Presents - Safal Institute · Plan No. Name of Plan TERM INSURANCE PLANS 822. Anmol Jeevan - II...

Presents

Disclaimer

Preface

Contents

Appendix

Contents

Full Index

1. About LIC of India

2. Principles and Practice of Life Insurance

3. Selling Process

4. Underwriting Aspects

5. Life Insurance Concepts

6. Basic Insurance Contracts and Riders

7. Individual Insurance Plans

8. Business Insurance

9. Financial Tables

10. Appendix

FULL INDEX

Part-I About LIC of India

1. Brief History of Life Insurance in India.

2. Objective, Vision and Mission of LIC of India.

3. Profile of LIC of India as on 31.03.2015.

4. Grievance Redressal Policy of LIC of India.

Part-II Principles and Practice of Life Insurance

1. What is Life Insurance

2. Principles of Life Insurance Life Insurance Contract Principles of Utmost Good Faith Insurable Interest Principles of Indemnity Different Risks Needs & Insurance

3. How Surplus is Generated

4. Vesting and Distribution of Bonuses.

Continued…

5. Solvency margin and its impact on bonus rates.

6. Role of an Agent.

7. Code of conduct for agents.

8. IRDA policyholder’s protection act 2002.

Part-III Selling Process

1. The Common Denominator of Success

2. 5 Basic Requirements for Success

3. Need Based Selling Steps.

4. Prospecting.

5. 20 Point Activity System

Part-IV Life Insurance Concepts

1. Family Protection

2. An Aid to Thrift

3. Easier Terms

4. Estate Creation

Continued…

5. An Investment

6. A Device for Business Finance

7. A Complete Financial Programme

8. A Way of Life

9. Human Life Value

10. Capital Need Analysis

Part-V Underwriting Aspects

1. Selection and Classification and of Risk

2. Age Proofs

3. SUC and TRSA

4. Non-Medical Rules

5. Non-Medical Rules under Single Premium

and Bima Bachat

6. Medical Examination Rules including TPA

7. Special Medical Reports Rules

8. Validity of Medical Reports Continued…

9. Minimum waiting period for Certain Ailments

10. Personal History of Certain Diseases

11. List of Ailments for Branch Decision

12. Insurance on Female Lives

13. Insurance on Minor Lives

14. Insurance on Lives of Major Students

15. Insurance on Physically Handicapped Lives

16. Insurance on Lives of PEPs

17. Insurance on NRI Lives

18. Residence Groups and ratings for NRI’s

19. RBI Foreign Exchange Management – Life Insurance Memorandum (LIM)

20. Occupational Ratings

21. Applicable Clauses Continued…

22. Financial Underwriting

23. Summary of Financial Underwriting

24. Example of Financial Underwriting

Part-VI

Basic Insurance Contracts and Riders

1. Basic Insurance Contracts

2. Accident & Disability Benefit Rider

3. Linked Accidental Death Benefit Rider

4. New Term Assurance Rider

5. Premium Waiver Benefit Rider

Part-VII Individual Insurance Plans

Plan No. Name of Plan

TERM INSURANCE PLANS

822. Anmol Jeevan - II

823. Amulya Jeevan- II Continued…

825. e-Term

Comparison 823 v/s 825

ENDOWMENT TYPE PLANS

814. New Endowment Plan

815. New Jeevan Anand

Paid and SV under 815

827. Jeevan Rakshak

830. Limited Payment Endowment

833. Jeevan Lakshya

836. Jeevan Labh

838. Jeevan Pragati

MONEY BACK PLANS

820. New Money Back Plan – 20 years

821. New Money Back Plan- 25 years

841. Bima Diamond

Continued…

CHILDREN PLANS

832. Children Money Back

834. Jeevan Tarun

PENSION PLANS 818. New Jeevan Nidhi

189. New Jeevan Akshay – VI

SINGLE PREMIUM PLANS

816. New Bima Bachat

817. Single Premium Endowment Plan

ULIP PLANS

835. New Endowment Plus

HEALTH INSURANCE PLANS

904 Jeevan Arogya

Continued…

Part-VIII Business Insurance

1. Key Man Insurance

2. Partnership Insurance

3. Employer Employee Insurance

4. Employee Retention Scheme

5. Salary Saving Scheme

Part-IX Financial Tables

1. Future Value of Single Payment

(Compound Interest) 2. Future Value of Annual Payment (Sinking

Fund) 3. Present Value of Annual Payments

(Discounting Factors)

