Money Back Policy

Money Back Policy
About the Report
The present study is titled as “A project report on Money Back

Policies”. The study is made with special reference to LIC.
Objective of the study:
• To study about the need for the Life Insurance.

• To study about the Money Back Policies and its types.
• Terms and Conditions of the study.
• Advantages and Disadvantages of the study.
Index
CH. Topic Pg.No
1
Introduction gives introduction to the topic and to the 5-11
report.
Money Back Policy
2
Gives an overview on LIC – A profile of the LIC. 12-19
3
Deals with theoretical view of the topic. 22-26
4
Deals with the different policies by LIC. 27-58
5
Concludes the project study. 59
Money Back Policy
CHAPTER-1
INTRODUCTION
As a measure of providing protection against financial losses caused
by the premature death of breadwinner, life insurance has no parallel
or substitute.
There are two primary reasons why people purchase life insurance.
The better of the two reasons is to provide a death benefit (i.e., some
degree of financial assistance to other persons – usually family
members – when the insured dies). The other reason is to provide
savings, particularly for retirement.
Life insurance is often considered as the best estate planning “fuel”. It

can provide liquidity, help in business planning (“key person”
insurance), and provide substantial death benefits. The value for such
purposes is calculated in a different way, under ‘business insurance’.
The purpose of life insurance for most people is to protect their

beneficiaries’ standard of living in the event of and timely death of a
wage earner. Life insurance ensures that when the life assured dies,
his beneficiaries will have the financial resources in place to protect
the future income and pay for immediate and future financial
obligations. Without life insurance to meet the deficit, families can be
financially burdened or even devastated at the time of bread winners’
death.
Money Back Policy
There are 4 main types of insurance policies: -
1. Term insurance
2. Whole life insurance
3. Endowment
4. Annuities
Money Back Policy
TERM INSURANCE
Term Insurance pays a death benefit to the legal heirs if the person
insured, dies during the term of the policy. Such a policy provides
cover for a specified period only and may be described as temporary
insurance. Term insurance plans offer pure risk cover without any
element of saving. Hence they are the most inexpensive. The sum
assured is payable only if the insured dies during the selected period.
In case the insured does not die during tenure of insurance, nothing is
payable. Term insurance plans could be of the following different
types: -
a) Level term insurance: - Under this plan there is a uniform
premium and benefit throughout the term of the policy. In the

event of death anytime during the term the same sum assured is
payable. Where the term is for over a year, the renewal premium
is the same year. This policy plans is the most popular term
insurance plan mainly because of its simplicity. It is an answer to
neither a temporary need which neither increases nor decreases
over that period. For e.g., a lump sum amount which is due at
certain point time.
b) Decreasing term insurance: - Under this plan the premium is
constant throughout the term but the benefit decreases over a

period. Hence the amount payable on death depends on the
timing of the death even though the premium being paid is
constant. This plan is suited to cases where there is a temporary
need which is reducing. For e.g. where a mortgage loan has to
be repaid this reduces on a monthly or annual basis.
c) Increasing term insurance: - Under this plan the premium as
well as the benefit increase periodically. Te increases could be

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at a fixed percentage or in line with an agreed index this plans is

useful in keeping the benefits in line with the time value of
money so that inflation does not erode the value of the benefits
received.
d) Renewable term insurance: - Though term insurance is for a
fixed period a renewable term policy gives the right to renew the
policy without submitting fresh evidence of health. The new
premium however is increased to reflect the increased age of
the insured.
e) Convertible term insurance: - Such a plan includes a
conversion privilege which gives Proposer the right to convert

the policy to a permanent plan (endowment) without evidence of
the health. If such an option is exercised the premium for the
plan must be the standard rate for such a plan and the actual
age of the life insured on the date of conversion of policy
convertible policy are useful for people who have low income
today and hence cannot afford to pay high premium in the initial
years.
Money Back Policy
WHOLE LIFE INSURANCE
Whole life insurance guarantees a death benefit cover throughout the

course of life provided the required premiums are paid. The
advantages of whole life insurance is that the policy if kept current
covers you over your entire life as opposed to term insurance that
covers you only for a certain term of years. Whole life insurance
policies pay out on the death of the assured whenever it occurs.
Premium may need to be paid throughout the life of the assured or a
lesser limited period.
ENDOWMENT INSURANCE
Pure endowment is a plan where the benefit is payable to the insured

only on survival of the specified term. Combining the features of term
assurance and pure endowment are endowment policies which out
either on the death of the assured whenever it occurs or after a fixed
number of years. Should the insured person survive the term of policy
the policy said to mature. Hence the claim under an endowment policy
may arise either by death or by maturity.
Money Back Policy
ANNUITIES
Annuities are a for of pension in which an insurance company makes

a series of periodic payment to a person (annuitant) or his /her
dependants over a number of years (term) in return for the money
paid to the insurance company either in lump sum or in installment.
Annuities start where life insurance ends. It is called the reverse of life
insurance. Annuities stops on the death of a person where as
theoretically life insurance starts on the death of the assured.
Annuities are of two types-
• Immediate annuity: - Immediate annuity begins at once or

immediately on expiry of the designed period. Immediate annuity
is purchased with a single premium called purchase price this
type of typically purchased when a person reaches retirement
age and has a lump sum to invest. If the person buying the
annuity dies during his legal heirs or nominees get the remaining
installment of the annuity.
• Deferred annuity: - Under a deferred annuity plan the annuity

payments to the annuitant commence at some specified time or
specified age of the annuitant. This type of annuity can be
funded either by a single payment or regular payments. The
annuity payment starts after lapse of a selected period called the
deferment period. Other the above the following two types of
policies are also popular in India.
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Present Scenario
The Government of India liberalized the insurance sector in March

2000 with the passage of the Insurance Regulatory and Development
Authority (IRDA) Bill, lifting all entry restrictions for private players and
allowing foreign players to enter the market with some limits on direct
foreign ownership. Under the current guidelines, there is a 26 percent
equity cap for foreign partners in an insurance company. There is a
proposal to increase this limit to 49 percent. Premium rates of most
general insurance policies come under the purview of the government
appointed Tariff Advisory Committee.
Money Back Policy
CHAPTER-2
LIC – A PROFILE
The history of life insurance in India dates back to 1818 when it was
conceived as a means to provide for English Widows. Interestingly in
those days a higher premium was charged for Indian lives than the
non-Indian lives as Indian lives were considered more risky for
coverage.
With largest number of life insurance policies in force in the world,

