INTROCUTION TO INSURANCE

W h a t i s In su r a n c e ?

Life insurance is a form of insurance that pays monetary

proceeds upon the death of the insured covered in the policy.”
Insurance is a contract between two parties whereby one party called
insurer undertakes in exchange for a fixed sum called premiums, to pay
the other party called insured a fixed amount of money on the
happening of a certain event."

I n su r a n c e i s a pr o t e c t i on agai nst fi nanci al l oss ar i si ng on

t h e h a p p e n i n g of a n u n expect ed event . I nsur ance com pani es
c o l l e c t pr e m i u m s to p r ovi de f or t hi s pr ot ect i on. A l oss i s
p a i d o u t o f t h e p r e m i um s col l ect ed f r om t he insur i ng publ i c
a n d t h e In su r a n c e Co m pani es act as tr ust ees t o t he am ount
c o l l e c t e d . The cost of life insurance varies depending on such
factors as the insured's age, health, and occupation. For example,
the premium for a 25-year-old, male, non-smoker in excellent
health will be far less expensive than a similar policy for a 65-year-
old male smoker.

F o r E x a m p l e , i n a L if e P ol i cy, by payi ng a pr em i um t o t he
I n su r e r , t h e f am i l y o f t he i nsur ed per son r ecei ves a f i xed
c o m p e n sa t i o n o n t h e deat h of t he i nsur ed. With whole life and
variable life insurance, a portion of each premium pays for the insurance and the remainder
serves as a tax-free investment. A whole life policy sets a premium at the beginning of the
policy and that premium does not change over the life of the policy.
S i m i l a rl y , i n c a r i n su r a nce, i n t he event of t he car m eet i ng
wi t h a n a c c i d e n t , t h e i nsur ed recei ves t he com pensat i on t o
t h e e x t e n t of d a m a g e .

I t i s a sy st e m b y wh i ch the l osses suf f er ed by a f ew ar e

sp r e a d o v er m a n y , e x p o sed t o si m i l ar r i sks.

W h y sh o u l d y o u ta k e In su ran ce?

There are many reasons why we need life insurance. It's

important to consider your own personal situation. Decide why
you need life insurance and who you want to provide for with
your policy. How will you be able to satisfy all those needs? Better
lifestyle, good education, your long desired house. But again - you just
cannot fritter away all your earnings. You need to save a part of it for the
future too - a wise decision. This is where insurance helps you.

Insurance is desired to safeguard oneself and one's family against

possible losses on account of risks and perils. It provides financial
compensation for the losses suffered due to the happening of any
u n f o r e s e e n e v e n t s . Even for the village farmer insurance holds a lot of
potential. Considering how dependent our agricultural system is on the
monsoon, the farmer sees a dim future. The uncertainty of the monsoon too
can be taken care of by insurance. Looking at the advantages of an insurance
policy a number of farmers have gone in for insurance. Insurance has become
a necessity today. It provides timely financial as also rewards with bonuses.

Certain Insurance contracts are also made compulsory by

legislation. For example, Motor Vehicles Act 1988, stipulates that a
person driving a vehicle in a public place should hold a valid
insurance policy covering “Act" risks. Another example of
compulsory insurance pertains to the Environmental Protection Act,
wherein a person using or carrying hazardous substances (as
defined in the Act) must hold a valid public liability (Act) policy.

W h o p r o v i d e s In su r a n ce?

In India, prior to liberalization Insurance protection was made

a v a i la b l e t h r o u g h P u b l i c s e c t o r I n s u r a n c e C o m p a n i e s , n a m e l y ,
Life Insurance Corporation of India (LIC) and the four
s u bs i d i a r i e s o f G e n e r a l I n s u r a n c e C o r p o r a t i o n o f I n d i a ( G I C ) .

By the passing of the IRDA Bill, the Insurance sector has been
opened up for private companies to carry on Insurance
business.

W h a t i s t h e p r o c e d u r e t o ob t ai n i n su ran ce?

The simplest procedure to obtain insurance is:

1. Approach the Insurance Companies directly or
through Insurance agents of the concerned companies or
through Intermediaries.
2. Complete a proposal from giving full details.
3. Submit Date of Birth Certificate and other relevant
documents.

I n s u r a n c e c o n t r a c t s a re b a s e d o n g o o d f a i t h i . e . t h e d e t a i l s
furnished by the proposer are accepted in good faith and this
will form the basis of the contract.
 HDFC STANDARD LIFE

HDFC Standard Life, one of India's leading private life insurance companies,
offers a range of individual and group insurance solutions. It is a joint venture between
Housing Development Finance Corporation Limited (HDFC), India's leading housing
finance institution and Standard Life plc, the leading provider of financial services in the
United Kingdom. HDFC Standard Life's product portfolio comprises solutions, which
meet various customer needs such as Protection, Pension, Savings, Investment and
Health. HDFC Standard Life continues to have one of the widest reaches among new
insurance companies with 568 branches servicing customer needs in over 700 cities and
towns. The company has a strong presence in its existing markets with a base of 2,00,000
Financial Consultants.

Products of HDFC
 Protection Plan
 Retirement Plan
 Saving and investment Plan
 Health Plan
 Children's plans

Vision & Values

Vision
'The most successful and admired life insurance company, which means that we are the most trusted
company, the easiest to deal with, offer the best value for money, and set the standards in the industry'.

'The most obvious choice for all'.

Values
Values that we observe while we work:

• Integrity

• Innovation

• Customer centric

• People Care "One for all and all for one"

• Team work

• Joy and Simplicity

Protection Plan

• HDFC terms assurance plan

• HDFC premium guarantee plan
• HDFC loan cover term assurance plan
• HDFC home loan protection plan

1. HDFC Term Assurance Plan

This plan is designed to help secure your family's financial needs in case of uncertainties. The plan does this
by providing a lump sum to the family of the life assured in case of death or critical illness (if option is
chosen) of the life assured during the term of the contract. One can choose the lump sum that would replace
the income lost to one's family in the unfortunate event of one's death. This helps your family to maintain
their financial independence, even when you are not around.

Features

2. HDFC Premium Guarantee Plan

HDFC Premium Guarantee Plan is an insurance plan that comes with twin advantage of protection and
return of premiums* on maturity. So, you can enjoy life knowing that your family's financial independence is
secure even in your absence. And your premiums are yours on your survival at maturity.
3. HDFC Loan Cover Term Assurance Plan
This plan aims to protect your family from your loan liabilities in case of your unfortunate demise within the
policy term. It provides the beneficiary with a lump sum amount, which is a decreasing percentage of the
initial Sum Assured. This means that as the outstanding loan decreases as per the loan schedule, the cover
under the policy also decreases as per the policy schedule.

4. HDFC Home Loan Protection Plan

This plan aims to protect your family from your loan liabilities in case of your unfortunate demise within the
policy term. It ensures that your family does not lose the dream house that you have purchased for them, in
case you are not around to repay the outstanding monthly installments on your housing loan. This provides
you with the comfort of knowing that in your absence, a sum of money will be available towards repaying
your housing loan, making sure that your family will be secure in your family home.

Children's plans

Children's Plans helps you save so that you can fulfill your child's dreams and aspirations. These plans go a
long way in securing your child's future by financing the key milestones in their lives even if you are no
longer around to oversee them. As a parent, you wish to provide your child with the very best that life offers,
the best possible education, marriage and life style.
Most of these goals have a price tag attached and unless you plan your finances carefully, you may not be
able to provide the required economic support to your child when you need it the most. For example, with
the high and rising costs of education, if you are not financially prepared, your child may miss an opportunity
of a lifetime.

1. HDFC Children's Plan

As a parent, your priority is your child's future and being able to meet your child's dreams and
aspirations. With our HDFC Children's Plan, you can start building your savings today and ensure a
bright future for your child. This 'With Profits' plan is designed to secure your child's future by giving
your child (Beneficiary) a guaranteed lump sum on maturity or in case of your unfortunate demise, early
into the policy term.
2. HDFC SL YoungStar Super II
There is no bigger joy than being able to fulfill your child's dream on your own. With HDFC SL YoungStar
Super II you can fulfill your child's immediate and future needs. So tomorrow when your child needs your
support you don't have to depend on anyone else.

3. HDFC SL YoungStar Super Premium

With HDFC SL YoungStar Super Premium you can fulfill your child's immediate and future needs- all on
your own. Start saving now with this unit linked insurance plan and be assured that savings for your child will
continue, even in your absence. This plan offers you choice of cover options and benefit payment
preferences- all designed to suit your needs.
 Retirement Plans
Retirement Plans provide you with financial security so that when your professional income starts to ebb,
you can still live with pride without compromising on your living standards. By providing you a tool to
accumulate and invest your savings, these plans give you a lump sum on retirement, which is then used to
get regular income through an annuity plan. Given the high cost of living and rising inflation, employer
pensions alone are not sufficient. Pension planning has therefore become critical today.

Types of retirement plans

• Hdfc personal pension plan
• Hdfc immediate annuity
• Hdfc SL pension maximums

1. HDFC Personal Pension Plan

Today, you are busy climbing the ladder of success and realizing your dreams. Today, time is with you. Just
take a moment and think. Will you be able to continue at the same pace? Will your income be the same
forever? Will you be able to live life on your own terms even after you retire? The HDFC Personal Pension
Plan is a 'With Profits' insurance policy that is designed to provide a post-retirement income for life with the
freedom to choose your retirement date.
2. HDFC Immediate Annuity
The HDFC Immediate Annuity is a contract that uses your capital to provide you with a guaranteed gross
income through out your lifetime or over a period of your choice. The income is guaranteed and is
unaffected by the rise and fall of interest rates. This means you can plan your life the way you want it to be,
safe in the knowledge that your gross income will not fall during the period you have selected. The HDFC
Immediate Annuity offers a number of options to meet all your income needs.

3. HDFC SL Pension Maximus

HDFC SL Pension Maximus is a single premium unit linked pension plan which is crafted to maximiser your
returns and assists you to live retirement days to a maximum- a king size life. This pension plan is designed
to build a corpus during the policy term so that you can enjoy post retirement income for life.
 Savings & Investment Plans
You have always given your family the very best. And there is no reason why they shouldn't get the very
best in the future too. As a judicious family man, your priority is to secure the well-being of those who
depend on you. Not just for today, but also in the long term. More importantly, you have to ensure that
your family's future expenses are taken care, even if something unfortunate were to happen to you.

Types of saving & investment plans

• Hdfc endowment assurance plan
• Hdfc SL crest
• Hdfc SL progrowth super ll
• Hdfc SL progrowth flexi
• Hdfc SL progrowth maximiser
• Hdfc SL new money back plan
• Hdfc single premium whole of life insurance plan
• Hdfc assurance plan
• Hdfc saving assurance plan
• Endowment gain insurance plan
• Classicassure insurance plan