INSURANCE
AWARENESS
CAMPAIGN
Welcome to
LIFE INSURANCE
CORPORATION OF INDIA
INDIA’s No.1 Life Insurance Company
About LIC of India
• In the year 1956, 245 Indian and foreign
insurers and provident societies are taken
over by the central government and LIC of
India was formed by an Act of Parliament,
viz. LIC Act, 1956, with a capital contribution
of Rs. 5 crore by Government of India.
About LIC of India
LIC of India is a Trust:
Of the total surplus generated during the year, 95% is
distributed among the policyholder in the form of
Bonus & Balance 5% is paid to the Govt. of India.
Govt. of India Guarantee:
The sum assured under all policies including any
bonuses declared in respect thereof, shall be
guaranteed as to payment in cash by the Central
Government. Under Section 37 of LIC ACT, 1956
Results of LIC of India: 2013-14
• Total Premium Income :
Rs- 2,36,798 Crores
( Daily Collection is about Rs-648 Crores)
• Gross Income for the Year:
Rs- 3,80,042 Crores
( Four times the income of leading Bank in India)
Results of LIC of India: 2013-14
• Total Life Fund:
Rs- 16,07,024 Crores
• Total Assets:
Rs- 17,69,191 Crores
Results of LIC of India: 2013-14
• Total Claims Amount Paid:
Rs- 91,186 Crores
Outstanding Death Claims : 0.70% only
Outstanding Maturity Claims: 0.32% only
Results of LIC of India: 2013-14
• INVESTMENT in GOVT./Infra/Social Sec.
Rs-10,69,769 Crores.
• LIC’s MARKET SHARE:
75.33% on premium
84.44% on policies
Balance with 23 Companies
1st Principle of Wealth Management:
Majority of people use following formula:
Income – Expenses = Savings.
This is not the Correct Approach.
The Correct Formula is:
Income – Savings = Expenses
We must adjust our lifestyle as per amount left
after Savings for proper Wealth Management.
1st Principle of Wealth Management:
• Spending is for Today’s Me, and Savings is for
Future Me.
• Out of my present Earnings I must Provide for
Present Me as well as Future Me.
• So that Future Me Should not be solely at the
mercy of Future Me's Income.
3 Stages of Life
25-60 Yrs
0-25 YRS
DARING, CARING AND
SHARING 60-90+
GIVING
OR
TAKING
DREAMING AND
ACQUIRING
CHILDREN
AND FAMILY
PARENTS
CHILDREN
Our Responsibilities
• During 2nd stage of our life we have
Responsibility to provide for:
1. Daily Expenses of Family.
2. Proper Education for the Children.
3. Marriage of Children.
4. Retirement Provision for Self and Spouse.
Our Responsibilities
• We are fulfilling our responsibilities by
Earning Income.
• Our Earning will stop due to:
i) Untimely Death,
ii) Disability,
iii) Serious Illness,
iv) Retirement
Our Responsibilities
• We have to make proper Savings to fulfill our
Responsibilities.
• Life Insurance is the only option which not
only provides immediate funds in case of our
Death but also create huge fund for our
Retirement as well.
That’s why we say:
Zindagi ke saath bhi, Zindagi ke baad bhi.
How much Life Insurance?
Example:
Our Income
: Rs - 50,000
Self Expenses
: Rs - 10,000
Family Expenses : Rs - 40,000
On our Death our Family loses Love, Affection and
Rs-40,000 per month.
How much Life Insurance?
Our Family can get Rs-40,000 per month (i.e.
Rs-4,80,000 per annum) by way of interest from
Bank.
To get Rs-4,80,000 per annum, we should have
liquid cash of Rs- 60,00,000. (Considering rate
of interest @8%)
@6% interest Amount Required will be Rs80,00,000
Have we made Provision for that much
Liquidity?
How much Life Insurance?
“Life Insurance has no Substitute”
One installment of Life Insurance premium
will provide the required liquidity
immediately.
How much Pension Provision?
• Cost of one day food for one Person:
i) Breakfast
: Rs-50
ii) Lunch
: Rs-100
iii) Dinner
: Rs-100
Total
: Rs-250 per person
Total for 2 Persons : Rs-500 per day
i.e. Rs- 15,000 p.m and Rs-1,80,000 p.a.
If we live for another 20 years after Retirement, Total
Amount Required will be Rs- 36,00,000
How much Pension Provision?
• Consider other expenses of Rs-10,000 per month
towards Medicines and Other Necessities.
i.e Rs-1,20,000 per annum and Total for 20 years will
be Rs-24,00,000.
So minimum amount Required for Pension
Provision for 20 years will be Rs-60,00,000.
2nd Principle of Wealth Management:
“Regularity is the Key to Wealth”
( ROI, IRR or CAGR etc is not the key to Wealth)
• People feel that higher ROI (Return on Investments)
will make them wealthy. What they forget is that
the higher the ROI the more the risk that
investment is subject to.
• In fact an easier and surer way to become wealthy
is “Regularity” in savings.
2nd Principle of Wealth Management:
• We have also heard the saying “Start early, Drive
slowly, Reach safely” This is applicable in almost
all aspects of life not just driving.
• Start your investments early even if they are
small amounts.
• In the exhibit below we can observe that the
person aged 25 needs to save just 50% of
Amount in comparison to a person aged 35 to
create corpus of 60lacs.
2nd Principle of Wealth Management:
Age Savings
Amount Required to Invest Per
Period till age
Started
annum @6% to Create Corpus
60
of Rs-60,00,000
25 years
35 years
Rs-50,800
30 years
30 years
Rs- 71,600
35 years
25 years
Rs-1,03,200
40 years
20 years
Rs- 1,53,900
Solution
We will provide you perfect solution to fulfill
your Responsibilities towards your Family and
also provide solution for your retirement
needs.
For that we need uninterrupted 30 minutes of
your time to discuss “Funding of your
Responsibilities”.