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Acknowledgement
A task or project cannot be completed alone. It requires the effort of
many individuals. We take this opportunity to thank all those who
helped us complete this project.
Executive Summary
The service industry is one of the fastest growing sectors in India
today. The upcoming sectors which are really showing the graph
towards upwards are - Telecom, Banking, and Insurance. These sectors
really have a lot of responsibility towards the economy.
Introduction
Life insurance:
Life insurance is a contract under which the insurer (Insurance
Company) in
Consideration of a premium paid undertakes to pay a fixed sum of
money on
The death of the insured or on the expiry of a specified period of time
Whichever is earlier. In case of life insurance, the payment for life
insurance policy is certain. The Event insured against is sure to happen
only the time of its happening is not known. So life insurance is
known as ‘Life Assurance’
Roles of life insurance:
Life insurance as an investment: - Insurance products yield more
than any other investment instruments and it also provides added
incentives or bonus offered by insurance companies.
Life insurance as risk cover: - Insurance is all about risk cover and
protection of life. Insurance provides a unique sense of security that no
other form of invest can provide.
Life insurance as tax planning: - Insurance serves as an excellent tax
saving mechanism too.
Importance of life insurance:-
Protection against untimely death: - Life insurance provides
protection to the dependents of the life insured and the family of the
assured in case of his untimely death. The dependents or family
members get a fixed sum of money in case of death of the assured.
Saving for old age: - After retirement the earning capacity of a person
reduces. Life insurance enables a person to enjoy peace of mind and a
sense of security in his/her old age.
Initiates investments: - Life Insurance Corporation encourages and
mobilizes the public savings and canalizes the same in various
investments for the economic development of the country. Life
insurance is an important tool for the mobilization and investment of
small savings.
Social Security: - Life insurance is important for the society as a
whole also. Life insurance enables a person to provide for education
and marriage of children and for construction of house. It helps a
person to make financial base for future.
Tax Benefit: - Under the Income Tax Act, premium paid is allowed as
a deduction from the total income under section 80C.
COMPANY PROFILE
PRODUCT PORTFOLIO
• INVESTMENT
• RETIREMENT
• SAVINTG
• PROTECTION
• INVESTMENT
•
1. NEW FREEDOM PLAN
What is this Plan all about?
New Freedom Plan allows us to customise your Insurance Cover to suit your
requirements. It gives us freedom to plan your investments to suit your
preferences and risk profile. This Plan also offers Survival Benefits at regular
intervals.The Premiums and Top-Up Premiums paid by you, less Charges are
credited to an account called Policyholders' Fund Value ("PFV") and are used
to purchase Units in one or more Unit Linked Fund as per your choice. At any
point in time, the PFV is represented by the number of Units multiplied by
the respective Unit Price of the Units held from time to time under all the
Unit Linked Funds under this Policy.
Main Features
1. Maturity Benefit: The Plan matures after we attain the age of 70. we will
receive the Policyholder's Fund Value on the Policy Maturity Date.
2. Death Benefit: On death before Policy Maturity Date, the Sum Assured or the
Policyholder's Fund Value whichever is higher will be payable. However , in-case of
death before age 12, the Policyholder's Fund Value would be payable as Death Benefit.
For the purpose of determining the amount payable as Death Benefit, the Sum
Assured will be reduced by the Partial Withdrawal Benefits availed by the
Policyholder from the Policyholder's Fund Value built up on Regular Premium, during
the twenty four (24) months immediately preceding the date of death of the Life
Assured.
4. Partial Withdrawal Benefit: The Plan offers us the additional flexibility of a one
time Partial Withdrawal during 4th to the 10th Policy year . we can make Partial
Withdrawal provided the Policyholder's Fund Value after such withdrawal is equal to at
least One and Half Years Regular Premiums. Partial Withdrawals would not be allowed
in-case the Life Assured is a minor till the attainment of age of majority. Partial
Withdrawals are subject to Charges, as stated below.
