a comparative study based on customersgÇÖ preference analysis towards insurance products

8/7/2019 A Comparative Study Based on CustomersG Preference Analysis towards Insurance Products

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A

TRAINING REPORTOn

A Comparative Study Based on Customers Preference Analysis

towards Insurance Products

GURU NANAK INSTITUTE OF MANAGEMENTAND TECHNOL OGY

LUDHIANA.

In Partial fulfillment for theaward of Degree of

Master of Business Administration

Submitted to:

Punjab Technical University

Submitted by:ANKIT GUPTAUniversity Roll No. 618221266

Session 2005-2007GURU NANAK INSTITUTE OF MAMAGEMENT AND

TECHNOLOGY

LUDHIANA.


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ACKNOWLEDGEMENT

If words are considered as symbol of approval and take

appreciation then let the words play the heralding role of expressing my

sincerest gratitude and thanks

I am indebted to Mr. Tejveer Sandhu (Branch Manager),Vijay Thakur

HDFC Standard Life Insurance Co., Mandi for providing me an opportunityto go through summer training.

I would like to express my sincere gratitude towards Mr. Parveen Kalsi

(Project Guide) for guiding me and also for letting me work on this project.

I would like to extend my warm gratitude to the other HDFC members for

their help in completing the project.

Ankit Gupta


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PREFACE

Risks and uncertainties are part of lifes great adventure- accidents, illness,

theft, natural disaster they are all built into working of the universe waiting

to happen. So far that there is a solution - insurance.

To overcome these risks and uncertainties this project describes about

various policies and schemes of different insurance companies. How these

companies provide different benefits to policyholders. Insurance is

cooperative venture where risks and uncertainties are shared by many. Nowa days a lot is being done to create awareness among the insuring public

about the need and importance of the insurance in the field of a human

being. In this direction IRDA has planned to create awareness through

electronic and print media.

A study of life insurance describes the meaning, various policies,

comparison and their analysis market prospective changing custom

scenario.


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CONTENTS

1) Introductions :-

Definition

Need for Life Insurance

Role of Government

Role of Life Insurance

Evaluation of Insurance Industry in India

Future Scenario

2) Opening of Insurance Sector in India

Objectives of Liberalization of Insurance

3) Changing Expectations of Customers

4) Major Players in Life Insurance

HDFC STANDARD LIFE

Life Insurance of India (LIC)

ICICI Prudential

5) Comparison of the products of various companies

6) Research Methodology

Research Methodology

Objectives

Limitations


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7) Data Analysis & Interpretations

8) Suggestions & Conclusion

Findings

Suggestions

9) Appendices

Question

Bibliography


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Insurance is basically risk management device. The losses to assets

resulting from natural calamities like fire, flood, earthquake, accident etc.

are met out of the common pool contributed by large number of persons who

are exposed to similar risks. This contribution of many is used to pay the

looses suffered by unfortunate few. However the basic principle is that loss

should occur as a result of natural calamities or unexpected events, which

are beyond the human control. Secondly insured person should not make any

gains out of insurance.

It is natural to think of insurance of physical assets such as motor car

insurance or fire insurance but often be forget that creator all these assets is

the human being whose effort have gone along way in building upto assets.

In that scene human life is a unique income generating assets. Unlike

physical assets, which decrease with the passage of time, the individual

become more experienced and mature as he advances in age. This raises his

earning capacity and the purpose of life insurance is to protect the income to

individual and provide financial security to his family, which is dependent

on his income in the event of his pre-mature death. The individual also

himself also needs financial security for the old age or on his becoming

permanently disabled when his income will stop. Insurance also has an

element of saving in certain cases.

Insurance is rupees 400 billion business in India and yet its spread in

the country is relatively thin. Insurance as a concept has not being able to

make headway in India. Presently LIC enjoys a monopoly in Life Insurance

business while GIC enjoys it in general insurance business. There have been


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very little option before the customer to decide the insurer. A successful

passage of the IRA bill have clear the way of private sector operators in

collaboration with

their overseas partners. It is likely to bring in a more professional and

focused approach. More over the foreign players would bring sophisticated

actuarial techniques with them, which would facilitate the insurer

effectively price the product. It is very important that the trained marketing

professionals who are able to communicate specific features of the policy

should sell the policy. In the next millennium all

These activities would play a crucial role in the overall development and

maturity of the insurance industry.

DEFINITION GENERAL DEFINITION :-

In the words of John Magee, Insurance is a plan by which

large numbers of people associate themselves and transfers to the shoulders

of all risks that attach to individuals

FUNDAMENTAL DEFINITION: -

In the words of D S Hansel, Insurance may be defined as a

social device providing financial compensation for the effects of misfortune,

the payments being made from the accumulated contributions of

participating in the scheme.


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CONTRACTUAL DEFINITION: -

In the words of justice Tidal Insurance is a contract in which a

sum of money is paid to the assured as consideration of insurers incurring

the risk of paying a large sum upon a given contingency.

CHARACTERISTICS OF INSURANCE

Sharing of risk Co-operative device

Evaluation of risk

Payment on happening of special event

The amount of payment depends on the nature of losses incurred

NEED OF THE LIFE INSURANCE: -

The original, basic intention of life insurance is to provide for

ones family and perhaps others in the event of death. Originally, polices

were to provide for short periods of time, covering temporary risk situations,

such as sea voyages. As life insurance became more established. It was

realized what a useful tool it was in a number of situations, including:


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1. Temporary needs/ threats:

The original purpose of Life Insurance remains an important element,

namely providing for replacement of income on death etc.

2. Regular Saving:

Providing ones family and oneself, as a medium to long-term exercise

(through a series of regular payment of premiums). This has become more

relevant in recent times as people seek financial independence from their

family.

3. Investment:

Put simply, the building up of saving while safeguarding it from ravages

of inflation. Unlike regular saving products are traditionally lump sum

investments, where the individual makes are one time payment.

4. Retirement:

Provision for ones on later years has become increasingly necessary,

especially in changing culture and social environment. One can buy a

suitable insurance policy, which will provide periodical payments in ones

old age.


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BENEFITS:

1. It is superior to traditional saving machine

As well as providing a secure vehicle to build up saving etc. it provides

piece of mind to the policyholder. In the event ultimately death, of say the

main earner in the family, the policy will pay out guaranteed sum assured,

which is likely to be significantly more then the total premiums paid. With

more traditional saving vehicles, such as fixed deposits, the only return

would be the amount invested plus any interested accrued.

2. It encourages saving and forces thrift:

Once an insurance contract has been entered into, the insured has an

obligation to continue paying premiums, until the end of the term of policy,

otherwise the policy will lapse. In other words, it becomes compulsory for

the insure to save regularly and spend wisely. In contrast savings held in a

deposit account can be accessed or stop easily.

3. It provides easy settlement and protection against creditors

Once a person appointed for receiving the benefits or a transfer of rights is

made (assignment), a claim under the life insurance contract can be settled

easily. In addition, creditors have no right to any mommies by the insurer,

where the policy is written under trust. Under the married womans act the

money available from the policy forms a kind of trust which creditors can

not claim on.

4. It can be encased and facilities borrowing:


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Sum contracts may allow the policy can be surrendered for a cash amount, if

policy holder is not in a position to pay the premium. A loan, against certain

policy, can be taken for a temporary period to tide over the difficulty.

Presence of life insurance policy facilitates credit for personal or commercial

loans as it can be offered as collateral security.

5. Tax relief :

The policy holder obtains income tax rebates by paying the insurance

premium. The specified form of saving which enjoys a tax rebate u/s 88 of

the income tax act. Include Life Insurance premiums and contribution to a

recognized PF etc.

