Insurance &its types

Life Insurance Policies at a

glance
 Term Insurance
• The Term Insurance policy is a Plain Vanilla Insurance Plan which
offers financial help to the family in case of Insured’s demise only
during a limited term/tenure of the plan.
• No benefits are received at maturity.
• Premium rates which are very low.
• Now Insurance Companies have brought in Premium Back Term
Plans wherein you get benefits at the maturity of the term even if
you don’t make any claims, however this feature tends to increase
the overall Premium amount.
HDFC-Standard Life - Term Assurance Plan
Met Life - Met Suraksha Plus
Aviva Life Insurance - Life-Shield
TATA-AIG Life Insurance - TATA-AIG Life-Assure
Max-New York Life Insurance - Level Term Policy
LIC – Anmol Jeevan
Kotak Life - Premium Return Plan
SBI Life - SBI Life Swadhan
ICICI-Prudential - Pure Protect
 Endowment plans:
• The Endowment Plans are basically saving plans which offer Insurance
against the Insured’s death during the term of the plan.
• Endowment Plans provide benefits when the policy expires.
• In the case of the Insured’s death his family receives the sum
assured/stipulated coverage along with the accumulated profits/bonus.
• When the Insured survives the term period he receives the life coverage
plus the profits & bonuses.

HDFC-Standard Life - Endowment Assurance Plan

Met Life - Met Suvidha
Aviva Life Insurance - Life Saver
TATA-AIG Life Insurance - Assure Golden Years Plans
Max-New York Life Insurance - Life Gain
LIC – Jeevan Anand
Kotak Life - Endowment Plan
SBI Life - SBI Life Sudarshan
ICICI-Prudential - Save n Protect
 Whole Life Insurance :
• The Whole Life Insurance Plans are Permanent Insurance Plans
which run as long as the Policy Holder is alive.
• The Insured pays the premium amount throughout his life time.
• The beneficiary of the policy receives the coverage amount plus the
interest & accumulated bonus only at the time of Insured’s death.
Following are the Whole-Life Insurance Plans
HDFC-Standard Life - Single Premium Whole Life Plan
Met Life - Met 100- Limited Pay Whole life
Aviva Life Insurance - Life Long
TATA-AIG Life Insurance -
Max-New York Life Insurance - Whole Life Participating
LIC – Jeevan Tarang
Kotak Life - Eternal Life Plan
 Retirement Plans :
• These are basically called savings or annuity plans wherein the Policy holder saves
for his retirement by accumulating a corpus which is received at the time of the
retirement.
• The policy holder either pays in lump sums or at regular intervals over a certain
period of time.
• There are two types of annuity Plans in the market – the Immediate Annuity & the
Deferred Annuity, the former is normally for those whose retirement is imminent
wherein one invests a lump sum amount & start receiving the annuity immediately.
On the other hand in the Deferred Annuity, you can start saving for retirement at the
young age & accumulating your corpus with regular premium payments over a period
of time called deferment period, post that you can start your annuities as per the
policy.
Following are the Retirement Plans
HDFC-Standard Life - Unit-Linked Pension Maximiser
Met Life - Met Advantage Plus - Unit-linked
Aviva Life Insurance - Secure Pension
TATA-AIG Life Insurance - Tata AIG Life Assure Golden Years Plan
Max-New York Life Insurance - Smart Invest Pension
LIC – Jeevan Nidhi
Kotak Life - Retirement Income Plan
SBI Life - SBI Life Horizon
ICICI-Prudential - Life Stage Pension
 Children Insurance Plans :
• These plans act as an important saving vehicle for your child’s future
helping your child at important milestones of his/her life such as
Graduation, higher studies, MBA & at your daughter’s wedding.
• The Child Plans by Insurance Companies play a monetary shield in such
time when you want your child’s dream come into a reality & help them
prove their talents & excel in their career.
• In a nutshell these plans offer financial security to children in the form of
savings combined with life insurance by paying at regular intervals so that
the money available to your child at pre-determined stages.
Following are the Child Insurance Plans
HDFC-Standard Life - Unit-Linked Young Star Plan
Met Life - Met Little Star
Aviva Life Insurance - Young Scholar
TATA-AIG Life Insurance - StarKid Child Endowment
Max-New York Life Insurance - Smart Steps
LIC – Jeevan Anurag
Kotak Life - Child Advantage Plan
SBI Life - SBI-Life Scholar
ICICI-Prudential - Smart Kid ULIP
 Unit Linked Insurance Plans
(ULIPs)
• ULIP is an investment vehicle combined with the feature of life insurance
coverage & tax benefits.
• Thus offering twin benefit of risk cover & investing in the market-linked
instruments, however the policyholder has to borne the risk related with
stock markets.
• You have the option of spending in numerous funds varying from 100% Debt
Funds to 100% Equity Funds.
• The ULIPs should be bought with lot of care as they have upfront charges
varying from company to company which range from 10-40%.
Following are the ULIPs
HDFC-Standard Life – Unit-Linked Wealth Maximiser
Met Life – Met Smart Gold
TATA-AIG Life Insurance - Invest Assure
Max-New York Life Insurance - Life Maker
LIC – Market Plus
Kotak Life – Kotak Smart Advantage
SBI Life – Unit-Plus
ICICI-Prudential - Life Time Gold
Bajaj-Allianz– Unit-Gain
 What is Health Insurance?

