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PROJECT REPORT

OnComparative study of HDFC

Standard Life Insurance Company

product with the market player in

the same domain.

At

HDFC standard life insurance company limited

A R E P O R T S U B M I T T E D IN FUL F I L L M ENT O F T H E R E Q U I R E M E N T S O F P G D M ( M A R KET IG ) P R O G R A M O F I N J B U S I N E S S

SCH O O L G R EA TER NO IDA

Submitted to: Submitted by:ARUN

KUMARINJ BUSINESS SCHOOL Roll No.09BM07Greater Noida Batch: -2009-2011

I N J BUSINESS SCHOOL,Greater Noida



CERTIFICATE

This is to certify that the project work done on “ Comparative study of

HDFC Standard Life Insurance Company product with market player

in the same domain” Submitted to I N J Business school, Greater Noida isin partial fulfillment of the requirement for the award of Post Graduate

Diploma in Management is a bona fide work carried out by me at HDFC

Insurance Company Limited Greater Noida.

DATE: ARUN KUMAR GUPTA

PLACE: ROLL NO. 09BM07

PGDM 2009-2011

I N J BUSINESS SCHOOL,Greater Noida



PREFACE

“The Companies that best satisfy their customer will be the winners. It is the special

responsibility of marketers to understand the need and wants of the market place and to

help their companies not merely looking for sales they are investing in long term,

mutually satisfying customer relationships based on delivery quality, service and value.”

Philip Kotlar

Summer Training is a necessary part for fulfillment of PGDM course. The

Summer Training has given a chance to try and apply the academic

knowledge into the Business Environment and gain insight of Corporate

Culture.

1INJ BUSINESS SCHOOL

Greater Noida



ACKNOWLEDGEMENT

I would like to convey my heartiest gratitude to several people, for their support and guidance which helped me complete mySummer Internship.

First and foremost I would like to thank HDFC Standard Life Insurance

Co. Ltd., Greater Noida Branch for giving me an opportunity to do myinternship in their esteemed organization.

My special appreciation extends to Mr. Rahul Mishra (Branch Sales

Manager), Mr. Vivek choudhary (Sales Development Manager) and

Mr. Sanjeev Kalra (F.C.Trainer) of HDFC SLIC Greater Noida for their constant encouragement through out this period.

I would also like to thank our Campus placement coordinator,Prof .Vaibhav Gupta. And Project guide Prof. Meenu Dutt for their guidance and unflinching support through out the phases of my internship.

My special thanks to my classmates and dear friends, Mr. Shashi

Mahto, Mr. Rahul singh, Miss.Preeti Kaushik and Mr.Sakur Ansari for their support through out my internship. With their help I could complete mywork efficiently and effectively. Last but not the least, my endless

appreciation goes to my family who has stood by my side and given memoral support whenever I was low and boosted my will power.

Thank You.

ARUN KUMAR GUPTA

PGDMBATCH-2009-2011GREATER NOIDA

CONTENTS


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Chapter page no.

1. INTRODUCTION 4

2. EXECUTIVE SUMMARY 5

3. OBJECTIVE OF THE STUDY 6

4. INTRODUCTION OF INSURANCE 7-8

5. FUNCTIONS OF INSURANCE 9-11

6. INDUSTRY PROFILE 11

7. COMPANY PROFILE 12-20

8. DEPARTMENT OVERVIEW 21-22

9. SOME TERMS ABOUT ULIP PLANS 23-24

10. PRODUCT PROFILE 24-42

11. TAXATION BENEFIT 43

12. MARKET SHARE 44

13. COMPARATIVE STUDY OF DIFFERENT FIRMS 45-57

14. RESEARCH METHODOLOGY 58

15. CONCLUSION & SUGGESTION 59-60

16. BIBILOGRAPHY 61

INTRODUCTION


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The project started with class room sessions involving lectures andinteractions with the mentors Mr. Parvej Aalam (SDM) and Mr. Rahul

Mishra (B.M.). They explained all the plans available with HDFC SLIC indetail and plans of other company’s (BIRLA SUN LIFE, BAJAJ ALLIANZ& LIC).The classroom also involved role plays and games. The role plays and gamesinvolved students being asked to play the roles of customers or clients andthat of a person trying to persuade the customer to go in for a plan withHDFCSLIC.These class room lectures and role-plays helped me to gain a substantialunderstanding of the plans. This in turn helped me to effectively explainthese plans to people whom I meet or took appointment to meet. The connectof life insurance has undergone several changes over the years and what hasmyriad array of attractive options apart from the basic of life cover. Lifeinsurance schemes also offer tax benefits. In today’s scenario life Insurancesolves the three objectives.

1. Security

2. Saving

3. Tax Benefit.

EXECUTIVE SUMMARY

.


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This project is based upon the fact & figure gathered from the websites about

the plans of the firm. In the first part of the report there are some plans whichare frequently sold by HDFC SLIC in the market, and then comparativestudy of pension plan of different firm namely BIRLA SUN LIFE, BAJAJALLIANZ and LIC and Comparison of Children’s plans .There In the last part of the project I have given some of the findings andconclusion about the life insurance market and what is the potential of themarket. In the end I have give all the sources from which I have collected allthe information.


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OBJECTIVE OF STUDY

1. Comparative study of HDFC Standard Life Insurance Company

product with the market player in the same domain.

2. To analyze the insurance plans on the basis of features offered.

3. To observe working of various departments of the organization

4. To know the position of the hdfc slic product in the market.

INTRODUCTION OF INSURANCE


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WHAT IS INSURANCE?

The business of insurance is related to the protection of the economic valuesof assets. Every asset has a value. The asset would have been created through

the efforts of the owner. The asset is valuable to the owner, because heexpects to get some benefit may be an income or in some other form. It is a

benefit because it meets some of his needs. The benefit may be an income or in some other form. In the case of a factory or a cow, the product generated

by it is sold and income is generated. In the case of a motor car, it providescomfort and convenience in transportation. There is no direct income. Bothare assets and provide benefits. Every asset is expected to last for a certain

period of time during which it will period of time during which it will provide the benefits. After that, the benefit may not be available. There is alife-time for a machine in a factory or a cow or a motor car. None of themwill last forever. The owner is aware of this and he can so manage his affairsthat by the end of that period or lifetime, a substitute is made available. Thus,he makes sure that the benefit is not lost. However, the asset may get lostearlier. An accident or some other unfortunate event may destroy it or makeit incapable of giving the benefits. We can classify insurance in these terms:-It is a system by which the losses suffered by a few are spread over many,exposed to similar risks. Insurance is a protection against financial lossarising on the happening of an unexpected event. It is essential that: Thecalamity is either natural or unexpected The insured person does not gain out

of this arrangement..

