Etica Wealth Management Pvt Ltd - Insurance Planning

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Risk Planning

A simple way to invest in equity and create wealth

INDEX

Origins of Insurance

Life insurance Industry in India

Types of Life Insurance Policies

Term Insurance Policy

Whole Life Policy

Endowment Policy

Money Back Policy

Unit-Linked Insurance Plans (ULIPS)

Annuities & Pension Plan

Riders

Term Plan Comparison

FAQs on Life Insurance

Myth Busters

General Insurance Industry

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RisksRisksRisksRisks andandandand uncertaintiesuncertaintiesuncertaintiesuncertainties areareareare partpartpartpart ofofofof life'slife'slife'slife's greatgreatgreatgreat adventureadventureadventureadventure --------

accident,accident,accident,accident, illness,illness,illness,illness, theft,theft,theft,theft, naturalnaturalnaturalnatural disasterdisasterdisasterdisaster ---- they'rethey'rethey'rethey're allallallall builtbuiltbuiltbuilt intointointointo

thethethethe workingworkingworkingworking ofofofof thethethethe universe,universe,universe,universe, waitingwaitingwaitingwaiting totototo happenhappenhappenhappen....

InsuranceInsuranceInsuranceInsurance thenthenthenthen isisisis man'sman'sman'sman's answeransweransweranswer totototo thethethethe vagariesvagariesvagariesvagaries ofofofof lifelifelifelife.... IfIfIfIf youyouyouyou

cannotcannotcannotcannot beatbeatbeatbeat manmanmanman----mademademademade andandandand naturalnaturalnaturalnatural calamities,calamities,calamities,calamities, well,well,well,well, atatatat

leastleastleastleast bebebebe preparedpreparedpreparedprepared forforforfor themthemthemthem andandandand theirtheirtheirtheir aftermathaftermathaftermathaftermath....

PROCESS OF ANALYSING INSURANCE NEED

Identifications of Risks

Assessing Risk

Manage & Control the risk

Risk avoidance

Risk Reduction

Risk Retention

Risk transfer

Monitor & Review

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COMMON RISKS FACED BY US

Death (Loss of Income)Death (Loss of Income)Death (Loss of Income)Death (Loss of Income)

Disability (Loss of Income temporarily)Disability (Loss of Income temporarily)Disability (Loss of Income temporarily)Disability (Loss of Income temporarily)

Critical Illness (High treatment charges)Critical Illness (High treatment charges)Critical Illness (High treatment charges)Critical Illness (High treatment charges)

Illness & injuries (Hospitalization expenses)Illness & injuries (Hospitalization expenses)Illness & injuries (Hospitalization expenses)Illness & injuries (Hospitalization expenses)

House: Fire, theft, calamityHouse: Fire, theft, calamityHouse: Fire, theft, calamityHouse: Fire, theft, calamity

Motor: Accidents, theft, calamityMotor: Accidents, theft, calamityMotor: Accidents, theft, calamityMotor: Accidents, theft, calamity

ORIGINS OF INSURANCE

InsuranceInsuranceInsuranceInsurance inininin IndiaIndiaIndiaIndia cancancancan bebebebe tracedtracedtracedtraced backbackbackback totototo thethethethe VedasVedasVedasVedas.... ForForForFor instance,instance,instance,instance, yogakshema,yogakshema,yogakshema,yogakshema,

thethethethe namenamenamename ofofofof LifeLifeLifeLife InsuranceInsuranceInsuranceInsurance CorporationCorporationCorporationCorporation ofofofof India'sIndia'sIndia'sIndia's corporatecorporatecorporatecorporate headquarters,headquarters,headquarters,headquarters, isisisis

derivedderivedderivedderived fromfromfromfrom thethethethe RigRigRigRig VedaVedaVedaVeda.... TheTheTheThe termtermtermterm suggestssuggestssuggestssuggests thatthatthatthat aaaa formformformform ofofofof "community"community"community"community

insurance"insurance"insurance"insurance" waswaswaswas prevalentprevalentprevalentprevalent aroundaroundaroundaround 1000100010001000 BCBCBCBC andandandand practisedpractisedpractisedpractised bybybyby thethethethe AryansAryansAryansAryans....

LifeLifeLifeLife insuranceinsuranceinsuranceinsurance hadhadhadhad itsitsitsits originsoriginsoriginsorigins inininin ancientancientancientancient Rome,Rome,Rome,Rome, wherewherewherewhere citizenscitizenscitizenscitizens formedformedformedformed burialburialburialburial clubsclubsclubsclubs

thatthatthatthat wouldwouldwouldwould meetmeetmeetmeet thethethethe funeralfuneralfuneralfuneral expensesexpensesexpensesexpenses ofofofof itsitsitsits membersmembersmembersmembers asasasas wellwellwellwell asasasas helphelphelphelp survivorssurvivorssurvivorssurvivors bybybyby

makingmakingmakingmaking somesomesomesome paymentspaymentspaymentspayments....

