Summer Training Report ON

Topics name (block letters) At Training Institute Submitted in partial fulfillment of the requirement of the degree of BACH !"#S "$ B%SI& SS A'(I&IST#ATI"& Affiliated from H)&)B) *arh+al %ni,ersit-. Srinagar Submitted byStudents Name (Specialisation) 2009--2012 Internal Guide: Name !esi"nation I#$ % !e&radun' E ternal Guide: Name !esi"nation (ompany name

)E$*)+S

*ppro,ed-!isappro,ed (Internal Guide)

*ppro,ed-!isappro,ed (.ead o/ t&e !epartment)

DEPARTMENT OF MANAGEMENT

INSTITUTE OF TECHNOLOGY & MANAGEMENT DEHRADUN

Summer Training Report ON

DEPARTMENT OF MANAGEMENT INSTITUTE OF TECHNOLOGY & MANAGEMENT DEHRADUN

(ompany 0s (erti/icate

*(+N123E!GE$EN# At the ,er- outset. I +ould like to ackno+ledge +ith immense gratitude the support and guidance of some people +ithout +hom the pro7ect could not ha,e been completed) Also thanks to them. I learnt a lot more additional things than that 7ust restricted to m- pro7ect) $irst of all I +ould like to thank m- pro7ect guide ///////////////////// ('esignation) for his support and patience +ith me despite him being hard pressed for time) I am thankful to (compan-s profile) for pro,iding me +ith the +onderful opportunit- and allo+ing me to take this stud-) Also I +ould like to thank the facult- guide of m- college (facult-s name) +ho guided me in m- pro7ect) I +ould also like to thank (other members of -our training institute +ho helped -ou out in completion of -our pro7ect report)) !ast but not the least I +ould like to thank m- parents +ho ha,e al+a-s sho+ed their full faith in me. and are the biggest source of m- encouragement and guidance) Students name

CANDIDATE S DECLARATION
I hereb- declare that the +ork for the pro7ect #eport entitled 9 pro7ects title: is completel- done b- me. based on m- o+n +ork conducted in 9 training institute: for the partial fulfillment of m- Bachelors of Business Administration) Admittedl- I ha,e recei,ed suggestions and guidance from m- guides)

'ate/ ;lace/

(Signature) BBA (0112/0130)

<

CONTENTS

Title
#o 4&om so e,er it may concern *c5no4led"ement 6re/ace (andidates declaration (.*6#E) No' (&apter-1 !ES()I6#I1N (ompanys pro/ile 1'1 *n Introduction 1'2 $ission 1'7 Goals #opic underta5en 2'1 an introduction 2'2 de/initions by di//erent aut&ors )esearc& $et&odolo"y 7'1 )esearc& 6roblem 7'2 )esearc& 1b8ecti,e 7'7 #ypes o/ researc& 7'9 $et&ods o/ data collection 7': data analysis ; interpretation 7'< =indin"s )ecommendations ; Su""estions (onclusions anne ure biblio"rap&y ii iii i, , 6*GE No'

(&apter-2

(&apter-7

(&apter-9 (&apter-: (&apter-< (&apter->

A TH SIS "&

Comparative analysis of unit linked insurance plan and traditional insurance plan with respect to HDFC Standard Life Insurance Ltd.

BSA&>A? 'I@IT A&B'H318

A TH SIS "&

Comparative analysis of unit linked insurance plan and traditional insurance plan with respect to HDFC Standard Life Insurance Ltd.

BSA&>A? 'I@IT A&B'H318 A report submitted in partial fulfillment of the requirements of TH (BA ;#"*#A( (The Class of 0112) I&C. 'ehradun

(1N#EN#S
PARTICULARS Ackno+ledgement 'eclaration Abbre,iation SummarIndustr- profile Compan- profile #esearch methodologClassification of !ife Insurance ;roducts $indings Anal-sis #ecommendations Appendices #eferences

*(+N123E!GE$EN#
Heartfelt thanks to the follo+ing peopleC) A $e+ t-pe+ritten +ords of thanks can/not reall- e5press the sincerit- of m- gratitude) But I am still tr-ing to put into +ords mgratefulness to+ards all +ho ha,e helped D encouraged me in carr-ing out this pro7ect) I +ould like to thank ?ri"' $'3'Sabar4al (6rincipal IN( !e&radun) for gi,ing me the opportunit-. m- +orth- thanks to mteacher $r' *mit @os&i (=aculty Super,isor) for their ,aluable contribution during the academic session and guidance in preparation of this pro7ect report) This report con,e-s m- heartiest thanks to m- friends for helping me in choosing the topic for this pro7ect D helping me in completion of this pro7ect) &o praise is ample for the ne,er tiring efforts of mcolleagues +hose constant support feedback. guidance D practical suggestions helped me in completing this ;ro7ect successfull-)

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!E(3*)*#I1N
I hereb- declare that the pro7ect

!Comparative analysis of unit linked insurance plan and traditional insurance plan with respect to HDFC Standard Life Insurance Ltd.
is an original and bon/a/fide +ork done b- me) The pro7ect is being submitted in partial fulfilment for the a+ard degree of (aster of Business Administration from. I(=*I N*#I1N*3 (133EGE !E.)*!AN'

S !"ITT#D T$% Mr. !mit "oshi

S !"ITT#D !&% San#ay Di$it M%! III &'%DH()*

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*??)EBI*#I1NS
HDFC- Housing Development Finance Corporation. SLIC- Standard Life Insurance Company. FC- Financial Consultant.

GDP- Gross Domestic Product. IRD - Insurance Regulatory and Development ut!ority. IR - Insurance Regulatory ut!ority.

"LIP- "nit Lin#ed Insurance Plan. $ %- $et sset %alue. L - Life ssured. S - Sum ssured. &'R(- $o. of )ears. D*- ccidental Deat! *enefit.

CI- Critical Illness.

