Life insurance is a legal agreement between an insurance policy holder and an insurance company. The policy holder pays a fixed premium amount regularly, and in the event of their death, the insurance company pays a designated beneficiary a sum of money. There are several types of life insurance policies, including term life (pays out if the policy holder dies within a specified term), whole life (pays out upon death at any time), and endowment policies (pays out a predefined amount either on death or at a set maturity date). Life insurance offers tax benefits under Indian tax laws and helps secure the financial future of a policy holder's family.

1. LIFE
INSURANCE

2. WHAT IS INSURANCE?
Insurance is a legal agreement
between two parties (insurance
company and policy holder).

3. In this agreement (policy),
insured person pays a fix
amount of premium inrespect
to risk/uncertainity, then
insurance company will liable
to pay all the amount to insured
person(As per rules and
regulations).

4. Insure
r
Claim amount /componsation
Fixed amount of premium
Insurance
company
Insured
person

5. Insurance is defined as a co-operative
device,and also as social device.
According to Ghosh and Agarval “Insurance is
a co-operative device of distribution a certain
risk over a group of person who are exposed
to it”.

6. WHAT IS LIFE
INSURANCE?
Life insurance is a contract between an
insurance policy holder and an insurance
company, where the insurance company promise
to pay a a designated benificiary a sum of money
upon the death of an person.it also applyable such
as terminal illness or critical illness can also trigger
the payment.
According to the latest data available from
the Insurance Regulatory and Development
Authority of India(IRDAI), there were around 35

7.  Term life insurance
 Whole life insurance
 Endowment policy
 Money back policy
 ULIP(Unit Linked Insurance Plans)
 Children’s policy
 Retirement plans
Types of life insurance

8. 1.TERM INSURANCE: This policy also
called pure insurance.
This policy claimed when the policy holer died within
policy term specified, then sum assured to
family/nominee.
 In this policy premium amount is very low
 Time ranging to this policy is 3months to 7years.

9. 2.Endowment policy: The amount of
insurance is paid on maturity to only in the hands of
insured person(if he alive).
 Insured person get predefined amount.
 Portion of the policy will be invested in low debt
instrument.
3.ULIP’s(Unit Linked Insurance Plans):This plan is
similar to endowment plan. In this plan, part of
premium will be invested in mutual fund
investment.remaining premium will be used as
death benefit.

10. 4. whole life insurance: This policy
is life time policy. In this case the
family members get the policy amount
at the time of policy holders death or
after death.
Advantage/benefits of life insurance
Tax benefit: life insurance policy is
eligible for tax benefits in India,under
section 80(C) and 10(10D).

11.  Under section 80(C):This allowed tax deduction
up to 1,50,000 on life insurance.
 Under section 10(10D): Life insurance policy
received by the nominee are exempt from tax under
this section. The premium paid on the policy does
not exceed 10% of the sum assured.
 Encourage saving habit.
 Secure family financial future.

12. FACTS ABOUT LIFE INSURANCE
280
million
Active life insurance policies in the U.S.
60% Of Americans have life insurance coverage.
66%
Of people would recommend life insurance to a
friend.
$155
billion Is what life insurance racks up in annual sales.

13.  It’s easy to mislead if you’re not well-informed.
 Whole life insurance is expensive.
 Life insurance can be expensive if you’re older.
 You have to pay monthly or annual premium.
Dis advantages of taking life
policy