Welcome to the presentation

What is insurance?
Why take insurance?
How much insurance cover do we need?
Why Life Insurance Corporation of India?
What is Financial Planning?
Why Financial Planning is Important?
What are the benefits of sound Financial Planning.
Human Life Value concept?
What is Employer-Employee Scheme?
What are the benefits of Employer-Employee Scheme?
 What is Insurance?
• Insurance is an arrangement by which a company or the state
undertakes to provide a guarantee of compensation for specified loss,
damage, illness, or death in return for payment of a specified
premium.
• A arrangement providing protection against a possible eventuality
• An 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.
• It is a contract, represented by a policy in which an individual or entity
receives financial protection or reimbursement against losses from an
insurance company.
 Why should we buy insurance?
•
•
Risk Management
Payoff Debt
• Forced Savings
• Achieve long term goals • Loans against policies
• Retirement and Estate Planning
• Recovered losses • Corporate Social Responsibility
• Peace of Mind and sense of security • Contribution to nation building
• Higher standard of living
• Tax advantage
activities
• Provide for family in the event of death • Generates employment
• Covers health care costs opportunities
• Managing the risk of ownership in small business
in the event of death of a partner. • Risk transfer
• Maturity income
• Life long regular pension
How much insurance cover do I need in life?
• Human Life Value = Total life time earning of an individual + Total
Savings and Investments
• Human Life Value is yet to be fulfilled needs of all the dependents of
an individual (primary income earner), plus all the outstanding
liabilities.
• HLV = Monthly Expenses * 12 months * 20 years * 7% inflation
OR
• Underwritter's Formula = Annual Income * 30
OR
• Total Insurance Premium = 10% of Annual Income
 Why LIC of India?
LIC is the oldest, the largest and the most profitable company in India
LIC of India funds 25% of Government of India expenses
LIC of India provides highest bonus (returns) in the industry
Highest Claim Settlement Ratio in the industry over 98.5%
LIC is known as "Pension Provider of India"
LIC Shareholding pattern- 95% Policy holders 5%- Govt. Of India
LIC is the biggest institutional investor in India share market.
80% of LIC's investment goes in Government Bonds.
LIC invests more than Rs. 5 trillion in Indian stock markets.
LIC has an Asset Base of Rs. 20,00,000 Crore as of March 2017
 What is Employer-Employee Scheme?
• The employer-employee structure is one where the company buys
insurance but the beneficiary is an employee.
• It is a benefit given by the company to select employees.
• The employer-employee insurance policy works as a reward program
for the employees.
• The insurance is also relevant for promoter run companies where the
promoter would like his or her insurance expenses paid.
 Benefits of Employer-Employee Scheme
• Reduce attrition and promote employee satisfaction
• Enhances motivation of employees
• Employees get the insurance cover without paying for it.
• Tax free maturity and death benefit
• A sole proprietor or a corporate or any other legal firm with minimum 5
employees can buy this policy.
• NRI employees can also apply for the policy if the company is registered in India
• An employer can decide the quantum of insurance on the basis of CTC,
qualification, experience and previous record of the employee.

• NRI employees can also apply for the policy provided employer has a registered office in India.