Insurance Final Project Megha

UNIVERSITY OF MUMBAI
PROJECT REPORT ON “Study on Joint Life Insurance Plans of Life Insurance Corporation of India”

SUBMITTED BY MEGHA.B.PATIL

PROJECT GUIDE PROF.KISHOR CHAUHAN

T.Y.B.Com. (Banking & Insurance) (SEMESTER VI) 2013-2014

SUSHILADEVI DESHMUKH VIDYALAYA AIROLI, SECTOE-4, NAVIMUMBAI 400708
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ACKNOWLEDGEMENT
I, Megha patil would take this opportunity to thank the University of Mumbai for providing me an opportunity to study on a project on Banking. This has been a huge learning experience for me. With great pleasure I take this opportunity to acknowledge people who have made this project work possible. First of all I would sincerely like to express my gratitude towards my project Guide Prof. kishor chauhan for having shown so much flexibility, guidance as well as supporting me in all possible ways whenever I needed help. I am thankful for the motivation provided by my project guide throughout and helped me to understand the topic in a very effective and easy manner. I would also like to thank, other teaching faculties of the college, my colleagues, Library staff and other people for providing their help as when required to complete this project. I acknowledge my indebtedness and express my great appreciation to all people behind this work.

-------------------MEGHA.B.PATIL

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DECLARATION

I, Megha patil student of Sushiladevi deshmukh vidyalaya, airoli, Studying in T.Y.B. Com (Banking & Insurance) in Semester VI hereby declare that I have completed this project on “Study on Joint Life Insurance Plans of LIC” as per the requirements of University of Mumbai as a part of the curriculum of B.Com. (Banking & Insurance) course and this project has not been submitted to any other University or institute for the award of any degree, diploma etc. the information is submitted by me is true and original to the best of my knowledge.

Date: - ---------------------

----------------------Megha Patil

Place: Airoli, Navi Mumbai.

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INDEX

SR. NO.

CONTENT

P.NO

1.

Introduction to Insurance Company

10-17

2.

Introduction to Life Insurance Corporation of India

18-28

3.

Introduction to Joint Life Insurance Corporation of India 29-39

4.

Services of Joint Life Insurance Plans Services of Joint Life Insurance Plans under LIC

40-46

5.

47-62

6.

CONCLUSION

63

7.

BIBLIOGRAPHY

64

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OBJECTIVE OF STUDY:-

After going through this unit you should be able to • Develop an understanding of life insurance basics and its importance • Understand various types of Joint life Insurance Plans offered by Insurance companies. • Mention the suitability of various Joint life insurance policies to different Persons with variety of needs. • Know various documents prepared by insurance company for a Joint life Insurance contract. • Understand pricing objectives and elements of Joint life insurance. • Understand procedure of underwriting of new business

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SCOPE OF THE STUDY

I study helped to me to know the preferences of the customers , their preferences of company, portfolio made of investment option for getting return and so on they prefer.

Research Methodology
This report is based on primary as well secondary data, however primary data collection was given more importance since it is overhearing factor in attitude studies. One of most importance users of research methodology is that it helps in identifying the problem, collecting, analyzing the required information data and providing an alternative solution to the problem. It also helps in collecting the vital information that is required by the top management to assist them for the better decision making both day to day decision and ones.

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DATA SOURCES

Research is totally on primary data. Secondary data can be used for the reference. Research has been made by primary data collection, and primary data has been collected by interacting with various people. The secondary data has been collected through various journals and websites.

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Executive Summary
This is an ordinary joint life plan where two or more lives are covered. Apart from husband and wife taking the policy, partners in business can also take a policy under this plan, to cover the refund of capital in the event of death of one of the partners. Sum assured is payable on first death of either of the lives assured or expiry of the term whichever is earlier. Premium ceases on death of the either of the lives assured, or expiry of the selected term whichever is earlier. Apart from husband and wife, partners in business can take these policies. Life Insurance Corporation (LIC) has recently introduced Jeevan Saathi plus which is a Joint Life plan offering the insured the benefits of market-linked return. Under this scheme a couple can take the insurance cover on their lives under a single policy. This is an Endowment Assurance Plan issued on the lives of husband and wife. The plan provides financial protection against death of both the lives. It pays the maturity amount on survival of one or both the lives to the end of the policy term Under a joint life policy the sum assured is payable on the first death and again on the death of the survivor during the term of the policy. Vested bonuses would also be paid besides the sum assured after the death of the survivor. If one or both the lives survive to the maturity date, the sum assured as well as the vested bonuses are payable on the maturity date. The premiums payable cease on the first death or on the expiry of the selected term, whichever is earlier.

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This is an endowment Insurance Plan given on the lives of spouses. The plan gives fiscal protection against death of both the lives. It pays the maturity sum on endurance of one or both the lives to the end of the plan period. Premiums are payable annually, half-annually, quarterly, and monthly or through salary deductions as optioned by the insured all through the period of the plan or till the first death of the lives covered, whichever is earlier. Bonuses continue to accrue on the basic sum assured till maturity or till the death of the second life, if earlier. In case one or both the lives survive to the maturity date, the sum assured as well as the accrued bonuses are payable on the maturity of the policy.

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CHAPTER 1 BASIC OF INSURANCE

THE CONCEPT OF INSURANCE The business of insurance is related to the protection of the economic values of asset every asset has a value. The asset would have been created through the efforts of the owner. The asset is valuable to the owner because he expects to get some benefits from it. The benefit may be an income or something else. It is a benefit because it meets some of his needs. In the case of a factory or a cow, the product generated by it is sold and income is generated. The risk only means that there is a possibility of loss or damage. The damage may or may not happen. Insurance is done against the contingency that it may happen. There has to be an uncertainty about the risk. Insurance is relevant only if there are uncertainties. If there is no uncertainty about the occurrence of an event, it cannot be insured against. In the case of a human being, death is certain, but the time of death is uncertain. A human being is an income-generating asset. One's manual labour, professional skills and business acumen are the assets. This asset also can be lost through unexpectedly early death or through sickness and disabilities caused by accidents. Accidents may or may not happen. Death will happen, but the timing is uncertain. If it happens around the time of one's retirement, when it could be expected that the income will normally cease, the person concerned could have made some other arrangements to meet the continuing needs. But if it happens much earlier when the alternate arrangements are not in place, there can be losses to the person and dependents.

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The dictionary says….. Life Insurance, the act or system of insuring against death; a contract by which the insurer undertakes, in consideration of the payment of a premium (usually at stated periods), to pay a stipulated sum in the event of the death of the insured or of a third person in whose life the insured has an interest.

ORIGIN OF INSURANCE
Almost 4,500 years ago, in the ancient land of Babylonia, traders used to bear risk of the caravan trade by giving loans that had to be later repaid with interest when the goods arrived safely. In 2100 BC, the Code of Hammurabi granted legal status to the practice. That, perhaps, was how insurance made its beginning. Since most of the trade took place by sea, there was also the fear of pirates. So these guilds even offered ransom for members held captive by pirates. Burial expenses and support in times of sickness and poverty were other services offered. In 1347, in Genoa, European maritime nations entered into the earliest known insurance contract and decided to accept marine insurance as a practice.