MarineMarineMarineMarine InsuranceInsuranceInsuranceInsurance (Europe)(Europe)(Europe)(Europe) //// FireFireFireFire InsuranceInsuranceInsuranceInsurance (London(London(London(London fire)fire)fire)fire)

TheTheTheThe governmentgovernmentgovernmentgovernment decideddecideddecideddecided totototo nationalizenationalizenationalizenationalize thethethethe lifelifelifelife assuranceassuranceassuranceassurance businessbusinessbusinessbusiness inininin IndiaIndiaIndiaIndia.... AsAsAsAs aaaa

result,result,result,result, TheTheTheThe LifeLifeLifeLife InsuranceInsuranceInsuranceInsurance CorporationCorporationCorporationCorporation ofofofof IndiaIndiaIndiaIndia waswaswaswas setsetsetset upupupup inininin 1956195619561956 totototo taketaketaketake overoveroverover

aroundaroundaroundaround 250250250250 lifelifelifelife companiescompaniescompaniescompanies....

TheTheTheThe InsuranceInsuranceInsuranceInsurance RegulatoryRegulatoryRegulatoryRegulatory &&&& DevelopmentDevelopmentDevelopmentDevelopment Authority,Authority,Authority,Authority, anananan autonomousautonomousautonomousautonomous insuranceinsuranceinsuranceinsurance

regulatorregulatorregulatorregulator setsetsetset upupupup inininin 2000200020002000

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LIFE INSURANCE INDUSTRY Life Insurance Industry was liberalized in the year 1999Life Insurance Industry was liberalized in the year 1999Life Insurance Industry was liberalized in the year 1999Life Insurance Industry was liberalized in the year 1999----2000.2000.2000.2000.

Currently there are 24 players in the Life Insurance Industry.Currently there are 24 players in the Life Insurance Industry.Currently there are 24 players in the Life Insurance Industry.Currently there are 24 players in the Life Insurance Industry.

22 Insurance companies have JVs with foreign partners.22 Insurance companies have JVs with foreign partners.22 Insurance companies have JVs with foreign partners.22 Insurance companies have JVs with foreign partners.

LIC and Sahara Life Insurance company do not have JVs.LIC and Sahara Life Insurance company do not have JVs.LIC and Sahara Life Insurance company do not have JVs.LIC and Sahara Life Insurance company do not have JVs.

All the major international players are present in the Indian Insurance market.All the major international players are present in the Indian Insurance market.All the major international players are present in the Indian Insurance market.All the major international players are present in the Indian Insurance market.

A high capital intensive industry A high capital intensive industry A high capital intensive industry A high capital intensive industry ---- Rs.31,437 Cr deployedRs.31,437 Cr deployedRs.31,437 Cr deployedRs.31,437 Cr deployed

Foreign partners have brought in capital of around Rs.5,053 Cr as FDI.Foreign partners have brought in capital of around Rs.5,053 Cr as FDI.Foreign partners have brought in capital of around Rs.5,053 Cr as FDI.Foreign partners have brought in capital of around Rs.5,053 Cr as FDI.

India has the largest inIndia has the largest inIndia has the largest inIndia has the largest in----force policies in the world.force policies in the world.force policies in the world.force policies in the world.

SNAPSHOT OF INDIAN LIFE INSURANCE INDUSTRY

Parameter FY 99-00 FY 06-07 FY 07-08 FY 09-10 FY 10-11

(provisional)

Number of players 1 16 18 23 24

Capital Deployed (Rs. Cr) 5 9,485 16,692 28,943 31437

Branches 2,048 5,373 8,913 12,018 11465

Employees (in Lacs) 1.23 1.87 2.54 2.70 2.42

Individual Agents (in Lacs) 7.14 19.93 25.20 29.78 26.47

New Business Policies (In Cr) 1.69 4.61 5.08 5.32 4.81

In force Policies (In Cr) 10.14 22.70 25.76 30.40 32.54

Indias share of world premium 0.50% 1.53% 1.83% NA NA

Penetration as % of GDP 1.39% 4.1% 4.0% 4.90* NA

Total Death Benefit paid(Rs.Cr) NA 4,794 5,288 8,385 10,270

Total Maturity claim paid(Rs. Cr) NA 34,356 34,543 NA NA

Over 70% of the branches are located in Class C cities or lower

Source: IRDA, Life Insurance Council

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FAQS ON LIFE INSURANCE

What is Life Insurance? What is Life Insurance? What is Life Insurance? What is Life Insurance?

