INTRODUCTION

Insurance is a contract in which an individual or entity

receives financial protection or reimbursement
against losses from an insurance company.
2
 MEANING
• Life insurance is a contract between an insured (insurance policy
holder) and an insurer or assurer, where the insurer promises to pay
a designated beneficiary a sum of money in exchange for a
premium, upon the death of the insured person.
• Depending on the contract, other events such as terminal illness
or critical illness can also be the reason for the payment.
• The policy holder typically pays a premium, either regularly or as one
lump sum. Other expenses (such as funeral expenses) can also be
included in the benefits.

3
 TYPES OF LIFE INSURANCE POLICIES

INSURANCE
POLICIES

INSURANCE CUM
PURE INSURANCE INVESTMENT
POLICIES

WHOLE LIFE UNIT LINKED ENDOWMENT

TERM PLANS MONEY BACK
PLANS INSURANCE PLANS

4
TYPES OF LIFE INSURANCE POLICIES

INSURANCE
POLICIES

INSURANCE CUM
PURE
INVESTMENT
INSURANCE
POLICIES

WHOLE LIFE UNIT LINKED ENDOWMENT

TERM PLANS MONEY BACK
PLANS INSURANCE PLANS

5
 INSURAN
CE
POLICIES

TERM POLICY
INSURAN
PURE CE CUM
INSURAN INVESTM
CE ENT
UNIT POLICIES
WHOLE ENDOW
TERM LINKED MONEY
LIFE MENT
PLANS INSURAN BACK
PLANS PLANS
CE

FEATURES
• Covers Amount of protection against death of an
Individual for a given period.
Protection
against
• Insurance amount is to be paid to the Nominees in case death
of death

• LOW COST - Cheapest Form of Life Insurance Changes in Insurance

premium amount to
be paid
• CONVERTIBILTY - From Original Term Insurance Policy
to Whole Life Term etc. FEATURES

• CHANGES IN PREMIUM – It may either increase or

decrease based on period of the policy, age etc
Convertibility Low cost

6
 INSURAN
CE
POLICIES
INSURAN
PURE CE CUM

TERM POLICY
INSURAN INVESTM
CE ENT
UNIT POLICIES
WHOLE ENDOW
TERM LINKED MONEY
LIFE MENT
PLANS INSURAN BACK
PLANS PLANS
CE

PROS / ADVANTAGES
HIGH
COVERAGE
• High amount of coverage at low premium

• DEATH BENEFIT – Payable to the beneficiary when the

annuitant passes away.

• TAX BENEFIT - any payment made by a tax payer on

account of Term Insurance Policy will be allowed
RENEWABILITY
PROS DEATH BENEFIT

deduction as per section 80C of the Income-tax Act,

1961 with enhanced tax deduction up to Rs 1,50,000.

• RENEWABILTY – Once the policy is expired , it can

be renewed with same premium and rates
TAX BENEFIT

7
 INSURAN
CE
POLICIES
INSURAN

TERM POLICY
PURE CE CUM
INSURAN INVESTM
CE ENT
UNIT POLICIES
WHOLE ENDOW
TERM LINKED MONEY
LIFE MENT
PLANS INSURAN BACK
PLANS PLANS
CE

CONS / DISADVANTAGES
• LIMITED TO CONVERSION PERIOD - The conversion
options for a number of term life polices expire prior
to the term period’s midpoint.

NO
• PURE INSURANCE ,NO INVESTMENT- In term insurance LIMITED TO
CONVERSION
SURRENDER
policy if policy holder survive to the maturity date no
PERIOD VALUE
amount is payable( premium paid is not returned back)

• NO SURRENDER VALUE PURE

INSURANCE , NO
INVESTMENT

CONS

8
 INSURAN
CE
POLICIES
INSURAN

TERM POLICY PROS / CONS

PURE CE CUM
INSURAN INVESTM
CE ENT
UNIT POLICIES
WHOLE ENDOW
TERM LINKED MONEY
LIFE MENT
PLANS INSURAN BACK
PLANS PLANS

COMPARITIVE STUDY
CE

PROS CONS

9
 5.
INSURAN

TERM POLICY
CE
POLICIES
INSURAN
PURE CE CUM
INSURAN INVESTM
CE ENT
UNIT POLICIES
WHOLE ENDOW
TERM LINKED MONEY
LIFE MENT
PLANS INSURAN BACK
PLANS PLANS
CE

SUITABILITY
• SUITED FOR INVESTORS WITH SHORT TERM LIFE INSURANCE NEEDS (10YRS OR LESS) LIKE

1. Who cannot afford high premium

2. Students who want to take education loan and bank require coverage
3. Housing Loan
4. Suitable for investors who want to demarcate between risk coverage and
investment options

10

SUMMARY OF TERM POLICY
FEATURES
• Covers Amount of
protection against death of
an Individual for a given
period.
• Insurance amount is to be
paid to the Nominees incase
of death
• LOW COST - Cheapest
Form of Life Insurance
• CONVERTIBILTY - From
Original Term Insurance
Policy to Whole Life Term
etc.
• CHANGES IN PREMIUM – It
may either increase or
decrease based on period of
the police, age etc
INSURAN
CE
POLICIES
TERMLIFE LINKED MONEY MENT
INSURAN
PURE CE CUM
INSURAN INVESTM
CE ENT
UNIT POLICIES
WHOLE ENDOW
PLANS INSURAN BACK
PLANS PLANS
CE
PROS CONS SUITABILITY
• High amount of coverage at • LIMITED TO CONVERSION • Suited for investors with
low premium PERIOD - The conversion short term life insurance
options for a number of needs (10YRS OR LESS) like
• DEATH BENEFIT – Payable term life polices expire prior
to the beneficiary when the to the term period’s 1.Who cannot afford high
annuitant passes away. midpoint. premium
• TAX BENEFIT - any payment • PURE INSURANCE , NO 2. Students who want to
made by a tax payer on INVESTEMENT - In term take education loan and
account of Term Insurance insurance policy if policy bank acquires coverage
Policy will be allowed holder survive to the
deduction as per section 80C maturity date no amount is 3.Housing Loan – life cover
of the Income-tax Act, 1961 payable( premium paid is equal to value of the loan
with enhanced tax not returned back)
deduction up to Rs 4. Suitable for investors who
1,50,000. •NO SURRENDER VALUE want to demarcate between
risk coverage and
• RENEWABILTY – Once the investment options
policy is expired , it can be
renewed with same
premium and rates
11
TYPES OF LIFE INSURANCE POLICIES

INSURANCE
POLICIES

INSURANCE CUM
PURE
INVESTMENT
INSURANCE
POLICIES

WHOLE LIFE UNIT LINKED ENDOWMENT

TERM PLANS MONEY BACK
PLANS INSURANCE PLANS

12
 INSURANC
E POLICIES

INSURANC
PURE E CUM

WHOLE LIFE POLICY

INSURANC INVESTME
E NT
POLICIES
UNIT
WHOLE ENDOWM
TERM LINKED MONEY
LIFE ENT
PLANS PLANS INSURANC BACK PLANS
E

FEATURES
• These plans provide cover throughout whole life.
COVER
THROUGHOUT
WHOLE LIFE
• Policyholder has an option to pay premiums upto
certain age ,generally 80-100 yrs of age (Maturity
Age)

• Premium remains constant during the entire term of

the policy.
FEATURES

PREMIUM
REMAIN
MATURITY
CONSTANT
AGE

13
 INSURANC
E POLICIES
WHOLE LIFE POLICY PLANS
PLANS INSURANC BACK
INSURANC
PLANS

PURE E CUM
INSURANC INVESTME
E NT
POLICIES
UNIT
WHOLE ENDOWM
TERM LIFE LINKED MONEY ENT
E

PROS / ADVANTAGE
DEATH
• DEATH BENEFIT - In case of death of the Life BENEFIT
Insured, the nominee would get the Sum Assured +
accrued Bonus.

• MATURITY BENEFIT - There is an option to withdraw

the Sum Assured + accrued bonuses declared under the
MATURITY SURRENDER
policy anytime after 40 years from the date of
commencement of the policy provided the life insured BENEFIT PROS VALUE
has attained a minimum age of 80 years.( No specific
maturity date)

• INCOME TAX BENEFIT-any payment made by a tax

payer on account of Term Insurance Policy will be
allowed deduction as per section 80C of the Income-tax TAX BENEFIT
Act, 1961.

• SURRENDER VALUE

14
 INSURANC
E POLICIES

INSURANC

WHOLE LIFE POLICY

PURE E CUM
INSURANC INVESTME
E NT
POLICIES
UNIT
WHOLE ENDOWM
TERM LINKED MONEY
LIFE ENT
PLANS PLANS INSURANC BACK PLANS
E

CONS / DISADVANTAGE
• EXPENSIVE

•LOW INTEREST RATES- Interest earned is

low compared to other policies.
INFLEXIBLE
COMPLICATED
• INFLEXIBLE EXPENSIVE

•COMPLICATED – Only expert can tell whether

this policy is a good deal. LOW INTEREST
RATES

CONS
15
WHOLE LIFE POLICY PROS / CONS
INSURANC
E POLICIES

INSURANC
PURE E CUM
INSURANC INVESTME

COMPARITIVE STUDY
E NT
POLICIES
UNIT
WHOLE ENDOWM
TERM LINKED MONEY
LIFE ENT
PLANS PLANS INSURANC BACK PLANS
E

PROS CONS
SURRENDER VALUE COMPLICATED

DEATH BENEFIT EXPENSIVE

INCOME TAX BENEFIT LOW INTEREST RATES

MATURITY BENEFIT INFLEXIBLE

16
 INSURANC
E POLICIES

INSURANC
PURE E CUM
INSURANC INVESTME

WHOLE LIFE POLICY

E NT
POLICIES
UNIT
WHOLE ENDOWM
TERM LINKED MONEY
LIFE ENT
PLANS PLANS INSURANC BACK PLANS
E

SUITABILITY
• People who invested for post retirement needs & intend to invest in other avenues.

• It is suitable and profitable if this policy is taken at younger age as premium charged will remain same.

• People who want to diversify their savings

• It helps to topup retirement savings of people.

17
 INSURANC

SUMMARY OF WHOLE LIFE

E POLICIES

INSURANC
PURE E CUM
INSURANC INVESTME
E NT

POLICY
POLICIES
UNIT
WHOLE ENDOWM
TERM LINKED MONEY
LIFE ENT
PLANS PLANS INSURANC BACK PLANS
E

FEATURES PROS CONS SUITABILITY

• These plans provide cover
throughout whole life.
• Policyholder has an option
to pay premiums upto
certain age ,generally 80-100
yrs of age (Maturity Age)
• Premium remain constant
during the entire term of the
policy.
• DEATH BENEFIT - In case of death of • EXPENSIVE • People who invested
the Life Insured, the nominee would for post retirement
get the Sum Assured + accrued Bonus. • LOW INTEREST RATES- needs & intend to
Interest earned is low invest in other
• MATURITY BENEFIT - There is an compared to other avenues.
option to withdraw the Sum Assured + policies.
accrued bonuses declared under the • It is suitable and
policy anytime after 40 years from the • INFLEXIBLE profitable if this policy
date of commencement of the policy is taken at younger
provided the life insured has attained a •COMPLICATED – Only age as premium
minimum age of 80 years.( No specific expert can tell whether charged will remain
maturity date) this policy is a good same.
deal.
• INCOME TAX BENEFIT-any payment • People who want to
made by a tax payer on account of diversify their savings
Term Insurance Policy will be allowed
deduction as per section 80C of the •It helps to topup
Income-tax Act, 1961. retirement savings of
people.
•SURRENDER VALUE 18
TYPES OF LIFE INSURANCE POLICIES

INSURANCE
POLICIES

INSURANCE CUM
PURE
INVESTMENT
INSURANCE
POLICIES

WHOLE LIFE UNIT LINKED ENDOWMENT

TERM PLANS MONEY BACK
PLANS INSURANCE PLANS

19
 UNIT LINKED INSURANCE PURE
INSURA
INSURA
NCE
POLICIES
INSURA
NCE
CUM
INVEST
NCE

POLICY
MENT
UNIT
WHOLE POLICIES ENDOW
TERM LINKED MONEY
LIFE MENT
PLANS INSURA BACK
PLANS PLANS
NCE

FEATURES
• It provides financial protection along with investment
FINANCIAL
opportunities PROTECTION

• Premium paid in ULIP after deductions ( e.g. service tax

deductions) is invested in equity or debt market.

• Its performance is linked to market growth.

FEATURES

PERFORMANCE
LINKED TO INVESTMENT MARKET

20
 UNIT LINKED INSURANCE PURE
INSURAN
INSURAN
CE
POLICIES
INSURAN
CE CUM
INVESTM

POLICY
CE ENT
UNIT POLICIES
WHOLE ENDOW
TERM LINKED MONEY
LIFE MENT
PLANS INSURAN BACK
PLANS PLANS
CE

PROS / ADVANTAGES
DEATH
• DEATH BENEFIT - In case of death of insured, the Sum BENEFIT
Assured and fund value is released to the beneficiary.

• TAX BENEFIT- ULIP also offers tax benefits under Section

80C and 10(10D) of the Income Tax Act, 1961. The
premium paid is deductible from taxable income for
maximum amount of Rs 1,00,000. TRANSPARENT PROS TAX BENEFIT

• TRANSPARENT – Daily track of Net Asset Value (NAV) of

the fund.

• FLEXIBLE – Systematically managing the funds

FLEXIBLE

21
 UNIT LINKED INSURANCE PURE
INSURAN
INSURAN
CE
POLICIES
INSURAN
CE CUM
INVESTM

POLICY
CE ENT
UNIT POLICIES
WHOLE ENDOW
TERM LINKED MONEY
LIFE MENT
PLANS INSURAN BACK
PLANS PLANS
CE

CONS / DISADVANTAGES
• Returns is not guaranteed

• LOCK IN PERIOD FOR 5 YEARS - It does not allow any LOCK IN PERIOD LOW SUM ASSURED
liquidity option atleast for 5 years

• LOW SUM ASSURED - Greater focus is on investment

value. NO GUARANTEE
RETURN

CONS 22
UNIT LINKED INSURANCE POLICY PROS / PURE
INSURA
INSURA
NCE
POLICIE
S
INSURA
NCE
CUM
INVEST
NCE MENT

CONS COMPARITIVE STUDY

WHOLE UNIT POLICIE ENDOW
TERM LINKED MONEYS
LIFE MENT
PLANS INSURA BACK
PLANS PLANS
NCE

PROS CONS

23
 UNIT LINKED INSURANCE PURE
INSURAN
INSURAN
CE
POLICIES
INSURAN
CE CUM
INVESTM

POLICY
CE ENT
UNIT POLICIES
WHOLE ENDOW
TERM LINKED MONEY
LIFE MENT
PLANS INSURAN BACK
PLANS PLANS
CE

SUITABILITY
• It is suitable for the investors who are considering long term investments as it provides insurance
cover , investments & tax benefits.

24
 SUMMARY OF UNIT LINKED PURE
INSURAN
INSURAN
CE
POLICIES
INSURAN
CE CUM
INVESTM

INSURANCE POLICY
CE ENT
UNIT POLICIES
WHOLE ENDOW
TERM LINKED MONEY
LIFE MENT
PLANS INSURAN BACK
PLANS PLANS
CE

FEATURES PROS CONS SUITABILTY

• It provides financial
protection along with
investment opportunities
• Premium paid in ULIP after
deductions (e.g. service tax
deductions) is invested in
equity or debt market.
• Its performance is linked to
market growth.
• DEATH BENEFIT - In case of
death of insured, the Sum
Assured and fund value is
released to the beneficiary.
•TAX BENEFIT- ULIP also
offers tax benefits under
Section 80C and 10(10D) of
the Income Tax Act, 1961.
The premium paid is
deductible from taxable
income for maximum
amount of Rs 1,00,000.
• Returns is not guaranteed
• LOCK IN PERIOD FOR 5
YEARS - It does not allow
any liquidity option atleast
for 5 years
• LOW SUM ASSURED -
Greater focus is on
investment value.
• It is suitable for the
investors who are
considering long term
investments as it provides
insurance cover ,
investments & tax benefits.

•TRANSPARENT – Daily track

of Net Asset Value (NAV) of
the fund.

• FLEXIBLE – Systematically
manage of the funds
25
 TYPES OF LIFE INSURANCE POLICIES

INSURANCE
POLICIES

INSURANCE CUM
PURE INSURANCE INVESTMENT
POLICIES

WHOLE LIFE UNIT LINKED ENDOWMENT

TERM PLANS MONEY BACK
PLANS INSURANCE PLANS

26
SOURCE : WEALTHWISHER
 INSURANCE
POLICIES

MONEY BACK POLICY

INSURANCE
PURE CUM
INSURANCE INVESTMEN
T POLICIES

UNIT
TERM WHOLE LIFE MONEY ENDOWME
LINKED
PLANS PLANS BACK NT PLANS
INSURANCE

FEATURES
• It provides Insurance Cover & also periodic return at INSURANCE
regular intervals COVER

• In the event of the death of insured during the policy

term, the beneficiary will get full money i.e. sum
assured without any deduction of any survival benefits
SURRENDER
(i.e. amounts which have already been paid as money LOW & FIXED
back components) RETURNS FEATURES VALUE

• It yields low & fixed returns as they are not market

linked.

SUM
• SURRENDER VALUE ASSURED

27
 INSURANCE
POLICIES

MONEY BACK POLICY PURE

INSURANCE
INSURANCE
CUM
INVESTMEN
T POLICIES

UNIT
TERM WHOLE LIFE MONEY ENDOWME
LINKED
PLANS PLANS BACK NT PLANS
INSURANCE

PROS / ADVANTAGES
FAMILY
• FAMILY SECURITY – It gives way for a person to plan SECURITY
the course of his life with a sum that is expected in
regular intervals

• ASSURED BONUS - Every policy will have a set of

assured bonus that may be shared in regular intervals
or got at the end of the policy.
PROS

ASSURED
BONUS

28
 INSURANCE
POLICIES

MONEY BACK POLICY PURE

INSURANCE
INSURANCE
CUM
INVESTMEN
T POLICIES

UNIT
TERM WHOLE LIFE MONEY ENDOWME
LINKED
PLANS PLANS BACK NT PLANS
INSURANCE

CONS / DISADVANTAGES
• LOW RETURNS

• LOW COVERS - Relative to term policy for same

LOW RETURNS
premium LOW COVERS

CONS
29
MONEY BACK POLICY PROS/CONS INSURANCE
POLICIES

INSURANCE

COMPARITIVE STUDY
PURE CUM
INSURANCE INVESTMEN
T POLICIES

UNIT
TERM WHOLE LIFE MONEY ENDOWME
LINKED
PLANS PLANS BACK NT PLANS
INSURANCE

PROS CONS

FAMILY SECURITY LOW RETURNS

BONUS LOW COVERS

30
 INSURANCE
POLICIES

MONEY BACK POLICY PURE

INSURANCE
INSURANCE
CUM
INVESTMEN
T POLICIES

UNIT
TERM WHOLE LIFE MONEY ENDOWME
LINKED
PLANS PLANS BACK NT PLANS
INSURANCE

SUITABILITY
• Individuals who require money at certain intervals in their lifetime to meet Fixed Long & Short
term financial needs along with life insurance cover e.g.

1. BUSINESSMAN
2. PROFESSIONALS

31
SUMMARY OF MONEY BACK PURE CUM
INSURANCE
POLICIES

INSURANCE
INSURANCE INVESTMEN
T POLICIES

POLICY
UNIT
TERM WHOLE LIFE MONEY ENDOWME
LINKED
PLANS PLANS BACK NT PLANS
INSURANCE

FEATURES PROS CONS SUITABILITY

• It provides Insurance
Cover & also period return
at regular interval
• In the event of the death
of insured during the policy
term, the beneficiary will get
full money sum assured
without any deduction of
survival benefit amount
which has been paid as
money back components
• FAMILY SECURITY – It gives
way for a person to plan the
course of his life with a sum
that is expected in regular
intervals
• BONUS - Every policy will
have a set of assured bonus
that may be shared in
regular intervals or got at
the end of the policy.
• LOW RETURNS • Individuals who require
money at certain intervals in
• LOW COVERS – Relative to their lifetime to meet Fixed
term policy for same Long & Short term financial
premium. needs along with life
insurance e.g.
BUSINESSMAN &
PROFESSIONALS

• It yield low & fixed returns

as they are not market
linked.

• SURRENDER VALUE

32
TYPES OF LIFE INSURANCE POLICIES

INSURANCE
POLICIES

INSURANCE CUM
PURE
INVESTMENT
INSURANCE
POLICIES

WHOLE LIFE UNIT LINKED ENDOWMENT

TERM PLANS MONEY BACK
PLANS INSURANCE PLANS

33
 INSURANCE
POLICIES

ENDOWMENT POLICY
INSURANCE
PURE CUM
INSURANCE INVESTMEN
T POLICIES

WHOLE LIFE UNIT LINKED MONEY ENDOWMEN

TERM PLANS
PLANS INSURANCE BACK T PLANS

FEATURES
• Simple policy with guaranteed returns SIMPLE
POLICY

• Protection & Savings Plan

• Sum assured is paid to the beneficiary on the death of

the insured or on the maturity of the term.

FEATURES

PROTECTION &
SUM ASSURED
SAVINGS PLAN

34
 INSURANCE
POLICIES

ENDOWMENT POLICY
INSURANCE
PURE CUM
INSURANCE INVESTMEN
T POLICIES

WHOLE LIFE UNIT LINKED MONEY ENDOWMEN

TERM PLANS
PLANS INSURANCE BACK T PLANS

PROS / ADVANTAGES
• DEATH BENEFIT - Payable to the beneficiary when the DEATH
annuitant passes away.( Sum Assured + Accrued Bonus) BENEFIT

• MATURITY BENEFIT - Payable to the beneficiary at the

maturity of the policy. ( Sum Assured + Accrued Bonus)

• TAX BENEFIT - any payment made by a tax payer on

account of Term Insurance Policy will be allowed deduction as MATURITY PROS TAX BENEFIT
BENEFIT
per section 80C of the Income-tax Act, 1961.

• SURRENDER VALUE –
1. WITHIN 3YRS OF BUYING THE POLICY – Receive
no surrender value
2. MORE THAN 3YRS – Receive surrender value
SURRENDER
VALUE

35
 INSURANCE
POLICIES

ENDOWMENT POLICY
INSURANCE
PURE CUM
INSURANCE INVESTMEN
T POLICIES

WHOLE LIFE UNIT LINKED MONEY ENDOWMEN

TERM PLANS
PLANS INSURANCE BACK T PLANS

CONS / DISADVANTAGES
• Low Returns.

• Premium paid is higher as compared to term policy.

LOW RETURNS PROTECTION
FOR
• Only few companies provide advantage of Renewability HIGH PREMIUM SPECIFIED
PERIOD

• It provides protection only for specified period.

NON
RENEWABILITY

CONS 36
 INSURANCE

ENDOWMENT POLICY
POLICIES

INSURANCE
PURE CUM
INSURANCE INVESTMEN
T POLICIES

PROS / CONS COMPARITIVE TERM PLANS

WHOLE LIFE
PLANS
UNIT LINKED
INSURANCE
MONEY
BACK
ENDOWMEN
T PLANS

STUDY
PROS CONS
PROTECTION FOR
DEATH BENEFIT SPECIFIED PERIOD

MATURITY BENEFIT NON - RENEWABILITY

TAX BENEFIT HIGH PREMIUM

SURRENDER VALUE LOW RETURNS

37
 INSURANCE
POLICIES

ENDOWMENT POLICY PURE

INSURANCE

TERM PLANS
WHOLE LIFE UNIT LINKED
INSURANCE
CUM
INVESTMEN
T POLICIES

MONEY ENDOWMEN
PLANS INSURANCE BACK T PLANS

SUITABILITY
• It is apt for people of all ages & social groups who wish to protect their family from Financial setback & Looking
for Benefits. E.G SAVINGS,WEALTH CREATION.ETC.

• It is for people who want 100% return on the Insurance Premium they paid so they are willing to accept a low
insurance cover and obtain lump sum amount at maturity.

38
SUMMARY OF ENDOWMENT INSURANCE INSURANCE
POLICIES
INVEST MEN

INSURANCE
PURE CUM

T POLICIES

POLICY
WHOLE LIFE UNIT LINKED MONEY ENDOWMEN
TERM PLANS
PLANS INSURANCE BACK T PLANS

FEATURES PROS CONS SUITABILITY

• Simple policy with • DEATH BENEFIT - Payable to the
guaranteed returns beneficiary when the annuitant
passes away.( Sum Assured + Accrued • Premium paid is higher
• Protection & Savings Bonus)
Plan
• MATURITY BENEFIT - Payable to
•Sum assured is paid to the beneficiary at the maturity of the • Only Few companies
the beneficiary on the policy. ( Sum Assured + Accrued
death of the insured or Bonus)
on the maturity of the
term. • TAX BENEFIT - any payment made
by a tax payer on account of Term
Insurance Policy will be allowed
deduction as per section 80C of the
Income-tax Act, 1961.
• SURRENDER VALUE –
1. WITHIN 3YRS OF BUYING THE
POLICY – Receive no
surrender value
2. MORE THAN 3YRS – Receive
surrender value.
• Low Returns • It is apt for people of
all ages & social groups
who wish to protect
as compared to term their family from
policy. Financial setback &
Looking for Benefits. E.G
SAVINGS,WEALTH
provide advantage of CREATION.ETC.
Renewability .
•It is for people who
• It provides protection want 100% return on
only for specified the Insurance Premium
period. they paid so they are
willing to accept a low
insurance cover and
obtain lump sum
amount at maturity.
39
 SUMMARY OF POLICIES
PARTICULARS TERM WHOLE ULIP MONEY ENDOWMENT
LIFE BACK

FEATURES • MATURITY BENEFIT    ( periodic 
payments)

• TAX BENEFIT (UPTO   ( UPTO 
Rs 1.5L) Rs 1L) 

• MARKET LINKED     

• SURRENDER VALUE     

TARGET • Pure • Pick up at a • Single Individuals It is apt for people

Insurance young age, package who need of all ages & social
• Suited for as premium covering savings at groups who wish to
SEGMENTS investors charged long-term certain protect their family
with short remains market intervals in from unfortunate
term life same invest- their lifetime setbacks & at the
insurance ments, tax to meet fixed same time looking
needs (10 •Diversify benefits, long & short for savings.
years or their savings and term financial
less) insurance needs along
• Who cannot • Useful to cover. with life
afford high pass on insurance e.g.
premium inheritance businessmen
• Housing without any
Loan value tax
40
cover