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The first step
Insurance as we know it today owes its existence to 17th century England. In fact, it began taking shape in 1688 at a rather interesting place called Lloyd's Coffee House in London, where merchants, ship-owners and underwriters met to discuss and transact business. By the end of the 18th century, Lloyd's had brewed enough business to become one of the first modern insurance companies.

Insurance and Myth...
Back to the 17th century. In 1693, astronomer Edmond Halley constructed the first mortality table to provide a link between the life insurance premium and the average life spans based on statistical laws of mortality and compound interest. In 1756, Joseph Dodson reworked the table, linking premium rate to age.

Enter companies...
The first stock companies to get into the business of insurance were chartered in England in 1720. The year 1735 saw the birth of the first insurance company in the American colonies in Charleston, SC. In 1759, the Presbyterian Synod of Philadelphia sponsored the first life insurance Corporation in America for the benefit of ministers and their dependents. However, it was after 1840 that life insurance really took off in a big way. The trigger: reducing opposition from religious groups.

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The growing years...
The 19th century saw huge developments in the field of insurance, with newer products being devised to meet the growing needs of urbanization and industrialization. In 1835, the infamous New York fire drew people's attention to the need to provide for sudden and large losses. Two years later, Massachusetts became the first state to require companies by law to maintain such reserves. The great Chicago fire of 1871 further emphasized how fires can cause huge losses in densely populated modern cities. The practice of reinsurance, wherein the risks are spread among several companies, was devised specifically for such situations. There were more offshoots of the process of industrialization. In 1897, the British Government passed the Workmen's Compensation Act, which made it mandatory for a company to insure its employees against industrial accidents. With the advent of the automobile, public liability insurance, this first made its appearance in the 1880s, gained importance and acceptance. In the 19thcentury, many societies were founded to insure the life and health of their members, while fraternal orders provided low-cost, members-only insurance.

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Insurance in India
Insurance in India can be traced back to the Vedas. For instance, yogakshema, the name of Life Insurance Corporation of India's corporate headquarters, is derived from the Rig Veda. The term suggests that a form of "community insurance" was prevalent around 1000 BC and practiced by the Aryans. Burial societies of the kind found in ancient Rome were formed in the Buddhist period to help families build houses, protect widows and children. Bombay Mutual Assurance Society, the first Indian life assurance society, was formed in 1870. Other companies like Oriental, Bharat and Empire of India were also set up in the 1870-90s. It was during the swadeshi movement in the early20th century that insurance witnessed a big boom in India with several more companies being set up. As these companies grew, the government began to exercise control on them. The Insurance Act was passed in 1912, followed by a detailed and amended Insurance Act of 1938 that looked into investments, expenditure and management of these companies' funds. By the mid-1950s, there were around 170 insurance companies and 80 provident fund societies in the country's life insurance scene. However, in the absence of regulatory systems, scams and irregularities were almost a way of life at most of these companies. India. The Life Insurance Corporation of India was set up in 1956 to take over around 250 life companies. For years thereafter, insurance remained a monopoly of the public sector. It was only after of 1994 became the first serious document calling for the re-opening up of the insurance sector to private players -- that the sector was finally opened up to private players in 2001.

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INDIAN INSURANCE INDUSTRY
Insurance industry, as on 1.4.2000, comprised mainly two players: the state insurers:

Life Insurers:
          

Life Insurance Corporation of India (LIC) HDFC Standard Life Insurance Company Ltd. Max New York Life Insurance Co. Ltd. ICICI Prudential Life Insurance Company Ltd. Kotak Mahindra Old Mutual Life Insurance Limited Birla Sun Life Insurance Company Ltd. Tata AIG Life Insurance Company Ltd. SBI Life Insurance Company Limited ING Vysya Life Insurance Company Private Limited Bajaj Allianz Life Insurance Company Limited MetLife India Insurance Company Pvt. Ltd.

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General Insurers:


General Insurance Corporation of India (GIC) (with effect from Dec'2000, a National Reinsurer)

GIC had four subsidiary companies, namely with effect from Dec'2000, these subsidiaries have been de-linked from the parent company and made as independent insurance companies.

1. The Oriental Insurance Company Limited 2. The New India Assurance Company Limited, 3.
4.

National Insurance Company Limited United India Insurance Company Limited

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Chapter 2 Introduction to Life Insurance Corporation of India
Life Insurance Corporation of India

Type Industry Founded Headquarters Key people

State-owned Financial services 1 September 1956 Mumbai, India D. K. Mehrotra, (Chairman) Life and health insurance, investment management, mutual fund 13.25 trillion (US$240 billion) (2010) Government of India 115,966 (2010)

Products Total assets Owner(s) Employees

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Life Insurance Corporation of India (LIC) (Hindi: भारतीय जीवन बीमा ननगम) is the largest insurance group and investment company in India. It‟s a state-owned where Government of India has 100%stake. LIC also funds close to 24.6% of the Indian Government's expenses. It has assets estimated of 13.25 trillion (US$240 billion).[1] It was founded in 1956 with the merger of 243 insurance companies and provident societies. Headquartered in Mumbai, financial and commercial capital of India, the Life Insurance Corporation of India currently has 8 zonal Offices and 113 divisional offices located in different parts of India, around 3500 servicing offices including 2048 branches, 54 Customer Zones, 25 Metro Area Service Hubs and a number of Satellite Offices located in different cities and towns of India and has a network of 13,37,064 individual agents, 242 Corporate Agents, 79 Referral Agents, 98 Brokers and 42 Banks (as on 31.3.2011) for soliciting life insurance business from the public. The slogan of LIC is "Yogakshemam Vahamyaham" which translates from Sanskrit to "Your welfare is our responsibility". The slogan is derived from the Ancient Hindu text, the Bhagavad Gita's 9th Chapter, 22nd verse. The literal translation from Sanskrit to English is "I carry what you require


Life Insurance Corporation of India (LIC) is the biggest provider of insurance and investment services in India. It is a publicly held organization held totally by the Union Government of India and also provides almost 24.6 percent of the government‟s expenses. Its assets have been valued at INR 13.25 trillion. It w as established during 1956 when 243 provident societies and insurers merged together Life Insurance Corporation (LIC) is the largest life insurance company in India fully owned by the government. Established in 1956 by the Life Insurance of India Act, LIC is headquartered in Mumbai and is the country‟s largest investor. Its subsidiaries include Life Insurance Corporation of India International, LIC Nepal, LIC Lanka, LIC Housing Finance and LICHFL Care Homes. Life Insurance Corporation (LIC) came into existence on 1st September 1956 through the amalgamation of 154 Indian insurance companies, 16 non-Indian companies and 75 provident.
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The amalgamation was achieved with the help of Life Insurance Act passed by the Parliament in the same year. The lic was created with the goal of reaching all the insurable people in the country and providing them financial coverage at a reasonable price. In the year 1956, LIC had 5 zonal offices, 33 divisional offices and 212 branch offices. With time there was a need for a branch office at every district headquarter and many branches were opened, which raised the pace of the organization.