4. Effective interest rate

Continued…

Part-X Appendix

1. Non- Medical Charts

2. Special Medical Reports Chart

3. Medical Chart for Minors

4. Jeevan Arogya Medical Report Chart

5. Bonus Rates as on 31.03.2015

6. Bonus rates with FAB as on 31.03.2015

7. MHR Limits

8. KYC Norms

9. Rate of interest for FY 2016-17

10. Settlement Options

11. Back Dating Rules

12. Advance Payment of Premiums

13. Tax Laws and Life Insurance (A.Y. 2017 – 18)

14. Attachment of Policy

15. MWP Act Policies

16. HUF Policies

17. Check List before submitting proposal form

Continued…

18. Commission rates

19. Results of LIC 2015-16

20. Death Claim analysis 2014-15

Part-VI Individual Insurance Plans

1. TERM INSURANCE PLANS

2. ENDOWMENT TYPE PLANS

3. MONEY BACK PLANS

4. CHILDREN PLANS

5. PENSION PLANS

6. SINGLE PREMIUM PLANS

7. HEALTH INSURANCE PLAN

ENDOWMENT TYPE PLANS

814. New Endowment Plan

815. New Jeevan Anand

Paid and SV under 815

827. Jeevan Rakshak

830. Limited Payment Endowment

833. Jeevan Lakshya

836. Jeevan Labh

PLAN 833 – Jeevan Lakshya

(1) Details & Benefits

(2) Examples

(3) Features & Conditions

(4) Underwriting Rules

PLAN 833 LIC’s JEEVAN LAKSHYA

(Cir: PD/67 Dtd 11/03/2015, U&R/121 Dtd 11/03/2015, Launch

Date: 12/03/2015) DETAILS:

This is a limited premium, non-linked, with profits Endowment Plan.

Premiums are payable for 3 years less than policy term.

DEATH BENEFIT:

Sum Assured on Death (Should not be less than 105% of total

premiums paid):

i) 10% of Basic S.A will be paid from policy Anniversary after

death of life assured till policy anniversary prior to

Maturity and

ii) 110% of Basic S.A. + Bonus for full term + FAB, if any, will

be paid on date of Maturity.

MATURITY BENEFIT:

Basic Sum Assured + Vested Bonus + FAB if any.

UIN No: 512N297V01

Example*: (Plan 833)

Age- 35, S.A.- `5,00,000, Policy Term - 21 years,

PPT- 18 years ( 21-3), Basic Yearly Premium: `25,757

*Bonus and FAB rates given under example are for illustration purpose only.

Client Specific Benefit illustration @4% & 8% gross investment return must be provided to Prospect.

Entry Maturity at Age 35 Age 53 Age 56

= Basic S.A. + Vested Bonus + FAB = `5,00,000 + `5,04,000 ( 48x500x21) + `50,000 (100x500)

=`10,54,000 i. 10% of S.A. i.e `50,000 will be paid from 6th to 20th Policy Anniversary.

i.e for 15 years. Total Amount `50,000 x 15 =`7,50,000 ii. At Maturity : 110 % of S.A + Vested Bonus for 21 years + FAB = `5,50,000 + `5,04,000 (48x500x21) + `50,000 (100x500) = `11,04,000 Total Death Benefit =`7,50,000 + `11,04,000 =`18,54,000

105% of Total Basic Premiums Paid= `25,757x 6 x 1.05 = `1,62,269 Death benefit payable is more than 105% of total Basic Premiums Paid.

