Welcome to the World of Insurance!!!

At the end of this session, we shall learnAt the end of this session, we shall learn

• Why insurance?Why insurance?

• What is insurance?What is insurance?

• What are the various forms of insurance organizations in US?What are the various forms of insurance organizations in US?

• Key concepts related to insurance policyKey concepts related to insurance policy

• How is an insurance policy priced?How is an insurance policy priced?

• Key terms - demystify the jargon!Key terms - demystify the jargon!

• What are the various types of Life & Health Insurance?What are the various types of Life & Health Insurance?

• What are the typical riders? What are the typical riders?

• What are the different Retirement Savings Plans?What are the different Retirement Savings Plans?

Structure

• Basic ConceptsBasic Concepts

– Insurance & Risk• US Insurance IndustryUS Insurance Industry

• ProductsProducts

– Life– Health– Retirement Savings

Why Insurance?

• Types of RisksTypes of Risks

– Pure Risk– Speculative Risk

• Simply to safeguard yourself against risks that you face in lifeSimply to safeguard yourself against risks that you face in life

– Risk of early death leaving the dependants with no income

– Risk of loss of rental income from fire in a rented property

Life InsuranceLife Insurance

• Why Life Insurance ?Why Life Insurance ?

– To provide cash to the family after the insured dies– No federal income tax on “death benefits”

• How much is you life worth ?How much is you life worth ?

– People usually buy life insurance, 5 to 7 times their annual gross income.

– Needs approach• Based on survivors needs and existing sources of income

Life Insurance Needs Calculator Life Insurance Needs Calculator E n t e r o n l y n u m b e r s , n o c o m m a s o r d o l l a r s i g n s .

1 . F i n a l e x p e n s e s : 1 0 0 0 0

2 . O u t s t a n d i n g d e b t s ( o t h e r t h a n y o u r m o r t g a g e ) : 0

3 . O u t s t a n d i n g m o r t g a g e : 0

4 . C o l l e g e f u n d i n g n e e d s : 0

E s t i m a t e y o u r f a m i l y ' s i n c o m e n e e d s i n c a s e o f y o u r d e a t h :

1 . M o n t h l y a m o u n t y o u w o u l d n e e d t o p r o v i d e t o y o u r s u r v i v i n g s p o u s e :

2 . H o w m a n y y e a r s s h o u l d i n c o m e b e p r o v i d e d ?

3 . W h a t i s y o u r c u r r e n t i n v e s t m e n t c a p i t a l ( i n c l u d e r e t i r e m e n t p l a n a s s e t s ) ? 0

4 . W h a t i s t h e v a l u e o f t h e l i f e i n s u r a n c e i n f o r c e o n y o u r l i f e ? 0

Introduction to Risk

Risk Management• Do you understand risk management?Do you understand risk management?

• Do you practice risk management?Do you practice risk management?

– Are you interested in Bungee Jumping? • No - “Avoidance”• Yes - You take training and wear safety belts etc -

“Controlling”

– Do you have a life insurance policy?• No - “Accepting”• Yes - “Transferring”

Insurance is just one of the risk management techniques. It is an arrangement that transfers the risk of loss from the insured to another party, usually an

insurance company (insurer)

What kinds of risks can you insure?

• Personal Risk: Illness, bodily injury, disability, death etc.Personal Risk: Illness, bodily injury, disability, death etc.

• Property Risk: Encompasses own or possessed assetsProperty Risk: Encompasses own or possessed assets

• Direct Risk – Risk of loss caused by a fire in a owned homeDirect Risk – Risk of loss caused by a fire in a owned home

• Indirect Risk – Risk of loss of rental income from fire in a rented Indirect Risk – Risk of loss of rental income from fire in a rented propertyproperty

• Liability Risk: Results from law of liability , state statute or case lawLiability Risk: Results from law of liability , state statute or case law

• The cost of losses is shared by a number of peopleThe cost of losses is shared by a number of people

– Law of large numbers

• Only risks that meet the following criteria are insurableOnly risks that meet the following criteria are insurable

– Loss rate must be predictable– Loss must be accidental– Loss must be definite and measurable– Loss must be significant– Loss must not be catastrophic

• Risk is classified and differential premium chargedRisk is classified and differential premium charged

– Standard – Substandard– Preferred– Declined

How is the insurer able to bear your risk?