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History
The story of insurance is probably as old as the story of mankind. The same instinct that prompts modern businessmen today to secure themselves against loss and disaster existed in primitive men also. They too sought to avert the evil consequences of fire and flood and loss of life and were willing to make some sort of sacrifice in order to achieve security. Though the concept of insurance is largely a development of the recent past, particularly after the industrial era – past few centuries – yet its beginnings date back almost 6000 years. Life Insurance in its modern form came to India from England in the year 1818. Oriental Life Insurance Company started by Europeans in Calcutta was the first life insurance company on Indian Soil. All the insurance companies established during that period were brought up with the purpose of looking after the needs of European community and Indian natives were not being insured by these companies. However, later with the efforts of eminent people like Babu Muttylal Seal, the foreign life insurance companies started insuring Indian lives. But Indian lives were being treated as sub-standard lives and heavy extra premiums were being charged on them. Bombay Mutual Life Assurance Society heralded the birth of first Indian life insurance company in the year 1870, and covered Indian lives at normal rates. Starting as Indian enterprise with highly patriotic motives, insurance companies came into existence to carry the message of insurance and social security through insurance to various sectors of society. Bharat Insurance Company (1896) was also one of such companies inspired by nationalism. The Swedish movement of 1905-1907 gave rise to more insurance companies. The United India in Madras, National Indian and National Insurance in Calcutta and the Co-operative Assurance at Lahore were established in 1906. In 1907, Hindustan Co-operative Insurance Company took its birth in one of the rooms of the Jorasanko, house of the great poet Rabindranath Tagore, in Calcutta. Life insurance was illegal in many parts of Europe but England was able to promote it. In addition to risk management, the history of life insurance reminds us that life insurance was also popular in the gambling arena.

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Gambling was so widespread that whenever names of significant people who were gravely ill were put in the news publications, people bet on their projected death dates. In the 18th century, these bets were declared illegal. The first insurance company in America came about in the 18 th century as a way to assist ministers and their families, The Presbyterian Synod of Philadelphia founded the first life insurance corporation. Shortly after, the first life insurance policy made available to the public was distributed. Life insurance may not have become particularly prominent until cars came on the scene, which created the need for public liability insurance. Under British direction, the Workmen‟s Compensation Act was set in place, which stated that a business may have to insure its workers against business mishaps. Employers may offer group insurance to their workers for life, health and retirement. It may often be customary for the employer to pay a portion and the workers are required to pay a portion of the premium to be eligible for this coverage. Although the American insurance business may have been influenced in a large part by Britain, the US market grew slightly differently from that of the United Kingdom. As America moved from a colonial base to its‟ own independence, the insurance business grew from a few companies to the life insurance corporation that is so popular today. Life insurance companies may now offer various coverage types and services. The history of life insurance and the history of life insurance corporations could be considered to have evolved greatly over the past few centuries.

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LIC Zonal Office, at Connaught Place, New Delhi, designed by Charles Correa, 1986

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Overview
The largest life insurance company in India, Life Insurance Corporation is fully owned by the government. It provides individual life insurance, group insurance and pension plans. Its subsidiaries include Life Insurance Corporation of India International, LIC Nepal, LIC Lanka, LIC Housing Finance and LICHFL Care Homes. It has over 12 million policy holders and over 9 lakh agents. It has underwritten more than 120 million policies. LIC saw computers in 1964. Today the company is on the Internet and is utilizing Information Technology in servicing its clients. It has bagged various award including Loyalty Awards 2008 in Insurance Sector, NDTV Profit Business Leadership Award – 2007, CNBC Awaaz Consumer Awards 2007 and Outlook Money NDTV Profit Awards 2007. LIC provides a rewarding career as sales agents. It offers world class training, freedom to work and unmatched financial strength.

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Objective of Life Insurance Corporation


Spread Life Insurance widely and in particular to the rural areas and to the socially and economically backward classes with a view to reaching all insurable persons in the country and providing them adequate financial cover against death at a reasonable cost. Maximize mobilization of people's savings by making insurance-linked savings adequately attractive. Bear in mind, in the investment of funds, the primary obligation to its policyholders, whose money it holds in trust, without losing sight of the interest of the community as a whole; the funds to be deployed to the best advantage of the investors as well as the community as a whole, keeping in view national priorities and obligations of attractive return. Conduct business with utmost economy and with the full realization that the moneys belong to the policyholders. Act as trustees of the insured public in their individual and collective capacities. Meet the various life insurance needs of the community that would arise in the changing social and economic environment. Involve all people working in the Corporation to the best of their capability in furthering the interests of the insured public by providing efficient service with courtesy. Promote amongst all agents and employees of the Corporation a sense of participation, pride and job satisfaction through discharge of their duties with dedication towards achievement of Corporate Objective.

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

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

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Mission
"Explore and enhance the quality of life of people through financial security by providing products and services of aspired attributes with competitive returns, and by rendering resources for economic development."

Vision
"A trans-nationally competitive financial conglomerate of significance to societies and Pride of India."

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Awards
Awards Received in 2011-12

Readers Digest

Super brands

Asian Leadership Awards

ET Brand Equity's Most Trusted

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Insurance Plans
As individuals it is inherent to differ. Each individual's insurance needs and requirements are different from that of the others. LIC's Insurance Plans are policies that talk to you individually and give you the most suitable options that can fit your requirement.

Major Types of Insurance Plans            Bima Account Plans Endowments Plus Children Plans Plana for Handicapped Dependents Endowment Assurance Plans Plans for High worth Individuals Money Back Plans Special Money Back Plans for Women Whole Life Plans Term Assurance Plans Joint Life Plans
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Chapter 3 Introduction to Joint Life Insurance Plan

Life insurance policy is designed to protect from financial losses mainly caused due to your sudden death. Thus several policies are customized to protect your specific needs. Joint life policy is here to protect your specific needs. The policy is similar to endowment policies, apart from covering life like all other life insurance plans, it also offers maturity benefits. Typically, a Joint life insurance policy protects two individuals offering advantage to married couples or business partners. The full benefit of the policy is payable only once usually at either of the insurer's death. While buying a joint life make sure that you are adequately covered. Children can benefit from this policy if your child is a beneficiary. In case you die, a joint life cover can still secure the requirements of your child. Joint life insurance policies in a business setup are also available offering single life annuity and last to die annuity. In single life annuity benefit is payable until the first partner dies. And in last to die annuity, the policy will be in force until the last partner is also dead.

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People who usually consider getting joint life insurance benefits are often married or co-habiting. These couples are often with dependants they want to protect if or when they die, or suffer a critical illness. Thus, joint life insurance policies are especially designed for any kind or form of interdependent relationship, such as business partners, where if any of the partner dies the other will face financial pressure. Joint life insurance is almost exactly what it sounds like: life insurance shared by two people. It has always been the tradition that the main breadwinner takes out life insurance to make sure their family would still have financial support in the event of their death. Many households are now supported by two incomes, however, and the loss of either could be financially devastating. Both the policy holders die simultaneously owing to an accident. To avoid such an eventuality, nomination is allowed under the policy OR




Both of them die within the specified period as a result of the same accident OR The second policy holder also dies in the same policy year as result of another accident. To avoid such an eventuality, nomination is allowed under the policy.

Joint life insurance policy is ideal for married couples as it provides financial security and risk protection to both the individuals

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Features of a Joint Life plan
1. The sum assured is payable on the first death and again payable on the death of the survivor during the term of the policy. 2. The premium payment stops after the first insured dies or on the expiry of the selected term, whichever is earlier. 3. Bonuses continue to accumulate on the basic sum assured until maturity or death of the second insured, if earlier. 4. In case one or both the insured continues to live after maturity of the policy, maturity benefits are payable to the insured. 5. Accident benefits equivalent to the sum assured are available under this plan on the first death. Thus plan your finances carefully and shop around for the policies available in the market. Use a comparing engine to find the best available policies in the market and buy online, absolutely hassle free. Joint life insurance policies usually pay out a lump sum or monthly income after the death of either policy holder. After the first death, though, the cover for death ends as soon as the other member dies and benefit is claimed. Since the joint policy is designed for two people, the risk is higher and the possibility of claiming a benefit is bigger. In the past, when people wanted to save on premiums, they often get or draw life insurance to the key person or main breadwinner of their family. However, that situation is fast becoming obsolete since both spouses are now working. Both of them are exposed to various risks, both of them need to be protected from uncertainties of life. Therefore, there should be some kind of measure to ensure that whatever may happen to either of them, there is ample cover for each. A joint life insurance policy is in most respects no different than any other life insurance policy. It cans a term, whole or universal policy. If it's a permanent policy its cash value can be of a fixed or variable nature. What makes a life insurance policy “joint” is that it has more than one insured.

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Definition of „Joint Life Plan‟

Joint life policies are similar to endowment policies in as much as these policies also offer maturity benefits to the policyholders, apart from covering the risks as all life insurance policies. But these are categorized separately as these cover two lives together thus offering a unique advantage in some cases; notable, for a married couple or for partners in a business firm. A partnership firm may decide to take a Joint Life Policy on the lives of all partners. The firm pays the premium and the amount of policy is payable to the firm on the death of any partner or on the maturity of policy whichever is earlier. The objective of taking such a policy is to minimize the financial hardships to the event of payment of a large sum to the legal representatives of a deceased partner or to the retiring partner

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What is Joint Life Policy?
A Joint Life Policy is an assurance policy taken on the joint lives of the partners. On the death of a partner, the firm becomes liable to pay the executors of deceased partner his capital, interest on capital, his share of profit from the closing of the previous year to the date of death and his share of reserves, goodwill etc. The total amount thus becoming due to the executors is usually significant and immediate payment of such heavy amount out of firm's resources is likely to affect firm's finances very adversely. The above problem can be tackled if the firm takes policy on the lives of all the partners jointly from the Life Insurance Corporation of India. According to the firms of the policy, the premium is paid, periodically by the firm to the L. I. C. of India who undertakes to pay the sum assured to the firm either on the death of any partner or on the maturity of the policy whichever is earlier. The amount received is credited to all the partners including the deceased in their profit sharing ratio, while the amount received enables the firm to make the payment to the executors without affecting adversely the financial position of the firm.

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Objectives of Joint Life Insurance

The main objective of life insurance policy is to protect your beneficiary from huge financial losses caused due to your death. Thus various types of life policies are available to protect your specific needs. And joint life policy is one of them designed to protect your specific needs. Joint life policies are similar to endowment policies because these policies also offer maturity benefits to the policyholders, apart from covering life as all other life insurance policies does. Joint life insurance policies protect two individuals offering advantage to the married couples or even the business partners. The full benefit of the policy is paid only once that is at either of the insurer's death. Spouses are the direct beneficiary from such joint life plans. In case one of the couple dies, the surviving spouse will get the benefits of the policy. Even children or a business partner can benefit from a joint life policy. Keep in mind that the benefit should be enough to cover the financial loss. Many a time‟s children also benefit from this policy. When a child's parent dies a joint life cover can still secure the requirements of the child. The need of a child can be easily managed which otherwise can be burdensome. Joint life insurance policies can be beneficial to business partners too. Joint life insurance policies in a business setup are available in two types, the single life annuity and last to die annuity. Single life annuity says that the value of the policy is payable until the first partner dies. And the last to die annuity clause says that the policy will be in force until the last partner dies.

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Benefits of Joint Life Insurance Policy in India
With the passage of time, the word “life insurance policy” have gone through many up and downs, but now this term holds a great significant among those people who are better future planners and want to ensure the financial condition for their upcoming future. That is the reason why today, life insurance policies are big in demand as more and more people are drifting towards better investment and savings plans. This is the true fact that, no one have the surety of anything, one can meet any natural calamities like accident, sudden loss, or death at any point of time, then the circumstances can also become worst if the person losses his financial stability during his bad time. However, an already saved amount can pull him out of disaster and a life insurance policy serves the same purpose, and there many enterprises, which have come up with numerous policies that may, varied according to different requirements. For example, if one wants single headed policy than Life insurance policy is the best choice or if one wants family security than Joint life insurance policy is suitable, and so suits child plans, pension plans respectively. Moreover, it is important to buy a policy that ensures the future financial stability of not only a person, but also of his family. And the policy that serves the above purpose is called Joint Life Insurance Policy, under which it not only gives the assurance of the policy holder but also of his categorized family members (maximum two members, however if one want to conclude whole family than, one need to pay extra premium for the same). The joint family life insurance policy is very suitable for a couple or business partners. The mode of paying premium under Joint family life insurance policy can be lump sum or yearly installments. Moreover, if during policy period, the first nominee meets death and he has been covered under DAB (double accident bonus), than at the maturity of the policy, the sum assured suppose to give to the second nominee along with DAB. However, if both the nominee survives at the maturity of the policy, than sum assured with bonus is payable at that time only. Therefore, the policy‟s term and condition best suits for family life insurance.

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Advantages & Disadvantages of Joint Life
Joint life insurance policy is most often used by couples. The main principle of joint life insurance is that it covers two people who are usually life partners or legal partners. As a result, there is no need to buy separate life insurance policies for each partner as this type of policy ensures the payments in case one of the partners‟ dies. This kind of policy is often bought at the same time when the mortgage is taken, child is born, the retirement term is coming and in other similar situations. Moreover, it is common that joint life insurance is used as a term life insurance. It means that many of the principles that are used for single life insurance policies are also true for joint policies. However, joint life insurance in most cases is a more convenient option because none of the partners are left uninsured. The couple must choose for how long they want their protection to last, what amount of cover they need and after that their premiums are calculated.

Joint life insurance Advantages
First of all, for some people having one life insurance policy instead of two may seem as a more convenient option than having two separate life insurance policies. This situation is very common among people that are married or conduct business together as partners. In such case both partners have the same attitude towards the object that they want to protect by buying life insurance policy. Moreover, as joint policy pays out only for the death of only one partner, it is usually cheaper to have joint life policy. Thus, joint life insurance can be seen as an attractive option when objectives of the partners are the same. For instance, a married couple wants to provide a sound future for their children and have enough money to repay the mortgage. In this case, two separate single life insurance policies may seem an expensive and unnecessary solution.

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Joint life insurance Disadvantages
Joint life insurance policy has some disadvantages. Firstly, it uses “first-death” rule. In other words, it insures only one death of the partner who died first and if something happens to another partner such an insurance policy does not pay anything for the dependents. As a result, after the death of the first partner, other is either left with no life insurance policy or need to take out single life insurance. However, it also must be taken into account that at the time when other partner died, the surviving person is older or has medical problems. Consequently, getting single life insurance at affordable rates can become a hard task to accomplish. One more thing to consider is that both persons can die at the same time. This can happen in a car accident or the fire of the house. In this case the dependents will only get a death benefit for one of the partners. Moreover, it becomes difficult to cancel or divide the insurance policy if partners get divorced. Usually insurance companies do not even give options to somehow divide that insurance policy or if they do, higher premiums are required to be paid. It is natural that if a couple is no longer together, than their relationship becomes not the best suited for having agreements. Thus, having joint life insurance can create problems for the couples in the future. One more thing that can be viewed as a disadvantage is that conditions of the contract depend from the medical history of two people. It may be harder to take out a policy at a very good terms as there is always a higher possibility at least one of persons from the couple may have some medical conditions. Since insurance companies pay for the death of the first person, they charge higher premiums because the risk that the partner who has worse health condition dies first is higher.

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Importance‟s of Joint Life Insurance
If you are have a spouse and you wish to have minimum taxes and cheaper life insurance you have to consider the option of joint life insurance. It has many useful features including the proceeding from the policy to offer many in order to realize needs a souse may have. The basic target of joint life insurance is to secure both if you with a death profit. There are three kind of this: term, whole life and universal life insurance. If you are looking for this one you should be aware that there are others joint life insurance types. The first to die life insurance is a real chance to have finance when it‟s crucially important in the case of funeral or medical services. The second to die life insurance funds cannot be realized until the death of currently alive spouse. This feature is chosen with a target to support financially children or other family relatives. These types cover different goals so one of them suits a particular case. Young married will probably benefit from the First to Die insurance as a parent may fill a hollow in the family budget caused by the death of a died parent. Second to Die coverage will be more suitable for older couples as realized funds will be needful for estate taxes and for children provision with finances. This coverage is helpful for those who want to maintain the lifestyle before a deceased death. Second to die life insurance guarantees the survival of people. This kind is suitable for prosperous applicant as far as he exactly was concerned with high estate taxes which he will leave for family. A death can affect business as well as family. That‟s why many business partners purchase out joint life insurance policies to support their business as one partner goes west.

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If a couple decide to divorce a joint life insurance policy can be divides for two separate policies. It is common to have a clause about the right to split. Of course not many couples want to discuss the possibility to be split up, nevertheless policies have clauses about not-interference into their lives for the sake of life insurance coverage.

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Chapter 4 Services of Joint Life Insurance Plans
Joint life policies are similar to endowment policies in as much as these policies also offer maturity benefits to the policyholders, apart from covering the risks as all life insurance policies. But these are categorized separately as these cover two lives together thus offering a unique advantage in some cases; notable, for a married couple or for partners in a business firm. Marriage is a lifelong partnership. And like any other partnership, it brings with it an altogether new set of expectations, responsibilities and priorities. Buying Life Insurance is one such key responsibility. „Joint Life Insurance‟ is what couples can opt for, instead of buying two separate policies. Joint Life Insurance could be endowment or term plan; covering two lives simultaneously - like husband and wife or it could even be two business partners. If the policy is a joint endowment policy, the cover amount (sum assured) is payable on the first death and again on the death of the survivor during the period of the policy. If one or both partners owning the joint policy survive to the maturity date, the cover amount and the vested bonuses are payable on the maturity date.

Joint life Plan 1. Jeevan Saathi 2. Jeevan Sarithi

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Jeevan Saathi

This is an Endowment Assurance Plan issued on the lives of husband and wife. The plan provides financial protection against death of both the lives. It pays the maturity amount on survival of one or both the lives to the end of the policy term .

Features


This plan is ideal for employed couples. With a marginal addition to the premium of an Endowment Assurance, two lives are covered under this policy. This plan is issued on the lives of husband and wife. Premium payment ceases on first death or up to maturity date if both lives survive up to the date of maturity.

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Benefits


Sum assured along with vested bonus is payable on date of maturity if both lives survive up to date of maturity. Basic sum assured is payable on first death within the term, to the surviving spouse. If the second life also dies within the term of the policy, the nominee gets another sum assured along with vested bonus. If the second life survives to maturity, an amount equal to sum assured is paid along with vested bonus.

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Premiums:
Premiums are payable yearly, half-yearly, quarterly, monthly or through salary deductions as opted by you throughout the term of the policy or till the first death of the lives covered, whichever is earlier.

Bonuses:
This is a with profit plan and participates in the profits of the Corporation‟s life insurance business. It gets a share of the profits in the form of bonuses. Simple Reversionary Bonuses are declared per thousand Sum Assured annually at the end of each financial year. Once declared, they form part of the guaranteed benefits of the plan. Such bonuses are to be added till date of maturity or the second death of the lives covered, whichever is earlier. Final (Additional) Bonus may also be payable provided policy has run for certain minimum period.

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Eligibility

Minimum age at entry

20 years

Maximum age at entry

50 years

Maximum age at maturity

70 years

Minimum sum assured

Rs 10,000

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Other conditions
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Age of the older life should not be more than 65 years on maturity. Premiums are based on mean age. Where sum proposed is over Rs 1,00,000, the age of older life cannot be more than 60 years. Lady lives that have undergone two caesarian operations are not eligible for this policy. Accident benefit premiums to be paid on both lives. After 1st death, accident benefit is allowed on the second life also either by the same accident or by another accident within the same year. Only standard age proof is accepted. Bonuses vest even after cessation of premium on 1st death, since it is payable only along with the sum assured payable in the event of death of 2nd life within the term or on 2nd life surviving date of maturity. Bonus is calculated on basic sum assured.

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Jeevan Saritha

Suitability


Couples who desire to have monthly income benefits till the last survivor dies may take this policy. It is like getting pension. Premiums are payable during select period. It is attractive, as it participates in bonus up to the death of the second life or date of maturity. Sum assured is paid partly on death.

Salient Features
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   

The policy is taken on Joint-lives. Maturity benefits are payable partly in lump sum and partly in the form of an annuity for life. Policy to be taken in units where 1 unit = Rs. 7500 sum assured.Benefits (On 1 unit i.e. Rs. 7,500) If both lives survive to the Date of maturity Lump sum payment of Rs.2500 + any final additional bonus. A joint life annuity of Rs. 50 per month payable in arrears. A lump sum payment of Rs 5000/- on death of the last survivor to his/her legal heirs.

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On death of either life before Date of maturity  Lump sum Rs 2500/- (with any final additional bonus) to the surviving life assured.  An income benefit of Rs. 50 pm to the surviving life assured.  A lump sum payment of Rs. 5000 on death of the surviving life assured to his legal heirs. Both lives dying simultaneously before maturity date  Payment of full basic sum assured i.e Rs 7500 per unit to the legal heirs. Other Conditions  Minimum sum assured: 5 units i.e. Rs. 37,500.  Minimum premium must be Rs.800 per annum  Minimum maturity age: 50 years.  Maximum maturity age: 65 years.  Minimum age at entry: Older life 21 years Younger life 18 years.  Premiums are based on older life's age.  Premiums are payable for periods less than one year.

Eligibility Minimum age at entry Older life Younger life Minimum maturity age Maximum maturity age Minimum sum assured (5 units) 21 years 18 years 50 years 65 years Rs 37,500

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Chapter 5 Services of Joint Life Plans under Life Insurances Corporation of India
We are a professionally qualified and authorized agent of Lic of India. India's most trusted life insurance provider. Life insurance policy by LIC of India provides safety, security and reparation or compensation to the nominee or family members on the demise of an insured individual. Being Life Insurance Agents our duty is to help the client identify various policies schemes which will facilitate them to select policy according to their monetary and personal situation. Life Insurance Agent asks query about customer's family background, family history their monetary situation and medical illness if any and depending on those aspect, direct clients to buy a suitable policy which will not only save Tax but also gives an adequate amount of risk cover. If life insurance buying is approached in the proper manner it can be very beneficial to yourself and your family. You need to take the time to give some thought to a subject that can be very unpleasant. I guess that is why most people don't think about it, or at best think about it only after they have had a brush with death, or when a life insurance professional brings up the subject. Sometimes these people wait until it is too late to do something about such a critical matter. They find themselves uninsured when they discover they have some critical illness. People should give life insurance buying serious thought at least once per year as ones situation may change and you find that your need for life insurance may change as a result

 jeevan saathi plan  Jeevan Saathi Plus
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Jeevan Saathi Plus
Lic‟s Jeevan saathi plus is a unit linked plan wherein a couple can take the insurance cover on their lives under a single policy. The proposer under the plan shall be called principal life assured (p. L. A.) and the other life (wife/husband) shall be called spouse life assured (s. L. A. ). The premiums can be paid either in lump sum (single premium) or regularly throughout policy term. The P. L. A. Can choose the level of cover (sum assured) for both lives within the limits, which will depend on whether the policy is a single premium or regular premium contract, age and the amount of premium agreed to pay. For regular premium policies, in case of death of the p. L. A. During the term of the policy, the plan also provides for waiver of all future premiums including outstanding premiums, if any, provided life cover is in force. p. L. A. Will also have an option to make additional investments under the policy through top-up premiums. LIC Jeevan Sathi Plus policy is one of the good plans for the couples and in particular it is more suitable especially for the working people or the professionals, by providing the security financially for both of the lives. But this new Jeevan sathi plus policy differs from the LIC's earlier jeevan sathi policy which was made on a conventional platform. The new LIC Jeevan Sathi Plus policy which is built on the ULIP platform provides the benefits of the market linked return for those principal's insured. It is a policy in which the couple could take the insurance cover under the single policy for their lives. There are many benefits along with this policy. Thus in this LIC Jeevan Sathi Plus policy, the proposer and the plan are called as the Principal Life assured and the other life who may husband or wife may be called as the Spouse Life Assured. The premiums can be paid over the entire term of policy at the intervals of yearly or half yearly or quarterly or monthly by the policy holders.

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FEATURES:LIC‟s Jeevan Saathi Plus is a unit linked plan wherein a couple can take the insurance cover on their lives under a single policy. The proposer under the plan shall be called Principal Life Assured (P.L.A.) and the other life (wife/husband) shall be called Spouse Life Assured (S.L.A.). The premiums can be paid either in lump sum (single premium) or regularly throughout policy term. The P.L.A. can choose the level of cover (Sum Assured) for both lives within the limits, which will depend on whether the policy is a Single premium or Regular premium contract, age and the amount of premium agreed to pay. For regular premium policies, in case of death of the P.L.A. during the term of the policy, the plan also provides for waiver of all future premiums including outstanding premiums, if any, provided life cover is in force.

1. Payment of Premiums:P.L.A. may pay premiums regularly at yearly, half-yearly, quarterly or monthly (through ECS mode only) intervals over the term of the policy. Alternatively, a Single premium can be paid.

2. Eligibility Conditions and Other Restrictions:(a) Minimum Age at entry 18 years (completed) (b) Maximum Age at entry 55 years (age nearer birthday) (c) Maximum Maturity Age - 70 years (age nearer birthday) (d) Policy Term Regular premium: [10, 15 to 20] years Single premium: [10 to 20] years (e) Minimum Premium Regular premium (other than monthly (ECS) mode):Rs. [10,000] p.a. for policy term 15 to 20 years
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Rs. [15,000] p.a. for policy term 10 years Regular premium (for monthly (ECS) mode):Rs. [1,000] p.m. for policy term 15 to 20 years Rs. [1,500] p.m. for policy term 10 years Single premium: Rs. [40,000] (f) Minimum Sum AssuredRegular Premium: 5 times the annualized premium for each of P.L.A and S.L.A. Single Premium: 1.25 times the single premium for each of P.L.A and S.L.A. (g) Maximum Sum assuredInclusive of both Principal Life Assured and Spouse Life assured, subject to the minimum sum assured condition as e) above.

3. Other Features:

Top-up (Additional Premium): P.L.A. can pay Top-up premium in multiples of Rs.1,000/- at anytime during the term of the policy without increasing the sum assured. In case of yearly, halfyearly, quarterly or monthly (ECS) mode of premium payment such Top-up can be paid only if all due premiums have been paid under the policy. At any point of time, the total of top-up premiums cannot exceed 25% of total amount of regular premiums paid up to that date or 25% of single premium paid. Top-up premium shall not be allowed to be paid after the death of P.L.A.

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Partial Withdrawals: P.L.A.may encase the units partially after the third policy anniversary subject to the following: Partial withdrawals may be in the form of fixed amount or in the form of fixed number of units. 1. Under regular premium policies where premiums have been paid for less than 3 years‟ and further premiums are not paid, the partial withdrawal shall not be allowed.

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2. Under regular premium policies where at least 3 years‟ premiums have been paid, partial withdrawal will be allowed subject to a minimum balance of two annualized premiums in the Policyholder‟s Fund Value. 3. Under Single Premium policies, the partial withdrawal will be allowed subject to a minimum balance of Rs. 5000/- in the Policyholder‟s Fund or 10% of single premium, whichever is higher. 4. Partial withdrawal from Policyholder‟s Fund pertaining to top -up premiums shall be allowed only after completion of three years from the date of allocation of that top-up premium. This condition will not apply if the top-up premiums are paid during the last three years of the policy term. 5. If death benefit sum assured is transferred to the Policyholder‟s Fund on death of either P.L.A. or S.L.A., the same shall be allowed to be withdrawn from the fund without any restriction of three years waiting period. 6. After the death of P.L.A. during the policy term, the S.L.A. can partially withdraw the units subject to the conditions (i) to (vi) mentioned above.

4. Risks borne by the Policyholder:
1. LIC‟s Jeevan Saathi Plus Plan is a Unit Linked Joint Life Insurance product which is different from the traditional insurance products and is subject to the risk factors. 2. The premium paid in Unit Linked Life Insurance policies are subject to investment risks associated with capital markets and the NAVs of the units may go up or down based on the performance of fund and factors influencing the capital market and the policyholder is responsible for his/her decisions. 3. Life Insurance Corporation of India is only the name of the Insurance Company and LIC‟s Jeevan Saathi Plus is only the name of the unit linked life insurance contract and does not in any way indicate the quality of the contract, its future prospects or returns. 4. Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document of the insurer. 5. The various funds offered under this contract are the names of the funds and do not in any way indicate the quality of these plans, their future prospects and returns.
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6. All benefits under the policy are also subject to the Tax Laws and other financial enactments as they exist from time to time.

5. Cooling off period:If you are not satisfied with the “Terms and Conditions” of the policy, you may return the policy to us within 15 days. The amount to be refunded in case the policy is returned within the cooling-off period shall be determined as under: Value of units in the Policyholder‟s Fund Plus unallocated premium. Plus Policy Administration charge deducted less charges @ Rs.0.20per thousand Sum Assured of P.L.A. and S.L.A. taken together Less Actual cost of medical examination and special reports, if any, for both the lives.

6. Loan:No loan will be available under this plan.

7. Assignment:Assignment will be allowed under this plan.

8. Exclusions:In case the P.L.A. commits suicide at any time within one year, the Corporation will not entertain any claim by virtue of the policy except to the extent of the Policyholder‟s Fund Value on death and in case S.L.A. commits suicide at any time within one year, the Corporation will not entertain any claim by virtue under the policy.

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BENEFITS:
A)Death Benefit:
On death of P.L.A. while S.L.A. is alive Sum Assured as applicable to P.L.A. shall be payable to the S.L.A. Also, in case of regular premium policy, when the cover is in full force, payment of all future premiums due under the policy shall be waived. Units equivalent to an amount equal to all future premiums including outstanding premiums, if any, (i.e. sum total of all premiums payable under the policy less total premiums paid under the policy) shall be credited to the policyholder‟s fund. The units shall be allocated at the unit price applicable for the fund type opted for under the policy. The policy shall continue. On death of P.L.A. after the death of S.L.A. Sum Assured as applicable to P.L.A. plus policyholder‟s fund value together with an amount equal to all future premiums including outstanding premiums, if any, (i.e. sum total of all premiums payable under the policy less total premiums paid under the policy) shall be payable and the policy shall terminate. On death of S.L.A. while P.L.A. is alive Sum Assured as applicable to S.L.A. shall be payable to P.L.A. On death of S.L.A. after the death of P.L.A. Sum Assured as applicable to S.L.A. plus policyholder‟s fund value shall be payable and the policy shall terminate. On Simultaneous death of P.L.A. and S.L.A. Sum Assureds as applicable to both P.L.A. and S.L.A. plus policyholder‟s fund value together with an amount equal to all future premiums including outstanding premiums, if any, (i.e. sum total of all premiums payable under the policy less total premiums paid under the policy) shall be payable and the policy shall terminate.

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A) Maturity Benefit:On both P.L.A and/or S.L.A. surviving the date of maturity an amount equal to the Policyholder‟s Fund Value is payable.

1. Investment of Funds:The premiums allocated to purchase units will be strictly invested according to the investment pattern committed in various fund types. Various types of fund and their investment pattern will be as under:

Fund Type Investment in Government / Government Guaranteed Securities / Corporate Debt Bond Fund Not less than 60% Secured Fund Not less than 45%

Short-term investments such as money market instruments

Investment in Details and Listed Equity objective of the fund Shares for risk /return

Not more than Nil 40%

Low risk

Not more than Not less than Steady Income – 40% 15% & Lower to Medium Not more than risk 55% Not more than Not less than Balanced Income and 40% 30% & growth – Medium Not more than risk 70% Not more than Not less than Long term Capital 40% 40% & growth – High risk Not more than 80%

Balanced Fund

Not less than 30%

Growth Fund

Not less than 20%

The Policyholder has the option to choose any ONE of the above 4 funds.

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2. Method of Calculation of Unit price: Units will be allotted based on the Net Asset Value (NAV) of the respective fund as on the date of allotment. There is no Bid-Offer spread (the Bid price and Offer price of units will both be equal to the NAV). The NAV will be computed on daily basis and will be based on investment performance, Fund Management Charge and whether fund is expanding or contracting under each fund type and shall be calculated as under:

Appropriation price is applied (when fund is expanding): Market value of investment held by the fund plus the expenses incurred in the purchase of the assets plus the value of any current assets plus any accrued income net of fund management charges less the value of any current liabilities less provisions, if any divided by the number of units existing at the valuation date (before any new units are allocated). Expropriation price is applied (when fund is contracting): Market value of investment held by the fund less the expenses incurred in the sale of assets plus the value of any current assets plus any accrued income net of fund management charges less the value of any current liabilities less provisions, if any divided by the number of units existing at the valuation date (before any units redeemed). Applicability of Net Asset Value (NAV): The premiums received up to a particular time (presently 3 p.m.) by the servicing branch of the corporation through ECS or by way of a local cheque or a demand draft payable at par at the place where the premium is received, the closing NAV of the day on which premium is received shall be applicable. The premiums received after such time by the servicing branch of the corporation through ECS or by way of a local cheque or a demand draft payable at par at the place where the premium is received, the closing NAV of the next business day shall be applicable.

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3. Charges under the Plan: A) Premium Allocation Charge:
This is the percentage of the premium deducted towards charges from the premium received. The balance constitutes that part of the premium which is utilized to purchase (Investment) units for the policy. The allocation charges are as below: Single premium:-

Premium Band Up to 15,00,000 15,00,001 and above

Allocation Charge 4.25% 4.00%

Regular Premium:-

Premium Band (per annum) 10,000 to 1,50,000

Allocation charge First year 29.00% 2nd & 3rd year 5.00% 5.00% 5.00% thereafter 2.50% 2.50% 2.50%

1,50,001 to 2,50,000 28.00% 2,50,001 and above 27.50% 1.25%

Allocation charge for Top-up:

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B) Charges for Risk Covers: Mortality Charge 1) Life Cover Charge:It is the charge to meet the cost of life assurance cover for each of the lives assured (i.e. P.L.A. and S.L.A.). 2) Premium Waiver Benefit Charge (applicable in case of

regular premium policies only):It is the charge to meet the cost of waiver of all future premiums including outstanding premiums, if any, on the death of P.L.A. This charge is age specific and will be deducted every month on the life of both P.L.A. and S.L.A. till they are alive. However the charge to cover the cost of waiver of future premiums will be deducted till P.L.A. is alive and will be based on the age of the P.L.A. and shall cease on the death of P.L.A. The charges per Rs. 1000/- cover (sum of life cover and cover for waiver of future premiums including outstanding premiums, if any) for some of the ages in respect of a healthy life are as under: Age Rs. 25 1.42 35 1.73 45 3.89 55 10.76

C) Other Charges:
The following charges shall be deducted during the term of the policy: Policy Administration charge - Rs. 60/- per month during the first policy year, Rs 20/- per month during the second year and thereafter, from the third year on wards till the end of the policy term Rs. 20/- per month escalating at 3% p.a. shall be levied. Fund Management Charge –It is a charge levied as a percentage of the value of units at following rates: 0.50% p.a. of Unit Fund for “Bond” Fund 0.60% p.a. of Unit Fund for “Secured” Fund
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0.70% p.a. of Unit Fund for “Balanced” Fund 0.80% p.a. of Unit Fund for “Growth” Fund Switching Charge – This is a charge levied on switching of monies from one fund to another. Within a given policy year 4 switches will be allowed free of charge. Subsequent switches in that year shall be subject to a switching charge of Rs. 100 per switch.

D)

Right to revise charges:

The Corporation reserves the right to revise all or any of the above charges except the Premium Allocation charge and Mortality charge. The modification in charges will be done with prospective effect with the prior approval of IRDA. Although the charges are reviewable, they will be subject to the following maximum limit exclusive of service tax: - Policy Administration Charge Rs. 150/- per month during the first policy year, Rs. 50/- per month during the second year and thereafter, from the third year on wards till the end of the policy term Rs. 50/- per month escalating at 3% p.a. - Fund Management Charge: The Maximum for each Fund will be as follows: 1. 2. 3. 4. Bond Fund: Secured Fund: Balanced Fund: Growth Fund: 1.00% p.a. of Unit Fund 1.10% p.a. of Unit Fund 1.20% p.a. of Unit Fund 1.30% p.a. of Unit Fund

- Switching Charge shall not exceed Rs. 200/- per switch. - Miscellaneous Charge shall not exceed Rs. 100/- each time when an alteration is requested. In case the policyholder does not agree with the revision of charges the policyholder shall have the option to terminate the contract and withdraw the Policyholder‟s Fund Value.

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4. Surrender:The Surrender value, if any, is payable only after completion of the third policy anniversary both under Single and Regular Premium contracts. The surrender value will be the Policyholder‟s Fund Value at the date of surrender. There will be no Surrender charge. The policy can be surrendered by P.L.A... After the death of P.L.A. during the policy term, the policy can be surrendered by the S.L.A. If P.L.A. /S.L.A. apply for surrender of the policy within 3 years from the date of commencement of policy, then the Policyholder‟s Fund Value shall be converted into monetary terms. No charges shall be made thereafter and this monetary amount shall be paid on completion of 3 years from the date of commencement of policy. In case of death of the policyholder after the date of surrender but before the completion of 3 years from the date of commencement of policy the monetary value payable on completion of 3 years shall be payable.

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Jeevan Saathi

LIC Jeevan Saathi Plan is a joint life endowment policy. This plan pays for the Death Benefit during the policy term for both husband and wife but the Maturity Benefit is paid even if both or anyone are alive till the end of the policy term. Hence it is a double death benefit plan. In this plan, if any one of the husband or the wife dies within the policy tenure, the Sum Assured is paid in a lump sum but the policy continues but the future premiums are waived and paid by the insurance company. If the last survivor also dies within the policy tenure, then the Sum Assured is paid along with the accrued Bonus and the policy is terminated. However, if one or both of the husband and wife outlives the policy tenure, then the Sum Assured along with the accrued Bonus is paid in a lump sum and then policy is terminated.

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Benefits
1- Death Benefit :On first death the Sum assured is payable in a lumpsum. If the survivor of the two lives dies thereafter during the remaining policy term, Sum Assured along with the all bonuses is payable again in a lumpsum.

2-Maturity Benefit :If one or both the lives survive till the end of the policy term, Sum Assured along with all bonuses declared up to maturity date is payable in a lump sum.

3-Supplementary/Extra Benefits:These are the optional benefits that can be added to your basic plan for extra protection/option. An additional premium is required to be paid for these benefits.

4-Survival benefits:If one or both the lives survive to the maturity date, the sum assured, along with the accumulated bonus, is payable.

5-Death Benefits:In case either of the couple dies during the policy‟s term, two things happen. One, LIC pays to the surviving spouse the full sum assured. And, two, the policy continues on the life of the surviving partner without him/her having to pay any further premiums, i.e. the life cover on the survivor continues free of cost. The sum assured is again be payable on the death of the other partner in case both the husband and wife were to die during the term of the policy. Vested bonus would also be paid along with the sum assured on the second death.

Surrender Value:Buying a life insurance contract is a long-term commitment. However, surrender values are available under the plan on earlier termination of the contract.
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Guaranteed Surrender Value:The policy may be surrendered after it has been in force for 3 years or more. The guaranteed surrender value is 30% of the basic premiums paid excluding the first year‟s premium.

Corporation‟s policy on surrenders:In practice, the Corporation will pay a Special Surrender Value – which is either equal to or more than the Guaranteed Surrender Value. The benefit payable on surrender is the discounted value of the reduced claim amount that would be payable on death or at maturity. This value will depend on the duration for which premiums have been paid and the policy duration at the date of surrender. In some circumstances, in case of early termination of the policy, the surrender value payable may be less than the total premiums paid. The Corporation reviews the surrender value payable under its plans from time to time depending on the economic environment, experience and other factors.

Eligibility conditions and other restrictions in LIC Jeevan Saathi Plan Minimum Sum Assured (in Rs.) Policy Term (in years) Premium Payment Term (in years) Entry Age of Policyholder Age at Maturity Single Premium (in Rs.) Payment modes 50,000 15 15 20 Maximum No Limit 30 30 50 70

NA NA Yearly, Half-Yearly, Quarterly, Monthly, Salary Saving Scheme

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Conclusion
In order to satisfy the customer‟s needs new services may be introduce or the existing services of the insurance may be modified. Customer satisfaction prays and important role in insurance services. With the help of given project I got an in depth knowledge about the working of joint life insurance policy.Also I got an insight as how to use joint life policy which insurance provides to the customer.

It can be concluded from the project that future of insurance services is bright as the technology is increased and people are becoming advanced and literate.

In insurance joint life insurance policy starts with developing customer profiles by which the insurance company can collect and analyses all relevant information customer. The preferences and which prejudices of the customer are identified with the help of this profiles and this enables the insurance company to enhance its marketing activities.

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Bibliography
   

www.licindia.in www.wikinvest.com http//www.google.com http//www.wikipedia.co m  www.justdial.com  www.myinsuranceclub. com

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