The Charges
The Plan offers complete transparency with respect to expenses charged to us. The
Charges are as follows:
1. Policy Administration Charges:
A one-time Charge payable at the inception of the Policy comprising of:
(1) A fixed Charge of Rs. 700 and
(2) A variable Charge of Rs. 50 per Rs. One Lakh of Sum Assured or part
thereof. Policy Administration Charges of Rs. 25 per month during the Policy
term.
2. Premium Allocation Charges: These contribution-related Charges vary
according to the type of contribution as stated below:
(1) 1st year - 45% of the Regular Premium paid.
(2) 2nd and 3rd year - 7.5% of the Regular Premium paid.
(3) 4th year - 4% of the Regular Premium paid.
The Company reduces Allocation Charges for higher Premiums.
3.Fund Management Charge: This is charged on the amount in the Unit
Linked Fund(s).
Key Benefts
• Flexibility to choose your life cover
With this plan we can decide the amount of coverage you need depending on your
requirements with minimum cover being five times the annualised first year
premium
and maximum cover being subject to underwriting considerations.
• Flexible investments
WE have the option to choose from five Unit Linked Funds for investing your
regular as well as top-up premiums based on your investment objectives.
BENEFITS
1 Maturity Benefit: This Plan matures on completion of the chosen Policy term.
we will receive the Policyholder's Fund Value as on the Policy Maturity date or
as per theSettlement Option chosen by you.
2. Death Benefit: On death before the Policy Maturity date, the Sum Assured or
the Policyholder's Fund Value whichever is higher , will be payable.
For the purpose of determining the amount payable as Death Benefit, the Sum
Assured will be reduced by the Partial Withdrawal Benefits availed by the
Policyholder
from the Policyholder's Fund Value built up on Regular Premium, during the
twenty four (24) months immediately preceding the date of death of the Life
Assured.
In cases where the Life Assured is aged less than 12 years (last birthday), the
Life Cover will commence after completion of 5 years of age or two years from
date of
Policy Commencement whichever is later . In-case of death before
commencement of Life Cover , the Policyholder's Fund Value would be payable
as Death Benefit.
3. Partial Withdrawal Benefit: This Plan offers you the additional flexibility of
opting for Partial Withdrawals any number of times after completion of 3 Policy
years,
provided the Policyholder's Fund Value after such withdrawal is equal to at least
One and Half Years Regular Premiums. Partial Withdrawals would not be
allowed
in-case the Life Assured is a minor till the attainment of age of majority.
Partial Withdrawals are subject to Charges, as stated below.
4. Surrender Benefit: we can Surrender your Policy any time after completion of
the third Policy year . we will receive the Policyholder's Fund Value less the
applicable
Surrender Charges, as stated below.
5. Switch your Fund: we have the flexibility to review the performance of your
Unit Linked Funds periodically and Switch Investments from one Unit Linked
Fund to
another . Two Switches per Policy year are offered free of Switching Charges.
Any additional Switches will be subject to Switching Charges, as stated
below.
3. NEW FULLFILLING
1 On survival to maturity, i.e., after attaining 85 years of age, we will receive
100% of the Sum Assured plus bonus .we pay Premiums for a limited period
of your choice while you get a risk coverage up to the age of 85 years.In the
event of your unfortunate death, your family would receive 100% of the Sum
Assured, over and above the Survival Benefits you would have received till
then, plus Bonus.
wecan choose to increase your life cover or cover against various other risks for
more protection, by choosing one or more riders.
Riders are add-on benefits that provide additional protection for you at a little
extra cost during the Policy Term.
2. The four riders available with the Plan are :
(i) Term Benefit Rider
(ii) Accidental Death Benefit Rider
(iii) Accidental Death, Disability
(iv) Waiver of Premium Benefit
Exclusions
The benefits under this Plan will not be payable if death of Life Assured occurs due to
suicide, within one year from the date of commencement of risk or within one year
from the date of reinstatement of a lapsed policy.
Discontinuance of the Policy
If we are unable to pay your Premiums for some reason, then, after a period of 30
days from the Premium due date, the Policy will lapse. However , if you have paid
Premium for at least 3 full years, we will continue your Policy without further payments
with reduced paid-up amounts, which are payable:
(i) on our death before attaining 85 years of age or on your survival after attaining age
of 85 years; and
(ii) on our survival at the end of the Premium Paying Term.
Any Bonus already attached to the Policy will remain attached. The Policy will not be
eligible for Bonus after it is made paid-up as above. In case we wish to surrender
your Policy and have paid Premium for at least 3 full years, we will receive a
Cash
Surrender Value.
Policy Loan
Under this Plan, we can also avail a loan under the Policy if you have an urgent need
for cash. The loan will be available after the completion of your Premium Paying
Term.
Free Look
After the Policy has been issued, we have a free look-in period of 15 days to go
through the terms and conditions of the Policy. In case we need any clarification or do
not agree with the terms and conditions, you can contact us. If we are still not satisfied,
we have an option of cancelling the policy by writing to the Company stating the
reasons for cancellation and by returning the original Policy document to the Company
within 15 days of the receipt of the policy Document. In such a case, the Company shall
refund the Premium received from you for this Policy after deducting the proportionate
risk Premium for the period of risk cover and expenses incurred by the Company on
account of medical examination and on stamp duty charges.
Tax Benefits
All Premiums paid under this Plan to effect or to keep in force insurance on the life of
eligible persons may be eligible for deduction under Section 80C of the Income Tax
Act.
Benefits paid under this Plan, including the sum allocated by way of Bonus are
exempt from Income Tax under Section 10(10D) of Income Tax Act, 1961.
• RETIREMENT
Main Benefits
• In case of death during the term, your spouse will have the
following options in respect of the benefits under the policy
- To defer the purchase of annuity if the age of the spouse is
less than 45 years,
- To encash up to 5% (or such percentage decided by the company
depending upon the investment return) of the Benefit Amount
outstanding each year up to the age of 45 and then apply the
balance if any, at age 45 to purchase annuity.
In respect of Premiums paid (other than Premiums paid by ECS, Standing Instructions
or Auto Debit) or Switch request received before 4:15 p.m. on any business day, the
Unit Price as of the date of receipt of such Premium or Switch request shall be
applicable. In respect of Premiums paid by ECS, Standing Instructions or Auto Debit
the Unit Price as on the date of realisation shall be applicable.Requests/Premium
received after 4.15 p.m on any business day will be processed on the immediately
following business day.
New Future Perfect Plan gives you complete flexibility to plan our finances. we can
decide how long you want to pay, how much to pay, the extent of Insurance Cover ,
the frequency of payments that we would make each year and so on.
Flexibility in Premium and Frequency
This Plan allows us to choose the amount of Regular Premium we wish to pay subject to
certain minimum Premium limits. The frequency of payment may be Yearly, Half-
yearly, Quarterly or Monthly. The minimum amounts of Premium for different
frequencies are:
Yearly: Rs.15,000, Half-yearly: Rs.8,000, Quarterly: Rs.4,000 and Monthly: Rs.1,500.
Top-Up Premium
This Plan provides us with an option to pay additional Top-Up Premiums (subject to a
minimum of Rs.5000) over and above your Regular Premiums as and when you wish
allowing you to increase your investments and savings at your own pace. However ,
total of the Top-Up Premiums at any time should not exceed 25% of the Total Regular
Premiums paid (Please refer to Tax Benefits Section).
Flexible Premium Payment Term
This Plan allows us to choose the duration for which we wish to pay the Premiums. The
duration can range from 5 to 25 years. we can pay these Premiums Monthly, Quarterly,
Half-yearly or Yearly.
Flexibility in Insurance Cover
we can choose the Sum Assured that you want. However , the Minimum Sum Assured
should be 50% of the Regular Annual Premiums multiplied by
Policy term (but not less than 5 times Annual Premium). For e.g. if we decide to pay
Annual Premium of Rs. 20,000 and opt for a Policy term of 30 years, then Rs. 3,00,000
[higher of (20,000 x 30 x 0.5) OR (Rs. 20,000 x 5)] will be the Charged
Fund management charge
• SAVING
1. ING PRIME LIFE
ING Prime Life is a Unit Linked Savings Plan. It’s a comprehensive life
insurance solution with inbuilt additional accidental coverage and flexible
investment options to give us financial freedom to realise the goals that you have
set at any stage of your life. Also, this plan comes with a unique feature where
more than initial allocation charges are returned. That’s not all, with ING Prime
Life, you have an option to extend the term with systematic withdrawal feature
that helps you to make most of your investment.
Key features of the plan are:
• Returnmore than Initial Allocation Charges
• Sum Assured increases every year
• Option to extend the policy term by 10 years
• Inbuiltadditional accidental coverage
• Maturity Beneft
On maturity of the policy, Fund Value and the Initial Allocation Benefit will be
paid. If the option to extend the policy term is exercised, the available fund value
will be paid on the extended maturity date.
• Death Beneft
In the unfortunate event of death of the life assured during the initial policy term,
higher of Sum Assured or the fund value and the Initial Allocation Benefit will
be payable.
• Partial Withdrawal
At any point of time after completion of 5 policy years, during emergency we
can withdraw a part of our fund. Thus, this plan gives provision for liquidity at
the time of your need, so look no further!Five partial withdrawals are allowed
during the policy term where each partial withdrawal is subject to a maximum of
10% of the fund
value prevailing at that time subject to a partial withdrawal fee. The partial
withdrawal is subject to payment of three full years’ regular premium and fund
value after each such withdrawal not being less than 1.5 times the annual regular
premium. This benefit is not available during the Extended Policy Term or
during the minority of the
life assured.
• Surrender
At any point of time after payment of one full year’s regular premiums if we feel
thanyou cannot pay further premiums, we are allowed to surrender the policy;
however, the surrender value payment will be made only after completion of 3
full policy years. The surrender value payable is the fund value after recovering
applicable surrender penalty.
• Switching of funds
This plan gives us the flexibility to review the performance of your funds and
market conditions periodically and if required switch your existing investments
from one fund to another. Two switches are allowed free per policy year and
thereafter subject to charges.
• Redirection of Premiums
This plan provides you the flexibility to decide the investment pattern for our
future premiums, i.e., depending on your requirement, we can allocate our future
premiums differently amongst the available funds.
• Top-up Premium
At any time if we have additional amount that needs to be invested, we can pay
top-up premium to invest in your fund in the same policy without having to buy
another policy. In such case additional top-up premium should be a minimum of
Rs. 2,000, provided the total top-u premium does not exceed 25% of the total
regular premiums paid. Top-up premium facility is available till the maturity of
the policy and not during the Extended Policy Term.
1. TERM LIFE
What is this Plan all about?
The ING Term Life is a Term Insurance Product and is the simplest form of
insurance, where the Life Assured is provided insurance cover and on his
death
during the Policy term, the Sum Assured under the Policy is paid to his
beneficiary. What is more, the ING Term Life is one of the most affordable and
inexpensive ways of obtaining life insurance cover .
1. Age
Minimum Entry Age: 18 years last birthday
Maximum Entry Age: 65 years last birthday
Maximum Maturity Age: 75 years last birthday
3. Premium: This Plan allows us to choose the way we wish to pay our
premiums. we can opt for paying a single premium, or limited premium or
regular premium. we can also choose to pay premiums either annually,
half yearly, quarterly or monthly.
4. Death Benefit: In the event of death of the Life Assured during the Policy
term, subject to the terms of the Policy, the Sum Assured chosen under the
Policy shall be payable after deducting the balance premiums if any,
payable for the Policy year .
5. Grace Period: If the premiums are not paid within the due date, a grace
period of 15 days is given for the payment of the premiums without
interest. During the grace period, the Policy will continue to be in force
and in the event of the death of the Life Assured during the grace period
the Sum Assured shall be payable after deducting the unpaid premiums as
well as the balance premiums if any payable for the Policy year .
Tax benefits: under section 80C and section 10(10D) of the Income Tax Act
1961
('Act') are available on this Policy. However tax benefits are subject to
changes in the tax laws. Please consult a qualified tax advisor for specific tax
advice related to you. Service Tax, Education Cess and other taxes as
applicable will be charged additionally at the applicable rates.
1. Age
Minimum Entry Age: 18 years last birthday.
Maximum Entry Age: 65 years last birthday.
Maximum Maturity Age: 75 years last birthday