SCOPE OF INSURANCE

We all know that assets are insured, because they are likely to be destroyedor made nonfunctional before the expected life time, through accidentoccurrences. Such possible occurrences are called perils. Perils are theevents. Risks are the consequential losses or damages. The risk to an owner of a building may be a few lakhs or a few crores of rupees, depending on thecost of building, the contents in it and the extent of damage. The risk onlymeans that there is a possibility of loss or damage. Insurance is done againstthe possibility that the damage may happen. There has to be an uncertaintyabout the risk. The word “possibility” implies uncertainty. Insurance isrelevant only if there are uncertainties. Insurance does not protect the asset.


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It does not prevent its loss due to the peril. The peril cannot be avoidedthrough insurance.The risk can sometimes be avoided, through better safetyand damage control measures. It only tries to reduce the impact of the risk on

the owner of the asset and those who depend on that asset. They are the oneswho benefit from the asset and therefore, would lose, when the asset isdamaged. Insurance compensates for the losses- and that too, not fully. Inconclusion we can say that the scope of insurance is very broad and specific

because it reduces the losses and risk of owner of the assets due to perils. Italso gives supports to the person in the period of adverse situation. It insuredeconomic consequences. When a person saves, the amount of funds availableat any time is equal to the amount of money set aside in past, plus interest.Insurance has no substitute and one more thing about the insurance is thatthis is not similar to a hire purchase scheme. In the event of death, the

balance installments are not excused. They have to be paid by the survivingfamily. There is a tax benefits, both in income tax and in capital gains.Marketability and liquidity are better. Life insurance is not only the best

possible way for family protection there is no other way. The term of life ishard but the terms of insurance are easy.

Objective of the insurance

When we talk about objective of the insurance sector we can divide it into

three categories which are thus. Broad Increased coverage of the populationCustomer has a wider choice & range of products Service standards tocustomer Economic Savings mobilization in this objective part the first partdeals with its market share because it deals with all people who live in Indiaand it has a broad market potential. So the main motto is to increase andentice more and more people for insurance. In the second part it deals withinnovative plans and schemes for the wider choice of people and differentrange of products of its competitors. It tries to serve its customer withsignificant way.

Functions of Insurance


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The functions of Insurance can be bifurcated into three parts:

1. Primary Functions

2. Secondary Functions

3. Other Functions

The primary functions of insurance include the following:

1) Provide Protection - The primary function of insurance is to provide protection against future risk, accidents and uncertainty.Insurance cannot check the happening of the risk, but cancertainly provide for the losses of risk. Insurance is actually a

protection against economic loss, by sharing the risk withothers.

2) Collective bearing of risk - Insurance is a device to share thefinancial loss of few among many others. Insurance is a mean

by which few losses are shared among larger number of people.All the insured contribute the premiums towards a fund and outof which the persons exposed to a particular risk is paid.

3) Assessment of risk - Insurance determines the probable volumeof risk by evaluating various factors that give rise to risk. Risk is the basis fo determining the premium rate also

4) Provide Certainty - Insurance is a device, which helps to changefrom uncertainty to certainty. Insurance is device whereby theuncertain risks may be made more certain.

The secondary functions of insurance include the following:

1) Prevention of Losses - Insurance cautions individuals and businessmento adopt suitable device to prevent unfortunate consequences of risk byobserving safety instructions; installation of automatic sparkler or


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alarm systems, etc. Prevention of losses causes lesser payment to theassured by the insurer and this will encourage for more savings by wayof premium. Reduced rate of premiums stimulate for more business

and better protection to the insured.

2) Small capital to cover larger risks - Insurance relieves the businessmenfrom security investments, by paying small amount of premiumagainst larger risks and uncertainty.

3) Contributes towards the development of larger industries Insurance provides development opportunity to those larger industries havingmore risks in their setting up. Even the financial institutions may be

prepared to give credit to sick industrial units which have insured their assets including plant and machinery.

The other functions of insurance include the following:

1) Means of savings and investment - Insurance serves as savings andinvestment, insurance is a compulsory way of savings and it restrictsthe unnecessary expenses by the insured's For the purpose of availingincome-tax exemptions also, people invest in insurance.

2) Source of earning foreign exchange - Insurance is an international

business. The country can earn foreign exchange by way of issue of marine insurance policies and various other ways.

3) Risk Free trade - Insurance promotes exports insurance, which makesthe foreign trade risk free with the help of different types of policiesunder marine insurance cover


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INDUSTRY PROFILE

INSURANCE:Insurance can be defined as assurance for uncertainty. Insurance is aboutsomething going wrong. Its’ often about things going right.; One of theWonders of human nature is that we never believe anything can actually gowrong. The insurance sector in India has come a full circle from being anopen competitive market to nationalization and back to liberalized marketagain. Tracking the development in Indian insurance sector reveals the 360degree turn witnessed over a period of almost two centuries. The business of life insurance in Indian in its existing form started in India in the year 1818with the establishment of Oriental Life. Insurance Company in Calcutta.

Some of the important milestones in life insurance business in India are.1912: The Indian Life insurance Companies Act enacted as first statue toregulate the life insurance business.1928: The Indian Insurance Compan9es Act enacted to enable thegovernment to collect statistical information about life and non-life insurance

businesses.1938: Earlier legislation consolidated and amended to by the insurance Actwith the objective of protecting the interests of the insuring public.1965: 245 Indian and foreign insurers and provident societies take over by

the central government and nationalized. LIC formed by an act of parliamentviz. LIC. Act. 1956, with a capital contribution of Rs. 5 Crore from thegovernment of India.

INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY

Reforms in the Insurance sector were initiated with the passes of the IRDABill in Parliament in December 1999. The IRDA since its incorporation as astatutory body in April 2000 has fastidiously such to its schedule of framing

regulations and registering the private sector insurance companies. The other d4ecisoin taken simultaneously to provide the supporting systems to theinsurance sector and in particular the life insurance companies was thelaunch of the IRDA online service for issue and renewal of licenses toagents.

COMPANY PROFILE


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HDFC Standard Life Insurance Company Ltd

HDFC Standard Life Insurance Co. Ltd was incorporated on 14th august2000. It is a joint venture between Housing Development FinanceCorporation Limited (HDFC Ltd.) India And UK based Standard LifeCompany. Both the joint venture partners being one of the leaders in their respective areas came together in this 81.4:18.6 joint venture to form HDFCStandard Life Insurance Company Limited. Mr. Deepak Satwalekar is theMD and CEO of the venture .HDFC Standard Life brings to you a whole

range of insurance Solutions is it group or individual or NAV services for Corporations, they can be easily customized as per specific needs. HDFCStandard Life Insurance India boasts of covering around 8.7 lakh lives byMarch'2007. The gross incomes standing at a whopping Rs. 2, 856 crores,HDFC Standard Life Insurance Corporation is sure to become one of theleaders and the first preference for any life insurance customer.

HDFC LIMITED

HDFC was incorporated in 1977 with the primary objective of meeting asocial need – that of promoting home ownership by providing long-termfinance to households for their housing needs. HDFC was promoted with aninitial share capital of Rs. 100 million.Business Objectives:-

The primary objective of HDFC is to enhance residential housing stock in the

country through the provision of housing finance in a systematic and professional manner, and to promote home ownership. Another objective isto increase the flow of resources to the housing sector by integrating thehousing finance sector with the overall domestic financial markets.


