Chapter no 1. Design of Study.

Objectives:-

The main of the present study of is accomplishing the following objectives:-

Proper understanding & analysis of Life Insurance Industry. To know about the awareness of various products which are offered by LIC.

Training aims at recruiting maximum number of life advisors & to sell the maximum polices for the company & bring the business for the company which is ever is going at the particular time. Along with it I will be gaining knowledge of the Insurance Industry which will surely help me in the future in some or the other way.

To study the working mechanism & performance of Life Insurance Corporations of India.

Business carried out by Life Insurance Corporations of India.

Scope:-

To know the basic structure of Life Insurance Corporations of India following points have been covered:

1) Reform process of LIC. 2) Business of Life Insurance Corporations of India.

3) Performance of Life Insurance Corporations of India. 4) Life Insurance Corporations of India potential role in financial inclusion.

5) New recommendations in LIC.

Methodology:-

Research is systematic study of knowledge obtained from various sources. Tools used for data collection are websites & library. Primary data is obtained by the survey made on local people. The questions asked from residential people mostly. The present study is based on survey techniques & case study method.

Chapter no 2. Introduction To Life Insurance

Definition of 'Insurance':A promise of compensation for specific potential future losses in exchange for a periodic payment. Insurance is designed to protect the financial well-being of an individual, company or other entity in the case of unexpected loss. Some forms of insurance are required by law, while others are optional. Agreeing to the terms of an insurance policy creates a contract between the insured and the insurer. In exchange for payments from the insured (called premiums), the insurer agrees to pay the policy holder a sum of money upon the occurrence of a specific event. In most cases, the policy holder pays part of the loss (called the deductible), and the insurer pays the rest. Examples include car insurance, health insurance, disability insurance, life insurance, and business insurance.

Life Insurance:Life insurance is a contract between an insurance policy holder and an insurer, where the insurer promises to pay a designated beneficiary a sum of money (the "benefits") upon the death of the insured person. Depending on the contract, other events such as terminal illness or critical illness may also trigger payment. The policy holder typically pays a premium, either regularly or as a lump sum. Other expenses (such as funeral expenses) are also sometimes included in the premium; however, in Australia the predominant form simply specifies a lump sum to be paid on the policy holder's death.

The advantage for the policy owner is "peace of mind", in knowing that the death of the insured person will not result in financial hardship for loved ones. 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 in the event of specified event, typically a lump sum payment. A common form of this design is term insurance. Investment policies where the main objective is to facilitate the growth of capital by regular or single premiums. Common forms (in the US) are whole life, universal life and variable life policies. There are different kinds of insurance:-

Life Marine Fire Miscellaneous

Fire Insurance Marine Insurance Life Insurance Miscellaneous Insurance

Life Insurance is a policy that you can enter with your insurance company, which promises a certain amount to your beneficiary in the event of your death, in exchange for your premium payments. Human Beings lives are insured under life insurance.

 A Life Insurance is a combination of savings as well as security element. The insured is assured that the insurance company will pay his family when matures for payment, the saving so made will be helpful in his old age. It also involves insuring the life to safeguard ones future as well as to make future family needs secured even in case of death of earning members.

Life Insurance involves an element of investment which already leads to compulsory saving & income returns in future. Life Insurance today plays a major role in ones life at various stages. It is a contract that pledges payment of an amount to the person assured (or his nominee) on the happening of the event insured against.

Buying insurance is extremely useful if you are the principal earning member in the family. In case of your unfortunate premature demise, your family can remain financially secure because of the life insurance policy that you have purchased. Different people buy insurance for the variety of reasons. Insurance should be brought for the sake of insurance only. While buying insurance it is to be remembered that a part of the premium that is paid goes towards risk coverage. The return from insurance can never be more than one can get from some of the other options. At the same time other options do not offer insurance. They are purely investments.

Some Important Aspects of Life Insurance: Life Insurance is not only the best possible way for family protection. There is no other way. Insurance is the only way to safeguard against the unpredictable risks of the future. It is unavoidable.

The terms of life are hard but the terms of the insurance are easy. The value of life is far greater than the value of property. Only Insurance can preserve it.

Life Insurance is not surpassed by many other savings or investment. In terms of security, marketability, stability of value or liquidity. Life insurance enhances the existing standards of living.

Life Insurance perpetuates life, liberty & the pursuit of happiness. Life Insurance is a way of life.

What does Life Insurance offers?

Life insurance means different things to different people. For some, it is a premium to be paid on time. For others it offers liquidity since cash can be borrowed when needed. For the investment- minded, it denotes a constantly growing capital account & numerous other benefits. Life Insurance is nothing but the creation of capital funds on an installments basis. Only here, the results are guaranteed. Life insurance is
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basically a property that is bought under a contract, accompanied b contractual guarantees that ensure large sums of money at the death of the insured.

Life insurance offers different things to different people who are as follows: Insurance Buys Time & Money :- People like to refer to life insurance as time insurance, the reason being that life insurance proceeds are paid to the insureds beneficiaries in case of death. The money offered by life insurance helps buy time to adjust to change of circumstances. Insurance provides large amounts of cash that will keep lifestyle for survivors the way it was before the insureds death.

Insurance offers Peace of Mind :- For the person who buys an insurance policy, it offers absolute & complete peace of mind. He or she knows that the decisions made by him will provide sound benefits in the future, whether or not the individuals may live to see it. The life insurance policy will subsequently prove this in the future if & when funds are needed. This is the guarantee of the insurance contract.

Multiple Applications: - The future is uncertain for each & every one. No one knows how long he or she will live. The investment benefit is paid to the insureds beneficiaries after his death or it can be used during the life as well. Life insurance policy owners can turn to the cash value of the policy in case of a financial emergency when all avenues are either blocked or denied. They know that they can avail of loans based on their insurance policies. Insurance policy owners can use the cash value of their policies to meet their long term financial needs as well. They may have purposefully invested in insurance to use the cash in the policy for their childrens future marriage expenses or higher education fees.
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 Enduring Elasticity:- Since life insurance is flexible enough to serve several needs, the insured can keep several long term goals in mind once he or she invests in the insurance plan. The cash value of the policy can be allocated towards augmenting the monthly income during the retirement years. Leisure years should be turned into pleasure years. Permanent life insurance is designed on the concepts of long term flexibility.

Financial Security:- The insurance policy offers contractual guarantees to people looking for peace of mind when they buy life insurance. Life insurance offers complete financial security. The purchase of life insurance demonstrates concern for a familys financial well being.