• The Health Insurance is a policy which

covers you & your family against medical
expenses due to sickness, accident etc.
The Insured in return has to pay a regular
premium to the insurer.
 Health Insurance Plans
• Health Insurance Plans are segregated into three categories, firstly the Mediclaim
Plans by Non-Life or General Insurance Companies, secondly the Hospitalization
Cash Policy by both Life & Non-Life Insurers and thirdly the Critical Care Plans
offered by both Life & Non-Life Insurers.
• Mediclaim Policy is basically a reimbursement plan offered by General Insurers
wherein the insured gets reimbursed of the total bill amount of the medical expenses
to the extent of an agreed sum assured. It includes the room charges, ICU charges,
surgery & doctor charges etc. It includes a lot of exclusions which the policy holder
must read before buying the Mediclaim. The Mediclaim includes the following two
further categories:
1) Family Floater Plan: It is a very common plan these days which covers your entire
family under one premium payment giving coverage to the family members together.
It covers individuals in the age group between 90days and 55years.
2) Group Mediclaim Insurance: It is the second variant of Mediclaim which covers a
group of individuals simultaneously. This form of insurance includes the category of
Employer’s Health Insurance Cover wherein the sum assured normally varies
between Rs. 15,000 and Rs.5, 00,000.
 Health Insurance
Hospitalization Cash Policy Insured gets pre-determined cash benefit on a
daily basis irrespective of the hospitalization expenses being incurred.
TATA-AIG General Insurance & Royal Sundaram offer Hospital cash benefit
plan among Non-Life Insurers.
• Critical-Care Plan: It is offered by both Life & General Insurers covering an
individual for certain specified critical illnesses like cancer, stroke etc.

• Health Insurance Tax Benefits

Health Insurance products are eligible for tax benefits under section 80D of
the Income Tax Act, 1961. Premium paid under health insurance holds a tax
deduction upto Rs 15,000 for you, your spouse and dependent children.
Further more you can also claim another Rs. 15, 000 for tax deduction for
your parents, in case of senior citizens (65 years or more) the above
deductions are increased to Rs. 20,000
 Auto Insurance

• Risks coverage:
• There are two variants of Motor Insurance first is the Liability Insurance (also called
Third Party Policy) covering bodily injury to the third party & the second policy is
Comprehensive Policy which covers loss to insured’s vehicle in addition to the Third
Party insurance. It is mandatory to acquire the Third Party Insurance.
1). Damage to vehicle: Motor Insurance covers you against any loss or damage
causing by the following:
Natural Calamities:
Fire, explosion, self ignition or lightning
Earthquake (fire and shock damage)
Flood, typhoon, hurricane, storm, tempest, inundation, cyclone, hailstorm, and frost.
Landslide and rockslide.
Man made Calamities:
Burglary housebreaking or theft ,Riot and strike, malicious act, and terrorist activity
Whilst in transit by road, rail, inland-waterway, lift, elevator or air
 Auto Insurance

• 2). Third Party Liability: It covers any damage or loss to the third party in
terms of injury or damage caused to the property.
3). Add on Covers: You can extend your policy by paying the extra
premium & covering the following risks:
Damage to the Electrical / Electronic fittings not part of standard equipment
of the vehicle such as stereos, fans, air-conditioners etc.
Damage to the CNG/LPG Fuel Kit System
Personal accident cover under private car policies for passengers & paid
driver
Legal liability to employees while traveling or driving (not as paid driver)
 Home insurance
• Home insurance provides a cover for house property against hazards from natural
calamities hitting the normal man like earthquakes, tsunami, floods etc.
The covered elements include losses to your home, its contents, or loss of
other personal possessions of the homeowner.
The home insurance policy is usually a term contract which is for a fixed period of
time. If the insured lives in an earthquake zone area then the premium is likely
to increase.
•
The insured is given an option to insure the building structure or opt for the contents
or both. Usually, fire, malicious damage, earthquake, explosion, storm, cyclone,
landslides, rock slides and burglary are covered.

• In case of theft, the contents of the home are also covered including loss of jewelry,
silver articles and precious stones.
 Basic Features & Coverage:

• The basic feature of the policy is the protection of the building and its contents
from hazards, such as fire, lightning, explosion, terrorist acts and earthquake
etc.
• The second feature includes Protection against burglary and cover for jewellery
and other valuables by paying additional premium.
• The other features include protection for breakage of plate glass, baggage loss,
and breakdown of domestic appliances /electronic gadgets, such as televisions,
VCRs and DVD players as well as a personal accident insurance.
•
Home Insurance is different from Home loan insurance
•
Home loan insurance cover is a plan that protects your home loan in case of any
unforeseen event happens to the borrower. In case of any unforeseen event the
dependent family members will be supported by the home loan insurance cover,
whereas the Home Insurance covers the house & its contents against various
hazards.