ENDOWMENT PLANS Prepared by: Shrikant Deshpande Shrikant Deshpande Nitesh Urwete Nitesh Urwete Dilip Dhote Dilip Dhote Omraj Gurunule Omraj Gurunule Abhilash Chandra Abhilash Chandra

Introduction of Endowment Plans Life insurance products are usually referred to as ‘ Plans ’ of insurance. Plans of insurance that provide only death cover are called Term Insurance. Those that provide only survival benefits are called Pure Endowment Plans. All traditional life insurance plans are combination of these two basic plans. A term insurance plan along with a pure endowment plan, when offered as a single product is called an Endowment Assurance Plan. A term insurance plan with unspecified period is called a Whole Life Plan.

Need Based Analysis Who can be insured ? 1. Individual adult 2. Children ( minor ) 3. Two or more persons jointly. What can be Sum Assured ? In what contingency S.A. be payable ? On death or survival. When would the S.A. be payable ? How would S.A. be payable ? lump sum or in installments. What would be the term of the policy ?

T-14 Endowment Plan Min. age at entry- 12 yrs nbd; Max. age at entry- 65 yrs nbd. Max. age at maturity- 75 yrs. Min. term – 5 yrs, Max. term- 55yrs. Min. S.A.- 50,000 ; Max- no limit. Amount on maturity- S.A. + Bonus + Terminal Bonus. On death:- 1. Natural: S.A. + Bonus for no. of years prem. Paid + Terminal bonus. 2. Accidental : Double S.A. + Bonus for no. of yrs prem. Paid + Terminal bonus. Acc. Benefit Max. 50 lacs. Rider : Term Assurance & Critical illness rider available.

T- 48 Limited payment endowment (With profits) Min. age at entry: 12 yrs. ( NBD) Max. age at entry : 1. Regular mode - 60 yrs nbd 2. Single premium- 65 yrs nbd Max. age at maturity- 75 yrs. Policy term : 1. Regular mode – 15,20 & 25 yrs. 2. Single premium- 5 yrs to 50yrs. Min. S.A. : 50,000/- ; Max : No limit. Contd……….

Contd…. Premium paying term for regular mode: 1. For 15 yrs - 5 & 10 yrs. 2. For 20 yrs - 5,10 & 15 yrs. 3. for 25 yrs - 5,10,15 & 20 yrs. Amount On maturity : S.A. + Bonus of 25 yrs. + Final Bonus. On Death :- 1. Natural – S.A. + Bonus for no. of years till death+ FAB if any. 2. Accidental Death – S.A. + Additional S.A. for DAB + Bonus for no. of yrs till death+ FAB if any.

T- 88 Jeevan Mitra-Double Cover Min. age at entry : 18 yrs Max. age at entry: 50 yrs. Max. age at maturity : 70 yrs. Min. term : 15 yrs ; Max term 30 yrs. Min. S.A. : 50,000 ; Max. S.A.: No limit. Death Benefits: 1. Natural Death- Double S.A. + Bonus for no. of yrs premium paid + Terminal bonus if any. 2. Accidental Death – Three times S.A. + Bonus for no. of yrs. Prem. Paid + Terminal bonus. Acc. Benefit : max 50 lacs.

T- 133 Jeevan Mitra – Triple Cover Differential Point: Death Benefits: 1. Natural Death -Triple S.A. + Bonus for no. of yrs prem. Paid + Terminal bonus if any. 2. Accidental Death – Four times S.A. + Bonus for no. of yrs prem. Paid + Terminal Bonus if any.

T- 91 New Janaraksha (With Profits) Specially designed for workers in unorganized sectors. e.g. Daily wage earner, farmers, small businessmen Min age at entry : 18 yrs nbd. Max age at entry : 50 yrs nbd. Min. term: 12 yrs ; Max term 30 yrs. Min. S.A.: 30,000 ; Max: 10,00,000. Special feature: If at least 2 yrs prem. Have been paid, and if further premiums are not paid, then full death cover will continue for the period of 3 yrs from date of first unpaid premium. Cntd…

Death benefits: 1. Natural death : S.A. + Bonus for no. of yrs. Prem. paid + Terminal bonus if any. 2. Accidental death: Double S.A. + Bonus for no. of yrs. Prem. paid + Terminal bonus. Acc. Benefit max 7.5 lacs Contd…….

T-90 Marriage Endowment/ Educational Annuity Min. age at entry : 18 yrs lbd Max age at entry : 60 yrs. Max age at maturity : 70 yrs. Min term: 5 yrs ; Max term 25yrs. Min S.A.: 50,000/- ; Max : no limit. Death benefits: 1. Natural Death: S.A. + bonus 2. Accidental Death: S.A paid immediately (max 25lakh incl. of all plans) + All benefits of natural death.

On maturity : S.A. + Acc. Bonus + Terminal Bonus. Special feature: This plan is specially designed for child’s education/marriage. It is very ideal for parents having children less than 10 yrs of age. Term chosen should coincide with the maturity and marriageable age.

Selling Point : For endowment plan. How better than whole life. Long live the king, Long live the King, eat jam & butter; eat jhunka & bhakar; even if you die, Family wants u to die, Family will not suffer. So that they can eat jam& butter.

TRUST- THY NAME IS LIC