1. Money Back Policy, Annuity &
Pension, Unit Linked policy
& Jeevan Sathi

2. Group Members

Himadri Gwari 11
Rajpreet Kaur 36
Angad Sandhu 39
Harleen Kaur 53
Laveena Surve 55
Pushkar Khot 60

3. Money Back Policy

 Money Back Plan is a special type of life insurance policy
that falls under Endowment Plans. In Insurance language
it is called Anticipated Endowment Plans and commonly
known as Money Back Policies.
 It simply means that in Money Back Plans, the money
comes back to the Life Insured after a specific interval of
time as Survival Benefit.
 However, if the Life Insured dies during the policy term,
then the Death Benefit would be paid to the nominee and
the policy would be terminated and no further money
would be paid to him on the intervals.

4. Who should buy Money
Back Insurance Policies?

 Money Back Insurance Policies should be taken by
someone who might require money at regular and specific
intervals, like children’s education, etc.
 Also the Death Benefit is guaranteed irrespective of the
Survival Benefits already paid. Thus, if the Life Insured dies
on the year of the policy maturity even after receiving 4
Survival Benefit, the nominee would get the entire Sum
Assured and not a reduced one. You can also save tax as
the premiums paid and the money received in installments
are tax-free.

5. Benefits of Money back
policies

 Money Back Insurance Policies help us to plan our
finances in a very systematic way by guaranteeing a
regular flow of income at fixed stages in our lives.
 A Money Back Insurance Policy can be used
effectively to plan for your child's higher education
or marriage, purchase a car or even to pay the down-
payment for your dream house.

6. Annuities and pension
which an insurance company
 Annuities are a form of pension in
makes a series of periodic payments to a person (annuitant) or his
or her dependents over a number of years (term), in return for the
money paid to the insurance company either in a lump sum or in
installments.
 Annuities start where life insurance ends. It is called the reserve of
life insurance.
 This policy is also useful to those who prefer regular income in old
age.
 In these types of life insurance policies, the insurer agrees to pay
the insured a stipulated sum of money periodically. The purpose
of an annuity is to protect against financial risks as well as provide
money in the form of pension at regular intervals.

7. Basically, there are four kind of pension/annuity plans
from which a person can choose, which depends upon his
personal requirement.
o Guaranteed period annuity
o Life annuity
o Deferred annuities
o Annuity certain

8. Types of pension plans

 Employment-based pensions (retirement plans)
A retirement plan is an arrangement to provide people with an
income during retirement when they are no longer earning a
steady income from employment.
 Social and state pensions
Many countries have created funds for their citizens and
residents to provide income when they retire (or in some cases
become disabled).
 Disability pensions
Some pension plans will provide for members in the event they
suffer a disability. This may take the form of early entry into a
retirement plan for a disabled member below the normal
retirement age.

9. Benefits of Pension Plans
income when we
 All of us are worried about our
retire. Pension Plans, also called Retirement Plans are one of
the safest and surest ways of a trouble-free retirement life.
 Pension Plans are flexible and can be used effectively if
planned out well. On attaining the retirement age, the policy
holder can withdraw 33% of the maturity amount for some
immediate financial needs.
 Pension Plans come in 2 variants - Traditional plans in
which the amount of payout is guaranteed and ULIPs in
which part of the amount paid as premiums every year is
invested in financial instruments which are known to
appreciate greatly over a long period of time.

10. What is unit linked policy?
 is a type of life
 A unit-linked insurance plan (ULIP)
insurance where the cash value of a policy varies according
to the current net asset value of the underlying investment
assets. It allows protection and flexibility in investment,
which are not present in other types of life insurance such as
whole life policies. The premium paid is used to purchase
units in investment assets chosen by the policyholder.
 In India investments in ULIP are covered under Section 80C
of IT Act. The overall limit of permissible deductions under
Section 80C is Rs. 1 Lac. However, the concept of having an
insurance is governed by the Insurance Regulatory and
Development Authority

11. UNIT LINKED POLICIES

 A unit linked policy is a life insurance policy in which the
beneits depend on the performance of a portfolio of shares.
 Each premium paid by the insured person is split.
 A part is used to provide life insurance cover, while the balance
is used to buy units in a unit of Mutual Fund after deduction of
cost, expenses etc.
 In this way, a small investor can benefit from investment in a
managed fund without making a large financial commitment.
 The unit linked policies can go up or down in value as they are
linked to the value of shares.

12. Categories of ULIP
 are divided into the
 Depending on the objective, ULIP
following categories:
 Wealth Plan: These plans are usually of shorter time frame
around 10-15 years and focus on getting higher returns to
create a good maturity amount.
 Child Plan: These plans are for securing child’s financial
future. The money is invested to ensure that the child’s future
financial goals like education are secured. Along with it, death
benefit in most child plan is very comprehensive so that
child’s future is not compromised.
 Pension Plan: These plans focus on creating a corpus amount
so that life insured gets regular pension after retirement.

13. Who should buy ULIP
Policies?

If you are comfortable with the notion of taking
risks on the equity, debt market etc. Ulip’s are
transparent and flexible.
If you are willing to regularly monitor the fund.
If you are willing to take market associated risk.

14. Benefits of unit linked
policy

 Unit linked Insurance Plan, better known as ULIP is
a type of life insurance plan that pro-vides benefits
of protection against risks and flexibility to manage
the investments of pre-miums.
 ULIPs work best when invested for a longer period
of time with multiple investment options.
 ULIPs are very flexible.

15. Things to consider before
buying an ULIP

Investment Option
Charges
Loyalty Additions
Features
Riders

16. How to discontinue the
ULIP?

 Before 5 years: There is lock in period of 5 years in a
ULIP. That is if you cancel ULIP, the amount will be
provided to you only after 5 years from date of
commencement of life insurance policy. If you cancel
ULIP within 5 years, then the fund value will be
shifted to discontinued fund which will grow at 3.5%
compounded annually. After 5 years, the fund value
will be provided to you.
 After 5 years: You can withdraw complete amount
after 5 policy years.

17. Jeevan sathi

 A double cover joint life plan, Jeevan Sathi is an endowment
assurance policy, but with dual benefits.
 Unlike many other joint life plans that terminate upon the
death of any one partner, Jeevan Sathi not only provides
financial security against the death of either partner, but also
ensures a lump-sum maturity amount on survival of either or
both the partners at the end of the policy term.
 This policy was started issuing with effect from July 1985 and
can be obtained in the joint lives of husband and wife.
 If the lives (husband and wife) survive till maturity, the sum
assured together with bonus declared by the LIC from time
to time is also paid.

18. Key features

 Unique Joint Life Insurance Policy from India’s No.1
Insurance company
 Tax benefit
 You can pay monthly, quarterly, half yearly or yearly
premiums.
 Maturity Benefits:
 Sum assured plus Bonus are given, if husband and
wife are alive upto maturity period.

19. Conditions and Requirement:
Min. age at entry 20
Max. age at entry 50
Max. Maturity age 70
Min. Term 15
Max. Term 30
Accident benefits per 1000 SA Rs. 2 extra
Min. S.A. Rs 50000
Max. S.A. No Limit
Modes allowed all
SA in multiples Rs 5000
Revival yes
Surrender of Policy yes
Housing Loan yes

20. Death Benefits

 Future premiums are waived and survivor gets Sum
Assured immediately on the death of Husband/wife.
 He/She gets Sum Assured again with full bonus, if
the survivor (husband/wife) survives till maturity.
 Sum Assured plus Bonus is paid till that time to the
nominee, if the survivor also dies before maturity.

21. Other benefits
 Maturity Benefit

If one or both the lives survive till the end of the policy
term, Sum Assured along with all bonuses declared up to
maturity date is payable in a lump sum.
 Supplementary/Extra Benefits
These are the optional benefits that can be added to your
basic plan for extra protection/option. An additional
premium is required to be paid for these benefits.
 Survival benefits
If one or both the lives survive to the maturity date, the
sum assured, along with the accumulated bonus, is
payable.