Family Economics and Consumer Education

Family Economics And Consumer Education 3 (2+1)

Lesson 10 :Avenues for Savings and Investments

Basic life insurance policies of Lic of India are as follows

1. Whole life Insurance
2. Limited payment life Policy
3. Endowment Policy
4. Money back policy

1. Whole life Policy: Under this policy the insured person has to pay premium through out his life time. This is considered as the cheapest form of policy. However, the insured has the burden of paying premium even after retirement when the regular salary income is reduced. Premium payment can be monthly, quarterly, half yearly or yearly.
2. Limited payment life Policy: This is considered as the best form of life insurance policy for the family and individual. The insured is enabled to pay the entire premium during the ordinary and vigorous and productive years. The insured is returned a part or the whole of the assured sum later on in the life when they may become a burden.
3. Endowment Policy: This is the most popular form of life insurance. It not only makes provision for the family of insured in the event of his premature death but also ensures a lump sum to the same person who had insured. The insured amount becomes payable at the end of endowment term which may vary from 5 years to 20 years or 50.
4. Money back policy: This policy has the advantage of getting lumpsum money for the old age of the insured or his /her family or at periodic intervals. In use of other policies, the full amount insured is payable to the beneficiary only at the end of the endowment period. The Life Insurance Corporation has introduced some other policies from time to time. They are,

• Jeevan Dhara
• Jeevan Sathi
• Jeevan Akshaya
• Jeevan Mitra
• Own your Home

1. Jeevan Dhara: Ensures a regular post retirement income. It ensures savings and provides a good social security measure. A person can get some amount of money in between the insured period besides getting insurance coverage and a lumpsum amount at the end of the insured period.
2. Jeevan Sathi: This plan covers both husband and wife. The sum assured together with bonus are payable in the event of survival to maturity of either or both.
3. Jeevan Akshaya: This is a voluntary personal plan. It provides life long pension with attractive returns, absolute security guaranteed insured some, bonus and income tax relief. This plan suits self employed persons or persons working in private companies where there is no provision for pension.
4. Jeevan Mitra: Under this plan, in the event of death of the insured, the basic life insurance protection shall be double the basic sum insured which otherwise shall be provided on maturity to the insured.

The family can evaluate the policies on the basis of merits and its needs endowment and money back policies are for insured who want to enjoy the benefits when are still alive. On the other hand whole life policy is preferable for those who want to provide protection to the family after their death.
Insurance works as a substitute for the uncertainly of life. It is a form of protection for the family against the financial loss arising from death of bread winner.
In case of any maturity like death of the insured person, the insurance company pays the amount to his nominee.
Advantages Of Life Insurance Savings:
Life insurance is considered a better form of saving compared to other form of savings because,

1. Insurance encourages savings and thrifts
2. Insurance is good for easy settlement and protection for the policy holders.
3. Insurance policy is readily marketable or suitable for quick borrowing.
4. Insurance provides tax relief.

Private insurance plans include all forms of health insurance that are not funded by the government.
Purpose These plans are intended to protect their beneficiaries from the high costs that may be incurred for health care. Most private insurance plans in the United States are employment-based.
Top Ten Insurance Company
Below is a list of the Top 10 insurance companies in India and their contact details zone wise

Insurance Company	Products and Services
LIC Life Insurance Corporation of India	Insurance Policies -Jeevan Anurag Unit Plans- Samridhi Plus,Pension Plus Special Plans- Jeevan Madhur, Jeevan Mangal, Group Schemes
ICICI Prudential Life Insurance Co Ltd	Education insurance plans Smart kid New Unit-Linked Regular Premium, Smart Kid Regular Premium Savings (all ULIP) -Life Time Super, Premier Life Gold, Life Time Plus, Premium guarantee plans, Invest Shield Cash Back protection plans (All Traditional plans)- Life Guard Save 'n' Protect Home Assure Health care plans Crisis Cover Diabetes Care/ Diabetes Care Plus Cancer Care
Bajaj Allianz Life Insurance Co Ltd	Insurance Policies iGain III Max Advantage Health care plans Star Package Personal Guard Silver Health Travel Insurance Student Elite Plan Brilliant Minds
SBI Life Insurance Co Ltd	Individual Plans SBI Life - Unit Plus Super SBI Life - Smart Wealth Assure Group Plans Group Micro Insurance Plans Group Loan Protection Products
Reliance Life Insurance Co Ltd	Protection Plans Reliance Life Insurance Money Multiplier Plan Reliance Special Term Plan Child Plan Reliance Child Plan Savings & Investment Plans Reliance Life Insurance Pay Five Plan Reliance Life Insurance Classic Plan - Limited Premium Reliance Life Insurance Highest NAV Advantage Plan Reliance Life Insurance Money Multiplier Plan North Zone: Level - II, C 4-5, Agrawal Cyber Plaza,Netaji Subhash Place,DelhiDelhi, 110092 011-32229807
HDFC Standard Life Insurance Co Ltd	Protection Plans HDFC Premium Guarantee Plan Savings and Investment Plans HDFC SL ProGrowth Flexi ClassicAssure Insurance Plan HDFC SL ProGrowth Maximiser
Birla Sun Life Insurance Co Ltd	Health and Wellness Solutions BSLI Saral Health Plan BSLI Bachat Money Retirement Solutions BSLI Dream Life Plan BSLI Immediate income Plan Rural Solutions Birla Sun Life Insurance Bima Dhan Sanchay Birla Sun Life Insurance Bima Kavach Yojana
Max New York Life Insurance Co Ltd	Life Plans 20 year Endowment Max New York Life Platinum Protect Life Gain™ Plus 25 Growth Plans Max New York Life Flexi Fortune Max New York Life Shubh Invest Health Plans LifeLine MediCash™ Plus LifeLine Safety Net™
Kotak Mahindra Old Mutual Life Insurance Ltd	Protection Plans Kotak eternal Life Plans Saving and Investment Plans Kotak ace investment Plan Kotak surakshit Jeevan Child Plans Kotak headstart Child Assure
Aviva Life Insurance Company India Ltd	Protection Plans Aviva LifeShield Platinum Aviva LifeShield Advantage Fund Management Rural Plans Aviva Anmol Suraksha Aviva Grameen Suraksha Savings Aviva Dhan Vriddhi Aviva LifeBond Advantage