Insurance is safer:- No financial institution can do what life insurance does. No industry can back its products with reserves & surplus as sound as those of the insurance industry. The proof of strength & safety that insurance companies have ensured even under the most adverse of conditions is a matter of pride for the entire insurance industry. For generation after generation, life insurance has been acclaimed as the very benchmark of security against which the other industries are measured.

Life Insurance Dos and Donts: If you are shopping for life insurance, make sure you know the things to do and not do when purchasing this line of coverage. The most important thing to look for is coverage that protects you and is also affordable.

When shopping for life insurance, shop around for multiple quotes so that you have a wide selection of options with which to choose
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from in order to find the best life insurance for you. Given that rates for this line of coverage can differ by up to 200 percent from insurer to insurer, shop wisely. It is also a good idea to review your life insurance coverage on a regular basis, especially given the fact that things can change in your life (marriage, divorce, birth of a child etc.), thereby changing your status.

Another option you should consider is purchasing automatically renewable and convertible coverage. The renewable clause will permit you to renew your policy for another term no matter what happens with your health. With the convertible feature, you will convert the term coverage to a permanent policy. Individuals looking to buy life insurance should consider opting for lower premiums in the event they have ceased smoking. This will allow for an up to 50 percent savings on the cost of the life insurance coverage.

Among the things not to do when a investigating life insurance companies would be getting a policy in the first place if you don't fully understand the idea behind it. One could lose a lot of money if they buy the coverage and don't understand how it fully works. Don't be talked into purchasing an accidental death policy, as life insurance needs should not go up due to an accidental death.

It is also wise not to cancel an existing policy when replacing it with new coverage until the new one is in place.

Finally, don't try and use whole life policies as investments.

Chapter no.3. Types Of Life Insurance

Types of Life Insurance Policies:There are many types of life insurance policies available in the market-

Term Life Insurance

Endowment Life Insurance

Money back Life Insurance

Whole Life Insurance

Unit Linked Life Insuarnce

1. 2. 3. 4. 5.

Term life insurance policy Endowment life insurance policy Money back life insurance policy Whole life insurance policy Unit Linked Insurance Plans (ULIP) We would suggest you to go for term insurance plans, as this is the cheapest form of life insurance available in the market. The premium you pay towards your term insurance would be completely exempted under section 80C of Income Tax Act. Along with life insurance you can opt for various riders like critical illness rider, personal accident rider etc.

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Life Insurance policies:-

Life insurance is an important part of wealth management planning. The following are the most popular types of life insurance: Term Life Insurance Whole Life Insurance Universal Life Insurance Children's Life Insurance Senior Life Insurance Mortgage Protection Life Insurance

Term Life Insurance:-

Why it's called "Term"? Different terms for different needs? What happens when the term is over? Accidental Death Insurance. Advantages of Term Life Insurance. Disadvantages of Term Life Insurance.

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 Why It's Called "Term?

Term life insurance is called "term" because it provides coverage for a specific period or term (most often 1, 5, 10, 15 or 20 years). For this reason, it is also called "temporary" insurance. If death occurs during the term, the policy pays cash benefits to the beneficiary. However, once the term is over, and if the policy is not renewed, the coverage ceases. If death occurs after ten coverage ceases, no cash benefits are paid out. Term insurance is the most straightforward type of life insurance and the easiest to understand. Sometimes it is called "pure" insurance, since the policy has no financial investment value and most of your premium goes to pay for coverage, with only a small amount used to pay the insurance company's costs. If you are looking for the maximum amount of coverage for your dollar, term life insurance will give you the most "bang for your buck".

Different Terms for Different Needs.

All term life insurance policies cover you for a specific amount of time the term. The term that's right for you depends on how old your children are, how many years before you retire, and other factors. Many people like to know they're insured until they're ready to retire, usually at age 65. Many just want to have insurance until their youngest child graduates from college, and so they make sure their life insurance coverage includes money to pay for all of the college tuition.

Most experts agree that you should carry insurance at least until your youngest child is 18. So if your child is 3 now, you would want to carry your insurance for at least 15 years. But that doesn't mean you have to lock into a 15-year term - you could instead buy an annual renewable policy and renew it for 14 years in a row. You should compare the total 15-year cost of the annual renewable policy and the 15-year term policy, making adjustments for the time and value of money, to determine what the best value is for you.

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Here's an overview of the different types of term policies available.

1. 2. 3. 4. 5.

Annual renewable term insurance Renewable term insurance Level premium term insurance Decreasing term insurance Convertible term insurance

1. Annual renewable term insurance. With annual renewable term insurance, your policy is automatically renewable each year up to a specific age limit, often 65, but sometimes older. Since the chances of your dying increase statistically the older you get, your premiums go up each year as you renew. However, if you buy your policy when you are young and unlikely to die, you can obtain substantial coverage for an inexpensive premium.

2. Renewable term insurance. With renewable term insurance, the insurance company automatically allows you to renew your coverage after the term of the policy is over (generally 5 to 20 years), even if your health has deteriorated. This is the same way annual renewable works, but for a longer period of time. Since a lot can happen to your health in 5 or 20 years, renew ability can be a valuable feature. But since it involves a greater financial risk for the insurance company, renewable term coverage generally costs a bit more than annual renewable policies.

The conditions associated with renewable term may differ from company to company. For example, though you are guaranteed the right to renew at the end of your term, you may or may not be able to renew for the same amount of coverage or for the same term. Moreover, your premiums will almost definitely go up upon renewal.

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3. Level premium term insurance. Level premium term insurance guarantees your premium will stay the same each year for the term of your policy, generally 5 to 20 years. Insurance companies keep your premiums the same by charging you an average of the premiums they would ordinarily charge you with an annual renewable policy. As a result, you will probably pay more in the early years and less in the later years than you would if you had an annual renewable policy. You will probably also encounter a big increase in premiums at the end of your term when you apply for a new insurance policy.

The big advantage of level premium term insurance is that your premiums stay the same throughout your policy, even as you get older. However, if for some reason you change policies in the early years when your level term policy is most expensive - you will end up paying more than you need to for coverage.

4. Decreasing term insurance. With decreasing term insurance, your cash benefits decrease each year while your premiums remain level for the duration of the term. Decreasing term is typically used to cover an item whose costs decrease over time, such as your home's mortgage. It isn't a wise choice for your general life insurance needs which, due to the effects of inflation, tend to increase over time.

5. Convertible term insurance. Convertible term insurance enables you to convert your term insurance into any of the other types of insurance policies offered by the issuing insurance company. Convertibility can be an advantage if your insurance needs change over time, as they are likely to do. And, since it involves

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greater risk for the insurance company, it generally costs more than annual renewable term.

What Happens When The Term Is Over?