• Any Doubts?…Any Doubts?…

Insurance Business

Insurance typesInsurance types

Life Insurance BusinessLife Insurance Business

Life & Health

LifeAD & DDisability

Dental

Long Term Care

Retirement Savings Plans

Annuities

Pension Plans

Investment Management

Stable Value

Guaranteed Index Investing

Asset Allocation

Co-Mingled & Individually Managed Accounts

401 (k)

IRA

Individual Vs. Institutional Individual Vs. Institutional

IndividualIndividual InstitutionalInstitutional

Policies are bought by individuals Policies are bought by individuals Plan is bought by the employerPlan is bought by the employer

Individual premium paymentIndividual premium payment Premium payment through salary deductionsPremium payment through salary deductions

Insurability based on individual parameters of Insurability based on individual parameters of health and habitshealth and habits

Insurability based on group mortality Insurability based on group mortality experienceexperience

Insurer deals manages each insured’s Insurer deals manages each insured’s account individuallyaccount individually

Insurer has no direct interaction with plan Insurer has no direct interaction with plan participants.participants.

Individual chooses investment optionsIndividual chooses investment options Employer selects investment options. Employer selects investment options. Participants decide what % goes into each.Participants decide what % goes into each.

Assets are generally pooledAssets are generally pooled Large assets are generally managed as Large assets are generally managed as individual accountsindividual accounts

Types of InsurersTypes of Insurers

• PrivatePrivate

– Stock Insurance Companies– Mutual Insurance Companies– Reinsures

• GovernmentGovernment

– Federal Insurance Programs• Social security• Medicare

– State Government Insurance Programs• Medicaid (jointly with Fed)

US Life Insurance IndustryUS Life Insurance Industry

“US insurance industry is composed of approximately 6,000 companies, represents well over $2.5 trillion in assets and employs over 2 million people”

Organization roles in InsuranceOrganization roles in Insurance

• Insurance providerInsurance provider

– Provider business models• Brick & Mortar• Pure Play or internet• Hybrid

• Insurance distributorInsurance distributor

– Insurance agents• Independent• Exclusive

– Insurance brokers– Direct sales– Intermediaries

• Aggregators• Specialized Service Providers and OutsourcersSpecialized Service Providers and Outsourcers

– That’s us!!!• Insurance Regulators or government agenciesInsurance Regulators or government agencies

Insurance RegulationInsurance Regulation

• Primarily State regulated with Federal Govt. retaining rights to regulatePrimarily State regulated with Federal Govt. retaining rights to regulate

– Solvency requirements– Fair and ethical business

• State RegulationState Regulation

– Solvency• Policy Reserves• Life & Health Guaranty association

– Market Conduct• Licensing insurance agents• Policy forms

• NAIC (National association of insurance commissioners)NAIC (National association of insurance commissioners)

– Model Law– Uniform Financial Statement for insurance companies

• Any Doubts?…Any Doubts?…

Basic Concepts

Insurance Operations OverviewInsurance Operations Overview

Market

Actuarial

Analysis ofActuarial

Information

Underwriting

Producer (Agents,Marketing,Personnel)

Customer(Insured)

Billing

Accounts

MarketInformation

ActuarialInformation

Analysis ofActuarial

Guidelines

PremiumInformation

CustomerInformation

CustomerInformation

PremiumInformation

UnderwritingDecision

PremiumPayment

PremiumPayment

PremiumInformation

Establishes, applies, and sustains effective and efficient risk selection and pricing policies and processes

Customer RelationshipInformation Management

Capability

Marketing and Sales Support

Product Development

Customer Servicing

Underwriting

Policy Lifecycle Management

Billing and Collection

Regulatory Compliance

Claims Processing

Gathers and maintains data to provide a total customer view across companies, products, and channels to allow the carrier to develop customer relationship insight based on past experience

Description

Provide critical customer information at the point of sale to increase customer intimacy and provide cross-selling opportunities

Supports the development, refinement, and maintenance of new and existing products

Provides integrated, real-time, high quality information to support customer inquiry, data capture, quote and proposal, and special account processing

Supports the storage and maintenance of a policy from quote conversion through the life cycle of the policy

Supports customer billing and agency commission and collections functions

Supports components and tools needed to meet the demands of bureau auditing and statutory reporting

Assesses claims for all types of claims, home, auto, life, workers comp., medical, etc. Assigns adjuster by geography.

