comparative analysis of life insurance products report final (1)

EXECUTIVE SUMMARY

The title of the project is Comparison of Life Insurance Products in which mainly three

products are compared Child Plan, Pension Plan, Term Plan. All research is done on

secondary data. Two types of approaches are used during this study analytical and

descriptive. The objective of the report is to reveal comparative analysis of the three plans of

Bharti AXA Life Insurance, ICICI Prudential Life Insurance and SBI Life Insurance.

The analysis done in the report will reveal the one of the best insurance product available in

the market. The report will be come up with some useful suggestion and findings which can

help the company to improve their product in different charges applied by company on

premium paid by customer and features of the products.

1

INTRODUCTION

INSURANCE INDUSTRY IN INDIA

In India, insurance has a deep-rooted history. It finds mention in the writings of Manu (Manusmrithi), Yagnavalkya (Dharmasastra) and Kautilya (Arthasastra). The writings talk in terms of pooling of resources that could be re-distributed in times of calamities such as fire, floods, epidemics and famine. This was probably a pre-cursor to modern day insurance. Ancient Indian history has preserved the earliest traces of insurance in the form of marine trade loans and carriers‘ contracts. Insurance in India has evolved over time heavily drawing from other countries, England in particular. 1818 saw the advent of life insurance business in India with the establishment of the Oriental Life Insurance Company in Calcutta. This Company however failed in 1834. In 1829, the Madras Equitable had begun transacting life insurance business in the Madras Presidency. 1870 saw the enactment of the British Insurance Act and in the last three decades of the nineteenth century, the Bombay Mutual (1871), Oriental (1874) and Empire of India (1897) were started in the Bombay Residency. This era, however, was dominated by foreign insurance offices which did good business in India, namely Albert Life Assurance, Royal Insurance, Liverpool and London Globe Insurance and the Indian offices were up for hard competition from the foreign companies. In 1914, the Government of India started publishing returns of Insurance Companies in India. The Indian Life Assurance Companies Act, 1912 was the first statutory measure to regulate life business. In 1928, the Indian Insurance Companies Act was enacted to enable the Government to collect statistical information about both life and non-life business transacted in India by Indian and foreign insurers including provident insurance societies. In 1938, with a view to protecting the interest of the Insurance public, the earlier legislation was consolidated and amended by the Insurance Act, 1938 with comprehensive provisions for effective control over the activities of insurers. The Insurance Amendment Act of 1950 abolished Principal Agencies. However, there were a large number of insurance companies and the level of competition was high. There were also allegations of unfair trade practices. The Government of India, therefore, decided to nationalize insurance business. An Ordinance was issued on 19th January, 1956 nationalizing the Life Insurance sector and Life Insurance Corporation came into existence in the same year. The LIC absorbed 154 Indian, 16 non- Indian insurers as also 75 provident societies—245 Indian and foreign insurers in all. The LIC had monopoly till the late 90s when the Insurance sector was reopened to the private sector. The history of general insurance dates back to the Industrial Revolution in the west and the consequent growth of sea-faring trade and commerce in the 17th century. It came to India as a legacy of British occupation. General Insurance in India has its roots in the establishment of Triton Insurance Company Ltd., in the year 1850 in Calcutta by the British. In 1907, the Indian Mercantile Insurance Ltd was set up. This was the first company to transact all classes of general insurance business.

2

1957 saw the formation of the General Insurance Council, a wing of the Insurance Association of India. The General Insurance Council framed a code of conduct for ensuring fair conduct and sound business practices. In 1968, the Insurance Act was amended to regulate investments and set minimum solvency margins. The Tariff Advisory Committee was also set up then. In 1972 with the passing of the General Insurance Business (Nationalization) Act, general insurance business was nationalized with effect from 1st January, 1973. 107 insurers were amalgamated and grouped into four companies, namely National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd and the United India Insurance Company Ltd. The General Insurance Corporation of India was incorporated as a company in 1971 and it commence business on January 1st 1973. This millennium has seen insurance come a full circle in a journey extending to nearly 200 years. The process of re-opening of the sector had begun in the early 1990s and the last decade and more has seen it been opened up substantially. In 1993, the Government set up a committee under the chairmanship of RN Malhotra, former Governor of RBI, to propose recommendations for reforms in the insurance sector. The objective was to complement the reforms initiated in the financial sector. The committee submitted its report in 1994 wherein, among other things, it recommended that the private sector be permitted to enter the insurance industry. They stated that foreign companies to be allowed to enter by floating Indian companies, preferably a joint venture with Indian partners. Following the recommendations of the Malhotra Committee report, in 1999, the Insurance Regulatory and Development Authority (IRDA) was constituted as an autonomous body to regulate and develop the insurance industry. The IRDA was incorporated as a statutory body in April, 2000. The key objectives of the IRDA include promotion of competition so as to enhance customer satisfaction through increased consumer choice and lower premiums, while ensuring the financial security of the insurance market.

The IRDA opened up the market in August 2000 with the invitation for application for registrations. Foreign companies were allowed ownership of up to 26%. The Authority has the power to frame regulations under Section 114A of the Insurance Act, 1938 and has from 2000 onwards framed various regulations ranging from registration of companies for carrying on insurance business to protection of policyholders‘ interests. In December, 2000, the subsidiaries of the General Insurance Corporation of India were restructured as independent companies and at the same time GIC was converted into a national re-insurer. Parliament passed a bill de-linking the four subsidiaries from GIC in July, 2002. The insurance sector is a colossal one and is growing at a speedy rate of 15-20%. Together with banking services, insurance services add about 7% to the country‘s GDP. A well-developed and evolved insurance sector is a boon for economic development as it provides long- term funds for infrastructure development at the same time strengthening the risk taking ability of the country.

3

OTHER LIFE INSURERS

1. HDFC Standard Life Insurance Company Ltd.

2. Max New York Life Insurance Co. Ltd.

3. ICICI Prudential Life Insurance Company Ltd.

4. Kotak Mahindra Old Mutual Life Insurance Limited

5. Birla Sun Life Insurance Company Ltd.

6. Tata AIG Life Insurance Company Ltd.

7. SBI Life Insurance Company Limited.

8. ING Vysya Life Insurance Company Private Limited

9. Bajaj Allianz Life Insurance Company Limited

10. MetLife India Insurance Company Ltd.

11. Future Generali India Life Insurance Company Limited

12. IDBI Fortis Life Insurance Company Ltd.

13. Reliance Life Insurance Company Limited.

14. Aviva Life Insurance Co. India Pvt. Ltd.

15. Sahara India Insurance Company Ltd.

16. Shriram Life Insurance Company Ltd.

17. Bharti AXA Life Insurance Company Ltd.

18. Future Generali India Life Insurance Company Limited

19. IDBI Fortis Life Insurance Company Ltd.

20. Canara HSBC Oriental Bank of Commerce Life Insurance Company Ltd.

21. Aegon Religare Life Insurance Company Ltd.

4

22. DLF Pramerica Life Insurance Company Ltd.

23. Star Union Dai-chi Life Insurance Co. Ltd.

5

Market share of life insurance companies in India in at the end of FY2010

48.1%

13.7%

10.3%

6.2%

4.1%

3.4%

3.4%

2.4%

1.9%

1.8%1.5%

1% 1%

0.2%0.2%

Market ShareLIC ICICI Predential Allianz bajaj SBI Life HDFC StandardBirla Sunlife Reliance Life Max New York OM Kotak AVIVATata AIG MetLife ING Vysya Shriram Life Bharti Axa Life