It all depends on the type of term insurance you have. With renewable term, you are guaranteed the right to take out another term policy without the formality of a new application or medical examination. With standard term, your insurance coverage ceases, and you have to apply again, including taking a medical examination. With convertible term, you reserve the right to convert your term policy to another type of policy like Whole Life Insurance or Universal Life Insurance- or in some cases, another term policy - at any time during the term of your policy. You should, however, expect an increase in your premiums with your new policy.

Accidental Death Insurance

Accidental death insurance pays out a cash benefit if you die in an accident. Since the sudden loss of a loved one can impose extreme hardship on a family, this coverage can be thought of as "catastrophic protection." It can also be thought of as "inexpensive term" since it only pays benefits for death resulting from accidents and, therefore, often costs less than other types of term insurance.

The best way to protect your family is with a life insurance policy that pays benefits if you die from any cause. But if you don't feel you can afford regular term life insurance, you should at least give your family the protection of a good, inexpensive Accidental Death policy.

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 Advantages of Term Life Insurance

* It pays a death benefit to the beneficiary you name. * It will cover your final expenses and provide a lump sum for your dependents.

* It covers you for the full amount of life insurance you choose. * It can be convertible and renewable depending on the policy.

* It gradually increases annual premium as you get older. * It traditionally works well to meet temporary insurance needs.

Disadvantages of Term Life Insurance

* It doesn't provide a cash value account for some later point such as retirement. * It doesn't provide you permanent life insurance protection.

Whole Life Insurance:As the name implies, whole life insurance covers the policyholder for his or her whole life. There is no fixed end date for the policy, as there is with term life insurance. When the policy holder dies, the face value of the policy, known as a death benefit, is paid to the person or persons named in the life insurance policy (the beneficiary or beneficiaries).
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The cost of a whole life insurance policy is spread out across many years, so the premium remains the same. This ensures that older people on a fixed income will not have to cope with rising premiums.

Unlike term life insurance, whole life insurance accrues cash value over time. If you cancel the policy after a certain amount of time has passed, the insurance company will surrender the cash value to you. The cash value is scheduled to equal the face value when the policyholder reaches the age of 100. If you live that long, the insurance company will likely pay the face value to you in a lump sum.

This is not the only way to use the cash value, however. You can also borrow some of the cash value as a loan. The money has to be paid back, but there is no approval process and no risk of being turned down. You are your own lender. Some whole life insurance pays dividends, so it can be used to supplement your retirement income.

Universal Life Insurance:-

Universal life insurance offers many features of whole life insurance, but allows greater flexibility once the policy is in force. Like whole life insurance, universal life insurance is a permanent policy. It protects the policyholder until deathhowever long that may be. Also like whole life insurance, universal life insurance accrues cash value over time.

Unlike whole life insurance, universal life insurance breaks the death benefit and cash value accumulation into separate components. This allows the policy holder to make changes in the policy. For example, if the policyholder wants to increase the death benefit, he or she puts more of the premium money into the insurance account and less into the cash
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value account. The reverse is also true. The policyholder can decrease the death benefit and increase the cash value contribution. To reduce premiums, the policyholder can pay only the insurance portion.

Once the cash value has accumulated, the policyholder can withdraw the money. The money must be paid back, or else the death benefit will be decreased. Some people use the universal life insurance policy as a savings account to draw on as they get older. Others use the accumulating cash value to increase the death benefit so they have more to leave their loved ones. Universal life allows these choices and decisions to be made throughout your lifetime.

Children's Life Insurance - Life Insurance for Kids:Parents and grandparents want the best for the little loved ones in their lives-from keeping them healthy and happy to providing for their financial future. Childrens life insurance is a tool many families use to give their children a financial foundation that they can draw upon when they are older. The lowest cost life insurance you can buy is the one you qualify for right now: Rates rise with age. It comes as no surprise, then, that rates for a childas young as two weeks oldis the least expensive insurance you can buy. The low rates make whole life insurance affordable for almost everyone. Because whole life premiums are locked in at the beginning, they will never increase with the childs ageregardless of whatever health issues may arise. Whole life insurance has the added advantage of accumulating cash value over time. This cash value is a financial asset that the grown child can borrow against or use as collateral. In addition, the money borrowed is not subject to income tax, whether or not the loan amount is repaid. The primary reason for buying any kind of life insurance is to insure against untimely death. This is not something parents or grandparents wish to think about. Nevertheless, consideration must be given to the
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survivors, including a childs siblings. Funeral and burial expenses and unpaid medical bills can affect the finances of an entire family at a time when grief and stress are already at an extreme level. Life insurance is a way of protecting everyone.

Senior Life Insurance - Life Insurance for Elders:-

No one wants to be a burden to their spouse and children in life or even in death. This is the main reason why seniors often take a second look at life insurance. Most seniors already have life insurance of some kind, but the death benefit often is too small to take care of funeral expenses and medical bills. In most states, a life insurance death benefit is exempt from creditors. It is also exempt from inheritance taxes. This makes it an excellent vehicle to transfer wealth to survivors. Seniors often assume that they will not qualify for life insurance, but many states have laws requiring insurance companies to provide coverage to seniors. Since the senior population is growing fast, many insurance companies have found it profitable to offer life insurance to seniors.

Guaranteed Acceptance Life Insurance.

The best premium rates are offered to seniors who pass a health exam, but many companies offer insurance with no exam required. Typically these policies, known as Guaranteed Acceptance Life Insurance (usually a type of whole life insurance or universal life insurance) will pay a full death benefit in the case of accidental death as soon as the policy goes into effect. However, the policy will pay a limited death benefit if the policyholder dies of natural causes during the first two years of the policy. The insurance companies place these limits on the policies to avoid writing deathbed policies. The limited death benefit normally
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consists of the premiums paid plus interest. Once the two-year waiting period is over, the policy holder is fully insured.

Term Life Insurance for seniors.

Many seniors, especially those on fixed incomes, do not look at life insurance as an investment opportunity. They are more interested in easing the burden of their death on their survivors. In these cases, term life insurance may be the best option.

Whole Life Insurance for seniors.

Thanks to improvements in diet and healthcare, seniors are living longer than ever. As a result, there is a risk of outliving your term life insurance policy. Whole life insurance will cover you for your whole life, no matter how long that may be. The premium is fixed for the life of the policy. It cannot go up. The policy will build cash value. You can borrow that money or passed it on tax-free to your heirs. Whole life premiums can be much higher than term life premiums.

Single-pay Insurance.

If you have accumulated considerable wealth and are not planning to use it for living expenses, you might consider a single-pay insurance policy. This will allow you to leverage your money for your heirs. A $100,000 policy paid for with a single premium can double or triple in value overnight, and the death benefit can be structured to be paid tax-free.

