UNIT ITERM INSURANCEINTRODUCTIONTerm life insuranceorterm assuranceislife insurancethat provides coverage at a fixed rate of payments for a limited period of time, the relevant term. After that period expires, coverage at the previous rate of premiums is no longer guaranteed and the client must either forgo coverage or potentially obtain further coverage with different payments or conditions. If the life insured dies during the term, the death benefit will be paid to thebeneficiary. Term insurance is the least expensive way to purchase a substantial death benefit on a coverage amount per premium dollar basis over a specific period of time.Term life insurance can be contrasted topermanent life insurancesuch aswhole life,universal life, andvariable universal life, which guarantee coverage at fixed premiums for the lifetime of the covered individual unless the policy owner allows the policy to lapse. Term insurance is not generally used for estate planning needs or charitable giving strategies but is used for pure income replacement needs for an individual. Term insurance functions in a manner similar to most other types of insurance in that it satisfies claims against what is insured if the premiums are up to date and the contract has not expired, and does not provide for a return of premium dollars if no claims are filed. As an example, auto insurance will satisfy claims against the insured in the event of an accident and a home owner policy will satisfy claims against the home if it is damaged or destroyed by, for example, a fire. Whether or not these events will occur is uncertain. If the policy holder discontinues coverage because he has sold the insured car or home, the insurance company will not refund the full premium. This is purely risk protection.

More common than annual renewable term insurance is guaranteed level premium term life insurance, where the premium is guaranteed to be the same for a given period of years. The most common terms are 10, 15, 20, and 30 years.

In this form, the premium paid each year remains the same for the duration of the contract. This cost is based on the summed cost of each year's annual renewable term rates, with atime value of moneyadjustment made by the insurer. Thus, the longer the period of time during which the premium remains level, the higher the premium amount. This relationship exists because the older, more expensive to insure years are averaged, by the insurance company, into the premium amount computed at the time the policy is issued.Most level term programs include a renewal option, and allow the insured person to renew the policy for a maximum guaranteed rate if the insured period needs to be extended. The renewal may or may not be guaranteed, and the insured person should review the contract to determine whether evidence of insurability is required to renew the policy. Typically, this clause is invoked only if the health of the insured deteriorates significantly during the term, and poor health would prevent the individual from being able to provide proof of insurability.Most term life policies include an option to convert the term life policy to a Universal Life or Whole Life policy. This option can be useful to a person who acquired the term life policy with a preferred rating class and later is diagnosed with a condition that would make it difficult to qualify for a new term policy. The new policy is issued at the rate class of the original term policy. This right to convert may not extend to the end of the Term Life policy. The right may extend a fixed number of years or to a specified age, such as convertible to age seventy.More common than annual renewable term insurance is guaranteed level premium term life insurance, where the premium is guaranteed to be the same for a given period of years. The most common terms are 10, 15, 20, and 30 years.In this form, the premium paid each year remains the same for the duration of the contract. This cost is based on the summed cost of each year's annual renewable term rates, with atime value of moneyadjustment made by the insurer. Thus, the longer the period of time during which the premium remains level, the higher the premium amount. This relationship exists because the older, more expensive to insure years are averaged, by the insurance company, into the premium amount computed at the time the policy is issued.Most level term programs include a renewal option, and allow the insured person to renew the policy for a maximum guaranteed rate if the insured period needs to be extended. The renewal may or may not be guaranteed, and the insured person should review the contract to determine whether evidence of insurability is required to renew the policy. Typically, this clause is invoked only if the health of the insured deteriorates significantly during the term, and poor health would prevent the individual from being able to provide proof of insurability.Most term life policies include an option to convert the term life policy to a Universal Life or Whole Life policy. This option can be useful to a person who acquired the term life policy with a preferred rating class and later is diagnosed with a condition that would make it difficult to qualify for a new term policy. The new policy is issued at the rate class of the original term policy. This right to convert may not extend to the end of the Term Life policy. The right may extend a fixed number of years or to a specified age, such as convertible to age seventy.More common than annual renewable term insurance is guaranteed level premium term life insurance, where the premium is guaranteed to be the same for a given period of years. The most common terms are 10, 15, 20, and 30 years.In this form, the premium paid each year remains the same for the duration of the contract. This cost is based on the summed cost of each year's annual renewable term rates, with atime value of moneyadjustment made by the insurer. Thus, the longer the period of time during which the premium remains level, the higher the premium amount. This relationship exists because the older, more expensive to insure years are averaged, by the insurance company, into the premium amount computed at the time the policy is issued.Most level term programs include a renewal option, and allow the insured person to renew the policy for a maximum guaranteed rate if the insured period needs to be extended. The renewal may or may not be guaranteed, and the insured person should review the contract to determine whether evidence of insurability is required to renew the policy. Typically, this clause is invoked only if the health of the insured deteriorates significantly during the term, and poor health would prevent the individual from being able to provide proof of insurability.Most term life policies include an option to convert the term life policy to a Universal Life or Whole Life policy. This option can be useful to a person who acquired the term life policy with a preferred rating class and later is diagnosed with a condition that would make it difficult to qualify for a new term policy. The new policy is issued at the rate class of the original term policy. This right to convert may not extend to the end of the Term Life policy. The right may extend a fixed number of years or to a specified age, such as convertible to age seventy.More common than annual renewable term insurance is guaranteed level premium term life insurance, where the premium is guaranteed to be the same for a given period of years. The most common terms are 10, 15, 20, and 30 years.In this form, the premium paid each year remains the same for the duration of the contract. This cost is based on the summed cost of each year's annual renewable term rates, with atime value of moneyadjustment made by the insurer. Thus, the longer the period of time during which the premium remains level, the higher the premium amount. This relationship exists because the older, more expensive to insure years are averaged, by the insurance company, into the premium amount computed at the time the policy is issued.Most level term programs include a renewal option, and allow the insured person to renew the policy for a maximum guaranteed rate if the insured period needs to be extended. The renewal may or may not be guaranteed, and the insured person should review the contract to determine whether evidence of insurability is required to renew the policy. Typically, this clause is invoked only if the health of the insured deteriorates significantly during the term, and poor health would prevent the individual from being able to provide proof of insurability.Most term life policies include an option to convert the term life policy to a Universal Life or Whole Life policy. This option can be useful to a person who acquired the term life policy with a preferred rating class and later is diagnosed with a condition that would make it difficult to qualify for a new term policy. The new policy is issued at the rate class of the original term policy. This right to convert may not extend to the end of the Term Life policy. The right may extend a fixed number of years or to a specified age, such as convertible to age seventy.More common than annual renewable term insurance is guaranteed level premium term life insurance, where the premium is guaranteed to be the same for a given period of years. The most common terms are 10, 15, 20, and 30 years.In this form, the premium paid each year remains the same for the duration of the contract. This cost is based on the summed cost of each year's annual renewable term rates, with atime value of moneyadjustment made by the insurer. Thus, the longer the period of time during which the premium remains level, the higher the premium amount. This relationship exists because the older, more expensive to insure years are averaged, by the insurance company, into the premium amount computed at the time the policy is issued.Most level term programs include a renewal option, and allow the insured person to renew the policy for a maximum guaranteed rate if the insured period needs to be extended. The renewal may or may not be guaranteed, and the insured person should review the contract to determine whether evidence of insurability is required to renew the policy. Typically, this clause is invoked only if the health of the insured deteriorates significantly during the term, and poor health would prevent the individual from being able to provide proof of insurability.Most term life policies include an option to convert the term life policy to a Universal Life or Whole Life policy. This option can be useful to a person who acquired the term life policy with a preferred rating class and later is diagnosed with a condition that would make it difficult to qualify for a new term policy. The new policy is issued at the rate class of the original term policy. This right to convert may not extend to the end of the Term Life policy. The right may extend a fixed number of years or to a specified age, such as convertible to age seventy.