6

CONCEPTUALIZATION What Is Insurance? Basically insurance is assurance. Insurance is transfer and sharing of risk by equitable loss sharing. Insurance does not get back or replace the assets, it only compensates for the loss suffered. In other words, we can say that insurance is a mechanism that provides compensation for the financial value of the assets in case of loss or damage. At last insurance an important social security tool that offers the counter balance to risk, that is, security.

Essential Features to Insurance- There must be large numbers of similar risks.

The loss caused by the risk must be definite.

The occurrence of the loss must be accidental.

The potential loss must be large enough to cause hardships.

The cost of insuring must be economically feasible.

Need for Life Insurance: Possibility of damage caused by any event the risk.

Uncertainty and unpredictability about future losses or damages which may or may not happen, which may happen suddenly and unexpectedly.

Insurance is relevant about the risk.

Insurance is done against the contingency of the happening of such events.

If there is no risk then no need of insurance7.

Special need like medical expenses.

Today insurance has become even more important due to the disintegration of the prevalent joint family system, a system in which a number of generations co-existed in harmony, and a system in which a sense of financial security was always there as there were more earning members.

Types of Insurance There are two type of insurance.

Non- life insurance

Life insurance

7

1. Non life insurance:

In this we include health and general insurance. GIC was set up by nationalizing the non-life

business of insurance sector in 1972. The GIC operates as the holding co. of its four

subsidiaries, namely,

National Insurance Company Ltd.

The New India Assurance Company Ltd.

The Oriental Insurance Company Ltd.

United India Insurance Company Ltd.

All the 68 Indian insurers and 45 non-Indian insurers who did business before nationalization

got merged and taken over by the four subsidiaries of GIC. These four subsidiaries have

branches all over the country and concentrate on non-life insurance business like marine, fire,

accident, medical expenses, Car and vehicle insurance etc. GIC can invest up to 50% in

private corporate and non-government sector.

2. Life insurance:

Life insurance or life assurance is a contract between the policy owner and the insurer where

the insurer is agree to pay a sum of money upon the occurrence of the occurrence of the

policy owner‘s death. In return policy holder agrees to pay a stipulated amount called a

premium at regular intervals.

Endowment Insurance Plan:

Endowment plans provide life insurance cover for a specified period. The important aspect is

that on maturity i.e. if the insured survives the term of the insurance, he/she receives the sum

assured at the end of the term.

Term Insurance Plan:

Term life insurance plans provide insurance cover for a specified period. The defining

characteristic of this type of life insurance plan is the complete absence of survival benefit i.e.

on maturity (surviving the term of the policy), you receive no money from the insurance

company.

8

Unit linked Insurance Plan:

Unit-linked Insurance Plans (ULIPs) combine the benefits of life insurance policies with

mutual funds. A certain part of the premium is invested in listed equities/debt funds/bonds,

and the balance is used to provide for life insurance and fund management expenses. Yields

earned on investments i.e. the value of the investment or the sum assured, whichever is

higher, is paid to the insured or nominee. This varies from company to company i.e. some

insurance companies pay the value of the investment in addition to the sum assured.

ULIPs have gained high acceptance due to attractive features they offer. These include:

Flexibility

-Flexibility to choose sum assured and premium amount.

-Option to change level of Premium/ Sum Assured even after the plan has started. Flexibility

to change asset allocation by switching between funds.

Transparency

-Charges in the plan & net amount invested are known to the customer.

-Convenience of tracking one‘s investment performance on a daily basis.

Liquidity

-Option to withdraw money after few years (comfort required in case of exigency) Low

minimum tenure.

-Partial / Systematic withdrawal allowed.

Fund Options

-A choice of funds (ranging from equity, debt, cash or a combination) is available.

-Option to choose your fund mix based on desired asset allocation.

9

COMPANY PROFILE

Bharti AXA Life Insurance

Bharti AXA Life Insurance is a joint venture between Bharti, one of India‘s leading business

groups with interests in telecom, agri business and retail, and AXA, world leader in financial

protection and wealth management. The joint venture company has a 74% stake from Bharti

and 26% stake of AXA.

The company launched national operations in December 2006. Their business philosophy is

built around the promise of making people "Life Confident".

The Company Profile:

NAME OF THE COMPANY: BHARTI AXA LIFE INSURANCE COMPANY

HEAD OFFICE: Goregaon (East), Mumbai, India

FOUNDED: The company came into existence in DEC 2006 by the

merger of India‘s telecom major BHARTI AIRTEL

with a 74 % stake and the global insurance majors AXA

with a 26% stake in the company.

VISION OF THE COMPANY: To be the leader and one of the preferred companies for

financial protection and wealth management in India.

VALUES OF THE COMPANY:

Professionalism

Innovation

Team Spirit

Pragmatism

CHAIRMAN: Mr. Sunil Bharti Mittal

CEO: Mr. Sandeep Ghosh

BRANCHES: Currently the company has 198 branches in INDIA.

EMPLOYEES: The Company has more than 5200 employees all over

India.

10

STRATEGY:

To achieve a top 5 market position in India through a multi-distribution, multi-product

platform.

To adapt AXA's best practice blueprints as a sound platform for profitable growth.

To leverage Bharti's local knowledge, infrastructure and customer base.

To deliver high levels of shareholder return.

To build long term value with our business partners by enhancing the proposition to

their customers.

To be the employer of choice to attract and retain the best talent in India.

To be recognized as being close and qualified by our customers.

STRENGTHS:

Strong partner Bharti provides access to more than 20 million customer multi channel

execution capability.

Current Asia product range which is a strong match to products sold to the mass and

the mass affluent.

Global scale providing cost effective and speedy re-use of systems, products and

business capability.

Strong AXA and Bharti brands which can be leveraged to attract and retain a high

quality management team.