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As with any insurance, your goals should dictate the kind of insurance you buy. Consult with an insurance professional before deciding which option is right for you.

Mortgage Protection Life Insurance - A Home Saver:-

Life Insurance to cover your mortgage can save your home. Mortgage protection life insurance can be a lifesavernot for the mortgage protection life insurance policyholder, of course, but for the mortgage protection life insurance policyholders family. Mortgage protection life insurance eliminates the risk of your family losing its home in the event that you die before your home mortgage is paid off.

Types of mortgage protection life insurance:Consumers interested in mortgage protection life insurance have two choices: level term insurance and decreasing term insurance.

1. Level term mortgage protection life insurance is designed for homeowners with an unchanging principle balance. Commonly this occurs when the homeowner has an interest-only mortgage. As the name suggests, with an interest-only mortgage, the homeowner pays the interest on the loan. The principle balance remains the same throughout the term of the mortgage. Because the mortgage principle does not change, the amount of the mortgage protection life insurance benefit remains the same throughout the term of the coverage.

2. Decreasing term mortgage protection life insurance is for homeowners with fixed-rate loans or adjustable-rate loans in which the loan principal is reduced over time. Since the amount needed to pay off the mortgage decreases, the amount of the mortgage
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protection life insurance benefit decreases as well. The two sumsthe principle balance and the death benefit-are matched throughout the term of the insurance. When the mortgage protection life insurance policyholder pays off the home loan, the amount of the benefit becomes zero.

Low-cost alternative
There is no surrender value on either type of mortgage protection life insurance policy. Once the mortgage is paid off or the property is sold, the policy becomes void. For this reason, mortgage protection life insurance is less expensive than most traditional life insurance.

Hurdling the health barrier

The cost of traditional life insurance is calculated based on the policyholders health and life expectancy. Young, healthy people have lower premiums than young unhealthy people, older healthy people, and older unhealthy people. Because of existing health conditions, some people find they do not qualify for traditional health insurance. They are uninsurable. Others are insurable, but the premiums are so high that they cannot afford them. In these cases, traditional life insurance cannot be used to protect a home. Many people who cannot afford traditional life insurance find that they can easily afford mortgage protection life insurance.

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Chapter no.4. Questions arising in mind of Customers while taking policy.

What is the Responsibility for Receiving Good Life Insurance?

In the quest to save money, consumers will oftentimes look for the best deals out there, especially when it comes to buying affordable life insurance. The first step to saving money on any insurance coverage, including life insurance, is to do homework ahead of time and know as much as about the product. We have to understand the differences between the various forms of coverages - like term life insurance or universal life insurance available. Another important factor is determining how much coverage you will need to be properly insured. We can best decide how much coverage we will require by coming up with a close estimate of our family's dependence on our income or by utilizing an insurance calculator. It is also important to look at the quality of the insurer who is providing us with a quote. In many cases, insurers with better financial ratings that
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have been in business for many years will offer us a better investment prospect than newer insurers with poorer performance records. Also keep in mind that our overall health will play a factor in determining the prices you will pay. In many cases, those who smoke will have to deal with higher premium rates. Assuming we want to lower the cost of our premium, come up with the length of time we will be required to be tobacco-free prior to applying for coverage. Some insurers will need as little as a year to qualify you, while others will require that you be smoke-free for a minimum of two years prior to applying. Also be sure to look at your job as it pertains to how much we will pay for life insurance coverage. It is also worthwhile to keep in mind that younger individuals usually receive much lower premium quotes than older individuals do. Buying life insurance doesn't have to be expensive or frustrating, so do our homework and get the best deal for yourself.

What Are Life Insurance Needs of an individual?

We all may be wrestling with the idea of when and how much life insurance one should buy. We don't want life insurance rates that are too high, but we want enough to cover our individual expenses. Each individual will have a different set of needs, so it's best to speak with our insurance agent to determine what will work best for our given situation. Keep in mind that at the time of an individual's death, there are a number of expenses that need to be met.

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The major function behind a life insurance policy is at the time of death of the individual there is a sufficient amount of income available to pay for any and/or all of the preceding expenses. What most consumers will want to know is how much coverage they should actually have? Be sure to take into account the different needs for funds at the time of death so as to come up with a proper level of insurance. While it is not set in stone, some life insurance agents recommend that a good rule of thumb to go by is having five times your annual income. In the event we are wondering if it matters how we die as to the amount the beneficiaries can collect, it does. During the first two years for the policy period, there can be conditions such as suicide, fraud, not providing the proper age, etc. that can impact the death benefit paid out by the policy. Following two years, the entire policy death benefit is payable, regardless of the cause of death. Some policies will also pay additional benefits in some conditions, like when the insured passes away in an accident. Some consumers will wonder if they need to die for loved ones to collect life insurance. As for permanent insurance, as the living benefits grow, they can be used to provide funds for financial needs like loans, retirement benefits and premium payments.

With Grown Children, What should an individual do with Life Insurance?

The best life insurance proves to be a very useful tool when one is the main money winner in the family. The idea here is that they will be protected in the event one is seriously injured and unable to work or die.

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Keep in mind that babies, small kids and teens are liabilities for an individual and people typically like to invest in life insurance coverage to prevent them from being involved in a financial crisis.

So what happens in the event the children are grown up?

In the event our children are college students or have not reached financial independence, life insurance can be a big boost in reaching the goal of offering them the required financial assistance for their studies for when you are not present. A life insurance policy can also assist with offering support to disabled adult children. The life insurance policy also comes in handy in order to cover up the blackout period. Another advantage of a life policy is that it will help offset decreased Social Security survivor's benefits. The SS benefit amount is permanently decreased in the event a survivor begins getting the benefits earlier than a fall, benefit-age. Having life insurance in this scenario can take care of this issue. A life insurance policy when the kids are older also ties into offering bequests. The person taking out the policy can be certain that their favorite charities obtain money after their death. As with all purchases of insurance, individuals should get with an agent and discuss the advantages and disadvantages of buying life insurance when children are older. Life insurance can be a very reassuring factor in our life if we get it at the right time.

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 When to walk away without Buying Life Insurance?

We should consider taking a break if we are confused. There is nothing good that can come from buying a life insurance policy when we are confused about what we are doing. In fact, this can harm us in many ways. We want to make sure we buy life insurance with our budget in mind. Not doing so could result in spending too much money; money we do not have.

What to do when an individual need more Life Insurance?