Insurance happens to be a mega opportunity in India. It’s a business
growing at the rate of 15-20 per cent annually and presently is of the
order of Rs 450 billion. Together with banking services, it adds about 7
per cent to the country’s GDP. Gross premium collection is nearly 2
per cent of GDP and funds available with LIC for investments are 8
per cent of GDP.
Yet, nearly 80 per cent of Indian population is without life insurance

cover, health insurance and non-life insurance continue to be below
international standards. And this part of the population is also subject
to weak social security and pension systems with hardly any old age
income security. This it self is an indicator that growth potential for the
insurance sector is immense.
A well-developed and evolved insurance sector is needed for

economic development as it provides long term funds for infrastructure
development and at the same time strengthens the risk taking ability.
It is estimated that over the next ten years India would require
investments of the order of one trillion US dollar. The Insurance
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sector, to some extent, can enable investments in infrastructure

development to sustain economic growth of the country.
With a large capital outlay and long gestation periods, infrastructure

projects are fraught with a multitude of risks throughout the
development, construction and operation stages. These include risks
associated with project implementation, including geological risks,
maintenance, commercial and political risks. Without covering these
risks the financial institutions are not willing to commit funds to the
sector, especially because the financing of most private projects is on
a limited or non-recourse basis.
Insurance companies not only provide risk cover to infrastructure

projects, they also contribute long-term funds. In fact, insurance
companies are an ideal source of long term debt and equity for
infrastructure projects. With long term liability, they get a good asset-
liability match by investing their funds in such projects.
IRDA regulations require insurance companies to invest not less than

15 percent of their funds in infrastructure and social sectors.
International Insurance companies also invest their funds in such
projects.
Insurance is a federal subject in India. There are two legislations that

govern the sector – The Insurance Act-1938 and the IRDA Act-1999.
Money Back Policy
INSURANCE IN INDIA
The insurance sector in India has come as a full circle from being an
open competitive market to nationalization and back to a liberalized
market again. Tracing the developments in the Indian insurance sector
reveals the 360 degree turn witnessed over a period of almost two
centuries. A brief history of the Insurance sector The business of life
insurance in India in its existing from started in India in the year 1818
with the establishment of the Oriental Life Insurance Company in
Calcutta. Some of the important milestones in the life Insurance
business in India are: 1912: The Indian Life Assurance Companies Act
enacted as the first statute to regulate the life insurance business.
1928: The Indian Insurance Companies Act enacted to enable the
government to collect statistical information about both life and non-life
insurance businesses. 1938: Earlier legislation consolidated and
amended to by the Insurance Act with the objective of protecting the
interests of the insuring public. 1956: 245 Indian and foreign insurers
and provident societies taken over by the central government and
nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956,
with a capital contribution of Rs. 5 crore from the Government of India.
The General insurance business in India, on the other hand, can trace
its roots to the Triton Insurance Ltd., the first general Insurance
Company established in the year 1850 in Calcutta by the British.
Some of the important milestones in the general insurance business in
India are:
1907: The Indian Mercantile Insurance Ltd. set up, the first company
to transact all classes of general insurance business.
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1957: General Insurance Council, a wing of the Insurance Association

of India, frames a code of conduct for ensuring fair conduct and sound
business practices.
1968: The Insurance Act amended to regulate investments and set

minimum solvency margins and the Tariff Advisory Committee set up.
1972: The General Insurance Business (Nationalization) Act,
1972: Nationalized the general insurance business in India with effect

from 1st January.
1973: 107 insurers amalgamated and grouped into four companies’

viz. the National Insurance Company Ltd., the New India Assurance
Company Ltd., the Oriental Insurance Company Ltd. and the United
India Insurance Company Ltd. GIC incorporated as a company.
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Life Insurance Market
The Life Insurance market in India is an underdeveloped market that

was only tapped by the state owned LIC till the entry of private
insurers. The penetration of life insurance products was 19 percent of
the total 400 million of the insurable population. The state owned LIC
sold insurance as a tax instrument, not as a product giving protection.
Most customers were under-insured with no flexibility or transparency
in the products. With the entry of the private insurers the rules of the
game have changed.
The 12 private insurers in the life insurance market have already

grabbed nearly 9 percent of the market in terms of premium income.
The new business premiums of the 12 private players have tripled to
Rs. 1000 crore in 2002-03 over last year. Meanwhile, state owned
LIC’s new premium business has fallen.
Innovative products, smart marketing and aggressive distribution.

That’s the triple whammy combination that has enabled fledging
private insurance companies to sign up Indian customers faster than
anyone ever expected. Indians, who have always seen life insurance
as a tax saving device, are now suddenly turning to the private sector
and snapping up the new innovative products on offer.
The growing popularity of the private insurers shows in other ways.

They are coining money in new niches that they have introduced. The
state owned companies still dominate segments like endowments and
money back policies. But in the annuity or pension products business,
the private insurers have already wrested over 33 percent of the
market. And in the popular unit-linked insurance schemes they have a
virtual monopoly, with over 90 percent of the customers.
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The private insurers also seem to be scoring big in other ways – they
are persuading people to take out bigger policies. For instance, the
average size of a life insurance policy before privatization was around
Rs. 50,000. That has risen to about Rs. 80,000. But the private
insurers are ahead in this game and the average size of their policies
is around Rs. 1.1 lakh to Rs.1.2 lakh-way bigger than the industry
average.
Objectives of LIC
 Spread Life Insurance widely and in particular to the rural areas
and to the socially and economically backward classes with a

view to reaching all insurable persons in the country and
providing them adequate financial cover against death at a
reasonable cost.
 Maximize mobilization of people’s savings by making

insurance-linked savings adequately attractive.
 Conduct business with utmost economy and with the full
realization that the moneys belong to the policyholders.
 Act as trustees of the insured public in their individual and
collective capacities.
 Meet the various life insurance needs of the community that
would arise in the changing social and economic environment.
 Involve all people working in the Corporation to the best of their
capability in furthering the interests of the insured public by

providing efficient service with courtesy.
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Promote amongst all agents and employees of the Corporation a

sense of participation, pride and job satisfaction through discharge of
their duties with dedication towards achievement of Corporate
Objective.
Members on the Board of the Corporation
Shri. T.S. Vijayan (Chairman)

