Life Insurance is a form of risk management primarily used to transfer the risk of uncertain loss. It provides compensation for financial loss only not profit. Life insurance is a protection against the RISK of financial loss that would result from the premature death of an insured. The named beneficiary receives the proceeds and is thereby safeguarded from the financial impact of the death of the insured. The death benefit is paid by a life insurer in consideration of premium payments made by the insured.

1. Life Insurance is a form of risk management primarily used to transfer the risk of uncertain loss.
It provides compensation for financial loss only not profit.

2. LIFE Insurance
Life insurance is a protection against the RISK of financial loss that would result
from the premature death of an insured. The named beneficiary receives the
proceeds and is thereby safeguarded from the financial impact of the death of the
insured. The death benefit is paid by a life insurer in consideration of premium
payments made by the insured.
Generally speaking:
> Risk = > Cost
Generally speaking:
> Risk = > Cost
Risk Factors
Age
Gender
Height & Weight
Medical record
Personal habits (smoker, drinker,
drug use)
Occupation
**Amount of coverage required**

3. HOW DO WE HANDLE RISK?
1. Avoidance:
Choosing not to participate in an activity because of
the risk involved, e.g. not getting a driver’s license.
2. Retention:
Saving money in case of future losses, e.g. putting
Rs.1000 in a savings account in case of a car
accident.
3. Transfer:
Passing the risk on to an insurance company, e.g.
paying a monthly fee for an insurance policy and
expecting the insurance company to protect your
assets.

4. History of Insurance
Insurance in India has the history dating back till 1818, when the Oriental Life
Insurance Company was started by Europeans in Kolkata to cater to the needs of
European Company.
The oldest existing company in India is National Insurance Company Ltd. was
established in 1906.

6. Why do we need Insurance?
 To provide security
 Old age pensions
 As an investment/ or saving
mechanism
 As a collateral for loan
 For tax benefits
Need for Insurance planning
➢ Insurance planning is concerned
with ensuring adequate coverage
against insurable risks.
➢ Insurance enables us to live our
lives to the fullest, without
worrying about the financial
impact of events that could hamper
it.
➢ A major reason why you need
insurance is to ensure that you are
not forced to close if you are
exposed to a claim.

7. DIFFERENT TYPES OF LIFE INSURANCE

8.  Term Life Insurance provides a death benefit for a fixed number
of years. Usually 5 to 30 years that you choose when you buy the
policy. You pay premiums for each year of the term.
 If you purchase level-premium insurance, which is common, you’ll pay
the same rate each year. When the term is up, you stop paying premiums
and you no longer have coverage.
 If you die at any point during the term, your beneficiaries receive
a death benefit. If you die after the terms ends, your beneficiaries
get nothing.
 Term life insurance is generally the least expensive type of life
insurance for the amount of coverage you get and it is the easiest
type of life insurance to understand. For these reasons, it is also
the best type of life insurance for most people.

9.  Whole Life Insurance, in addition to providing a death benefit, also
accumulates cash value that is guaranteed to grow by a certain amount
each year.
 As a result, whole life premiums are significantly higher than term
life premiums for the same death benefit.
 Part of your premiums for the first few years of the policy will go
toward administrative fees and the commission.
 The premiums are the same each year, and you can choose to pay
premiums every year for as long as the policy is in effect or for a
set number of years. Spreading your total premiums out over just
10, 15 or 20 years instead of over a lifetime will result in a higher
annual premium during those years, but may be an appealing
feature for someone who wants to eliminate the ongoing expense
of life insurance premiums before retirement.
 A variation called single-premium whole life insurance lets you
pay the entire premium up front in a lump sum.

10.  The endowment policy is a life insurance contract designed to pay
a lump sum after a specific term (on its 'maturity') or on death.
 Typical maturities are 10/15/20 years up to a certain age limit.
 Some policies also pay out in the case of critical illness.
 Endowments can be cashed in early (or surrendered) and the
holder then receives the surrender value which is determined by
the insurance company depending on how long the policy has
been running and how much has been paid into it.

11.  The money-back policy in India is a popular insurance policy. It
provides life coverage during the term of the policy and the
maturity benefits are paid in instalments by way of survival
benefits in every 3/4/5 years.
 The plan is available with 12 to 25 years term.
 In the event of death within the policy term, the death claim is
made up of full sum assured without deducting any of the
survival benefit amounts already paid.
 The bonus is also calculated on the full sum assured.
 The premium paid is tax deductible under section 80C of Income
Tax Act 1961.

12.  Annuity: A series of payments at fixed intervals, paid while the
purchaser (or annuitant) is alive.
 Annuities may be sold in exchange for the immediate payment of a
lump sum (single-payment annuity) or a series of regular payments
(flexible payment annuity), prior to the onset of the annuity.
 The payment stream from the issuer to the annuitant has an
unknown duration based principally upon the date of death of the
annuitant. At this point the contract will terminate and the
remainder of the fund accumulated is forfeited unless there are
other annuitants or beneficiaries in the contract.
 Thus a life annuity is a form of Longevity Insurance, where the
uncertainty of an individual's lifespan is transferred from the
individual to the insurer, which reduces its own uncertainty by
pooling many clients.
 Annuities can be purchased to provide an income during
retirement, or originate from a structured settlement of a personal
injury lawsuit.

13.  These are unique insurance plans which are basically a mutual fund
and term insurance plan rolled into one.
 The investor doesn't participate in the profits of the plan, but gets
returns based on the returns on the funds he or she had chosen.
 Some policies offer the policyholder a share of the profits of the
insurance company – these are termed with-profit policies.
 Other policies provide no rights to a share of the profits of the
company – these are non-profit policies.
 With-profits policies are used as a form of collective investment
scheme to achieve capital growth.
 Other policies offer a guaranteed return not dependent on the
company's underlying investment performance.

14. 1. LIFE INSURANCE CORPORATION
2. HDFC STANDARD LIFE INSURANCE CO.
3. MAX NEW YORK LIFE INSURANCE CO.
4. ICICI PRUDENTIAL LIFE INSURANCE CO.
5. KOTAK MAHINDRA OLD MUTUAL LIFE
6. BIRLA SUN LIFE INSURANCE CO.
7. TATA AIG LIFE INSURANCE CO.
8. SBI LIFE INSURANCE CO.
9. ING VYSYA LIFE INSURANCE CO.
10. BAJAJ ALLIANZ LIFE INSURANCE CO.
11. METLIFE INDIA INSURANCE CO.
12. RELIANCE LIFE INSRUANCE CO.

15. 13. AVIVA LIFE INSURANCE CO.
14. SAHARA INDIA INSURANCE CO.
15. SHRIRAM LIFE INSURANCE CO.
16. BHARTI AXA LIFE INSURANCE COMPANY LTD.
17. FUTURE GENERALI INDIA LIFE INSURANCE
COMPANY LIMITED
18. IDBI FORTIS LIFE INSURANCE COMPANY LTD.,
19. CANARA HSBC ORIENTAL BANK OF COMMERCE
LIFE INSURANCE COMP. LTD.
20. AEGON RELIGARE LIFE INSURANCE COMPANY
LIMITED.
21. DLF PRAMERICA LIFE INSURANCE COMPANY
LIMITED
22. STAR UNION DAI - ICHI LIFE INSURANCE CO. LTD.
23. INDIAFIRST LIFE INSURANCE COMPANY LTD.
24. EDELWEISS TOKIO LIFE INSURANCE CO. LTD.

17. Thank you