Who buys Insurance

Insurance products are sold in the market through soliciting by distributors including insurance sales, agents and brokers. Consumers do not purchase insurance as a matter of necessity. Consumers usually need to be convinced about the usefulness of an insurance product. Insurance products are not given priority by individuals. The reasons for this include:

• Unawareness of such products
• Limited savings of potential consumers
• Facilities for the purchase of contract are not available (like sales counters, insurance offices and agents)
• The insurance product is too difficult to understand,which is not easily understood,full of technical jargon
• Products that are needed by consumers are not designed or available
• Consumers do not have enough trust on the insurers and the products sold by insurers
• Consumers prefer other financial products with savings

The segments and types of people needing insurance product include:

• Children, Youth, Old 
• Married and Single
• Men and Women
• Rich and Poor
• Individuals and Co operations

The type of insurance product required by each of the type of people will determine the insurance policy.

• General Insurance requirements include insurance for Fire, Motor, Marine and Miscellaneous risks
• Life insurance requirements include Immediate and Deferred Annuities, Money Back Plans, Unit Linked Plans , Endowment Assurances, Term Insurance and Whole Life Insurance.

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A Specimen Policy Document - A money back policy

 ----------------------------------NAME OF THE COMPANY----------------------------------------

--------------------------------------------ADDRESS-----------------------------------------------------

Website------------------------

SPECIMEN POLICY DOCUMENT

The policy is subject to terms and conditions contained herein, the schedule and any attached riders and endorsements

The company agrees to pay the benefits stated under the policy upon satisfaction of the happening of the insured event, while the policy is in force and effect to the lawfully entitled person.

The effective date and number of this policy are as set out in the schedule.

Signed by and on behalf of 

-------------Name of the Company---------------

(Company's Seal)

                                                         THE SCHEDULE

1) Details of the Insured

Name of the policy holder                       Sex

Address

Identification

Name of the Life Assured (LA)             Sex

Date of birth of L.A.                              Age at entry

Address

Source of identification

2) Policy features

Date of the application                             Issuing office and policy number

Face amount of Insurance

Policy term                                               Premium paying term

Date of commencement                           Date of Maturity
of the policy

Plan of Insurance                                    
(Whether the policy
is participating or non-
participating policy) 

Insured Event on which Benefits            1) Upon death during the policy term: Face amt + accrued
are payable                                                                                                             guaranteed additions

                                                                  2) Upon survival at the end 5 years:  'x'% of face amount
                                                                  Upon survival at the end of 10 years: 'y'% of face amount
                                                                  Upon survival at the end of 15 years: 'z'% of face amount                                       Upon survival to Maturity : 40% of face value + total guaranteed additions

3) Beneficiary details

Name of the beneficiary                          Share(s)
1)
2)

4) Rider details

Name of the rider  (Accidental death benefit or term rider)
Period of Coverage
Amount of coverage
Annexure reference

5) Other special provisions/options

Guaranteed Additions: Provided the policy is in force, a guaranteed addition of Rs 'X' per 1000 of face amount will be added to the face amount at the end of each policy anniversary and will be payable either on the date of maturity or on earlier death of the life assured.

6) Premium Summary

Policy type
Base policy premium
Accidental Death Benefit
Term rider
Total premium
Mode of payment
Due date(s) of (installment) premium        
Date of last installment premium due