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A PROJECT REPORT
ON
STUDY ON RECRUITMENT PROCESS OF AGENT/ADVISORS AND A
COMPARITIVE STUDY OF TWO PRODUCTS IN LIFE INSURANCE INDUSTRY
AT
Submitted to
Jiwaji University
Gwalior
For the partial fulfillment of the award of
Master of Business Administration
(2009-2011)
Submitted by
Ms. Rinky Dewani
MBA-III SEM
MAHARANA PRATAP COLLEGE OF TECHNOLOGY
GWALIOR(M.P)
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DECLARATION
I Rinky Dewani, student of Master in Business Administration of Maharana Pratap college of
Technology Gwalior here by declare that all the information, facts & figures furnished in this
project report is based on my intensive learning conducted at Max New York Life Insurance
Gwalior are the first hand and original in nature.
Date: Rinky Dewani
Place: MBA III SEM
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CERTIFICATE
This is to certify that Ms Rinky Dewani student of MBA Programme has completed her
summer training of six weeks (from 15th June to 31st July 2010) at Max New York Life Insurance
Gwalior and prepared this report on the topic Recruitment of agent/ advisors and a
Comparative Study of Two Products under my direct supervision and guidance.
Date: Prof. Mansi Garg
Place: (Faculty Guide)
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ACKNOWLEDGEMENT
It gives me immense pleasure to express my deep sense of gratitude to Miss.Namrata Gupta,Head of the Department, Maharana Pratap College of Technology Gwalior (M.P.) for his
valuable guidance and consistent supervision through out the course.
I am also thankful to Mr. Manish Sharma,sales manager, my Company Guide of Max New
York Life Insurance Company, Gwalior, for his valuable guidance for preparing the Final
Report and also for providing the necessary facilities.
I am extremely thankful to Ms. Mansi Garg, MAHARANA PRATAP COLLEGE OF
TECHNOLOGY, GWALIOR for his timely guidance and support through out the work, in the
course of carrying out the project work.
Finally I am indebted to our other faculty members, my friends and my parents who gave their
full-fledged co-operation for successful completion of my project.
It was indeed a great learning experience for me.
Date: Rinky Dewani
Place: (MBA III Sem)
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TABLE OF CONTENTS
S.NO TOPIC PAGE NO
1 INTRODUCTION OF THE COMPANY . 6 - 9
2 INTRODUCTION OF INSURANCE 10 - 14
3 PROCESS OF RECRUITMENT OF AGENT/ADVISORS 15 - 29
4 COMPARITIVE STUDY OF TWO PRODUCTS 30 - 35
5 RESULTS 36
REFERENCE 37
ANNEXURE 39
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INTRODUCTION
ABOUT MAX NEW YORK LIFE (COMPANY PROFILE)
Max New York Life Insurance Company Ltd. is a joint venture between New York Life
and Max India Limited.
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New York Life is a Fortune 100 company and Max India Limited is one of India's
leading multi-business corporations.
The company has positioned itself on the quality platform.
It has developed a strong corporate governance model based on the core values of
excellence, honesty, knowledge, caring, integrity and teamwork.
The strategy is to establish itself as a trusted life insurance specialist through a quality
approach to business.
In line with its values of financial responsibility, Max New York Life has adopted
prudent financial practices to ensure safety of policyholder's funds.
The Company's paid up capital is Rs. 657 crore, which is more than the norm laid down
by IRDA.
Max New York Life has identified individual agents as its primary channel of
distribution.
The Company places a lot of emphasis on its selection process, which comprises four
stages
Screening,
Psychometric test,
Career seminar
Final interview
The agent advisors are trained in-house to ensure optimal control on quality of training.
Max New York Life invests significantly in its training programme.
Each agent is trained for 152 hours as opposed to the mandatory 100 hours stipulated by
the IRDA before beginning to sell in the marketplace.
Training is a continuous process for agents at Max New York Life and ensures
development of skills and knowledge through a structured programme spread over 500
hours in two years.
This focus on continuous quality training has resulted in the company having amongst
the highest agent pass rate in IRDA examinations and the agents have the highest
productivity among private life insurers.
It now has 26 life insurance products and 8 riders that can be customized to have more
than 400 products.
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201 agent advisors have qualified for the Million Dollar Round Table (MDRT)
membership in 2005.
MDRT is an exclusive congregation of the worlds top selling insurance agents and is
internationally recognized as the standard of excellence in the life insurance business.
Changing face of Indian insurance industry:
Ind
ian life-insurance market is the target market of all the companies who either want to extend or
diversify their business. To tap the Indian market there has been tie-ups between the major
Indian companies with other International insurance companies to start up their business. The
government of India has set up rules that no foreign insurance company can set up their
business individually here and they have to tie up with an Indian company and this foreign
insurance company can have an investment of only 24% of the total start-up investment.
Indian insurance industry can be featured by:
Low market penetration
Ever growing middle class component in population.
Growth of customers interest with an increasing demand for better insurance products.
Application of information technology for business.
Rebate from government in the form of tax incentives to be insured.
Today, the Indian life insurance industry has a dozen private players, each of which are making
strides in raising awareness levels, introducing innovative products and increasing the
penetration of life insurance in the vastly underinsured country. Several of private insurers have
introduced attractive products to meet the needs of their target customers and in line with their
business objectives. The success of their effort is that they have captured over 28% of premium
income in five years.
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The biggest beneficiary of the competition among life insurers has been the customer. A wide
range of products, customer focused service and professional advice has become the mainstay
of the industry, and the Indian customers forms the pivot of each companys strategy.
Penetration of life insurance is beginning to cut across socio-economic classes and attract
people who have never purchased insurance before.
1841: Nautilus Insurance Company is chartered to sell fire and
1849: A product shift is marked by name change to New-York
1868: The Company opens its first international office.
1892: A branch office system is implemented by company
1905: New York state investigation of insurance industry
1929: The company moves to Madison Avenue corporate
1951: The first group insurance policies are issued.
1969: A separate entity is created to manage growing
1984: The Company enters the financial services market.
1987: The Company purchases one of the largest healthcare
1996: The Company sells its healthcare operations.
2000: The Company brings all asset management businesses under
VISION:
To become the most admired life Insurance Company in India.
MISSION:
To become one of the top quartile life Insurance companies in India.
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Be a national player.
Be the brand of the first Choice.
Be the Employer of the Choice.
Become principal of choice for agents.
MEMBERS OF MAX NEW YORK
Life Insurance New York Life Insurance, USA
Health Insurance Bupa Ltd., UK
PERSONNEL POLICY
RECRUITMENT PROCESS:
Recruitment process specifies the objectives of recruit and provides a framework for the
implementation of the recruitment programmed. The main objective of Recruitment process is
to find qualified executives.
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Recruitment process of max new York involves the employers commitment to such general
principles as-
To find and employ the best qualified person for each job
To retain the most premising of those hired
To offer lifetime working career through premising opportunities
To offer facilities and opportunities for personal growth on the job.
TRAINING & DEVELOPMENT:
Training is the process of increasing the knowledge and skills for during a particular job.
Max new York provides better training to their trainees. Here, there is no restriction for the
trainees. Trainees can also work as executive of max new york. Branch Manager of max also
provides knowledge and skills for the development of trainees. There are the following
programmes for training and development at max new York.
To provides the identification about company and working process.
To provides separate lecture on every Saturday in training period.
To give opportunity for each trainee for asking question.
To solve the problem of trainees client by anybody.
COMPETITORS
Bajaj Allianz Life Insurance Co. Limited
Birla Sun Life Insurance Co. Ltd
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HDFC Standard Life Insurance Co. Ltd
ICICI Prudential Life Insurance Co. Ltd
ING Vysya Life Insurance Co. Ltd.
Life Insurance Corporation of India
Max New York Life Insurance Co. Ltd
Met Life India Insurance Co. Pvt. Ltd.
Kotak Mahindra Old Mutual Life Insurance Ltd. SBI Life Insurance Co. Ltd.
Tata AIG Life Insurance Co. Ltd.
STRENGTHS AND WEAKNESS OF THE ORGANISATION
STRENGTHS
Strong corporate governance model
Quality product
Adaptability to change
Strong brand name
Large networks
Leading company in insurance sector
Diversification of funds
Well efficient management
WEAKNESS
Less awareness about all of life insurance in market
Low advertising
Focus only on urban areas
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SUGGESTIONS TO THE COMPANY
MNYL is doing well in rib segment but they are based in only one brand MNYL,so
MNYL should try to aware to increase of other brands.
Price Quality Relationship needs to improve in premium rib and lug Insurance
segment
Keep eye to reduce the cost of manufacturing, so price will further reduce and
competition will increase.
The company should look after its trade erosion/braking problem.
SPECIAL POINTS OBSERVED BY ME:
Before this summer training project my knowledge about the insurance industry was
quite bleak. This internship in MNYL has immensely helped me in categorizing the
different financial products.
Another of my crucial learning has been in the area of communication with the outside
world. Finding a possible prospect and then giving them information about the
opportunities available was a really tough challenge.
Majority of the population in Chennai have a negative perception about the insurance
industry. Giving them appropriate information about the opportunity to earn in this field
was a challenging task.
Along with the information on the job, the staff ofMNYL also gave many inputs that
would definitely help in the management field.
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THE NAME OF CEO/MD/DEPARMENT HEAD
CEO & MD:GARY BENEET
HR HEAD:- MANISH SHARMA
CONTACT NO:-07379079531
EMAIL ID-
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SPECIAL
PROJECT
UNDERTAKEN
INTRODUCTION
The main objective of this project is To Recruit Quality Agent/advisors (AA) for the
Company for providing life Insurance solutions to the customers. Agent/Advisor plays a vital
role in the growth of company with respect of companys earnings as well as they create value
for the organization after achieving some milestones. Agent/Advisors are integral part of the
team and sales manager assigned to them help them to groom them in terms of personality
development, selling skills and handling objections of customers.
Benefits of Becoming Agent/Advisor for MNYL:
Rewarding career - Help others to realize their financial goals. Changing life is more
rewarding and satisfying.
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A Successful Team - Countries finest Agent Advisor Team. Maximum MDRT
insurance Agents.
Attractive Remuneration - Best Remuneration System in the industry.
Independence - Be Your Entrepreneur.
World-class Training - In House Training session from Professional Trainers.
Commitment to Career Agency system - Commitment to grow your career from AA
to top Management.
Infrastructure Support - Easy access to IT tools and use of Technology in order to
support stakeholders.
Full Range of Products & Services - Customized product and flexible option for
choosing product.
Sales & Marketing Support - The Sales, Promotions & Marketing collaterals which
provide you to take your business to new heights.
Financial Strength - Higher Paid up Capital of 587 Crores more than the IRDA norms.
Companys Expectation from Agent/Advisors:
Regular input activity.
Follow the sales process.
Achieve sales targets.
Attend training program.
Participate in weekly reviews.
Follow the MNYL ethics and business standards policy.
JOB DESCRIPTION
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I was placed in the recruitment section of channel development at MNYL. I had to recruit agent
advisors for the organization by following the steps involved in the channel development
process. I was paid a commission for every agent advisor who undergoes the screening process
and clears the agent advisor examination.
It was a pleasant job as it had no work pressure and extremely flexible working hours. I had agreat sales manger to assist me all throughout.
Following are the steps undergone in my job:
Making a list of known capable people and giving them a call over phone and fixing an
appointment with a senior officer.
Taking further contacts from the call-list in the form of references.
Identification of potential candidates to be contracted as agent advisors.
Calling upon the potential candidates and explaining the business opportunity to them.
Enable the candidates to talk to a higher authority and undergo initial screening.
Get necessary forms filled by the candidates and collect supplementary documents like
education proof, identity proof, date of birth proof etc.
ELIGIBILTY MODEL
From this eligibility model company judge prospective person. The company follows unique
eligibility criteria for Agent Advisor selection by which company is able is to always justify its
mission. The basic objective of having an eligibility model for recruitment is to have good
retention and greater effectiveness in the delivery of service.
Four criterias for Agent Advisor selection
1. 25 plus years of age:
This age showsattainment of maturity and responsibility. People are more consistent in this
age.
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2. Married:
Married people have more eager to earn money. Family pressures increase responsibility and
secondly customers are convinced more by the stability of a married Agent Advisor.
3. Staying in the same city for more than 5 years:
Person who stays more than 5 year has huge natural market which helps him to get more
business in short period.
4. Graduate:
Graduate people have basic skills like communication skills, numerical ability, I.P relation,
convincing abilities etc. so it is easy to teach them further.
Other criteria for Agent Advisor selection:
1. Financial stability:
MNYL is focuses on classes and not on masses thus they select strong agent advisors.
2. To have a rich and active social circle:
It helps to get higher case rate and case size. Also the chances of policy lapsing can be less and
renewals can be more.
3. Greed for money:
Firm selects advisors who understand the language of commission. Because people who want
fix amount as their earnings are not suitable for this business.
4. Independent:
MNYL select people who want to be entrepreneur. Housewives or brokers who want flexible
hours for work are prospective person for this business.
5. Persuasion:
He should be persuasive in nature because the Agent Advisor needs to follow up on regular
basis with prospective and new clients without being a nuisance value.
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6. Excellent interpersonal skills:
Because developing and maintaining good relations can get policies. Secondly since most of
the insurance companies provide a plethora of similar products, sales depend on the convincing
ability of the Agent Advisor and the rapport the Agent Advisor is bale to build. Also results in
C of Is.
Work Profile
This is an entrepreneurial opportunity with flexible working hours and the potential to earn
unlimited income without any capital investment. As an agent with Max New York Life, you
are a financial advisor, businessperson and your own boss. The only limit to your growth is
your own imagination and drive.
The Role:
Identify prospects and conduct need analysis
Provide customized solutions for long term financial protection and wealth creation
Close sales
Deliver the policy
Provide after sales service and build references for future sales
BENEFITS
A career at Max New York Life has innumerable advantages. With low start up investment you
can become a part of a world-class organization and make a positive difference to peoples
lives.
Our agents sell more policies and make more money than agents of any other life insurance
company. The financial rewards are in the form of
Commissions on new sales
Ongoing renewal commissions
Performance linked bonus
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Referral commissions
Training reimbursement
STRATEGIES
Management team has developed certain strategies in order to expand channel distribution
network. These models are followed across the country uniformly and top management feels
that these rules are the building block of MNYLs success in India as well as across the world.
There are 2 basic principles that are required in order to execute these strategies such as
Prospecting: Identify the right person who fits in the eligibility model.
Selection: Select them for further plan of actions.
RULE OF 31
Rule of 31 is associated with the daily activities which are followed to recruit quality advisors.
It says that everyday collect at least 3 names of the prospective AA and do 1 screening every
day.
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Ways of Name Gathering
There are several ways for gathering names in order to follow rule of 31.
Natural Market
Personal Observation
Nominator Call
Centre of Influence (CoI) Call
FLOW BASED APPROACH TO RECRUITMENT & SELECTION PROCESS
21
Start
Name Gathering in P200
Short listing
Contacting
Intereste
d?End
Initial Screening
NAT
Career Seminar & P200
Intereste
d? End
Career interview
FCS
Contract with MNYL
IC-33 ? Reappear
NOT CLEARED
CLEARED
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22
YES
NO
NO
YES
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NAME GATHERING IN P200
Name gathering in P200 consists of people whom you know from natural market and
references you get from their sources. As a management trainee were given a task to gather 200
names. Figure shows the P200 format in which the database is created.
Name of the prospective Agent
Name of the prospective Agent
Address of Contact
Age
Marital Status
Qualification
No. of years in the City
Financial Status
Profession
Annual Income
Natural Market
Comments
SHORT LISTING
Candidates are shortlisted from the P200 as per the eligibility criteria laid down by the
company. Only eligible candidates are considered for the next process.
CONTACTING
Candidates are called either as nominator, CoI, Prospective Agents and a meeting is fixed with
them according to the convenience of both the party. Here script plays very important role in
fixing appointment with the prospect.
INITIAL SCREENING
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Initial screening is taken if candidate is found eligible using 4 point model. In initial screening,
a sales manager first gives the introduction about the company. Then several questions such as
his family background, his natural market, traits for a sales person, and his present and past
experiences of his jobs are questioned.
Every candidate is required to get at least 3 points in eligibility model the company. Theeligibility standards for AA selection are as follows. In case of score less than 3, special zonal
head approval is required.
FIVE POINT SYSTEM:
Age 25 and over 1 point
Graduate 1 point
Married 1 point
Lived in city more than 5
years
1 point
NAT score 1 point (if passed)
NAT
Numerical Ability test is taken. Passing Score is 50%.
CAREER SEMINAR AND P200
All the prospects are required to attend career seminar at MNYL which provides broader
aspects of growth as an Agent Advisor.
P200 is a worksheet which is given to each prospect to judge his natural market. The prospects
are required to mention at least 100 contacts from their natural market.
CAREER INTERVIEW
P200 is evaluated in Career Interview. If candidates market is found worth, he is selected to
attend training and Development programme.
FCS
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All the selected candidates are required to attend 15 day training session for receiving the
license from IRDA to become an Agent Advisor.
CONTRACT
All the successful candidates having legal license of IRDA are contracted with MNYL.
In this firm has its own statistic. That means if we will contact 60 person in a month. Then
we can convert 2 people for a batch as a AA.
60 Cold prospects.
20 Initial screening.
16 Test.
08 Seminar.
04 Career Interview.
02 FCS Batch.
ACTIVITY CHART
Particulars Status
1) Initial Screening 30
2) NAT 6
3) Career Seminar 8
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4) P200 8
5) Career Interview 5
6) FCS 2
7) Total Recruitment 1
8) Contracted -
The above activity chart represents the work done by me in accordance with the channel
development process. The P200 sheet will be attached with this project where name and
contact numbers are stored in format prescribed by the MNYL.
REWARDS AND RECOGNITION
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C
e
e
e
o
EMDR
T
Ex.
Council
Centurion
Paul Colgan
Trophy
Agent of the Year
Paid Cases, FYC,
Persistency, Rider,
Referral and CEIP Leader
Career Foundation Club
Career Producer Award
Career Success Award
Hi-Flier
Ten-A-Monther
Premium Leader
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PRODUCTS OF MNYL
Endowment policies: This type of policy covers risk for a specified period, and at the
end of the maturity sum assured is paid back to policyholder with the bonuses duringthe term of the policy.
Money back policies: This type of policy is for periodic payments of partial survival
benefits during the term of the policy as long as the policy holder is alive.
Group insurance: This type of insurance offers life insurance protection under group
policies to various groups such as employers-employees, professionals, co-operatives
etc it also provides insurance coverage for people in certain approved occupations at the
lowest possible premium cost.
Term life insurance policies: This type of insurance covers risk only during the
selected term period. If the policy holder survives the term, risk cover comes to an end.
These types of policies are for those people who are unable to pay larger premium
required for endowment and whole life policies. No surrender, loan or paid up values
are in such policies.
Whole life insurance policies: This type of policy runs as long as the policyholder is
alive and is covered for the entire life of the policyholder. In this policy the insured
amount and the bonus is payable only to nominee on the death of policy holder.
Joint life insurance policies: These policies are similar to endowment policies in
maturity benefits and risk cover, but joint life policies cover two lives simultaneously
such as married couples. Sum assured is payable on the first death and again on the
death of survival during the term of the policy.
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Pension plan: a pension plan or annuity is an investment over a certain number of
years but does not provide any life insurance cover. It offers a guaranteed income either
for a life or certain period.
Unit linked insurance plan: ULIP is a kind of insurance plan which provides lifecover as well as return on premium paid over a certain period of time. The investment is
denoted as units and represented by the value called as net asset value (NAV).
SOME OF THE OTHER PLANS ARE:
SAVINGS PLANS:
W hole Life Participating
20 Year Endowment (Par)
Endowment to Age 60 (Par)
Life Gain Plus 20 (Par)
Life Gain Plus 25 (Par)
Life Pay Money Back
Life Gain Endowment
Life Partner
RURAL PLANS:
Max Suraksha
Easy Term Policy
STRATEGIC PRODUCTS PLANS:
1. Bancassurance
Super Saver Bond
Capital Builder
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2. Additional Distribution
Max Mangal
Max Vriksha
Capital Builder
3. Max Amsure
Future Builder
Family Money Back
Bonus Builder
Business Builder
Secure Returns builders
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COMPARATIVE STUDY OF TWO PRODUCTS
SHIKSHA PLUS CHILDREN PLAN (MNYL)
YOUNG STAR PRODUCT (HDFC Standard Life Insurance)
INTRODUCTION
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Shiksha plus children plan
A few decades back, it was all about focusing on education and ensuring that the children get the best
opportunities for their education. Now it goes beyond that. Its more about having a multi-faceted
personality, being an all-rounder and excelling in various fields.
We understand this desire that every parent has for their child. Therefore, our child plan are
designed specifically to ensure that your child not only gets the best of education but also can
explore and develop his/her hidden talent.
Max New York Life Shiksha Plus is a 360 degree child plan that provides for over all
development of your child in all the circumstances. Along with addressing the increasing cost of
education, the plan also provides an option to secure the future of your second child also once
he/she is born.