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STANDARD LIFEStandard Life is Europe’s largest mutual life assurance company. StandardLife, which has been in the life insurance business for the past 175 years is amodern company surviving quite a few changes since selling its first policyin 1825. The company expanded in the 19 th century from kits originalEdinburgh premises, opening offices in other towns and acquitting other similar businesses. Standard Life Currently has assets exceeding over £ 70

billion under its management and has the distinction of being accorded“AAA” rating consequently for the six years by Standard and Poor.

SNAPSHOT

· Founded in 1875, company supporting generation for last 179 years.· Currently over 5 million Policy holders benefiting from the servicesoffered.· Europe’s largest mutual life insurer.

JOINT VENTURE

HDFC STANDARD LIFE

MISSION:-

HDFC Standard Life aims to be the top new life insurance company in the

market. This does not just mean being the largest or the most productivecompany in the market, rather it is a combination of several things like: Customer service of the highest order, Value for money for customers,

Professionalism in carrying out business, Innovative products to cater to different needs of different customers,


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Use of technology to improve service standard, Increase the market share.

VALUES:-

1. SECURITY: Providing long term financial security to its policy holderswill be the company’s constant endeavor. It will do this by offering lifeinsurance and pension products.

2. TRUST: HDFC Standard Life appreciates the trust placed by its policyholders in it. Hence, it will aim to manage their investments very carefullyand live up to this trust.

3. INNOVATION: Recognizing the different needs of its customers, it will be offering a range of innovative products to meet these needs. Thecompany’s mission is to be the best new life insurance company in Indiathese are the value that will guide it in this.

Values:-1. Security: Providing long term financial security to its policy

holders will be the company’s constant endeavor. It will do

this by offering life insurance and pension products.2. Trust: HDFC Standard Life appreciates the trust placed by its

policy holder in it. Hence, it will aim to manage their

investments very carefully and live up to this trust.

3. Innovation: Recognizing the different needs of its customers,

it will be offering a range of innovative products to meet

these needs. The company’s mission is to be the best new life

insurance company in India and these are the values that will

guide it in this.

FINANCE DEPARTMENT AT HDFC STANDARD LIFE


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The finance department of HDFC Standard Life Insurance is headed by theGeneral Manager (Finance), who reports to the MD and CEO. There are four

other departments under the Finance Departments. These are:1. Accounts Department2. Actuary Department3. Investment Department4. Underwriting DepartmentThe Accounts Department:

The Accounts Department functions like any other Accounts department. Itis concerned with the disbursement of salaries, reimbursements, incentives,commissions to agents. It also handles the payments due to other agencieswith which the Company interacts, viz. event management companies etc.The work of an Accounts department assumes much importance in aninsurance company because it has to be able to pay the claims arising time totime.The Actuary Department:

The Actuary Department is the “Pricing Department” of an insurancecompany. It must be understood that the basic premise on which theinsurance companies work is “use the corpus of policy holders for

disbursement for any claim”. Based on this principle, this department decidesthe amount of premium to be charged from a client for a particular policy.This is normally done with the help of Mortality Tables, which can either be

prepared by the company itself, or the company can use the existing tablesavailable for its use. The IRDA (Insurance Regulation DevelopmentAuthority) has prescribed the use of the mortality tables used by LIC for allother companies.The Actuary Department is also responsible for Asset-Liability Managementof the insurance company. It must ensure that the Solvency margin (Assets-Liabilities) must be at least Rs 50 crores, as prescribed by IRDA. 95% of thesurplus above this has to be distributed to the investors a bonus. HDFCStandard Life has till now declared three bonuses to its policyholders

The Investment Department:The Investment Department is responsible for the investment of the moneyof the investors. Since the basic reason for the investors investing their


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money in Life Insurance is security, IRDA has put certain regulations onsuch companies for investments so that the money of investors is safe.

These guidelines are:1. Not less than 50% of the corpus will be invested in Government Securities(G-Sec)2. Up to15% of the corpus will be invested in infrastructure, social and ruralsectors.3. Not less than 20% can be invested in government and other equities.4. Remaining 15% can be invested in “unapproved” equities. Till recent time,HDFC has not been investing in equities. But now it has decided to followthe footsteps of its Joint-Venture partner Standard Life, which invests around75% of its corpus in equities. The Investment Department is also responsiblefor calculating the returns of the investment to the investors. Here also theinsurance companies are bound by regulations and guidelines. According toIRDA, the returns have to be in the range of 6 %-9 %.

The Underwriting Department

This department is responsible for taking the decision on whether to insure a person or not. For this it must take into account the risk premium associated,the reinsurance opportunities etc. normally, there are charts available withthe people of this department on the basis of which they can come to a viable

decision.Underwriting is done on the basis of two grounds:

1. Financial Grounds: here the underwriters decide on the worth of the person by taking into account his tax returns of the last three years. Onthis basis they are able to assess the premium paying ability of that

person and accordingly take a decision.

2. Medical Grounds: each new customer is required to undergocomprehensive medical test, which determines the person’s generalhealth. On the basis of this report, the underwriters decide upon the

premium to be charged from customer.


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SOME TERMS ABOUT ULIP PLANS

Fund Management

The crux of the entire product is the returns that this product can generateand this is dictated by the management of the fund. There is no great value indoing well in all other aspects of the product delivery if the fund does not

perform well. The insurance company has two options with regards to themanagement of the fund i.e. external and internal. External funds usually behaving an in-house investment team and this could be extended tomanagement of the funds too. The expenses and hence the cost should bekept in mind as by nature the unit linked insurance product is a verytransparent product and hence this would become a significant selling pointin the long run.

Charges and Expenses

There are different charges that can be levied by the insurance companies,some of the more common ones are:1) Initial charges2) Annual charges3) Investment charges4) Morality charges5) Surrender charges

Initial charges

Initial charges are applied at the time of setting up the policy; this could be inthe form of a bind offer spread and also in the form of allocation of unitsknown as the allocation factor. It is also possible to be levying a per member level charge.

Annual charges

The annual charges can either be fixed or can be linked to the size of thefund. It could also be linked to the number of members in the scheme. Thischarge is usually taken to cover the maintenance expenses of the insurer.

Investment charges


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A fund management charge is levied to take care of the fund managementexpenses depending upon whether the fund is managed internally or externally.

Mortality charges

It is possible to have an insurance element built into the super annotationscontract and in case of a gratuity there would be an element of insurance thedegree and the form could differ from company to company. The insurance

premium can be taken as a part of the gratuity contract of it can beadministered outside this but packaged to look as if it is a whole some

product offering gratuity and insurance to the employees of the organization.

