Marketing Management OF

financial Services Project

A Report on LIFE INSURANCE

Submitted to:
Mr.Sandeep Parmar
Submitted By:
Ankita Saini
Madhur Agarwal
Mansi Segan
Nishant Golwelkar
Sandeep Jakhar
Sumedha Bhatnagar
Swastik Shrivastava
Group -7
Section –D
Introduction to life Insurance
 Life insurance offers a way to replace the loss of
income that occurs when someone dies (usually the person who produces
the majority of income in a family situation). It is a contract between you as
the insured person and the company or "carrier" that is providing the
insurance. If you die while the contract is in force, the insurance company
pays a specified sum of money free of income tax — "cash benefits" — to
the person or persons you name as beneficiaries.

Life insurance - Purchase policy; the insurance company promises to pay

a lump sum at the time of the policy holder’s death, or sometimes while
they are still alive.
Purpose of life insurance: Protect someone who depends on you from
financial loss related to your death.
Other reasons are.
✔ To leave as part of your estate.
✔ To save money for retirement or for income or education for children.
✔ To make charitable bequests upon your death.
✔ To pay off a mortgage or debts at the time of death.

The Principle of Life Insurance

• Mortality tables provide odds on your dying, based on your age and
sex.
• Your premium is based on your life expectancy and the projections for
the payouts for persons who die.

Determining Your Life Insurance Needs –

Ask Yourself...
 Do you need life insurance?
– Do you have people you need to protect financially?
– Do you have a partner who works?
 What are your objectives for life insurance?
– How much money do you want to leave your dependents should
you die today?
– When do you want to retire, and what income do you think you’ll
need?
– How much will you be able to pay for your insurance program?
Buying Life Insurance
 When you buy life insurance, you want coverage that fits your needs
and your budget.

 Decide how much you need, for how long and what you can afford.

 Examine what kinds of policies are available to meet your needs

and pick the one that best suits you.

 Compare what different companies charge for the same kind of

policy and amount of insurance you want.

Finding a Low Cost Policy

✔ Do premiums or benefits vary from year to year?
✔ How much cash value builds under the policy?
✔ Are premiums, benefits or interest rates guaranteed or subject
✔ to change by the company?
✔ What is the effect of interest on money paid and received at
✔ different times on the policy?

Good Life Insurance

A good life insurance program does more than just replace the
loss of income that occurs if you die. It should also provide money to cover
the new costs that arise after your death — funeral expenses, taxes, probate
costs, the need for housekeepers and child care, and so on. And these cash
benefits should provide for your family's future needs as well, including
college education for your children and part or all of your spouse's
retirement needs. In almost all cases, your beneficiary can use the cash
benefits in the way he or she sees fit, without restriction.

Estimating Your Life Insurance Requirements

 The Easy Method
○ Typically, you will need 70% of your salary for seven years while
your family adjusts.

The DINK (dual income, no kids) Method

The “Nonworking” Spouse Method

○ Multiply the number of years until the youngest child reaches 18 by
$10,000.

The “Family Need” Method

○ More thorough than the first three because it also considers
employer provided insurance, Social Security benefits, and income
and assets.

Two Types of Life Insurance Companies

1. Stock life insurance companies are owned by the shareholders.
– 95% are of this type.
– Sell non-participating policies.
– If you want to pay the same premium each year, choose a non-
participating policy with its guaranteed premiums.

1. Mutual life insurance companies

– Owned by the policyholders.
– 5% of policies are from this type of company.
– With participating policies the premiums are higher than non-
participating policies. However, part of the premium is refunded
to the policyholders annually. This is called the policy dividend.

Type of Life Insurance Policies

 TERM LIFE INSURANCE

Protection for a specified period of time.
If you stop paying premiums, coverage stops.
A renewability option means that at the end of the term you can
renew the policy without having a physical.
 Conversion option allows you to exchange your term policy to a
whole life policy without having a physical.
With decreasing term insurance your premium stays the same,
but the amount of coverage decreases as you age.

