Etica Wealth Management - Insurance Presentation

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Risk Planning

A simple way to invest in equity and create wealth

INDEX

� Origins of Insurance

� Life insurance Industry in India

� Types of Life Insurance Policies

� Term Insurance Policy

� Whole Life Policy

� Endowment Policy

� Money Back Policy

� Unit-Linked Insurance Plans (ULIPS)

� Annuities & Pension Plan

� Riders

� Term Plan Comparison

� FAQs on Life Insurance

� Myth Busters

� General Insurance Industry

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� RisksRisksRisksRisks andandandand uncertaintiesuncertaintiesuncertaintiesuncertainties areareareare partpartpartpart ofofofof life'slife'slife'slife's greatgreatgreatgreat adventureadventureadventureadventure --------accident,accident,accident,accident, illness,illness,illness,illness, theft,theft,theft,theft, naturalnaturalnaturalnatural disasterdisasterdisasterdisaster ---- they'rethey'rethey'rethey're allallallall builtbuiltbuiltbuilt intointointointothethethethe workingworkingworkingworking ofofofof thethethethe universe,universe,universe,universe, waitingwaitingwaitingwaiting totototo happenhappenhappenhappen....

� InsuranceInsuranceInsuranceInsurance thenthenthenthen isisisis man'sman'sman'sman's answeransweransweranswer totototo thethethethe vagariesvagariesvagariesvagaries ofofofof lifelifelifelife.... IfIfIfIf youyouyouyoucannotcannotcannotcannot beatbeatbeatbeat manmanmanman----mademademademade andandandand naturalnaturalnaturalnatural calamities,calamities,calamities,calamities, well,well,well,well, atatatatleastleastleastleast bebebebe preparedpreparedpreparedprepared forforforfor themthemthemthem andandandand theirtheirtheirtheir aftermathaftermathaftermathaftermath....

PROCESS OF ANALYSING INSURANCE NEED

�Identifications of Risks

�Assessing Risk

�Manage & Control the risk�Risk avoidance

�Risk Reduction

�Risk Retention

�Risk transfer

�Monitor & Review

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COMMON RISKS FACED BY US

�Death (Loss of Income)Death (Loss of Income)Death (Loss of Income)Death (Loss of Income)

�Disability (Loss of Income temporarily)Disability (Loss of Income temporarily)Disability (Loss of Income temporarily)Disability (Loss of Income temporarily)

�Critical Illness (High treatment charges)Critical Illness (High treatment charges)Critical Illness (High treatment charges)Critical Illness (High treatment charges)

�Illness & injuries (Hospitalization expenses)Illness & injuries (Hospitalization expenses)Illness & injuries (Hospitalization expenses)Illness & injuries (Hospitalization expenses)

�House: Fire, theft, calamityHouse: Fire, theft, calamityHouse: Fire, theft, calamityHouse: Fire, theft, calamity

�Motor: Accidents, theft, calamityMotor: Accidents, theft, calamityMotor: Accidents, theft, calamityMotor: Accidents, theft, calamity

ORIGINS OF INSURANCE

� InsuranceInsuranceInsuranceInsurance inininin IndiaIndiaIndiaIndia cancancancan bebebebe tracedtracedtracedtraced backbackbackback totototo thethethethe VedasVedasVedasVedas.... ForForForFor instance,instance,instance,instance, yogakshema,yogakshema,yogakshema,yogakshema,

thethethethe namenamenamename ofofofof LifeLifeLifeLife InsuranceInsuranceInsuranceInsurance CorporationCorporationCorporationCorporation ofofofof India'sIndia'sIndia'sIndia's corporatecorporatecorporatecorporate headquarters,headquarters,headquarters,headquarters, isisisis

derivedderivedderivedderived fromfromfromfrom thethethethe RigRigRigRig VedaVedaVedaVeda.... TheTheTheThe termtermtermterm suggestssuggestssuggestssuggests thatthatthatthat aaaa formformformform ofofofof "community"community"community"community

insurance"insurance"insurance"insurance" waswaswaswas prevalentprevalentprevalentprevalent aroundaroundaroundaround 1000100010001000 BCBCBCBC andandandand practisedpractisedpractisedpractised bybybyby thethethethe AryansAryansAryansAryans....

� LifeLifeLifeLife insuranceinsuranceinsuranceinsurance hadhadhadhad itsitsitsits originsoriginsoriginsorigins inininin ancientancientancientancient Rome,Rome,Rome,Rome, wherewherewherewhere citizenscitizenscitizenscitizens formedformedformedformed burialburialburialburial clubsclubsclubsclubs

thatthatthatthat wouldwouldwouldwould meetmeetmeetmeet thethethethe funeralfuneralfuneralfuneral expensesexpensesexpensesexpenses ofofofof itsitsitsits membersmembersmembersmembers asasasas wellwellwellwell asasasas helphelphelphelp survivorssurvivorssurvivorssurvivors bybybyby

makingmakingmakingmaking somesomesomesome paymentspaymentspaymentspayments....