LIFE INSURANCELife insuranceorlife assurance, especially in theCommonwealth, is a contract between aninsurance policyholder and aninsurer or assurer, where the insurer promises to pay a designatedbeneficiarya sum of money (the benefit) in exchange for a premium, upon the death of an insured person (often the policy holder). Depending on the contract, other events such asterminal illnessorcritical illnesscan also trigger 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.Life policies are legal contracts and the terms of the contract describe the limitations of the insured events. Specific exclusions are often written into the contract to limit the liability of the insurer; common examples are claims relating to suicide, fraud, war, riot, and civil commotion.Life-based contracts tend to fall into two major categories: Protection policies designed to provide a benefit, typically a lump sum payment, in the event of specified event. A common form of a protection policy design is term insurance. Investmentpolicies where the main objective is to facilitate the growth of capital by regular or single premiums. Common forms (in the U.S.) arewhole life,universal life, andvariable lifepolicies.An early form of life insurance dates toAncient Rome; "burial clubs" covered the cost of members' funeral expenses and assisted survivors financially. The first company to offer life insurance in modern times was theAmicable Society for a Perpetual Assurance Office, founded in London in 1706 byWilliam TalbotandSir Thomas Allen.[2][3]Each member made an annual payment per share on one to three shares with consideration to age of the members being twelve to fifty-five. At the end of the year a portion of the "amicable contribution" was divided among the wives and children of deceased members, in proportion to the amount of shares the heirs owned. The Amicable Society started with 2000 members.[4][5]The firstlife tablewas written byEdmund Halleyin 1693, but it was only in the 1750s that the necessary mathematical and statistical tools were in place for the development of modern life insurance.James Dodson, amathematicianand actuary, tried to establish a new company aimed at correctly offsetting the risks of long term life assurance policies, after being refused admission to theAmicable Life Assurance Societybecause of his advanced age. He was unsuccessful in his attempts at procuring a charter from thegovernment.His disciple,Edward Rowe Mores, was able to establish theSociety for Equitable Assurances on Lives and Survivorshipin 1762. It was the world's firstmutual insurerand it pioneered age based premiums based onmortality ratelaying "the framework for scientific insurance practice and development"[6]and "the basis of modern life assurance upon which all life assurance schemes were subsequently based".[7]Mores also gave the nameactuaryto the chief official - the earliest known reference to the position as a business concern. The first modern actuary wasWilliam Morgan, who served from 1775 to 1830. In 1776 the Society carried out the first actuarial valuation of liabilities and subsequently distributed the firstreversionary bonus(1781) andinterim bonus(1809) among its members.[6]It also used regular valuations to balance competing interests.[6]The Society sought to treat its members equitably and the Directors tried to ensure that policyholders received a fair return on their investments. Premiums were regulated according to age, and anybody could be admitted regardless of their state of health and other circumstances.[8]The sale of life insurance in the U.S. began in the 1760s. ThePresbyterianSynods inPhiladelphiaandNew York Citycreated the Corporation for Relief of Poor and Distressed Widows and Children of Presbyterian Ministers in 1759;Episcopalianpriests organized a similar fund in 1769. Between 1787 and 1837 more than two dozen life insurance companies were started, but fewer than half a dozen survived. In the 1870s, military officers banded together to found both the Army (AAFMAA) and theNavy Mutual Aid Association(Navy Mutual), inspired by the plight of widows and orphans left stranded in the West after theBattle of the Little Big Horn, and of the families of U.S. sailors who died at sea.Types of Life Insurance in India[edit]Life insurance products come in a variety of offerings catering to the investment needs and objectives of different kinds of investors. Following is the list of broad categories of life insurance products:

Term Insurance PoliciesThe basic premise of aterm insurancepolicy is to secure the immediate needs of nominees or beneficiaries in the event of sudden or unfortunate demise of thepolicyholder. The policy holder does not get any monetary benefit at the end of the policy term except for the tax benefits he or she can choose to avail of throughout the tenure of the policy. In the event of death of the policy holder, the sum assured is paid to his or her beneficiaries. Term insurance policies are also relatively cheaper to acquire as compared to other insurance products.Money-back PoliciesMoney back policies are basically an extension of endowment plans wherein the policy holder receives a fixed amount at specific intervals throughout the duration of the policy. In the event of the unfortunate death of the policy holder, the full sum assured is paid to the beneficiaries. The terms again might slightly vary from one insurance company to another.Whole life policyA whole life insurance plan covers the insured over his life. The primary feature of this product is that the validity of the policy is not defined so the policyholder enjoys the life cover throughout his life.[citation needed]Unit-linked Investment Policies (ULIP) Main article:Unit-linked insurance planUnit linked insurance policies again belong to the insurance-cum-investment category where one gets to enjoy the benefits of both insurance and investment. While a part of the monthly premium pay-out goes towards the insurance cover, the remaining money is invested in various types of funds that invest in debt and equity instruments. ULIP plans are more or less similar in comparison to mutual funds except for the difference that ULIPs offer the additional benefit of insurance.

Pension PoliciesPension policies let individuals determine a fixed stream of income post retirement. This basically is a retirement planning investment scheme where the sum assured or the monthly pay-out after retirement entirely depends on the capital invested, the investment timeframe, and the age at which one wishes to retire. There are again several types of pension plans that cater to different investment needs. Now it is recognized as insurance product and being regulated by IRDA.

Classification of life insurance Whole life insurance policy is defined as an insurance in which the insured person pays the premium in the installment basis for full duration of his/her life. After the death of insured, his/her nominee receives the insured amount. There are 3 types of whole life insurance policyOrdinary whole life insurance policy. In this policy, insured person has to pay the premium to his/her concerned insurance company till his/her death. The insured person cant utilize the insured amount because this amount will be returned after his/her nomineelimited premium whole life insurance policy:Under this policy, the insured person has to pay the premium for limited time and the insured amount will be returned after the death of insured person to his/her nomineeConvertible whole life insurance policy:It is that type of policy which can be converted to endowment life insurance policy after a certain time. It is suitable for those people who have lower income at present and they hope for increment in income in the near future. Endowment life insurance policy:It is defined as that type of insurance in which the insured person pays the premium for a certain time and after certain time they receive insured amount. If she/he dies before the insured period his/her nominee receives the insured amount. Generally endowment life insurance policy is done for 10, 15 20 years and more. The insured has to pay the premium either till the end of insured period or till the death of insured which ever is earlier.Ordinary endowment life insurance policy:Under this policy, time will be fixed foe a certain period and insured person have to pay either till the end of insured period or till his/her death. If he/she dies earlier before insured period, his/her nominee receive the amount. And if she/he is alive then himself/herself go and receive the amount.Joint endowment life insurance policy:In this policy, two or more persons are involves s the insured person .the premium amount should be paid till the insured persons death like in ordinary endowment life insurance policy.Double endowment life insurance policy:Under this policy, the insured person receives double of the insured amount is she/he is alive till the end of the maturity time. If she/he dies before the insured person his/her nominee receive only single insured amount.Pure endowment life insurance policy:Under this policy, insured person receive the insured amount after the certain time when he/she us alive. If the insured person dies before the end of maturity time the insurer becomes free from its liability. Term life insurance policyStraight term life insurance policy: Under this policy premium is paid as lump sum money. The insured time maturity period is not more than 2 year. Therefore it is known as temporary term life insurance policy. If the insured person dies before the insured period his/her nominee receives the insured amount. But if he/she is alive then he/she doesnt receive anything.Straight term life insurance policy:Under this policy premium is paid as lump sum money. The insured time maturity period is not more than 2 year. Therefore it is known as temporary term life insurance policy. If the insured person dies before the insured period his/her nominee receives the insured amount. But if he/she is alive then he/she doesnt receive anything.Renewal term life insurance policy:Under this period the insurance can be renewed after the maturity of the insured period. Second rate of premium may be higher than the first rate of premium. Because the age of the person also increases with renew of insurance. It doesnt need a new health report or any sort of gent report for renewal.Convertible term life insurance policy:It is generally done for 5, 6 or 7 years like term life insurance policy. If the insured person want to convert this insurance policy in whole life insurance policy and endowment life insurance policy it can easily be converted. On the basis of profit distributionWith profit policy:Under this policy the insured person receive the insured amount with the profit of insurance company. In other words if the insured person dies before the term of insured period his/her nominee receive only insured amount not the profit o the company. But if he/she is alive then with the amount of premium the portion of profit of the insurance company is also received by the insurer.Without profit policy: Under this policy the insured person doesnt receive the insured amount with the profit of insurance company .in other words if the insured person dies before the term of insured period or remains alive till the end his/her nominee r himself/herself receive only insured amount not the profit o the company. On the basis of number of insured:Single life insurance policy:Under this policy there is only one individual as a insured person. In other words, the life of a single person is done insurance. Single life insurance policy is applied in whole life insurance policy, endowment life insurance policy and term life insurance policy.Joint/ multiple life insurance policy :Under this policy two or more than 2 person are involved as husband and wife, partners of partnership firm and other people may conduct the joint life insurance policy. It may be applied in whole life insurance policy and endowment life insurance policy. On the basis premium payment:Single premium life insurance policy: Under this policy, insured person pay the premium to the insurance company at the beginning in the lump sum amount. There is no tension to pay the premium timely later on. It is mostly used in that case when a person wins a lottery.Regular premium life insurance policy: under this policy the insured person pay the premium up to his/her death for a certain time. In other words, the insured person pays the premium to insurance company regularly or timely.Limited payment premium life insurance policy: under this policy the insured person pay the premium up to his/her death for a certain time. The time is however less than the insured period. On the basis of payment of insured mount :Lump sum payment policy: under this policy the insured person receives the total insured amount. Even all premiums have not been paid total insured amount is received by the nominee of the insured person and if the total amount has been paid she/he receives the total insured amount himself or herself.Installment payment policy: under this policy, the insured person and nominee receive the insured amount in the installment basis. It is useful to those individual who are old and lump sum mount may be misused.ROLE OF RELIANCE LIFE INSURANCEReliance Life Insurance is amongst the top 5 private sector life insurance companies in terms of individual WRP (weighted received premium) and new business WRP. The company is by far the largest non-bank promoted private life insurer with over 10 million policy holders, a strong distribution network of over 800 branches and over 1,00,000 advisors as on March 31, 2015. Claim Settlement Ratio stands at 94.53% as of March 31, 2015.Reliance Lifes vision is "To be a company people are proud of, trust in and grow with; providing financial independence to every life we touch." As a result of this endeavour, the company has been rated amongst the Top 2 Most Trusted Private Life Insurance Service Brands by Brand Equity-Nielsen Most Trusted Brands Survey 2014.Japan's largest life insurer, Nippon Life Insurance Company, acquired 26% interest in equity share capital of the Company effective October 7, 2011 subsequent to receipt of all regulatory approval.