Do you need life insurance?Do you need life insurance?Do you need life insurance?Do you need life insurance?

How much does life insurance cost?How much does life insurance cost?How much does life insurance cost?How much does life insurance cost?

How much do I insure myself for?How much do I insure myself for?How much do I insure myself for?How much do I insure myself for?

What will I receive on maturity of my policy?What will I receive on maturity of my policy?What will I receive on maturity of my policy?What will I receive on maturity of my policy?

Are there any advantages in buying insurance at an early age?Are there any advantages in buying insurance at an early age?Are there any advantages in buying insurance at an early age?Are there any advantages in buying insurance at an early age?

How do I buy a policy?How do I buy a policy?How do I buy a policy?How do I buy a policy?

Where can I get all the relevant information?Where can I get all the relevant information?Where can I get all the relevant information?Where can I get all the relevant information?

TYPES OF LIFE INSURANCE POLICIES

Term Insurance PolicyTerm Insurance PolicyTerm Insurance PolicyTerm Insurance Policy

Whole Life PolicyWhole Life PolicyWhole Life PolicyWhole Life Policy

Endowment PolicyEndowment PolicyEndowment PolicyEndowment Policy

Money Back PolicyMoney Back PolicyMoney Back PolicyMoney Back Policy

UnitUnitUnitUnit----Linked Insurance Plans (ULIPS)Linked Insurance Plans (ULIPS)Linked Insurance Plans (ULIPS)Linked Insurance Plans (ULIPS)

Annuities & Pension PlanAnnuities & Pension PlanAnnuities & Pension PlanAnnuities & Pension Plan

RidersRidersRidersRiders

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TERM INSURANCE POLICY

Provides cover for a specific period onlyProvides cover for a specific period onlyProvides cover for a specific period onlyProvides cover for a specific period only

Premium is very low. Premium is very low. Premium is very low. Premium is very low.

No returns/refund of premiumNo returns/refund of premiumNo returns/refund of premiumNo returns/refund of premium

No investment elementNo investment elementNo investment elementNo investment element

100% Risk Cover100% Risk Cover100% Risk Cover100% Risk Cover

Sum assured paid on deathSum assured paid on deathSum assured paid on deathSum assured paid on death

Best policy for adequate life coverBest policy for adequate life coverBest policy for adequate life coverBest policy for adequate life cover

Buy based on life insurance need analysisBuy based on life insurance need analysisBuy based on life insurance need analysisBuy based on life insurance need analysis

WHOLE LIFE POLICY

Pays either at death or maturityPays either at death or maturityPays either at death or maturityPays either at death or maturity

Maturity usually 100 years age.Maturity usually 100 years age.Maturity usually 100 years age.Maturity usually 100 years age.

Premium paid for life time Premium paid for life time Premium paid for life time Premium paid for life time

Works for estate planning as benefits are generally enjoyed Works for estate planning as benefits are generally enjoyed Works for estate planning as benefits are generally enjoyed Works for estate planning as benefits are generally enjoyed

by familyby familyby familyby family

Very High Commission (Very High Commission (Very High Commission (Very High Commission (uptouptouptoupto 35%)35%)35%)35%)

Not Very flexibleNot Very flexibleNot Very flexibleNot Very flexible

Expected Expected Expected Expected RetunRetunRetunRetun : 4 : 4 : 4 : 4 6%6%6%6%

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ENDOWMENT POLICY

Most popular insurance policy in IndiaMost popular insurance policy in IndiaMost popular insurance policy in IndiaMost popular insurance policy in India

Combines Investment + Risk CoverCombines Investment + Risk CoverCombines Investment + Risk CoverCombines Investment + Risk Cover

Sum assured paid on death or survival at maturity Sum assured paid on death or survival at maturity Sum assured paid on death or survival at maturity Sum assured paid on death or survival at maturity

Bonus paid along with Sum Assured on maturity Bonus paid along with Sum Assured on maturity Bonus paid along with Sum Assured on maturity Bonus paid along with Sum Assured on maturity

Premiums are higher than term plan due to a savings Premiums are higher than term plan due to a savings Premiums are higher than term plan due to a savings Premiums are higher than term plan due to a savings

componentcomponentcomponentcomponent

Very High Commission (Very High Commission (Very High Commission (Very High Commission (uptouptouptoupto 40%)40%)40%)40%)

Not FlexibleNot FlexibleNot FlexibleNot Flexible

Expected Expected Expected Expected RetunRetunRetunRetun : 4 : 4 : 4 : 4 6%6%6%6%

MONEY BACK POLICY

Covers death & survival benefitsCovers death & survival benefitsCovers death & survival benefitsCovers death & survival benefits

Lump sum paid periodically.Lump sum paid periodically.Lump sum paid periodically.Lump sum paid periodically.