Surrender Charges

The surrender charges can be used in multiple ways. It could be used as away of recouping the initial outlay of the insurer in case the company decidesto withdraw in the early years of the contract or it could be used as adeterrent for the company to shift the service provider at any point of thecontract. Usually the surrender charges/ penalty would decrease over a

period of time and would be expressed as a percentage of the fund.

Administration

The unit –linked policies are significantly complex to administer and also

would need a very highly technically trained customer service department tohandle enquiries. Much of the administer the policy, As the allocation of units would be time dependent it is extremely important to have a very robustsystem that can take care of allocation, de allocation and reallocation of units. It is essential to have a system that would be able to talk/ interact withother systems to capture the unit price details, to give outputs to accounting

packages, report generators etc.

INDIVIDUAL PRODUCTS:


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Each of us leads a unique life and so has unique needs. HDFC StandardLife offers a range of products and invites you to choose the one that suitsyou best.

PLAN BENEFITSavings Plans

Endowment Assurance Plan Life Insurance with Savings

Unit Linked Endowment Plan Life Insurance & Savings withchoice of investments funds

Children’s plan Financial Security for your child

Money Back Plan Financial Security for your childwith choice of investment funds

Unit Linked Young Star Plan Life Insurance with Savings

Investment Plans

Single Premium Whole of LifePlan

Investment with Life Insurance

Protection Plans

Term Assurance Plan Life Insurance Customized for

home loansLoan cover term Assurance Plan Life Insurance at an affordable price

Retirement Plans

Personal Pension Plan Savings for retirement

Unit Linked Pension Plan Retirement Savings with achoice of investment funds

Endowment Assurance Plan


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Endowment assurance plan is a participating (with profits) insurance planthat offers the following features: Provides financial support to the family byway of a lump sum payment in case of the unfortunate death of the life

assured within the term of the policy. Provides a lump sum payment to thelife assured on survival up to maturity this plan is with profits saving planand is well suited for saving money for your long term financial goals. This

plan also helps provide for the needs of your family in your absence by paying out a lump sum in the event of your unfortunate death during the termof the policy.Optional benefits

You can add the following optional benefits to customize your policy to suityour needs: Critical Illness (CI) Benefit provides an amount, equal to the sum assuredchosen under this optional benefit, on diagnosis of any one of the 6 commoncritical illnesses(1). The sum assured is payable if you survive for 30 daysafter the date of the claim. Once such a claim has been met, no further Critical Illness Benefit is payable. However, your basic policy continueseven after we pay a claim on this benefit.

Additional Term Benefit (ATB) provides an additional amount equal tothe sum assured chosen under this optional benefit, in case of your unfortunate death.

Accidental Death Benefit (ADB) provides an additional amount, equal tothe sum assured chosen under this optional benefit, in case of your unfortunate death : - due to an accident and within 60 days of an accident.

Waiver Of Premium (WOP) Benefit waives the premium for you in caseyou become totally disabled. The waiver is applicable during the period of total disability. This plan can be taken on a single life basis or a joint life(first claim) basis.

Eligibility

This plan can be taken as a single life basis or a joint life (first claim) basis.The eligibility ages are as follows:


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BasicPolicy

Basic Policy with optional benefits

CI ATB ADB WOP

Min age of entry 12 18 18 18 18

Max age of entry 60 55 60 55 50

Max age of expiry

75 70 75 65 60

Minimum term: 10 years Maximum term: 30 years

Tax Benefits

Tax benefits described in Section 88, Section 80D and Section 10 (10D) of

the income Tax Act are applicable. Applicable to premium paid for CI andWOPPayment options

You have the choice of paying your premium either in yearly, half yearly or quarterly modes, depending on your convenience.


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Unit Linked Endowment Plan:

The unit linked endowment plan is an insurance policy that is designed to pay a lump sum on maturity or on earlier death. The Unit Linked EndowmentPlan also gives the option of additional protection against the six commoncritical illnesses, as well as additional protection if death is as the result of anaccident. Your premiums are invested in units of the investment fund of your choice, based on the prevailing unit price. On maturity you receive the valueof your units. On death (or critical illness, if chosen) you receive the greater of the value of your units and your selected basic sum assured.

Premiums

Premiums can be paid either quarterly, half-yearly or annually, throughoutthe term of the policy. The minimum premium amount is Rs. 10,000 eachyear. Premiums can be paid by cash, cheque or demand draft.

Benefits

There are 4 different options available to choose from:

1. Life Option

On death within the policy term, the greater of the Sum Assured and the

value of the unit-linked fund will be paid to your nominee. On survival to theend of the policy term the value of the unit linked fund will be paid to you.

2. Life and Health Option

On death or earlier diagnosis of any one of six common critical illnesseswithin the policy term, the greater of the Sum Assured and the value of theunit-linked fund will be paid to your nominee. On survival to the end of the

policy term the value of the unit-linked fund will be paid to you.“The illnesses covered under this option are cancer, coronary artery by

pass graft surgery, heart attack, kidney failure, major organ transplant

(as recipient) and stroke”.

3. Extra Life Option


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This option pays the same benefits as the Life Option but, should death occur within the policy term as the result of an accident, an extra benefit equal tothe Sum Assured will be paid.

4. Extra Life and Health Option

This option pays the same benefits as the Life and Health Option but, shoulddeath occur within the policy term as the result of an accident, an extra

benefit equal to the Sum Assured will be paid.

Levels of protection

Depending on your age at entry, you may choose between 3 levels of cover – Low, Medium or High. For each level the Sum Assured is based on theamount of premium you pay each year. The Sum Assured can not be changedduring the term of the contract.

Age at entry Levels of cover

Low Medium High

18 to 40 5Xpremium 10XPremium 20Xpremium

41 to 50 5Xpremium 10XPremium

Over 51 5Xpremium

Eligibility

The age and term limits for taking out a Unit Linked EndowmentPlan are: (Years)


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Minimum

term

Maximum

term

Minimumage atentry

Maximumage atentry

Maximumage atexpiry

Life 10 10 30 18 60 75

Life andhealth

10 30 18 55 65

Extra life 10 30 18 55 70

Extra life

andhealth 10 30 18 55 65

The alteration of premium, surrendering of the policy, conditions on stoppingof payment of premiums and charges are the same as that of the unit linked

pensions plan.

Tax Benefits

Tax benefits under section 88 and section 10 (10D) of the income tax act areapplicable.

Surrendering the policy

The policyholder can surrender the policy at any point of time during thecontract term. The amount payable will be the unitized fund value after applying additional surrender charges mentioned below.

Accessing money?

You can make lump sum withdrawals from you funds provided the fund balance after withdrawal and charges does not fall below the Sum Assured.

The minimum withdrawal amount is Rs. 10,000.


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Children's Plan

Children’s Plan is designed to provide a lump sum to the child at maturity. It

also provides financial security to the child in the future even in case of theinsured parent’s unfortunate death during the policy term. Children’s Planreceives simple reversionary bonuses which are usually added annually. Thisis a flexible plan with three options for you to choose from, depending onyour requirements. The details of these options are explained in the nextsection.Options

You will have the choice of 3 options at the start of the policy.