11

Bharti-AXA Life insurance products:

Bharti-AXA basically offers two types of plans:

1) Individual plans, and

2) Group plans

INDIVIDUAL PLANS:

Individual plans are further of two types:

a) Unit-linked insurance plans, and

b) Traditional plans

Unit-linked insurance plans:

a) Bharti AXA Life Bright Star

b) Bharti AXA Life Spot Suraksha

c) Bharti AXA Dream Life Pension

d) Bharti AXA Life Aspire Life

e) Bharti AXA Life Invest Confident

f) Bharti AXA Life Wealth Confident

g) Bharti AXA Life Future Confident II

h) Bharti AXA Life Future Confident

Traditional plans:

a) Bharti- AXA Life Save confident

b) Bharti-AXA Life Secure confident

12

GROUP PLANS:

Group plans includes the following:

a) Bharti AXA Life – Swasthya Sanjeevani

b) Bharti AXA Life – Sanjeevani

c) Bharti AXA Life Mortgage Credit Shield

d) Bharti AXA Life Credit Shield

e) Bharti AXA Life Life Shield

13

THEORETICAL BACKGROUND

Comparative Analysis of Life Insurance Product

Comparative analysis is side by side examination of two or more alternatives, processes,

products, qualification, sets of data, systems etc., to determine if they enough common

ground, equivalence or similarities to permit a meaningful comparative analysis

This study will help in creating awareness among people about the importance and benefits of

Life Insurance that will help in creating interest of people in life insurance products and

ultimately in the growth of insurance industry that will contribute to the growth of Indian

economy and last in the growth of World economy.

In this highly competitive scenario, this study will also help people to know about the various

plans and in selecting the best insurance plan among the available plans according to their

needs.

In this study, an attempt has been made to compare the Child Plan, Pension Plan & Term

Plan of Top companies viz. ICICI Prudential Life Insurance, SBI Life Insurance with

BHARTI AXA Life Insurance which helps the company know about the plans of other

companies and their competitive advantage over Aviva life‘s plan. That will help company to

make more competitive plans and to gain the competitive advantages over its competitor and

ultimately by increasing the sale of the company, increase its market share.

14

SOME INSURANCE TERMINOLOGIES

Sum Assured:

It is the minimum guaranteed amount the nominee get in case of an unfortunate demise of the

life covered.

Premium:

The consideration paid by the insured to the insurer for making insurance. If it is paid

regularly during the term of policy, it is called Regular premium and if it is paid as lump

sum, for the whole policy term, it is called Single premium.

Premium Payment Term (PPT):

It is the time period for which one have to pay the Regular Premium. It can be less than or

equal to policy term.

Additional Regular Premium (ARP):

It is the extra amount paid above the Regular Premium. Once you opt for this feature, you are

bound to pay it for the whole premium payment term. The minimum and maximum amount is

different in different insurance companies.

Top-Up Premium:

It is also the extra amount paid over and above the Regular Premium. The only difference

between ARP and Top-up premium is that one does not obliged to pay it for the whole policy

term. The minimum and maximum top-up amount is different for different companies.

Partial Withdrawal (PW):

One, if needed, can withdraw some amount from the fund value pertaining to regular

premium and top-up premium after completion of the 3or 5 policy anniversary or as per the

rules of the companies.

Fund Option:

Premium you paid, after deducting all the charges, rest amount is invested in the Debt,

Money and Equity market. Every Life insurance company has some options according to the

percentage of money allocated in these markets. These are called Fund Options.

15

Switch:

By opting this feature you can switch from one fund option to another fund option available

in the plan depending on your financial priorities and investment decision. Switching policy

of different companies is different. Like minimum and maximum amount switched between

fund options are different in different companies and switching charges are also different.

Systematic Transfer Plan (STP):

This option allows you to enter and exit the equity market not abruptly, at once, but slowly at

different times and at different levels. This has the effect of averaging out the risks associated

with the equity market, thus reducing the overall risk you face. In this option some proportion

of the fund value is automatically switched from debt dominated fund to equity dominated

fund on regular basis.

Automatic Asset Allocation (AAA):

This option helps you to automatically decrease your exposure to equity and increase your

exposure to dept, as you grow older. This option relies on the fact that an individual‘s risk

appetite reduces with age and he tends to be more conservative with his investment. This

option provides you the flexibility of leveraging the returns from equity‘s market and secure/

book the profits by the way of auto asset allocation as he advances in his age.

Premium Re-direction:

This option helps you to modify the allocation proportion of your future premium into

various funds in accordance with your changing needs / preferences.

Settlement Option:

This option allows you to keep your money invested in the fund even after maturity and

enables you to receive the same systematically over a period of up to 5 years.

Cover Continuance Option:

This option ensures that your life insurance cover continues in case you are unable to pay

premiums, anytime after payment of first three years premium. All applicable charges will be

automatically deducted from the units available in your fund.

Free Look Period:

You can review the terms and conditions of the policy, 15 days from the date of the receipt of

the policy document and where you disagree to any of those terms and conditions; you have

the option to return the policy stating the reason of your objection.

16

Waiver of Premium Rider:

According to this rider, In case of an unfortunate event of death of the policy holder, the sum

assured is paid to nominee at that point of time and all the future premium will be paid by the

company.

Income Benefit (IB) Rider:

If this rider is opted for, then upon your death, 10% of the income benefit rider sum assured

will be payable to the appointee for every year.

Accidental Death Benefit (ADB) Rider:

If this rider is opted for, then in case of accidental death, the nominee will receive an

additional sum assured along with the death benefit.

Comprehensive Health Benefits (CHB) Rider:

If this rider is opted for, then upon permanent total disability due to illness or accident or

contracting any of listed 18 critical illnesses, then we shall pay the benefits payable in case of

your death.

17

INTRODUCTION ABOUT THE PLANS

1. CHILD PLANS

BHARTI AXA LIFE BRIGHT STAR PLUS

Features:

Entry Age(Last Birthday) Minimum Age 18 years.

Policy Term (PT) 7-25 years, subject to maximum maturity age of 70 years

Premium Payment Term(PPT) 3 years/5 years/equal to policy term

Annual Premium Minimum Rs. 15000 if PPT = PT

Minimum Rs. 50,000 if PPT = 3years/5years

Maximum=No Limit

Top-up Premium Minimum: Rs. 1,000;

Maximum: 25% of total regular premium paid

Sum Assured (SA) Minimum: 5* Annual Premium Maximum: 10*Annual premium

Riders Available In Built: Waiver of Premium

Optional: Accidental Death Benefit (ADB) Rider. Comprehensive Health Benefit (CHB) Rider.

Premium FrequencyYearly, Half yearly, Quarterly, Monthly

Fund Options Grow money plus fund, Growth opportunities plus fund, Build India fund, Save and Grow money fund, Steady money fund, Safe money fund.

Partial Withdrawal Regular Premium: After 5 Policy Years

Top-up Premium: After 3 Years

Minimum: Rs. 1000

Maximum: Fund Value should not be less

than 120% of annual premium.