GOVT. ROLE :

============

Govt. keen to reduce the dependency on the state via private pension

provisions. They have a choice between using compulsion and incentives.

Most of the govt. chooses the later method. Tax relief is guaranteed in the

pension plants and is extremely generous, reflecting the value that the govt.

and the society and large place on the provision of retirement benefits. Tax

treatments of the benefit varies by country and by benefits.

In India, the proceeds of gratuity and provident fund are tax free in the

hand of the members. In UK, a certain amount of the proceeds can be taken

as tax lump sum and reminder as taxable income. Benefits due on withdrawl

from schemes are generally taxed unless they are transferred to another

scheme or approved pension plan.


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ROLE OF LIFE INSURANCE

========================

Role 1 : Life Insurance as investment

Insurance is an attaractive option for investment. While most people

recognize thetax hedging and tax saving potential of life insurance, many are

not aware of its advantages as an investment option as well as. Insurance

products

yield more compared to regular investment option as this is besides the

added incentives (read bonuses) offered by insurers.

You can not compare an insurance product with other investment

schemes for simple reason that it offers financial protection from risks,

something that is the missing in non- insurance products.

Infact, the premium you pay for a investment against risk. Thus,

before comparing with other scheme, you must accept that a part of total

amount invested in life insurance goes towards providing for the risk cover,

while the rest is used for savings.

In life insurance, unlike non-products, you get maturity benefits on

survival at the end of the term. In other words, if you take a life insurance

policy for 20 years and survive the term the amount invester as premium in

the policy will come back to you with added returns. In the unfortunate

event of death within the tenure of the policy, the family of the deceased will

receive the sum assured.

Now, let us compare insurance as an investment options. If you invest

Rs. 10000/- in PPF, year money grows to Rs. 10950 at 9.5% interest over a


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year. But in this case, the access to your funds will be limited. One can

withdraw 50% of the initial deposit only after four years.

The sane amount of Rs. 10000/- can give you an insurance cover of

upto approximately Rs. 5 to 12 lacs. ( depending upon the plan, age and

medical condition of life insure etc. ) and this amount can be

immediately available to the nominee of the policy holder on death. Thus

insurance is a unique investment avenue that dekivers sound returns in

addition to protection.

Role 2 : Life Insurance as Risk Cover

First and foremost, insurance is about risk cover and protection

financial protection, to be more presize-to help out last once unpredictable

losses. Designed

to safe guard against losses suffered on account of an unforeseen events.

Insurance provide you with that uniqueness sense of security that no other

form of investment provides. By buying life insurance, you buy peace of

mind and are prepared to face any financial demand that would hit the

family incase of an untimely demise.

To provide such protection, insurance firms collect contributions for

many people who face the same risk. A loss claim is paid out of the total

premium collected by the insurance companies, who act as trustees to the

monies.

Insurance also provides a safeguard in the case of accident or a drop

in income after retirement. An accident or disability can be devastating and


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an insurance policy can lend timely support to the family in such time. It

also comes as a great help when you retire, in case untoward incident

happens during the term in the policy.

With the entry of private sector player in insurance, you have a wide

range of products and services to choose from. Further, many of these can be

further customized to fit individual/group specific needs considering the

amount you have to pay now, its worth buying some extra sleep.

ROLE 3 : Life Insurance as Tax Planning

Insurance serves as an excellent tax saving mechanism too. The Govt.

of India have offered tax incentives to life insurance products in order to

facilitate the flow of funds into productive assets. U/S 88 of Income Tax Act

1961, an individual is entitled to rebate 20% on the annual premium payable

on his/her life and life of his/her children or adult children. The rebate is

reductible from tax payable by a individual or Hindu undivided family. This

rebate is can be availed

upto a maximum of Rs 12000/- on payment of yearly premium of Rs

60000/- a year, you can buy anything upward of Rs 100000/- in sum

assured. This means that you get Rs 12000/- tax benefit. This rebate is

deductible from the tax payable by an individual or a Hindu undivided

family.


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THE EVALUATION OF INSURANCE INDUSTRY IN INDIA :

Life Insurance in its modern form is a western concept. The Indian

insurance industry is as old as it is in other part of the world. Although life

insurance business has been taking shape for the last 300 years, it came to

India with the arrival of Europeans. First Life Insurance Company was

established in 1818 as Oriental Insurance Company, mainly to provide for

widows of Europeans. The companies that follow mainly catered

Europeans and charged extra premium on Indian Lives. The first insurance

company insuring Indian Lives at standard rates was BOMBAY MUTUAL

LIFE INSURANCE COMPANY which was formed in 1870. this was also

the year when 1st Insurance act was passed by the British Parliament. The

years subsequent to the Swadeshi movement saw the emergence of several

insurance companies. At the end of the year 1955 there were 245 insurance

companies. All the insurance companies were nationalized in 1956 and

brought under one umbrella- LIFE INSURANCE CORPORATION OF

INDIA (LIC) which enjoyed a monopoly of the Life Insurance business

until near the end of 2000. by enacting the IRDA act 1999, the Govt of India

effectively ended LICs monopoly and opened the doors for p

Insurance companies.


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Collaboration of Indian Companies with Foreign Companies

Indian Company Foreign Partner

Kotak Mahindra Chubb

Tata Group AIG

Sundram Finance Winterthur

Spic Metlife

ILFC Cigna

Alpic Finance Allianz

20th Century Canada Life

Vysa Bank ING

Cholamandlam Axa

SBI Alliance Capital

HDFC Standard Life

ICICI Prudential

Hindustan Times Commercial Union

IDBI Principal

Max India New York Life


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FUTURE SCENARIO :-

Before looking in future prospectus of the insurance industry,

we must take a look into its past history. The independent India started with

private sector Insurance companies. These companies were nationalized by

the union govt in 1956 to form a monopoly known as Life Insurance

Corporation of India has being under public sector for over four decades till

the govt. opened the insurance sector for private companies in 2000.

When the insurance Industry was nationalized, it was consider a land

mark and a milestone on the way to the socialistic pattern of society that

India had chosen after independence. Nationalization has lent the industry

solidity and growth which is unparalleled. Forever, along with t

achievements there also grew a feelings of insensitivity to the needs of the

market, traditions in adoption of modern practices to upgrades technical

skills coupled with a scene of lethargy which probably led to a feeling

amongst that the insurance industry was not fully responsive to customers

needs.

The life insurance corporation of India has not succeeded in extending

the insurance cover to all the needy people of the country due to various

reasons. LIC could not insure very fast growth of insurance in India even in

a long period

extending over four decades. Hence the penetration of insurance is very low

in India. The following indicates as explained and support this contention :


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1. While per capita insurance premium in developed country is high,

it is quite low in India. For instance, per capital insurance premium

in India in 1999 was only $8 while it was $4800 for Japan $1000

for Republic of Korea , $887 for Singapore, $823 for Hong-Kong

and $144 for Malaysia.

2. Similarly the penetration of insurance is also assessed by the ratio

of Insurance premium to gross domestic products in a country.

While insurance premium as a percentage of GDP was 14 % in

Japan, 13% for South-Africa, 12% for Korea, 9% for UK and

France. It was only around 2% in India in 1999. hence the

penetration of insurance is low here.

3. The penetration of Insurance is also assessed by a ratio of

Insurance premium to gross domestic savings (GDS). Wh

insurance premium as a percentage of GDS was 52% for UK, 35 %

for other European and American countries, it was only 9% in

India in 1999. Hence even this index indicates low level of

penetration of insurance in India.

4. The share of India in the world market in terms of gross insurance

premium is again very small. For instance while Japan has 31%,

European union 25%, South Africa 2.3%, Canada 1.7% share of

global insurance premium ot is only 0.3% for India.


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OPENING OF INSURANCE SECTOR IN INDIA

The union government of India decided to open the insurance sector

to make it more dynamic and customer friendly.

OBJECTIVE OF LIBERALIZATION OF INSURANCE :-

The Main objective for the opening up the Insurance sector to the

private insures as under :-

To provide better coverage to the India citizens.

To augment the flow of long term financial resources to finance the

growth of infrastructure.

Indian Insurance industry has ten new entrants in year 2000-2001 in Life

Insurance sector.

S.No Reg

No

Date of Reg Name of Company

1 101 23.10.2000 HDFC Standard Life Insurance CO. Ltd

2 104 15.11.2000 Max New York Life Insurance CO. Ltd

3 105 24.11.2000 ICICI Prudential Life Insurance CO. Ltd


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4 107 10.01.2001 OM Kotak Mahindra Life Insurance CO Ltd

5 109 31.01.2001 Birla Sun Life Insurance CO. Ltd

6 110 12.02.2001 Tata AIG Life Insurance CO. Ltd

7 111 20.03.2001 SBI Life Insurance CO. Ltd

8 114 02.08.2001 ING Vyasya Life Insurance CO. Ltd

9 116 03.08.2001 Allianz Bajaj Life Insurance CO. Ltd

10 117 06.08.2001 Metlife Insia Life Insurance CO. Ltd

Insurance Industry in the year 2000 has one new entrant in Life Insurance

Business name :-

S.No Reg

No

Date of Reg Name of Company

1 121 03.01.2002 AMPSANMAR Assurance Co. ltd


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CHANGING CUSTOMER EXPECTATIONS IN INSURANCE

SECTOR PRE TO POST LIBERALISATION

RESEARCH OBJECTIVE AND METHODOLOGY

OBJECTIVE :-

To provide insight into customers experiences prior to recent

liberalization, mapping changes in expectations after liberalization and

perceived performance of insurance players vis a vis expectations.

RESEARCH APPROACH :-

In depth qualitative study to capture indicative trends which can be

strictly validated, if required :

Geographical coverage : Delhi, Mumbai, Kolkata, Hyderabad and Banglore

RESEARCH DESIGN:-

RESPONDENT SEGMENT

Life Policy Holders :-

Old Customers : Taken Insurance prior to liberalization only.


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Evolved Customer : Taken insurance both in per and

liberalization.

New customers : Taken Insurance in post liberalization only.

Non Policy holders (Life)

RESEARCH DESIGN

Sample Plan:

Respondent Category SEC A SEC B SEC C TOTAL

Life Policy 48 41 37 126

Non Life 43 21 16 80

Non Policy (Life) 14 15 16 45

Total 105 77 69 251

Respondent Old Customer Evolved New

Customer

Total

Life Policy 47 40 39 126


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PRE PURCHASE PROCESS : LIFE

Pre Liberalization Post

Liberalization

Motivating Factor (s) for considering Insurance

Security 43% Security 50%

Saving 14% Saving 34%

Tax Rebate 43% Tax Rebate 16%

Childrens education, marriages, retirement plan

Sources of information on Insurance and Product Awareness

Friend, colleagues, relatives and agent Additionally from direct

Low awareness of several Insurance mailers, customer meets

products due to poor communication Internet and media.

Rising level of aeareness of new product of both LIC and privat

Company

CHOICE OF FIRST POLICY

Money Back 60% Money Back 42%

Endowment 40% Endowment 48%

Whole Life 0% Whole Life 10%

Approach of the Agent and Consumers Experience


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Approach of the agentinformal Approach mor

professional

And through referral somethi

aggregative private co.

Proactive in contacting

prospectus directly often has to start from selling concept of insurance rather

than product

conducts financial health check

up and then offers suitable products/ solution.

Better communication and presenter

Handless Larger number of queries.

SIDERATION OF PRIVATE PLAYERS

Overall SEC A SEC B

73% 93% 83%

35 % 65% 30%

AWARENESS OF NEW PRODUCTS-LIFE


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Only some customers have mentioned new products.

Products with multiply riders medical, accident, waiver of premium

rider

Through most SEC A and SEC B customers have generally heard of

liberalization but unable to provide any details.

Flexi premium plans-products with singly premium and shot out time

premium option


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PURCHASE PROCESS : LIFE

Pre Liberalization

Role of Agent and Customers Experience

Medical examination : in

several cases details filled by

medical agent medical

examination very perfunctory

some time no formula

examination.

Purchase experience with agent

reasonably satisfactory, but often

agent not in touch later.

Medical examination : Both LIC and

private company

Customers examination arranged by

agent.

Experience regular contact

Post purchase

Product Offering

Limited Products choices and less

flexible products

Choice often determined by agent

push

Product with multiple riders-medical,

accident, waiver of premium rider

Pension/retirement benefit plans

flexible premium, saving and

security plans.Discount offering practices

No. of customers getting discount :

50%

Rate of discount: 25%-50% of first

year premium

Customers getting discount 33%

(Delhi)

Rate of discount : More less plans

Policy Delivery

Mode

Registered posts for LIC hand

Mode

Registered for LIC


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delivered by agent 23% case

Time taken

Upto week 0%

One month 65%

> 1 month 35%

Courier for private companies.

In both cases, policy comes in

attractive. Protective plastic jacket

Time taken LIC Private

Upto week 5% 8

One month 77% 15%

>1 month 18%

CLAIMS SETTLEMENT EXPERIENCE-LIFE (LIC ONLY SO FAR)

FINAL MATURITY CLAIM :-

Involvement of agent very low (35%)

Payment mostly within 15 days, but 1 to 3 month in some situations

such as change of survivors address etc.

Most customers are satisfied with the overall process.

DEATH CLAIM :-


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Involvement of agent low though considered critical by nominee

Payment takes 3 to 6 months in normal cases, in disputed cases 9 to

12 months

Process very cumbersome and people faced much difficulty.

CHANGING CUSTOMER EXPECTATIONS LIFE

TIME EXPECTATIONS :

First premium receipt ( FPR ) delivery to customers in two days.

Policy document should be delivered within 7 days from FPR.

Premium notice should arrive 30 days before due date.

Final maturity payment should reach within 10 days of maturity date.

Death claim should be settled in 39 days.

EXPECTATIONS FROM AGENT :-

==========================

Should give information on all products and not push

commission products only.

Should maintain regular contact wiyh client to give information on

new products.

Premium payment reminder should come from agent also. Should collect payment, deposit and handover receipt.

Should be actively involved in Death claims settlement and Lapsed

Policy Revival.


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CHANGING CUSTOMER EXPECTATIONS LIFE

EXPECTATIONS FROM THE COMPANY:

Premium notice should be settled regularly.

Premium payment reminder should be sent through SMS and E-Mail.

Cheque payment at bank, imternt and special collection centres ( Om

Kotak in Mumbai )

Payment through credit cards.

Facility of purchasing policy through more channels.

Flexible/wider range of products.

Focus on cutomer education.

Fine/prints devi in detail, correct disclosures.

Transparent and fair dealings.

Information on new products/services through call centres, internet,

mailers, new agent customer meets. Set up toll free help line.

Where customer is cancelled is deposited should be entitled to be the

commission thereof.

ROLE OF IRDA :


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Educate public on regulatory safeguards, investments guidelines and

plough back of profits ( several people have expressed concern about

security of their money, credibility of private insurance company

investment of funds in foreign markets.

Inform public on social and rural obligation of private players

( several people believd that only LIC was responsible for insuring the

poor.

POST PURCHASE PROCESS : LIFE

Pre Liberalization Post Liberalization

Premium Notice Intimation from company/reminder from agent

* Cash 43% * Cash 41%

* Cheque 57% * Cheque 49%

* Credit Card 10%

* No case of payment through internet

was observed, due to low awareness

and security apprehensions.

* Includes deposits at private

company

collection centres.

WHO DEPOSITS PREMIUM ?


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* Self 44% * Self 37%

* Agent 49% * Agent 49%

* Salary saving Scheme 7% * Salary saving Scheme 14%

includes relatives & friends includes relatives & friends

CORRESPONDENCE ( Other than premium notice )FROM

COMPANY/AGENT

Generally no correspondence from

either company or agent except for

late premium payment reminderfrom company

Agent maintained informal contact

with close customers

Mailers from both private

companies and LIC on product and

services, greetings cards onbirthdays, anniversary and new

product.

Phone calls from private company

call centres.

Agent in regular contact for offer

new product.

DELAY IN PREMIUM PAYMENT

Incidence of delay high 30%

( due to irregular receipt of premium

notice from company/reminder from

agent )

Incidence of delay high 30%

( due to irregular receipt of premium

notice from company/reminder from

agent )


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CHANGING TRENDS IN SAVINGS PATTERN

Pre Liberalization Post Liberalization

Saving Instrument % of Respondents Saving Instrument % of RespondentsInsurance 23%

Bank Deposit 28%

PPF 19%

NSC 12%

Share 7%

Post Office 7%

Bonds 0

Gold 4%

Insurance

Bank Deposit

PPF

NSC

Share

Post Office

Bonds

Gold

Total 100 To

When the respondents were asked where they would invest their extra

income, if any, the top respondents were recorded as above.


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COMPANY PROFILE


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HOUSING DEVELOPMENT FINANCE CORPORATION LTD.

( HDFC ) :

======================================================

Founded in 1977, HDFC is today the market leader in housing

finance in India and has extended financial assistance to more than 15 lacs

homes. HDFC has more than 110 offices in India presently. It has also one

international office in Dubai and 3 more services associate in Kuwait, Qatar

and sultanate of OMAN. HDFCs assets base amount to over 15,000 crore.

Its financial strength is reflected in highest safety rating of FAAA and

MAAA awarded by CRISIL and ICRA two of Indias leading credit

rating agency respectively, for the last 6 year consecutively. It has a

depositor base of over 11 lacs customer and a deposit agents force of over

46,000 of the total deposit, 73% are sourced from individual and trust

depositors, which demonstrates the tremendous confidence that ret

investors have in the company.

HDFC- promoted companies have emerged to meet t

investors and customers needs. HDFC bank for commercial banking, HDFC

Mutual Fund for mutual fund products, to be followed very shortly by

HDFC Standard Life Insurance Company for the life indurance and pension

products.

Being an institution that is strongly committed to the highest

standards of quality and excellence, HDFC has won several accolades in the

past few years. One such award is the Ramakrishnan Bajaj National


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Quality Award for the year 1999. this award was instituted to award

recognition to Indian

companies for business excellence and quality achievement. HDFC is the

only company so far to receive this award in the service category.

STANDARD LIFE ASSURANCE COMPANY ( SLAC ) :

Founded in 1952, Standard Life has been at the for front of the

UK Insurance industry for 176 years by combining sound fin

judgement with integrity and reliability. The kingdom, Ireland, Spain ,

Germany and some more with representative office in Hong-Kong and

China.

One of the most recent success was the launch of standard Life

Bank on 1st January 1998. in less than 20 months, the bank collected Rs.

28,000 crore in deposit. The introduction of its innovative mortgage product

in Jan. 1999, had an immediate impact on the UK market, accounting for

11% of all new lending within the first operational tear. The current loans

outstanding amount to Rs. 43,300 crore.

Standard Life has total assets of Rs. 55,000 crore and new

premium income last year 33,000 crore. Its UK investment portfolio account

for approximately 2% of all shares listed in the London Stock Exchange. Its

one of the new Insurance companies in the world to receive AAA rating

from two of the leading international credit rating agencies. Moodys and

Standards And Poors. the latter described Standard Lifes ability to meet


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its claim obligations as overwhelming under a variety of eco

conditions.

Not surprisingly, Standard Life is rated as one of the few

strongest companies in the world, in financial terms. The quality and value

standard Life brings to this venture are immense. The companys reputation

in UK market remains unrivalled. Besides being voted Company of the

ears for overall service, for the third consecutive year. Standard Life was

recently voted Company f the decade by independent brokers.

THE PARTNERSHIPS :-

HDFC and Standard Life first commenced

discussions about possible joint venture, to enter the life Insurance market,

in Jan. 1995. it was clear from the outset that both companies shared similar

values and beliefs and a strong relationship quickly formed. In Oct. 1995 the

companies signed a 3 year joint venture agreement.

Around this time standard Life purchased a 5% stake in HDFC,

further strengthening the relationship.

A small project team was set up in UK and India and set about

preparatory work. Among other things, the team conducted market research,

looked at possible information technology, documented high level business

process maps and set about preparing the first project plan.


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The next three years were filled uncertainity, due to change in

Govt. and both ongoing delays in getting the insurance bill passed in

parliament. Despite this both companies remained firmly committed to

venture.

In Oct. 1998, the joint venture agreement was renewed and additional

resources made available. Around this time Standard Life purchased 2% of

Infrastructure Development Finance Company Ltd. ( IDFC ) Standard Life

also started to use the services of the HDFC Treasury department to advise

them upon their investments in India.

One of many success stories over the last few tears has been the

actuarial student program. The program was designed to identify high

caliber individuals who would be sponsored by Standard Life to study for

their actuarial qualification in the UK.

The new company has 1 Indian actuary and 5 actuarial students

in the team, with a further 2 students undergoing training in the UK. Both

parents companies strongly believe the program will benefit the new

company in the years to come and are firmly committed to it. Towards the

end of 1999, the opening of the market looked very promising and both

companies agreed the time was right to move the operation to the next level.

Therefore, in Jan. 2000 and expect team from the UK joined a hand picked

team from HDFC to form the core project team, based in Mumbai.


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Around this time Standard Life purchased a further 5% stake in

HDFC and a 5% stake in HDFC bank.

In further development standard Life to participate in the Assets

Management Company promoted by HDFC to enter the mutual fund market.

The Mutual Fund market was launched on 20th July 2000 and

one on the 10th Nov. 2000 assets under the management reached Rs. 1,063

crores.

The company was incorporated on 14th Aug 2000 under the

name of HDFC Standard Life Insurance Company Limited.

The ambition of the company from as afr back as Oct. 1995 was

to be first private company to reenter the Life Insurance market in India. On

23rd of Oct. 2000 , this ambition was realized when HDFC standard Life

Insurance Company Limited were only Life company to be grated a

certificate of registration.

HDFC are main shareholders in HDFC standard Life Insurance

Company Limited with 81.4% while standard Life own 18.6 given Standard

Lifes existing investment in the HDFC Group, this is max. investment

allowed under current regulations.


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MISSION AND VALUES OF HDFC STANDARD LIFE :-

MISSION :-

HDFC Standard Life have clearly on several occasions that they

ain to be the top new Life Insurance company un the market.

This does not just mean being the largest or the

productive company in the market, rather it is a combination of several

things. :

Proffessionalism

Value of money

Customer services

Innovative product

Use of technology

Market share

As mentioned earlier the aim is to be the yardstick against which all other

life insurance companies are measured.

VALUES :-

The core value of the company are Security , trust and

Innovation .

SECURITY :-

HDFC Standard Life will invest their policy holders money

prudently in order to achieve the aim of long term stable growth.


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The aim is to immulate the financial security rating of the

parent companies.

TRUST :-

HDFC Standard Lifes are committed to development products

for the specific needs of the Indian customer. The company will also use the

latest technology to ensure they develop the highest quality service to both

their customers and their consultants.

PRODUCTS

1. TERM ASSURANCE PLAN

2. ENDOWMENT ASSURANCE PLAN

3. MONEY BACK PLAN

4. CHILDRENS PLAN

5. PERSONAL PENSION PLAN

6. SINGLE PREMIUM WHOLE OF LIFE INSURANCE PLAN

7. UNIT LINKED PENSION PLAN

8. UNIT LINKED ENDOWMENT PLAN

Protection against uncertainties of life


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TERM ASSURANCE PLAN :-

=====================

Under this plan, a sum assure is payable in case of death of the

life assure during the tem of the contract. One can choose the lumpsum that

would replace the income lost to ones family in the unfortunate event of

ones death. Since this non participating ( without profits ) plan is a pure risk

cover plan, no benefits are payable on the survival to the end of the term of

the policy.

Minimum age 18 years.

Maximum age 60 years.

TERMS TO AVAIL PLAN :

20,25 and 30 years that plan can cover till 65 years.

Advantage of this plan :-

=================

On maturity, you would receive the sum assure plus the

bonuses addition. Bonuses addition is the amount in the accumulation

account. In access of the sum assure

Cover you for a term ( years ) of your choice.


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At the same time does not burden you with the liability to pay premiums

for that entire term.

Entitled you to bonus addition for the entire term of the plant.

Premium to be paid for the full term of the plan.

You have the choice of paying you premium either in yearly , half yearly

and quarterly modes or of paying a single one time premium, depending

on your conveniences.

ENDOWMENT PLAN :-

=================

It is participating ( with profits ) insurance plan that offers the

following features.

Provides financial support to the family by way of a lumpsum payment in

case of the unfortunate death of the life assured within a term of policy.

Provides a lumpsum payments to the life assured on the survival upto

maturity.

The lumpsum mentioned is the basic sum assured plus any bonus additions.



TERM TO AVAIL LOAN :-


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====================

Minimum term 10 years.

Maximum term 30 years.

Maximum age that plan can cover till 75 years.

ADVANTAGE OF THIS PLAN :-

========================

On maturity , you would receive the sum assures plus the bonuses

addition. Bonuses addition is the amount in the accumulation account. In

access of the sum assure

Cover you for a term ( years ) of your choice.

At the same time does not burden you with the liability to pay premiums for

that entire term.

Entitled you to bonus addition for the entire term of the plant.

You have the choice of paying you premium either in yearly , half yearly

and quarterly modes or of paying a single one time premium, depending on

your conveniences.

Endowment assurance plan offers the tax benefits u/s 88, section 80D and

section 10 ( 10D ) of the income tax act are applicable. Applicable to

premium paid for CI and WOP.


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MONEY BACK PLAN :-

=================

It is participating ( with profits ) plan. That offers the following

features :-

Payment of cash lumpsum , each of which is a proportionate of the basic

sum as assured, at five years intervals during the term of policy.

On survivals upto maturity, a payment equal to the basic sum assuredplus any bonus addition less the cash lumpsum paid earlier is provided.

In case of the unfortunate death of the life assure within the term policy ,

the basic sum assure plus any bonus addition is provided.

This is over and above the earlier payouts.

Term

policy

term

No. of years from policy date

5 10 15 20 25

10

15

20

25

30

40%

30%

25%

20%

15%

30%

25%

20%

15%

25%

20%

15%

20%

15% 15%




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CHILDEREN PLAN :-

================

Childrens flag is designed to provide a lumpsum to the child at

maturity it also provides financial security to the child in the future , even in

the case of insured parents unfortunate death during the policy term.

Children plan

will receive simple reversionary bonuses, which are usually added anuually.

This is a flexible plan with three option for you to choose from , depending

on your requirements.. the details of these options are explained in the next

section.

Option On the death of the

insured person during the

policy term

On maturity

Maturity benefit Future premiums waived

and the policy continued

till maturity

Sum assured + bonuses

Accelerated benefit plan Sum assuered + bonus

paid and the policy stops

On the survivals of the

insurance. Parent of the

maturity date

Sum assured + bonus

paid

Double benefit plan Sum assured paid, future

premium waived and the

continue

Sum assured + bonuses

paid


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Minimum age 18 years

Maximum age 60 years

TERM TO AVAIL PLAN :-

Minimum term 10 years

Maximum term 25 years

Maximum age that plan can cover till 75 years

ADVANTAGE OF THIS PLAN :-

========================

On maturity you would receive the sum assured plus the bonuses addition.

The automatic cover maintenance facility ensures the policy rem

enforces even if you miss premium payments. This facility is available after

the first three years of the term.

You can take a loan against this plan, after policy has been enforce at least 3

years.

You can have the option of paying premiums quarterly, half yearly or yearly.

Money back plan offers the tax benefits u/s 88, sec 88D and section 10 ( 10

D ) of the income tax act are applicable . applicable to premium paid for CI

and WOP.

PERSONAL PENSION PLAN :-


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=======================

This participating ( with profits ) plan is basically a saving

contract, which is designed to provide and income for life fro retirement. It

does this by accumulating in national lumpsum on retirement, comprising of

sum assured plus any attaching bonus. Subject to the prevailing regulations,

part of these lumpsum can be taken in form of cash and the rest converted to

an annuity at the rate offered by HDFC Standard Life . alternatively if it

permitted by the prevailing regulations notional lumpsum can be used to by

and annuity with any other insurance company who will accept such

business.

On earlier death after the first year, for regular premium

policies all premium paid to date will return with compounded interest rate

calculated @ 8% per annum, subject to a maximum of the sum assured plus

bonuses declare to date. For single premiums, it is sum assured plus bonuses

declare to date. Normally we

will declare a reversionary bonus once a year , once added , it can not be

reduced reversionary will take the form of a single addition to your policy

benefits. In addition, on maturity a terminal bonus might be payable. On

death an interim business, reflecting the period since the last addition of

reversionary bonus might also be payable term

Minimum age 18 years


Term 10 15 20

30 N/a n/a 4309

35 N/a 6098 432740 9577 6177 4357


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TERM TO AVAIL PLAN :-

===================

In case of death the family will receive the sum assured plus bonuses.

You can suurender the policy at any time. If premium have been paid

continuously for at least 3 years, surrender value will be subjected to be

guaranteed minimum.

You have the choice of paying your premium either in yearly, half yearly or

quarterly modes, depending upon your conveniences.

Money back plan offers the tax benefits u/s 88, sec 88D and section 10 ( 10

D ) of the income tax act are applicable . applicable to premium paid for CI

and WOP.

SINGLE PREMIUM WHOLE OF LIFE INSURANCE :-

Single premium whole of life insurance plan is well suited to meet

your long term investment needs. This is participating (with profit) plan.

Your money will be invested in your with profit fund. The fund aims to

provide secure and stable long term growth. Normally, you will declare a

compound reversionery bonus for your policy every year and add it to your

policy on its anniversary. In addition, on death, surrender or on the

guaranteed dates, a terminal bonus is payable. You pay us single premium

and the policy will pay you a lumpsum.




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You can buy the product on a single life basis

Minimum sum assured 25000

Maximum sum assured 500000

Premium : Rs 950 per thousand of sum assured

Advantages of this plan :-

==================

Flexibility of this term :-

Even after choosing your policy, you can decide on the policy. For 4

weeks after any one of the 10th, 15th, 20th and subsequence 5 year

anniversaries 5 year anniversaries you can choose to receive the sum assured

plus any attaching, in full. Once the money has been received, your policy

will cease.

Surrender Policy :-

You can terminate the policy any time, after it has been force at least

6 month, and receive a surrender value

In case of unfortunate death :-

Your nominee gets the sum assured squared by your premium, plus

any attaching bonus.


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No medical requirements :-

We do not require you to undergo any medical test for this plan.

GENERAL BENEFITS :-

PREMIUM WAIVER BENEFIT :-

For a policy taken on the life of a child (children policies

jeewan Kishore, Jeewan sukanya, Jeewan balya and children money back

policy) the premium is paid by the proposer. Under these polices the

propsers life is not covered. It means if proposer dies before maturity of the

policy, no money becomes payable to the family. On death of the proposer,

the family will loose the income of the proposer. In addition to this problem

the family has to continue the payment of premium. To avoid this problem,

the premium waiver benefit can be opted for, by the proposer. Under this

benefit, if the proposer dies before maturity of the policy, future premium

are waived future premium not to be paid by the other family members. The

premium waiver benefit may be obtained by paying

some extra premium depending upon the age of the policy holder. This extra

premium is calculated per 100 rupee of basic premium per thousand.


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PROFILE

OBJECTIVES :-


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Spread Life Insurance much more widely and in particular to the rural areas

and to the socially and economically backward classes with a view to

reaching all insurable persons in the country and providing them adequate

financial cover against death at responsible cost.

Maximum mobilization of peoples savings by making insurance-

linked savings adequately attractive.

Bear in mind, in the investment of funds, the primary obligation to its

policy holders, whose money it holds in trust, without losing sight of the

interest of the community as whole, keeping in view national priorities and

obligation of attractive return.

Conduct business with almost and with the full realisation that the

money belongs to the policy holders.

Act as trustees of the insured public in their individual and collective

capacities.

Involve all people working in the corporation to the best of their

capability in furthering the interests of the insured public by providing

efficient service with courtesy.


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Promote amongst all agents and employees of the corporation a sense of

participation, pride and job satisfaction through discharge of their duties

with dedication towards achievement of corporate objective.

VISION:

A Tran-nationally competitive

Financial conglomerate of

Significance to society &

Pride of India

MISSION :-

Explore and enhance the quality of life

of people through financial security by

providing products and services of

aspired attributes with competitive

returns, and by rendering resources

for economic development

PRODUCTS :-

1. Term Insurance Plan

2. Endowment Plan


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3. Money Back Plan

4. Jeevan Mitra Plan

5. Jeevan Sathi Plan

6. Jeevan Surbhi Plan

7. Children Plan

a. Bal Vidya

b. Jeevan Chhaya

c. Children Money Back

TERM INSURANCE PLAN :-

Term insurance plan is a pure risk product that aims to cover your life

at a nominal cost. You may want to take this plan to cover your outstanding

debts like a mortgage, Home Loan etc. Since this is a pure risk cover

product, there is no maturity benefits payable on survival. This is non

participating plan.

Availability of Plan :-

Minimum Age of 12 Years

Maximum Age of 60 Years


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Term to Avail Plan :-

Minimum Term 5 years

Maximum Term 55 years

Maximum Age that plan cover 70 years

Advantages of this Plan :-

It is low cost insurance plan

You can choose between a regular premium payment option or a

single premium payment option.

In case you forget to pay your premium by due date, you are

entitled to a grace period of 30 days from the date of unpaid

premiums.

In case of financial emergency, you have the option to surrender

the policy provided you have taken the single premium payment

option.


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ENDOWMENT PLAN

=================

Endowment plan is a protection plan that covers your life and at the

sane time ensure that your money does not lie idle. It invests a portion of

your premium is financial instruments and ensures a considerable growth in

saving. This is a participating plan ( With Profits ). This is most popular plan

which helps fulfilling many long terms and short term financial needs.

Availability of the plan :

==================



Term to Avail plan :

Minimum term 5 years.

Maximum term 55 years.

Maximum age that the plan cover 75 year.\

Advantage of this plan :-

==================

On maturiy, you would receive the sum assure plus the bonuses

addition. Bonuses addition is the amount in the accumulation account, in

access of the sum assure.

Cover for a term ( years ) of your choice.


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At the same time does not burden you with the liability to pay

premiums for that term.

Entitiled you to bonus addition for the entire term of the plan.

For age at entry 61 to 65 years, minimum sum assured is Rs.

250000/- and proposal has to be reffered to divisional officer.

Premium to be paid for the full policy term or policy holders death,

which ever is earlier.

MONEY BACK PLAN :-

=================

The money back plan not only covers your life, it also assure you a

certain percent of the sum assure as cash payment at regular intervals of

every five years. It is a saving plan with the added advantage of life cover

and regular cash inflow. This plan is ideal for planning special movement

like a wedding, your child education or purchase of an asset etc. this is a

participating plan ( with profits ).

How old does the child have to be to avail this plan?




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Term to Avail Plan :

20,25 and 30 years for regular premium.

Maximum age that plan will cover till 70 years.

Advantage of this plan :

=================

The plan not only cover your life but also provides you with a

survives benefit payout every five years.

In case of death before the policy the policy term ends, full sum assure

plus accumulated bonuses is given to the nominee. The survival

benefit already paid, if any, is not deducted in case of death claim.

On maturity, you would receive the sum of the survivals benefit,

bonus addition and guarantee addition.

Benefits on maturity :-

On maturity, you would receive the sum of the survivals benefit,

bonus addition and guaranteed addition. The table below in illustrates the

survival benefit for Rs. 1000/- of sum assure.

Survival benefits payout for every Rs. 1000/- sum assured.


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Payout (in rupees) .

5th years, 10th years, 15th years, 20th years, 25th years

15 years plan

Survivals benefit 250, 250, 500

Guaranteed addition 200

20 years plan

survivals benefits 200, 200, 200, 400

guaranteed addition 300

JIVAN MITRA POLICY :-

====================

Jivan Mitra plan is a protection plan that covers your life and at the

same time assures that your money does not lie idle. It is most popular plan

of LIC. This plan is best suited for people who are insurance oriented and

also want to provide a big sum insurance protection to their family, in case

of their unfortunate death.

This plan is most preferred by traveling persons like sales representatives,

marketing executives, medical representatives.

Availability of the Plan :-

=================

Minimum Age 18 years

Maximum Age 50 years

Term to Avail plan: -



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Maximum age 30Years

Maximum Age that Plan cover is 70 years.

Advantages of this Plan: -

==================

On maturity, basic sum assured plus bonus is given.

In case of death three times of sum assured plus bonus is given.

In case of accidental death, four times of sum assured plus bonus is

given, provided policy was covered for accident benefit.

The returns of the policy will totally tax free U/s 88.

JIWAN SATHI

============

Jiwan Sathi plan is most suitable for newly married couple. It covers

the life risk of both under the single policy. This policy is very economical

and affordable. It is wise to take one Jiwan Sathi, instead of investing in two

different policies individually. This policy is issued only to working couple

or wife should be an income tax assessee. For sum assured 50000 and less,

wife needs not to be earning person. Age taken as mean of both.


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Availability of the Plan: -

Minimum Age 20 years


Term to Avail plan: -


Maximum age 30Years


Advantages of this Plan: -

==================

In case of survival till maturity you would receive sum assure plus full

bonuses.

If the survivor dies before maturity, sum assure plus bonus till that

time, is pay to the nominee.

If both husband and wife are alive upto maturity, sum assure plus

bonus is given.

On death of either husband or wife, the survivor gets sum assured

immediately and future premium are waived.


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CHILDREN PLAN: -

===============

The children plan is an investment plan designed to meet your childs

future financial needs. Its a plan that gives your child to realize his dreams.

This plan divide into two parts :

1. CHILD AS A POLICY HOLDER

2. PARENTS AS A POLICY HOLDER & CHILD AS BENIFICIARY

Child as a policy Holder: -

Jeewan Sukanya

Jeewan Kishore

Jeewan Sukanya: -

This policy given on the life of female child is the best gift. Policy

takes care of the need of the girl for the entire life. Female childs age should

between 1 to 12 years. Father can propose, mother can propose, if she has


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her own income. Age at entry is calculated as age last birthday and not as

age nearer birthday. Life risk cover starts from seventh year of the girl child.


Minimum Age 1 years


Term to Avail plan :-


Maximum age 49Years



==================

On maturity girl surviving till she reaches 50 years of age, bonuses

upto the age is paid.

After the marriage of girl, husband life is also covered for the amount

equal to sum assure. No additional premium to be paid.


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In case of death of the girl after commencement of risk but before the

maturity date, full sum assure with bonuses is paid.

CHILDREN MONEY BACK POLICY :-

In this policy parents are policy holders and child is beneficiary this is

the best policy for making provisions in advance for childrens highereducation. Policy is an ideal gift for the child male/female. Mother/Father

can propose. Life risk starts from 7th year of child. Parents insurance need

not be sister on insurance upto Rs 100000/-


Minimum Age 0 years


Term to Avail plan :-


Maximum age 26Years




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==================

In this 18 & 20 years of child, 20% of the sum assure is given respectively.

After 22 & 24 of the child 30% each of the sum assure is given respectively.

After 26 year of the child, bonus upto that period is given. In addition,

guaranteed addition plus loyalty addition, if any is given also.

If the policy holder dies after the commencement of the risk but before

maturity full sum assure together with guaranteed addition is given to the

nominees without deducting earlier installments paid.

If policy holder (child) dies before the policy risk commerce, premium paid

till them is refunded.

GENERAL BENEFITS :-

PREMIUM WAIVER BENEFITS :-

For a policy taken on the life of a child (children policies-

jeewan kishore, jeewan sukanya, jeewan balya & children money back

policy) the premium is paid by the proposer. Under these policies the

proposers life is not covered. It means if proposer dies before maturity of

the policy, no money becomes payable to the family. On the death of the

proposer, the family will loose the income of the propser. In addition to this

problem, the other family members has to continue the payment of premium.

To avoid this problem, the premium waiver benefit can be opted for, by the

proposer. Under this benefit, if the propser dies before maturity of the


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policy, future premium are waived future premium not be paid by the other

family members. The premium waiver benefit may be obtained by paying

some extra premium depending upon the age of the policy holder. This extra

premium is calculated 100 rupee of basic premium per thousand.

TERM RIDER BENEFIT :-

Under children money back policy, the life risk covered is that of the child.

If the proposer dies pre maturely, no money becomes payable to the family.

To avoid this problem the term rider can be added to the childrens money

back policy. Under this benefit if proposer dies before 18 years of the child a

sum equal to 20% of the sum assure becomes payable to the family. Other

benefits to the child

TAX BENEFIT :-

The premiums paid under the plan qualify for rebate U/s 88 of the

Income Tax Act, 1961 and the returns are fully exempted under sec

10(10D).

OPTIONAL BENEFITS :-

Critical Illness, Double Sum Assured Benefits, Accidental Death

Benefit etc.


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INTRODUCTION

ICICI Prudential Life Insurance Corporation Ltd. was incorporated on

20.7.2002. this company is a joint venture of ICICI(74%) and Prudential plc

UK(26%).

The company was granted certificate of registration for carrying out

Life Insurance Business, by the Insurance Registory and Development

authority on Nov 24.2000. it commenced commercial operations on Dec

19.2000, becoming one of the few private sector players to enter the

liberalized arena.

DETAILS OF ICICI :-

This is Indian participate company of this insurance Co.. ICICI Ltd

was established in 1955 by world bank, the govtof India and the Indian

Industry, to promote industrial development of India by providing project

and corporate finance to Indian Industry.

Since inception, ICICI has grown from a development bank to a

financial conglomerate and has become one of the largest public financial

institutions in India. ICICI has thus far financed all the major sectors of the

economy, covering 6848 companies and 16851 projects.


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DETAILS OF PRUDENTIAL PLC :-

Prudential Plc was founded in 1848. since then it has grown to

become one of the largest providers of a wide range of savings products for

the individuals including life insurance, pensions, annuities, unit trust and

personal banking. It has

presence in 15 countries, and caters to the financial needs of over 10 million

customers.

Prudential is the largest life insurance company in the U

Kingdom. Asia has always been an region for prudential and it has had a

presence in Asia for 75 Years. In fact Prudential first Overseas operation

was in India, way back in 1923 to establish Life and General Branch

agencies.

This is the only company who market maximum product with goof

feature in competition with LIC. In my opinion these companys stand

seconds in merits. It has introduced the following Insurance product :-

1. Save n Protect

2. Cash Bak

3. Smart Kid

4. ICICI PRU Life Guard

5. Life Time Pension.


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1. SAVE N PROTECT :-

It is a fix term policy that combines saving with life cover in this plan,

you pay premium regularly during the term. On death of the life assure upto

age 7 years the basic premium paid will be return without interest. On the

death of the life assured after 7 years, the beneficiary will get the sum

assured, guaranteed additions 3.5% compounded interest annually for the

first 4 years and the vested bonuses was the policy matured at the end of the

term, you can get the full sum assure and guaranteed addition, 3.5% a

compounded annually for the 1st 4 years as well as the vested bonuses.

Minimum Age 0 years


Term to Avail the plan :

Minimum term 10 years, maximum term 30 years

The maximum cover ceasing age is 70 years.

Advantages of this plan :

The plan not only covers your life but also provides you with a survives

benefit payout every five years.


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In the unfortunate event of death of life insure, the beneficiary would

receive the death benefit.

On the maturity, you would receive the sum of the survivals benefit,

bonus addition and guaranteed addition.

You have the choice of paying your premium either in yearly, half yearly

modes, depending upon your conveniences.

Money back plan offers the tax benefit U/s 88, Sec 80D and Sec

10(10D)

of the Income Tax Act, 1961 are applicable.

You can take a loan against this plan.

2. CASH BANK :-

A fixed term policy of 15 to 20 years in which premiums are paid

through out the term of the policy. Survival benefit payment at regular

intervals are paid to provide you with the liquidity full sum assured, along

with the guaranteed addition 3.5% compounded annually for the 1 st four

years at the vested bonuses would be payable on death, irrespective of the

survival benefit paid. On death of the life assured, the beneficiary will get

the full sum assure, the guaranteed bonuses and the vested bonuses,

irrespective of the survival benefit already paid. The survival benefit payable

are as per the table :


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Policy Term 15 Years Policy Term

At end of year Survival pay. a %

basic

sum assured

At the end of year Survival pa

bas sum assured

3 10% 4 10%

6 15% 8 15%

9 20% 12 20%

12 25% 16 25%

15 (Maturity) 50% gur add. bonus 20 (Maturity) 50% gur add. bonus

Minimum Age 16 Years


Term to Avail Plan:


Maximum Term 20 YearsThe maximum maturity age is 70 years


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The plan not only covers your life but also provide you with a survivals

benefit payout every five years.

In the unfortunate event of death of the life insure, the beneficiary would

receive the death benefit.

On maturity, you would receive the sum of the survivals benefit, bonus

addition and guaranteed addition.

You have the choice of paying your premium either in yearly, half yearlymodes, depending on your conveniences.

Money back plan offers the tax benefits U/s 88, Sec 80D and Sec

10(10D) of the Income tax Act, 1961 are applicable.


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3. SMART KID: -

===========

Smart kid is so designed that it provides you the flexibility to structure

the benefit in accordance to your needs. You get the security of assured

payments under your plan depending upon the benefit structure chosen by

you. Whats more, you can decide the term of the plan, so that the benefit

are paid when you need it. You can also choose the policy to mature

between 22-25 years of the childs age. In case of survivals during the term

of the policy you can get the payouts after some intervals.

At the end of Childs age

10 yr of the policy 15 years

assured


assured


assured


assured

+ GA + VB

Minimum Age 0 Years


Parents of Minimum age 20 years and Maximum age 60 years


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Term to Avail Plan:


Maximum Term 25 Years

Advantages of this plan :-

On maturity you would receive the sum assured plus the bonus addition

The automatic cover maintenance facility ensures the policy remains

inforce for at least 3 years.

You have the option of paying premium half yearly or yearly.


10(10D) of the Income tax Act,1961 are applicable.

4. LIFE TIME PLAN :-

ICICI Prudential Life time Pension Plan combine the bes

investment and insurance. The solution gives the power of maintaining your

life style needs for as long as you live. It is a regular premium plan it gives

you the freedom to choose the amount, the premium, and invest your money

in the market-linked funds, to generate potentially higher returns. A part of

the premium paid is used to pay for the death benefit (if any) opted for by

you and the rest be invested in the plan of your choice. On the retirement


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date the accumulated value of the units will be used to purchase and annuity-

to provide you with regular income for life.



Term to Avail Plan:




Power to choose the retirement age between 52-70 years.

You can increase your investment during the deferred period.

You can increase or decrease the protection level.

You can invest in a plan based on your priorities.


10(10D) of the Income tax Act, 1961 are applicable.

Your policy acquires a paid up and surrender value after 3 years

premiums are paid in life time pension plan.


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5. LIFE GUARD :-

Under this plan, a sum assure is payable in case of death of the life

assure during the term of contract. One can choose the lump sum that would

replace the income lost to ones family in the unfortunate event of the ones

death. Since this non-participating (without profits) plan is a pure, risk cover

plan, no benefits are payable on survival to the end of the term of the policy.



Term to Avail Plan:



Maximum age that plan covers is 65 years

Minimum premium payable is 2400 per annum


On maturity, you would receive the sum assure plus the bonuses

addition. Bonuses addition is the amount in the accumulation account. In

cases of the sum assure.


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Cover you for a term (years) of your choice.

At the same time does not burden you with the liability to pay premiums

for the entire life

Entitled you to a bonus addition for the entire term of the plan.

Premium to be paid for the Full policy term or policy holders death,

whichever is earlier.

You have the choice of paying premium either in yearly, half yearly and

quarterly modes or of paying a single one time premium

Level term Assurance life guard plan will have the option with returns of

premium. In case of death you will receive the sum assure plus bonuses.

On survival till maturity, all the premium paid, will be returned without

interest. The minimum premium payable is Rs 2400/- per annum


10(10D) of the Income tax Act,1961 are applicable.

GENERAL BENEFITS

Accident Death Benefit :-

This benefit provides an additional amount (Over and above basic

sum assured) to the beneficiary in the death of the accidental death of the


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assured. The maximum cover available under this benefit is equal to the

basic sum assured (subject to a maximum of Rs 10 lac). If accident death

occurs while traveling as a passenger in mass transport system like train or

bus amount payable would be double of the sum assure.

Critical Illness Benefit :-

The benefit can be taken with the basic life insurance policy to

provide financial support in the event of medical emergencies. On the first

occurrence of critical illness during the term of the policy, you would

receive a portion of the sum assured to reduce your financial burden in this

emergency.

Permanent Disability Benefit :-

This benefit provides financial support in case of your permanent

disability due to an accident. The amount payable is over and above the

basic sum assured and would be paid out as an annuity. The maximum

permanent disability benefit that permanent disability is defined as a

permanent and immediate inability to work, the permanent loss of two limbs

or a total and permanent loss of a sight.

Major Surgical Rider :-

This is a cover available against the major surgical procedures.

Depending upon the surgery, 50%,30% or 20% of the sum assured under the

rider is paid. This provide the cover of the sum, subject to maximum of 65


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years. Claims for this rider are not admitted for the first 6 months of the

policy.


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As 0it is difficult to compare all the policies of all the companies because

they vary in their benefits etc. So in this project I am comparing only four

policies of three Companies i.e. HDFC Standard Life, LIC,

Prudential.

Policies are named as :

TERM ASSURANCE PLAN

ENDOWMENT ASSURANCE PLAN

MONEY BACK PLAN

CHILD ADVANTAGE PLAN


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Min to Max Age Premium Base Comparison Min to Max. term

18-60 years Term Plan 10-30 years

Name of the

company

HDFC SLIC LIC ICICI PRO OM KOTA

Age of the

person

30 years 30 years 30 years 30 years

Term of the

policy


Sum assured 1,00,000 1,00,000 1,00,000 1,00,000

Basic

premium

(without any

premium)

10,300 9,324 11,809 11,237

Returns (on

death)

S.A. + Bonus S.A. +

Bonus

S.A. + Bonus S.A. + Bonus

Returns (onmaturity)

NI2 NI2 NI2 NI2

other benefits (CI),(ADB),(ASA) (WOP),

(ADB)

(ADBR),

(ABR)

(CI),(ADB)

(PDB)


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12-60 years Endowment Plan 10-30 years

Name of the

company

HDFC SLIC LIC ICICI PRO OM

Age of the person 30 years 30 years 30 years 30 years

Term of the policy 20 years 20 years 20 years 20 years

Sum assured 1,00,000 1,00,000 1,00,000 1,00,000

Basic premium

(without any

premium)

5,100 4,895 5,216 5,321

Returns (on death) S.A. + Bonus S.A. +

Accumulated

Bonus

S.A. + Bonus S.A. + Bon

Returns (onmaturity)

S.A. + Bonus S.A. + Bonus S.A. + Bonus+GA

S.A. + Bon

Other benefits (CI),(ADB),

(DSA),(WOP)

(WOP), (ADB) (ADB),(ABR),

(CI),(MSR)

(CI),(ADB

(DSA),(2G


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(TB)


12-60 years Money Back Policy 10-30

yearsName of

the

company

HDFC SLAIC LIC ICICI PRO OM KOTAK

Age of the

person


Term of the

policy


Sum

assured

1,00,000 1,00,000 1,00,000 1,00,000

Basic

premium

(withoutany

premium)

7,585 6,380 7,019 6,040

Returns (on

death)

S.A. + Bonus S.A. + Bonus S.A. +

Bonus

S.A. + Bonus

Returns (on

maturity)

Return after 5-5

years

For 20 YearsPolicy 20%-20%

and 20% alte 5-5

years gap+

Bonus

Return after

5-5 years

For 20Years Policy

20%-20%

and 20% alte

5-5 years

In 20 years

Policy

returns after4-4 years

gap.

1st year-10%

2nd year-

Return after 5-5

years

For 20 YearsPolicy 20

a comparative study based on customersgÇÖ preference analysis towards insurance products

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