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SA$$*)C

In India. insurance is generall- considered as a ta5/sa,ing de,ice instead of its other implied long/term financial benefits) Indian people are prone to in,esting in properties and gold follo+ed b- banks deposits) The- selecti,el- in,est in shares also but the percentage is ,er- smallE8)<F) ,en to this da-. !ife insurance market has become more ,ibrant) Smashing all doubts o,er the decision to liberaliGe the industr-. the o,er+helming first -ear performance of the Indian insurance sector is test case of a massi,e success stor- of pri,ate pla-ers entering into the erst+hile state monopol-) India is marching ahead to more prosperous future) The econom- is on a high gro+th path. domestic sa,ings are gro+ing. e5ports ha,e risen and inflation has stabiliGed) Infrastructure sector. +hich e,en toda- is +oefull- inadequate to meet the e5pected increased industrial acti,ities. has been accorded top priorit- b- the go,ernment) All this should reflect in a gro+th rate of A to BF for the ne5t 6/8 -ears) Hith this scenario of high economic gro+th further reforms in the financial sector are in the Common (inimum ;rogram of the *o,ernment)
36

India is regarded as under/ insured countr- +ith insurance penetration at a ,er- lo+ le,el of 1)=F of *';) Insurance. as a rule. has al+a-s been gi,en ,er- lo+ priorit- b- corporate India) It is al+a-s taken +ith reluctance. usuall- onl- +hen it is compulsor-. and then onl- bbig industrial houses) Hithout e5ception it is al+a-s inadequate to meet the needs of the corporate sector) In addition to the tradition e5posure of fire. floods. +orkers compensation and the interruption. Corporate India also has to address unpredictable changes in areas such as en,ironmentI securit-I occupational health and safet-I public liabilitiesI 'irectors and "fficers !iabilit- and product liabilit-) It therefore becomes quite ob,ious that purchase of insurance. in itself. +ill not substitute for a soundl- based and propert- implemented #isk (anagement ;rogram as insurance can onl- offer some financial relief b- replacing the plantsI it cannot replace the loss in de,elopment of a business or de,elopment of the market)

38

IN!AS#)C 6)1=I3E
Insurance ma- be described as a social device to reduce or eliminate risk of life and propert-) %nder the plan of insurance. a large number of people associate t&emsel,es by s&arin" ris5% attac&ed to indi,idual' #&e ris5% 4&ic& can be insured against include fire. the peril of sea. death. incident. D burglar-) An- risk contingent upon these ma- be insured against at a premium commensurate +ith the risk in,ol,ed) Insurance is a contract between 2 parties whereby one party called insurer undertakes in exchan e !or a !ixed su" called pre"iu" to pay the other party happenin o! a certain e#ent$%

Definition of Insurance
Insurance is a contract 4&ereby% in return /or t&e payment o/ premium by t&e insured% t&e insurers pay t&e /inancial losses su//ered by t&e insured as a result o/ t&e occurrence o/ un/oreseen e,ents' 2it& t&e &elp o/ insurance% lar"e number o/ people e posed to a similar ris5 ma5e contributions to a common /und out o/ 4&ic& t&e losses su//ered by t&e un/ortunate /e4% due to accidental e,ents% are made "ood' General definition: In the +ords of >ohn (agee. 9Insurance is a plan b- +hich large number of people associate themsel,es and transfer to the shoulders of all. risks that attach to indi,iduals):

3<

Fundamental definition: In the +ords of ')S) Hansel. 9Insurance ma- be defined as a social de,ice pro,iding financial compensation for the effects of misfortune. the pa-ment being made from the accumulated contributions of all parties participating in the scheme):

=AN(#I1N 1= INSA)*N(E:

I Pri"ary &unctions J The primar- functions of insurance include the follo+ing) i' Pro#ide Protection

The primar- function of insurance is to pro,ide protection against future risk. accidents and uncertaint-) Insurance cannot check the happening of the risk. but can certainl- pro,ide for the losses of risk) ;rofessor Hopkins obser,es KInsurance is a protection against economic loss. b- sharing the risk +ith others): ii' Collecti#e bearin o! risk

Insurance is a de,ice to share the financial loss of fe+ among manothers) 'ins dale opines. insurance is a mean b- +hich fe+ losses are shared among longer people) Similarl-. Hilliam Be,ridge obser,es. KThe collecti,e bearing of risks is insurance)K All the insured contribute the premiums to+ards a fund and out of +hich the persons e5posed to a particular risk is paid) iii' Assess"ent o! risk

Insurance determines the probable ,olume of risk b- e,aluating ,arious factors that gi,e rise to risk) #isk is the basis for determining the premium rate also i#' Pro#ide certainty

3=

Insurance is a de,ice +hich helps to change from uncertaint- to uncertaint-) This ma- the reason that >ohn (agee +rites that the function of insurance is to pro,ide certaint-) Similarl-. #iegel and/ (iller obser,e. KInsurance is de,ice +hereb- the uncertain risks mabe made more certainK) II$ Secondary !unctions i' Pre#ention o! losses

Insurance cautions indi,iduals and businessmen to adopt suitable de,ice to pre,ent unfortunate consequences of risk b- obser,ing safet- instructionsI installation of automatic sparkler or alarm s-stems. etc) ;re,ention of losses causes lesser pa-ment to the assured b- the insurer and this +ill encourage for more sa,ings b+a- of premium) #educed rate of premiums stimulate for more business and better protection to the insured) ii' S"all capital to co#er lar er risks

'ins dale obser,es. insurance relie,es the businessmen from securitin,estments. b- pa-ing small amount of premium against larger risks and uncertaint-) iii' Contributes towards the de#elop"ent o! lar er industries

Insurance pro,ides de,elopment opportunit- to those larger industries ha,ing more risks in their setting up) ,en the financial institutions ma- be prepared to gi,e credit to sick industrial units +hich ha,e insured their assets including plant and machiner-) III$ (ther !unctions E the- include4 (eans of sa,ings and in,estment4 insurance ser,es as sa,ings and in,estment. insurance is a compulsor- +a- of sa,ings and it restricts the unnecessar- e5penses b- the insureds $or the purpose of a,ailing income/ta5 e5emptions also. people in,est in
3A

insurance) Source of earning foreign e5change4 Insurance is an international business) The countr- can earn foreign e5change b- +a- of issue of marine insurance policies) ;romotes e5ports insurance makes the foreign trade risk free +ith the help of different t-pes of policies under marine insurance co,er)
)13E 1= INSA)*N(E SE(#1) IN IN!I*

I Protecti#e role Insurance has been pla-ing protecti,e role to+ards the de,elopment of industr- and commercial institutions) The ma7or protecti,e measures ha,e been4 i' Protection from ris#s arising out of natural calamities Insurance has also been pla-ing important role in protecting the industr- and commercial acti,ities from natural calamities like fire. marine losses. floods. earth quakes. c-clones etc) ii' Protection from t!e ris#s caused +y !uman +eings Insurance pro,ides protection against risks caused b- human beings such as strikes b- +orkers. their negligence in carr-ing out +ork. theft and dacoits. e,il disturbances and man- other such acts) In addition to the issue of policies against such causes. insurance also issues policies to protect the industr- and commercial institutions from the loss of mone- in transit) iii' Protection against statutory lia+ilities Insurance also pla-s the role of protecting the industr- and commerce in fulfilling statutor- liabilities to+ards the +orkers. arising out of industrial accidents) The emplo-er is bound to compensate such +orkers under the pro,ision of HorkersL Compensation Act) In case the emplo-er obtains an accidental polic- in fa,or of emplo-eesI the mone- to be paid as compensation to the accident ,ictims. can be chimed from the insurance compan-)