18

Switches 1st 12 switches free of charge in a Policy year

Subsequent switches are charged at Rs.100

per switch is levied.

Minimum switch amount: Rs. 1000

Benefits:

Death Benefit

-Sum Assured will be paid immediately.

-All the future premiums will be paid by Bharti AXA Life in to the policy fund value.

Jumpstart Benefit

The Jumpstart benefit is credited to the investment funds during the policy term

depending upon the policy term option chosen.Policy Term Jumpstart Benefit Credited to investment

Funds

7 years & 10 years 5% of average fund value. At maturity.

15 years 7% of average fund value At maturity.

20 years & 25 years 7% of average fund value. 5 years before maturity

Tax BenefitThe premium paid will be eligible for tax benefit as per Section 80C, 80D and Section 10(10D) of the Income Tax Act, 1961.

Charges:Policy Administration Charges: This charge is deducted by cancellation of units from the policy fund value on monthly basis. The charge is Rs. 60 per month increasing at 5% p.a. on every policy anniversary.

Fund Management Charges:

Fund Name Percent of Policy Fund Value (p.a.) Growth Opportunities Plus 1.35% Grow Money Plus 1.35% Build India 1.35% Save and Grow Money 1.25%Steady Money 1.00%Safe Money 1.00%

19

Allocation Charges:

Regular premium:

Allocation charges for PT

Policy

Term

Policy

Year

Annual premium 7 Years 10 Years 15 Years 20 Years 25 Years

Year 1 >100000 28% 35% 35% 45% 50%

<=100000 25% 32% 32% 36% 50%

Year 2 Both Premium

bands

9% 15% 15% 24% 24%

Year 3 Both Premium

bands

5% 5% 5% 5% 5%

Year 4++ 0% 0% 0% 0% 0%

Surrender Charge:

This charge is as a percentage of fund value.

Policy Term

Policy Year7 Years 10 Years 15 Years 20 Years 25 Years

Years 1 75% 75% 91% 91% 91%

Years 2 50% 50%80%

80% 80%

Years 3 25% 25% 50% 50% 50%

Years 4 0% 0% 25% 25% 25%

Years 0% 0% 10% 10% 10%

Years 0% 0% 0% 0% 0%

If the policy is surrendered before completion of first three policy years, surrender

value will be payable after completion of three policy years.

20

ICICI PRU SMART KID UNIT-LINKED REGULAR PREMIUM

Features:

Entry Age(Last Birthday)Parent: 20 – 60 yearsChild: 0 – 15 years

Policy Term (PT) Parent: 75 years

Child: 19 – 25 years

Premium Payment Term(PPT) 10 -25 years, subject to maximum maturity age of

75 years

Annual Premium Minimum Rs. 10000

Maximum=No Limit


Maximum: 25% of total regular premium paid

Sum Assured (SA) Minimum: 1,00,000 Maximum: 5*Annual premium

Riders Available Waiver of Premium

Accidental Death & Disability

Benefit (ADDB) Rider. Income Benefit(IB) Rider

Premium FrequencyYearly, Half yearly, Quarterly, Monthly

Fund Options R.I.C.H II, Multiplier II, Flexi Growth II, Flexi Balanced II, Balancer II, Protector II, Preserver, Return Guarantee Fund.

Partial Withdrawal Regular Premium: After 5 Policy Years

Top-up Premium: Ant time during PT

Minimum: Rs. 2000

Maximum: 25% of Fund Value

1 PW in a Policy Year

Maximum 5PW during entire PT

21

Switches 1st 4 switches free of charge in a Policy year

Subsequent switches are charged at Rs. 100

per switch

Minimum switch amount: Rs. 2000

Benefits:

Death Benefit:

-Sum Assured will be paid immediately.

-All the future premium will be waived and paid by the company till maturity of the policy.

Maturity Benefit:

Fund value pertaining to Regular Premium and Top-up Premium will be paid at the

time of maturity.

Tax Benefit:

The premium paid will be eligible for tax benefit as per Section 80C, 80D and Section

10(10D) of the Income Tax Act, 1961.

Charges:

Policy Administration Charges:

Policy administration charge will be Rs. 60 per month.


This charge is levied on each of the investment funds and is adjusted daily in the unit price

calculation.

Fund Name Percent of Policy Fund Value (p.a)

Protector II 0.75%per annum

Preserver 0.75%per annum

Balancer II 1.00%per annum

Flexi Balanced II 1.00%per annum

Flexi Growth 1.50%per annum

Multiplier II 1.50%per annum

Return Guarantee 1.50%per annum

22

Allocation Charges:

Regular premium:

Annual

Premium

Year 1 Year 2 – 5 Year 6 – 10 Year 11 Onwards

<20,000 20% 5% 2% 1%

>=20,000 to

<50,000

19% 5% 2% 1%

>=50,000 18% 5% 2% 1%

Top-up Premium:

The allocation charge shall be 1% of top-up premium.

Surrender Charges:

Completed policy years

for which premiums are

paid

Surrender value as a % of

Fund ValueSurrender Charge

Less than 1 year 0% 100%

1 year 25% 75%

2 year 40% 60%

However, this surrender value would be payable only after completion of three policy

years or whenever the policy is surrendered thereafter.

Following are the surrender values and charges applicable after payment of 3 full years of

premium.

No. of completed policy

years

Surrender value Surrender Charge

3 policy years 9 4%

4 policy years 9 2%

5 policy years 1 0%

23

SBI LIFE- UNIT PLUS CHILD PLAN

Features:

Entry Age(Last Birthday) Parent: 18 – 57 years

Child: 0 – 15 years

Policy Term (PT) Min.: 8yrs or (18 – child‘s age at entry)

whichever is higher

Max. : 25 yrs

Premium Payment Term(PPT) 3yrs/ 5yrs/ 7yrs/ Till the child attains 18yrs

Annual Premium Minimum Rs. 84,000; for PPT = 3yrs

Minimum Rs. 60,000; for PPT = 5yrs Minimum Rs.

48,000; for PPT = 7yrs Minimum Rs. 12,000; for

PPT = PT Maximum = No Limit


Maximum: 25% of total regular premium paid.

Sum Assured (SA) Minimum: 5*Annual Premium

Maximum: For age 18 – 40 yrs = 25*AP For age 41

– 50 yrs = 20*AP

For age 51 – 57 yrs = 15*AP

Riders Available Waiver of Premium

Accidental Death & Disability(ADD) Rider

Dhanvantri Supreme (CI) Rider.

Maturity Age Parent: 65 years

Child: 18 - 25 years

Sum Assured (SA) Minimum: 5*Annual Premium

Maximum: For age 18 – 40 yrs = 25*AP For age 41

– 50 yrs = 20*AP

For age 51 – 57 yrs = 15*AP

Fund Options Equity Optimizer Fund, Equity Fund, Bond

Fund, Growth Fund, Balanced Fund.

