“A Discussion on the products of Pragati Life Insurance Ltd” Introduction: Life insurance or life assurance is a contract between the policy owner and the insurer, where the insurer agrees to pay a designated beneficiary a sum of money upon the occurrence of the insured individual’s or individuals’ death or other event, such as terminal illness or critical illness. In return, the policy owner agrees to pay a stipulated amount at regular intervals or in lump sums. There may be designs in some countries where bills and death expenses plus catering for after funeral expenses should be included in Policy Premium.
In the United States, the predominant form simply specifies a lump sum to be paid on the insured’s demise. As with most insurance policies, life insurance is a contract between the insurer and the policy owner whereby a benefit is paid to the designated beneficiaries if an insured event occurs which is covered by the policy. The value for the policyholder is derived, not from an actual claim event, rather it is the value derived from the ‘peace of mind’ experienced by the policyholder, due to the negating of adverse financial consequences caused by the death of the Life Assured.
To be a life policy the insured event must be based upon the lives of the people named in the policy. History of the company PRAGATI INSURANCE LIMITED (PIL) was established in 1986. A group of young entrepreneurs of Bangladesh who had earlier launched a commercial Bank (National Bank) in the private sector sponsored the company with 30 million Taka capital. With the arrival of private sector power companies like AES, gas giants like UNOCAL, SHELL and development of other private sector infrastructure industries in the country, PIL has achieved great momentum.
Pragati Life Insurance Limited is a public limited company registered with the Registrar of Joint Stock Company and licensed by the Controller of Insurance, Govt. of Bangladesh to transact life insurance business in Bangladesh. The Board of Directors of Pragati Life is comprised of a group of dedicated and renowned business entrepreneurs of the country and have already proven their commitment and services in General Insurance through Pragati Insurance Limited. Now, they are committed to do the same with Life Insurance through Pragati Life Insurance Limited. Objective of this Report:
The objective of this report is to study and point out the products of an insurance company named Pragati Life Insurance Ltd. Limitations of this Report: This report only provides overview of different products of the insurance company and does not provide any statistical data or comparison with any other company. This report does not discuss legal aspect of the products. Products of Pragati Life Insurance Ltd: |Plan 1 –JIBON SATHI | | |Policy Term 11- 14 years.
After expiry of 5 years of the policy term, the policyholder will receive10 % of sum assurance every year before | |maturity. At maturity, the rest of the sum assurance will be paid with accrued bonus. | | | |Example: If you buy a 12-Year term policy with Tk. 1,00,000 Sum Assurance, you will receive Tk. 10,000 at the end of the 5th, 6th,7th, 8th, 9th and | |10th year, in total of Tk. 60,000. The rest of the sum assurance, Tk. 0,000 (with bonus) will be payable after the 12th year at maturity. In | |unfortunate death of policyholder during the term, the nominee will receive full sum assurance with accrued bonus even 0 though the policyholder | |receives any payment earlier. | | |Plan 2 – JIBON PROTTASHA (with Bonus) | | |Policy Term 12, 15, 18, 21, 27, 30 years. | | |Special Features: 10 % guaranteed profit on the deposited premiums at the end of 1/3 (one-third) of the term.
Another 10 % guaranteed profit on the| | |deposited premiums at the end of 2/3 (two-third) of the term. At maturity the full face amount will be paid with bonus. In case of death during the| | |policy term, full face amount with accrued bonus will be payable to the beneficiary even if guaranteed profit is paid earlier. | | |Plan 3 – JIBON TORI (with Profit) | | |Policy Term 12- 25 years. Single Premium Policy. On unfortunate death of the policyholder, the beneficiary will receive the full face amount. | | | | |If survive to the end of the term, policyholder will receive | | |Double of the Premium under Plan A | | |Two and half times of the premium under Plan B | | |Three times of the premium under Plan | | |Advantage in Single Premium policy is that there is no hassle for renewal payment. Policyholder also receives huge tax relief on the Premium. | | |Plan 4 – JIBON SOMAHAR ( with Profit) | | |Policy Term 12- 21 years.
