term(yrs) Sum Assured(Rs) Yearly (Rs)

SBI Life - Accidental Total & Permanent Disability Benefit Rider

SBI Life - Accidental Death Benefit Rider

12

1000000

400

12

1000000

500

Aviva's Money Back

Age Gender Premium Payment Frequency Term(yrs) Sum Assured(Rs) Base Premium Yearly Premium for Riders 30 Female Yearly 12 1000000 115,160 Term(yrs) Sum Assured(Rs) 1000000 Yearly (Rs) 600

Reliance Accidental Death and Total 12 and Permanent Disablement Rider

Endowment Policy
An endowment policy is a life insurance contract designed to pay a lump sum after a specified term (on its 'maturity') or on death. Typical maturities are ten, fifteen or twenty years. Endowment policy is type of life insurance policy which provides insurance cover and maturity benefits too. Demise of policyholder- the Sum Assured + Bonus is paid to the beneficiary. On survival - the accumulated amount along with bonuses is paid.

Why Yes?
Under Section 80C you can avail tax benefit, yearly premium (not more than 1lac) will be deducted from taxable income.

Why No?
Endowment policies are debt heavy

Max returns 5% to 6% p.a.

Under Section 10(10D) death No obligation by co. to claim is completely tax free.
Endowment plans have both death and survival benefits. The bonuses accumulate over time to give good maturity lump sum

reveal amount and place of our money invested Bonus not payable in first year Bonus will not compound

Premium Calculation
30 year old person
Results Age Policy term (in yrs.) Payment term (in yrs.) Sum Assured Yearly Half yearly Quarterly Monthly : 30 : 20
: 20

40 year old person

Results Age Policy term (in yrs.) Payment term (in yrs.) Sum Assured Yearly Half yearly Quarterly Monthly : 40 : 20 : 20 :100000 : 5,240.00 : 2,661.00 : 1,351.00 : 473.00

:100000 : 4,896.00 : 2,486.00 : 1,263.00 : 442.00

SBI LIFE : ShubhNivesh Endowment Assurance Plan

Age Gender Premium Payment Frequency Term(yrs) Sum Assured(Rs) Premium Yearly Premium for Riders 30 Male Yearly 25 1000000 36950 Term(yrs) Sum Assured(Rs) Yearly (Rs)

SBI Life - Accidental Total & Permanent Disability Benefit Rider

SBI Life - Accidental Death Benefit Rider

25

1000000

2950

25

1000000

500

Reliance Endowment Plan

Age Gender Premium Payment Frequency Term(yrs) Sum Assured(Rs) Premium Yearly Premium for Riders 30 Male Yearly 25 1000000 34860 Term(yrs) Sum Assured(Rs) 1000000 1000000 Yearly (Rs) 1,103 4,688

Reliance Accidental Death and Total 25 and Permanent Disablement Rider Reliance Critical Conditions Rider 25

Money Back Plan Return a percentage of sum assured during policy period Annual premium paid is higher Lower return as compared to endowment plan Higher liquidity

Endowment Plan Sum assured is returned in lump sum at maturity Annual premium paid is lower Higher return as compared to money back plan No liquidity

End of Presentation