24

Partial Withdrawal (PW) Regular Premium: After 3 Policy Years Top-up Premium: Any time during PT Minimum: Rs. 2000, Maximum: 25% of Fund value 4 PW are free in a Policy Year Maximum 5 PW during entire PT

Switches 1st 4 switches free of charge in a Policy year Subsequent switches are charged at Rs. 100 per switch. Minimum switch amount: Rs. 10,000.

Benefits:

Death Benefit:

Sum Assured will be paid immediately.

The entire future premium will be waived and paid by the company till maturity of the policy.

Maturity Benefit:

Fund value pertaining to Regular Premium and Top-up Premium will be paid at the time of

maturity.

Loyalty Benefit:

To celebrate the 18th birthday of your child, SBI Life offer loyalty units by way of free

allocation of units based on the average of last 24 months Fund value.

0.15*average last 24 months fund value*No. of policy till age 18

Tax Benefit:

The premium paid will be eligible for tax benefit as per Section 80C, 80D and Section

10(10D) of the Income Tax Act, 1961.

Charges:


Policy administration charge will be Rs.60 per month. This charge will increased by 2% per

annum for each subsequent year on the 1st business day of the policy month following 1st

April each year, subject to maximum of Rs.300 per month.


25

This charge is levied on each of the investment funds and is adjusted daily in the unit price

calculation.

Fund Name Percent of Policy Fund Value (p.a.)

Equity Fund 1.50% per annum

Equity Optimiser Fund 1.50% per annum

Bond Fund 1.00% per annum

Balanced Fund 1.25% per annum

Growth Fund 1.35% per annum

Allocation Charges:

Regular premium:

Annual Premium

Year 1 Year 2 – 3 Year 4 – 7 Year 8 Onwards

Up to 500,000 18% 5% 2% 1%

500,100 to

10,00,000

17% 5% 2% 1%

10,00,000 &

Above

15% 5% 2% 1%

Top-up Premium:


Surrender Charges:

Year 2 3 4 5 6 & Onwards

Surrender

charges

25% 15% 4% 2% Nil

2. PENSION PLANS

26

Bharti AXA Life Dream Life Pension Plus:

Features:

Entry Age Min: 18 years Max: 75 years

Vesting/Maturity Age Min: 40 years Max: 90 years

Policy Term Min: 10 years Max: Vesting age chosen

Annual Premium Min: Rs.12,000 For PT > 20 years Rs.15,000 For PT > 15 years Rs.10,000 For PT< 15 years Rs. 50,000 for Single Premium Max: No Limit

Additional Regular Premium Minimum: Rs.1000 Maximum: No Limit

Top-up Premium Minimum: Rs.1000 Maximum: No Limit

Fund Options Grow Money Pension Plus, Growth Opportunities Pension Plus, Build India Pension Fund, Save and grow Money Pension, Steady Money Pension.

Switches 1st 12 switches free of charge in a Policy year Subsequent switches are charged at Rs. 100 per switch, Minimum switch amount: Rs. 1000.

Benefits:

Death Benefit:

In case of death during the policy term, the nominee will get the entire fund value and the

policy will cease to exist.

Maturity Benefit:

Take up to 1/3rd of the fund value as lump sum and use the balance to purchase an annuity

from Bharti AXA Life.

Buy an annuity from any other life insurance company.

Tax Benefit:

27

Tax benefit will be as per Section 80C/80CCC (1) & Section 10(10A)(3) of the Income Tax

Act, 1961.

Charges:


Policy administration charge will be Rs.60 per month (Rs.35 in case of Single Premium

policies). This charge will increase from 1st Jan every year by 5%.


The charge is levied on each of the investment funds and adjusted in a unit price calculation

on a daily basis.

Fund Name Fund Management Charge (p.a.)

Grow Money Pension Plus 1.35% Growth Opportunities Pension Plus 1.35% Build India Pension Fund 1.35% Save and Grow Money Pension 1.25% Steady Money Pension 1.00% Safe Money Pension 1.00%

Allocation Charges:

Annual Regular Premium:

Annual Regular Premium Band

Year 1 Year 2-4 Year 5+

Rs.12,000 – 99,999 19% 9% 0%

Rs.1,00,000 & above 12% 9% 0%

Single Premium:

Single Premium Band Premium Allocation Charge

Rs.50,000 – 99,999 6%

Rs.1,00,000 & above 2.5%

Top-up Premium:

The allocation charge shall be 2% of top-up premium

Surrender Charge:

28

The surrender charge is applicable as and when customer surrenders his policy. The surrender

value that you will receive will be the policy fund value less this charge. If policy is

surrendered within first three years policy years then the surrender value as on the date of

intimation of surrender will be paid only after completion of three policy years.

Surrender Charge as a Percentage of Policy Fund Value.

Policy Year

Annual Regular Premium Single Premium

1 91% Surrender Not Allowed



4 15% 5%

5 10% 3%

6 NIL 0%

ICICI PRU LIFE TIME SUPER PENSION

29

Features:

Entry Age Min: 18 Years Max: 65 Years


Policy Term (PT) Min: 10 years Max: 57 years

Annual Premium(APE) Min: 10,000 Max: No Limit

Sum Assured(SA) Minimum: 100,000 Maximum: PT*Annual Premium

Top-up Premium Minimum: 2000 Maximum: No Limit

Fund Options Pension R.I.C.H. II, Pension Flexi Growth II, Pension Multiplier II, Pension Flexi Balanced

II, Pension Balancer II, Pension Protector II,

Pension Preserver, Pension Return Guarantee

Switches 1st 4 switches free of charge in a Policy year Subsequent switches are charged at Rs. 100 per switch Minimum switch amount: Rs. 2000

Riders Available Accidental Death & Disability Rider, Waiver of Premium Rider

Benefits:

Death Benefit:

The Nominee will get the higher of sum assured or fund value as lump sum where spouse is

not the nominee.

Where spouse is nominee, this amount can be given as lump sum or can be used to purchase

an annuity from the company. Alternately, 1/3rd of this value can be taken as lump sum and

balance can be used to purchase an annuity.

Maturity Benefit:

30


from ICICI Prudential.

Buy an annuity from any other life insurance company.

Tax Benefit:

Tax benefit will be as per Section 80CCC & Section 10(10A) of the Income Tax Act, 1961.

Charges:


Policy administration charge will be Rs. 40 per month.



on a daily basis.