When we need more life insurance we have two options. We can forget about this altogether and let things go for the time being, or we can go out and find another policy. If we have life insurance but need more we have to be smart about how we move forward. What type of life insurance do we already have? Do we need a lot more coverage or just a little? Will one be able to purchase another policy from the company one is already doing business with? If one need life insurance there is nothing that should stop them. The actual buying process is not that hard - it just getting started that can be a bit difficult. There is not much one need to do if he/she has to buy more life insurance coverage. Once we know what we have and what we need, we can begin to receive life insurance quotes. This will lead one towards a policy that will fit in nicely with what one already has.

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 How can one find Low Cost Life Insurance?

Low cost life insurance may seem like a myth, but it does not have to be. There are many ways that one can make their life insurance coverage more affordable, and some steps that they can take to get the lowest possible price on this policy as well. The first step is to determine exactly what type and amount of coverage they want. Too much coverage will cost them higher premiums, but they want to provide financially for their loved ones so that they do not suffer hardships. This means that they have to ensure enough coverage as well. Low cost life insurance can also be found by choosing certain types of life insurance. Term life is usually the cheapest policy to buy, because it is not considered permanent life insurance and it does not build cash value. If one chooses this type rather than whole life or another type they will see lower premiums and costs. Determine exactly what type and coverage amount one want so that they can get enough coverage without having more than what is necessary. Once decided on the coverage type and value, it is time to start looking for low cost life insurance. This is done using life insurance quotes, which can be found online for free. There are websites which can give you numerous quotes in just minutes, so that individual can determine what each company will charge for the policy they want. Comparing these quotes will show premium prices which can vary widely. Each life insurance company will give them a different risk rating, depending on all the factors involved, and each company gives different weights to different factors. One life insurance company may classify them as a higher risk, with higher rates and charges, while another may consider them much less risky and charge much less as a result. It is possible to find low cost life insurance without spending hours or days on the phone with online life insurance quotes, and there are some other ways that they can cut the costs of their policy as well.

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 What Are Life Insurance Ratings And What Do They Mean?

Life insurance ratings are one of the best ways for one to tell exactly how a life insurance company rates among the competition, and what their financial strength and stability levels are. The ratings are done by independent third parties, who have nothing to gain or lose no matter how they rate the life insurance company. Life insurance ratings can be used as an important tool in comparing companies and finding the one that is right for individual life insurance needs. The financial stability of the company one chooses is crucial, because they pay their premiums for a reason. When an individual pass away they expect the company to pay the death benefit to their beneficiaries. But what if the company does not have the money, and cannot pay? In this situation their loved ones may be financially harmed, and the company could end up going under and declaring bankruptcy. It is important to verify that the life insurance provider that an individual chooses is stable and financially secure. The rating categories for life insurance companies can help them do this before they purchase a policy. Life insurance ratings are a quick way for them to tell the financial position and credit ratings of a life insurance company. These can be anywhere from A++, which is excellent and the highest rating possible, all the way down to S which means the rating was suspended. If they want a secure life insurance company which is not at much risk of going under or being unable to pay claims then they should choose a company which is rate A or above. These are considered very stable and secure, with very few risks involved. As life insurance ratings go down, their risks increase. This means that a C rated company has a higher chance of not paying claims than a B rated company. Anything below a B+ is considered risky and vulnerable, and probably should be avoided. Life insurance ratings, together with quote comparisons, can help you find the best life insurance policy and company for one and their loved ones, so they can get the peace of mind they want. Comparing life insurance quotes can save their money on their policy, but savings are not worth using a company which may default on the death benefit. Life insurance ratings will let you compare companies as well as premium
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prices, so they can make an informed decision about the financial future of their family. For the best possible guarantee choose life insurance companies which have only the highest possible ratings, A++. This will help make the financial stability of their beneficiaries a given, instead of a questionable proposition.

What is the major risk a family is exposed due to death of the breadwinner of a family?

In the above circumstance, the source of income comes to an end but not the expenses. They remain, as they were earlier before the death of the breadwinner of the family. Just in case, the income doesn't remain the same as earlier, the family has to downgrade their standard of living. This kind of situation may affect the future of the family drastically. To overcome all these risks, life insurance is mandatory for everyone who has any dependant on his or her income besides any kind of liability like a home loan or a personal loan or any other loan. In case of death of the insured, the money, which is received from the Life Insurance Company, is paid to the bank or the financial institution from where the loan is taken.

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Chapter no.5. Right Time To Buy Life Insurance policy.

Right time to buy life insurance policy:-

1. Buying Life Insurance cannot ever be compared with other investment decisions since it is very much in contrast with those stock market investments decisions since it is very much in contrast with those stock market investments where one waits for the right time to buy & sell. Neither is like receiving tips on particular scrip doing well in the market & holding great future prospect. 2. This is because the future is always uncertain. Just as buying insurance is necessity so also buying insurance early in life is important too. With proper financial planning one can work out as to how much money an individual is entitled to after the end of a particular term. A policy that will fulfill your childs future educational needs would have to be timed appropriately so that he receives the policy amount at that time when he needs it the most.
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Why is it better to buy life insurance policy at early age?:Here are many advantages of buying an insurance policy as early as possible: First, the consideration of an insurance policy or the premium is significantly lower at younger ages (the reason for that is as we grow older, the mortality risk is greater & hence insurance companies would charge a higher premium to cover those risks). By buying a policy at an early age, we would be able to protect our dependents against the unforeseen event like death at a much lower overall cost. Second, as we grow older, the chances that one would suffer from health problems are higher, & obtaining insurance could become difficult at that stage even if they want to.

Third, if one is buying insurance with a view to create large sum of money at a pre- determined age to meet certain planned expenses like their childrens education do for their post retirement expenses, then saving early on in their life is highly beneficial. One will have to save much more or for longer durations to get the same amount of money if they start saving late in their life.

Advantages of buying policy at early age:The premium that one pay on their insurance policy is mainly dependent upon two things:Their age & the tenure of the policy: - The younger they are the lower is your insurance premium amount. At younger age, they would be physically sound & may not be suffering from illnesses/ medical. This would entitle them to a lower premium on the policy. Therefore it is advisable to buy insurance at an early age to reduce the cost of insurance.
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An early start is half the race won:- This chart illustrates two investment programs with annual investments of Rs. 20000/-. One individual starts at age of 22 & quits investing at age of 30, & the other starts at age of 31. Age 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 Early Investment 20000 20000 20000 20000 20000 20000 20000 20000 20000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Late Investment 0 0 0 0 0 0 0 0 0 20000 20000 20000 20000 20000 20000 20000 20000 20000 20000 20000 20000 20000 20000 20000 20000 20000 20000 20000 20000 20000 20000 20000 20000 20000 20000 20000 20000
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59 60 61 62 63 64 65 Total Invested Amount Available

0 0 0 0 0 0 18000 3988070

20000 20000 20000 20000 20000 20000 20000 70000 37722040

So if one start saving early, they accumulate more even while investing less. This chart proves a point. These figures are based on a hypothetical interest rate of 8%.These figures are based on a hypothetical interest rate of 8%. One may not be able to invest Rs 20000/- annually from the time they turn 22 but any amount invested earlier will make a dramatic difference later. The longer their money is allowed to grow at a compounded rate, the more dramatic will the difference be eventually.

Amount of Life Insurance should an individual have?

One of the simplest rules is to assume that insurance is a replacement for individual lost earning capacity. Calculate your total income for the years that you expect to work. Assuming that the prevailing interest rate 8%, one need to insure their life for at least 12 times their current annual income. Assuming that a family needs Rs. 100 annually for household expenditure and the rate of interest would be @ 8%, & then the breadwinner needs to have a life insurance policy of approximately Rs. 1200. If the insurance amount were to be put in the bank by the family, the family would get a comfortable Rs. 96 p.a, which would at least let the family maintain current life style.

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Amount of Life Insurance do one need:-

1. The need for life insurance is based on various factors including ones current life style, expected outgoings in future, their present age & their family size. 2. The first step should be to estimate how much financial support their dependents would need in order to continue to enjoy the same life style as they enjoy today in the event that they are not around to provide that support, one should consider all regular monthly expenses including food, rentals, conveyance, school fees, medical expenses, any debts to be paid etc. & also estimated ones like for childrens education & marriage & your expected needs after retirement. 3. Always provide for unforeseen contingencies that their dependants might need during the period of adjustment. Based on this analysis & the expected returns on the investments in future, they can work out a sum of money that would help their dependants achieve financial independence even if they are not around to support them.

4. While the situation of every individual would be different & should be evaluated, one rule of thumb is to buy a cover for an amount equal to 6-10 times your annual income. 5. Clearly, the need for insurance is not static & will change their life stage changes so they must re-work the requirement periodically & review the coverage available from time to time.

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Chapter no.6. Life Insurance & Tax Benefits.

Introduction:-

Life Insurance is bought for several reasons. Tax benefits, of course, are a key driver for taking life insurance. Some people invest in insurance for the right reason that returns are attractive. Very few however, buy insurance for the right reason i. e. the life cover. In order to provide savings and investments, the government has provided certain tax relief in the form of tax exemptions, tax deductions and tax rebates. Traditionally, buying life insurance has always formed an integral part of an individuals annual tax planning exercise. While it is important for individuals to have life cover, it is equally important that they buy insurance individuals to have life cover, it is equally important that they buy insurance keeping both their long-term financial goals and their tax planning in mind.

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The Income Tax Act and Life Insurance policies:-

1. Under Sections 10(10A) of the Income Tax Act, any payment received by way of commutations of pension out of the Jeevan Suraksha annuity plans is exempt from tax. 2. Under Section 10(10D), any sum received under a Life Insurance policy (not being a Key Man policy) is also exempt from taxation. But it is wise to remember that Pensions received from Annuity plans are not exempted from Income Tax. 3. Under section 10(13), the payment received from an approved Superannuation Fund made. o On the death of a beneficiary o To an employee in lieu of or in commutations of an annuity on his retirement or after a specified age. o By way of refund of contributions on the death of a beneficiary, etc. are exempt from income tax. 4. Income Deduction under Section 80CCC: When one invests money under an approved pension plan, they are entitled to claim an income deduction of up to Rs, 10,000 per annum or the actual amount paid as premium whichever is lower.

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But an individual must always keep a few factors in mind when considering Section 80(CCC):1. Where the assessee or his nominee surrenders the annuity before its maturity, then the surrender value shall be taxable in the hands of the assessee or his nominee in the year of receipt. 2. The amount of pension received will be taxable in the hands of the assessee or nominee.

Additionally, they can also claim rebate under Section 88 of the Income Tax Act for the premiums paid:-

1. Tax Rebate under Section 88: Under Section 88, from April 1, 2003, one can avail of a rebate on the tax payable when they pay the premium for life insurance policy as follows (subject to a maximum tax rebate with respect to premium paid of Rs. 70,000 per annum)

For individuals with Gross Total Income up to Rs. 1.5 lacs, up to 20% of the premium paid. For individuals with Gross Total Income between Rs. 1.5 lacs and up to Rs. 5 lacs, up to 15% of the premium paid.

2. Income Deduction under Section 80D: When one invests money in an approved policy that is taken as an insurance on the their health or the health of any of the dependents, they can claim an income deduction of up to Rs.10,000 per annum or the actual premium paid, whichever is lower. Certain life insurance companies also offer the Critical Illness Rider with their products and if the insurance company has taken approval from the Income Tax Authority, benefit under Section 80D is also available for the Rider
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Premium. In case such a policy is taken by Senior Citizens (as defined by the Income Tax Act), the income deduction is available up to an amount of Rs.15, 000 per annum or the actual premium paid, whichever is lower. 3. Income Deduction under Section 80DD: When one invests money in approved policies intended to cover the cost of maintenance including medical treatment of a disabled dependent, then you can claim an income deduction of an amount up to Rs.40, 000 per annum or the actual premium paid, whichever is lower. 4. Exemption under Section 10(10D): The proceeds from any insurance policy are completely exempt from income tax except in case of maturity value of policies where the annual premium is in excess of 20% of the Sum Assured. (This typically happens in Single Premium policies).

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Chapter no. 7. Life Insurance & Savings.

Introduction:-

1. An insurance contract provides risk coverage to the insured. When however, the contract period covered a long time, as in case of life insurance premium payment have two components, once goes towards savings. 2. The saving component of life insurance pits the insurer in direct competition with other financial institution and saving instruments, such as bank deposit, equities and mutual fund. 3. The bundling together of risk coverage and savings is peculiar to the life insurance. In case of life insurance the insurer cannot reclaim the saving component without some penalty. 4. Cash value life insurance provides both death benefits and a savings feature. When one buy a permanent or cash value policy, part of their premium pays for the life insurance protection and part goes toward the savings component. 5. As they pay their premiums the savings portion is invested, and the principal and earnings accumulate as their cash value.

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6. They arent required to leave the funds in the policy, however. They can sometimes withdraw from or borrow against the accumulated cash value. 7. One can then use the withdrawn or borrowed funds to finance their retirement, pay a childs college tuition, or assist a child with a down payment on a house, among other things. 8. This type of insurance can be a valuable asset, both as an investment and for life insurance purposes.

Advantages of using life insurance as a savings vehicle:-

It provides life insurance protection for ones family. One can earn money on their premium payments (generally up to a certain percentage) One can borrow from the cash value at a relatively low interest rate (the amount one can borrow will vary by policy type) One may be able to combine a policy loan with a policy withdrawal. One may have a number of investment choices ( depending on policy type)

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Chapter no. 8.Life Insurance Retirement Plan (LIRP).

Description:As a life insurance policy designed to take advantage of tax treatment of life insurance, it is suited for investors with high income, which may exclude them from participating in Roth IRAs. A LIRP can provide a long-term accumulation vehicle for supplemental retirement income. In addition, at your death, it offers a benefit to help replace lost income for those who depend on you.

Objective:To provide investors supplemental retirement income via a life insurance policy featuring market appreciation, tax-deferred accumulation, and a life insurance death benefit.

Suitability:Variable Universal Life insurance is often used as a vehicle for a Life Insurance Retirement Plan. Over-funding a policy is best suited for investors already taking full advantage of other tax-advantaged ways to save for retirement. A LIRP is an option for those investors wanting to
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invest more for retirement once they have reached the contribution limits on qualified plans.

Product Features: Earnings grow tax-deferred Payouts can be structured to provide an income

Owner can structure tax-free payout from policy withdrawals and loans Death benefits paid to the beneficiaries are income tax-free

Contributions should be made for at least 10 years Policy cannot lapse or all loans become immediately taxable

Usually have a surrender charge in the first 10-15 years Must be insurable

Death benefit included in the owner's estate, if the owner is also the insured and dies.

Retirement Plan Ideas

Everyone grows old. Its inevitable. We all know retirement coming, but unfortunately, few of us is adequately prepared for its arrival. There are several things we can do to prepare for retiring,
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even if that fateful day is looming larger in the immediate future than is truly comfortable to consider. When making retirement plans one has to consider several things. First, why am I planning? What is your motivation, reason for planning? Also, what plans are out there? There are many paths to the same goal. Finally, of those paths, which one is right for you? Individual may think, why should he/she think about retirement now? Im young and fit, I can think about it later. This procrastination can be a costly and financially dangerous mistake. Everyone should be looking to the future and planning for the day that they will no longer want or be able to work to earn a livelihood. Furthermore, those individuals who think Social Security will be enough are fooling themselves. That program was never intended to and never will take the place of good retirement planning, for employer or employee. There will always be a need to supplement this government provision. Individuals who plan their retirement are able to supplement this base income with other sources that greatly improve income potential over the course of a retirement. There are many factors to consider when looking at which retirement plan will be best for your particular situation.

Factors For Retirement:-

Eligibility: While all of the plans have their merits, not all individuals are eligible for all the plans. The first step one need to take is to look at the eligibility requirements and make sure one can even include it as an option.

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 Benefits: Another consideration is the long term benefits of each plan. This is where a good, trusted financial planner is very useful. One would be able to enter your specific numbers and let you know which plan or combination of plans would be most beneficial for you. Flexibility: How flexible is the plan? How flexible do one need to plan to be? Looking at issues like early withdrawal of dividend or principal or the possibility of loans for hardship or other life events is essential when weighing the pros and cons of each plan. Taxes and costs: Another factor for many individuals is the extra costs incurred by specific plans. These costs include when taxes are paid on the money and fees associated with opening or maintaining the account. In addition, if youre particular plan is connected to the stock market through mutual funds or company stock you always run the risk of losing profits based on the mood of the market. Age: Individual also needs to consider their age when they begin their account. A person in their 20s or 30s can be a bit more aggressive and take a few more risks with their retirement investments. If individual are in their 50s they need to maximize their contributions and minimize risks.

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Chapter no.9. Claim Settlement.

Claims Process:-

Filing a Life Insurance Claim

Claim settlement is one of the most important services that an insurance company can provide to its customers. Insurance companies have an obligation to settle claims promptly. One will need to fill a claim form and contact the financial advisor from whom they bought their policy. Submit all relevant documents such as original death certificate and policy bond to their insurer to support their claim. Most claims are settled by issuing a cheque within 7 days from the time they receive the documents. However, if your insurer is unable to deal with all or any part of your claim, you will be notified in writing.

Types of claims:-

Maturity Claim On the date of maturity life insured is required to send maturity claim / discharge form and original policy bond well before maturity date to enable timely settlement. Most companies offer/issue post dated cheques and/ or make payment through ECS (Electronic Clearing System) credit on the maturity date. In case of delay in settlement kindly refer to grievance redressed.

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Death Claim (including rider claim) In case of death claim or rider claim the following procedure should be followed.

Four simple steps to file a claim:

1. Claim intimation/notification:The claimant must submit the written intimation as soon as possible to enable the insurance company to initiate the claim processing. The claim intimation should consist of basic information such as policy number, name of the insured, date of death, cause of death, place of death, name of the claimant. The claimant can also get a claim intimation/notification form from the nearest local branch office of the insurance company or their insurance advisor/agent. Alternatively, some insurance companies also provide the facility of downloading the form from their website.

2. Documents required for claim processing:The claimant will be required to provide a claimant's statement, original policy document, death certificate, police FIR and post mortem exam report (for accidental death), certificate and records from the treating doctor/hospital (for death due to illness) and advance discharge form for claim processing. Based on the sum at risk, cause of death and policy duration, insurance companies may also request some additional documents.|

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3.

Submission of required documents for claim processing:-

For faster claim processing, it is essential that the claimant submits complete documentation as early as possible. A life insurer will not be able to take a decision until all the requirements are complete. Once all relevant documents, records and forms have been submitted, the life insurer can take a decision about the claim.

4.

Settlement of claim:-

As per the regulation 8 of the IRDA (Policy holder's Interest) Regulations, 2002, the insurer is required to settle a claim within 30 days of receipt of all documents including clarification sought by the insurer. However, the insurance company can set a practice of settling the claim even earlier. If the claim requires further investigation, the insurer has to complete its procedures within six months from receiving the written intimation of claim.

Claim intimation:-

In case a claim arises you should: # # # # Contact the respective life insurance branch office. Contact your insurance advisor Call the respective Customer Helpline Claim requirements

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For Death Claim: # Death Certificate # Original Policy Bond # Claim Forms issued by the insurer along with supporting documents.

For Accidental Disability / Critical Illness Claim: # Copies of Medical Records, Test Reports, Discharge Summary, Admission Records of hospitals and Laboratories. # Original Policy Bond # Claim Forms along with supporting documents

For Maturity Claims: # Original Policy Bond # Maturity Claim Form.

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Chapter no.10.Customer Survey Report.