A term insurance policy is a pure risk cover for a specified period of time.
What this means is that the sum assured is payable only if the policyholder
dies within the policy term. For instance, if a person buys Rs 2 lakh policy for
15-years, his family is entitled to the money if he dies within that 15-year
period.

What if he survives the 15-year period? Well, then he is not entitled to any
payment; the insurance company keeps the entire premium paid during the
15-year period.

So, there is no element of savings or investment in such a policy. It is a 100

per cent risk cover. It simply means that a person pays a certain premium to
protect his family against his sudden death. He forfeits the amount if he
outlives the period of the policy. This explains why the Term Insurance Policy
comes at the lowest cost.

 WHOLE LIFE INSURANCE (Straight

Life)
You pay a premium as long as you live.
Amount of premium depends on your age when you start the
policy.
Provides death benefits and accumulates a cash value.
You can borrow against the cash value or draw it out at
retirement.
Look carefully at the rate of return your money earns.

Are there choices within whole life insurance?

1) Traditional whole life insurance policy- gives you a guaranteed

minimum rate of return on your cash value portion.

2) Interest-sensitive whole life insurance policy -gives a variable rate

on your cash value portion, similar to an adjustable rate mortgage. With
 this you can have more flexibility with your life insurance policy such as
increasing your death benefit without raising your premiums depending
on the economy and the rate of return on your cash value portion.

3) Single-premium -is for someone who has a large sum of money and
would like to purchase a policy up front. Like other whole life insurance
options, single-premium whole life insurance accrues cash value and has
the same tax shelter on returns.

What are the benefits of choosing a whole life insurance policy over
other types of life insurance policies?

Unlike term life insurance, a portion of your premium money goes toward
your cash value which in turn could pay off your entire policy only after a
few years. Also, your premium will remain constant during the time you are
covered unless you choose otherwise. And, unless you make a change to
your whole life insurance policy, you have lifelong coverage with no future
medical exams. Whole life is also a good choice because of the tax savings.

 ENDOWMENT INSURANCE POLICIES

Pay a sum or income to you if you live to a certain age. If you die before the
specified age, the death benefit is paid to the person named as the beneficiary.

Provides a permanent sum of money (called a face amount or death benefit)

to your beneficiaries- even if you die before the maturity date of the policy.
OR it will pay you if you live when the policy pays out (endows).

This is similar to whole life insurance, except: if used before the endowment
period, the life insurance ends and the face value becomes a living benefit.

Another area where they differ is with the period of time when it matures. A
whole life insurance policy is generally set up to mature at age 100. But with
an endowment you can pay the premiums well before the final date, for a
limited period of time, or in a lump sum; and the cash value builds up faster
since the funds are intended to be used while the insured is alive. But the
premium is considerably more expensive than with an ordinary straight life
insurance policy.
The sooner a policy endows, the higher the premium will be. The
endowment period can be set for ten years, twenty years or to age 65.

ULIP LIFE INSURANCE

The Unit Trust of India, in collaboration with Life Insurance Corporation and
the General Insurance Corporation (GIC) of India has formulated the ULIP,
which is an insurance plan with:

• Security of capital
• High returns
• Free accident cover
• Life insurance cover
• Tax rebate
• Maturity bonus

Any resident of India who is above 18 years of age can possess ULIP.
People who are less than 55 years and 6 months of age can join the plan
for 10 years and those less than 50 years and 6 months can join for 15
years. In this plan premium is payable half yearly. This amount is used to
pay a small premium to the Life Insurance Corporation and the rest is
invested in units which earns an income and is re-invested every year.
The extent of life insurance cover is equal to the target amount secured
under the plan.

ULIP provides multiple benefits to the consumer

✔ Life protection
✔ Investment and Savings
✔ Flexibility
✔ Adjustable Life Cover
✔ Investment Options
✔ Transparency
✔ Options to take additional cover against
✔ Death due to accident
✔ Disability
✔ Critical Illness
✔ Surgeries
✔ Liquidity
✔ Tax planning
Few Other Types of Insurance Policies
 Limited payment policy

Pay premiums for a stipulated period, usually 20 or 30 years, or

until you reach a specified age (65).
Your policy then becomes “paid up” and you remain insured for
life.

 Variable life policy

Minimum death benefit guaranteed, but the death benefit can be

greater than the minimum depending on earnings of the dollars
invested in a separate stock or bond fund.

 Adjustable life policy

A whole life insurance policy, but you can change your policy as
your needs change. For example, you can change your premium
payments or the period of coverage.

 Universal life - gives you more direct control

Lets you pay premiums at any time in almost any amount. The
amount of insurance can be changed more easily than a
traditional policy.
The increase in the cash value of the policy reflects the interest
earned on short-term investments.

 Group life insurance

Term insurance.
Often provided by an employer.
No physical is required.

 Credit life insurance

 Debts such as car loan is paid off if you die.
Also protects lenders.
Expensive protection.

Life Insurance Contract Provisions

Naming your beneficiary, and contingent beneficiaries.

Incontestability clause says that after the policy has been in force for a
specified period, the company can’t dispute its validity for any reason.
Length of grace period for late payments.
Reinstatement of a lapsed policy if it has not been turned in for cash.
No forfeitureallows you to keep accrued benefits if you drop the
policy.
Misstatement of age provision.
Suicide clause during first two years.
Policy loan provision to borrow against cash value.
Automatic premium loans.
Uses the accumulated cash value to pay the premium if you do not
pay it during the grace period.
A rider to a policy modifies the coverage by adding or excluding
conditions or altering benefits.
Waiver of premium disability benefit.
Accidental death benefit - double indemnity.
Guaranteed insurability option.
Cost of living protection.
Accelerated benefits, also called living benefits, pay to those who are
terminally ill before they die.
Second-to-die option, also called survivorship, insures two lives.

Life Insurance in India

Life Insurance in India was nationalized by incorporating Life
Insurance
Corporation (LIC) in 1956. All private life insurance companies at that time
were taken over by LIC.
 In 1993 the Government of Republic of India appointed RN Malhotra
Committee to lay down a road map for privatization of the life insurance
sector.
While the committee submitted its report in 1994, it took another six
years before the enabling legislation was passed in the year 2000,
legislation amending the Insurance Act of 1938 and legislating the Insurance
Regulatory and Development Authority Act of 2000. The same year that the
newly appointed insurance regulator - Insurance Regulatory and
Development Authority IRDA – started issuing licenses to private life
insurers.
LIST OF LIFE INSURERS (AS OF SEPT, 2006)
Apart from Life Insurance Corporation, the public sector life insurer, there
are 14
other private sector life insurers, most of them joint ventures between Indian
groups and global insurance giants.

Life insurer in public sector

1. Life Insurance Corporation of India

Life insurers in private sector

1. Bajaj Allianz Life
2. Tata AIG Life
3. ICICI Prudential Life Insurance
4. HDFC Standard Life
5. Birla Sunlife
6. SBI Life Insurance
7. Kotak Mahindra Old Mutual Life Insurance
8. Aviva Life Insurance
9. Reliance Life Insurance Company Limited - Formerly known as AMP
10.Sanmar LIC
11.Metlife India Life Insurance
12.ING Vysya Life Insurance
13.Max Newyork Life Insurance
14.Sahara Life Insurance - Now they are not into business
15.Shriram Life Insurance
16.Bharti AXA Life Insurance Co Ltd

AGENTS Role
The main responsibility is to identify the prospective policy holder. To
convince him & make him understands Life Insurance. Thus, selling a life
insurance policy by helping him to enter into a contract with Life Insurance
Company.
Can I Become An Agent?
You certainly can if -
• You are outgoing and like meeting people
• You are ambitious to own a business
• You only want your clients to be your bosses
• And you want to decide your working hours
Unlimited earning potential; a clear career path; all round
support through exclusive advertising, your own in-house consultant, and
world-class training:
• A comprehensive benefit package
• Training
• Careers
• Rewards & Recognition
They are a key source of business for the organization, and are the
continuing link with our clients. That is why; we take a lot of care in
recruiting and developing our agency force, so that we continue to set
higher standards of quality in service and salesmanship. To cater to the
needs of the knowledge-oriented marketplace, we look for graduates who
are service-oriented, good communicators and enjoy meeting new people.
Prior sales experience is an added benefit.

Some of the Qualities we seek are:

• Self-motivation
• A master communicator
• A go-getter
• A graduate

What does an LIC agent do?

• They are mostly first contact and help individuals, families, and
businesses select insurance policies that provide the best protection
for their lives, health, and property.
• Insurance sales agents who work exclusively for one insurance
company are referred to as captive agents.
 • Insurance sales agents, commonly referred to as “producers” in the
insurance industry, sell one or more types of insurance, such as
property and casualty, life, health, disability, and long-term care
• Life insurance agents specialize in selling policies that pay
beneficiaries when a policyholder dies.

People Involved in the Insurance Policy Sale

The People Involved In these processes are:-

1. Actuarial - An actuary is a business professional who deals with the

financial impact of risk and uncertainty. They are The People who
decide the premium to be paid on a policy based on various factors
like demographics and others. They Constitute .5% of the total people
involved.

2. Underwriters – They are the people involved in the checking of the

data mentioned by an individual in the policy. They also conduct a
health check. After this they offer various policies based on the
outcomes of these checks. They constitute 1.5% of the total people in
the process.

3. Sales People – The Major chunk of people lies in the sales. They are
the people who have a direct contact with the actual customer and try
to convince them to purchase a policy explaining the various feature
of the policy. They constitute the most, that is 98% of the total people
involved in the process.

Rated Policy
Statement in which a life insurance applicant is charged a higher-than-
standard premium to reflect a unique impairment, occupation, or hobby,
such as a history of heart disease, a circus performer, or a sky diver.

MAX NEW YORK LIFE INSURANCE

“KARO ZYAADA KA IRAADA”

Max New York Life Insurance Company Ltd. is a joint venture between New
York Life; a Fortune 100 company and Max India Limited; one of India's
leading multi-business corporations.

Its vision to be the Most Admired Life Insurance Company in India, it has
developed a strong corporate governance model based on the core values of
excellence, honesty, knowledge, caring, integrity and teamwork.

The strategy is to establish itself as a Trusted Life Insurance Specialist

through a quality approach to business.

Various Plans at Max New York Life

Insurance
Protection Plans
Life is full of surprises. Unexpected events that strike without warning can
disrupt the smooth rhythm of life. You must be prepared at all times. As the
primary earning member, you need to make sure that your family is never
lacking in anything even if you are taken away from them forever. Do your
best today to ensure that your family can always enjoy a comfortable
lifestyle. In double income families, both spouses should get adequate life
covers especially if there are dependent children involved. We have plans
that guarantee maximum protection at a low cost.
Children Plans
Your parenting is perfect but is your planning adequate? Are you thinking
beyond the immediate to the future, about higher education and
professional courses, in India and abroad? Many children are keen to pursue
unconventional careers. Are you in tune with their aspirations and passions?
As parents you would never let money come in the way of your children and
the fulfillment of their true potential. Our plans will help build the corpus that
allows your children to dream big and soar high.
Investment Plans
Building a nest egg is about aggregating surplus amounts regularly to allow
them to grow into a sizeable sum. Investments should be aligned to specific,
long-term goals. Luxury car, foreign holiday or dream house, create your
own wish list and make it come true. Your dreams are in your hands. Every
move that you make today will bring you a step closer to your goals. Our
Investment Plans offer the dual benefit of protection and market-linked
returns with the flexibility to choose the premium and determine the market
exposure.

Retirement Plans
Let your golden years be the most precious of your life, full of freedom and
choice. A time to pursue your hobbies, travel and enjoy the good life. You
will never miss your salary cheque or be constrained by rising inflation. Even
as you work hard to make a better today, it is up to you to create a superior
tomorrow. If you want to sustain your current lifestyle even after you stop
working, make that money work for you. Our Retirement Plans will keep you
comfortable and content, and let you live the life you deserve.