Pension R.I.C.H. II 1.50% per annum

Pension Flexi Growth II 1.50% per annum

Pension Multiplier II 1.50% per annum

Pension Return Guarantee Fund 1.50% per annum Pension Balancer II 1.00% per annum Pension Preserver 0.75% per annum

Allocation Charges:

Regular premium:

Annual Premium

Year 1 Year 2 Year 3 – 10 Year 11 Onward

10,000-19,999 20% 9% 1% Nil

20,000-49,999 17% 9% 1% Nil

50,000 & above 14% 9% 1% Nil

Top-up Premium:


Surrender Charge:

31

Completed policy years for which premiums

Surrender value as a % of Fund Value

Surrender Charges

Less than 1 year 0% 100%

1 25% 75%

2 40% 60%

However, this surrender value would be payable only after completion of three policy years

or whenever the policy is surrendered thereafter.

Following are the surrender values and charges applicable after payment of 3 full year‘s

premium.

No. of completed policy Surrender Value Surrender Charge 3 policy years 96% 4%

4 policy years 98% 2%

5 policy years & above 100% 0%

32

SBI LIFE UNIT PLUS II PENSION

Features:

Entry Age Min: 18 Years Max: 65 Years


Policy Term (PT) Min: 5 years Max: as per the vesting age chosen

Annual Premium(APE) Min: 24,000 Min: 25,000 for single premium Max: No Limit

Sum Assured(SA) Single Premium Mode Age 18 – 35 125% of SP. MAX: 10

lakh

36 – 45 years Same, MAX: 5 lakh

40 – 60 years Same, MAX: 12 lakh

Regular Premium Mode Age 18 – 35 MAX: 10 lakh

36 – 45 years MAX: 5 lakh

40 – 60 years MAX: 1.2 lakh

Top-up Premium Minimum: 5000 Maximum: No Limit

Fund Options Equity Optimizer, Equity Pension, Bond Pension, Growth Pension, Balanced Pension

Switches 1st 4 switches free of charge in a Policy year Subsequent switches are charged at Rs. 100 per switch Minimum switch amount: Rs. 10,000

Riders Available Accidental Death & Permanent Disability

33

Rider, Dhanvantri Supreme (Critical illness)

Rider

Benefits:

Death Benefit:

The Nominee will get the higher of sum assured or fund value.

Maturity Benefit:


from SBI Life. Buy an annuity from any other life insurance company.

Tax Benefit:

Tax benefit will be as per Section 80CCC (1) of the Income Tax Act, 1961.

Charges:


Policy administration charge will be Rs.60 per month. This charge will increased by 2% per

annum for each subsequent year on the 1st business day of the policy month following 1st

April each year, subject to maximum of Rs.300 per month.



on a daily basis.


Equity Optimizer Fund 1.50% per annum

Equity Pension Fund 1.50% per annum

Bond Pension Fund 1.00% per annum

Growth Pension Fund 1.35% per annum

Balanced Pension Fund 1.25% per annum

Allocation Charges:

34

Regular premium:

Annual Premium

Year 1 Year 2 & 3 Year 4 & 5 Year 6-10 Year 11 Onward

24,000 - 99,999

15% 7.5% 5% 2% Nil

100,000 - 49,999

12% 5% 5% 2% Nil

500,000 & above

9% 3% 3% 2% Nil

Single Premium :

Annual Premium Allocation Charges 25,000-100,000 4%

100,000-500,000 3%

500,000 & above 2%

Top-up Premium:

The allocation charge shall be 1% of top-up premium received during 1st 10 policy years.

11th onward allocation charges will be nil.

Surrender Charge:

The surrender charge is applicable as and when customer surrenders his policy. The

surrender value that you will receive will be the policy fund value less this charge

Policy Year For Regular Premium Mode

For single Premium Mode

Year 4 & 5 2% of F.V. Nil

Year 6-10 1% of F.V. Nil

11 onwards Nil Nil

3. PROTECTION PLANS

35

BHARTI AXA LIFE SECURE CONFIDENT

Features:

Entry Age Minimum: 18 years Maximum: 55 years

Maturity Age Minimum: 28 years Maximum: 65 years

Policy Term (PT) 10 – 30 years

Sum Assured (SA) Minimum: 5 lacs Maximum: Rs.24,99,999

Premium Frequency SingleRegular: Yearly, Half-yearly, Quarterly & Monthly

Riders Available In-Built: No Additional: Accidental Death Benefit, critical illness benefit rider

Benefits:

Death Benefit:

In case of your unfortunate death during the policy term, nominee will receive the full Sum

Assured.

Maturity Benefit:

As this is a purely protection plan (Term Plan), there is no maturity benefit.

Tax Benefit:

Tax Benefits will be as per the Section 80C, 80D & 10(10D) of the Income Tax Act, 1961.

ICICI PRU PURE PROTECT:

36

Features:


Maximum Coverage Age 75 years


Premium Minimum: 2400 per annum

Sum Assured (SA) Maximum: 24,99,999 for Classic Minimum: 25 lacs for Elite Maximum: No Limit

Riders Available In-Built: No Additional: Accidental Death & Disability Benefit Rider, Waiver of Premium Rider

Benefits:

Death Benefit:


Assured.

Maturity Benefit:


Tax Benefit:

Tax Benefit as per section 80C.

SBI LIFE- SHIELD

37

Features:


Maximum Coverage Age 65 years


Sum Assured (SA) Minimum: 3 lakhMaximum: No Limit

Riders Available In-Built: No Additional: Accidental Death & Permanent

Disability Benefit Rider, Premium Waiver

Benefit Rider

Benefits:

Death Benefit:


Assured.

Maturity Benefit:


Tax Benefit:

Tax Benefit as per Section 80C & 10(10D).

OBJECTIVE The main objectives of this study are:-

38

1. To do comparative analysis of the plans of Bharti AXA Life Insurance Company Ltd. with

its competitors.

2. To compare the features offered in various plans.

3. To compare the various charges levied in the plans.

4. To find out a plan that best secures the child‘s future.

5. To find out one best retirement solution and protection plan that protects your life in

cheapest cost.

In an increasingly competitive environment, where insurance companies fight for the same

customers, the companies need to keep the plans as competitive as possible and for that

companies need to keep the charges as low as possible. With this comparative analysis of

different plans charges, benefits and features, we will be able to find out where company is

good as compared to other players in the market and where company can improve.

It will also help the company, customers and other persons involved with the company as

they can compare the plans and find out the details as per the requirement.

METHODOLOGY

39

RESEARCH APPROACHES

Two types of approaches are used during this study:

1. Analytical

2. Descriptive

DATA COLLECTION METHODS

To conduct the Business research, the data is collected by Secondary Data. Secondary data

is one which already exists and is collected from the published sources.

POPULATION:

The following three Insurance companies made the population of this study:

Bharti AXA Life Insurance Co. Ltd

ICICI Prudential Life Insurance Co Ltd

SBI Life Insurance Co Ltd

SAMPLE:

Child Plan, Pension Plan and Term Plan were taken for comparison as samples.