Insurance Business SubsystemsInsurance Business Subsystems

Insurance PolicyInsurance Policy

• As a contractAs a contract

– An informal contract– A unilateral contract– A contract involving exchange of unequal amounts (aleatory)– A contract of adhesion– A valued contract

• As a propertyAs a property

– Right to name the beneficiary– Transfer ownership– Mode and method of premium payment

Basic Insurance TermsBasic Insurance Terms

• InsuredInsured

• InsurerInsurer

• Applicant, Policy owner, BeneficiaryApplicant, Policy owner, Beneficiary

• PremiumPremium

• Sum AssuredSum Assured

• Insurable interestInsurable interest

• AntiselectionAntiselection

• UnderwritingUnderwriting

An example at a glanceAn example at a glance

• Karthik wants to provide protection to his family in case of his Karthik wants to provide protection to his family in case of his unfortunate death. He insures himself for an amount of $10,000 and unfortunate death. He insures himself for an amount of $10,000 and nominates his wife, Sudha to receive the death benefits. He pays $2,00 nominates his wife, Sudha to receive the death benefits. He pays $2,00 to Prudential Insurance every year to keep the policy in force.to Prudential Insurance every year to keep the policy in force.

• Any Doubts?…Any Doubts?…

Pricing Life InsurancePricing Life Insurance

How is the premium decided?How is the premium decided?

• Rate of Mortality Rate of Mortality • Investment EarningsInvestment Earnings• ExpensesExpenses

– Mortality Mortality • Male/FemaleMale/Female• Smoker/Non-smokerSmoker/Non-smoker

– Net premiumNet premium• Mortality rates, investment earnings, lapse rateMortality rates, investment earnings, lapse rate

– Operating costs + profit = loadingOperating costs + profit = loading

– Net premium + loading = Gross premiumNet premium + loading = Gross premium

FactorsFactors

Mortality TableMortality Table

Age Number Living Number Dying

Mortality Rate per 1,000 Age Number Living Number Dying

Mortality Rate per 1,000

0 10,000,000 41,800 4.18 0 10,000,000 28,900 2.891 9,958,200 10,655 1.07 1 9,971,100 8,675 0.87

2 9,947,545 9,848 0.99 2 9,962,425 8,070 0.813 9,937,697 9,739 0.98 3 9,954,355 7,864 0.794 9,927,958 9,432 0.95 4 9,946,491 7,659 0.775 9,918,526 8,927 0.90 5 9,938,832 7,554 0.76

10 9,878,322 7,211 0.73 10 9,903,103 6,734 0.6820 9,754,159 18,533 1.90 20 9,820,821 10,312 1.0530 9,579,998 16,573 1.73 30 9,707,590 13,105 1.3540 9,377,225 28,319 3.02 40 9,545,345 23,100 2.4250 8,966,618 60,166 6.71 50 9,219,130 45,727 4.9660 8,084,266 129,995 16.08 60 8,603,801 81,478 9.4770 6,274,160 247,892 39.51 70 7,448,816 164,693 22.1180 3,274,541 323,656 98.84 80 5,056,025 333,647 65.9990 645,788 143,216 221.77 90 1,496,826 285,520 190.7599 10,757 10,757 1,000.00 99 30,698 30,698 1,000.00

Male Female

• Any Doubts?…Any Doubts?…

Life & Health InsuranceLife & Health Insurance

• What are the types of life Insurance?What are the types of life Insurance?

– Term Insurance – Permanent Insurance

• Whole Life insurance• Universal• Variable• Variable Universal

– Endowment Insurance

• Variations in key factorsVariations in key factors

– Insurance element – death or survival benefit– Savings element – cash value– Investment risk – policyowner or insurer

Term Vs. PermanentTerm Vs. Permanent

• Term InsuranceTerm Insurance

– Temporary protection for specified period– No cash value– Level, increasing or decreasing benefit– Renewable and convertible– Premiums increase with insured age– Initial premiums normally lower than whole life

• Types of term insuranceTypes of term insurance

– Specified period term

45 50 55

$0

$1

00,0

00

Age of Insured

Dollars

Death Benefit

End ofCoverage

• Yearly renewableYearly renewable

• Decreasing termDecreasing term

45 46 47 48 49 50

$0$1

00,0

00

Age of Insured

Dollars

Death Benefit

Premium Rates

45 50 55

$0$1

00,0

00

Age of Insured

DollarsDeath Benefit

• Uses of term insuranceUses of term insurance

– When income is limited and large amounts of life insurance are needed

– To meet a temporary need, eg. Mortgage– To guarantee future insurability of insured

• Eg. Conversion in future to whole life.

• DisadvantagesDisadvantages

– Premiums increase with age– No cash value

• Whole Life InsuranceWhole Life Insurance

– Insured for Entire life or age 100– Premiums do not increase, but more expensive than term ins.– Policy Loan– Cash value builds up earning interest

• Types of whole lifeTypes of whole life

– Ordinary life (straight life)• Premiums paid until

insured dies or age 100– Limited Payment policy– Single Premium

45 65 85 100$0

$100

,000

Age of Insured

Dollars

Death Benefit

Premium

• Types of whole lifeTypes of whole life

– Modified Premium• Low initial premium

– Modified Coverage• Reduction in death benefit

45 55 65 85 100

$0$1

00,0

00

Age of Insured

Dollars

Death Benefit

PremiumModified Premium

Policy

Continuous PremiumPolicy

• Universal Life InsuranceUniversal Life Insurance

– Flexible premium life policy– Policy face value can be increased / decreased– Cash value builds up

• Guaranteed Interest provided – Excess interest increases cash value

• Partial cash withdrawals option

Premium depositsfrom owner

Credited interestfrom insurer

Cost ofinsurance

Expenses

Cash value

• Variable life insuranceVariable life insurance

– Greatest potential for cash value increases

– Face amount & cash value vary with investment made by insured

– Separate account

– Must comply with securities laws

Premium depositsfrom owner

Credited interest based oninvestment performance

of insured portfolio

Cost ofinsurance

Expenses

Cash value

45 65 85 100

$0$1

00,0

00

Age of Insured

Dollars

Death Benefit

Premium

Cash V

alue

• Variable Universal life insuranceVariable Universal life insurance

– Combination of variable & universal life insurance

– Must comply with securities laws

Premium depositsfrom owner

Credited interest based oninvestment performance

of insured portfolio

Cost ofinsurance

Expenses

Cash value

45 65 85 100

$0$1

00,0

00

Age of Insured

Dollars

Death Benefit

Premium

Cash V

alue

• Endowment life insuranceEndowment life insurance

– Greatest potential for cash value increases

– No Federal tax benefits

– More of investment product

– Maturity Date

Premium depositsfrom owner

Credited interest based oninvestment performance

of insured portfolio

Cost ofinsurance

Expenses

Cash value

45 65 85 100

$0$1

00,0

00

Age of Insured

Dollars

Death Benefit

Premium

Cash V

alue

Policy’s Net amount at risk = Face amount – Policy reservePolicy’s Net amount at risk = Face amount – Policy reserve

Cash value at a glance

Here's an illustration of how much cash value a 35-year-old, non-smoking male would build up over a six-year period in a $100,000 universal life insurance policy with a $1,200 annual premium. Six percent interest is being earned on the cash value.

Key TermsKey Terms

YearMortality expense

Total cash value

Percentage change in cash value from previous year

2000 $122.69 $1,008.71 -

2001 $127.25 $2,073.27 51.3%

2002 $132.52 $3,196.29 31.5%

2003 $139.66 $4,379.39 27.0%

2004 $147.22 $5,625.68 22.2%

2005 $155.46 $6,923.03 18.7%

2006 $165.17 $8,319.68 16.8%

• Any Doubts?…Any Doubts?…

• Waiver of Premium for Disability (WP) benefitWaiver of Premium for Disability (WP) benefit

– Premium waived if the insured is disabled

– Total disability

• Inability to perform essential acts of her own occupation or any other

occupation for which she is reasonably suited by education, training, or

experience

– Limitations

• Waiting period of 3-6 months

• Cover disabilities that begin during the age span 15-65.

• No change in premium frequency, once disability begins

• Exclusion of some risks (intentional injuries, pre-existing conditions etc.)

RidersRiders

• Waiver of Premium for Payor benefitWaiver of Premium for Payor benefit

– Premium waived if policyowner dies or becomes disabled

– Policyowner required to provide evidence of his insurability

– Total disability defined in two parts

• First 2 years, if unable to perform essential acts of his own occupation

• After 2 years, normal definition applies

– For third party policies

• Juvenile insurance policy

• Disability Income benefitDisability Income benefit

– Monthly income benefit if totally disabled

– Amount is a fixed $ amount per $1,000 of life coverage

– Waiting period of 3-6 months

RidersRiders

• Accidental Death BenefitAccidental Death Benefit

– Death to be caused directly by an accidental bodily injury

– Amount in addition to basic death benefit

– Double indemnity benefit

• Accidental Death & dismemberment (AD & D)Accidental Death & dismemberment (AD & D)

– Accident leading to loss of two limbs or sight in both eyes

– Amount = accidental death benefit or its sub multiple

RidersRiders

• Accelerated Death benefits (Living benefit riders)Accelerated Death benefits (Living benefit riders)

– To cover rising medical costs for elderly

– Death benefit amount reduced

– Available on policies with large face amount (administrative costs)

– Terminal Illness benefit (life expectancy of 12 months or less)

– Dread Disease benefit (cancer, AIDS, coronary bypass surgery)

– Long-Term Care benefit

• Guaranteed Insurability(GI) benefitGuaranteed Insurability(GI) benefit

– Right to purchase additional cover without providing evidence of insurability

RidersRiders

• Any Doubts?…Any Doubts?…

Health InsuranceHealth Insurance

• DisabilityDisability

– Long Term Disability (LTD)

– Short Term Disability (STD)

• DentalDental

– Preferred Dentist Program (PDP)

• Long Term Care (LTC) - Covers assistance needed during chronic illness Long Term Care (LTC) - Covers assistance needed during chronic illness

at nursing home or at home at nursing home or at home

• Long Term Disability (LTD)Long Term Disability (LTD)

– 10-1000 employee– Return-to-work & Rehabilitation incentives– Family Care Expense Benefits– Temporary Recovery benefits– Flexible Claim Management

• Short Term Disability (STD)Short Term Disability (STD)

– State Mandated disability coverage in NJ, NY and Hawaii– Automated Initial disability duration guideline

DisabilityDisability

DentalDental

• PDP – Preferred Dentist ProgramPDP – Preferred Dentist Program

– Managed Care – PPO– Network of 44,000 participating dentists– Fees, 10 – 30 % below community average– No employee lock ins or specialist referrals

Long Term CareLong Term Care

• Covers assistance needed during chronic illness due toCovers assistance needed during chronic illness due to

– Old age– Cognitive Loss (Alzheimer’s Disease)

• Unable to perform Activities of Daily LivingUnable to perform Activities of Daily Living

(ADLs)(ADLs)

– Eating – Bathing– Dressing– Transferring– Continence– Toileting

Long Term CareLong Term Care

• Types of Long Term CareTypes of Long Term Care

Nursing Home Nursing Home -- provide the kind of around-the-clock care that is usually beyond the physical and emotional resources of families and friends

Home Health Care - Home Health Care - includes a multitude of medical and personal services provided in your own home

Assisted LivingAssisted Living - - assisted living or other residential care facilities

Adult Day Care Centres - Adult Day Care Centres - a place that provides a program of activities and services to individuals in need of long term care. It is a helpful option for individuals living at home whose family caregivers work during the day and who require someone to be with them throughout the day

• Types of LTC insurance Types of LTC insurance

– Individual – Group – AARP

Federal Health Insurance ProgramsFederal Health Insurance Programs

• MedicareMedicare is the federal government's health insurance program for the is the federal government's health insurance program for the disabled and those 65 years and olderdisabled and those 65 years and older

– covers skilled care in a nursing home for the first 20 days (and a portion of the cost for the next 80 days) if admission follows a three-day hospital stay

• MedicaidMedicaid is a joint federal/state program that pays for health care for is a joint federal/state program that pays for health care for people with limited income and assets. people with limited income and assets.

– you must meet federal poverty guidelines for income and assets and may have to "spend down," or use up most of your assets

• Any Doubts?…Any Doubts?…

Retirement Savings PlansRetirement Savings Plans

                                         

Retirement Savings PlansRetirement Savings Plans

• AnnuitiesAnnuities

• Pension PlansPension Plans

• Profit Sharing PlansProfit Sharing Plans

Retirement Plans Vs. Life Insurance ? Live or Die

AnnuitiesAnnuities

• What’s an annuity ?What’s an annuity ?

– “An annuity is an investment vehicle sold primarily by insurance companies.”

– Insurer promises to pay a stipulated income to the annuitant for a long period

• Why annuities ?Why annuities ?

– To make sure you don’t outlive your retirement savings !

Time Value of Money...Time Value of Money...

Looking at the time value of money, you realize there is no such thing as starting too early to save for retirement. The sooner you start, the better,because your money has more time to multiply.

AnnuitiesAnnuities

• How long are you going to live ?How long are you going to live ?

– A life time annuity pays retirement income no matter how long you live

• What are the types of annuities ?What are the types of annuities ?