Option On the death of theinsured parent

during the policy

term

On maturity

Maturity BenefitPlan

Future premiumwaived and the

policy continues tillmaturity.

Accelerated BenefitPlan

Sum assured+ bonuses paid and the policy stops.

On the survival of the insured parent tothe maturity date,sum assured+

bonuses paid.

Double Benefit Plan Sum assured paid,future premiumswaived, and the

policy continues till

maturity.

Sum assured+Bonuses paid.


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Tax Benefits

The premiums you pay will be eligible for tax relief under Section 88 of theIncome Tax Act, 1961. The benefits received under the policy are eligible for tax relief under Section 100 (10D) of the income tax act, 1961.

Eligibility

The eligibility ages for the life assured under the plan are as follows:

Minimum age of entry 18 years

Maximum age of entry 60 yearsMaximum age of maturity 75 years

Term of policy

Min. Term: 10 years Max. Term: 25 years

Payment options

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

quarterly modes, depending on your convenience.


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Unit Linked Young Star Plan

HDFC Unit Linked Young Star Plan is designed to provide a lump sum tothe child at maturity. It also provides financial security to the child in thefuture, even in case of the insured parent's unfortunate death during the

policy term. The Unit Linked Young Star Plan also gives the option of additional protection against the six common critical illnesses. Your

premiums are invested in units of the investment funds of your choice, basedon the prevailing unit prices. On maturity the value of the units will be paid.On death (or critical illness, if chosen) the selected basic sum assured is paid,and the policy continues until maturity. Following a valid death or criticalillness claim, we will pay the future premiums (at the level originally chosenat inception) into your policy, as and when they would have fallen due.Premiums

You agree to pay a level premium regularly, either quarterly, half yearly or annually, throughout the term of the policy. The minimum premium amountis Rs. 10,000 each year. Premiums can be paid by cash, cheque or demanddraft.

Benefits

There are 2 different options available:

1. Life Option

This option consists of a Maturity Benefit and a Death Benefit. The MaturityBenefit will pay the value of the unit-linked fund at the end of the policyterm.

The Death Benefit will pay the basic Sum Assured on death of the lifeassured during the policy term. Following payment of this benefit, no further

premiums are due from the policyholder. Following a valid death claim, wewill pay future premiums on your behalf, as and when they become due. Thelevel of premium will be that chosen by you at inception of the policy.

2. Life and Health Option:-


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This option consists of a Maturity Benefit, a Death Benefit and an ExtraHealth Benefit. The Maturity Benefit will pay the value of the unit-linkedfund at the end of the policy term. The Death Benefit will pay the basic Sum

Assured on death of the life assured during the policy term. Following payment of this benefit, no further premiums are due from the policyholder and the Extra Health Benefit will lapse without value. The Extra HealthBenefit will pay the basic sum assured on diagnosis of any one of six criticalillnesses during the policy term. Following payment of this benefit, nofurther premiums are due from the policyholder and the Death Benefit willlapse without value. The illnesses covered under this benefit are cancer,coronary artery by pass graft surgery, heart attack, kidney failure, major organ transplant (as recipient) and stroke. Following a valid death or criticalillness claim, we will pay future premiums on your behalf, as and when they

become due. The level of premium will be that chosen by you at inception of the policy.

Eligibility

The age and term limits for taking out a Unit Linked Young Star Plan are:

Minimum

term

Maximum

term

Minimum

age at

entry

Maximum

age at

entry

Maximum

age at

expiry

Life

Option

10 25 18 60 75

Life

and

Health

Option

10 25 18 55 65

Surrendering the policy


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The policyholder can surrender the policy at any point of time during thecontract term. The amount payable will be the unitized fund value after applying additional surrender charges mentioned below.

Accessing money

You can make lump sum withdrawals from you funds provided the fund balance after withdrawal and charges does not fall below Rs. 15,000. Theminimum withdrawal amount is Rs. 10,000.

Children's Plan

Children’s Plan is designed to provide a lump sum to the child at maturity. Italso provides financial security to the child in the future, even in case of theinsured parent’s unfortunate death during the policy term. Children’s Planreceives simple reversionary bonuses, which are usually added annually.This is a flexible plan with three options for you to choose from, dependingon your requirements. The details of these options are explained in the nextsection.Options

You will have the choice of 3 options at the start of the policy.

Option On the death of the

insured parent

during the policy

term

On maturity

Maturity BenefitPlan

Future premiumwaived and the


Accelerated BenefitPlan

Sum assured+ bonuses paid and the

policy stops.

On the survival of the insured parent to

the maturity date,sum assured +

bonuses paid.

Double Benefit Plan Sum assured paid,future premiumswaived, and the

Sum assured+Bonuses paid.


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Tax Benefits

The premiums you pay will be eligible for tax relief under Section 88 of theIncome Tax Act, 1961. The benefits received under the policy are eligible for tax relief under Section 100 (10D) of the income tax act, 1961.Eligibility

The eligibility ages for the life assured under the plan are as follows:

Minimum age of entry 18 years

Maximum age of entry 60 yearsMaximum age of maturity 75 years

Term of policyMin. Term: 10 years Max. Term:25 years

Payment options You have the choice of paying the premium either in yearly,

half yearly or quarterly modes, depending on yourconvenience.


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Money Back Plan

It is a participating (with profits) insurance plan that offers the followingfeatures:Payment of cash lump sum, each of which is a proportion of the basic sumassured, at 5-year intervals during the term of the policy. (Please refer to thetable given below.)on survival up to maturity, a payment equal to the basic sum assured plusany bonus additions less the cash lump sums paid earlier is provided.In case of the unfortunate death of the life assured within the term of the

policy, the basic sum assured plus any bonus additions is provided. This isover and above the earlier payouts. This plan helps you plan for futureanticipated expenses by paying periodic cash lump sum to you at regular intervals. This plan also helps provide for the needs of your family in your absence by paying them the basic sum assured plus any bonus additions inthe event of your unfortunate death during the term of the policy.Benefits

You can add the following optional benefits to customize your policy to suityour needs:

Critical Illness (CI) Benefit provides an amount, equal to the sum assured

chosen under this optional benefit, on diagnosis of any one of the 6 commoncritical illnesses. The sum assured is payable if you survive for 30 days after the date of the claim. Once such a claim has been met, no further CriticalIllness Benefit is payable. However, your basic policy continues even after we pay a claim on this benefit. Additional Term Benefit (ATB) provides an additional amount, equal tothe sum assured chosen under this optional benefit, in case of your unfortunate death. Accidental Death Benefit (ADB) provides an additional amount equal tothe basic sum assured in case you die:- Due to an accident, and

- Within 90 days of the accident. Waiver Of Premium (WOP) Benefit waives the premium for you in caseyou become totally disabled. The waiver is applicable during the period of total disability. All optional benefits must be selected at the outset of your

plan.


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Eligibility

This plan can be taken on a single life basis or a joint life (first claim) basis.

