Non-traditional Life Insurance Product
Delve into the world of non-traditional life insurance products like Universal Life Insurance, Variable Life Insurance Plans, and Unit-Linked Insurance Plans. These innovative plans offer a mix of insurance coverage and investment opportunities, allowing policyholders to tailor their premiums and potentially earn higher returns. Understand the unique features and benefits of each product to make informed decisions for your financial future.
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Non-traditional Life Insurance Product
Introduction:- Non-Traditional Insurance Plans are result of a new idea to reap better returns along with the provision of insurance. This plans fulfil both components of insurance and investments. Universal Life Insurance:- It is a form of permanent life insurance characterised by its flexible premiums. It allow policyholder within limits to decide the amount of premiums they wants to pay for the coverage. The major innovation was the introduction of completely flexible premiums after the first policy year. It also enables the policy holder to make partial withdrawals from the cash value that was available without the obligation.
Non-Traditional Life Products:- Non-Traditional life Insurance Products Variable Life Insurance Plans Unit Linked Insurance Plans
Variable Life Insurance Plans:- It is a kind of whole Life policy where the death benefit and cash value of the policy fluctuates according to the investment performance. The thus provides no guarantees with respect to either the interest rate or minimum cash value. It was first introduced in the US in 1977. A traditional cash value policy has a face amount that remains level throughout the policy term. The cash value grows with premium and interest earnings at a specified rate. The assets are placed in a portfolio of secured investment. Where insurer can thus expect to earn a study rate of return on the assets in this account. Assets comprising a variable life insurance policy s policy reserves, on the other hand, are held in a separate final that is not part of the policy s general investment account . In the US, this is referred to as a separate account, whereas in Canada, it is referred to as a segregated account.
Unit Linked Insurance Plans(ULIP s):- These plans were introduced in UK. In a situation of substantial investments that life insurance companies made in ordinary equity shares and the large capital gains and profits they made as a result. This policy provide the means for directly and immediately cashing on the benefits of a life insurer s investment performance. The units may be purchased by payment of a single premium or via a regular premium payments. Premium break up of Unit Linked Policies ULIP Premium Expenses Mortality Investment
The feature of its policy is its facility of choosing between different kinds of funds, which the unit holder can exercise. Each fund has a different portfolio mix of assets. The investor thus gets to choose between a broad option of debt balanced and equity funds. A debt fund implies investment of most of one s premium in debt securities like gilts and bonds . This fund invest major portion of the money in equity and equity related instruments. Invest money in government bonds, fixed deposits, etc. This funds invest in s mix of equity and debt instruments. Invest money in instruments such as treasury bills, certificate of deposit, commercial paper, etc.
SBI Life Insurance:- It is one of the leading life insurance in India and was establish in the year 2001. It is a joint venture between State Bank of India (SBI) and BNP Paribas Cardif (Life & property & casualty insurance company). BNP Paribas Cardif is one of the world leads in credit insurance and has received A grade from Standard & poor s (S&P) for it s life and non- life insurance business. SBI is one of largest banking group in India and also has 198 foreign offices in 37 countries and also feature in the fortune Global 500 list of the world s biggest corporations.
Non-Traditional Life Insurance plans of SBI:- 1. 1. SBI Life SBI Life- -Smart Guaranteed Saving plan: Smart Guaranteed Saving plan: - - It Provides protection cover to your family in case uncertainty and also gives additional benefits and savings. 2. 2. SBI Life SBI Life- -Flexi Smart plan: Flexi Smart plan:- - This plan doesn t allow any liquidity during the first 5 years of the contract. Policy holder can withdraw money from 6thpolicy year and it offers bonus interest to help your savings grow and also provides tax benefits. 3. 3. SBI Life SMART Money Back Gold: SBI Life SMART Money Back Gold:- - A Participating traditional money back insurance plan, and avail twin benefits of life cover as well as periodic income to meet your financial requirement at crucial points in life.
SBI Life-Flexi Smart plan Features:- Terminal bonus interest rate credited to policy account at the time of exit on account of maturity, death or surrender. An Interim bonus interest rate declared at the beginning of each financial year. Regular bonus interest rate at the end of every financial year. Two protection option available- Gold And Platinum Guaranteed minimum bonus interest rate of 1 % p.a Flexibility to increase your chosen policy term.
SBI Life-Flexi Smart plan Benefits:- For gold option, higher policy account value or sum assured. In case of unfortunate event of death of life assured, 105% of total premium paid as on the date of intimation of death claim. For platinum option: higher policy account value as applicable or 105 % of total premiums paid as on the date of intimation of death claim.
SBI Life SMART Money Back Gold Advantages & Features:- Life cover benefit irrespective of survival benefit already paid. It is participating money back plan The payment intervals are 4 variants in this plan & 4 plan options with different policy term & survival benefits payable at specific durations. 4 rider option at an affordable cost. Rebates on large sum assured. This plan offer guaranteed survival benefit of 110 to 125 of sum assured and is paid till maturity depending upon the variant chosen. If the Life insured dies with the policy tenure, the entire sum assured + simple reversionary bonus and terminal bonus is paid to the nominee irrespective of survival benefits already paid.