A life insurance policy allows you to provide the right security for your family in case of your unfortunate absence. As you are the sole bread earner of the family, an untimely demise can cause them severe financial distress. While no amount of money can ever replace a person, life insurance gives you the peace of mind, knowing that your family will have the right financial support to continue living in case of your absence.Life insurance is a long-term financial instrument that works as a financial backbone to fulfill your family members financial needs at important milestones even in your absence. Most importantly, it allows the family to pay off any mortgage, liabilities, medical expenses or loans, so that these liabilities dont cause an additional burden to them. It is therefore important, to choose an insurance policy that allows your family to continue the same kind of lifestyle and cherish the wonderful memories that come along.6 Steps to a Wholesome Protection Package0. Self-analysis What is your current family size and financial situation and where do you see yourself in the future? Are you the sole breadwinner in your family? Most importantly, analyse of your current savings and how much cover you need.1. Evaluate Options Depending on your life stage, you can evaluate life insurance policies with different coverage plans. For the basic need of family protection, aterm plancan be considered whereas for a specific type of need, you can choose from health, savings, child and other plan types.2. Research Once you have determined the amount of cover and the type of life insurance you need, you need to have complete information about the chosen type oflife insurance plan, understand the benefits and conditions of the plan.3. Calculate Premium Once you have identified the plan you need, you cancalculate the premiumpayable on the plan, depending on the coverage you require.4. Read the offer document This is the most critical stage of buying any policy; it is always advisable to have a complete understanding of the offer documents with your insurance agent, before signing anything. Do not hesitate to ask your agent any policy related questions.5. Final Confirmation Life insurance is for life. So conduct an extensive analysis and have complete confidence in the plan that you are going to buy. Once the plan is purchased and later on, there is any disagreement relating to the policy, you can still back off by returning the Policy Document to the Company within the Free Look period.