To provide maximum security to your family with your limited income, you need to take advantage of this plan to| | |receive 5 types of benefits all under one plan. Premium as low as 5 taka per day ! | | | | | |If the policy is in force for the full term the following benefits are guaranteed: | | | | | |1) Death Cover : On natural death, Face Amount will be payable to the nominee. | | | | | |2) Accidental Death: On accidental death, nominee will receive double of the face Amount. | | | | |3) Disability Cover due to accident: Waiver of all future Premiums (Except Single Premium ) and 10 % of face amount payable per year in | | |monthly installments for 10 years. | | | | | |4) On Maturity: If any of the above events (death or disability) doesn’t happen, total premiums will be returned to the policyholder with| | |profit. Percentage of Profit will be equal to the policy term. For example, for 15 and 16 years policy the profit will be 15 % and 16 % | | |respectively on the total premiums. | | | | |5) Free Insurance Cover: On survival of the term, Free insurance cover will be available for period of 5 years for the reduced amount. So| | |in reality Life will be covered for (Policy Term + 5 yrs). | | | | | |This plan has option of paying Single Premium | | |Plan 5 – JIBON ALO (with Bonus) | | |Policy Term 12, 15, 18, 21 years. | | |01. 25% of the initial Face amount will be payable after expiry of the 1/3 of the term. Life risk will be increased to 1. 5 times of the | | |initial SA at the same time. | | | | |02. 25% of the initial Face amount will be payable after expiry of the 2/3 of the term. Life risk will be increased to 2 times of the initial| | |SA (double) at the same time. | | | | | |03. At maturity, the rest of 50% of the initial Face amount will be payable with accrued bonus. | | | | | |04. Beneficiary will receive 1. 5 times or 2 times of the initial Face amount if policyholder dies after 1/3 or 2/3 of the policy respectively| | |even if policyholder receives 25% or 50% of the Face amount earlier. | |Plan 6 – JIBON BONDHU (with Bonus) | | | |Policy Term 10- 25 years. | | | |This endowment plan provides payment of full-face amount with bonus at maturity if the amount assured is not paid to the beneficiary| | | |earlier as a result of death of the policyholder. The unique feature of this policy is that the policyholders will have the | | | |opportunity to change the plan into almost anything of their liking in the future. After 5 years of the policy term policyholder | | | |will have the following options to modify his/her policy.
The options are: | | | | | | | |Option 1: Increase / Decrease the Policy Term. Premium rate will change accordingly and the modified rate will be less than the age | | | |basis premium rate given in the Rate chart. | | | | | | | |Option 2: Increase / Decrease the Sum Assurance. Premium rate will change accordingly and the modified rate will be less than the | | | |age basis premium rate given in the Rate chart. Policyholder can exercise both the above options at the same time. | | | | | | | |Option 3: Stop paying premiums.
Get the coverage on life for higher sum assurance without any maturity value for the remaining term. | | | |This option is subject to certain rules and conditions. | | | | | | | |Option 4: Stop paying premiums. Get the coverage on life for an extended term without any maturity value. This option is subject to | | | |certain rules and conditions. | | | | | | | |Option 5: Stop paying premiums. Get the coverage on life for the same amount of sum assurance for the remaining term and receive all| | | |paid premiums with profit at maturity. | | | | | | |Option 6: Completely change the policy and opt for a different kind of plan. Premium rate will be changed accordingly. This option | | | |is subject to certain rules and conditions. | | | |Plan 7 – JIBON ABOKASH (Pension) | | |Policy Term 6 – 29 years. | | |In modern times financial planning is very essential if you like to have a steady monthly income when you retire from your work. | | |Annuities have an advantage over other investments in that the annuitant can never outlive the monthly income. | | | | |During your retirement you never need to worry how you will meet your monthly expenses as long as you live. Once started, Pension | | |will continue throughout the lifetime of the pensioner with guaranteed period of 10 years. If policyholder dies before pension | | |starts, all the premiums will be refunded to the beneficiary. | | | | | |For a small additional premium extra Life Risk Coverage on the policyholder could be included in the policy. Sum assurance will be | | |payable if policyholder dies before age 60 and before the pension starts. | | | | | | | |Plan 8 – JIBON BIKASH (Child Education) | | |Policy Term 3- 14 years. | | |Educational expenses are increasing every year so if you don’t invest or allocate your money properly today you might not have enough| | |money in the future to meet your child’s educational expenses. | | | | | |The earlier you start the cheaper your premium will be. | | | | | |Monthly Stipend will start when the child is at class X, 1(one) year before S.
S. C examination. Stipend will continue subject to the | | |condition that he/she is a regular student and classes/examinations are regularly held. Total of 108 monthly stipends will be | | |payable. | | | | | |Stipends & Lump Sum Amount (per Unit) | | |Level of Education | | |Annual Stipend* | | |Duration of Payment | |Total Stipend | | | | | |Class X – S. S. C – H. S. C | | |Tk. 1,200 | | |36 months (3 years) | | | Tk. 3,600 | | | | | |4-year Bachelor’s Degree | | |Tk. ,400 | | |48 months (4 years) | | |Tk. 9,600 | | | | | |2-year Master’s Degree | | |Tk. 3,600 | | |24 months (2 years) | | |Tk. ,200 | | | | | | | | |After Graduation a Lump Sum amount equals to All paid premiums will be payable for Higher studies/Marriage/Business or anything. | | | | | |* If anybody likes to modify monthly stipend amount please contact with us. | | | | | |If policyholder dies before the stipend payment begins, all the future premiums will be waived (not applicable for Single Premium | | |policy) and an annual allowance of Tk. 1200 per month (per Unit) will be payable to the child under the condition that the child | | |remains the regular student. After S. S. C the stipend payment will start accordingly. | | | | |For a small additional premium, extra Life Risk Coverage on the policyholder could be included in the policy. Sum assurance will be | | |payable if policyholder dies before age 60 and before stipend payment starts. | | | | | |This plan has option of paying Single Premium. | | | | | |Gift to a Child: | | | | | |Single premium policy is the perfect gift idea for a newborn baby or for your child on the occasion of Birthday. What could be better| | |gift than a plan which will assure bright future of your child! | | | | |Anybody can buy this plan for any child but the name of the proposer of this policy has to be the parent or the child’s local | | |guardian. | | |Plan 9 – CORPORATE PLAN (Single Premium) | | |Policy Term 3, 5, 10 years. | | |01. When policyholder dies of natural cause before age 60, the family receive payment | | | | | |02. If death occurs due to accident, the family receives payment | | | | | |03.
Policyholder receives lump sum amount if the accidental injuries causes permanent partial disability and the following losses: | | | | | |04. If the accident results in non-recoverable permanent total disability for a period of 1 (one) year and makes the insured unable to| | |perform any job that he/she is qualified for by training, experience or education, the policyholder receives cash payment. | | | | | |05. If policyholder is admitted to hospital as an in-patient due to accidental injuries, he/she will receive daily benefit for each | | |day of confinement up to 365 days. | | | | |06. No Claim Bonus: Portion of the premium will be refunded at the end of the term as no claim bonus if no claim is submitted. | | |Plan 10 – JIBON UTTORON (Joint Life) | | |Policy Term 10 – 25 years. | | |1. On Death of the Policyholder : | | | | | |a) 10 % of Sum Assurance (SA) is paid to the nominee. | | | | |b) 1 % of Sum Assurance per month to the child (if the child is alive) until the policy term expires. | | | | | |c) Waiver of all future premiums | | | | | |d) Payment of the SA at the end of the term. | | | | | |2.
On death of the Child : | | | | | |a) If child were less than 6 months, 25% of SA payable. | | | | | |b) If child were between 6 months and 1 year, 50% of SA payable. | | | | | |c) If child were between 1 year and 2 years, 75% of SA payable. | | | | | |d) If child were more than 2 years, 100% of SA payable. | | | | | |3.
On survival of both the parent and the child up to maturity: | | | | | |Full Sum Assurance with bonus payable. | | |Plan 11 – JIBON POROSH (Hospitalization Insurance) | | |All kinds of hospital related expenses e. g. Room rent, Consultation fees, Routine Investigation, Medicines, Surgery and Ancillary| | |services will be covered under this plan. | | |Plan 12 – JIBON SHONCHOI (Single Premium) | | |Policy Term 2- 5, 6, 9 years. | | | | |Single Premium | | |Policy Term | | |Sum Assurance | | |(payable on death) | | |Maturity Value | | |(payable at maturity if survives) | | | | | |Premium amount will be decided by the Policyholder. | | |2 Years | |150 % of Single Premium | | |110 % of Single Premium | | | | | | | | |3 Years | | |150 % of Single Premium | | |120 % of Single Premium | | | | | | | | |4 Years | | |175 % of Single Premium | | |130 % of Single Premium | | | | | | | | |5 Years | | |175 % of Single Premium | | |140 % of Single Premium | | | | | | | | |6 Years | | |200 % of Single Premium | | |150 % of Single Premium | | | | | | | | |9 Years | | |200 % of Single Premium | | |200 % of Single Premium | | | | Lacking of the company Suggestion Conclusion: