FINANCIAL PLANNING

Comparative Analysis of Whole Life Policies

(Private Sector)



























ICICI Prudential Life Insurance

Age-30 yrs.
Sum assured 50,000,00
Premium Payment term- 20 years
Annual premium- Rs.8,933 (inclusive of taxes & cess)
ICICI Pru Whole Life, a life insurance plan, provides you with a unique combination of
savings and protection.

The annual premium is inclusive of accidental death cover, which allows the nominee to
receive a sum of Rs. 1,00,00,000. in case of accidental death.
Min/Max age at end of premium paying term 30/70 years
Premium can be paid yearly, half yearly or monthly; with a 15 day grace period for monthly
and 30 day grace period for yearly and half yearly mode
Advantages
Savings benefit: We are entitled to the chosen Sum Assured and all the bonuses declared,
if any, at the end of the premium paying term.
Life cover benefit: In case of your untimely demise during your premium paying years, your
family would receive twice the Sum Assured along with all bonuses.
Whole life cover benefit: You are also entitled to an additional Sum Assured payable in
case death occurs after the completion of the premium paying term or on completion of 100
years of age, whichever is earlier, allowing you to leave a legacy to your dear ones.

Surrender value-
Your policy will acquire a Guaranteed Surrender Value on payment of premium for at least
3 policy years which is 35% of the base policy premiums paid, less the first year's premium.









Kotak Mahindra Bank
Premium: 6,000 p.a. + Taxes
Age-30 yrs.
Sum assured 50,000,00
Premium Payment term- 45 years

Entry Age 0-65 years (Both Inclusive)
Maturity Age 99 Years
Minimum Sum Assured 10,00,000
Maximum Sum Assured 10,00,00,000
Premium Paying Frequencies Annual, Half Year, Quarterly, Monthly

Kotak Eternal Life Plan-Classic Shield plan ensures a fixed premium that stays level
throughout the premium payment term. This helps us plan and manage our finances better,
knowing that our premiums will never escalate, regardless of age, health.
Death Benefit If the Life Insured dies within the policy tenure, the following is paid as
Death Benefit
Within the Premium Paying Term, the nominee would receive the Sum Assured +
accrued Reversionary Bonus + Terminal Bonus (if any) + Interim Bonus (if any)
would be paid as Death Benefit.
After the Premium Paying Term, the nominee would receive the Sum Assured +
Terminal Bonus (if any) would be paid as Death Benefit

Surrender Benefit On survival till the end of the Premium Paying Term, the vested
Simple Reversionary Bonus + Special Terminal Bonus is payable as a Survival Cash
Benefit

Maturity Benefit On maturity, i.e. if the Life Insured survives till 99 years of age, then the
Sum Assured + Terminal Bonus (if any) would be paid to the policyholder as Maturity
Benefit

Income Tax Benefit - Life Insurance premiums paid up to Rs. 1,00,000 are allowed as a
deduction from the taxable income each year under section 80C.






HDFC Life (Whole Life Insurance Plan)

Age: 30 Years
Sum Assured: 50,00,000
Premium Paying Terms: 30 Years
Premium Amt.: 6,000+Tax OR 6,742(inclusive of all taxes)

HDFC Life Click2Protect
Entry Age 18 Years-55Years (Both Inclusive)
Maturity Age 28Years-65Years {Both Inclusive)
Minimum Sum Assured 10,00,000
Maximum Sum Assured 10,00,00,000
Premium Paying Frequencies Annual Mode

HDFC Life Click2Protect provides for the payment of a lump sum amount in the event of
unfortunate death. This plan provides with the following key benefits:
It ensures your family may be secured for at-least 5 to 10 years in case of your
unexpected demise.
HDFC Life has a Claim Settlement Ratio of 96.56%.
No Medicals up to a cover of Rs75 lakhs for a healthy non-smoker male up to 40
years of age.
HDFC Bank Credit Card Holders can avail easy EMI options of 3 and 6 months.

Death Benefit
On the unfortunate death during the policy term, the nominee will receive the chosen
Sum Assured. This benefit is applicable provided that the participant has paid all the
premiums to date.
Grace Period: Grace Period of 30 days from the premium due date is available for
payment of premiums.

Tax Benefit
Premiums paid under this plan are eligible for tax benefits are under section 80C of
the Income Tax Act, 1961, subject to provisions contained therein.
This plan provides no Maturity Benefit.
This plan provides no Surrender Benefit.






Bajaj Allianz

Age: 30 yrs.
Sum assured : 50,00,000
Premium Payment Term : 20yrs
Premium : 4,88,045(Inc. Service Tax & Edu. Cess)
Bajaj Allianz Lifelong Assure is a participating individual limited premium whole life
endowment plan. The key advantages of this plan are:
Cash Bonus starting from the end of 6 year
Guaranteed Cash Back starting from the end of Premium Payment Term
Life cover up to the age of 100 years
Guaranteed Death Benefit of up to 300% of Sum Assured

Survival Benefit
You will start receiving Guaranteed Cash Back of 3% of your Sum Assured every year,
from the end of your premium payment term till the age of 99 years (1,50,000).
You will be entitled for Cash Bonus declared, if any, starting from the end of 6 policy year till
the age of 99 years. (3,00,000)
Maturity Benefit
Your policy will mature at the age of 100 years. On the maturity date, Maturity Value as
mentioned (300% of sum assured) will be paid and the policy will terminate.
Death Benefit
The death benefit payable to the nominee shall be as follows
i) 10 times annualised premium
ii) 105% of total premium paid till date of death
iii) 200%, 250% or 300% of sum assured depending on the PPT chosen.
Surrender Policy
Policy
Surrender Year
3 4 to
20
21 to
25
26 to
30
31 to
35
36 to
40
41 onwards

Proportion of
the premiums
paid till date
30% 50% 52% 53% 56% 60% 65%




Canara HSBC Life

Age: 30 Years
Sum Assured: 50,00,000
Premium Paying Terms: 30 Years
Premium Amt.: Rs. 4,299(inclusive of all taxes)

Entry Age 31 days
Minimum Maturity Age 99 years
Minimum Sum Assured 2,40,000
Maximum Sum Assured 10,00,00,000
Premium Paying Frequencies Annually/Semi-Annually/ Quarterly/Monthly

Canara HSBC Life Unit Linked Whole Life Plan is an investment cum protection Plan.
This plan provides with the following key benefits:



Comparative Analysis
Particulars Bajaj
Allianz
HDFC Life ICICI Pru Canara-
HSBC
Kotak
Mahindra
Premium
(Amount
Inclusive
Taxes )
Rs.
4,88,045
Rs.6742 Rs.8933 Rs. 51,588 Rs.6742
Premium
Paying
Terms
20 Years 30 Years 20 Years 30 Years 45 Years
Cover Up
to (Age)
100 Years 65 Years
OR PPT
(whichever
is earlier)
100 Years 99 years 99 Years
Maturity
Benefit
300% Sum
Assured
No Maturity
Benefit
100% Sum
Assured +
Bonus
Fund
Value+ Top
up
premiums (if
any)
100% Sum
Assured +
Bonus
Death
Benefit
300% Sum
Assured
100% Sum
Assured
200% Sum
Assured
Fund Value
or Sum
assured
whichever is
higher
Sum Assured
+Reversionary
Bonus+
Terminal
Bonus+
Interim Bonus
Grace
Period
- 30 Days 15/30 Days 31 days 15/30 Days
Surrender
Benefit
Yes No Yes Yes Yes
Tax
Benefit
Under 80(C) Under 80(C) Under 80(C) Under 80(C) Under 80(C)
Additional
Benefits
- Cash
Benefit ( Rs.
300000 p.a
)
- Cash
Bonus ( Rs.
150000 p.a
)
- No
Medical
Documents
for a healthy
non-smoker
under the
age 40
- Loan
Benefit
(80% Sum
Assured)
- Savings
Benefit
- Cash
Benefit
Loyalty
Addition
Benefit:
This feature
gives free
extra
allocation of
Units during
the term of
the Policy to
enhance
your Fund
Value.

No Additional
Benefits


Case

Mr X. is a healthy 30 yrs. old male (non tobacco user) and decides to buy a whole life policy
to secure himself and his family.
mr. x wants the sum assured of the policy to be around Rs. 50,00,000.

Analysis
We would recommend going with the ICICI Pru Whole Life Plan, as it offers an assured
sum of Rs. 50,00,000. at a comparatively better premium of Rs. 8933. Per annum with a
payment term of 20 years. Additionally its offers several benefits/bonuses such as Loan
Benefit (80% Sum Assured), Savings Benefit, Cash Benefit, Accidental Benefit. Thus,
taking into consideration all the above factors, this policy is more attractive compared to the
others.