The following is the report on the survey made on local people:-

1. Occupation a) Businessman d ) House wife b) Professional e) Employees c) Students

In the sample survey of customers it was observed that the maximum number of population is still jobless and working in the private firms and the policy of small life cover is taken by employees and that of higher amount is taken by Businessman. India is the country where Rich is becoming richer day-by-day and Poor is getting poorer. According to survey there are approximately 10% of businessman, 8% of professionals, 30% of students, 12% housewives and 40% Employees.

40 30 20 10 0

30 10 8 12

40

Occupation

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2. Do u have Life Insurance? If yes of which company? a) Yes b) No

According to the survey done, it was found as LIFE is uncertain anything can happen at any time so people have life insurance to safeguard their families in future. But only small part of the population doesnt have life insurance policy because they earn daily income and have very small savings.

Life Insurance Policy

Life Insurance Policy 95 5 Yes No

3. Are you aware about the various plans offered by Life Insurance Company? a)Yes b) No

According to the survey, people first go through websites or ask the consultant about the policies and accordingly they choose the policy which best suits them and also provides the required benefits.

Plans
150 Axis Title 100 50 0 Plans Yes 97 No 3

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4. According to you, Insurance policies are for? a) Child b) Adults c) Old people

According to the survey, most of the people believe that insurance policy is for adults so that they can safeguard their families in future, and some people think that it is for Children as it will benefited for their future studies.

LIC policy is for

Old people Adults Children 0 20 25 40 60 80 15 60 LIC policy is for

5. At what age should a person think about taking an insurance policy? a) 0-15 b) 24-30 c) 45-60

According to the survey, people take insurance policy once they start earning i.e. at the age of 24-30. Once they start earning it becomes easy for them to pay their insurance premiums.

Age
5% 10%

0-15 24-30 45-60 85%

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6. Do you know about Unit Linked Insurance Plans (ULIP)? a) Yes b) No

According to the survey conducted, people are very busy in their day to day routines. They dont have enough time to learn in detail about this plan. So most of them are unaware of ULIP PLAN. But most of the educated populations are aware of the ULIP PLAN.

ULIP awareness
Axis Title 100 50 0 Awareness Yes 65 No 35

7. In which Life Insurance scheme did you invest? a) Insurance plans d ) Group Plans According to the survey conducted, many people mostly go for Pension Plans, as it will benefit them after retirement and a fix sum of money they will get in lump sum or in installments as decided while taking the policy. b) Pension plans c) Special Plans

Scheme
Insurance Plans 12% Pension Plans 8% Special Plans 35% Group Plans

45%

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8. Why did you prefer above-mentioned Life Insurance policy? a)Security b)Less risk c)Tax benefit

According to the survey of customers, it was found that most of the people take insurance policy of LIC because it provides them total safety and they feel secure as money is invested at right place by Government. LIC is the Government Insurance Company. And most of the people take policy to save their taxes.

Preference
Preference

Tax Benefit Less Risk Security 25 35

40

9. How long have you been investing in the above Life Insurance policy? a)Less than 2 year b)2 year-10 years c) More than 10 years

LIC is the Government Insurance body formed in the year 1956. People have trust in LIC has it is risk free n provides security.

More than 10 year 2 year- 10 year Less than 2 years 0 10 20 40 Time Period 60 20

70

80

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10. How do you rate the quality of service provided by Life Insurance? a) Good b) Average c) Bad

According to the survey, people trust LIC than any other insurance company. The reasons for that it is owned by Government, it provides security and other required benefits.

Bad Average Good 0

3 7 90 20 40 60 Ratings 80

100

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Recommendations:-

Life Insurance Company has been performing better from the date of formation. As it is a Government insurance company people trust this company a lot and invest their valuable money without any fear. I Would recommend after coming across with the whole project and survey conducted that LIC should bring the policies for low income group of people whose savings are low. They should bring plans for them with low life cover with maximum benefits. But while giving plans to the low income group people LIC should first ask for the required documents for taking the policy.

Conclusions:-

The financial markets have continued to witness unprecedented liberalization, growth and reforms over the last decade prompted by regulatory compulsions and a rapid integration between domestic and global markets. And as a result, one has seen substantial growth in the number of financial firms (insurance companies, mutual funds, brokerages, banks etc.) and in the number and variety of financial products and services offered by them. As the need of the people is changing so is changing the investment habits of the people and this has brought in a spate of new products and schemes where people can invest. The concept of insurance as an investment option has arrived where people first identify the varying needs of money then converts the needs into specific amount of money and time required to achieve the objective of investments plans. The objective of insurance as an investment is to ensure that investments are driven by pre determined and well thought out investment plan and that the investments are suitable and adequate to meet these plans. But for this the planner must understand the universe of investments options. He/she must be well informed on the risk and return
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attributes of these options. In addition to the above, companies should also innovate to come up with better products that would suit the Indian population and should also try to market and sell their products through new channels of distribution that can be effective in selling their products to the masses. People should identify their needs and then decide on the type of policy they want to invest in. insurance is a good investment option for those people who do not know where to invest and who do not want to the risk of capital erosion. But, people who are financially savvy can opt for term insurance and invest the rest in other options that may give them higher returns.

Limitations:The concept of Life Insurance is connected to the life of people. While doing the survey of customers for primary data some people provided insufficient data while some people ignored to give their personal details and some people somewhere gave the fake data may be due to the various reasons or they felt it unsecured to give their personal details.

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ANNEXURE

In view of this, I hereby request you to give your feedback on the questionnaire given below.

Please note that your response will be kept confidential. Please mark the appropriate answer NAME -_______ AGE -________ Nationality -_________ Income-_____ Contact number -___________ Address-_______________________________

1. Occupation a) Businessman d ) House wife b) Professional e) Employees c) Students

2. Do u have Life Insurance? If yes of which company? a) Yes b) No

3. Are you aware about the various plans offered by Insurance Company? a)Yes b) No

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4. According to you, Insurance policies are for? a) Child b) Adults c) Old people

5. At what age should a person think about taking an insurance policy? a) 0-15 b) 24-30 c) 45-60

6. Do you know about Unit Linked Insurance Plans (ULIP)? a) Yes b) No

7. In which Life Insurance scheme did you invest? a) Insurance plans d ) Group Plans b) Pension plans c) Special Plans

8. Why did you prefer above-mentioned Life Insurance policy? a)Security b)Less risk c)Tax benefit

9. How long have you been investing in the above Life Insurance policy? a)Less than 2 year b)2 year-10 years c) More than 10 years

10. How do you rate the quality of service provided by Life Insurance? a) Good b) Average c) Bad

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Bibliography:Life and Health Insurance Fundamental of Risk and Insurance

Weblio gra phy : www.licindia.in www.irdaindia.org www.insurancelocal.com

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