20% + 20% + 20% + 40% of SA at predefined intervals20% + 20% + 20% + 40% of SA at predefined intervals20% + 20% + 20% + 40% of SA at predefined intervals20% + 20% + 20% + 40% of SA at predefined intervals

Full sum assured paid on deathFull sum assured paid on deathFull sum assured paid on deathFull sum assured paid on death

Popular for planning Childrens Education & MarriagePopular for planning Childrens Education & MarriagePopular for planning Childrens Education & MarriagePopular for planning Childrens Education & Marriage

Very High Commission (Very High Commission (Very High Commission (Very High Commission (uptouptouptoupto 40%)40%)40%)40%)

Expected Expected Expected Expected RetunRetunRetunRetun : 4 : 4 : 4 : 4 6%6%6%6%

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ANNUITIES AND PENSION

Immediate Annuity PolicyImmediate Annuity PolicyImmediate Annuity PolicyImmediate Annuity Policy

Single PremiumSingle PremiumSingle PremiumSingle Premium

Monthly PensionMonthly PensionMonthly PensionMonthly Pension

Meant for Retirees investing Retirement ProceedsMeant for Retirees investing Retirement ProceedsMeant for Retirees investing Retirement ProceedsMeant for Retirees investing Retirement Proceeds

Deferred Annuity PolicyDeferred Annuity PolicyDeferred Annuity PolicyDeferred Annuity Policy

Invest regularly for some yearsInvest regularly for some yearsInvest regularly for some yearsInvest regularly for some years

Monthly pension starts at retirement ageMonthly pension starts at retirement ageMonthly pension starts at retirement ageMonthly pension starts at retirement age

Can commute upto 1/3 of accumulationCan commute upto 1/3 of accumulationCan commute upto 1/3 of accumulationCan commute upto 1/3 of accumulation

WHAT ARE RIDERS?

Accidental Death

Additional Sum Assured if death

Critical Illness

If critical illness diagnosed

Waiver of Premium

Waives off premium if something happens to person

who is paying premium

Used mainly in Childrens Policies

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UNIT LINKED INSURANCE PLANS (ULIPS)

Market linked investment where the premium paid is invested in fundsMarket linked investment where the premium paid is invested in fundsMarket linked investment where the premium paid is invested in fundsMarket linked investment where the premium paid is invested in funds

Different Options Different Options Different Options Different Options ---- Equity, Balanced, Debt. Switch facility availableEquity, Balanced, Debt. Switch facility availableEquity, Balanced, Debt. Switch facility availableEquity, Balanced, Debt. Switch facility available

Greater flexibility in policy structureGreater flexibility in policy structureGreater flexibility in policy structureGreater flexibility in policy structure

Sold as Investment PlansSold as Investment PlansSold as Investment PlansSold as Investment Plans

Higher of the SA or Fund value is paid at death / maturityHigher of the SA or Fund value is paid at death / maturityHigher of the SA or Fund value is paid at death / maturityHigher of the SA or Fund value is paid at death / maturity

Higher LiquidityHigher LiquidityHigher LiquidityHigher Liquidity

Highest Highest Highest Highest MisMisMisMis----selling as earlier commission was very highselling as earlier commission was very highselling as earlier commission was very highselling as earlier commission was very high

Recent SEBIRecent SEBIRecent SEBIRecent SEBI----IRDA spat and subsequent IRDA clampdown on ULIPSIRDA spat and subsequent IRDA clampdown on ULIPSIRDA spat and subsequent IRDA clampdown on ULIPSIRDA spat and subsequent IRDA clampdown on ULIPS

Highest NAV guaranteed Highest NAV guaranteed Highest NAV guaranteed Highest NAV guaranteed ---- A big fraudA big fraudA big fraudA big fraud

VARIOUS COSTS - ULIPS

Mortality charges

Cost of insurance coverage

Premium allocation charges

Usually goes towards agents commission

Fund management charges

To manage investment component like MFs

Policy administration charges

To cover operational costs

Surrender charges

Higher charges for early surrender

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LIC SAMRIDHI PLUSPremium Allocation Charge

First Year 27.5%

Second & Third Year 7.5%

Thereafter 5%

Mortality Charge 0.5%

Policy Administration Charge Rs 360 p.a

Fund Management Charge 0.40%

Surrender Charge 1st year 6%

Guarantee Charge 0.40%

Miscellaneous Charges

Dark side

of

insurance

mis-selling

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Policy date: December 28, 2010

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Sum Assured: Rs 5,00,000

Highest NAV guaranteed

Various Charges

Premium Allocation Charge : 4%

Premium Administration Charge : 3.6%

Fund Management Charge : 1.35%

Surrender Charge : 6%

Mortality Charge : As Applicable

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Highest NAV Charge : 0.5%

Additional Service Charge : Rs 250

Total First year Charges : 9.45%

Surrendered on January 5th, 2011

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HAPPY ENDING !!!!

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The name inspires trust

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A ULIP CUSTOMER & HIS AGENT

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WHERE ARE PURE PROTECTION PLANS ???

BANKS ARE THE BIGGEST MIS-SELLERS

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TERM PLANS COMPARISON CHART

Sum Assured: Rs 5,00,000.00

Annual Premium: Rs 19,603.00

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Sum Assured: Rs 100,00,000.00

Annual Premium: Rs 22,500.00

Sum Assured: Rs 100,00,000.00

Annual Premium: Rs 15,111.00

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Sum Assured: Rs 2,50,00,000.00

Annual Premium: Rs 22,600.00

Sum Assured: Rs 1,50,00,000.00

Annual Premium: Rs 11,300.00

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ITS UPTO YOU TO DECIDE !!!!!

LIC ASHA DEEP II ENDOWMENT PLAN ICICI I-PROTECT TERM PLAN

Sum Assured - Rs 5,00,000

Annual premium - Rs 19,603

Value at maturity based on LICs

projection chart - Rs 13,27,500

Sum Assured - Rs 100,00,000

Annual premium - Rs 8,300

Difference in Premium - Rs 11,303

Invested in Mutual Funds -

@12% - Rs 18,80,073

@15% - Rs 31,38,062

@20% - Rs 74,80,026

LIC ASHA DEEP

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ASHA (NIRASHA) DEEP

Continue to pay annual premium

Maturity value after 25 years

Rs 13,27,500

Surrender value: Rs 82,220

Annual Premium: Rs 19,603

Remaining Tenure: 18 years

Invests in Mutual Funds -

@12% - Rs 18,33,596

@15% - Rs 26,90,627

@20% - Rs 51,24,223

LIC ASHA DEEP SURRENDER

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LIC ASHA DEEP SURRENDER CHEQUE

ASHA DEEP INVESTED INTO MUTUAL FUND

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INVESTMENTBY LIFE INSURANCE COMPANIES

Parameter FY 09-10 % age

Central Government Securities 3,61,520 57%

State Government and other approved securities 1,36,998 21.5%

Investment in Infrastructure Sector 1,39,710 21.5%

Instruments FY 2009-10 FY 2010-11

Equity 4,46,881 5,06,895 (34%)

Fixed Income (Debt) 8,10,904 9,52,993 (64%)

Others 32,161 20,425 (2%)

Total 12,89,946 14,80,313 (100%)

LIFE INSURANCE DEATH CLAIMS

LICLICLICLIC PrivatePrivatePrivatePrivate KotakKotakKotakKotak AegonAegonAegonAegon ReligareReligareReligareReligare ICICI ICICI ICICI ICICI PruPruPruPru

Amount in

Rs crs4,799.55 1,158.58 55.91 1.08 218.04

No of Policies 6,53,909 72,200 1,983 24 14,479

Avg Amount

per policy73,397.83 1,60,468.1 2,81,946.5 4,50,000 1,50,590.5

Sum Assured: More than 6 timesTenure of LIC - Avg 15 years ; Private - 2 to 5 yrsAgent / RM Mis-selling Vs Claims settled by Claims department

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Started in 184425,000 peoplePresence in 20 markets in US, Asia and Europe4 crore customers across the globe

Founded in 1696, Since 1834 associated with IndiaThe world's 6th largest Insurance groupBiggest in the UK 44.5 million-customer base worldwide with 402 billion assets under management at 31 December 2010.

History of 140 years9 crore customersPresence in 50 markets in US, Asia, latin America and Europe

Are you still concerned???

Founded in 1845 is the oldest company in USFortune 100 company The Company holds the highest possible ratings for financial strength currently awarded to any life insurer from the life insurance industry's four principal rating agencies

History of only 52 years

MYTH BUSTERS

Myth 1: Insurance is for tax saving

Myth 2: Insurance is Investment

Myth 3: I dont need Insurance.