– Based on starting date: Immediate or Deferred– Based on premium : Single or periodic premiums (level or flexible)– Based on investment Char: Fixed or Variable

• Deferred AnnuityDeferred Annuity

– Payout period– Accumulation period

30 60 90 100

$1,0

0

Age of Annuitant

Dollars

AnnuityConsideration

Annuity Payment

AccumulationPeriod

Payout period

AnnuitiesAnnuities

• Parties to an annuity contractParties to an annuity contract

– Annuitant• Person on whom the terms of the annuity measured

– Annuity owner– Annuity beneficiary– Payee

• Annuity calculation depend upon:Annuity calculation depend upon:

– Annuitant’s age– Annuitant sex– Principal sum– Credited interest– Insurer expenses

Type of annuitiesType of annuities• Life AnnuityLife Annuity

• Certain AnnuityCertain Annuity

• Temporary Life AnnuityTemporary Life Annuity

• Joint & survivor AnnuityJoint & survivor Annuity

• What is this jargon ?What is this jargon ?

– Annuity period– Contingent beneficiary– Maturity Date– IRA (Individual Retirement Account / Annuity)

Anthony received a lump-sum amount of $10,0000 from his employer Anthony received a lump-sum amount of $10,0000 from his employer when he retired at the age of 65. He used this amount to purchase an when he retired at the age of 65. He used this amount to purchase an annuity from MetLife to support himself . MetLife will pay him $500 annuity from MetLife to support himself . MetLife will pay him $500 each month for his entire life.each month for his entire life.

An exampleAn example

Annuitization in a nut shellAnnuitization in a nut shell

Straight Life AnnuityMaturity Date

$ $ $ $ $Annuitant Dies

$ $ $ $ $ $ $ $

Pension PlansPension Plans

• Employer establishes a plan to provide its employees with a pensionEmployer establishes a plan to provide its employees with a pension

• Defined benefitDefined benefit

– Monthly annuity defined– Plan sponsor to deposit enough assets

• Defined contributionDefined contribution

– Contribution defined (% of salary)

• What is this jargon ?What is this jargon ?

– 401(K) • A qualified thrift and savings plan• Matching contribution by employer• Tax Deferral advantage

Defined Contribution Pension PlanDefined Contribution Pension Plan

• Describes the annual contribution that the Describes the annual contribution that the employer will deposit into the plan on employer will deposit into the plan on behalf of each plan participantbehalf of each plan participant

• Specified % of participants salarySpecified % of participants salary• At retirement, the amount accumulated is At retirement, the amount accumulated is

available as lump sum or as monthly available as lump sum or as monthly annuityannuity

• Amount of benefit each retiree receives Amount of benefit each retiree receives depends upon the size of accumulated depends upon the size of accumulated funds funds

• Employer knows in advance exactly how Employer knows in advance exactly how much will it cost each year to fund the much will it cost each year to fund the plan.plan.

• Less complex requirements imposed by Less complex requirements imposed by ERISAERISA

• Defines the amount of benefit to be Defines the amount of benefit to be received at retirementreceived at retirement

• Usually a monthly annuityUsually a monthly annuity• Plan sponsor obligated to deposit enough Plan sponsor obligated to deposit enough

assets to provide promised benefitsassets to provide promised benefits• Actuary determines the amount of Actuary determines the amount of

contributions needed to fund the plancontributions needed to fund the plan• Based on estimates ofBased on estimates of

• Employee mortalityEmployee mortality• Employee turnoverEmployee turnover• Future salariesFuture salaries• Administration expensesAdministration expenses• And plan investment earningAnd plan investment earning

• Employer depends on actuarial estimates Employer depends on actuarial estimates of annual costs of funding the planof annual costs of funding the plan

Defined Benefit Pension Plan

Finally……..Finally……..

• Why insurance?Why insurance?

• What is insurance?What is insurance?

• What are the various forms of insurance organizations in US?What are the various forms of insurance organizations in US?

• Key concepts related to insurance policyKey concepts related to insurance policy

• How is an insurance policy priced?How is an insurance policy priced?

• Key terms - demystify the jargon!Key terms - demystify the jargon!

• What are the various types of Life & Health Insurance?What are the various types of Life & Health Insurance?

• What are the typical riders? What are the typical riders?

• What are the different Retirement Savings Plans?What are the different Retirement Savings Plans?

Thank YouThank You

• Any Doubts?…Any Doubts?…