3B

i#' $inancial securitInsurance pro,ides financial securit- also to industr- and commerce) 5ports of goods to other countries b- sea. storage of goods in safe go do+ns and ,arious other kinds of financial losses are secured binsurance policies) #' Protection from loss of profits InsuranceL also has e5tended its role of protecting different industrial and commercial acti,ities. it pro,ides protection against losses arising from shops or factories) It also undertakes to indemnit- the loss of profits from business functions) This +a-. the loss of profits and propert- M both are protected) #i' Protection of de+ts A trader can protect himself b- taking appropriate polic- against the credit sales or propert- kept on securit- against goods or propert-) Thus. the insurance protests the trader e,en in case the debtor dies or of damages to the goods)

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#ii' Protection to t!e +usiness institution due to sudden deat! of t!e me #ey man The successful operation and de,elopment of a business largeldepends on its directors. managers and administrati,e personnel) Sudden and untimel- death of such person ma- badl- affect the functioning of the business and man- problems ma- also arise in da-/to/da- functioning of business) Insurance pla-s important role b- insuring the life of ke- man in the business so that the future can be protected safel- from uncertainties) #iii' Provides sta+ility in commercial and industrial activities Insurance companies e5tend ,arious kinds of assistance to business enterprise to run the business regularl- and continuousl-) It pla-s important role in partnership business b- insuring the life of partners so that in case of death of an- partner. the claim recei,ed from the insurance compan- can be used for meeting pa-ment to the dependents of deceased partner) II Pro"otional role o! insurance Insurance pla-s important role in setting up industrial and commercial unitsI b- +a- of capital formation. ne+ in,estment. industrial entrepreneurship. under/+riting of shares and in,estment in capital market) In addition to protecti,e measures. it pla-s promotional role also. +hich are briefl- described belo+4 i' ',tension of credit facilities Insurance e5tends credits to industrial and commercial institutions) An entrepreneur can get insurance of unit. plant and machiner-. or permanent assets purchased b- him and get them mortgaged +ith the financial institutions for getting credit) ii' Facilities industriali-ation and commerciali-ation Insurance contributes for the de,elopment of ,arious commercial acti,ities like bu-ing/selling. transportation. communication. +arehousing. packaging. ad,ertising and publicit-. and agricultural marketing etc) iii' Increases +usiness and industrial efficiency The efficient management of industrial and commercial acti,ities
01

become possible due reductions in business risks) Insurance pro,ides protection from ,arious risks and thus it increases the business efficienc-) i#' In,estment in shares and debentures Insurance companies e5tends its support for the de,elopment and e5pansion industrial and commercial acti,ities b- in,esting in shares and debentures issued b- the industrial units) #' Contri+ution to.ards t!e development of +asic industries Insurance has contributed much to+ards the de,elopment and e5pansion of basic industries like iron and steel cement. engineering. chemicals. petro/chemicals. electric goods. fertiliGers. etc) bin,esting in shares and debentures) #i' Contri+ution to.ards fulfilment of social and statutory o+ligations Insurance institutions in the countr- also ha,e been contributing much in fulfilment of social and statutor- obligations b- contributing +ell in social +elfare schemes operated b- industrial establishments. social securit-. schemes. +orkers compensation plan. pa-ment of gratuit- etc) #ii' Contri+ution to.ards development of international trade The ,arious policies issued b- marine insurance companies help for the de,elopment of international trade b- protecting the e5portersM importers from marine losses and risks) This role of insurance companies has been helpful in earning more foreign e5change bincreased participation b- traders in international trader

03

(1$6*NC 6)1=I3E
.!=(: H'$C Incorporated in 32AA +ith a share capital of #s 31 Crores. H'$C has since emerged as the largest residential mortgage finance institution in the countr- The Corporation has had a series of share issues raising its capital to #s) 332 crores) The gross premium income for the -ear ending (arch 63. 011A stood at #s) 0. B<= crores and ne+ business premium income at #s) 3.=08 crores) The compan- has co,ered o,er B.AA.111 li,es -ear ending (arch 63. 011A) H'$C operates through almost 8<1 locations throughout the countr+ith its corporate head quarters in (umbai. India) H'$C also has an International "ffice in 'ubai. %A . +ith ser,ice associates in Nu+ait. "man and Oatar) .!=( is t&e lar"est .ousin" (ompany in India /or t&e last 2> years' S#*N!*)! 3I=E: Standard !ife is uropes largest mutual life assurance compan-) Standard !ife. +hich has been in the life insurance business for the past 3A< -ears is a modern compan- sur,i,ing quite a fe+ changes since selling its first polic- in 3B0<) The compan- e5panded in the 32th centur- from kits original dinburgh premises. opening offices in other to+ns and acquitting other similar businesses)

Standard !ife Currentl- has assets e5ceeding o,er P A1 billion under its management and has the distinction of being accorded 9AAA: rating consequentl- for the si5 -ears b- Standard and ;oor)

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@1IN# BEN#A)E: H'$C Standard !ife Insurance Compan- !imited +as one of the first companies to be granted license b- the I#'A to operate in life insurance sector) #each of the >Q pla-er is highl- rated and been conferred +ith man- a+ards) H'$C is rated RAAA b- both C#ISI! and IC#A) Similarl-. Standard !ife is rated RAAA both b- (ood-s and Standard and ;oors) These reflect the efficienc- +ith +hich H'$C and Standard !ife manage their asset base of #s) 3<.111 Cr and #s) =11.111 Cr) #especti,el-) H'$C Standard !ife Insurance Compan- !td +as incorporated on 38th August 0111) H'$C is the ma7orit- stakeholder in the insurance >Q +ith A8F stakes and Standard4 of as a stake of 0=F) (r) 'eepak Sat+alekar is the (' and C " of the ,enture) H'$C Standard !ife Insurance Compan- !td) Is one of Indias leading ;ri,ate !ife Insurance Companies. +hich offers a range of indi,idual and group insurance solutions) It is a 7oint ,enture bet+een Housing 'e,elopment $inance Corporation !imited (H'$C !td)) Indias leading housing finance institution and the Standard !ife Assurance Compan-. a leading pro,ider of financial ser,ices from the %nited Ningdom) Both the promoters are +ell kno+n for their ethical dealings and financial strength and are thus committed to being a long/term pla-er in the life insurance industr-/ all important factors to consider +hen choosing -our insurer)

06

BISI1N S#*#E$EN#

To be The "ost success!ul and ad"ired li!e insurance co"pany) which "eans that we are the "ost trusted co"pany) the easiest to deal with) o!!er the #est #alues !or "oney) and easiest the standards in the industry) In short) The" "ost ob#ious choice !or all$ %

