moneyback and endowment

7/31/2019 Moneyback and Endowment

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Money Back and Endowment Policy

Members:

Amod GupteShreeta RegeRishabh RuiaParas SangleDivyakumar GuptaSheetal IyerShishir JadhavDnyaneshwar R.


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Moneyback Policy

Periodic return of a fixed percentage of thesum assured during policy tenure

Policy specific variation in:

i. The percentage of sum assured to be

receivedii. The number of instalments

iii. The intervening period between instalments

iv. Riders

Gives bonuses on the plans

The term of the plan varies between 10 25years


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Moneyback Policy

Policy owner outlives term:

Receives: Remaining corpus with bonus

Event of death before policy maturity:

Nominee or legal heirs get the insured sumwith bonus

Tax benefits under sections 80C and 10(10D) ofIncome Tax Act, 1961.

Popular when only limited investment optionswere available for investors

Now found to be expensive option


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Why Yes?

Combination of

Insurance with

Investment

Low Risk Element

Guaranteed Returns

Full Coverage in Event of

Death of Policy Holder

Save a little money each

month and at the end of

the year, you will be

surprised at how little you

have Ernest Haskins

Higher premiums

Lower Returns

Flexibility in choicepremiums and sum assured

to suit growing incomes

and lifestyle is missing

Why No?


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Premium Calculation

Results

Age : 30

Amount Insured :100000

Policy term(in yrs.)

: 20

Payment term

(in yrs.)

: 20

Yearly : 6,480.00

Half yearly : 3,290.00

Quarterly : 1,670.00

Monthly : 584.00

Results

Age : 40

Amount Insured :100000

Policy term(in yrs.)

: 20

Payment term

(in yrs.)

: 20

Yearly : 6,969.00



Monthly : 629.00

30 year old person 40 year old person


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SBI Life: Smart Money Back Insurance

Age 30

Gender Female

Premium Payment Frequency Yearly

Term(yrs) 12

Sum Assured(Rs) 1000000

Base Premium Yearly 102810

Premium for Riders Term(yrs) Sum

Assured(Rs)

Yearly

(Rs)

SBI Life - Accidental Total &Permanent Disability Benefit Rider

12 1000000 400

SBI Life - Accidental Death Benefit

Rider

12 1000000 500


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Aviva's Money Back

Age 30

Gender Female


Term(yrs) 12


Base Premium Yearly 115,160


Assured(Rs)

Yearly

(Rs)

Reliance Accidental Death and Totaland Permanent Disablement Rider

12 1000000 600


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Endowment Policy An endowment policy is a life

insurance contract designed to pay alump sum after a specified term (on its

'maturity') or on death. Typical

maturities are ten, fifteen or twenty

years. Endowment policy is type of life

insurance policy which provides

insurance cover and maturity benefits

too. Demise of policyholder- the Sum

Assured + Bonus is paid to the

beneficiary.

On survival - the accumulated amountalon with bonuses is aid.


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Why No?

Endowment policies are

debt heavy

Max returns 5% to 6% p.a.

No obligation by co. to

reveal amount and place of

our money invested

Bonus not payable in first year

Bonus will not compound

Why Yes? Under Section 80C you can

avail tax benefit, yearlypremium (not more than1lac) will be deducted fromtaxable income.

Under Section 10(10D) deathclaim is completely tax free.

Endowment plans have bothdeath and survival benefits.

The bonuses accumulateover time to give goodmaturity lump sum


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Premium Calculation

Results

Age : 30

Policy term

(in yrs.)

: 20

Payment term

(in yrs.)

: 20

Sum Assured :100000

Yearly : 4,896.00



Monthly : 442.00

Results

Age : 40

Policy term

(in yrs.)

: 20

Payment term

(in yrs.)

: 20

Sum Assured :100000

Yearly : 5,240.00



Monthly : 473.00

30 year old person 40 year old person


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SBI LIFE : ShubhNivesh Endowment

Assurance PlanAge 30

Gender Male


Term(yrs) 25


Premium Yearly 36950


Assured(Rs)

Yearly

(Rs)

SBI Life - Accidental Total &Permanent Disability Benefit Rider

25 1000000 2950

SBI Life - Accidental Death Benefit

Rider

25 1000000 500


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Reliance Endowment Plan

Age 30

Gender Male


Term(yrs) 25


Premium Yearly 34860


Assured(Rs)

Yearly

(Rs)

Reliance Accidental Death and Totaland Permanent Disablement Rider

25 1000000 1,103

Reliance Critical Conditions Rider 25 1000000 4,688


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Money Back Plan

Return a percentage of sumassured during policy period

Annual premium paid is

higher

Lower return as comparedto endowment plan

Higher liquidity

Endowment Plan

Sum assured is returned inlump sum at maturity

Annual premium paid is

lower

Higher return as comparedto money back plan

No liquidity


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End of Presentation

moneyback and endowment

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