COMPARISON TECHNIQUE

The plans of selected companies were compared based on three important factors:

• Plan features

• Allocation charge

• Policy Administration charges.

Each feature fetches 1 point.

Points Regarding Allocation charges & Policy Administration charges were as follows:

• Least Allocation Charges & Policy Admin. Charges fetched 15 points each.

40

• Next least Allocation Charges & Policy Admin. Charges fetched 10 points each.

• Highest Allocation Charges & Policy Admin. Charges fetched 5 points each.

Then all the points regarding features, allocation charges and policy administration charges

were added to find out the total points collected by the plans of each company.

The plan having highest points is rated 1 and so on.

The Term plan is compared on other basis because there are no allocation charges and no

policy administration charges.

The annual premium is calculated for different age people opting for the same policy term

and same sum assured.

The company offering least annual premium in an age group for the same policy term and

same sum assured is rated 1 and so on.

DATA ANALYSIS

41

COMPARISON OF CHILD PLANS

Product Features Bharti AXA Life Bright Star Plus

ICICI PRU Smart Kid New ULRP

SBI Life- Unit Plus Child Plan

Cover on parent Yes Yes Yes

Cover On Child No No No

WOP Yes Yes Yes

IB Rider Yes Yes No

ADB Rider Yes Yes Yes

CHB Rider Yes Yes Yes

Increase/Decrease Premium

Yes No Yes

Increase/Decrease S.A Yes Yes Yes

Top-up premium Yes Yes Yes

Partial Withdrawal Yes Yes Yes

Cover continuance

option

Yes Yes Yes

Premium Re-direction Yes No Yes

Switches Yes Yes Yes

Systematic Transfer

plan

Yes Yes No

Automatic Asset Allocation

Yes No No

Settlement option Yes Yes Yes

Loyalty Addition Yes No Yes

Free Look Period Yes Yes Yes

Total Points 17 13 14

Comparison of Charges

The charges are compared with the help of examples. Consider

Policy Term: 15 Years

Premium Payment Term: 15 Years

Annual Premium: 15,000/20,000/50,000

Allocation Charges

Year APE: 15,000 APE: 20,000 APE: 50,000

42

Bharti AXA Life Bright Star Plus

ICICI PRU

Smart

Kid

ULRP

SBI Life- Unit Plus

Child

Plan

Bharti AXA Life

Bright Star Plus

ICICI PRU

Smart

Kid

ULRP

SBI Life- Unit Plus

Child

Plan

Bharti AXA Life

Bright Star Plus

ICICI PRU

Smart

Kid

ULRP

SBI Life- Unit Plus Child

Plan

1 5150 3000 2700 6000 3800 3600 16,000 900 9000

2 2250 750 750 3000 1000 1000 7500 250 2500

3 750 750 750 1000 1000 1000 2500 250 2500

4 0 750 300 0 1000 400 0 250 1000

5 0 750 300 0 1000 400 0 250 1000

6 0 300 300 0 400 400 0 100 1000

7 0 300 300 0 400 400 0 100 1000

8 0 300 150 0 400 200 0 100 500

9 0 300 150 0 400 200 0 100 500

10 0 300 150 0 400 200 0 100 500

11 0 150 150 0 200 200 0 500 500

12 0 150 150 0 200 200 0 500 500

13 0 150 150 0 200 200 0 500 500

14 0 150 150 0 200 200 0 500 500

15 0 150 150 0 200 200 0 500 500

Total

charges

8150 8250 6600 10,000 10,800 8800 26,000 26,500 22,000

From the above table, It can infer that in every case the allocation charges are least in SBI

Life Unit Plus Child Plan and highest in ICICI PRU SmartKid Unit Linked Regular

Premium.

Hence rating According to Allocation charges are:

1. SBI Life Unit Plus Child Plan : 15

2. Bharti AXA Life Bright Star Plus : 10

3. ICICI PRU SmartKid Unit Linked Regular Premium : 05


43

Year Bharti AXA Life

Bright Star Plus

ICICI PRU SmartKid ULRP

SBI Life- Unit Plus Child Plan

1 660 720 750

2 693 720 765

3 728 720 780

4 765 720 795

5 803 720 811

6 843 720 828

7 885 720 844

8 929 720 861

9 976 720 878

10 1024 720 896

11 1075 720 914

12 1129 720 932

13 1186 720 951

14 1245 720 970

15 1307 720 990

Total 14,248 10,800 12,965

From the above table, it can infer that Policy Administration charges are least in ICICI PRU

Life SmartKid Unit Linked Regular Premium and highest in Bharti AXA Bright Star Plus.

Hence rating according to the Policy administration charges are:

1. ICICI PRU Life SmartKid Unit Linked Regular Premium: 15

2. SBI Life Unit Plus Child Plan : 10

3. Bharti AXA Life Bright Star Plus : 05

44

Total Points Collected:

Company Features Allocation Charges

Policy Admin. Charges

Total Points

BHARTI AXA LIFE

17 10 05 32

ICICI PRU LIFE 13 05 15 33

SBI LIFE 14 15 10 39

Interpretation:

From the above Column chart, it is clear that Bharti AXA Life Bright Star Plus has got the

least points; ICICI PRU Life SmartKid Unit Linked Regular Premium got the second highest

points. Hence SBI Life Unit Plus Child Plan is the best plan among these three life Insurer.

45

COMPARISON OF PENSION PLANS

Product Features Bharti AXA Life Dream Life Pension Plus

ICICI PRU Life Time Super Pension

SBI Life- Unit Plus II Pension

Option of Life Cover No Yes Yes

WOP No Yes No

ADDB Rider No Yes Yes

Critical Illness Rider No No Yes

Increase RP No No Yes

Additional RP Yes No No

Indexation Yes No No

Top-up premium Yes Yes Yes

Partial Withdrawal Yes No No

Cover continuance option

Yes Yes Yes

Premium Re- direction

Yes No Yes

Switches Yes Yes Yes

Systematic Transfer plan

No No No

Automatic Transfer Strategy

No Yes No

Change of Maturity Date

Yes Yes No

Free Look Period Yes Yes Yes

Open Market Option Yes Yes Yes

Single Premium Yes No Yes

Total Points 11 10 11

Comparison of Charges:

The charges are compared with the help of examples:

Consider

Policy Term: 15 Years

Premium Payment Term: 15 Years

Annual Premium: 15,000/20,000/50,000

Allocation Charges

46

Year APE: 25,000 APE: 50,000 APE: 1,00,000

Bharti AXA Life Dream Life

Pension

Plus

ICICI PRU

Life

time

Super

Pension

SBI Life-

Unit

Plus II

Pension


Pensio

n Plus

ICICI PRU

Life

time

Super

Pension

SBI Life-

Unit

Plus II

Pension


Pension

Plus

ICICI PRU

Life

time

Super

Pension

SBI Life-

Unit

Plus II

Pension

1 4750 4250 3750 9500 7000 7500 19000 14000 13500

2 2250 2250 1875 4500 4500 3750 9000 9000 5000

3 2250 250 1875 4500 500 3750 9000 1000 5000

4 2250 250 1250 4500 500 2500 9000 1000 5000

5 0 250 1250 0 500 2500 0 1000 5000

6 0 250 500 0 500 1000 0 1000 2000

7 0 250 500 0 500 1000 0 1000 2000

8 0 250 500 0 500 1000 0 1000 2000

9 0 250 500 0 500 1000 0 1000 2000

10 0 250 500 0 500 1000 0 1000 2000

11 0 0 0 0 0 0 0 0 0

12 0 0 0 0 0 0 0 0 0

13 0 0 0 0 0 0 0 0 0

14 0 0 0 0 0 0 0 0 0

15 0 0 0 0 0 0 0 0 0

Total

charges

11,500 8,500 12,500 23,000 15,500 25,000 46,000 31,000 47,500

From the above table, it can infer that in every case the allocation charges are least in ICICI

Prudential Life Time Super pension and highest in SBI Life Unit Plus II Pension.

Hence rating According to Allocation charges are:

1. ICICI Prudential Life Time Super pension 15

2. Bharti AXA Life Dream Life Pension Plus 10

3. SBI Life Unit Plus II Pension 05


Year Bharti AXA Life ICICI PRU Life time Super Pension

SBI Life- Unit Plus

47

Dream Life Pension

Plus

II Pension

1 612 480 765

2 643 480 781

3 675 480 796

4 709 480 812

5 744 480 829

6 782 480 845

7 821 480 862

8 862 480 879

9 905 480 897

10 950 480 915

11 998 480 933

12 1047 480 952

13 1100 480 971

14 1155 480 990

15 1213 480 1010

Total 13,216 7,200 13,237

From the above table, it can infer that Policy Administration charges are least in ICICI PRU

Life Time Super Pension and highest in SBI Life- Unit Plus II Pension.

Hence rating according to the Policy administration charges are:

1. ICICI PRU Life Time Super Pension 15

2. Bharti AXA Dream Life Pension Plus 10

3. SBI Life- Unit Plus II Pension 05

Total Points CollectedCompany Allocation

Charges Policy Admin. Charges

Features Total Points

Bharti AXA LIFE 10 10 11 31

ICICI PRU LIFE 15 15 10 40

SBI LIFE 05 05 11 21

48

Interpretation :

From the above column chart, it is clear that ICICI PRU LIFE has got the maximum points &

SBI LIFE has got the minimum points. Hence ICICI PRU Life Time Super Pension is the

best retirement solution among the 3 Insurer.

49

COMPARISON OF TERM PLAN

Term plan can be compared on the basis of premium payable for level covered. Table below

shows the sample of premium payable for Policy Term of 10 years & Sum Assure of 15 lakh

for different companies:

Premium payable for PT=10 Years & SA=1500000 Lakh

Age Bharti AXA Life Secure Confident

ICICI Pru PureProtection

SBI Life- Shield

30 2580 2920 2988

35 3080 3771 3753

40 3960 5373 5237

Interpretation:

From the above data it is clear that Bharti AXA Life Secure Confident provide you the basic

cover level for your life charging the minimum cost among the 3 life Insurer.

50

FINDINGS

The findings from the above study are as follows:

1. Allocation charges of Bharti AXA Life Bright Star Plus Plan are higher than SBI

Life- Unit Plus Child Plan.

2. Policy Administration Charges in Bharti AXA Life Bright Star Plus are very much

higher than other two insurers.

3. There is no option of life cover in Bharti AXA Life Dream Life Pension Plus whereas

ICICI Pru Life and SBI Life provide the option of life cover in their respective

retirement plan.

4. Bharti AXA Dream Life Pension Plus does not have any rider, whereas ICICI Pru

Life and SBI Life provide two Riders in their respective plan.

5. Bharti AXA Dream Life Pension Plus has the option of Additional Regular Premium

and Indexation, which the other two insurers do not provide.

6. Allocation charges and Policy Administration charges in Bharti AXA Life Dream

Life Pension Plus are higher than ICICI Pru Life Time Super Pension but lower than

SBI Life Unit Plus-II Pension Plan.

7. Annual Premium in Bharti AXA Life Secure Confident is lower than the other two

insurers.

8. LIC is more popular among people than any other private insurance company.

9. Bharti AXA Life Insurance is new in market therefore not much recognized in market

among people but due to brand image of Bharti it will soon capture a good market

share.

51

RECOMMENDATIONS

Based upon the above findings, the following recommendations were made:

1. Company should reduce the charges in order to make the products more competitive.

2. Company must reduce the policy administration charges levied in Bharti AXA Life

Dream Life Pension Plus.

3. Company should provide the option of life cover & Rider in Pension Plan as done by the

other 2 Life Insurers.

4. The company should spend on the promotional activities like advertisement in television,

newspapers to create more awareness of the product as they have more recall value.

5. Company needs greater awareness of its product among target audience.

6. Company should use the name of Airtel to create more awareness among people.

7. Company should open more branches in rural area also so as it can target more people

and also promote its products.

52

CONCLUSION

After comparative analysis of the plans of these three companies, it is concluded that charges

are varying significantly between companies. Policy Administration Charges by Bharti AXA

Life Insurance and SBI Life Insurance Companies are more than charges levied by ICICI

Prudential Life Insurance Company.

Hence among Pension Plans, ICICI Prudential Life Time Super Pension Plan is the best plan

among these three life insurers. Whereas for Child Plan, SBI Life- Unit Plus Child Plan is the

best plan among these three companies. Bharti AXA Life Insurance Provides the cheapest

term among these three life insurers.

53

REFERENCES

http://www.bharti-axalife.com/products/default.asp

http://www.bharti-axalife.com/about/default.asp

http://connect.in.com/bharti-axa-life-insurance-company-ltd/profile-517249.html

http://www.irdaindia.org/

http://www.investopedia.com/dictionary/default.asp

http://www.bharti-axalife.com/public_disclosures.asp

http://www.sbilife.co.in/sbilife/content/home

http://www.iciciprulife.com/public/Life-plans/Pure-Protection-Plans.htm

54

Contact Details:

Name: Lokesh Chander R

Mobile: +919739459169

e-mail: [email protected]

55

comparative analysis of life insurance products report final (1)

Documents

icici pru

general insurance

unit price

income tax

general insurance

policy administration

sbi life insurance

full sum assured