08

B*3AES
Integrit Inno,ation Customer centric) ;eople care) Team +ork) >o- and Simplicit-)

0<

)ESE*)(. $E#.1!131GC

"b7ecti,e of stud T-pe of research Source of data Sampling unit Sample siGe T-pe of sampling (ethod of data collection Instrument used for data collection !imitation

0=

)ESE*)(. $E#.1!131GC #esearch (ethodolog- deals +ith. the procedure adopted to carr- out the stud-) According to green and Tull4 9A research design is the specification of methods and procedures acquiring the information needed It is the o,erall operational pattern or frame+ork of the pro7ect that stipulates +hich information is to be collected from +hich sources b- +hat procedures) 1?@E(#IBE 1= S#A!C The purpose of research is to disco,er ans+er to questions through the application of scientific procedures) The main aim of research is to find out truth +hich is hidden and +hich has not been disco,ered as -et) He ma- think of research ob7ecti,es as falling into a number of follo+ing broad grouping4 To check the a+areness le,el of people about insurance) To kno+ the reasons for increasing trend of unit linked insurance plan) To kno+ ho+ %!I; are differ from Traditional plans means ho+ thegi,e better returns than traditional plan) Comparison of %!I; +ith other in,estment instrument a,ailable in the market) #C6E 1= )ESE*)(. #esearch refers to the search for kno+ledge) It can be defined as scientific and s-stematic search for pertinent information on a specific topic) It

0A

is careful in,estigation or enquir- especiall- through search for ne+ facts of anbranch of kno+ledge) #esearch pla-s an important role in the pro7ect +ork) The result of the pro7ect is completel- based upon the research of the facts and figures collected through the different +a-s of research) That is +h- it is also called a mo,ement from kno+n to unkno+n) E ploratory or =ormulati,e researc&4 5plorator- research is conducted to clarif- the ambiguous problems) !escripti,e researc&4 To portra- the characteristics of an indi,idual. group. situation) !ia"nostic researc&4 To determine the frequenc- of occurrence of an e,ent) S1A)(E 1= !*#* In the data collection method. +e ha,e collected both primarand secondar- data to meet our ob7ecti,e) 6rimary data: The primar- data +as collected b- a sur,e- based on the questionnaire) It +as formulated on the basis of information gathered b- me +ith the help of (r) Napil Cha+la +ho pro,ide useful guidelines and ob7ecti,e of our stud-) Secondary data: The secondar- data +as collected from books and internet) )esearc& *pproac&: The required information in the form of data is collected through sur,emethod. +ith the help of personal inter,ie+ through questionnaire method)

0B

Samplin" plan: There is a stage +here the planning is done about the sample units. sample siGe. sampling procedures. etc) Samplin" units: This means. +hich is to be sur,e-ed) So as mention earlier that the sample units is potential peoples)) Sample siDe: The sample siGe means ho+ man- peoples should be sur,e-ed) So that total sample siGe is 311. +hich co,er from different area of *urgaon) Samplin" 6rocedures: I choose con,enient and 7udgmental sampling for m- research) !ata collection met&od : ;ersonal inter,ie+ method is used for collection of primar- data in the form of questionnaire from respondents) )esearc& Instruments: "nce the source of data collection is decided then comes the instrument for data collection or the research instrument) In this sur,e- method a questionnaire +as framed) This is ;hilip b- the potential people though personal inter,ie+

02

3I$I#*#I1N Ho+ so e,er impeccable a thing ma- see to be there al+a-s d+ell some possibilities of failure and incompleteness) The result of this +ork also sub7ect to some of limitations) Hhich are as follo+s4 The main limitation of the stud- is the a,ailabilit- of time) As the sufficient time +as not a,ailable for collection of information) Some respondents +ere not interested in gi,ing ans+er and the- appeared to be bus-) !ack of e5perience)

.C61#.ESES
The stud- +ill include t+o h-potheses +hich +ill help us understand +hat age group prefers to in,est in +hat t-pe of financial in,estment. and the second +ill tell us +hat should be the lo+er limit of the premium charged b- the companies for a %!I; plan) The t+o h-potheses are as follo+s4 3) ;eople belo+ 0< -ears of age prefer to in,est in secured in,estment plan) 0) ;eople prefer %!I; plans +ith premium abo,e #s) 31111 per annum)
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$1S# )E3I*?3E 6B#' 3I=E INSA)*N(E (1$6*NC

MOST RELIA"LE P#T$LIFE INSURANCE CO$

12% 15%

9%

25%

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IN#)1!A(#I1N #1 I)!* Insurance re"ulatory aut&ority% 199< (I)*): The I#A +as set up in >anuar- 322= The I#A bill has first to be passed b- parliament to make the I#A a statutor- bod-) Second. the po+ers of the erst+hile controller of insurance ha,e to be conferred on the I#A) Third. comprehensi,e legislation aimed at re,ie+ing the insurance act of 326B and repealing the !I$ I&S%#A&C C"#;"#ATI"& ACT of 32<= and the general insurance (&ationaliGation) act of 32A0 ha,e to be passed) Go,ernments pronouncements: ;ost statutor- status. I#A to be centre piece for future insurance sector reforms I#A +ill be sole authorit-. +hich +ill be responsible for a+arding of licensing i)e) little or no go,ernment or political interference in licensing in process) &o restriction on the no) of licenses) &o composite licenses for life and non life business)

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I)!* 4as set up to protect t&e interests o/ t&e policy&olders% to re"ulate% promote and ensure orderly "ro4t& o/ t&e insurance industry' */ter t&is t&e pri,ate players started enterin" t&e mar5et'

(lassi/ication o/ 3i/e Insurance 6roducts He can classif- insurance plan in t+o categories) Traditional %!I; #raditional #erm Insurance : %nder term insurance plan. sum assured is pa-able onl- if death occurs during the specified pre/determined term) If death does not take place during such term the amount of premium stands forfeited) Thus it can be seen that the term insurance is nothing but the cost of pure protection) It is a contract. +hich pro,ides financial protection if death should occur +ithin a specified period) &o sur,i,al benefits are pro,ided under the contract) 2&ole li/e insurance: Hhole life insurance pro,ides for the pa-ment of the face ,alue upon the death of the insured. regardless of +hen it ma- occur) This polic- furnishes permanent protection to the insured at he moderate cost) This is highlimportant for the a,erage man or +oman of moderate salar-. +ho require considerable famil- protection and +hose limited income does not enable him

66

or her both to pa- premiums and to accumulate a large sa,ings fund) The +hole life polic- pro,ides a capital sum of mone- in the e,ent of death of the assured +hene,er that ma- occur)