� MarineMarineMarineMarine InsuranceInsuranceInsuranceInsurance (Europe)(Europe)(Europe)(Europe) //// FireFireFireFire InsuranceInsuranceInsuranceInsurance (London(London(London(London fire)fire)fire)fire)

� TheTheTheThe governmentgovernmentgovernmentgovernment decideddecideddecideddecided totototo nationalizenationalizenationalizenationalize thethethethe lifelifelifelife assuranceassuranceassuranceassurance businessbusinessbusinessbusiness inininin IndiaIndiaIndiaIndia.... AsAsAsAs aaaa

result,result,result,result, TheTheTheThe LifeLifeLifeLife InsuranceInsuranceInsuranceInsurance CorporationCorporationCorporationCorporation ofofofof IndiaIndiaIndiaIndia waswaswaswas setsetsetset upupupup inininin 1956195619561956 totototo taketaketaketake overoveroverover

aroundaroundaroundaround 250250250250 lifelifelifelife companiescompaniescompaniescompanies....

� TheTheTheThe InsuranceInsuranceInsuranceInsurance RegulatoryRegulatoryRegulatoryRegulatory &&&& DevelopmentDevelopmentDevelopmentDevelopment Authority,Authority,Authority,Authority, anananan autonomousautonomousautonomousautonomous insuranceinsuranceinsuranceinsurance

regulatorregulatorregulatorregulator setsetsetset upupupup inininin 2000200020002000

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LIFE INSURANCE INDUSTRY� Life Insurance Industry was liberalized in the year 1999Life Insurance Industry was liberalized in the year 1999Life Insurance Industry was liberalized in the year 1999Life Insurance Industry was liberalized in the year 1999----2000.2000.2000.2000.

� Currently there are 24 players in the Life Insurance Industry.Currently there are 24 players in the Life Insurance Industry.Currently there are 24 players in the Life Insurance Industry.Currently there are 24 players in the Life Insurance Industry.

� 22 Insurance companies have JV’s with foreign partners.22 Insurance companies have JV’s with foreign partners.22 Insurance companies have JV’s with foreign partners.22 Insurance companies have JV’s with foreign partners.

� LIC and Sahara Life Insurance company do not have JV’s.LIC and Sahara Life Insurance company do not have JV’s.LIC and Sahara Life Insurance company do not have JV’s.LIC and Sahara Life Insurance company do not have JV’s.

� All the major international players are present in the Indian Insurance market.All the major international players are present in the Indian Insurance market.All the major international players are present in the Indian Insurance market.All the major international players are present in the Indian Insurance market.

� A high capital intensive industry A high capital intensive industry A high capital intensive industry A high capital intensive industry ---- Rs.31,437 Cr deployedRs.31,437 Cr deployedRs.31,437 Cr deployedRs.31,437 Cr deployed

� Foreign partners have brought in capital of around Rs.5,053 Cr as FDI.Foreign partners have brought in capital of around Rs.5,053 Cr as FDI.Foreign partners have brought in capital of around Rs.5,053 Cr as FDI.Foreign partners have brought in capital of around Rs.5,053 Cr as FDI.

� India has the largest inIndia has the largest inIndia has the largest inIndia has the largest in----force policies in the world.force policies in the world.force policies in the world.force policies in the world.

SNAPSHOT OF INDIAN LIFE INSURANCE INDUSTRY

Parameter FY 99-00 FY 06-07 FY 07-08 FY 09-10 FY 10-11

(provisional)

Number of players 1 16 18 23 24

Capital Deployed (Rs. Cr) 5 9,485 16,692 28,943 31437

Branches 2,048 5,373 8,913 12,018 11465

Employees (in Lacs) 1.23 1.87 2.54 2.70 2.42

Individual Agents (in Lacs) 7.14 19.93 25.20 29.78 26.47

New Business Policies (In Cr) 1.69 4.61 5.08 5.32 4.81

In force Policies (In Cr) 10.14 22.70 25.76 30.40 32.54

India’s share of world premium 0.50% 1.53% 1.83% NA NA

Penetration as % of GDP 1.39% 4.1% 4.0% 4.90* NA

Total Death Benefit paid(Rs.Cr) NA 4,794 5,288 8,385 10,270

Total Maturity claim paid(Rs. Cr) NA 34,356 34,543 NA NA

Over 70% of the branches are located in Class C cities or lower

Source: IRDA, Life Insurance Council

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FAQS ON LIFE INSURANCE

� What is Life Insurance? What is Life Insurance? What is Life Insurance? What is Life Insurance?

� Do you need life insurance?Do you need life insurance?Do you need life insurance?Do you need life insurance?