Health Plans
Do you know the cost of healthcare has climbed faster than inflation?
Medical costs can be a big drain on finances. A medical crisis can strike
anyone, anytime and may even force an individual to dip into savings to
meet these sudden and steep costs. Such an eventuality could delay or
destroy a cherished financial goal. No wonder, health is wealth. The health
of every member of the family is precious and you need to safeguard it as a
priority. Use our Health Plans to make sure your family stays fit and fine.

Savings Plans
Is your money working for you? Clearly not, if it is lying idle in multiple bank
accounts. We will instill the discipline of investment through force of habit as
you park your money for protection and growth to meet your needs over
your lifetime. Choose a plan that matches your needs and budget. Our dual
benefit saving plans recognize your need for all round financial protection,
and include a life cover that will protect you till the last day.
Emerging Market Plans
We are conscious of our social responsibility to serve the financially
vulnerable sections of society. We have created specialized Emerging
Market Plans to meet the particular needs of customers in rural areas. The
ticket size has been kept low, the premiums are affordable and the
procedures are simple. Customers in rural areas can now find a plan to meet
their unique requirements.

Strategic Products Plans

Most people desire a carefree life. They want to be happy and comfortable
at all times. But needs keep evolving and you must always be one step
ahead. Our Strategic Products Plans will meet your special needs and are
available through additional distribution channels. You can choose a plan to
meet the planned events and unforeseen incidents in your life.

Group Plans
People are the most valuable asset of any organization. Organizations have
to innovate newer forms of compensation to retain talented employees. Pay
and perks are all very fine but an organization needs to show employees
that it cares. Ensuring the financial well being of employees and their
families will earn an organization their enduring trust and loyalty. Our Group
Plans offer a three-in-one advantage, as they are a powerful tool for
motivation, reward and retention, in these times of high attrition.

PAYMENT OPTIONS
Premium Payment Options Customers - Policy Renewals Options
Renewing an insurance policy has never been so easy. Choose from any of
the 10 options listed below to pay your premium. We will send the premium
receipt to your mailing address.
The Ways of
making

Premium Payments

MAX VIJAY
Max Vijay is not just another life insurance policy of MNYL; Max Vijay is the
symbol of victory of the common man, a beacon for a better tomorrow. We
believe that true win for India lies in encouraging people to save their hard
earned money, a small contribution that would go on to change their future.
While the underlying reality remains that “Money…It just slips through” Max
Vijay initiative will empower people, provide hope and will offer insurance
cum saving solutions to the under-served packed in the form of an Insurance
Savings Box (Beema Gullak)

Max New York Life Insurance Company Limited proudly presents a

unique Life Insurance policy “Max Vijay” which is–
• About making better tomorrow possible
• A Clear sight of goal - Fulfillment of dream
• A belief in the path to achieve the goal, and
• “Vijay” is the Triumph of human life
 LIFE INSURANCE COROPERATION
OF INDIA (LIC)
“Zindagi ke saath bhi zindagi ke baad bhi”

Mission
"Explore and enhance the quality of life of people through
financial security by providing products and services of
aspired attributes with competitive returns, and by
rendering resources for economic development."

Vision
"A trans-nationally competitive financial conglomerate of
significance to societies and Pride of India."

Insurance Plans
As individuals it is inherent to differ. Each individual’s insurance needs and
requirements are different from that of the others. LICs Insurance Plans are
policies that talk to you individually and give you the most suitable options
that can fit your requirement.

• Children plans
• Plans for handicapped
• Endowment Assurance Plans
• Plans for High Worth Individuals
• Money Back Plans
• Whole Life Plans
• Term Insurance Plans
• Joint Life Plans
• Decreasing Term Assurance To cover home loan Repayment

Pension Plans
Pension Plans are Individual Plans that gaze into your future and foresee
financial stability during your old age. These policies are most suited for
senior citizens and those planning a secure future, so that you never give up
on the best things in life. eg. Jeevan Nidhi

Special Plans
LIC’s Special Plans are not plans but opportunities that knock on your door
once in a lifetime. These plans are a perfect blend of insurance, investment
and a lifetime of happiness!

• Golden Jubilee Plans

• Special Plans

Group Scheme

Group Insurance Scheme is life insurance protection to groups of people.

