Individual Life


Conventional plans in life insurance:-

In this plan the insurance companies invest 80 to 85% in government securities, debentures, bonds, money market instruments, etc & 15 to 20% in equities. The portfolio of investment is never published by the insurance companies & the investment decision is purely in the hands of the insurance companies & the policyholder has no control on the investment strategy. But this are the most preferred plans till the private companies entered the indian market . Today also these plans are sold more than 50% by lic as the capital is secured & the life assured gets a reasonable returns on maturity without exposure to the risk of share markets. These plans are less flexible. The customer will always get a lower amount in case of surrender of policy anytime before maturity but instead of surrendering the policy he can opt for a loan against the policy which is around 90% of surrender value & the interest rate is also very low, in lic it is only 9% p.a.

The Basic Types Plans Are As Follows :-

Term insurance plan :-

This is the cheapest life insurance policy. In this policy the insurance is covered for a fixed amount for fixed term. If unfortunately the life assured passes away during the policy term than the full sum assured is paid to the nominee. If everything goes well and the life assured is alive on maturity than nothing is payable on maturity. It is just like a general insurance policy the only difference is that it is along term contract & not a yearly contract.

Whole life insurance plan :-

In this policy the risk cover continues for the whole life but the premium is either to be paid in single mode, limited payment or whole life. The sum assured is payable only on death either with or without bonus as per the policy condition.

Endowment insurance plan :-

In this plan the policy is for a fixed term & in case of unfortunate death the sum assured with or without bonus as per the policy condition paid to the nominee & if everything goes well than on maturity the Sum assured is paid to the life assured with or without bonus as per the policy conditions.

Money back insurance plan :-

This is also one type of endowment plan but in this plan very 3rd. 4th or 5th every a part of sum assured is paid to the life assured as survival benefit & in case of unfortunate death during the policy term the full sum assured without deduction of survival benefits will be paid to the nominee with or without bonus as per the policy condition & in case everything goes well the sum assured after deducting the survival benefits will be paid to the life assured with or without bonus as per the policy condition.

Unit Linked Insurance Plans

In this type of plans the insurance companies invest the funds as per the instructions of the policy holders. The policy holder has the option to invest his money in equity or debt & also he can do switches amongst the same. The insurance companies regularly publish the full portfolio of each scheme where they have invested the funds. They declare the nav on daily basis. The customer has the choice of selecting the premium as well as the insurance coverage on a specified premium i.e. he can take more insurance at a specified premium if his main purpose is insurance & he can take less insurance if his main purpose is returns.

Human Life Value :-

Human life value is the value for which the person should be insured for keeping his family after his unfortunate death in the same lifestyle as they are leaving today. They should earn the same income from the fund recd. from the policy by investing that fund in a government security. All his future planning for child’s education. Marriage, etc. should be considered for calculating the hlv.

Scoie has expertise in studying the needs of the customer & according to the needs which company & also which product is suitable to fulfill his/her needs. We also expertise in calculating the human life value & accordingly looking at the current income & current policies we suggest the policies of different companies which can make his/her family secured in case of unfortunate death.