CSC_VLE TRAINING

Variable Insurance
Products

A Variable Insurance Product (VIP)

is a type of Product segment.
Notes by Student
Apart from offering life insurance
cover, VIP is characterized by a
policy account for each policy, whose
balance depicts the accrual to the
policyholder.
This policy account is credited with
premium, net of all charges, as and
when paid by the policyholder.
The Variable Insurance Product offers
a minimum guaranteed interest rate,
which is known as Minimum Floor
Rate and shall be applicable to the
balance of the policy account.
The statement of policy account is
to be sent to the policyholder once
in a year. IRDA has now permitted
that VIPs
can be
offered
both
under
Linked and
Non-
Linked
Product
categories
.
 Training of VLE - Variable Insurance
Advantages of Variable Benefits under Variable
Insurance Products Insurance Products
1) Transparency: All the Death Benefit:
charges levied from the i) The Sum Assured as
premiums are disclosed
to
the customer and the agreed in the policy
Policy Account Value is plus the balance in
separately maintained the
for policy account
each policy and
periodic
information on the OR
balance in the Policy
ii) The Sum assured as
Account is informed to
the policy holder. agreed in the policy
or
2) Offers both Life the balance in the
Insurance Cover and policy account,
Maturity Benefit. whichever is higher.
3) Offers Guaranteed Maturity Benefit:
Non-
Zero positive Interest Equal to the balance in the
rate
on balance in the Policy
Account. policy account together with
a
terminal bonus, if any as
4) Flexibility such as applicable in case of Non-
partial
withdrawals. Linked VIP.
5)No surrender charges In case of Linked VIP the

after five years from maturity benefit is equal to

commencement of balance in the policy
Policy account.