Shri. D.K. Mehrotra (Managing Director - LIC)
Shri. Thomas Mathew T (Managing Director - LIC)
Shri. Vinod Rai, Secretary (Financial Sector), Department of
Economic Affairs, Ministry Of Finance
Shri. V.P.Shetty (Chairman, IDBI)
Shri. R.K.Joshi (Chairman cum Managing Director, GIC)
Shri. Amitav Kothari (Chartered Accountant )
Shri. Sunil Kant Munjal (MD & CEO, Hero Corporate Services Ltd.)
Dr. Arvind Virmani (Principal Advisor, Planning Commission, Yojana
Bhavan)
Dr. A.Jayagovind (Director, National Law School of India )
Smt. Pushpa Girimaji (Social Activist)
Dr. (Ms.) Swati Piramal ( Director, Nicholas Piramal Ltd.)
Dr.Gautam Barua ( Director, IIT, Guwahati)
Money Back Policy
Money Back Policy, India
Money back policy provides for periodic payments of partial survival

benefits during the term of the policy, as long as the policyholder is
alive.
They differ from endowment policy in the sense that in endowment
policy survival benefits are payable only at the end of the endowment
period.
An important feature of money back policies is that in the event of

death at any time within the policy term, the death claim comprises full
sum assured without deducting any of the survival benefit amounts,
which may have already been paid as money-back components. The
bonus is also calculated on the full sum assured.
Money Back Policy
CHAPTER 3
MONEY BACK POLICIES – A THEORITICAL

VIEW
The story of insurance is probably as old as the story of mankind. The

same instinct that prompts modern businessmen today to secure
themselves against loss and disaster existed in primitive men also.
They too sought to avert the evil consequences of fire and flood and
loss of life and were willing to make some sort of sacrifice in order to
achieve security. Though the concept of insurance is largely a
development of the recent past, particularly after the industrial era –
past few centuries – yet its beginnings date back almost 6000 years.
Life Insurance in its modern form came to India from England in the
year 1818. Oriental Life Insurance Company started by Europeans in
Calcutta was the first life insurance company on Indian Soil. All the
insurance companies established during that period were brought up
with the purpose of looking after the needs of European community
and Indian natives were not being insured by these companies.
However, later with the efforts of eminent people like Babu Muttylal
Seal, the foreign life insurance companies started insuring Indian
lives.
But Indian lives were being treated as sub-standard lives and heavy
extra premiums were being charged on them. Bombay Mutual Life
Assurance Society heralded the birth of first Indian life insurance
company in the year 1870, and covered Indian lives at normal rates.
Starting as Indian enterprise with highly patriotic motives, insurance
companies came into existence to carry the message of insurance
and social security through insurance to various sectors of society.
Money Back Policy
Bharat Insurance Company (1896) was also one of such companies

inspired by nationalism. The Swadeshi movement of 1905-1907 gave
rise to more insurance companies. The United India in Madras,
National Indian and National Insurance in Calcutta and the Co-
operative Assurance at Lahore were established in 1906.
Inn 1907, Hindustan Co-operative Insurance Company took its birth in

one of the rooms of the Jorasanko, house of the great poet
Rabindranath Tagore, in Calcutta. The Indian Mercantile, General
Assurance and Swadeshi Life (later Bombay Life) were some of the
companies established during the same period. Prior to 1912 India
had no legislation to regulate insurance business. In the year 1912,
the Life Insurance Companies Act, and the Provident Fund Act were
passed. The Life Insurance Companies Act, 1912, made it necessary
that the premium rate tables and periodical valuations of companies
should be certified by an actuary. But the Act discriminated between
foreign and Indian companies on May accounts, putting the Indian
companies at a disadvantage.
The first two decades of the twentieth century saw lot of growth in
insurance business. From 44 companies with total business-in-force
as Rs.22.44 crore, it rose to 176 companies with total business-in-
force as Rs.298 crore in 1938. During the mushrooming of insurance
companies many financially unsound concerns were also floated
which failed miserably. The Insurance Act 1938 was the first
legislation governing not only life insurance but also non-life insurance
to provide strict state control over insurance business. The demand for
nationalization of life insurance industry was made repeatedly in the
past but it gathered momentum in 1944 when a bill to amend the Life
Insurance Act 1938 was introduced in the Legislative Assembly.
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However, it was much later on the 19th of January, 1956, that life
insurance in India was nationalized. About 154 Indian insurance
companies, 16 non-Indian companies and 75 provident were
operating in India at the time of nationalization. Nationalization was
accomplished in two stages; initially the management of the
companies was taken over by means of an Ordinance, and later, the
ownership too by means of and a comprehensive bill. The Parliament
of India passed the Life Insurance Corporation Act on the 19th of June
1956, and the Life Insurance Corporation of India was created on 1st
September, 1956, with the objective of spreading life insurance much
more widely and in particular to the rural areas with a view to reach all
insurable persons in the country, providing them adequate financial
cover at a reasonable cost.
LIC has 5 zonal offices, 33 divisional offices and 212 branch offices,
apart from its corporate office in the year 1956. Since life insurance
contracts are long term contracts and during the currency of the policy
it requires as variety of services need was felt in the later years to
expand the operations and place a branch office at each district
headquarter. Re-organization of LIC took place and large numbers of
new branch offices were opened. As a result of re-organization
servicing functions were transferred to the branches, and branches
were made accounting units. It worked wonders with the performance
of the corporation. It may be seen that from about 200.00 crores of
New Business in 1957 the corporation crossed 1000.00 crores only in
the year 1969-70, and it took another 10 years for LIC to cross
2000.00 crore mark of new business. But with re-organization
happening in the early eighties, by 1985-86 LIC had already crossed
7000.00 crore Sum Assured on new policies.
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Today LIC functions with 2048 fully computerized branch offices, 100
divisional offices, 7 zonal offices and the corporate office. LIC’s Wide
Area Network covers 100 divisional offices and connects all the
branches through a Metro Area Network. LIC has tied up with some
Banks and Service providers to offer on-line premium collection facility
in selected cities. LIC’s ECS and ATM premium payment facility is an
addition to customer convenience. Apart from on-line Kiosks and
IVRS, Info Centers have been commissioned at Mumbai, Ahmedabad,
Bangalore, Chennai, Hyderabad, Kolkata, New Delhi, Pune and many
other cities. With a vision of providing easy access to its policyholders,
LIC has launched its SATTELITE SAMPARK offices. The satellite
offices are smaller, leaner and closer to the customer. The digitalized
records of the satellite offices will facilitate anywhere servicing and
many other conveniences in the future.
LIC continues to be dominant life insurer even in the liberalized

scenario of Indian insurance and is moving fast on a new growth
trajectory surpassing its own past records. LIC has issued over one
crore policies during the current year. It has crossed the milestone of
issuing 1,01,32,955 new policies by 15th Oct, 2005, posting a healthy
growth rate of 16.67% over the corresponding period of the previous
year.
From then to now, LIC has crossed many milestones and has set up
unprecedented performance records in various aspects of life
insurance business. The same motives which inspired our forefathers
to bring insurance into existence in this country inspire us at LIC to
take this message of protection to light the lamps of security in as
many homes as possible and to help the people in providing security
to their families.
Money Back Policy
The following are the objectives of the money back policy: -
 The primary purpose of the life insurance is to provide
replacement of income to the family and dependence on

premature death of the bread winner.
 Life insurance can also be used as regular saving cum
protection plan for meeting long term financial goals. While

saving through other instruments as individual does not get the
benefit of protection along with saving.
 Through insurance one can provide protection against

outstanding loan liability in the event of death.
 Provisions for one’s own later years become increasingly
necessary, especially in changing cultural and social

environment. One can buy a suitable insurance policy, which
will provide periodical payments in one’s old age.
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.”
Money Back Policy
SOME FREQUENTLY ASKED QUESTIONS BY

INVESTOR
What is Money Back Policy?
Unlike ordinary endowment insurance plans where the survival

benefits are payable only at the end of the endowment period, money
back policies provide for periodic payments of partial survival benefits
during the term of the policy, of course so long as the policy holder is
alive.
An important feature of this type of policies is that in the event of death
at any time within the policy term, the death claim comprises full sum
assured without deducting any of the survival benefit amounts, which
may have already been paid as money-back components. Similarly,
the bonus is also calculated on the full sum assured.
How is it beneficial to me?
Under money back policies premiums can be paid as per the

insurance company’s policy. These could be quarterly, half yearly or
annually. The premiums for these policies are payable for the selected
term of years, or till death if it occurs earlier.
By buying such policies one can receive income at regular intervals
other than the risk cover it provides. Also a good amount of bonus on
the full sum assured is quite a good bargain.
Who should buy this plan?
Such plans are particular popular with individuals for whom income at
regular intervals is a necessity in addition to an insurance cover. The
minimum age is 12 years to be eligible for a Money-Back Policy.
Money Back Policy
How does the money-back policy work?
Site Ground has adopted the policy of refunding customers who

decide to stop using our services within the first 30 days of having
their shared Windows or Linux account with us. After the 30 days have
passed (e.g. if you request service cancellation on day 31) we will only
cancel your account.
Please note that Virtual Private Servers are not covered by the Money
Back Guarantee. Other excluded products are fees for dedicated
servers (including setup fees), shared hosting account setup fees as
well as ANY upgrades, extras or additional payments that have been
done after the initial purchase.
In case you are canceling a reseller account, we will subtract a $12
setup fee plus $8.95 for each of the registered domain names from
your refund.
SiteGround also reserves the right to keep a part of the domain name
registration fee. The domain name itself remains your property, and
you will be given access to a control panel, from which you are able to
change nameservers (useful when changing hosts) and WHOIS
information.
Important notice: This text contains selected information regarding the 30

day money-back guarantee and only has informative character. For more
details, please read carefully the Terms of Use for the respective product
before purchase
Money Back Policy
CHAPTER 4
MONEY BACK POLICY WITH LIC
Money back plans are a special type of endowment plans and are also
called as anticipated endowment assurance plans. Under money back
plans, survival benefits are spread over the term of the policy i.e.,
certain percentage of sum assured is paid at regular intervals. Apart
from the above death benefit continues like an endowment plan i.e.,
full sum assured shall be payable on death within the term irrespective
of earlier survival benefits.
I. Jeevan Surabhi Policy – Plan no.106
 Features:
This plan was introduced in Oct 92 by LIC and is a modified version of
other money back plans offered by LIC. The difference between the
other money back plans and Jeevan Surabhi plans are that:
• Maturity term is more than premium paying term.

• Early and higher rate of survival benefit payment.
• Risk cover increases every five years.
 Special Features:
Longer policy terms & limited premium paying terms as under:
Plan No. Policy Term Premium Paying Term
106 15 years 12 years
Survival benefits
Survival Benefits % of Basic Sum Assured
At the end of 4 years 30
At the end of 15 years Bonus
Money Back Policy
Maturity 15 years
 Death Benefits:
If death occurs at anytime during the term of a policy (provided the

policy has been kept in force by payment of all premiums that had
fallen due), the basic sum assured along with the vested bonus will be
paid. The survival benefits already paid, if any, will not be deducted
from this claim amount. An additional amount (depending on the
duration of the policy) will also be paid on death under such a policy.
The additional amounts payable, at various stages are shown in the
table given below: -
Policy Parameters:
Min Max
Entry Age 14 55
Sum Assured 20000 No limit
Term 15 12
Policy loan
Mode of Payment Max Maturity Age
available
Yearly, half yearly,
quarterly, monthly,
70 Years No
salary saving
scheme
 Suitable for:
This plan holds special interest to people who besides wishing to

provide for their old age and family feel the need for lump sum
benefits at periodical intervals.
Money Back Policy
II. Jeevan Surabhi Policy – Plan no. 107
Longer policy terms & limited premium paying terms as under:

Plan No. Policy Term Premium Paying Term
Survival benefits:
At the end of 18 years Nil
Maturity 20 years
 Death Benefits:
If the death occurs at anytime during the term of a policy (provided the
policy has been kept in force by payment at all premiums that had
paid. The survival benefits already paid, if any, will not be deducted for
this claim amount. An additional amount (depending on the duration of
the policy) will also be paid on death under such a policy.
Additional Amount to Be Paid in Case of Death for a Policy of Rs.

1000.
Policy First 56th-10th 11th-15th 16th-
20th
(Policy Years) (Policy Year) (Policy Year)
(Policy Year)
107/20 Nil 500 1000 1500

Money Back Policy
Policy Parameters:
Min Max.
Entry Age 14 50
Term 20
Mode of Payment Max Maturity Age Policy loan
available
Yearly, half yearly, 70 No
quarterly, monthly,
salary saving
scheme
 Suitable for:

Money Back Policy
III. Jeevan Surabhi Policy – Plan no. 108
 Features:
This plan was introduced in Oct 92 by LIC and is a modified version of
other money back plans offered by LIC. The difference between the
other money back plans and these plans is as follows: -
• Maturity term is more than premium paying term.