Endo4ment 6olicy: ndo+ment is a product. +hich includes #isk co,er and sa,ing also) In the pure endo+ment polic- the sum assured is pa-able in the e,ent of death or definitelon maturit-) In an endo+ment sum assured is for sure gi,en to the polic-holder on completion of the term) ndo+ment plans are ,er- popular in de,eloping nations since the- ser,e a dual purpose of life co,er and sa,ings) (an- a people in our countr- go for endo+ment products because of the compulsor- sa,ing aspect) An endo+ment plan on the other hand is not a cheap plan since the insurer has a dual liabilit- of pro,iding life co,er and on maturit- gi,ing the entire sum assured)

*nnuities: Annuities refer to income or other financial pro,ision usuall- for retirement or old age) An Annuit- ma- be defined as a periodic repa-ment made during a fi5ed period or for the duration of a designated life or li,es) In one sense the life annuit- ma- be described as the opposite of insurance protection against death in its pure form a life annuit- ma- be defined as a contract +hereb- for a premium consideration one part- (the insurer) agrees to pa- the other (the annuitant) a stipulated sum (the annuit-) periodicall- throughout life) The purpose of the annuit- is to protect again a riskEthe outli,ing of ones income)

68

ANI# 3IN+E! INSA)*N(E 63*N (A3I6) %nit linked insurance plan (%!I;) is a life insurance solution that pro,ides the client +ith the benefits of protection and fle5ibilit- in in,estment) It is a solution +hich pro,ides for life insurance +here the polic- ,alue at an- time ,aries according to the ,alue of the underl-ing assets at the time ) The in,estment is denoted as unit and is represented b- the ,alue that it has attained called as Net *sset Balue (&AQ))

UNIT LIN%ED INSURANCE POLICIES

UNITS IN FUNDS

UNDERLYING IN#ESTMENT

%!I; came into pla- in 32=1s and became ,er- popular in Hestern urope and America) The reason that is attributed to the +ide spread popularit- of %!I; is because of the transparenc- and the fle5ibilit- +hich it offers to the clients)

6<

As time progressed the plans +ere also successfull- mapped along +ith life insurance needs to retirement planning)In toda-s times %!I; pro,ides solution for all the needs of a client like insurance planning. financial needs. financial planning for childrens future and retirement planning)

Structure 1/ Alip

6)E$IA$

3ESS (.*)GE

INBES#$EN# )E6)ESEN#E! *S ANI#S

3I=E (1BE)

?ene/its o/ unit lin5ed plan :

%!I; distinguishes itself through the multiple benefits that it pro,ides to the consumer) The plan is a one stop solution pro,iding 3) !ife protection 0) In,estment and Sa,ings

6=

a) (arket linked fund based on risk profile b) S+itch option c) ;remium redirection d) Automatic transfer plan(AT;)

6) $le5ibilit- of co,er continuance 8) Transparenc<) 5tra protection +ith riders a) 'eath due to accident b) 'isabilitc) Critical illness =) !iquidita) 'uring the term partial +ithdra+als b) At (aturitA) Ta5 planning

6A

(&ar"es Ander Alip

(ontribution related c&ar"es: These are the charges that are represented as a percentage of the regular or single contribution paid) In case of a regular contribution plan. it is usuall- high in the first -ear to pa- for the distribution cost) This charges pa-s for the issuance and for distribution commissions) This charges are running for the polic-) *dministrati,e c&ar"es: These are charges that are le,ied for the administration of the polic- and the related cost of administration of the insurance compan-. itself) The- are more related to the cost like IT . operational. etc cost of continuing the polic-) =und mana"ement c&ar"es: These are the charges for bu-ing and selling debt and equit-) These are the charges are ad7usted in &AQ it self)

6B

$ortality c&ar"es: This co,ers the cost of pro,iding life protection for the insured and ma- be paid once at the start of the polic- for a recurrent manner for e5ample this charges le,ied to pro,ide the insurance co,er under the plan ) normall- these charges are one -ear charges as per the age of the holder)

)ider c&ar"es: #ider charges are similar in nature to the mortalit- charges as the- are le,ied to pa- for the other protection benefits that the polic- holder has chosen for/ like the critical illness benefit or the accident benefit. etc) Surrender c&ar"es: Hhen the polic- holder decides to surrender the polic- or partiall- +ithdra+ some of the units for cash . a surrender charge ma- be appl-) Surrender charges are used to co,er initial e5penses that ha,e been incurred bthe compan- but not -et reco,ered from the polic-holder -et) ?id o//er c&ar"es: In %!I; specificall- certain insurers might create a difference in the price at +hich the- sell the unit and the price at +hich the- bu- the units) In,estors contribution are used to bu- units in the in,estment fund at the offer price and are sold +hen benefits are required at the bid price) The difference bet+een the offer and bid prices Is kno+n as the 9bid/offer spreadK. this is used to co,er e5penses +hen setting up the polic-)

62

#ransactional speci/ic c&ar"es: These charges are le,ied +hen the client does some specific transaction like changing funds. topping up the in,estment component or +ithdra+als )

E*SC S#E6S #1 C1A) 12N 63*N /. C!oose t!e premium you .is! to invest0 This is the premium -ou +ish to continuousl- pa- each -ear of the polic-) ?ou can pa- on a -earl- mode) The minimum premium to be paid annuall- is #s) 31111) 0) C!oose t!e amount of protection you desire0 ?ou can choose an- amount of sum assured +ith4 A minimum of < times the regular annualiGed premium) A ma5imum of 81 times the regular annualiGed premium) 1. C!oose additional plan +enefits0 A range of ,aluable protection options to secure the future for -our famil- is offered) ?ou can choose an- one of the follo+ing benefit options4 !ife option J death benefit !ife and health option J death benefit S critical illness benefit) 2. C!oose your investment funds0 In this plan the in,estment risk in -our chosen in,estment portfolio is borne b- -ou) This means that the premium -ou pa- in this plan are sub7ect to in,estment risk associated +ith the capita market

81

He ha,e A funds that gi,e -ou4 The potential for higher but more ,ariable returns o,er the term of -our polic-I or (ore stable returns +ith lo+er long term potential)

$%&' !IO%I' $%&' STAB! $%&' S C%# $%&' ' $ &SIQ $%&' BA!A&C ' $%&' O%IT? $%&' *#"HTH $%&'

("& ? BA&N *"QT (A#N T ' ;"SITS S C%#ITI S <1F 61F <F <F <F <F <F <1F A1F 01F 3<F 3<F 31F // // // A<F B1F 01F 31F //

O%IT? // // // // =1F A<F 2<F

#ISN D # T%#& #ATI&* !"H !"H !"H/ ("' #AT ("' #AT HI*H Q #? HI*H Q #? HI*H

E3IGI?I3I#C: The age and term limits for taking out a H'$C %nit !inked $reshers are as sho+n belo+4 B & $IT ";TI"&S !ife option TI( ; #I"' min ma5 31 0< A* AT &T#? min ma5 3B 6< (A@I(%( A* AT (AT%#IT? 8<

83

!ife and Health option

31

0<

3B

61

81

#*E ?ENE=I#S: ?ou +ill be eligible for ta5 benefits under section B1C and section 31(31') of the Income Ta5 Act. 32=3) %nder section B1C. -ou can sa,e up to #s) 66.221 from -our ta5 each -ear as premiums up to #s) 3. 11.111 are allo+ed as deduction from -our ta5able income) %nder section 31(31'). the benefits -ou recei,e from this polic- are completel- ta5 free) The abo,e mentioned ta5 benefits are sub7ect to changes in the ta5 la+s)

(.*)GES: CHA#* S $und (anagement Charges ;olic- Administration Charges S+itching Charges #e,i,al Charges (ortalit- Charges @;!A&ATI"& 3)0<F of the fund ,alue #s) =1 per month 08 s+itches per -ear are free and #s) 311 per additional s+itch #s) 0<1 for re,i,al As per the mortalit- rate of the particular
80

(iscellaneous Charges

age group = request free and #s)0<1 for e,eradditional request

S%## &' # CHA#* S4 &o) "$ A&&%A!IT ' ;# (I%(S S%## &' # CHA#* &"T ;AI' 8 6 0 3 1 2<F of fund ,alue 6<F of fund ,alue 3<F of fund ,alue <F of fund ,alue &il

;# (I%( A!!"CATI"& #AT S4 ;# (I%( A!!"CATI"& CHA#* =.111/3.22.222 0.11.111/8.22.222 <.11.111/2.22.222 31.11.111/32.22.222 01.11.111 and abo,e A!!"CATI"& #AT S 3stD0nd -ear 6rd -ear A<F 22F B0)<F 22F BA)<F 22F 20)<F 22F 2<F 22F

86

In,estment 1ption =or Cour $oney $a i miser: If high gro+th is -our priorit-. this is the plan for -ou) ?ou can en7o- long/term capital appreciation from a portfolio that is in,ested primarilin equit- and equit-/related securities 6rotector4 / If on the other hand. -our priorit- is stead- returns. -ou can opt for the protector ;lan) ;lan. -ou can accumulate a stead- income at a lo+ risk across a medium to long/term period from a portfolio. +hich is primarilin,ested in fi5ed income securities) ?alancer4/If -ou prefer a balance of gro+th and stead- returns. choose our balancer plan) This +ould ensure that -our portfolio is in,ested in equit-/linked securities. as +ell as in fi5ed income securities) 6reser,er: The ob7ecti,e of this plan is not ensuring capital protection bin,esting in ,er- lo+ risk in,estments like the cash and call mone- markets) Ho+e,er. the returns generated ma- also be on the lo+er side due to the in,estment pattern) At inception. in,estments up to 01F can be allocated to this fund)
88

61#EN#I*3 =AN! #C6E *SSE# $IE quit-D #elated (a5i miser securities4 (a5 311F 'ebt. (one- market D Cash4 (a5 0<F 'ebt) (one- market D Cash4 Balancer (in =1F quit- D #elated securities4 (a54 81F 'ebt Instruments. ;rotector (one- market D Cash4 (a5 311F4 'ebt Instruments4 (a5 ;reser,er <1F (one- market D Cash4 (in <1F Capital preser,ation !o+ (oderate High )IS+ -)E2*)!

8<

(1$6*)ISI1N 1= A3I6 2I#. #)*!I#I1N*3 63*N Anit 3in5ed Insurance 6roduct: %!I;s ha,e gained high acceptance due to attracti,e features the- offer) These include4 $le5ibilito $le5ibilit- to choose Sum Assured) o $le5ibilit- to choose premium amount) o "ption to change le,el of ;remium MSum Assured e,en after the plan has started) o $le5ibilit- to change asset allocation b- s+itching bet+een funds Transparenco Charges in the plan D net amount in,ested are kno+n to the customer o Con,enience of tracking ones in,estment performance on a dailbasis) !iquidito "ption to +ithdra+ mone- after fe+ -ears (comfort required in case of e5igenc-) o !o+ minimum tenure) o ;artial M S-stematic +ithdra+al allo+ed

8=

 $und "ptions o A choice of funds (ranging from equit-. debt. cash or a combination) o "ption to choose -our fund mi5 based on desired asset allocation

#raditional 6lans : These are the oldest t-pes of plans a,ailable) These plans cater to customers +ith a lo+ risk appetite) Some of the common features of traditional plans are4 Stead- In,estment o (a7or chunk of in,estible funds are in debt instruments o Stead- and almost assured returns o,er the long term $eatures o 'eath benefit is Sum Assured S guaranteed D ,ested bonus o Helps in asset creation as the- are for a long tenure o ;remium to Sum Assured ratios are fi5ed for each plan and age) o *enerall- +ithdra+als are not allo+ed before maturit-) 6oint o/ di//erence In,estment Transparenc- in costs $le5ibilit- in pa-ment Assured Bonus Assured Sum on sur,i,al "ption to increase A3I6 (arket related ((a- be stock market or debt market) ?es ?es &o &o ?es #raditional 6olicy I#'AU 'etermined in,estments &o &o ?es ?es &o

8A

in,estmentMpremium

A3I6s better traditional policies %ntil a couple of -ears ago. +hen %!I;s +ere a rare commodit-. nobod- kne+ ho+ life insurance companies charged polic-holders for e5penses) And nobodseemed to +ant to kno+ either) Then came the %!I;s +ith good intentions to make polic-holders a+are of ho+ much the- +ould pa- as e5penses) But that mo,e backfired) ;olic-holders +ere taken aback b- the high amount of fees that %!I;s charged) Hhile the charge structure on %!I;s is something that is open to debate. the issue is that %!I;s alone cannot be isolated) Traditional policies too charge high administrati,e and management e5penses) In %!I;s. the first -ear charges range from 01/A1F. one does not kno+ ho+ much traditional policies charge) This can ha,e a bearing on returns as +ell) A %!I; ma- charge -ou upfront but thereafter. all the returns on the fund are -ours +hile a traditional polic- macharge less but share a smaller portion of returns +ith -ou) So if -ou +ere substituting a traditional endo+ment +ith a %!I;. -ou +ould be better off +ith the latter since -ou +ould kno+ -our charges and -our returns) 2e recommend traditional policies: Hhere the ob7ecti,e is onl- #isk co,er and not sa,ings and cost has to be minimum)