In case of death where Term Rider and Accident Rider are opted: Under Natural Death : Term Rider S.A opted will be paid immediately. Under Accidental Death : Term Rider S.A + Accidental Rider S.A opted will be paid immediately.

Maturity Benefit

Premium Stops

In case of Death at age 40 (6th Policy year)

Death Benefit

Features & Conditions: (Plan 833)

Minimum age at entry : 18 years lbd Maximum age at entry : 50 years nbd Maximum maturity age : 65 years nbd Policy Term : 13 to 25 years. Premium Paying Term :( Policy Term -3) Years Minimum S.A. : `1,00,000/- & in multiples of ` 10,000 thereafter. Maximum S.A. : No limit

Available Riders: 1. Accident & Permanent Disability Benefit for full policy term/age 65- Max

1 Crore. 2. Term Assurance Rider.

Mode of Payment: Yearly, Half Yly, Qly & Mly ( SSS & ECS)

Rebates: Mode Rebate Yearly : 2%, Half Yly : 1 %

High Basic S.A. Rebate Upto 1,90,000 : Nil 2,00,000 to 4,90,000 : `2.00 %o Basic SA 5,00,000/- & above : `3.00 %o Basic SA

Paid Up/ Surrender/Policy Loan: After payment of premium of 3 full years.

Revivals: Within 2 years of FUP.

Back Dating: Allowed with lean Month’s benefits.

Proposal Form: Revised 300.

Service Tax: 1st Year of Policy : 3.625% 2nd Year onwards : 1.8125%

Tax Benefits : On Basic Premiums : u/s 80C Maturity/Death claim : u/s 10(10D)

Underwriting Rules: (Plan 833)

Without Term Rider:

Non -Medical Schemes: All Allowed.

Non-Standard Age Proofs: All Allowed.

Female Lives : All Allowed. Pregnant ladies: Cat I & II only up to 24 weeks of pregnancy.

Major Students: Max rated up S.A. inclusive of all plans `1crore. S.A. beyond `1 crore at ZUS/CUS with MM’s recommendation.

Sub-Standard Major lives: Up to EMR Class Ten only. Physically Handicapped lives should be gainfully employed.

Occupation/Residence Extra: Policy term

Rating Up Factor

Policy term

Rating Up Factor

10 Yrs 1.35 11 yrs 1.30

12 yrs 1.25 13-15 yrs 1.20

16-18 yrs 1.15 19-25 yrs 1.10

Actual Sum Assured (ASA) for SUC: For FMR, Special Reports, MHR & TRSA: Basic S.A. only.

Keyman/Partnership/Empl-Employee: Allowed only under Employer-Employee

NRIs & FNIOs Residence Group: Group I & II : Not Allowed. Group III to VI : Allowed with extra. Group VII : Allowed without extra. House wives and NMS Scheme: Group V, VI and VII only. Mail Order : Only NRIs of Group III to VII.

With Term Rider: U/W Rules of Term Rider will apply.

Non Medical Charts

Non Medical General

Age (NBD)

Sum Under Consideration (SUC)

Standard Age proof

NSAP – I NSAP - II NSAP- III

18 to 35 5 lakhs 5 lakhs 3 lakhs 2 lakhs

36 to 45 3 lakhs 3 lakhs 2 lakhs 1.50 lakhs

46 to 50 2 lakhs 2 lakhs 1.25 lakhs 1.25 lakhs

Plans

Allowed

814,815,816,817,818, 820, 821, 830, 833, 835,

836, 837 & 838

814,815,816, 817,818,820

821, 830, 833, 835, 836 & 837

814,815,816, 817,818, 820, 821, 833, 835

& 836

*SUC= 1.25 times of S.A under plans 815,820, 821, 830 & 838

NMS/NMG Professional/NRIs & FNIO’s

Non Medical for Minors and Major Students

Age SUC Plans Allowed Major

Students up to age 25 yrs

15 lakhs 814,815,816,817,818,820,821, 830, 833,

835, 836, 837 & 838

0 to 9 years 25 lakhs 814, 817, 832, 834, 835, 836 & 837

10 to 17 years 8 lakhs 814, 816, 817, 820, 821, 832, 834, 835,

836, 837 & 838


Age (NBD) as on date of Proposal

Sum Under Consideration (SUC)