The eligibility ages are as follows:

BasicPolicy

Basic Policy with optional benefits

CI ATB ADB WOP

Min age of entry 12 18 18 18 18

Max age of entry 60 55 60 55 50

Max age of expiry 75 70 75 65 60

PAYMENT OPTIONS

You have the choice of paying your premium either in yearly, half yearly or quarterly modes, depending on your convenience.

SINGLE PREMIUM WHOLE LIFE INSURANCE

Single Premium Whole of Life Insurance Plan is well suited to meet your

long term investment needs. This participating (with profits) plan offers youthe followingBenefits:

A sound investment:Your money will be invested in our With Profits fund. The fund aims to

provide secure and stable long term growth. Normally, we will declare acompound reversionary bonus for your policy every year and add it to your

policy on its anniversary. In addition, on death, surrender or on theguaranteed dates, a terminal bonus might be payable. You pay a single

premium and the policy will pay you a lump sum.

Flexibility of term:Even after choosing your policy, you can decide on the policy term. For 4weeks after any one of the 10th, 15th, 20th and subsequent five-year


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anniversaries, you can choose to receive the sum assured plus any attaching bonuses, in full. Once the money has been received, your policy will cease.

Surrender value:

You can terminate the policy any time, after it has been in force for at least 6months, and receive a surrender value.In case of unfortunate death:

Your nominee gets the sum assured secured by your premium, plus anyattaching bonuses.No medical requirements:

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

You can buy the product on a single life basis.Tax benefits

Tax benefits under Section 88 of the income Tax Act are applicable on premiums up to 20% of the sum assured.

Payment options

A single premium can be paid by cash, cheque or demand draft.Minimum age at entry: 18 years maximum age: 75 years

PENSION PLAN

• The policy is basically a saving contract, which is designed to provide an income for life from retirement, with an option to


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take the lump sum elsewhere to buy the annuity, provide it is permitted by the prevailing regulations.

• Your commitment You agree to pay a single premium or level

premiums with installments due every quarter half-year or year throughout the deferment period of the policy, after which youwill start receiving your pension.

• Plan is basically a savings contract, which is designed to providean income for life from retirement. It does this by accumulatinga national lump sum on retirement, comprising of sum assured

plus any attaching bonus. Can I take the national lump sum ascash on retirement? Subject to the prevailing legislation andregulations, part of this can be taken as a lump sum and the rest

used to buy an immediate annuity.Mode of premium

You can pay either a single premium or pay premiums is quarterly half yearly or annual form by cheque, in cash or by bank drafts.

Eligibility

The age and term limits for looking out a personal pension plan area:

Minimumterm

Maximumterm

Maximumage

Maximumage of entry

Minimumage of retirement

Maximumage of retirement

RP SP RP SP RP SP

10 5 40 15 18 35 60 50 70

What if I need money (Loan)?

There is no facility for loans against this contract.

Tax benefitsTax benefits described in Section 80 CC of the income tax act are applicable(up to Rs. 10,000)Unit Linked Pension Plan

The unit linked pension plan is basically an insurance contract, which isdesigned to provide a retirement income for life. Your premiums are investedin units of the investment fund of your choice, based on the prevailing unit


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price. On vesting the value of your units will be used to buy your retirement benefits. On earlier death, the beneficiary receives the value of your units plus a cash lump sum of Rs 1000.

PremiumsYou agree to pay level premiums regularly, either quarterly, half yearly or annually, throughout the term of the policy or a single premium at the start of the policy. The minimum premium amount for regular premium mode is Rs.10,000 each year and for single premium, it is Rs. 25,000. To facilitateincreased investment, we allow additional single premium top-ups at anytime. The minimum single premium top-up is Rs. 5,000. Premiums can be

paid by cash, cheque or demand draft.Benefits

At the chosen vesting date, the unitized fund value will be available to secure pension benefits. Subject to the prevailing regulations, part of this value can be taken in the form of a cash lump sum and the rest converted to an annuityat the rate then offered by HDFC Standard Life. Alternatively, if it is

permitted by the prevailing regulations, the proceeds net of any cash lumpsum can be used to buy an annuity with any other insurance company whowill accept such business. The current maximum limit for any cash lump sumis one-third of the unitized fund value on vesting. On death the unitized fundvalue will be paid along with a cash lump sum of Rs. 1,000. The beneficiarymay use the proceeds to purchase pension benefits for the surviving spouse.

Your basic benefits will be paid by cheque.Eligibility

The age and term limits for taking out a Unit Linked Pension Plan are:(Years)

Minimumterm

Maximumterm

Minimum ageof entry

Maximum ageof entry

Minimum ageof investing

Maximum ageof investing

Regular premiumversion

10 40 18 60 50 70

Single premium

5 40 18 65 50 70


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version

TAXATION


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TAX BENEFITS OF INSURANCE AND PENSION PLAN.

Life insurance and retirement plans are effective ways of saving taxes. Thetax breaks that are available under various insurance and pension policies are

described below:

1. Life insurance plans are eligible for deduction under Sec. 80C.

2. Pension plans are eligible for a deduction under Sec. 80CCC.

3. Health riders are eligible for deduction under Sec. 80D.

4. The proceeds or withdrawals of life insurance policies are exemptunder Sec 10(10D), subject to norms prescribed in that section.

Tax Rates for Individuals

The rates of income tax for FY 2005-06 are as follows:

MARKET SHARE & ITS COMPETITORS

In India there are total 22 insurance companies are existing and thename of few companies and its market shares are listed below:

NAME OF INSURANCE

COMPANIES

MARKET SHARE IN %

LIC 72.15

HDFC SLIC 3.88


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ICICI Prudential 5.91

Birla Sun Life 2.6

Bajaj Allianz 1.62

Tata AIG 1.5

SBI Life 1.19

Aviva 1.8

Max New York Life 2.4

Kotak Mahindra 1.9

ING vysya 1.2

AMP SANWAR 1

Met Life 1.4

Others 1.45

Competitors

There are total 22 insurance companies in India out of which LIC isthe only public Ltd. Company & is also very good competitor to all

the insurance company.The top ten companies are LIC, ICICI Prudential, HDFC SLIC,Bajaj Allianz, SBI Life, Reliance Life insurance, Birla Sun Life,MAX New York Life, Kotak Mahindra and Aviva Life Insurance.HDFC SLIC faces a very stiff competition with its other playerslike LIC, ICICI, etc.


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Some of the competitive features are as follows:

Large amount of competition (22 players in the market)

Other brands are well advertised and have higher recall value

LIC is considered a safer option

Face competition from banks and mutual funds

High premium policies are difficult to market

Incorrect perception about private insurance company

Short term plans available only at large premium

Lack of awareness about the unit linked funds in the market

The market share of HDFC is 3.88% & LIC is 72.08% as LIC is a public company it is the major competitor for all the other 21

insurance company in India. Most of the market concentration isoccupied by LIC.