More than providing peace of mind your family and yourself, life insurance can be one of the best investment decisions you have ever made. With stringent regulatory conditions to safeguard policyholders, traditional life insurance policies carry minimum investment risk and provide long-term insurance benefits.Most life insurance policies include retirement income on maturity. Another advantage of life insurance is that the coverage amount can be increased over time. So, while presently, you can afford only a low insurance premium with your current salary, over time with increasing income through promotions or new income sources, you can increase your insurance cover by paying slightly higher premiums and provide a better life cover for your family even when you are not around.While choosing a life insurance policy, it is generally advisable to look at various products that different organizations provide. Many insurance companies offer an array ofinsurance plansthat best suit the needs of the entire family.It is always better to invest your hard earned savings which will provide you with long-term benefits than to seek short-term benefits from high-risk investment ventures. Whether you have just started your career, are recently married or blessed with a family, securing adequate life insurance can prove to be the best investment decision you ever made.5 Retirement Income Planning Tips0. Envision your Lifestyle When you think about retirement, how do you visualize your life after you retire? Understand your lifestyle requirements in order to plan your retirement income as part of your life insurance.1. Evaluate the Economy With increasing prices, it is important to evaluate the value of every rupee you will save with the hope of sustaining your current lifestyle post-retirement. It is therefore important to have realistic expectations before planning to invest in a retirement plan.2. Health Implications As you get older, your health concerns increase. Your retirement income should therefore be able to take care of any medical emergencies to ensure that your health never takes a backseat in your life.3. Different Income Resources Life insurance should not be your only source of income. Consider investing in other investment avenues such as Fixed Deposits (FDs), Public Provided Fund (PPF), National Savings Certificate (NSC) etc. that secure your principal investment along with ensuring safer returns that enable you to lead a comfortable life post retirement.4. Always Plan for more Years As the quality and standard of life increases along with medical advancements, it is always recommended to plan ahead, at least 5-7 years more than your life expectancy estimates that you may have made.Life Insurance policies give you an additional advantage of tax benefit. As your income increases, the tax bracket also widens. The most apt method to save your hard earned rupee is through investment in insurance policies.With most insurance policies, the premium you pay is eligible for tax benefits. Under Existing Income Tax Laws, contribution towards life insurance policy is allowed as deduction in income, thereby decreasing tax liability. It means that you not only provide financial security for your loved ones in the unfortunate event of your demise, but also reap the benefits of additional income from tax savings through premium contribution in unit linked life insurance policies.Any profit earned from Unit linked life insurance schemes also provides tax benefits to the payee. Another advantage of life insurance is that the lump sum benefit payable on death is tax free.Life insurance is therefore your greatest ally to help you save your hard earned money from the burden of tax.4 tax Benefits through Life Insurance0. For Individuals and HUF An individual or HUF paying life insurance premium can avail deductions on taxable income up to Rs. 100,000 under existing income tax laws subject to applicable conditions.1. On payment of any bonus Any amount of insurance benefit received as a lump sum payment from life insurance policy is considered as a non-taxable amount under existing income tax laws subject to applicable conditions.2. Premium payment on behalf of spouse Income Tax deduction is also available on life insurance premiums paid on behalf of your spouse.3. On maturity of policy Life insurance proceeds are not taxable for the deceaseds family.Classification of life insurance Whole life insurance policy is defined as an insurance in which the insured person pays the premium in the installment basis for full duration of his/her life. After the death of insured, his/her nominee receives the insured amount. There are 3 types of whole life insurance policyOrdinary whole life insurance policy. In this policy, insured person has to pay the premium to his/her concerned insurance company till his/her death. The insured person cant utilize the insured amount because this amount will be returned after his/her nomineelimited premium whole life insurance policy:Under this policy, the insured person has to pay the premium for limited time and the insured amount will be returned after the death of insured person to his/her nomineeConvertible whole life insurance policy:It is that type of policy which can be converted to endowment life insurance policy after a certain time. It is suitable for those people who have lower income at present and they hope for increment in income in the near future. Endowment life insurance policy:It is defined as that type of insurance in which the insured person pays the premium for a certain time and after certain time they receive insured amount. If she/he dies before the insured period his/her nominee receives the insured amount. Generally endowment life insurance policy is done for 10, 15 20 years and more. The insured has to pay the premium either till the end of insured period or till the death of insured which ever is earlier.Ordinary endowment life insurance policy:Under this policy, time will be fixed foe a certain period and insured person have to pay either till the end of insured period or till his/her death. If he/she dies earlier before insured period, his/her nominee receive the amount. And if she/he is alive then himself/herself go and receive the amount.Joint endowment life insurance policy:In this policy, two or more persons are involves s the insured person .the premium amount should be paid till the insured persons death like in ordinary endowment life insurance policy.Double endowment life insurance policy:Under this policy, the insured person receives double of the insured amount is she/he is alive till the end of the maturity time. If she/he dies before the insured person his/her nominee receive only single insured amount.Pure endowment life insurance policy:Under this policy, insured person receive the insured amount after the certain time when he/she us alive. If the insured person dies before the end of maturity time the insurer becomes free from its liability. Term life insurance policyStraight term life insurance policy: Under this policy premium is paid as lump sum money. The insured time maturity period is not more than 2 year. Therefore it is known as temporary term life insurance policy. If the insured person dies before the insured period his/her nominee receives the insured amount. But if he/she is alive then he/she doesnt receive anything.Straight term life insurance policy:Under this policy premium is paid as lump sum money. The insured time maturity period is not more than 2 year. Therefore it is known as temporary term life insurance policy. If the insured person dies before the insured period his/her nominee receives the insured amount. But if he/she is alive then he/she doesnt receive anything.Renewal term life insurance policy:Under this period the insurance can be renewed after the maturity of the insured period. Second rate of premium may be higher than the first rate of premium. Because the age of the person also increases with renew of insurance. It doesnt need a new health report or any sort of gent report for renewal.Convertible term life insurance policy:It is generally done for 5, 6 or 7 years like term life insurance policy. If the insured person want to convert this insurance policy in whole life insurance policy and endowment life insurance policy it can easily be converted. On the basis of profit distributionWith profit policy:Under this policy the insured person receive the insured amount with the profit of insurance company. In other words if the insured person dies before the term of insured period his/her nominee receive only insured amount not the profit o the company. But if he/she is alive then with the amount of premium the portion of profit of the insurance company is also received by the insurer.Without profit policy: Under this policy the insured person doesnt receive the insured amount with the profit of insurance company .in other words if the insured person dies before the term of insured period or remains alive till the end his/her nominee r himself/herself receive only insured amount not the profit o the company. On the basis of number of insured:Single life insurance policy:Under this policy there is only one individual as a insured person. In other words, the life of a single person is done insurance. Single life insurance policy is applied in whole life insurance policy, endowment life insurance policy and term life insurance policy.Joint/ multiple life insurance policy :Under this policy two or more than 2 person are involved as husband and wife, partners of partnership firm and other people may conduct the joint life insurance policy. It may be applied in whole life insurance policy and endowment life insurance policy. On the basis premium payment:Single premium life insurance policy: Under this policy, insured person pay the premium to the insurance company at the beginning in the lump sum amount. There is no tension to pay the premium timely later on. It is mostly used in that case when a person wins a lottery.Regular premium life insurance policy: under this policy the insured person pay the premium up to his/her death for a certain time. In other words, the insured person pays the premium to insurance company regularly or timely.Limited payment premium life insurance policy: under this policy the insured person pay the premium up to his/her death for a certain time. The time is however less than the insured period. On the basis of payment of insured mount :Lump sum payment policy: under this policy the insured person receives the total insured amount. Even all premiums have not been paid total insured amount is received by the nominee of the insured person and if the total amount has been paid she/he receives the total insured amount himself or herself.Installment payment policy: under this policy, the insured person and nominee receive the insured amount in the installment basis. It is useful to those individual who are old and lump sum mount may be misused.ROLE OF ACTUARIES IN TERM INSURANCEIn todays ever-changing fi nancial environment, its important to know there are some things you dont have to worry about. Life insurance can be the foundation of fi nancial security for you and your family. It can be the base upon which other insurance and investment decisions are built.Protections and guarantees are subject to the claims-paying ability of the issuing life insurance company. As your personal situations change (i.e., marriage, birth of a child or job promotion), so will your life insurance needs. Care should be taken to ensure this product is suitable for your long-term life insurance needs. You should weigh any associated costs before making a purchase. Life insurance has fees and charges associated with it that include costs of insurance that vary with such characteristics of the insured as gender, health and age, and has additional charges for riders that customize a policy to fi t your individual needs.Why do I need life insurance? Life insurance is a way to provide cash to your family when you die. The money your benefi ciaries receive can be used to cover fi nal expenses, pay off debt and cover the mortgage or rent. It can provide a college fund, provide retirement money, create cash to pay estate taxes or simply provide a stream of income that will help your family maintain its present lifestyle. The death benefi t paid is generally income tax free. Business owners use insurance to help transfer the business to the next owner