Non-Medical Special

NMG for Professionals

NRI’s & FNIOs under NMS/Professional of

Group V, VI & VII Countries only.

18 to 35 Rs-20 lakhs Rs-15 lakhs Rs-20 lakhs



Plans Allowed 814,815,816,817,818,820,821,830, 833, 835, 836, 837, 838,

Term Rider & PWB


SPECIAL MEDICAL REPORT CHART Applicable to proposals under medical category for all plans

(Cir: U&R/4/2008 dt. 15/01/2008)

Notes: For Critical Illness Rider: Age 36 and above, ECG, Hb% & FBS are compulsory for any SA.

For Revivals age 56 and above: Special Reports are not required for sum to be revived upto ` 50,000/-.

Sum Under

Consideration

Age at Entry (Last Birthday)

Upto 35 years

36 to 45 years 46 to 55 years 56 & above

Upto 2,00,000 Nil Nil Nil Rest ECG, FBS

(Rs.150/-)

2,00,001 to 5,00,000

Nil Nil Rest ECG ,FBS

(Rs.150/-)

Rest ECG, FBS,

Lipidogram, RUA, Hb%

( Rs. 380/-)

5,00,001 to 10,00,000

Nil Nil

Rest ECG, FBS, Lipidogram, RUA,

Hb%

( Rs.380/-)

Rest ECG, FBS, Lipidogram, RUA,

Hb%

( Rs.380/-)

10,00,001 to

15,00,000 Nil

Lipidogarm, FBS, RUA ,

Elisa for HIV, Hb%

(Rs.520/-)

Rest ECG, SBT-13, RUA,

Hb% (Rs. 1,170/-)

Rest ECG, Haemogram,

SBT-13, CTMT, RUA,

(Rs. 2,020/-)

15,00,001 to

35,00,000

Lipidogarm, FBS, Elisa

for HIV, Hb% (Rs. 490/-)

Rest ECG, SBT-13, RUA,

Hb% ( Rs. 1,170/-)

Rest ECG, Haemogram, SBT-13, RUA,

CTMT, (Rs. 2,020/-)


CTMT, HbAlc (Rs. 2,270/-)

35,00,001 to

50,00,000

Rest ECG, SBT-13,

RUA, Hb%

( Rs. 1,170/-)


SBT-13, RUA, CTMT,

(Rs. 2,020/-)


SBT-13, RUA, CTMT, HbAlc (Rs. 2,270/-)


CTMT, HbAlc, Chest X-Ray (Rs. 2,370/-)

50,00,001 and Above

Rest ECG,

Haemogram, SBT-13,

RUA.

(Rs. 1,220/-)

Rest ECG,

Haemogram, SBT-13, RUA, CTMT, HbAlc

(Rs. 2,270/-)

Rest ECG,

Haemogram, SBT-13, RUA, CTMT, HbAlc,

Chest X-Ray (Rs. 2,370/-)

Rest ECG,

Haemogram, SBT-13, RUA, CTMT, HbAlc,

Chest X-Ray (Rs. 2,370/-)

Results of LIC of India For the year 2015-16

Valuation Surplus after Tax Govt. Share @ 5% 95% to be distributed to Policy Holders (Investment by Govt in LIC in 1956 was ` 5.00 crores)

: ` 50,035.14 Crores : ` 2,501.75 Crores : ` 47,533.38 Crores

Total Number of Policies in force-Individual (More than Population of Many Countries)