� How much does life insurance cost?How much does life insurance cost?How much does life insurance cost?How much does life insurance cost?

� How much do I insure myself for?How much do I insure myself for?How much do I insure myself for?How much do I insure myself for?

� What will I receive on maturity of my policy?What will I receive on maturity of my policy?What will I receive on maturity of my policy?What will I receive on maturity of my policy?

� Are there any advantages in buying insurance at an early age?Are there any advantages in buying insurance at an early age?Are there any advantages in buying insurance at an early age?Are there any advantages in buying insurance at an early age?

� How do I buy a policy?How do I buy a policy?How do I buy a policy?How do I buy a policy?

� Where can I get all the relevant information?Where can I get all the relevant information?Where can I get all the relevant information?Where can I get all the relevant information?

TYPES OF LIFE INSURANCE POLICIES

� Term Insurance PolicyTerm Insurance PolicyTerm Insurance PolicyTerm Insurance Policy

� Whole Life PolicyWhole Life PolicyWhole Life PolicyWhole Life Policy

� Endowment PolicyEndowment PolicyEndowment PolicyEndowment Policy

� Money Back PolicyMoney Back PolicyMoney Back PolicyMoney Back Policy

� UnitUnitUnitUnit----Linked Insurance Plans (ULIPS)Linked Insurance Plans (ULIPS)Linked Insurance Plans (ULIPS)Linked Insurance Plans (ULIPS)

� Annuities & Pension PlanAnnuities & Pension PlanAnnuities & Pension PlanAnnuities & Pension Plan

� RidersRidersRidersRiders

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TERM INSURANCE POLICY

�Provides cover for a specific period onlyProvides cover for a specific period onlyProvides cover for a specific period onlyProvides cover for a specific period only

�Premium is very low. Premium is very low. Premium is very low. Premium is very low.

�No returns/refund of premiumNo returns/refund of premiumNo returns/refund of premiumNo returns/refund of premium

�No investment elementNo investment elementNo investment elementNo investment element

�100% Risk Cover100% Risk Cover100% Risk Cover100% Risk Cover

�Sum assured paid on deathSum assured paid on deathSum assured paid on deathSum assured paid on death

�Best policy for adequate life coverBest policy for adequate life coverBest policy for adequate life coverBest policy for adequate life cover

�Buy based on life insurance need analysisBuy based on life insurance need analysisBuy based on life insurance need analysisBuy based on life insurance need analysis

WHOLE LIFE POLICY

�Pays either at death or maturityPays either at death or maturityPays either at death or maturityPays either at death or maturity

�Maturity usually 100 years age.Maturity usually 100 years age.Maturity usually 100 years age.Maturity usually 100 years age.

�Premium paid for life time Premium paid for life time Premium paid for life time Premium paid for life time

�Works for estate planning as benefits are generally enjoyed Works for estate planning as benefits are generally enjoyed Works for estate planning as benefits are generally enjoyed Works for estate planning as benefits are generally enjoyed

by familyby familyby familyby family

�Very High Commission (upto 35%)Very High Commission (upto 35%)Very High Commission (upto 35%)Very High Commission (upto 35%)

�Not Very flexibleNot Very flexibleNot Very flexibleNot Very flexible

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ENDOWMENT POLICY

�Most popular insurance policy in IndiaMost popular insurance policy in IndiaMost popular insurance policy in IndiaMost popular insurance policy in India

�Combines Investment + Risk CoverCombines Investment + Risk CoverCombines Investment + Risk CoverCombines Investment + Risk Cover

�Sum assured paid on death or survival at maturity Sum assured paid on death or survival at maturity Sum assured paid on death or survival at maturity Sum assured paid on death or survival at maturity

�Bonus paid along with Sum Assured on maturity Bonus paid along with Sum Assured on maturity Bonus paid along with Sum Assured on maturity Bonus paid along with Sum Assured on maturity

�Premiums are higher than term plan due to a savings Premiums are higher than term plan due to a savings Premiums are higher than term plan due to a savings Premiums are higher than term plan due to a savings

componentcomponentcomponentcomponent

�Very High Commission (upto 40%)Very High Commission (upto 40%)Very High Commission (upto 40%)Very High Commission (upto 40%)

�Not FlexibleNot FlexibleNot FlexibleNot Flexible

MONEY BACK POLICY

�Covers death & survival benefitsCovers death & survival benefitsCovers death & survival benefitsCovers death & survival benefits

� Lump sum paid periodically.Lump sum paid periodically.Lump sum paid periodically.Lump sum paid periodically.

�20% + 20% + 20% + 40% of SA at predefined intervals20% + 20% + 20% + 40% of SA at predefined intervals20% + 20% + 20% + 40% of SA at predefined intervals20% + 20% + 20% + 40% of SA at predefined intervals

�Full sum assured paid on deathFull sum assured paid on deathFull sum assured paid on deathFull sum assured paid on death

�Popular for planning Children’s Education & MarriagePopular for planning Children’s Education & MarriagePopular for planning Children’s Education & MarriagePopular for planning Children’s Education & Marriage

�Very High Commission (Very High Commission (Very High Commission (Very High Commission (uptouptouptoupto 40%)40%)40%)40%)

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ANNUITIES AND PENSION

�Immediate Annuity PolicyImmediate Annuity PolicyImmediate Annuity PolicyImmediate Annuity Policy

�Single PremiumSingle PremiumSingle PremiumSingle Premium

�Monthly PensionMonthly PensionMonthly PensionMonthly Pension

�Meant for Retirees investing Retirement ProceedsMeant for Retirees investing Retirement ProceedsMeant for Retirees investing Retirement ProceedsMeant for Retirees investing Retirement Proceeds

�Deferred Annuity PolicyDeferred Annuity PolicyDeferred Annuity PolicyDeferred Annuity Policy

�Invest regularly for some yearsInvest regularly for some yearsInvest regularly for some yearsInvest regularly for some years

�Monthly pension starts at retirement ageMonthly pension starts at retirement ageMonthly pension starts at retirement ageMonthly pension starts at retirement age

�Can commute upto 1/3 of accumulationCan commute upto 1/3 of accumulationCan commute upto 1/3 of accumulationCan commute upto 1/3 of accumulation

WHAT ARE RIDERS?

�Accidental Death

�Additional Sum Assured if death

�Critical Illness

�If critical illness diagnosed

�Waiver of Premium

�Waives off premium if something happens to person

who is paying premium

�Used mainly in Children’s Policies

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UNIT LINKED INSURANCE PLANS (ULIPS)

� Market linked investment where the premium paid is invested in fundsMarket linked investment where the premium paid is invested in fundsMarket linked investment where the premium paid is invested in fundsMarket linked investment where the premium paid is invested in funds

� Different Options Different Options Different Options Different Options ---- Equity, Balanced, Debt. Switch facility availableEquity, Balanced, Debt. Switch facility availableEquity, Balanced, Debt. Switch facility availableEquity, Balanced, Debt. Switch facility available

� Greater flexibility in policy structureGreater flexibility in policy structureGreater flexibility in policy structureGreater flexibility in policy structure

� Sold as “Investment” PlansSold as “Investment” PlansSold as “Investment” PlansSold as “Investment” Plans

� Higher of the SA or Fund value is paid at death / maturityHigher of the SA or Fund value is paid at death / maturityHigher of the SA or Fund value is paid at death / maturityHigher of the SA or Fund value is paid at death / maturity

� Higher LiquidityHigher LiquidityHigher LiquidityHigher Liquidity

� Highest Highest Highest Highest MisMisMisMis----selling as earlier commission was very highselling as earlier commission was very highselling as earlier commission was very highselling as earlier commission was very high

� Recent SEBIRecent SEBIRecent SEBIRecent SEBI----IRDA spat and subsequent IRDA clampdown on ULIPSIRDA spat and subsequent IRDA clampdown on ULIPSIRDA spat and subsequent IRDA clampdown on ULIPSIRDA spat and subsequent IRDA clampdown on ULIPS

� Highest NAV guaranteed Highest NAV guaranteed Highest NAV guaranteed Highest NAV guaranteed ---- A big fraudA big fraudA big fraudA big fraud

VARIOUS COSTS - ULIPS

�Mortality charges�Cost of insurance coverage

�Premium allocation charges�Usually goes towards agents commission

�Fund management charges�To manage investment component like MFs

�Policy administration charges�To cover operational costs

�Surrender charges�Higher charges for early surrender

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LIC SAMRIDHI PLUS�Premium Allocation Charge

� First Year – 27.5%

� Second & Third Year – 7.5%

� Thereafter 5%

�Mortality Charge – 0.5%

�Policy Administration Charge – Rs 360 p.a

�Fund Management Charge – 0.40%

�Surrender Charge – 1st year 6%

�Guarantee Charge – 0.40%

�Miscellaneous Charges

Dark side

of

insurance

mis-selling

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Policy date: December 28, 2010

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Sum Assured: Rs 5,00,000

Highest NAV guaranteed

Various Charges

Premium Allocation Charge : 4%

Premium Administration Charge : 3.6%

Fund Management Charge : 1.35%

Surrender Charge : 6%

Mortality Charge : As Applicable

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Highest NAV Charge : 0.5%

Additional Service Charge : Rs 250

Total First year Charges : 9.45%

Surrendered on January 5th, 2011

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HAPPY ENDING !!!!

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The name

inspires trust

A ULIP CUSTOMER & HIS AGENT

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TERM PLANS COMPARISON CHART

Sum Assured: Rs 5,00,000.00

Annual Premium: Rs 19,603.00

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Sum Assured: Rs 2,50,00,000.00


Sum Assured: Rs 1,50,00,000.00


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ITS UPTO YOU TO DECIDE !!!!!

