LIC
LIC
Academic Task No.: 01 Academic Task Title: LIC Jeevan Anand Policy
Learning Outcomes
Declaration:
We declare that this Assignment is our work. We have not copied it from any other
student’s work or from any other source except where due acknowledgement is made
explicitly in the text, nor has any part been written for me by any other person.
Student’s Signature:
GAURAV ANAND
Registration no.: 11812257
In partial fulfillment for the requirements of the award of the degree
of
LIC’s Jeevan Anand Plan could be a traditional savings plan which not only
covers the insured for the chosen policy term, but the life cover continues after
the completion of the policy term till the complete lifetime of the insured. The
plan also earns bonuses during the plan term. Thus, the plan is an Endowment
cum Whole insurance Plan.
In case of death because of an accident before the age of 70, the nominee is
going to be paid an extra cover amount. this extra accidental benefit is capped at
Rs. 5 lakhs. just in case of permanent disability thanks to an accident, this
extra cover amount is paid in installments. No extra
premiums must be obtained these 2 additional benefits. Jeevan Anand may be
a life endowment plan that comes with a mess of advantages for the
policyholders throughout the term period. As per the plan, the insurance cover
continues even after completion of the premium payment term. within the event
of death of a private thanks to an accident, the plan offers an extra cover sum
which is capped at Rs.5 lakhs. But just in case the accident leaves a
policyholder with permanent disability, the plan takes care of the regular
financial needs by paying the sum assured in installments. These additional
benefits offered under LIC Jeevan Anand don't impose extra charges on the
premium amount.
LIC Jeevan Anand was launched on 1st Feb 2002 and was discontinued on 30th
September 2013. it's been replaced with the same plan with better features. look
at details of the LIC New Jeevan Anand Plan.
If the insured dies during the term of the plan, the Sum Assured and
the Accumulated Bonuses would be paid and therefore the plan would be
terminated.
In this case, the Sum Assured of Rs. 2.5 lakhs and accumulated bonuses till the
date of death would be paid and the plan would terminate. Bonus is declared
every year by LIC.
EXAMPLE 2 – Altaaf survives till the end of the policy term.
In this case, the Sum Assured of Rs. 5 lakhs and the accumulated bonus till
maturity would be paid to Arun and the risk cover under the plan would
continue. Later, whenever Arun dies, the Sum Assured of Rs. 5 lakhs would
again be paid to his nominee.
Maturity Benefit
When the plan term expires and therefore the insured is alive, the Sum Assured
and any accumulated bonuses are paid.
Death Benefit
The benefit depends on the year within which the insured dies.
If the insured dies within the policy term, the Sum Assured and
accumulated bonuses are paid.
If the insured dies after the completion of the plan term when the
Maturity Benefit is already been paid, the Sum Assured is paid.
PRODUCT CATEGORY
Maturity Benefit
If the chosen term of the plan comes to an end and the insured is alive, a
maturity benefit is paid. This benefit is the sum assured paid along with
the vested reversionary bonuses and any final additional bonus.
Death Policy
Provided all due premiums have been paid, the following death benefit
shall be paid.
On Death during the policy term: Death benefit, defined as sum of Sum
Assured on Death and vested Simple Reversionary Bonuses and Final
Additional bonus, if any, shall be payable. Where, Sum Assured on
Death is defined as higher of 125% of Basic Sum Assured or 10 times
of annualized premium. This death benefit shall not be less than 105%
of all the premiums paid as on date of death.
Rider is an additional cover which can be opted for along with Base
Policy
1. Paid-up value
If you have got paid the premiums for a minimum of the primary three years of
the policy, the policy acquires a paid-up value. If the long run premiums are
waived off, you'd not lose out on the plan benefits. in this case, the policy would
continue at a reduced paid-up value. The sum assured would be reduced and
would be calculated as follows –Paid-up sum assured = (number of premiums
paid / number of premiums payable) * sum assured
2. Surrender value
If the policy has acquired a paid-up value, you'll surrender the plan and avail the
surrender value if you are doing not want to continue with the coverage. The
surrender value is higher of the guaranteed surrender value or special surrender
value. The guaranteed surrender value would be calculated because
the aggregate surrender value of premiums paid and bonuses earned. The
special surrender value, on the opposite hand, would rely upon LIC and would
be determined from time to time.
3. Revival
4. Loan
Loans are available providing the primary three years’ premiums are paid.
The quantum of the loan depends on the surrender value acquired by the
plan.
ELIGIBILITY conditions
MINIMUM MAXIMUM
Sum Assured (in Rs.) 100000 No Limit
To buy LIC’s New Jeevan Anand Plan, one has to submit the following
documents:
Premiums paid
The premiums paid for the plan are exempt from taxation under Section 80C of
the Income Tax Act. The maximum exemption that can be availed is Rs. 1.5
lakhs.
Claims Amount
Maturity or death claims received would be tax-free under Section 10(10D) of
the Income Tax Act. There is no limit on the amount of claim received and the
entire claim would be tax-free.
Market structure
The government is not off course to sell a little of its equity in LIC because
it has not received any opposition to the proposal up to now. While stake
sale within the country’s largest and oldest life insurer will depend on market
conditions, the Finance Ministry has started work on finalizing modalities and
seeking necessary approvals. LIC’s initial public offering are going to
be significant in bringing transparency in operations of the Corporation, while
enabling the govt to boost funds through disinvestment.
Our sales process involved Jeevan Anand Policy selling. Our product being an
intangible one, it needs the corporate personnel to travel and persuade the
customer via addressing tohis doubts and concerns. we'd like to undergo
requisite interaction with the prospective customers to measure their mood
with relation to different price levels. because the sales personnel also
are attentive to the competitors’ price and, supported the market reaction and
customers’ sentiments, they will advise a more prudent price policy to the
management. The salesperson stimulates and generates enough interest within
the customer and helps him make the ultimate decision to shop for the
merchandise.
PROSPECTING
Cold Calling
Using this approach, we obtained the references for prospects from eminent
people of society. Using such references, the prospects are influenced to form a
buying decision since the recommendations of eminent personalities are taken
seriously.
Company’s Record
Pre – Approach
Approaching
Direct approach:
CONCLUSION
After completing the project it's concluded that LIC develop its various plans
and policies, flexible in nature, in step with the necessities of its targeted market
or customers and is thus beneficial to its customers in various ways. the
foremost important benefit it provides to its customers is that it's a government
owned company. This result in increase within the satisfaction level of its
customer that's why LIC has quite 200 million policyholders which is adequate
to the fourth largest country in world. Therefore, it's not only beneficial but
better than other insurance companies not only regarding its product but also its
services.