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5 EASY STEPS TO BUYING A POLICY

Initially,Initially,Initially,Initially, calculatecalculatecalculatecalculate thethethethe exactexactexactexact amountamountamountamount ofofofof insuranceinsuranceinsuranceinsurance thatthatthatthat youyouyouyou needneedneedneed;;;;

DecideDecideDecideDecide whichwhichwhichwhich productproductproductproduct suitssuitssuitssuits youyouyouyou bestbestbestbest basedbasedbasedbased onononon youryouryouryour lifelifelifelife stagestagestagestage andandandand needneedneedneed

CalculateCalculateCalculateCalculate thethethethe premiumpremiumpremiumpremium

OnceOnceOnceOnce youyouyouyou havehavehavehave decideddecideddecideddecided onononon allallallall thethethethe aboveaboveaboveabove parameters,parameters,parameters,parameters, getgetgetget inininin touchtouchtouchtouch withwithwithwith aaaa LifeLifeLifeLife

AdvisorAdvisorAdvisorAdvisor

The Life Advisor will assist you in filling up a proposal form. In addition to a The Life Advisor will assist you in filling up a proposal form. In addition to a The Life Advisor will assist you in filling up a proposal form. In addition to a The Life Advisor will assist you in filling up a proposal form. In addition to a

proposal form, you need to submit some financial documents that are required proposal form, you need to submit some financial documents that are required proposal form, you need to submit some financial documents that are required proposal form, you need to submit some financial documents that are required

in order to buy a policy. The Life Advisor will notify the list of financial in order to buy a policy. The Life Advisor will notify the list of financial in order to buy a policy. The Life Advisor will notify the list of financial in order to buy a policy. The Life Advisor will notify the list of financial

documents required for the same.documents required for the same.documents required for the same.documents required for the same.

10 COMMANDMENTS OF LIFE INSURANCE

Thou shall buy insurance only for risk cover

Thou shall not consider insurance as an investment option

Thou shall preferably buy only a term policy

Thou shall not trust his agent blindly

Thou shall be wary of the hype (advertisements)

Thou shall not buy ULIP at any cost

Thou shall not insure yourself if you a lone bird

Thou shall not insure if you are wealthy

Thou shall not buy a child insurance plan or a plan for a non-earning member

Thou shall read the fine print carefully

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HOW TO BUY LIFE INSURANCE

Buy insurance only from a licensed agent / intermediaryBuy insurance only from a licensed agent / intermediaryBuy insurance only from a licensed agent / intermediaryBuy insurance only from a licensed agent / intermediary

Shop aroundShop aroundShop aroundShop around

Understand the scope of cover, terms and conditions of the policyUnderstand the scope of cover, terms and conditions of the policyUnderstand the scope of cover, terms and conditions of the policyUnderstand the scope of cover, terms and conditions of the policy

Fill in your application carefully Fill in your application carefully Fill in your application carefully Fill in your application carefully Never sign blank proposalsNever sign blank proposalsNever sign blank proposalsNever sign blank proposals

Health related particularsHealth related particularsHealth related particularsHealth related particulars should be trueshould be trueshould be trueshould be true

Age and Address Proof should be correctAge and Address Proof should be correctAge and Address Proof should be correctAge and Address Proof should be correct

Ensure premiums are paid to your insurance companyEnsure premiums are paid to your insurance companyEnsure premiums are paid to your insurance companyEnsure premiums are paid to your insurance company

Read your policy when you receive itRead your policy when you receive itRead your policy when you receive itRead your policy when you receive it

15 day free look up period15 day free look up period15 day free look up period15 day free look up period

WHERE TO BUY LIFE INSURANCE?

Individual Agents -

Corporate Agents -

Bancassurance -

Insurance Brokers

Directly from companies

Branches

Online from websites

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INFORMATION FOR EXISTING POLICY HOLDERS

Always remember your premium due dates to avoid a policy lapse. Always remember your premium due dates to avoid a policy lapse. Always remember your premium due dates to avoid a policy lapse. Always remember your premium due dates to avoid a policy lapse.

Always insist on a premium receipt as a proof of payment.Always insist on a premium receipt as a proof of payment.Always insist on a premium receipt as a proof of payment.Always insist on a premium receipt as a proof of payment.

Ensure your age is stated correctly in the proposal. If it is incorrect, get it rectified at Ensure your age is stated correctly in the proposal. If it is incorrect, get it rectified at Ensure your age is stated correctly in the proposal. If it is incorrect, get it rectified at Ensure your age is stated correctly in the proposal. If it is incorrect, get it rectified at

the earliestthe earliestthe earliestthe earliest

Keep your policy in a safe place until the life insurance policy money is received.Keep your policy in a safe place until the life insurance policy money is received.Keep your policy in a safe place until the life insurance policy money is received.Keep your policy in a safe place until the life insurance policy money is received.

Always keep the nomination under your policy alive and he/she should be aware Always keep the nomination under your policy alive and he/she should be aware Always keep the nomination under your policy alive and he/she should be aware Always keep the nomination under your policy alive and he/she should be aware

about it. about it. about it. about it.

Always intimate change in address to insurance company immediatelyAlways intimate change in address to insurance company immediatelyAlways intimate change in address to insurance company immediatelyAlways intimate change in address to insurance company immediately

Always clarify any doubts you have about your policy with the life insurance company Always clarify any doubts you have about your policy with the life insurance company Always clarify any doubts you have about your policy with the life insurance company Always clarify any doubts you have about your policy with the life insurance company

/ insurance advisor./ insurance advisor./ insurance advisor./ insurance advisor.

5 COMMON LIFE INSURANCE MISTAKES

Treating life insurance as a savings avenue

Trusting your life insurance agent / advisor completely

Considering life insurance as a one time activity

Buying the wrong product (99% are victim of this) - Child plan,

Life insurance for non-earning spouse

Buy Life insurance purely to save Tax

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FILING A LIFE INSURANCE CLAIM

Maturity claim Fill the claim form

Original policy bond

Death claim Claim intimation/notificationClaim intimation/notificationClaim intimation/notificationClaim intimation/notification

Contact the respective life insurance branch office.

Contact your insurance advisor

Call the respective Customer Helpline

Documents required for claim processingDocuments required for claim processingDocuments required for claim processingDocuments required for claim processing

Original policy document,

Death certificate,

Police FIR and post mortem exam report (for accidental death),

Certificate and records from the treating doctor/hospital (for death due to illness)

Settlement of Claim (within 30 days of receipt of all documents)Settlement of Claim (within 30 days of receipt of all documents)Settlement of Claim (within 30 days of receipt of all documents)Settlement of Claim (within 30 days of receipt of all documents)

PROTECTION OF POLICY HOLDERS INTEREST

Note:-

There are 12 ombudsman Centre's in India.

The companies cannot challenge the decision of the ombudsman

Register a Complaint with the Toll free number /Register a Complaint with the Toll free number /Register a Complaint with the Toll free number /Register a Complaint with the Toll free number /

helpline of the Companyhelpline of the Companyhelpline of the Companyhelpline of the Company

Complaint to the Grievance officer of the companyComplaint to the Grievance officer of the companyComplaint to the Grievance officer of the companyComplaint to the Grievance officer of the company

ComplaintComplaintComplaintComplaint to Council / IRDA / Ombudsmanto Council / IRDA / Ombudsmanto Council / IRDA / Ombudsmanto Council / IRDA / Ombudsman

Grievance Redressal Mechanism

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No time

Agents Job

GENERAL INSURANCE

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TYPES OF GENERAL INSURANCE

Motor InsuranceMotor InsuranceMotor InsuranceMotor Insurance

Health InsuranceHealth InsuranceHealth InsuranceHealth Insurance

Fire InsuranceFire InsuranceFire InsuranceFire Insurance

Travel InsuranceTravel InsuranceTravel InsuranceTravel Insurance

Home InsuranceHome InsuranceHome InsuranceHome Insurance

Critical Illness coverCritical Illness coverCritical Illness coverCritical Illness cover

HEALTH INSURANCE

Rising medical costsRising medical costsRising medical costsRising medical costs

Uncertain hospital billsUncertain hospital billsUncertain hospital billsUncertain hospital bills

Expensive / quality health care servicesExpensive / quality health care servicesExpensive / quality health care servicesExpensive / quality health care services

Family health insurance at a lesser premiumFamily health insurance at a lesser premiumFamily health insurance at a lesser premiumFamily health insurance at a lesser premium

Tax benefitTax benefitTax benefitTax benefit

Changing lifestyle Changing lifestyle Changing lifestyle Changing lifestyle Most Important reasonMost Important reasonMost Important reasonMost Important reason

Why is Health Insurance important?

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POOR EATING HABITS RESULTING IN POOR HEALTH

Acidity, Diabetes, High Cholestrol, Obesity and the list goes on

EVERY FAMILY HAS ONE..

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IS THIS THE TREND???