Eligibility Criteria
Criteria Eligibility
Entry Age
Life Insured
Minimum: 21 years
Maximum: 55 years
Child
Minimum: 0 days
Maximum: 18 years
Maturity Age Maximum age for Life Insured: 70 years
Policy Term10 years (only available as 5 pay) or
15 to 25 years, pick a term, Regular Pay
Premium Payment Options5 Pay or
Regular pay
Minimum Annual Target Premium Minimum: Rs. 24,000 (for terms 15 through 25
years, pick a term) Minimum: Rs. 50,000 (for 5
pay/10 years variant)
Maturity Benefit:
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HDFC STANDARD LIFE INSURANCE
Plan today to ensure a bright future for your child.Start saving today with HDFC UNIT LINKED
YOUNG STAR PLUS II, so that your child is able to lead a life of respect and dignity with a
secured financial future.
Use HDFC Standard Lifes excellent investment options to maximize your savings and maximize
your childs achievements.We will provide security for your child and make those savings on your
behalf, in your absence.
FEATURES
An outstanding investment opportunity by providing a choice of thoroughly reasearched
and selected investments.
Valuable protection in case of the insured parents unfortunate demise
Flexible benefit combinations and payment options.
Flexible additional benefit options such as critical illness cover.
ADVANTAGES
In case of unfortunate demise of the parent during the policy term,HDFC Standard Life
will:
Pay the sum assured you had chosen for your child
Continue the policy and continue the original premiums you had chosen.
At the time of maturity,your child will receive the accumulated value of your funds.
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COMPARISON BETWEEN SHIKSHA PLUS AND YOUNG STAR PRODUCT
These two Products are Unit Link Products.
UnitLinkInsurancePolicy (ULIP) covers the concept of Insurance. It is the one in which the
customer is provided with a life insurance cover and the premium paid is invested in either debt
or equity products or a combination of the two. ULIP attempts to fulfill investment needs of an
investor with protection/insurance needs of an insurance seeker. It saves the investor/insurance-
seeker the hassles of managing and tracking a portfolio or products.
Unit Linked Insurance Plans offer a tax rebate under Section 88 with a tax-free dividend and
the benefit of long-term capital gains after maturity. The yield is fairly high if the age at entry isyoung and it descends slowly along with the age of the holder. ULIP is available in two term
periods, one for 10 years and the other for 15 years. It provides numerous benefits for its
investors such as life insurance cover at a nominal premium, accident cover, decent rate of
returns and concessions.
OBJECTIVE
HDFC Standard Lifes excellent investment options to maximise your savings and maximise
your childs achievements.It provides security for your child and make those savings on your
behalf,in your absence whereas Shiksha Plus Plan Product ensures to make investments in
unit link funds which allows withdrawing money,to meet the educational expenses of child.
WORKING OF POLICY
With Shiksha Plus Plan Product there are several points:-
Age of the insured:- 29 years
Age of the child:- 2 years
Premium:- Rs.50000 annually
Term:- 20 years
Police opted for:-Dynamic fund allocation,with a cover multiple of 20
Thus corpus on maturity:-
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Rs.22,42,723(assuming 10% return on investment)
Rs.14,58,726(assuming 6% return on investment)
With Young Star Product there are several steps need to be taken.
Step1:- Choose the premium you wish to invest.
Step2:- Choose the amount of protection (Sum Assured) which desired.
Step3:- Choose the additional plan benefits desired.
Step4:- Choose the investment funds.
BENEFITS:-
Shiksha plus plan has several benefits:-
A 360 degree coverage to ensure a bright future for your child.
Guaranteed pay out of University Education Pool.
Dynamic Fund Allocation ensures life stage based allocation of funds.
Systematic Transfer Plan to protect from market volatilities and get the benefir of
rupee cost averaging.
Option to include Dread Disease Rider and Personal Accident benefit rider.
Young Star Product has several benefits like:-
Death Benefit: - In case of unfortunate demise during the policy term the sum assured
will be paid and the policy will be continued to pay the original regular premiums
which has been chosen. Any Critical illness covers terminates immediately.
Maturity Benefit:-The entire amount will be received at the time of maturity. However
there is one more option to take the funds in periodical installments over the period
which may be extended to 5 yrs. This is called Settlement Option. During such
period, the charges will be deducted constantly other than the risk benefit charges such
as the mortality charges. The policy will be terminating the moment of balance of the
units in all the funds reaches zero.
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Choice of Investment Funds: - