i.c. Sadabahar PlanSadabahar is also one of anticipated endowmenttype policy plan with profit which presents all-sum benefit at certain stagesover the premium-paying term or on earlier death. Additionally, this plan hasfeature of an Accidental Death Benefit (ADB) rider which provides additionalsum assured to policyholder death occur due to an accident.
This plan is a safe instrument for cash provision at the time of need. Withthis plan, the policyholder can secure greater protection and continuedprosperity for the family at an affordable cost. Admissible ages and terms forthis plan is available to all general public members, whose age is from 20 to60 years nearest birthday. Both males and females can buy this plan.
under thisplan are 12,15,18, 21, 24, 27 and 30 years Terms are offer. On the death ofinsured man rates of bonus applicable willbe 25% higher than those on anticipated endowment plan (State Life, 2016).3.1.3.
Endowment Life Insurance:It is a policy which is designed especially forproviding a benefit in life which can be purchase by minimum 10 years old youngman or maximum by 65 years old man. It is life insurance contract which pays alump sum amount either at time of maturity (at age of 75) of policy or at timeof death of policyholder. This policy is more of plan of an investment.Endowment life insurance is by use by many investors in expected financialneeds such as schools, college education or for retirement. This policy can beclaimed for surrender or cash before maturity date of policy and policyholderare received surrender value from the insurance company which is determine bythe duration of policy and the number of premiums paid by the insured.
The premiumfor this type of life insurance policy is higher than whole life insurancepolicy. On one lack sum assured which is invested the profit will be 2,30,000 (Gala,2012).3.1.4. Three Payment Plan:It is an endowment policy for which a part of the sum insured is paidto the policyholder in the form of survival benefits, at fixed intervals,before the maturity date.
The risk cover on the life continues for the full suminsured even after payment of survival benefits and bonus is also calculated onthe full sum insured. If the policyholder survives till the end of the policyterm, the survival benefits are deducted from the maturity value. 3.2. IMPORTANCE OF LIFE INSURANCE:Here are a few other reasons why having lifeinsurance is important.· Toprotect our family members to supportfor their lives, the life insurance is important in day-to-day situation becausein case of sudden die of earner it will source of their income. It is essentialto have adequate for daily costs to fulfilment of basic needs of life byreceiving it.· Byinvesting in life insurance policy, it can be the method of leaving some inheritanceto his heirs for good future.
· Torepay the debts and other expenses, such as the mortgage, creditcards and car loans, life insurance can be the method of repayment.· Bypurchasing the life insurance policy, it is the way to secure finance whentheir parents are died. It can not only improve education of their kids butalso may be provides the way to start new business, for getting married orusing for other purpose.· Aslife of everyone is limited, there is no guarantee of life.
no money can everreplace a person but without any doubt life insurance can bring peace of mindand make parents sure about their kid’s future (payoff life, 2016).3.3. Introduction Of Bancassurance:Generally,life insurance, general insurance and health insurance are three forms ofinsurance. Bancassurance is a channel of selling life insurance products.
retirementplans, education plans, marriage plans, saving plans and business plans are themain life insurance products which are selling by banks. Bancassurance is therelationship between banks and insurers aims at providing life insuranceproducts to bank customers to provide better financial protection. Recently in Pakistan,bancassurance showed a progressive movement in the life insurance sector, wherestrategic alliances are signed by life insurers with banks with purpose of distributionof life insurance product through the banking shelter (Swiss Re, 2007).