8B

2e recommend Anit 3in5ed products 4&ere: )

The intention is to pro,ide securit- for a goal) The purpose is to make the sa,ings gro+ at a better rate seeking the best solution)

It is a market linked in,estment +here the premia paid is in,ested in funds 'ifferent options are a,ailable. like 311F quit-. Balanced. 'ebt. !iquid etc and according to the fund selected. the risks and returns ,ar-) The costs are upfront and are transparent. the in,estment made is kno+n to the in,estor (As he is the one +ho decides +here his mone- should be in,ested)) There is a greater fle5ibilit- in terms of premium pa-ments ie) A premium holida- is possible) ?ou can also in,est surplus mone- b- +a- of top ups +hich +ill increase -our in,estment in the fund and thereb- pro,ide a push to returns as +ell) There is no assured Sum on sur,i,al. the higher of the Sum Assured or $und Qalue is paid at the maturit- or incase of death)

=inancial plannin" and ta plannin" All of us +ant to sa,e for a rain- da-) He +ant our mone- or in,estment to4 (i) (ii) *i,e the best possible return and Be a,ailable to us +hen +e require it)

82

$inancial planning makes this possible) $inancial planning is an attempt to ma5imiGe returns keeping in mind the liquidit- and securit- of our in,estment) The three basic principles (guiding factors) of financial planning are4

Setting realistic financial goals Starting in,estments earl Thinking long term +hile allo+ing for short/term needs that ma- arise) "ne can in,est mone- onl- +hen one possesses it. +hich is possible b- sa,ing s-stematicall-) Selecting a good sa,ing scheme can do this) =eature o/ a Good Sa,in" 6lan: (a) Safet(b) $le5ibilit(c) Should ha,e incenti,e to sa,e continuousl- +ithout default) (d) Ta5 sa,ing (e) Should fulfill financial ob7ecti,e e,en in case of death) =eatures o/ an ideal In,estment Sc&eme: (a) Safet(b) !iquidit(c) Higher ?ield (d) Capital gro+th (e) Ta5 sa,ing Sa/ety4 refers to financial soundness of in,estment)

<1

3iFuidity: means quickness +ith +hich an assets can be con,erted into cash +hene,er required)

Cield4 is the amount of mone- that an in,estment is e5pected to earn) (apital "ro4t&: An- return. +hich is not ta5able. +ill be preferred to those on +hich ta5es ha,e to be paid) A good in,estment is that +hich earns decent returns after pro,iding for ta5es and inflation) Ho+e,er. there is no single +onder in,estment. +hich can ha,e all the abo,e features) A prudent person should look for those in,estments. +hich offer the ideal solution to his personal needs under his o+n set of circumstances) .i"& )eturns and ?est )eturnsG (i) These are not necessaril- the same) (ii) High returns ma- be offset b- risk to capital) (iii) Best returns should be determined b- the ad,antage an in,estment offers) #&e In,estors *pproac&: In,estors approach can be conser,ati,e (safet- is of utmost importance). enterprising (+illing to take some risks) or speculati,e (+illing to take high risk in order to gain high returns)) The in,estors approach is related to a host of personal factors such as4 a) Age and familb) $uture responsibilities

<3

#a ?ene/its Ander 3i/e Insurance 6olicies Oualif-ing premium amount4 / a) ;remiums paid to effect or keep in force an insurance polic- on the life of The assesseeI or The spouse of the assesseeI or An- child (minor or ma7or) of the assessee) b) ;remiums paid to effect or keep in force a contract for a deferred annuiton the life of The assesseeI or The spouse of the assesseeI or An- child (minor or ma7or) of the assessee pro,ided that such contract. does not contain a pro,ision for e5ercise b- the assured of an option to recei,e a cash pa-ment in lieu of the annuit-) #a relie/ /or sa,in"s t&rou"& li/e insurance An aggregate amount of sa,ings including those paid to+ards life insurance premium up to #s) 3 lakh not to be included in the income liable for ta5) ;remiums paid under an appro,ed pension plan up to #s) 31.111M/ per -ear of ,arious insurance companies are deductible from the total income up to a ma5imum #s) 31.111M/ under section B1 CCC)
<0

 The amounts recei,ed as claims J +hether on maturit- or death J including the bonus. if an-. are not ta5able. being capital receipt under section 31(')

2&at ma5es A3I6 a total /inancial plannin" pac5a"eH

;otential for Superior returns b- s+itching bet+een quit- D 'ebt) !iquidit- and $le5ible Insurance Co,er) &o !ong Term Commitments) 311F Ta5 $ree #eturns on Hithdra+als D (aturit-)

<6

(omparison o/ A3I6 4it& ot&er In,estment $odules

1#.E) INS#)A$EN # NS( 66= E3SS A3I6

)*#E 1= )E#A) N BF BF (arket #eturn (arket #eturn

#I$E 6E)I1 ! =-ears 3<-ears 6-ears <-ears

)IS +

$IN' INBES # $EN# 311 <11 <11 <11

$*E INBES #

#*E =)EE )E#A)N

#*E ?EN E =I# ?es ?es ?es ?es

&o &o #isk #isk (od ule &o High

$EN# &o limit &o A1111 ?es &o limit ?es &o limit ?es

=! $A#A*3 =AN!

2)<F (arket #eturn

<-ears "pen nded

31111 <11

&o limit &o &o limit Capital gain V31F for time

?es "nlin !S $und s &o less S

than 3-ear S#1(+ Qariable &o time frame Qerhigh Qariable &o limit Capital gain V31F for time less than 3 -ear

The aim of liberalisation of this sector +as to pro,ide better Ser,ices to the customers. to pro,ide inno,ati,eness and need based products at reasonable premium rates and pro,ide satisfactor- returns)

<8

The term Kinsurance densit-K reflects the insurance purchasing po+er) The premium per capita in India amounted to %S W0)81 for non/life Insurance and %S W =)31 for life insurance in 0111) According to 0111 / 13 figures. the per capita insurance premium in India +as onl- WB as compared to W8.B11 in >apan. W3.111 in South Norea. WBBA in Singapore. WB06 in Hong Nong and W388 in (ala-sia) IndiaLs share in total insurance premium +orld+ide +as onl- 1)6 percent. though it +as second most populous countr- in the +orld +hile >apanLs share +as 63 percent. % 0< percent. South Africa 0)6 percent and Canada 3)A percent) The total insurance premium in India is t+o percent of our *';. +hich is far belo+ the +orld a,erage of A)B percent) IndiaLs Share in the +orld insurance market is onl- 1)62 percent as against 68)3A percent of %S. 03)10 percent of and B)8 percent of %N ) S#)ENG#.S high gro+th rate of insurance sectorI go,ernmentLs dependence on this sector for long range lo+ cost funds for infrastructure de,elopmentI huge contribution to+ards foreign e5change reser,es b- #e insurance I high le,el of emplo-ment generationI Qer- big middle class (consuming class)) 2E*+NESSES lo+ per capita insurance premiumI lo+ penetration MreachI societ-Ls perception for sa,ing ends at gold or houseI !o+ faith of people in foreign companies for depositing hard earned sa,ingsI huge paper +orkM time lag in settling claimsI #ampant corruption in nationalised insurersI !o+ literac- rate)

1661)#ANI#IES huge potential to be tapped I

<<

 +ith coming of foreign insurance companies. their inno,ati,e insurance products and marketing e5pertise +ill also flo+ I use of IT as ser,ice pro,ider ) #.)E*#S Insurance (life) is a long term business and it is not feasible to predict the interest rates o,er long tenuresI insurance is susceptible to ,agaries of nature i)e) floods. earthquakes. etc +hich can make insurance companies bankrupt I Hrong commitments M communication b- insurance agents (on behalf of compan-) to the gullible consumers)

=indin" and data analysis

<=

S*$63E SIIE

# S;"&' &T CAT"* #? Ser,ice (an Business (an Shopkeeper House+ife "ther #1#*3

&") "$ ; ;"! 0B 66 3A B 38 311

O3) 'o -ou ha,e an- insurance polic-U

"; &I"& ? S &"

&" "$ ; ";! BA 36

<A

NO OF PEOPLE

13%

YES NO

8 %

O0) Hhich compan-s polic- -ou are ha,ingU

(1$6*NIES
3I( I(I(I .!=( 1#.E) N1N 613I(C .13!E)

6E163E
<1 J > 11 17

<B

PEOPLE

13% 11%

LIC ICICI HDFC OTHER NON POLICY HOLDER

% 8%

!1%

O6)Hh- did -ou purchase insurance planU

(*#EG1)IES =1) 6)1#E(#I1N =1) S*BING =1) INBES#$EN# =1) #*E S*BING

N1' 1= 6E613E 1: 21 7: 29

<2

NO" OF PEPOLE

29%

15% FOR PROTECTION FOR SA#ING 21% 35% FOR IN#ESTMENT FOR TAX SA#ING

O8) Are -ou satisfied +ith -our In,estmentU

(*#EG1)IES S*#IS=IE! ANS*#IS=IE! N1 613I(C .13!E)

N1' 1= 6E163E :< 71 17

=1

NO" OF PEOPLE

13% SATISFIED UNSATISFIED 31% 5!% NO POLICY HOLDER

O<) Ha,e -ou e,er in,ested in %!I;U

=3

(*#EG1)IES CES N1 N1 613I(C .13!E)

N1' 1= 6E613E <= 63 36

NO$ OF PEOPLE

13%

YES NO 31% 5!% NO POLICY HOLDER

=0

O=) If -es. then in +hich planU

(*#EG1)IES S*BING 63*N 6)1#E(#I1N 63*N 6ENSI1N 63*N (.I3!S 63*N N1 613I(C .13!E)

N1' 1= 6E613E 90 27 > 1> 17

NO" OF PEOPLE

13% 1 % %&% SA#ING PLAN PROTECTION PLAN PENSION PLAN CHILD'S PLAN % 23% NO POLICY HOLDER

=6

OA) Ho+ much return -ou are e5pecting from -our %!I;U

(*#EG1)I1ES 1:-2:K 2:-7:K 7:-9:K $1)E #.*N 9:K N1N 613I(C .13!E)

N1 1= 6E613E 20 21 19 2> 17

=8

NO OF PEPOLE

13%

2&%

15(25% 25(35% 35(%5%

2 % 19%

21%

MORE THAN %5% NON POLICY HOLDER

OB) 'o -ou think %!I; is a risk- in,estmentU

(*#EG1)IES BE)C )IS+C $1!E)*#E S*=E BE)C S*=E N1N 613I(C .13!E)

N1'1= 6E613E 17 1J 7< 20 17

=<

NO" OF PEOPLE

13% 2&%

13% 18%

#ERY RISKY MODERATE SAFE #ERY SAFE NO POLICY HOLDER

3!%

O2) 'o -ou kno+ about the of ?"%&* STA# II %!I;U

(*#EG1)IES CES N1

N1'1= 6E613E :9 91

==

NO"OF PEPOLE

%1% YES NO 59%

O31) 'o -ou think ?"%&* STA# II of hdfc sl is better other plansU

(*#EG1)IES CES N1 !1N# +N12

N1'1= 6E613E 77 2< 91

=A

NO"OF PEPOLE

%1%

33% YES NO DON)T KNOW 2!%

O33) Hhat are the reasons for in,estment in %!I;U

(*#EG1)IES 3I=E 6)1#E(#I1N

N1'1= 6E613E 71

=B

INBES#$EN# ; S*BING =3EEI?I3I#C #*E 63*NNING N1 613I(C .13!E)

29 11 1< 17

NO" OF PEOPLE

13% 1!%

31%

LIFE PROTECTION IN#ESTMENT * SA#ING FLEXIBILITY TAX PLANNING

11%

29%

NO POLICY HOLDER

O30) Hhat steps do -ou suggested to the companies to make their %!I; plans more popularU

(*#EG1)IES

N1' 1=
=2

6E613E GIBE $1)E *!BE)#ISE$EN#S *))*NGE $1)E 21)+S.16S *))*NGE $1)E SE$IN*)S )E!A(E (.*)GES ()E*#E *2*)ENESS #.)1AG. *!BIS1)S 7< 17 19 21 1<

NO" OF PEOPLE GI#E MORE AD#ERTISEMENTS 1!% 3!% ARRANGE MORE WORKSHOPS ARRANGE MORE SEMINARS REDUCE CHARGES 1%% 13% CREATE AWARENESS THROUGH AD#ISORS

21%

=IN!INGS

A1

&o+ people mainl- prefer %!I; for sa,ing. then bank and then ;ost/ "ffice and after that prefer ;);)$) and other) The main reason behind the insurance plan or %!I; preference is s+itching facilit- or option to choose fund)

(ainl- people prefer lo+ gro+th safe return as compare to high gro+th some risk- return) ;eople mainl- purchase life insurance polic- for in,estment and then for ta5/sa,ing the- gi,e 0nd preference to protection) I also find that people mainl- prefer !)I)C) as compare to pri,ate insurance compan-) In m- sur,e-. I also find that onl- <=F people are satisfied +ith current polic-) It +as also find out that onl- <2F people kno+ about -oung star ii of H'$C Standard !ife) About <=F people finds %!I; is a safe mode of in,estments)

*NNEEA)E
A3

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