Introduction to Life Insurance-Roheet

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Introduction to Life Insurance Industry 

& Basics of Insurance 

Roheet Kumar Roll No: 26 

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AgendaAgenda

At the end of this session you will know«.

Basics of Life Insurance

 Types of Insurance

Basic Jargons

Life Insurance in India

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Basics of Life Insurance :Basics of Life Insurance :

Basics

 ²Insurance is a function of Uncertainty 

 ²Risk & Perils

Premium

Expenses

Mortality 

Investment

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Term PlanTerm Plan

 This plan offers a large Sum Assured as against a very 

nominal premium.

If the policyholder lives for a specified period he/she receives

the Face Value of the policy.

Endowment PlanEndowment Plan

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Whole Life PlanWhole Life Plan

 The policy covers a very wide age group of people.

 The plan covers the person all through his life.

 The plan can work as a saving plan,as a retirement planand even as a children plan.

 The plan offers both Maturity and Death benefit.

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Money Back PlanMoney Back Plan  The policyholder gets the Sum Assured benefit both at the

time of maturity and death

Annuities are contracts that convert an accumulation of money into a series of payments to the policyholder duringhis retirement age.

Annuity/PensionAnnuity/Pension

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Unit Linked Insurance PlanUnit Linked Insurance Plan

The plan offers the insurance cover with the added feature of ainvestment plan.

The risk and return in these plans goes hand in hand.

The plan offers flexibilities like partial withdrawals, switching,top-ups unlike the traditional plan.

ULIPs offer both death and maturity benefit.

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Universal Life Insurance PlanUniversal Life Insurance Plan

In simple words, Universal Life is a combination

of a Traditional and a Unit Linked plan.

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Basic jargonBasic jargon Proposal: Is the basis of the Insurance Contract

Policy Bond: Is the evidence of the Insurance Contract

Due Date: The date by which policyholder needs to pay the premium

Days of grace: Extra time given to pay the overdue premium

Lapse: Termination of a policy upon the policy owner's failure to pay the premium within the grace period. If there are non forfeiture

values, the policy lapses but may remain effective reduced paid-up

insurance

Maturity Value: The amount received by Proposer at the end of 

Policy term.

Death benefit : The amount paid to nominee after death of Life

Assured.

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Life Insurance in IndiaLife Insurance in India

 In India life insurance business was transacted in 1870.The first company was Bombay Mutual Assurance

 Society Ltd.

 Before the formation of LIC, 170 insurance companiesand 75 Provident Fund Societies were operating in India

 LIC was formed on 1st  September 1956 

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Benefits of Life InsuranceBenefits of Life Insurance

Insurance plan gives the following benefits Insurance plan gives the following benefits 

 ²  ²  Family Protection Family Protection 

 ²  ²  Children· Education & Marriage Children· Education & Marriage 

 ²  ²  Personal Retirement Personal Retirement 

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25 30 43 50 55 60 65 70 80 90 100

AGE

Marriage /

children

Children ² growing

needs/education

Growingneeds/marriage

Your earning grow till 60

Save max till 60

Have max resp.till 60

Now it·s

 your own

needs

Would not

like to be

dependent

on anybody 

Earnings have gown

down

Responsibility CurveResponsibility Curve

LI

A

B

IL 

IT

I

E

S

NeedsIncome

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