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Presented By Group 4:-

Gurjot Ahluwalia 201043Harshita Satija 201050Isha Gupta 201054Karan Dhillon 201058

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Introduction

Insurance is a form of riskmanagement primarily used to hedgeagainst the risk of a contingent,

uncertain loss.

Insurance is defined as theequitable transfer of the risk of aloss, from one entity to another,in exchange for payment.

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The amount to be charged for a certainamount of insurance coverage is called thepremium .

Insurance Policy, is a contract which details the

conditions and circumstances under which theinsured will be financially compensated.

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Indian Insurance Industry Structure

Ministry of Finance (GOI) IRDA

Life Insurance

Public Private

Non LifeInsurance

Public Private

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Types of Insurances

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INSURANCE COMPANIES

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HOW MUCH INSURANCE DOES ONENEED ?

Your age andnumber of

dependents

Your annualincome and

annual expenses

Your outstandingliabilities like

home loan, carloan, etc.

Your investments /savings

Your lifestyleexpenses

Monies youwould require in

future

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Insurability at various Stages

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Insurance in Financial Planning

Investment

Protection

Tax-

savingtool

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Kewals Case

Age is 36,Married

Dependents are 4

Income isRs 24 lacs

per annum

PersonalDebts:

Home LoanRs 45 lacs

Householdexpenses

:Rs 90,000per month

Investments:Market value

of house(75lacs

),in equity(9lacs),Bank

Balance(4.5lacs)

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Age in

years

Significant Life

Event

Risk Exposure Possible Risk Strategy

24 1 st job Job Loss

Death

Health Issues

Disability

Medical Insurance covered by the

company.

26 Bought a car Theft

Fire

Accident

Car Insurance

27 Started Business Irregular Income

Change in financial status

Bankruptcy

Employee attraction and retention

Employee welfare

Health insurance for family (self and

mother)

28 Marriage,

Bought Home

Health issues

Increase in number of dependents

Marriage complications

Insuring house against damage due to fire,

earthquake, etc.

Life Insurance Policy

Home Insurance

30 Birth of twins Increase in the Number of dependents

Medical expenses

Health Insurance for the Family & the

Mother

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LIFE INSURANCE

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Age at the time of buying this policy 28 years 28 years

Policy term 30 years 30 years

Amount covered Rs. 1.2 crore Rs. 1.2 crore Annual premium payment Rs. 8280 Rs. 9254

Parameter Bharti AXA Life eProtect Aviva iLife

Minimum age at entry 18 years 18 years

Maximum age at entry 60 Years ( ) Policy Term 55 years

Minimum sum Assured Rs. 2,500,000/- Rs 25 lakhsMaximum age at Maturity 60 years 70 years

Death Benefit Sum Assured Sum Assured

Policy Term 10, 15, 20, 25 and 30 years. Min: 10 years, Max: 35 years

Premium Payment Term Same as policy TermEqual to the policy term

Premium Payment Modes Annual & Semi Annual modes.Yearly, half-yearly (the modalfactors are: 1.0000 & 0.5108

respectively).

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HOME INSURANCE

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Kewals Car Insurance

Maruti Esteem 2003 Model Insureds Declared Value of Vehicle Rs. 1,54,080 The Insureds Declared Value (IDV) of the vehicle is

deemed to be the SUM INSURED for the vehicle. It is

fixed at the commencement of each policy period foreach insured vehicle.

Tata AIG Car Insurance Annual Premium Rs.4,674 HDFC ERGO Car Insurance Premium Rs. 4,234

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Leading Children Plans A ComparisonFeatures Stone ICICI Pru Smart Kid HDFC Children's Plan

Plan Type Anticipated Endowment Endowment

Min / Max Term childMatures between 22-25 years of the childs age.

Term is 10-25 years10-25 year

Min / Max Age of Child 0-12 years N.A.Min / Max Age of Parent 20-60 years 18-60 years

Payment Modes Regular RegularLife Assured ParentBeneficiary Child Child / Family

Benefit Structure

Two Structures1. When the child reaches his critical milestones

(Xth, XIIth, Graduation,Post Grad); % of S A is

paid2. Last 4 years before maturity; % of SA is paid

over consecutive yrs

Sum Assured+bonuses paid on maturity in lumpsum

On Death of parentSA paid up front. Child gets the guaranteed

payments as chosen earlier

1) Maturity Benefit Plan: future premiums arewaived; maturity benefits are paid like normal

on maturity2)Accelerated Benefit Plan: Sum assured +

bonuses paid to beneficiary on death &contract terminates

On Death of childPolicy continues as it is. It can be nominated to

another child in that case alsoPolicy continues

Bonus & Additions3.5% of SA compunded annually for the first 4

years, annual bonuses declared thereafterBonuses declared by company

Riders Available ADBR/IBR None

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Aegon

Religare

ICICISmart Kid

EdelweissTokio

HDFC

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MEDICLAIM POLICY

Company Apollo Munich Bajaj Allianz

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Type of Policy Floater Floater

Coverage Amount 4,00,000-10,00,000 2,00,000-5,00,000

Frequency of payment Monthly, Quarterly, semi-annual,Annual

Monthly, Quarterly, semi-annual,Annual

Premium Amount 11,797 p.a. 14,285 p.a.

Age Limit 18 years (minimum)48 years (maximum)

18 years (minimum)50 years (maximum)

Benefits Coverage for hospitalization of more than 24 hrs.

Coverage for medical costsincurred before/ afterhospitalization (30 days andcan be increased to 60 days if Insured Person intimates 5days prior to hospitalization)

Free Medical check-up after 4

No medical tests required forSum Insured up to Rs.10 lacs

for age up to 45 yearsNo sub-limits onhospitalization expenses androom rentFree Medical check-up after 4claim free years

Family discount of 10%Medical check-up is


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Type of policy Medi claim (Critical Illness) Medi claim (Critical Illness)

Coverage Amount 2,00,000-5,00,000 1,00,000-5,00,000

Frequency of payment Monthly, Quarterly, semi-annual, Annual

Monthly, Quarterly, semi-annual, Annual

Premium Amount 11,932 p.a. 13,175 p.a.

Age Limit 61 years (minimum)No limit (maximum)

46 years (minimum)70 years (maximum)

benefits Plan exclusively created forSenior Citizens of any ageGet cashless treatmentacross 4000 networkhospitals across 800 citiesReceive a free secondopinion from our medicalpanel for listed CriticalIllnesses

Covers ambulance chargesin an emergency subject toa limit of Rs.1000/-.Pre-existing illnesses arecovered from the secondyear of the policy.

The policy covershospitalization expensesand an amount equivalent

to 3% of admissiblehospitalization expenses in

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GROUP MEDICLAIM POLICY

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Lowers the employee turnover

Lower premium costs

Customized policy

Cover for all members

Tax benefits

Regular health check-ups

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POSITION TODAY

Particulars Amount (Rs)

Monthly income 200000

Monthly expenses 90000

House loan EMI 43874

Life Insurance Premium 690

Car Insurance premium (HDFC Ergo) 353

Home loan premium 1124

Child plan premium 15600

Medical policy premium 995

Floater premium 985

Surplus available 46379

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PWM Group 5 (1)

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