This scheme is ideal for employers, associations, societies etc. and allows
you to enjoy group benefits at really low costs.
• Group Scheme
• Social Security Scheme

Unit Plans
Unit plans are investment plans for those who realise the worth of hard-
earned money. These plans help you see your savings yield rich benefits and
help you save tax even if you don't have consistent income. eg. Market
Plus 1

MARKET PLUS Plan

Is a unit linked pension scheme (ULIP) wherein the pension is payable after
a specified period
Features:
1. Option to pay one time premium
2. Critical illness benefits minimum Rs 50,000 and the maximum Rs 10 lakh
3. Accident benefits from Rs 25,000 up to a maximum of Rs 50 lakh.
4. Switch from one type of fund to another up to four times a year.
5. Premium top up.
6. Policy can be taken with or without risk cover.
7. Net Asset Value (NAV) declared on a daily basis.

Benefits:
A) On Vesting:

On vesting of the policy, the Fund Value will be utilized to provide a pension
based on the then prevailing Annuity rates. An option to commute up to one
third of the payable benefit in a lump sum is available.

B) On Death:
In event of the unfortunate death of the policy holder the Fund Value along
with the Riders, if any, will be payable in a lump sum or as a pension.

Fund Types:
1. Bond Fund
2. Secured Fund
3. Balanced Fund
4. Growth Fund

Change In Fund Type (Switch)

The plan also allows a policy holder to switch from one type of fund to
another up to four times a year, free of charge.

Options

Three attractive benefits, viz. –

• Life Cover

• Accident Benefit
 • Critical Illness Benefit

are available as options or riders. Life option is available within certain

limits depending on the age at entry of the life assured. The other options
are available to all proposers who have opted for Life Cover. The quantum of
the risk covers can also be reduced; subject to the minimum limits, once a
year. A policy can be taken without any of the riders also.

Revival

An attractive feature of the plan is that provided the premiums have been
paid for a minimum period of three years, all the riders under the policy will
continue for a period of two years from the due date of first unpaid premium
by deduction of relevant charges from the policy fund. This period of two
years is called the “Revival Period”. Further, if premiums have been paid for
a minimum period of three years, revival can be effected merely by paying
the arrears of premium, within the Revival Period.

Payment of Premiums

Premiums can be paid in a lump sum (single premium) and also by

monthly(ECS), quarterly, half-yearly and yearly modes.

Payment Options
Payment at cash counter - Online Payment Gateway is LIC’s initiative to
provide you with on demand service within a few clicks! You can now have
many of the functionalities that were available only at a branch office, online
at your fingertips.

The payment gateway (PG) initiative is an important component of the offer.

It provides for real-time payment of renewal premium-dues through the
portal. This functionality is available only to registered customers who have
enrolled their policies.
You can pay LIC premiums using Net Banking accounts with any of
the following banks:-
• Bank of India
 • Union Bank of India
• Punjab National Bank
• State Bank of India
• State Bank of Indore
• HDFC Bank
• ICICI Bank
• Axis Bank
• Citibank
• IDBI Bank
• Centurion Bank of Punjab (erstwhile Centurion Bank)
• Centurion Bank of Punjab (erstwhile Bank of Punjab)
• IndusInd Bank
• ABN AMRO Bank
• Kotak Bank
• Bank of Baroda
• Bank of Baroda - Retail NetBanking
• Bank of Baroda - Corporate NetBanking
• State Bank of Patiala
• State Bank of Bikaner & Jaipur
• State Bank of Travancore
• City Union Bank
• Indian Overseas Bank
• Karnataka Bank
• Oriental Bank of Commerce
• State Bank of Hyderabad
• State Bank of Mysore
• State Bank of Saurashtra
• South Indian Bank
• Yes Bank
NOTE: This facility is available for all non-ULIP policies.
Credit card payments are not accepted under this payment facility.
Payment through alternate channels:- To pay your premiums
through Internet, choose among any of the following service
providers:
Authorised Banks:-

HDFC Bank
ICICI Bank
Bank of Punjab
UTI Bank
Federal Bank
Corporation Bank
Citibank

Authorized Service Providers (available only in select cities):-

BillJunction.com
BillDesk.com

TAX BENEFITS
Tax Benefits available for various Life Insurance plans.