Four riders are: Accident Death Benefit Rides Accidental Total Permanent Disability Rider Term Assurance Rider Criti care 13 non-linked Rider.
Survival Benefit:- Options Term/ year 4 5 8 10 12 15 20 25 Total 1 12 20% 25 % 65% + vested Bonus 110% + Bonus 115% + Bonus 120% + Bonus 125% + Bonus 2 15 20% 25% 70% + vested Bonus 30% 3 20 10% 20% 60% Vested Bonus 30% 4 25 10% 10% 15% 60% vested Bonus
ULIP SBI Life insurance Plans:- SBI Life SBI Life- -Wealth insurance: Wealth insurance: It s a non-participating online unit linked insurance plan (ULIP) especially to enhance wealth as important as earning it. There are 2 options i.e. Growth and Balanced. The premium for this plan will be chosen through Automatic Asset Allocation(AAA) feature. When policy gets matured, funds flow from equity to money market. This wealth creation plan offers: This wealth creation plan offers: Providing security to cover your family needs in case of eventuality. Premium starting at Rs. 1000 Per month. Very simple to apply online. Liquidity through partial withdrawals from 6thpolicy year.
SBI Life SBI Life Maha An unique product which provides you insurance cover without any medicals. It also allows you to manage your investments according to your risk appetite and ensure to realise market related returns as your policy. Features: Features:- - No medical examination Guaranteed additions up to 90% of annualized premium. Twin benefits of market linked returns and insurance cover. Additional rider benefit like accidental death benefit linked rider. 4 fund options to enjoy market related returns as per your risk appetite Liquidity through partial withdrawals. Enhanced value at optimal costs. Tax benefits under sec 80c and sec10(D) of income tax act 1961. On completion of policy term, fund value will be paid. Higher of fund value or sum assured is paid in case of unfortunate event of death. Maha Anand II: Anand II:- -
SBI SBI Life unit Plus Super: Life unit Plus Super:- - In this premiums are invested in equity or debt markets as selected by the policyholder. The risk of investment borne by the policyholder and not by the insurance company. Features: Features:- - It s an unit linked plan and guarantee starts only from 10thpolicy year. Option to increase or decrease your sum assured is only from 6thpolicy year, 4 riders are available. In case of death nominee will get sum assured or maturity benefit after the policy term is over. Life insurance Premium paid up under sec.80C tax deduction of Rs. 1,50,000 is allowed each year. It has single premium payment term. Minimum will be 65000 & maximum will be up to 1,50,000. partial withdrawals are allowed in this policy after 5 complete policy year or the life assured is 8 years old. The minimum partial withdrawal is Rs. 5000 & maximum is up to 15% of fund value.
SBI Life SBI Life Saral An ULIP where premium amount is invested in the capital markets & plan value depends on market. Hence, the risk is borne by the policy holder and not by the insurance company. Features: Features:- - Guaranteed addition of up to 30% of annualised premium & no premium allocation charge from the 11thyear onwards with that option to avail rider benefits. In case of death, nominee gets the higher sum assured. At any point of time the minimum death benefit shall be 105% of total premiums paid. life insurance premiums paid up to Rs. 1,00,000 are allowed as deduction from the taxable income each year under sec.80 C. Single premium is not allowed. Partial withdrawals are allowed after 5 complete policy years and minimum amount should be Rs. 2000 & Maximum allowed is upto 15% of fund value. A maximum 2 partial withdrawals can be made in one policy year not more than 5 are allowed in the entire policy term. Saral Maha Maha Anand Plan: Anand Plan:- -
SBI Life Smart Scholar Plan: SBI Life Smart Scholar Plan:- - A non-participating insurance plan . The linked insurance product do not offer any liquidity during the first five years of the contract. This plan offer security for your child to achieve their dreams. The premium being waved in case of eventuality. The premium is flexible according to the needs of your child. Th3e policy can be withdrawn from 6thpolicy year. Features: Features:- - Policyholder will get lump sum amount at maturity. this plan provide accidental death benefit. In the event of death of the child, no sum assured is paid. The partial withdrawal is available from 6thpolicy holder. Tax benefits under sec 80C & 10D are available. Accident death benefit is paid only once either in event of disability or death. SBI will pay all future premiums at a future date.
ICICI PRUDENTIAL LIFE INSURANCE:- It is a joint venture between ICICI Bank ltd. and Prudential Corporation holdings Limited. It is the first insurance company listed in stock exchange. Prudential Corporation is a leading financial service group having headquarter in the UK . ICICI prudential was establish in the year 2001.
Life Insurance Plans Of ICICI:- Term Insurance Plan Smart Health ICICI Prudential Protect Smart ICICI Prudential
ULIP Plans of ICICI Prudential:- ICICI Pru Life Time Classic ICICI Pru Guaranteed Wealth Protector ICICI Pru Smart Kid Solution children Education Plan
Forms & Procedures of ULIP Life insurance Plans:- Prospectus Proposal Form Agents report Medical examiners report Non-Medical report Moral Hazard report Age proof Anti Money Laundering (AML) Know Your Customer (KYC) Free look Period.