LIC ASHA DEEP II – ENDOWMENT PLAN ICICI I-PROTECT – TERM PLAN

� Sum Assured - Rs 5,00,000

� Annual premium - Rs 19,603

� Value at maturity based on LIC’s projection chart - Rs 13,27,500

� Sum Assured - Rs 100,00,000

� Annual premium - Rs 8,300

� Difference in Premium - Rs 11,303

� Invested in Mutual Funds -� @12% - Rs 18,80,073

� @15% - Rs 31,38,062

� @20% - Rs 74,80,026

LIC ASHA DEEP

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ASHA (NIRASHA) DEEP

� Continue to pay annual premium

� Maturity value after 25 years –

Rs 13,27,500

� Surrender value: Rs 79,271

� Annual Premium: Rs 19,603

� Remaining Tenure: 18 years

� Invests in Mutual Funds -

�@12% - Rs 18,33,596

�@15% - Rs 26,90,627

�@20% - Rs 51,24,223

LIC ASHA DEEP SURRENDER

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LIC ASHA DEEP SURRENDER CHEQUE

ASHA DEEP INVESTED INTO MUTUAL FUND

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INVESTMENTBY LIFE INSURANCE COMPANIES

Parameter FY 09-10 % age

Central Government Securities 3,61,520 57%

State Government and other approved securities 1,36,998 21.5%

Investment in Infrastructure Sector 1,39,710 21.5%

Instruments FY 2009-10 FY 2010-11

Equity 4,46,881 5,06,895 (34%)

Fixed Income (Debt) 8,10,904 9,52,993 (64%)

Others 32,161 20,425 (2%)

Total 12,89,946 14,80,313 (100%)

LIFE INSURANCE DEATH CLAIMS

LICLICLICLIC PrivatePrivatePrivatePrivate KotakKotakKotakKotak AegonAegonAegonAegon ReligareReligareReligareReligare ICICI ICICI ICICI ICICI PruPruPruPru

Amount in Rs crs

4,799.55 1,158.58 55.91 1.08 218.04

No of Policies 6,53,909 72,200 1,983 24 14,479

Avg Amountper policy

73,397.83 1,60,468.1 2,81,946.5 4,50,000 1,50,590.5

�Sum Assured: More than 6 times

�Tenure of LIC - Avg 15 years ; Private - 2 to 5 yrs

�Agent / RM Mis-selling Vs Claims settled by Claims department

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MYTH BUSTERS

�Myth 1: Insurance is for tax saving

�Myth 2: Insurance is Investment

�Myth 3: I don’t need Insurance.

5 EASY STEPS TO BUYING A POLICY

� Initially,Initially,Initially,Initially, calculatecalculatecalculatecalculate thethethethe exactexactexactexact amountamountamountamount ofofofof insuranceinsuranceinsuranceinsurance thatthatthatthat youyouyouyou needneedneedneed;;;;

� DecideDecideDecideDecide whichwhichwhichwhich productproductproductproduct suitssuitssuitssuits youyouyouyou bestbestbestbest basedbasedbasedbased onononon youryouryouryour lifelifelifelife stagestagestagestage andandandand needneedneedneed

� CalculateCalculateCalculateCalculate thethethethe premiumpremiumpremiumpremium

� OnceOnceOnceOnce youyouyouyou havehavehavehave decideddecideddecideddecided onononon allallallall thethethethe aboveaboveaboveabove parameters,parameters,parameters,parameters, getgetgetget inininin touchtouchtouchtouch withwithwithwith aaaa LifeLifeLifeLife

AdvisorAdvisorAdvisorAdvisor

� The Life Advisor will assist you in filling up a proposal form. In addition to a The Life Advisor will assist you in filling up a proposal form. In addition to a The Life Advisor will assist you in filling up a proposal form. In addition to a The Life Advisor will assist you in filling up a proposal form. In addition to a

proposal form, you need to submit some financial documents that are required proposal form, you need to submit some financial documents that are required proposal form, you need to submit some financial documents that are required proposal form, you need to submit some financial documents that are required

in order to buy a policy. The Life Advisor will notify the list of financial in order to buy a policy. The Life Advisor will notify the list of financial in order to buy a policy. The Life Advisor will notify the list of financial in order to buy a policy. The Life Advisor will notify the list of financial

documents required for the same.documents required for the same.documents required for the same.documents required for the same.