The aggregate amount of deduction under all the relevant sections viz.
section 80C, section 80CCC and section 80CCD shall not, exceed
Rs.1 Lakh

1) Deduction from Income for payment of Premium (Sec. 80C).

(a) Life Insurance premia:

The insurance premia paid for a policy is eligible for deduction. The
premium paid should not be in excess of 20% of capital sum assured.

(b) Contribution to Deferred Annuity Plans:

The premia paid for a Deferred Annuity; provided such contract does
not contain a provision to exercise an option by the insured to
received a cash payment in lieu of the payment of annuity is eligible
for deduction.

(c) Contribution to Pension/Annuity Plans:

Contribution to New Jeevan Dhara-I and New Jeevan Akshay-V
Schemes of LIC are qualified for rebate under this section.

1) Income tax exemption on Maturity/Death Claims proceeds under

Section 10(10D)
All the benefits payable under a Life Insurance policy are tax free. However
in cases the premium paid in excess of 20% of the capital sum assured
within a year, benefits paid excess of premiums will be taxable. The benefits
from a key man Insurance policy and any sum received under Sec 80DD,
Sub-section (3) are also taxable.

2) Jeevan Nidhi Plan & New Jeevan Suraksha - I Plan (U/s. 80CCC)
Amounts paid from the taxable income to premiums of the above
annuity are deductible.

3) Deduction under section 80D

Medical Premium paid for a Health Insurance policy is deductible to the
extent of Rs. 15000 for an assessee and/or his family members’ policy/s. A
separate exemption to the extent of Rs. 15,000 for premiums paid for
an assessee’s parents is also available. If any one or both of the parents are
Senior citizens, then an enhanced exemption limit of Rs. 20,000 is available.
Section 80D also covers payment of premium exclusively for Critical Illness
Rider.

5) Jeevan Aadhar Plan (Sec.80DD)

Premium paid for LIC’s Jeevan Aadhar Plan (for the maintenance of an
handicapped dependent) is eligible for deduction from the total income to
the extent of Rs.50,000 and to the extent of Rs.75,000/- where handicapped
dependent is suffering from specified severe disability.

6) Exemption in respect of commutation of pension under Jeevan

Suraksha & Jeevan Nidhi Plans. (Section 10(10A):
A payment received by way of commutation of pension from Jeevan
Suraksha & Jeevan Nidhi Annuity plans is exempt from tax

MARKETING LIFE INSURANCE

An Introduction To Life Insurance Marketing

Life Insurance Marketing is one of the most strenuous jobs for those who are involved in the
insurance marketing.. It is because of the ever lasting conflict between the insurance companies
which want to profit the most and the insured person who wants to get as much compensation as
possible from the insurance company. Commissions for the Life Insurance companies are very
high and they seldom make profits out of the policies. Also the insurance policy needs to be
transparent so that the potential customer understands it totally and should not feel that they
have been treated unfairly by the insurance company.

Reasons For Life Insurance Marketing

The Life insurance companies were paid very little premiums by young children or healthy
people and thus the scope for profit was very small and those who paid high rates of premium
were the older beings who died and the Life insurance companies compensate for that. However
nowadays the Life insurance premiums are almost the same for an young adult and an old
person who just had a major operation.

As the Life Insurance Marketing Companies already deals with this type of a scenario, what
one can do is to change the public perception about the Life insurance companies. One can
connect himself or herself with companies whose workers need a plan for Life Insurance. One
can also go to crowded places and advertise for the Life insurance company. The Life insurance
companies also offer fliers and hanging banners. One can also offer free Life check in a reputed
place to the insured for at least once. One should always give the life insurance policy holders
existing a chance to prefer the marketing techniques that the insurance company is presenting. If
the policy holder does this at a regular basis then the company has a high chance of succeeding.

This is making the competition much tougher for the Life insurance companies as most of the
companies offer similar types of premiums and facilities. So it has become very important for
the life insurance companies to concentrate on Life Insurance Marketing and attract as many
people as possible towards their company.