: 29.02 Crores

Total Premium Income (The daily collection of Corporation is ` 729 Crores)

: ` 2,66,265 Crores

Total Policy Payments : ` 1,43,445 Crores

Total Gross Income for the year (Four Times the income of leading Bank in India)

: ` 4,24,186 Crores

Total Number of Claims Settled Total Amount paid towards claims

: 2,15,71,000 : ` 1,01,042 Crores

Percentage of Death Claim Settled Percentage of Maturity Claims Settled

: 99.55% : 99.75%

First Year Premium Income : ` 97,674 Crores

Total Life Fund : ` 20,57,625 Crores

Total Assets of Corporation : ` 22,10,378 Crores

Investment in Govt/Infra/Social Sector : ` 14,85,901 Crores

LIC’s Market Share as on 31/03/2016 ( Balance with 23 other Companies)

: 70.44% on Premium : 76.84% on Policies

Death Claim Analysis of All Life Insurers for the Year 2014-15

Source: IRDA's Annual Report 2014-2015, Page no 127, Available at www.irda.gov.in

Company

% of Claims Paid

% of Claims Repudiated

% of Claims Pending

Number Amount Number Amount Number Amount

Aegon Religare 89.78 85.93 10.00 14.38 0.22 0.31

Aviva 83.07 71.99 16.40 26.63 0.53 1.38

Bajaj Allianz 91.85 80.98 5.13 10.55 3.02 8.47

Bharati AXA 80.90 70.92 16.22 22.45 2.88 6.63

Birla Sunlife 95.30 87.10 3.02 7.35 1.68 5.55

Canara HSBC 89.58 79.77 7.29 13.65 3.13 6.59

DLF Pramerica 57.19 48.80 35.47 41.19 5.77 7.88

Edelweiss Tokio 57.14 53.76 37.82 38.58 5.04 7.66

Future Generali 83.70 68.53 14.54 23.63 1.76 7.84

HDFC Life 90.50 65.55 7.24 21.13 2.26 13.32

ICICI Prudential 93.80 79.56 5.42 17.25 0.78 3.19

IDBI Federal 75.80 70.90 19.67 21.26 4.53 7.84

India First 72.21 60.43 22.84 27.92 4.95 11.65

Exide Life 86.10 67.24 12.27 27.41 1.40 4.52

Kotak Mahindra 90.73 82.15 6.03 8.52 3.24 9.33

Max Life 96.03 93.59 3.90 5.61 0.07 0.80

Met Life 92.86 85.70 5.56 8.42 1.50 5.66

Reliance Life 83.84 73.63 10.37 15.81 5.79 10.56

Sahara 89.97 89.84 6.43 6.29 3.60 3.87

SBI Life 89.43 83.72 7.41 7.67 3.16 8.61

Shriram Life 65.66 51.21 23.11 30.10 11.22 18.69

Star Union Dai-ichi 94.08 91.54 5.61 7.58 0.32 0.89

Tata AIA 94.47 89.54 4.57 7.95 0.96 2.51

Private Total 89.40 78.39 7.78 14.52 2.80 7.04

LIC of India 98.19 95.51 1.15 2.06 0.48 2.19

http://www.irda.gov.in/

Notes:

1. More percentage of Number of claims are repudiated by the

private companies as compared with LIC of India.

2. Percentage of Claim Amount Repudiated is even more; this

shows that more High Sum Assured claims are being

repudiated by private companies. ( Look at the figures of

Aviva, HDFC, ICICI, Reliance and others)

3. During the year 2014-15 Claim settlement performance of Big

Private Companies like SBI, HDFC, ICICI has reduced as

compared with last year.

4. The Pending claims of private companies are also on higher

side; this shows delay in settlement of claims by private

companies.

Presents - Safal Institute · Plan No. Name of Plan TERM INSURANCE PLANS 822. Anmol Jeevan - II...

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