Life insurance

LIFE INSUARANCE BY POOJA MOTIANI

1. Importance Of Life Insurance Presented By: Pooja Motiani

2. Insurance INSURANCE  is a means of protection from financial loss. It is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss . A thing providing protection against a possible eventuality.

3. Nature Of Insurance

4. Type Of Insurance

5. Life Insurance LIFE INSURANCE is a protection against financial loss that would result from the premature death of an insured. The named beneficiary receives the proceeds and is thereby safeguarded from the financial impact of the death of the insured. The death benefit is paid by a life insurer in consideration for premium payments made by the insured.

6. Life Insurance Types 1. Term Life Insurance: Term insurance is a life insurance product offered by an insurance company which offers financial coverage to the policy holder for a specific time period. 2. Permanent Life Policy: The policyholder pays regular premiums until his death, upon which the corpus is paid out to the family.

7. Life Insurance Types 3. Endowment Plans : Endowment plans pay out the sum assured under both scenarios - death and survival. 4. Unit Linked Insurance Plans : ULIP is a life insurance product, which provides risk cover for the policy holder along with investment options to invest in any number of qualified investments.

8. Life Insurance Types 5. Cash Back Policy : Money back plan is a life insurance product as well as an investment plan which provides life insurance cover against death of the policy holder along with periodic returns as a percentage of sum assured.

9. Importance Of Life Insurance 1. Provide safety and security: Insurance provide financial support and reduce uncertainties in business and human life. It provides safety and security against particular event. There is always a fear of sudden loss. Insurance provides a cover against any sudden loss. For example, in case of life insurance financial assistance is provided to the family of the insured on his death. In case of other insurance security is provided against the loss due to fire, marine, accidents etc.

10. Importance Of Life Insurance 2. Generates financial resources: Insurance generate funds by collecting premium. These funds are invested in government securities and stock. These funds are gainfully employed in industrial development of a country for generating more funds and utilised for the economic development of the country. Employment opportunities are increased by big investments leading to capital formation.

11. Importance Of Life Insurance 3. Life insurance encourages savings: Insurance does not only protect against risks and uncertainties, but also provides an investment channel too. Life insurance enables systematic savings due to payment of regular premium. 4. Spreading of risk: Insurance facilitates spreading of risk from the insured to the insurer. The basic principle of insurance is to spread risk among a large number of people.

12. Importance Of Life Insurance 5. Medical support: A medical insurance considered essential in managing risk in health. Anyone can be a victim of critical illness unexpectedly. And rising medical expense is of great concern. Medical Insurance is one of the insurance policies that cater for different type of health risks. The insured gets a medical support in case of medical insurance policy.

13. Importance Of Life Insurance 6 . Promotes economic growth: Insurance generates significant impact on the economy by mobilizing domestic savings. Insurance turn accumulated capital into productive investments. Insurance enables to mitigate loss, financial stability and promotes trade and commerce activities those results into economic growth and development. Thus, insurance plays a crucial role in sustainable growth of an economy.

14. Importance Of Life Insurance 7. Source of collecting funds: Large funds are collected by the way of premium. These funds are utilised in the industrial development of a country, which accelerates the economic growth. Employment opportunities are increased by such big investments. Thus, insurance has become an important source of capital formation.

15. Conclusion Insurance is not an investment product , its a Protection instrument for your Family or any one your want to cover. There are other products for your investments. Life insurance is one of the most selfless things you’ll ever buy. It’s about making sure that the people you love the most are well looked after should the worst happen. Taking out life insurance could ensure that your family keep the home they’ve grown up in, or that your children go to university, even if you’re not around to help with the expense.