The Life Insurance Companies prefer to go for Group Life Insurance for a group of people from
a particular company or a family so that they get a group of customers and even if they
compensate for some of them for various reasons they usually make it up with other's premiums.
They also get less papers to control and also they provide better facilities for their clients. So to
promote this type of policy they need to have social and industrial connections. Life Insurance
market helps developing that. Even for other policies like term life insurance and permanent life
insurance one needs to be aware of making people realize the profits of the policy by various
means provided by marketing agencies.

So before going for a Life Insurance Marketing one actually needs to know the market target
and the desires of the people who are actually seen as potential insurance customers. The
confusion about the way a Life Insurance Marketing conductor can draw the potential
Insurance holder's attention evaporates fast if he knows his targets and aims clearly. So, it is
important to conduct a sound survey and then attract people.

Life Insurance Marketing Strategies

• A very common way to promote a Life insurance company through Life Insurance
Marketing is to make the name of the company familiar to others by means of television
 commercials, handling out pamphlets, hanging banners in populated areas and by
providing exciting offers.

• Telephone marketing is another way of Life Insurance Marketing. One can see the
telephone companies send messages about various offers and they even make phone
calls. Web Insurance Marketing is another good strategy to promote insurance policies.
The pop ups that one sees while using Internet are actually a very effective way of
sending messages across the potential insurance customers.

• One should listen to the existing Life Insurance Policy Holders as well as the potential
Life insurance policy holders and listen to what people who actually matters have to say.
One common problem that the insured persons face is that the insurance companies do
not inform its clients about the hike in the premium rates. These things should be kept in
mind. Not only that, a client should be informed about everything related to his policy
and the Life insurance company should keep the transparency as much as possible.

• Community Life Insurance Marketing is another different way to get promotion and a
high recognition for the Life insurance company. Eminent workers join local community
institutions, such as Chamber of Commerce, and by signing up there one can help out
various projects that take place. These kinds of activities and social works on behalf of
the Life insurance company helps the company to get free publicity as their names are
published in news paper and in media also. Doing charity works also helps the Life
insurance companies to come across various people who act as volunteers and can act as
their potential Life insurance clients. People also like to deal with like minded people
and companies and this is how many deals are made.

• A Life Insurance Company should not charge different Life insurance client different
charges for the same policy. This kind of policy gives the Life insurance policy holders
the feeling that they are being treated unfairly and also that the Life insurance companies
are only looking for profits and not the betterment of customer welfare.

• When a Life insurance claim is filed, especially for a very big hefty amount, the Life
insurance company should help out the policy holder in processing out the paperwork.
One should not let bureaucracy enter and make it so difficult for the one making the
claim so that he gives his claim .This has always been a common tactic on the insurance
company's part to avoid paying claims claimed by the policy holder. This though makes
a short term profit for the company but it hurts in the long run as the reputation of the
company is hampered severely.

• People in this Life insurance industry should always try to keep in constant contact with
the existing customers as well. The competition in the insurance market is so fierce today
that no company wants to loose out on a customer to another company. Clients who are
not contacted for a longer period of time normally fail to remain loyal to the insurance
company and look for a different Life insurance company. The company can keep the
records of the client's birthday and days like anniversary and sent him or her small
tokens of love or loyalty at a regular basis. If the company can afford a little more it can
send dinner coupons to the Life insurance policy holder. These things play a major role
and can be considered as an effective Life Insurance Marketing strategy.
• May be the most crucial thing in insurance marketing is to always speak about unity and
honesty while dealing with a business. A Life Insurance Holder can find so many frauds
in various life insurance companies today, that life insurance customers are going for
products and services which are trustworthy to them. Feeling safe is about insurances
and other things are most important as far as the insurance holder is concerned. So, if a
company remains loyal to its customers it will itself do Life Insurance Marketing for
itself. So, only by remaining loyal to its customers the company can do a world of good
to its reputation and this would in itself bring more potential Life Insurance Holders to
the company, because the customers prefer safety more than anything else these days.

THANK YOU