LIFE INSURANCE CORPORATION OF INDIA

(LIC)

LIC offers 66 different plans; plans are formulated for specificoccasions – whole life plans, term assurance plans, money back

plan for women, child plans, plans for the handicapped individuals,endowment assurance plans, plans for high worth individuals,

pension plans, unit linked plans, special plans, social securityschemes – diversified portfolio of products. HDFC SLIC has total


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25 plans, and it could diversify its product portfolio. It could addmore plans for high worth individuals and women.

ICICI PRUDENTIALICICI Prudential is a stiff competitor for HDFC SLIC. Thecompany is a merger between ICICI Bank which is the biggest

private bank in India and Prudential Plc which is a global lifeinsurance company.The company has an investment plan which is market related – Invest Shield Life. In this plan even if the market falls, the

premium will be returned to investors. It is a guaranteed plan which

ensures the company carefully invests your money. The stock market performance of ICICI Prudential is much better than HDFCSLIC. The returns on the growth fund were 46.28% compared tothe 42.70% offered by HDFC SLIC. Customers are attracted byhigher returns and this is a plus point for prudential. The companyis very well advertised. The advertisements are showcased inmovies, television, newspapers, magazines, bill boards, radio etc.The company has an excellent brand ambassador – Mr. Amitabh

Bacchan. His promotion of the company builds trust and faith inthe minds of our people. However the charges are very high in the

plans offered by ICICI Prudential. It is 35% during the first year,15% in the next year and 3% from the third year onwards. Also ahigher minimum premium of Rs. 8,000 is charged. Hence the

policies are not accessible to the lower strata of the society.

BIRLA SUN LIFE

Birla Sun Life Insurance Company Limited is a joint venture between The Aditya Birla Group, one of the largest business housesin India and Sun Life Financial Inc., a leading internationalfinancial services organization. The local knowledge of the AdityaBirla Group combined with the expertise of Sun Life Financial Inc.,offers a formidable protection for your future.


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The Aditya Birla Group has a turn over close to Rs. 33,000 croreswith a market capitalization of Rs. 53,400 crores (as on 31st March2007). It has over 72,000 employees across all its units worldwide.It is led by its Chairman – Mr. Kumar Mangalam Birla. Some of the key organizations within the group are Hindalco and Grasim.Sun Life Financial Inc. and its partners today have operations inkey markets worldwide, including Canada, the United States, theUnited Kingdom, Hong Kong, the Philippines, Japan, Indonesia,India, China and Bermuda. It had assets under management of over US$343 billion, as on 31st March 2007. The company is a leading

player in the life insurance market in Canada.

Being a customer centric company, BSLI has covered more than amillion lives since inception and its customer base is spread acrossmore than 1000 towns and cities in India. All this has assisted thecompany in cementing its place amongst the leaders in the industryin terms of new business premium income. The company has acapital base of 520 crores as on 31st July, 2007.Its Flexi Life Line Plan offers life long insurance cover till the

policy holder is 100years of age. There are guaranteed returns of

3% p.a. net of policy charges after every 5 years from the eleventh policy year onwards. However the charges are very high. Theinitial charges for the first year are 65%. Hence the fund value isgreatly reduced.

BAJAJ ALLIANZBajaj Allianz is a joint venture between Allianz AG with over 110years of experience in over 70 countries and Bajaj Auto, a trusted

automobile manufacturer for over 55years in the Indian market.Together they are committed to offering you financial solutions that provide all the security you need for your family and yourself.Bajaj Allianz is the number one private life insurer for the year 05 – 06. It is leading by 78 crores. It has experienced a whoppinggrowth of 216% in the last financial year. The company has sold


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13, 00,000 policies and is backed by 550 offices across India. Itoffers travel insurance, motor insurance, home insurance, healthand corporate insurance. The mortality charges are lower thanHDFC SLIC. The entry age could be zero years which allow evennew born babies to be insured.


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TATA AIG

Tata AIG is a joint venture between the Tata group and AmericanInternational Group Inc. In one of the plans the company offershospital cash benefit wherein it will pay Rs. 2500 per day in case of hospitalization and Rs. 12.5 lakhs in case the person suffers fromany critical illness. Annual premium is much less (about Rs. 6712)to avail such a good benefit. Charges are relatively low comparedto HDFC SLIC for some policies.The company offers high coverage plans at low cost. There is a

plan even for a policy term of 1 year. Your family can continue to

enjoy their current lifestyle even in the case of somethinghappening to you. These plans are very flexible and HDFC SLICcould adopt this idea of insuring individuals for short periods of time. For example; there is a family of four. The only earningmember is the father.He has just taken a loan from a bank of 20 lakhs to purchase a newhome. He is able to repay the loan with his current salary in 15years. The problem arises if something were to happen to him

within these fifteen years. Not only will the family face theemotional and financial loss of their father but they will also haveto repay the home loan or risk being homeless.


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COMPETITIVE ANALYSIS

HDFC Pension plan Vs BIRLA Flexi Secure Life

Retirement Vs Bajaj Allianz Unit Gain Vs LIC Bima

Plus

Features HDFC

Pension

Plan

BIRLA

Flexi

Secure LifeRetirement

Bajaj

Allianz

Unit Gain

LIC Bima

Plus

Age 18-60 years 18-60 years 0-60 years 12-55 years

Term 10-30 years MinimumTerm of 10years

Choicerests withtheconsumer with a mini

mum premium paymentterm of 3years

10 years

SumAssured

Only 5, 10,20(age

based)

multiplesare allowedas SumAssured.

MinimumSumAssured is

Rs. 50,000.Zero DeathBenefit isalsoavailable.

MinimumSumAssured is

5 times the premium paid.

Maximumlimit up toRs. 2 lakhs.


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SurvivalBenefit

Value of units partlyin cash

partlyconverted toannuity.

Unit Valueis used to

purchase anannuity.

Value of fund at BidPrice.

Bid Valueof the fundunits.

DeathBenefit

Value of units, nosum assuredis given.

Value of units in thiscase thesum assured

is zero.

Higher of sumassured or value of

units.

Deathduring thefirst 6months-

30% of SA+ value of units, next6 months-60% of SA+ value of units.Death after

1st

year- SA+ value of units.Deathduring the10th year-105% of SA + value

of units.WithdrawalBenefit

No partialwithdrawalsareavailable.

No partialwithdrawalsareavailable.

Partial or completewithdrawalat bid priceafter 3rd

Prematurewithdrawalallowedafter oneyear (after


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year. applying bid-offer spread).

Contd…..

Contribution/ Premium

Minimum: Rs.10,000

p.a.

Minimum: Rs.5,000 p.a.

Minimum:Rs. 10,000

p.a.

Minimum: Rs.10,000 p.a.

FlexibleContribution

Available Notavailable

Only anincrease incontributio

n isallowed.

Not available

InvestmentOptions

7 fundoptions-Liquidfund,Stablefund,

Securemanagedfund,Defensivemanagedfund,Balanced

fund,Equity &Growthfund.