What is term life insurance? Term life insurance provides protection over a specifi c period of time. It pays a benefi t only if the insured dies during this specifi c period or term. Terms can vary from policy to policy, but can range from a one-year term to a 30-year term. At the end of each term, the insurer may require you to provide evidence of good health to purchase continued protection. Annual renewable term may continue without further qualifi cation, but premiums may increase each year.How is permanent life or cashvalue life insurance diff erent? Permanent life insurance provides lifelong protection. As long as you pay the premiums, the death benefi t remains in eff ect. And, most permanent life insurance builds a cash value term policies dont. Permanent life insurance policies are designed and priced to be kept for long periods of time. Individuals who seek long-term protection should consider permanent insurance insteadAre there diff erent kinds of term life insurance? There are many diff erent varieties of term life insurance. Because term life insurance is designed to provide the maximum amount of protection for the least amount of premium, insurance companies can off er modifi ed plans to fi t your circumstances. Annual Renewable Term The death benefi t is a level amount. The policy is automatically renewed the next year without evidence of insurability. However, the premiums may increase each year with age. Level Term The death benefi t is a level amount. The policy is generally purchased for a period of 10, 20 or 30 years, and the premium will often remain level over the entire period. Premiums will generally be higher than the initial premium for an annual renewable term of the same face amount. But, the premium will remain the same in later years when the annual renewable term premium is still increasing. Decreasing Term Typically used to help pay the mortgage, decreasing term maintains a level premium over a specifi c number of years and the benefi t decreases every year until the selected term period expires. For example, you may purchase a $100,000, 30-year policy to help provide funds that may be used to pay the mortgage in the event of your death. The life insurance benefi t will decrease with your mortgage over time. After 30 years, your coverage will end. Credit Insurance You may receive off ers in the mail for mortgage insurance or credit insurance. They are really off ering you a type of term insurance and at a hefty price. If your health is good, you may be able to purchase an individual term policy to provide this coverage at a fraction of the cost.What are the conversion privileges? Many insurance companies off er a conversion privilege. This means you may convert or exchange your term policy for a permanent, cash-value policy equal to the current death benefi t amount of the term coverage. Usually, there are no further medical questions. Keep in mind the longer you wait to convert, the higher the premiums will be on your new permanent policy. Some restrictions may apply.What are the advantages of term life insurance? Flexibility to choose from many diff erent coverage periods Low initial cost compared to permanent insurance Large amounts of coverage can be purchased relatively inexpensively Many term policies off er a term-topermanent insurance privilege May be good for temporary needs such as a mortgage or car loan What are the disadvantages of term life insurance? Premiums can increase at renewal as you grow older Coverage may terminate at the end of the term and may become too expensive to keep at renewal Term policies do not build cash value

Term Insurance PRODUCT PROFILEThe right Life Insurance policy goes a long way in providing risk cover for the insured as well as saving hard earned money. The Term Plan project carried out for www.investorsareidiots.com involves the analysis of the various term plans provided by Life Insurance Companies. This project answers some questions on buying term insuranceThe Term Plan project carried out for www.investorsareidiots.com involves the analysis of the various term plans provided by Life Insurance Companies.This project answers some questions on buying term insurance a. Who has to buy a term plan? b. What is the use of term plans? c. Types of term plans?The parameters used for answering the question on term insurance are. Types of term plans. Types of premium paying term: There are 3 ways in which you can your premium A) Regular. B) Single. C) Limited. Entry Age: What is the age at which you can enter the policy? Sum Assured: What is the amount of premium assured in the policy? Maturity Benefit: Is there any maturity benefit for the policy? Surrender Benefit: The benefit available if you surrender the policy Accessibility: How can you buy the policy? Additional Rider Benefit: The rider available along with the policy? Alteration to Premium: Is there a possibility to increase or decrease the premium?