• Early and higher rate of survival benefit payment.
• Risk cover increases every five years.
Longer policy terms & limited premium paying terms as under: -
Plan No. Policy Term Premium Paying

Term
 Survival benefits:

Maturity 25 years
Money Back Policy
 Death Benefits:
If death occurs at anytime during the term of a policy (provided the

policy has been kept in force by payment of all premiums that had
paid. The survival benefits already paid, if any, will not be deducted for
this claim amount. An additional amount (depending on the duration of
the policy) will also be paid on death under such a policy. The
additional amounts payable, at various stages are shown in the table
given below: -
Additional Amount To Be Paid In Caw Of Death For A Policy Of

Rs.1000
Policy First 56th-10th 11th-15th 16th-20th 21st-26th
(Policy Year) (Policy Year) (Policy Year) (Policy Year)
108/25 Nil 500 1000 1500 2000
Policy Parameters:
Min Max
Entry Age 14 45
Term 25 18
available
Yearly, half yearly, 70 Years No
quarterly, monthly,
salary saving
scheme
 Suitable for:

Money Back Policy
IV. Money back with profits – Policy – Plan no.75
 Features:

benefits are payable only at the end of the endowment period, this
scheme provides for periodic payments of partial survival benefits as
follows during the term of the policy, of course so long as the policy
holder is alive.
In the case of a 12-year policy:

 20% of the sum assured becomes payable each at the 4 th and
8th years, and the balance 60% plus the accumulated bonus at the
end of the 12-year term.
 Similarly, for a policy of 15 years: 25% of the sum assured is
payable each after 5 and 10 years, and the balance 50% of the
sum assured together with the accumulated bonus at the end of
the 15th year.
 In the case of a 20-year Money-Back Policy: 20% of the sum
assured becomes payable each after 5, 10, 15 years, and the

balance of 40% plus the accrued bonus become payable at the
25th year.
 For a Money-back Policy of 25 years; 15% of the sum assured
becomes payable each after 5, 10, 15 and 20 years, and the

balance 40% plus the accrued bonus become payable at the 25th
year.
An important feature of this type of policies is that in the event of
death at any time within the policy term, the death claim comprises
full sum assured without deducting any of the survival benefit
Money Back Policy
amounts, which may have already been paid as money-back

components.
The extra premium for this benefit is very reasonable and well
worth it, unlike in the case of the whole life anticipated policy.
Period Sum assured for 20 years term Sum Assured for 25

years’ term
5 Years 20 Percent 15 percent
10 Years 20 percent 15 percent
15 Years 20 percent 15 percent
20 Years 40 percent + Bonus 15 percent
25 Years - 40 percent + Bonus
Policy Parameters:
Min Max
Entry Age 13 50
Sum Assured 20,000 No limit
Term 20 20
available
quarterly, monthly,
salary saving
scheme
 Suitable for:

benefits at periodical intervals. This plan meets with periodical needs
although loans are not granted under this policy. A terminal bonus is
granted though.
The basic bonus under plan is slightly lower than the rate applicable to
endowment assurances. During 1998-99, LIC issued 40.23 lakh
policies under this scheme.
Money Back Policy
V. New Money back – Policy – Plan no. 93

benefits are payable only at the end of the endowment period, this
scheme provides for periodic payments of partial survival benefits as
follows during the term of the policy, of course so long as the policy
holder is alive.
For a Money-Back Policy of 25 years (Table 93), 15% of the sum

assured becomes payable each after 5, 10, 15 and 20 years, and the
balance 40% plus the accrued become payable at the 25th year.

at any time within the policy term, the death claim comprises full sum
may have already been paid as money-back components. Similarly,
the bonus is also calculated on the full sum assured.
Period 75/20 Years

92/20 Years
At the end of 5 Years 20 % 15 %
At the end of 20 Years Balance 40 % +
15 %
Accrued Bonus
At the end of 25 Years Nil Balance 40 percent +
Accrued Bonus
 Permanent disability:
Benefit available
• Income-tax rebate
Money Back Policy
• Under section 88 on premiums paid.

• 100% Income tax free:
• Permanent disability, maturity and death claims.
 Death Benefits:
Full sum assured + bonus irrespective of survival benefits taken

Death before maturity.
Natural:
Payment of full Sum assured + accrued bonus.
Accident:
Payment of double the Sum Assured + Accrued bonus (Survival
benefits already paid will not be deducted).
Policy Parameters:
Min Max
Entry Age 13 50
Sum Assured 20,000 No limit
Term 25 25
available
quarterly, monthly,
special saving
scheme
 Suitable for:
This plan holds a special interest to people who besides wishing to

VI. Jeevan Sanchaya Policy – Plan no. 123
 Features:
Money Back Policy
This is a money back plan which is giving Guaranteed Addition as well

as loyalty addition instead of participating in profits of LIC.
 Guaranteed Addition:
The Guaranteed Addition @ Rs.70/- per thousand Sum Assured

payable for each completed policy year (during which the policy was in
force for the full Sum Assured) will be payable at the end of the term
of the policy or earlier death of the life assured.
 Loyalty Addition (Final Payment):
If the premiums are paid for at least 5 years, loyalty addition may
become available along with claim payments. The rate of loyalty
addition will be declared by the corporation depending upon the
experience with regard to Mortality, Interest & Expenses and be based
on integral number of years premiums paid.
 Accident Benefit:
The Accident Benefit will be exclusively guaranteed under this plan,

subject to a maximum of Rs.5, 00,000/- only.
 Accident Benefit:
Accident Benefit will be granted under this plan subject to the payment
of additional premium of Rs.1/- per thousand S.A. subject to an
exclusive limit of Rs.5, 00,000. The following additional benefits will
accrue. On death due to accident during the term of the contract and
provided the policy is in full force on the date of death an additional
sum equal to the basic Sum assured will be payable. On disability due
to accident, the basic sum assured will be paid in monthly installment
spread over a period of 10 years starting from first of the month
following disablement. Waiver of the premiums payable in future.
Money Back Policy
Plan
123/12
%
Of Sum Assured

On Maturity, the policyholder will receive the balance sum assured as

given in the above table plus the guaranteed addition and loyalty
addition (if any).
 Death Benefits:
On death of the life assured during the term of the policy, the basic
Sum assured is payable irrespective of survival benefits already paid.
In addition to the basic Sum Assured, Guaranteed and Loyalty
additions if any, as per provisions herein below are also payable.
Policy Parameters:
Min Max
Entry Age 14 58
Sum Assured 25000 No Limit
Term 12
available
Yearly, half yearly, 70 years No
quarterly, monthly,
salary saving scheme.
 Suitable for:

Money Back Policy
VII. Jeevan Sanchaya Policy – Plan no. 124
 Features:
This is a money back plan which is giving Guaranteed Addition as well

as loyalty addition instead of participating in profits of LIC.

experience with regard to Mortality, Interest & Expenses and be based
on integral number of years premiums paid.

 Accident Benefit:
Accident Benefit will be granted under this plan subject to the payment
of additional premium of Rs.1/- per thousand S.A. subject to an
accure. On death due to accident during the term of the contract and
sum equal to the basic Sum assured will be payable.
Money Back Policy
On disability due to accident, the basic sum assured will be paid in

monthly installment spread over a period of 10 years starting from first
of the month following disablement. Waiver of the premiums payable
in future.
Plan
123/12
%
Of Sum Assured


addition (if any).
Policy Parameters:
Min Max
Entry Age 14 55
Term 15
available
quarterly, monthly,
 Suitable for:

Money Back Policy
VIII. Jeevan Sanchaya Policy – Plan no.124
 Features:
Jeevan Sanchaya is a money back plan which is giving Guaranteed

Addition as well as loyalty addition instead of participating in profits of
LIC.

corporation’s experience with regards to mortality, interest & expenses
and is based on integral number of years’ premiums paid.

Accident Benefit:
Accident Benefit will be granted under the plan subject to the payment
of additional premium of Re.1/- per thousand S.A. subject to an
accure. On death due to accident during the term of the contract and
sum equal to the basic Sum assured will be payable. On disability due
Money Back Policy
to accident, the basic sum assured will be paid, in monthly installment

spread over a period of 10 years starting from first of the month
following disablement.
Plan
125/12
% Of Sum Assured

addition (if any).
 Death Benefits:
On death of the life assured during the term of the policy, the basic
Sum assured is payable irrespective of survival benefits already paid.
In addition to the basic Sum Assured, Guaranteed and Loyalty
additions if any, as per provisions herein below are also payable.
Policy Parameters:
Min Max
Entry Age 14 50
Term 20
available
quarterly, monthly,
 Suitable for:

Money Back Policy
IX. Jeevan Bharathi
 Features
Product summary
This is a with-profits plan offered to women. It provides life insurance
cover throughout the term of the plan along with the periodic
payments on survival at specified durations during the policy term.
The plan also provides the cover against affliction of certain Female
Critical Illness and occurrence of certain Congenital Disabilities in
newly born children.
Premium:
Premiums at yearly intervals are payable throughout the term of the
policy or till earlier death. After at least two full years’ premiums have
been paid, full insurance cover is available even when premiums are
not paid for up to three years. Premium for congenital disability benefit
ceases at policy anniversary after the life assured completes the age
of 40 years.
Guaranteed Additions during the first 5 years:

During the first 5 years, Guaranteed Additions of Rs.50/- per
Rs.1000/- Sum Assured will be added to the policy at the end of each
completed year for which premium is paid.
Bonuses after the first 5 years:

This is a with-profit plan and participates in the profits of the
Corporation’s life insurance business after 5 years. It gets a share of
the profits in the form of bonuses. Simple Reversionary Bonuses are
declared per thousand Sum Assured annually at the end of each
financial year. Once declared, they form part of the guaranteed
benefits of the plan.
Money Back Policy
Benefits
 Death Benefit: The Sum assured plus all vested guaranteed
additions and bonuses is payable in a lump sum upon the death

of the life assured during the policy term irrespective of the
Survival Benefit paid earlier.
 Survival/Maturity Benefit: The percentage of Sum Assured as
mentioned below will be paid on survival to the end of specified

durations:
% of SA paid on survival to the end of specifies duration

Duration Policy Term
15 years 20 years
5 20% 20%
10 20% 20%
15 60% 20%
20 - 40%
 Female Critical Illness Benefit: An amount equal to the Basic
Sum Assured (with a limit of Rs.2 lakhs) is paid on diagnosis of

any of the specified critical illnesses.
 Congenital Disability Benefit: An amount equal to 50% of the
Sum Assured (subject to a maximum of Rs.1 Lakh) will be paid

on the birth, during the policy term, of a child with any of the
specified congenital disabilities. This benefit will be available for
two children. The cover will be provided where age at entry of life
assured is 35 years or below, and will be available till the life
assured attains 40 years of age.
 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 benefits.
Money Back Policy
 Surrender Value: Buying a life insurance contract is a long-term
commitment. However, surrender value are available under the

plan on earlier termination of the contract.
 Guaranteed Surrender Value: The policy may be surrendered
after is has been in force for 3 years or more. The guaranteed

surrender value is 30% of the basic premiums paid excluding the
first year’s premium, any extra premiums and premiums towards
Accident Benefit, Female Critical Illness Benefit and Congenital
Disability Benefit.
 Company’s policy on surrenders: In practice, the company will
pay a Special Surrender Value – which is equal to or more than

the Guaranteed Surrender Value. The benefit payable on
surrender reflects the discounted value of the reduced claim
amount that would be payable on death or at maturity. This value
will depend on the duration for which premiums have been paid
and the policy duration at the date of surrender. In some
circumstances, in case of termination of the policy, the surrender
value payable may be less than the total premium paid. The
Corporation’s surrender value will be reviewed from time to time
and may change depending on the economic environment, our
experience and other factors.
Note: The above is the product summary giving the key features of the
plan. This is for illustrative purposes only. This does not represent a
contract and for details please refer to your policy document.
Money Back Policy
X. Jeevan Rekha (Now Closed for Sale)
Product summary:
This is a Money Back Whole Life plan. It provides financial protection
against death throughout the lifetime with regular flow of survival
benefits at five yearly intervals.
Features
 Premium:
Premiums are payable yearly, half-yearly, quarterly, monthly or through

salary deduction, as opted by you. The premium paying terms available
are 5, 10, 15, 20, 25 years or for life. Alternatively, the premium may be
paid in one lump sum.
 Bonuses:
This is a with-profit plan and participates in the profits of the

Corporation’s life insurance business. It gets a share of the profits in
the form of bonuses. Simple Reversionary Bonuses are declared per
thousand Sum Assured annually at the end of each financial year.
Once declared, they form part of the guaranteed benefits of the plan. A
Final (Additional) Bonus may also be payable provided the policy has
run for certain minimum period.
Benefits
 Survival Benefits: 10% of the Basic

Sum Assured will be paid throughout your lifetime after every 5
years. First such payment will be paid after five years from the
date of commencement.
Money Back Policy
 Death Benefit: The Sum Assured

along with all vested bonuses is payable in a lump sum upon the
death of the life assured, whenever it occurs.
 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.
 Surrender Value: Buying a life

insurance contract is long-term commitment. However, surrender
values are available on the plan on earlier termination of the
contract.
 Guaranteed Surrender Value: The

policy may be surrendered after it has been in force for 3 years or
more. The guaranteed surrender value is 30% of the basic
premiums paid excluding the first year’s premium. In case of a
single premium policy the guaranteed surrender value is 90% of
the single premium paid.
 Corporation’s policy on surrenders:

In practice, the Corporation will pay a Special Surrender Value –
which is either equal to or more than the Guaranteed Surrender
Value. The benefit payable on surrender reflects the discounted
value of the reduced claim amount that would be payable on
death. This value will depend on the duration for which premiums
have been paid and the policy duration at the date of surrender. In
some circumstances, in case of early termination of the policy, the
surrender values payable may be less than the total premium paid.
The Corporation reviews the surrender value payable under its
Money Back Policy
plans from time to time depending on the economic environment,

experience and other factors.
Note: The above is the product summary giving the key features of the plan.
This is for illustrative purpose only. This does not represent a contract and
for details please refer to your policy document.
Statutory warning:
“Some benefits are guaranteed and some benefits are variable with
returns based on the future performance of your insurer carrying on
life insurance business. If your policy offers guaranteed returns then
these will be clearly marked “guaranteed” in the illustration table on
this page. If your policy offers variable returns then the illustrations on
this page will show two different rates of assumed future investment
returns. These assumed rates of return are not guaranteed and they
are not upper or lower limits of what you might get back as the value
of your policy is dependent on a number of factors including future
investment performance.”
Illustration:
Age at entry: 0 years, Premium Paying Term: 18 years, Policy term: 26
years, Sum Assured: Rs. 1, 00,000/-, Annual Premium: Rs. 7,281/-.
Money Back Policy
End Total Benefit on Death during the year (Rs.)