Nourish,GrowthandEnrich

Equityfund, Debtfund,Balancedfund &Cash fund

Balanced,Secured & Risk

Surrender value

Thesurrender

Surrender is

A selling/ purchase

Partialsurrender up to


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is 25% of 3 years of regular

premium. Nochargesafter 3years.

availablefrom thefirst year itself. Inthe 1styear surrender chargesare 75%,in the 2ndyear the

chargesare 50%,in the 3rdyear thechargesare 25%

pricespread of 5% will beapplicablefrom the3rd year onwards.

50% of bidvalue of unitsallowed after 3years from thedate of commencements.

Top-up Availablewith a

minimumtop-up of Rs. 5,000andmaximum of 20%of sumassured.

Available, with a

minimumtop-up of Rs.10000

Available Available(charges: 1.5%

of the top-up)

Switch 24switchesare free.

2 freeswitcheseveryyear.Everyadditional

Three freeswitchesevery

policyyear.Subsequen

No freeswitches. Costof switching is2% of the fundvalue.


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switchwill bechargedat 0.5%of theswitchamount.

t switcheswould becharged@1% of switchamount or Rs. 100,whichever is higher.

Initial

charge

Charges:

1st year-27%, 2nd

year- 27%,3rd year onwards-1%

Charges:

20% of theinitial

premium inthe firstyear and2% of the

premiumfrom the

2nd

year onwards.

Charges:

1st year-70%, 2nd

year- 2%,3rd year 1%,no chargesfrom the 4th

year onwards.

Not

disclosed

Admincharge

Admincharges of Rs. 180fixedcharge p.a.

Policyadmin feeof Rs. 20/month

Annualadmincharges of 1.25% p.a.of net assets

Notapplicable

Fund

managementcharges

Least in the

industry0.8% of thefund p.a.

A fund

based feeof 2.25% p.a. of the policy fund

Annual

investmentcharge of 1% p.a. of fund

1% of the

fund per annum

Bonus units Available Notavailable

Notavailable

Available


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Comparison of Children’s plans

Company

Min-

Max

Age

Minimum

Premium

Fund

Allocation

Charges

Death

BenefitMaturity Benefit

Minimum

Premium

Payment

Term

Partial

Withdrawal

(year)

Surrender

Value

(year)


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Smart Step plus

Life

Insured:

21-50yrs,child:

3 mnths-

15 yrs

Rs. 20000

1st yr:26%-30%2nd yr onwards:2%

100% of sumassured.

Companywill payall future

premiumsat onetime.Familyincome

benefitrider ensures aregular incomeevery year (5% of sumassured).

Accumulatedamount till

maturity date.3 yrs

After completion

of 5 yr

100%value

after 10thyr

Smart KidMaxima

LifeInsured:

20-60yrs,child:

0-15 yrs

Rs. 12000

1st yr:15%

2nd yr:10%3rd yr: 8%4th yr to 5th yr: 6%6th yr onwards:4%

100% of sumassured.Companywill payall future

premiums.


maturity date.After completion of 10yrs, every6th yr yoursAccumulatedvalue will beadded with

60% of total premium paid.

3 or 5yrs

After completion

of 5 yr

100%value

after 5thyr

HeadstartFutureProtect

Life

Insured:18-60yrs,child:

0-17 yrs

Rs. 15000 1st yr:

18%-30%2nd yr:6%-14%3rd yr:4%-7%4th yr onwards:

100% of

sumassured.Companywill payall future

premiumsat one

Accumulated

amount tillmaturity

date.

3 or 5

yrs

After

completionof 5 yr

100%

valueafter

5th yr


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0% time.

SaralChildren

Plan

Life

Insured:

18-50yrs,child:

30 days-13 yrs

Rs. 10000

1st yr to3rd yr:17%4th yr onwards:4%

100% of sum

assured.Companywill payall future

premiumsat onetime.Riders arealso

availablewith this.


maturity datewith

guaranteed benefits.

10 yrsAfter

completionof 3 yr

100%valueafter

3rd yr

Children

Fortune

Plus

Life

Insured:

18-55yrs,

child:0-17 yrs

Rs. 10000

1st yr:29%2nd yr to3rd yr: 5%4th yr onwards:

2.5%8th yr onwards:1%

100% of sumassured.Companywill payall future

premiumsas a lump

sum inonestroke.Riders arealsoavailable.


maturity datewith

guaranteed benefits

3 yrsAfter

completion

of 3 yr

100%valueafter

3rd yr


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RESEARCH METHODOLOGY

StudyThe present investigation is a descriptive type of study undertaken toestimate the comparative study of pension plan of HDFC SLIC, BIRLA SUNLIFE, BAJAJ ALLIANZ, LIC.

Sample size

For the purpose of analysis a sample size of different companies wereselected. The sample size taken was from some leader companies of themarket.

Sampling method

The sampling method used for the project was ‘Random Sampling’. Thistype of sampling is also known as probability sampling where each and everyitem in the population has an equal chance of inclusion in the sample andeach one of the possible samples. This procedure gives each item an equal

probability of being selected.

CONCLUSION

HDFC standard life insurance is first life insurance Company in India. It has businesses spread out across the globe. It was registered on 23rd December 2000. It currently ranks number 4 amongst the insurers in India (Source:annual premium provided by the company) The company faces a largeamount of competition. To sustain itself it must promote its products through


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advertising and improve its selling techniques. Consumers must be aware of the new plans available at HDFC SLIC. The medium of advertising usedcould be television since most of its competitors use this tool to promote

their products. The company must be promoted as an Indian company sinceconsumers seem to have more trust in investing in Indian firms. The unitlinked concept must be specifically promoted. The general perception of lifeinsurance has to change in India before progress is made in this field. Peopleshould not be afraid to invest money in insurance and must use it as aneffective tool for tax planning and long term savings. HDFC SLIC could tapthe rural markets with cheaper products and smaller policy terms. There areindividuals who are willing to pay small amounts as premium but the plansdo not accept premiums below a certain amount. It was usually found that alarge number of males were insured compared to females. Individuals belowthe age of 30 (mostly male) were interested in investment plans. This was ageneral conclusion drawn during prospecting clients.

SUGGESTIONS

• Premium allocation charge (initial charge) should be reduced

to provide customer with better return.

• Policy administration charge should be reduced to gain more

advantage in the market.


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• Surrender charges should be reduced.

• Create a positive perception about insurance.

• Try to sell the product/plan which the consumer requires and

not the plan where the advisors benefit is higher.

BIBLIOGRAPHY

• www.hdfcinsurancei.com

• www.irda.com

• www.LICindia.com54

INJ BUSINESS SCHOOLGreater Noida

http://www.irda.com/

http://www.licindia.com/

http://www.irda.com/

http://www.licindia.com/



• www.birlasunlife.com

•

www.bima deals.com• www.google.com

http://www.birlasunlife.com/

http://www.bima/

http://www.birlasunlife.com/

http://www.bima/

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