Term plans are the purest form of insurance products and they are very affordable with their low cost and high coverage. Term plans are not attached with any savings or investment product. In a pure term plan product, if the policy holder dies the nominees will get the money that has been promised by the insurance company as the Death Benefit for the policy holder. In a pure term policy there is no maturity or surrender benefit. In the market, many variations of Term Plan are available, which provide maturity and surrender benefit. Insurance Premium would usually consist of 3 parts, namely Mortality Charge, Administrative Expenses and Investments. Mortality Charge is the charge paid to the insurance company by the policyholder for providing him with the assurance of the Death Benefit. Expenses are administrative costs for documentation and investments are the amount invested for providing the Maturity Benefit, if any, to the customer.Since Maturity Benefit is usually zero in Pure Term Insurance Plans, there is no requirement for Investment. Hence Term Plans are the cheapest plans in the industry with the highest possible cover. Thus, any person will be able to take a high cover for the protection of his family at a very nominal cost if he opts for a Term Plan.The usual customers for this plan would be someone who is the only earning member of the family and has a number of dependents or someone who has taken a loan. It is also beneficial for high net worth individual, who needs a very high cover. In certain plans the coverage can be increased after taking the policy and hence can be availed by young individuals who do not have much liability now.Types of Term Plans Level Term Plans: The life coverage remains the same throughout the policy tenure Increasing Cover Term Plan: The life coverage increases steadily at a certain fixed rate of about 5% every year Decreasing Cover Term Plan: The life coverage decreases steadily at a fixed rate till it reaches the threshold limit. Home loan Cover Term Plan: The plan is used for covering the home loan liability Income Plan Term Plan: The plan provide monthly income for the family

Term life insurance is designed to provide immediate financial resources for your family in the event of your premature death. You choose the amount of coverage you need and the length of time (the term) you need it for. Here are some of the benefits of term life insurance:Flexible term coverageYou simply choose the term that fits your needs (typically 10 to 20 years). For example, young parents in their prime earning years might choose a 20-year termso they can protect their family until their children are through college.Protection thats affordableTerm life insurance provides financial protection over a specific time period. Because the coverage is for the specific time period you select and not your entire lifetime, it is the most affordable type of protection available.Predictable costsWith Fidelity term life insurance, there are no rising costs for the period you selectyou lock in a fixed premium. If you buy a 20-year policy, your premium will be the same for 20 years.Simple policy renewalShould you decide you want to continue your insurance beyond the term period youve selected, you can continue to pay for the coverage without any additional medical exams. After the original term period is over, however, your premiums will be subject to annual increases.Avoids legal delays and expenses3The insurance company pays your beneficiaries directly, so they receive the funds without the delays and expenses associated with the probate process that governs assets passed down via wills. Depending on the size of your estate, benefits from a life insurance policy may be subject to estate tax.Federal tax free incomeTerm life insurance proceeds are paid in a lump sum and are considered federal income tax free, which means your beneficiaries will have more money when they need it most.Analysis: In this assignment we analyzed the term plans available in the Indian Market. Presently there are 24 companies in Life Insurance Business in India The parameters we used while analyzing the term plan are Type of term plan. Type of premium paying term: There are 3 ways in which you can your premium a) Regular. b) Single. c) Limited. Entry Age: The age at which you can enter the policy Sum Assured: The amount of premium assured in the policy Maturity Benefit: Maturity benefit for the policy Surrender Benefit: The benefit available on surrender of the policy Accessibility: How to buy the policy? Additional Rider Benefit: The rider available along with the policy Alteration to Premium: Is there possibility to increase or decrease the premium?Analysis:

In this assignment we analyzed the term plans available in the Indian Market. Presently there are 24 companies in Life Insurance Business in India

The parameters we used while analyzing the term plan are

Type of term plan.

Type of premium paying term:

There are 3 ways in which you can your premium a) Regular. b) Single. c) Limited.

Entry Age: The age at which you can enter the policy

Sum Assured: The amount of premium assured in the policy

Maturity Benefit: Maturity benefit for the policy

Surrender Benefit: The benefit available on surrender of the policy

Accessibility: How to buy the policy?

Additional Rider Benefit: The rider available along with the policy

Alteration to Premium: Is there possibility to increase or decrease the premium?

Bajaj Alliance life Insurance

Bajaj Alliance Life Insurance has 3 plans in Term insurance, they are iSecure, New Risk Care II and Term Care all of which are plain vanilla term insurance. Out of these 3 plans iSecure has a better option when one compares the sum assured, maturity age and accessibility.

HDFC Standard Life

HDFC Standard Life has 3 plans under level term plan. Click 2 Protect is available online. The HDFC protection loan is to insure the family from home loan in case of any unfortunate demise.

ICICI Prudential

ICICI Prudential has 7 plans in term insurance of which five are level term plans, one return of premium term plan and one home loan term plan.

The home loan term plan is to insure policyholders family from home loan liability in case of anything unfortunate happens to policyholder.

ICICI iCare is only term plan available online.

ING Vysya Life Insurance

ING Vysya has two plans in term insurance segment. The difference between

plans is with respect to sum assured and return of premium

Life Insurance Cooperation

LIC has 4 plans all are level term plans. No online facility is available

MAX Life Insurance

Max Life has two term plans one level term and other premium return.

Met Life India

Met Life provides 5 types of term plan in which there are 3 level term plans, one return of premium and one home loan term plan. Protect Plan is an online product.

KOTAK Mahindra

Kotak offers 6 term plans, 5 are level term plans and one is micro insurance term plan. E-Term and e-Term preferred are online products.

