Page 34 - IC23 life insurance application

Section E

Solutions - matching needs with products available

An insurance agent is not so much a salesman, but a sales assistant who assists the

prospect to solve his financial problems. Every individuals' problems are unique and

multiple. Sometimes a single insurance plan may be adequate to solve some of his

problems. Sometimes it may be necessary to suggest a combination of two or more

plans for a comprehensive solution to all his problems.

Before an agent treads on this role of solver of financial problems, it is essential that

he would be well acquainted with the varieties of plans that his company offers, their

varied benefits and how they can be adjusted to the different conditions. We will try

to describe below the plans offered by LIC, grouping them according to the purpose

they are best designed for:

Whole life policies :- Table no. 2 is a with profit whole life policy. The premium is

payable for 35 years or age 80 which ever is later or death if earlier. There are table

3 and 5 which are without profit and with profit (limited payment whole life plans).

With profit means that the plan is eligible for annual bonus declared as a result of

valuation. The without profit policy does not get bonus. Hence the premium for with

profit policy is higher compared to a without profit policy due to bonus loading.

Limited payment whole life policy means that the premium paying period can be

fixed in advance say to 10 years or 20 years or 30 years, though the claim remains

payable only on death.

Copyright Dr Rakesh Agarwal Sashi Publications Private Limited

Sashi Publications Pvt Ltd Call 8443808873/ 8232083010