of premiums Variable Total
year paid till
end of Guaranteed Scenario Scenario Scenario Scenario
1 2 1 2
year
1 8,488 0 2,00,000 2,800 15,800 73980 73980
2 16,976 0 2,00,000 5,600 31,600 73980 73980
3 25,464 0 2,00,000 8,400 47,400 73980 73980
4 33,952 0 2,00,000 11,200 63,200 73980 73980
5 42,440 20000 2,00,000 14,000 79,000 73980 73980
6 50,928 0 2,00,000 16,800 94,800 73980 73980
7 59,416 0 2,00,000 19,600 1,10,600 145000 157000
8 67,904 0 2,00,000 22,400 1,26,400 152500 168500
9 76,392 0 2,00,000 25,200 1,42,200 160000 181000
10 84,880 20000 2,00,000 28,000 1,58,000 167500 193500
15 1,27,320 20000 2,00,000 42,000 2,37,000 205000 272000
20 1,69,760 20000 2,00,000 72,000 4,20,000 242500 370500
25 2,12,200 20000 2,00,000 90,000 5,25,000 287500 564500
30 2,12,200 20000 2,00,000 1,08,000 6,30,000 3,08,000 8,30,000
i) The above illustration is applicable to a non-smoker
male/female standard (from medical, life style and occupation
point of view) file.
ii) The non-guaranteed benefits (1) and (2) in above illustration

are calculated so that they are consistent with the Projected
Investment Rate of Return assumption of 6% p.a. (Scenario 1)
and 10% p.a. (Scenario 2) respectively. In other words, in
preparing this benefit illustration, it is assumed that the
Projected Investment Rate of Return that LIC will be able to
earn throughout the term of the policy will be 6% p.a. or 10%
p.a., as the case may be. The projected Investment rate of
return is not guaranteed.
Money Back Policy
iii) The main objective of the illustration is that the client is able to
appreciate the features of the product and the flow of benefits
in different circumstances with some level of quantification.
iv) Future bonus will depend on future profits and as such is not
guaranteed. However, once bonus is declared in any year and
added to the policy, the bonus so added is guaranteed.
v) The flow of benefits, in above illustrations, have been shown

for first 30 years. In practice, the benefits will continue so long
the policyholder survives.
Money Back Policy
XI. Money Back with Profit
Features
Unlike ordinary endowment insurance plans where the survival benefits

are payable only at the end of the endowment period, this scheme
provides for periodic payments of partial survival benefits as follows
during the term of the policy, of course so long as the policy holder is
alive.
In the case of a 20-year Money-Back Policy, 20% of the sum assured

becomes payable each after 5, 10, 15 and 20 years, and the balance of
40% plus the accrued bonus become payable at the 20th year.
For a Money-Back Policy of 25 years 15% of the sum assured

becomes payable each after 5,10,15 and 20 years, and the balance
40% plus the accrued bonus become payable at the 25th year.

at any time within the policy term, he death claim comprises full sum
have already been paid. Similarly, the bonus is also calculated on the
full sum assured.
Money Back Policy
XII. Bima Bachat
Benefits
What is Bima Bachat?
LIC’s Bima Bachat is a money-back policy which offers financial
security and assurance to the policy holder and his family. Bima Bachat
requires the policy holder to pay only one premium. The amount paid
for the premium depends on the duration of the policy taken and life
insurance is available till the date of maturity.
What other benefits do I receive during the specified duration of

the policy?
For a term of 9 years: The policy holder will receive 15% of the sum
assured at the end of every 3rd and 6th policy year.
For a term 12 years: The policy holder will receive 15% of the sum
assured at the end of every 3rd, 6th and 9th policy year.
Money Back Policy
For a term 15 years: The policy holder will receive15% of the sum
assured at the end of every 3rd, 6th, 9th and 12th policy year.
What additional benefits do I get upon maturity?

If the policy holder outlives the duration of the policy, at the time of
maturity, a single premium payment (excluding extra premium) is made
along with loyalty additions, if any.
How much insurance do I get?

The policy holder is insured for an amount equal to the sum assured.
What about the installment received already?

The insurance cover is irrespective of the installments received.
When am I eligible for the guaranteed surrender value?

The guaranteed surrender value is available only after completion of at
least one policy year. This value is equal to 90 % of the single premium
paid (excluding extra premium).
Money Back Policy
What other benefits does this insurance cover offer?

Bima Bachat is the only money-back policy that offers a loan facility.
The rate of interest for this will be determined from time to time by the
corporation. Presently the rate of interest is 9% p.a. payable half-yearly.
It also offers other benefits like the 15 day cooling off period, grace
period and revival.
Who is eligible for the policy? Are there other conditions or

restrictions?
The following are the requirements that one needs to be aware of
before applying for this
policy:
The person applying for the policy should have completed 15 years
and should not be older than 66 years.
· The policy will mature when the person is 75 years old.
· There is a choice of three terms to choose from (9, 12 and 15 years)
for the policy depending on the age and requirement of the applicant.
· The minimum sum that needs to be assured is Rs 20,000/- and there
is no limit on the amount that can be assured.
· It is important to note that the sum assured should be in multiples of
Rs 5000/- only.
· The policy requires the holder to pay a single premium.
Money Back Policy
Premium Payment
Single Premium
The sample premium rates are as under: -
Age Annual Premium per 1000 SA

9 12 15
15 716.40 771.35 804.00
20 717.20 771.85 804.40
25 717.55 772.25 804.95
30 718.45 773.35 806.10
35 721.05 775.75 808.55
40 725.80 780.25 812.95
45 734.10 787.60 819.60
50 746.60 797.90 828.95
55 762.65 811.95 841.75
60 784.80 831.30 859.35
65 816.25 - -
Money Back Policy
What incentives do I get for a higher sum assured?

Let’s take an example of a 30 year old with a Bima Bachat policy for
12 years. If the sum assured is Rs 45,000 then he has to pay a
premium of Rs 34800.75. But for a sum assured amount of Rs 50,000
he will have to pay a premium of Rs 36734.13 only, thus getting a 5%
rebate in premium.
Refer to the table below for other rebate percentages:
Less than Rs. 50,000 NIL

Rs. 50,000 and Less than
5%
Rs.1 lakh
Rs. 1 lakh and Less than
7%
Rs.2 lakh
Rs. 2 lakh and above 8%
Notes:
i) The above examples are applicable to a *standard non-smoker
male/female
(*medical condition, lifestyle and occupation)
ii) *The non-guaranteed benefits (1) and (2) in above illustration are
calculated so that they are consistent with the Projected Investment
Rate of Return assumption of 6% p.a.(Scenario 1) and 10% p.a.
Money Back Policy
(Scenario 2) respectively. In other words, in preparing this benefit

illustration, it is assumed that the Projected Investment Rate of Return
that LIC will be able to earn throughout the term of the policy will be
6% p.a. or 10% p.a., as the case may be. The Projected Investment
Rate of Return is not guaranteed.
iii) The main objective of the example is that the client is able to
appreciate the features of the product and the flow of benefits in
different circumstances with some level of quantification.
The maturity benefit is the amount shown at the end of the policy term.
Statutory warning:
“Some benefits are guaranteed and some benefits are variable with
returns based on the future performance of your Insurer carrying on
life insurance business. If your policy offers guaranteed returns then
these will be clearly marked “guaranteed” in the illustration table on
this page. If your policy offers variable returns then the illustrations on
this page will show two different rates of assumed future investment
returns. These assumed rates of return are not guaranteed and they
are not the upper or lower limits of what you might get back, as the
value of your policy is dependent on a number of factors including
future investment performance.”
Extract from section 41 of the insurance act:

(1) No person shall allow or offer to allow, either directly or indirectly,
as an inducement to any person to take out or renew or continue an
insurance in respect of any kind of risk relating to lives or property in
India, any rebate of the whole or part of the commission payable or
any rebate of the premium shown on the policy nor shall any person
taking out or renewing or continuing a policy accept any rebate except
Money Back Policy
such rebates as may be allowed in accordance with the published

prospectuses or tables of the insurer : provided that acceptance by an
insurance agent of commission in connection with a policy of life
insurance taking out by himself on his own life shall not be deemed to
be acceptance the insurance agent satisfies the prescribed conditions
establishing that he is a bona fide insurance agent employed by the
insurer.
(2) Any person making default in complying with the provisions of this
Section shall be punishable with a fine which may extend to Rs.500 / -
Note: “Conditions apply” for which please refer to the policy document or
contact our nearest branch office.
Money Back Policy
CHAPTER 5
CONCLUSION
Life Insurance Company’s are expected to be meticulous with the risk

classification as they deal with public monies. The underwriting tools
play a pivotal role in placing the risks appropriate. The main risks that
are premature death, disability and are excessive longevity. These
risks may ruin an individual as well as hi/her dependents economically
by causing the stoppage of regular income. Such a state is referred to
as “Economic Death” of an individual.
Protection through insurance may save an individual and his family

from such an economic death. The concept of insurance is based on
three principles economic, legal and actuarial/mathematical.
According to the economic principle, the loss suffered by an individual
is shared by a larger group who are facing the similar type of risk. The
legal principle restricts the members of the risk pool to enjoy the
benefit of having insurance coverage without violating the laws of the
land. The actuarial/mathematical principle enables a life insurer to
estimate the premium to be paid by each member in order to get the
required level of protection on the basis of the risk class to which an
individual belongs.
Money Back Policy
BIBLIOGRAPHY
Books and Magazine
1. INSURANCE WATCH MAGAZINE
2. INDIAN FINANCIAL SYSTEM
- BHARTI.V.PATHAK
- Dr. G. RAMESH BABU
3. Mr. Kailash Bindal (Insurance Agent LIC)
4. WEBSITE:
1. www.licindia.com
2. www.google.com

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About the Report

The present study is titled as “A project report on Money Back

Objective of the study:

• To study about the need for the Life Insurance.

Life insurance is often considered as the best estate planning “fuel”. It

The purpose of life insurance for most people is to protect their

There are 4 main types of insurance policies: -

a) Level term insurance: - Under this plan there is a uniform

premium and benefit throughout the term of the policy. In the

b) Decreasing term insurance: - Under this plan the premium is

constant throughout the term but the benefit decreases over a

c) Increasing term insurance: - Under this plan the premium as

well as the benefit increase periodically. Te increases could be

at a fixed percentage or in line with an agreed index this plans is

d) Renewable term insurance: - Though term insurance is for a

e) Convertible term insurance: - Such a plan includes a

conversion privilege which gives Proposer the right to convert

WHOLE LIFE INSURANCE

Whole life insurance guarantees a death benefit cover throughout the

Pure endowment is a plan where the benefit is payable to the insured

Annuities are a for of pension in which an insurance company makes

Annuities are of two types-

• Immediate annuity: - Immediate annuity begins at once or

• Deferred annuity: - Under a deferred annuity plan the annuity

The Government of India liberalized the insurance sector in March

With largest number of life insurance policies in force in the world,

Yet, nearly 80 per cent of Indian population is without life insurance

A well-developed and evolved insurance sector is needed for

sector, to some extent, can enable investments in infrastructure

With a large capital outlay and long gestation periods, infrastructure

Insurance companies not only provide risk cover to infrastructure

IRDA regulations require insurance companies to invest not less than

Insurance is a federal subject in India. There are two legislations that

1957: General Insurance Council, a wing of the Insurance Association

1968: The Insurance Act amended to regulate investments and set

1972: The General Insurance Business (Nationalization) Act,

1972: Nationalized the general insurance business in India with effect

1973: 107 insurers amalgamated and grouped into four companies’

Life Insurance Market

The Life Insurance market in India is an underdeveloped market that

The 12 private insurers in the life insurance market have already

Innovative products, smart marketing and aggressive distribution.

The growing popularity of the private insurers shows in other ways.

 Spread Life Insurance widely and in particular to the rural areas

and to the socially and economically backward classes with a

 Maximize mobilization of people’s savings by making

 Conduct business with utmost economy and with the full

realization that the moneys belong to the policyholders.

 Act as trustees of the insured public in their individual and

 Meet the various life insurance needs of the community that

would arise in the changing social and economic environment.

 Involve all people working in the Corporation to the best of their

capability in furthering the interests of the insured public by

Promote amongst all agents and employees of the Corporation a

Members on the Board of the Corporation

Shri. T.S. Vijayan (Chairman)

Money Back Policy, India

Money back policy provides for periodic payments of partial survival

An important feature of money back policies is that in the event of

MONEY BACK POLICIES – A THEORITICAL

The story of insurance is probably as old as the story of mankind. The