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10 COMMANDMENTS OF LIFE INSURANCE

� Thou shall buy insurance only for risk cover

� Thou shall not consider insurance as an investment option

� Thou shall preferably buy only a term policy

� Thou shall not trust his agent blindly

� Thou shall be wary of the hype (advertisements)

� Thou shall not buy ULIP at any cost

� Thou shall not insure yourself if you a lone bird

� Thou shall not insure if you are wealthy

� Thou shall not buy a child insurance plan or a plan for a non-earning member

� Thou shall read the fine print carefully

HOW TO BUY LIFE INSURANCE

� Buy insurance only from a licensed agent / intermediaryBuy insurance only from a licensed agent / intermediaryBuy insurance only from a licensed agent / intermediaryBuy insurance only from a licensed agent / intermediary

� Shop aroundShop aroundShop aroundShop around

� Understand the scope of cover, terms and conditions of the policyUnderstand the scope of cover, terms and conditions of the policyUnderstand the scope of cover, terms and conditions of the policyUnderstand the scope of cover, terms and conditions of the policy

� Fill in your application carefully Fill in your application carefully Fill in your application carefully Fill in your application carefully –––– Never sign blank proposalsNever sign blank proposalsNever sign blank proposalsNever sign blank proposals

� Health related particularsHealth related particularsHealth related particularsHealth related particulars should be trueshould be trueshould be trueshould be true

� Age and Address Proof should be correctAge and Address Proof should be correctAge and Address Proof should be correctAge and Address Proof should be correct

� Ensure premiums are paid to your insurance companyEnsure premiums are paid to your insurance companyEnsure premiums are paid to your insurance companyEnsure premiums are paid to your insurance company

� Read your policy when you receive itRead your policy when you receive itRead your policy when you receive itRead your policy when you receive it

� 15 day free look up period15 day free look up period15 day free look up period15 day free look up period

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WHERE TO BUY LIFE INSURANCE?

�Individual Agents -

�Corporate Agents -

�Bancassurance -

�Insurance Brokers

�Directly from companies

�Branches

�Online from websites

INFORMATION FOR EXISTING POLICY HOLDERS

� Always remember your premium due dates to avoid a policy lapse. Always remember your premium due dates to avoid a policy lapse. Always remember your premium due dates to avoid a policy lapse. Always remember your premium due dates to avoid a policy lapse.

� Always insist on a premium receipt as a proof of payment.Always insist on a premium receipt as a proof of payment.Always insist on a premium receipt as a proof of payment.Always insist on a premium receipt as a proof of payment.

� Ensure your age is stated correctly in the proposal. If it is incorrect, get it rectified at Ensure your age is stated correctly in the proposal. If it is incorrect, get it rectified at Ensure your age is stated correctly in the proposal. If it is incorrect, get it rectified at Ensure your age is stated correctly in the proposal. If it is incorrect, get it rectified at the earliestthe earliestthe earliestthe earliest

� Keep your policy in a safe place until the life insurance policy money is received.Keep your policy in a safe place until the life insurance policy money is received.Keep your policy in a safe place until the life insurance policy money is received.Keep your policy in a safe place until the life insurance policy money is received.

� Always keep the nomination under your policy alive and he/she should be aware Always keep the nomination under your policy alive and he/she should be aware Always keep the nomination under your policy alive and he/she should be aware Always keep the nomination under your policy alive and he/she should be aware about it. about it. about it. about it.

� Always intimate change in address to insurance company immediatelyAlways intimate change in address to insurance company immediatelyAlways intimate change in address to insurance company immediatelyAlways intimate change in address to insurance company immediately

� Always clarify any doubts you have about your policy with the life insurance company Always clarify any doubts you have about your policy with the life insurance company Always clarify any doubts you have about your policy with the life insurance company Always clarify any doubts you have about your policy with the life insurance company / insurance advisor./ insurance advisor./ insurance advisor./ insurance advisor.

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5 COMMON LIFE INSURANCE MISTAKES

� Treating life insurance as a savings avenue

� Trusting your life insurance agent / advisor completely

� Considering life insurance as a one time activity

� Buying the wrong product (99% are victim of this) - Child plan,

Life insurance for non-earning spouse

� Buy Life insurance purely to save Tax

FILING A LIFE INSURANCE CLAIM

� Maturity claim� Fill the claim form

� Original policy bond

� Death claim� Claim intimation/notificationClaim intimation/notificationClaim intimation/notificationClaim intimation/notification

� Contact the respective life insurance branch office.

� Contact your insurance advisor

� Call the respective Customer Helpline

� Documents required for claim processingDocuments required for claim processingDocuments required for claim processingDocuments required for claim processing� 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)

� Settlement of Claim (within 30 days of receipt of all documents)Settlement of Claim (within 30 days of receipt of all documents)Settlement of Claim (within 30 days of receipt of all documents)Settlement of Claim (within 30 days of receipt of all documents)

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PROTECTION OF POLICY HOLDERS INTEREST

Note:-

There are 12 ombudsman Centre's in India.