Mr Raghu Pillai,CEO, Future GroupAge - 54 yrs, Heart Attack

Mr R Ravimohan,Former CEO, CrisilAge - 52 yrs, Heart Attack

Mr Ranjan Das,CEO, SAP IndiaAge - 42 yrs, Cardiac Arrest

Some reasonsBlackberrysExcessive TravellingPeer PressureEasy Lifestyle

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A grim reminder. Before its too late

Are we prepared for this ????

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HEALTH INSURANCE

Hospitalization Expenses over 24 hoursHospitalization Expenses over 24 hoursHospitalization Expenses over 24 hoursHospitalization Expenses over 24 hours

Room charges, Medicine & Test Charges, Operation, doctor Room charges, Medicine & Test Charges, Operation, doctor Room charges, Medicine & Test Charges, Operation, doctor Room charges, Medicine & Test Charges, Operation, doctor

fees etc coveredfees etc coveredfees etc coveredfees etc covered

Family floaters available Family floaters available Family floaters available Family floaters available

Group mediclaim policyGroup mediclaim policyGroup mediclaim policyGroup mediclaim policy

Eligible for tax benefits under 80DEligible for tax benefits under 80DEligible for tax benefits under 80DEligible for tax benefits under 80D

Rs 1 to 5 lakhs cover recommended based on affordability Rs 1 to 5 lakhs cover recommended based on affordability Rs 1 to 5 lakhs cover recommended based on affordability Rs 1 to 5 lakhs cover recommended based on affordability

HOW MUCH HEALTH INSURANCE COSTS?

Source: www.icicilombard.com

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CRITICAL ILLNESS COVER Benefit paid immediately on first diagnosis of the covered Major Medical Illnesses Benefit paid immediately on first diagnosis of the covered Major Medical Illnesses Benefit paid immediately on first diagnosis of the covered Major Medical Illnesses Benefit paid immediately on first diagnosis of the covered Major Medical Illnesses

and Procedure, Accidental Death /Permanent Total Disablement (PTD) due to and Procedure, Accidental Death /Permanent Total Disablement (PTD) due to and Procedure, Accidental Death /Permanent Total Disablement (PTD) due to and Procedure, Accidental Death /Permanent Total Disablement (PTD) due to

accidentaccidentaccidentaccident

Choose between a cover ofChoose between a cover ofChoose between a cover ofChoose between a cover of 3 Lakh,3 Lakh,3 Lakh,3 Lakh, 6 Lakh or6 Lakh or6 Lakh or6 Lakh or 12 Lakh sum insured and policy 12 Lakh sum insured and policy 12 Lakh sum insured and policy 12 Lakh sum insured and policy

duration between 1 year, 3 years or 5 years.duration between 1 year, 3 years or 5 years.duration between 1 year, 3 years or 5 years.duration between 1 year, 3 years or 5 years.

Major Medical Illness & Procedures :Major Medical Illness & Procedures :Major Medical Illness & Procedures :Major Medical Illness & Procedures :

CancerCancerCancerCancer

Coronary Artery Bypass Graft SurgeryCoronary Artery Bypass Graft SurgeryCoronary Artery Bypass Graft SurgeryCoronary Artery Bypass Graft Surgery

Myocardial Infarction (Heart Attack)Myocardial Infarction (Heart Attack)Myocardial Infarction (Heart Attack)Myocardial Infarction (Heart Attack)

End Stage Renal FailureEnd Stage Renal FailureEnd Stage Renal FailureEnd Stage Renal Failure

Major Organ TransplantMajor Organ TransplantMajor Organ TransplantMajor Organ Transplant

StrokeStrokeStrokeStroke

ParalysisParalysisParalysisParalysis

Heart Valve Replacement SurgeryHeart Valve Replacement SurgeryHeart Valve Replacement SurgeryHeart Valve Replacement Surgery

Multiple SclerosisMultiple SclerosisMultiple SclerosisMultiple Sclerosis

CRITICAL ILLNESS CHARGES

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STEPS TO BUY A HEALTH INSURANCE

Pay attention to policy conditionsPay attention to policy conditionsPay attention to policy conditionsPay attention to policy conditions

Read the exclusions and limitations very carefullyRead the exclusions and limitations very carefullyRead the exclusions and limitations very carefullyRead the exclusions and limitations very carefully

Compare premium costs, deductibles, coCompare premium costs, deductibles, coCompare premium costs, deductibles, coCompare premium costs, deductibles, co----paymentspaymentspaymentspayments

Take an informed decisionTake an informed decisionTake an informed decisionTake an informed decision

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GET WELL SOON !!!

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