SBI Life Insurance

SBI has two income term plan, two level term plan and one return of premium. All plans are offline.

Reliance Life Insurance

Reliance Life has 5 term plans.3 level term plans and two loan recovery loans. E-Term Plan is online product.

Aviva Life Insurance

Aviva Life Insurance has 6 tem plans, 5 of the Level Term Plan and one return of

premium.

Short Term InsurancePut simply, short term insurance is about protecting the value or the specific cost of an item or event in your life such as your car, your home or a holiday abroad.Short term insurance usually includes the following: Car insurance:This covers the financial costs involved if your car is stolen or in an accident. Besides covering the costs of replacing or repairing your vehicle, it can also cover costs to do with your passengers, and other drivers and their vehicles. Household contents insurance:Picture turning your house upside down and shaking it. Everything that falls out such as your computer, jewellery, furniture and clothes can be insured against loss, theft or damage with a household contents insurance policy. Homeowner's insurance:This covers the actual structure of your home against damage. For example, if your house floods due to a burst geyser or pipe, your homeowner's insurance will cover the costs of these repairs. Also, most financial institutions won't let you take out a home loan unless you have some kind of homeowner's insurance in place. Travel insurance:This insurance protects you should something happen while you're travelling. Examples are if your flight is cancelled, your baggage is stolen or you fall ill while you're away and need medical help.

Long Term InsuranceLong term insurance is the name given to insurance for anything that has to do with your life. As opposed to short term insurance, you can't indemnify yourself in the long term. Rather, you select a cover amount that suits your lifestyle, and thats what will be paid to you or your beneficiaries by your life insurance policy should you claim.Within life insurance, there are two main types of benefits: Death benefits:These benefits protect surviving family members should the insured life die, by providing them with either a lump sum of money or a regular income. This money can be used for things such as repaying debt, paying for a funeral or providing for children and other dependants. Living benefits:These benefits deal with the significant costs involved should something happen to you where you can't earn an income anymore. For example, if you become disabled, life insurance compensates you for the extra expenses you may incur. These can include the costs of adapting your lifestyle and paying medical bills not covered by your medical aid. Retrenchment cover provides you with an income should you become retrenched and stop earning an income.

FINDINGS Adaptation to the relevant risk-free term structure or Counter-Cyclical Premium (CCP): Crisis measure to complement market observations when these are determined to be temporarily unreliable or unfit for the prudential purpose, due to spread-related crisis situations in financial markets. Extrapolation: Properties of modelling used to value liabilities in order to supplement market observations when reliable market information is no longer available. Classical Matching Adjustment: Permanent measure providing an adjusted riskfree rate for (re)insurance annuities managed under a strict asset liability matching regime which does result in an immaterial exposure to short-term market volatility. Extended Matching Adjustment: The extension of the former measure envisaged to cover business of a long-term nature, but with a lower degree of certainty and predictability of cash flows. Transitional: Measure providing a smooth transition to Solvency II for certain long-term guarantees business underwritten under Solvency I economic and prudential conditions, avoiding disruptive events whilst ensuring right incentives. Extension of the Recovery Period: Measure to allow for an adjustment of the supervisory reaction to an individual breach of the solvency capital requirements in cases of exceptional falls in financial markets. Suggest an improvement or addition to the Insurance and Risk Management Glossary Buy a print version of the Insurance and Risk Management Glossary Link to the Insurance and Risk Management Glossary

CONCLUSIONIn the modern scenario and in an era of globalization, life is full of risks, on every step of life; there is a risk of life. Being a social animal man always tries to reduce risk. The business of insurance is related to the protection of economic values of assets. The asset is valuable to the owner, because he expects to get some benefits from it. Although insurance cannot prevent the occurrence of accident but it provides for the losses caused thereto. Basically, insurance is a means to identify the risks by the payment of nominal sum of premium. Hindu philosophy gives the axiomatic truth of the nature of insurance "Yat bharvathi tat nasyathi' which means whatever is created will be destroyed. Thus, creation is inevitably followed by destruction. Destruction is an optimum change to the worse, in that sense change is natural course and its occurrence involves risk.The need for insurance was not felt in India till the 19th century. The Joint family system and the cohesive living in the villages were working well. As the families, split into nuclear families, the need for insurance cover becomes stronger and more pronounced. Today, insurance business is one of the fast promising financial services, mainly in the developing nation like India. Insurance business performs remarkable feats by insuring the insurable public and its properties. However, it is submitted that even after six decades of the liberalization, the progress in insurance sector in India has not been satisfactory.It cannot be denied that the modern industrialization society has rendered man and his property most vulnerably exposed to different kinds and varying 271 degrees of risks and uncertainties. The annual losses to individuals and businessman from premature deaths, health, problems, fire, water, accident, wind, storm, sea perils, earthquakes, floods, dishonesty, negligence unemployment etc are beyond estimation and hence indicate the importance of recognising and meeting them intelligence. In order to avoid these unexpected and unfortunate calamities man has devised various plans to protect himself. One such rational method is insurance.Today, the entry of private players in the Indian insurance market has changed the nature of competition and the vigorous campaigns of these players have increased customer awareness. This has led to rapid increase in insurance business and a sizeable gain of this has also been reaped by Life Insurance Corporation of India (LIC). Today, the consumer is the focus of all marketing strategies and the only viable means of survival and growth in the insurance competition is by developing higher value to the consumer. There is a shift in the paradigm from meeting consumers, needs to mass customization strategies for delivering value. Therefore, in the days to come, marketing success would not be gauged by increasing marketing share by any means, but by delivering higher value to the consumer