The companies cannot challenge the decision of the ombudsman

Register a Complaint with the Toll free number /Register a Complaint with the Toll free number /Register a Complaint with the Toll free number /Register a Complaint with the Toll free number /helpline of the Companyhelpline of the Companyhelpline of the Companyhelpline of the Company

Complaint to the Grievance officer of the companyComplaint to the Grievance officer of the companyComplaint to the Grievance officer of the companyComplaint to the Grievance officer of the company

ComplaintComplaintComplaintComplaint to Council / IRDA / Ombudsmanto Council / IRDA / Ombudsmanto Council / IRDA / Ombudsmanto Council / IRDA / Ombudsman

Grievance Redressal Mechanism

�No time

�Agent’s Job

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GENERAL INSURANCE

TYPES OF GENERAL INSURANCE

� Motor InsuranceMotor InsuranceMotor InsuranceMotor Insurance

� Health InsuranceHealth InsuranceHealth InsuranceHealth Insurance

� Fire InsuranceFire InsuranceFire InsuranceFire Insurance

� Travel InsuranceTravel InsuranceTravel InsuranceTravel Insurance

� Home InsuranceHome InsuranceHome InsuranceHome Insurance

� Critical Illness coverCritical Illness coverCritical Illness coverCritical Illness cover

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HEALTH INSURANCE

�Rising medical costsRising medical costsRising medical costsRising medical costs

�Uncertain hospital billsUncertain hospital billsUncertain hospital billsUncertain hospital bills

�Expensive / quality health care servicesExpensive / quality health care servicesExpensive / quality health care servicesExpensive / quality health care services

�Family health insurance at a lesser premiumFamily health insurance at a lesser premiumFamily health insurance at a lesser premiumFamily health insurance at a lesser premium

� Tax benefitTax benefitTax benefitTax benefit

�Changing lifestyle Changing lifestyle Changing lifestyle Changing lifestyle –––– Most Important reasonMost Important reasonMost Important reasonMost Important reason

Why is Health Insurance important?

POOR EATING HABITS RESULTING IN POOR HEALTH

Acidity, Diabetes, High Cholestrol, Obesity and the list goes on………

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EVERY FAMILY HAS ONE……..

HOW MUCH HEALTH INSURANCE COSTS?

Source: www.icicilombard.com

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HEALTH INSURANCE

�Hospitalization Expenses over 24 hoursHospitalization Expenses over 24 hoursHospitalization Expenses over 24 hoursHospitalization Expenses over 24 hours

�Room charges, Medicine & Test Charges, Operation, doctor Room charges, Medicine & Test Charges, Operation, doctor Room charges, Medicine & Test Charges, Operation, doctor Room charges, Medicine & Test Charges, Operation, doctor

fees etc coveredfees etc coveredfees etc coveredfees etc covered

�Family floaters available Family floaters available Family floaters available Family floaters available

�Group mediclaim policyGroup mediclaim policyGroup mediclaim policyGroup mediclaim policy

�Eligible for tax benefits under 80DEligible for tax benefits under 80DEligible for tax benefits under 80DEligible for tax benefits under 80D

�Rs 1 to 5 lakhs cover recommended based on affordability Rs 1 to 5 lakhs cover recommended based on affordability Rs 1 to 5 lakhs cover recommended based on affordability Rs 1 to 5 lakhs cover recommended based on affordability

CRITICAL ILLNESS COVER� Benefit paid immediately on first diagnosis of the covered Major Medical Illnesses Benefit paid immediately on first diagnosis of the covered Major Medical Illnesses Benefit paid immediately on first diagnosis of the covered Major Medical Illnesses Benefit paid immediately on first diagnosis of the covered Major Medical Illnesses and Procedure, Accidental Death /Permanent Total Disablement (PTD) due to and Procedure, Accidental Death /Permanent Total Disablement (PTD) due to and Procedure, Accidental Death /Permanent Total Disablement (PTD) due to and Procedure, Accidental Death /Permanent Total Disablement (PTD) due to accidentaccidentaccidentaccident

� Choose between a cover ofChoose between a cover ofChoose between a cover ofChoose between a cover of 3 Lakh,3 Lakh,3 Lakh,3 Lakh, 6 Lakh or6 Lakh or6 Lakh or6 Lakh or 12 Lakh sum insured and policy 12 Lakh sum insured and policy 12 Lakh sum insured and policy 12 Lakh sum insured and policy duration between 1 year, 3 years or 5 years.duration between 1 year, 3 years or 5 years.duration between 1 year, 3 years or 5 years.duration between 1 year, 3 years or 5 years.

� Major Medical Illness & Procedures :Major Medical Illness & Procedures :Major Medical Illness & Procedures :Major Medical Illness & Procedures :� CancerCancerCancerCancer

� Coronary Artery Bypass Graft SurgeryCoronary Artery Bypass Graft SurgeryCoronary Artery Bypass Graft SurgeryCoronary Artery Bypass Graft Surgery

� Myocardial Infarction (Heart Attack)Myocardial Infarction (Heart Attack)Myocardial Infarction (Heart Attack)Myocardial Infarction (Heart Attack)

� End Stage Renal FailureEnd Stage Renal FailureEnd Stage Renal FailureEnd Stage Renal Failure

� Major Organ TransplantMajor Organ TransplantMajor Organ TransplantMajor Organ Transplant

� StrokeStrokeStrokeStroke

� ParalysisParalysisParalysisParalysis

� Heart Valve Replacement SurgeryHeart Valve Replacement SurgeryHeart Valve Replacement SurgeryHeart Valve Replacement Surgery

� Multiple SclerosisMultiple SclerosisMultiple SclerosisMultiple Sclerosis

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A grim reminder…. Before its too late

IS THIS THE TREND???

Mr Raghu Pillai,

CEO, Future Group

Age - 54 yrs, Heart Attack

Mr R Ravimohan,

Former CEO, Crisil

Age - 52 yrs, Heart Attack

Mr Ranjan Das,

CEO, SAP India

Age - 42 yrs, Cardiac Arrest

Some reasons

�Blackberry’s

�Excessive Travelling

�Peer Pressure

�Easy Lifestyle

9/23/2011

35

CRITICAL ILLNESS CHARGES

STEPS TO BUY A HEALTH INSURANCE

�Pay attention to policy conditionsPay attention to policy conditionsPay attention to policy conditionsPay attention to policy conditions

�Read the exclusions and limitations very carefullyRead the exclusions and limitations very carefullyRead the exclusions and limitations very carefullyRead the exclusions and limitations very carefully

�Compare premium costs, deductibles, coCompare premium costs, deductibles, coCompare premium costs, deductibles, coCompare premium costs, deductibles, co----paymentspaymentspaymentspayments

� Take an informed decisionTake an informed decisionTake an informed decisionTake an informed decision

9/23/2011

36

GET WELL SOON !!!

9/23/2011

37

9/23/2011

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LICENSE TO GOOD HEALTH….

9/23/2011

39

If you have both knowledge & time, then you do notrequire a financial advisor. However, if you donot haveany one of these, then hire someone to do it for you -and be willing to pay for the service. Most of us atsome point have something in our body that needsfixing and we happily pay a doctor to do so, but wehesitate to pay someone to help fix the financialmismatch most of us are born with.

Last but not the least……..

QUESTIONS TO ASK A FINANCIAL PLANNER OR ADVISOR

� What experience do you have?What experience do you have?What experience do you have?What experience do you have?

� What are your qualifications?What are your qualifications?What are your qualifications?What are your qualifications?

� What services do you offer?What services do you offer?What services do you offer?What services do you offer?

� Are you independent of financial product sponsors?Are you independent of financial product sponsors?Are you independent of financial product sponsors?Are you independent of financial product sponsors?

� How much do you typically charge?How much do you typically charge?How much do you typically charge?How much do you typically charge?

� How will I pay for your services?How will I pay for your services?How will I pay for your services?How will I pay for your services?

� Are you licensed by SEBI / IRDA / FPSB ?Are you licensed by SEBI / IRDA / FPSB ?Are you licensed by SEBI / IRDA / FPSB ?Are you licensed by SEBI / IRDA / FPSB ?

� Have you ever been publicly disciplined for any unlawful or Have you ever been publicly disciplined for any unlawful or Have you ever been publicly disciplined for any unlawful or Have you ever been publicly disciplined for any unlawful or unethical actions in your professional career?unethical actions in your professional career?unethical actions in your professional career?unethical actions in your professional career?

9/23/2011

40

SOURCE

� Life Insurance Council, India

� IRDA Annual Report

� Valueresearchonline.com

� Rediff.com

� Outlook Money

� Respective company websites

Special Thanks to:

Mr Virendra Kothari, Etica Wealth Management Pvt Ltd

Mr Nikhil Kothari, Axis Securities Ltd

THANK YOUFor any further information, please contact:For any further information, please contact:For any further information, please contact:For any further information, please contact:

Mr. Gajendra Kothari, CFA, CAIA, ICFAMr. Gajendra Kothari, CFA, CAIA, ICFAMr. Gajendra Kothari, CFA, CAIA, ICFAMr. Gajendra Kothari, CFA, CAIA, ICFAM:+91 98678 24321E: gajendra.kothari @eticawealth.com

Ética Wealth Management Private LimitedÉtica Wealth Management Private LimitedÉtica Wealth Management Private LimitedÉtica Wealth Management Private Limited501, T-39 Sunshine Building,Shastri Nagar, Lokhandwala Complex Road,Andheri West, Mumbai - 400 053Landmark: Suburban Diagnostics, Near Lokhandwala Circle

T: +91 22 2632 9644+91 22 4264 8740

E: [email protected]

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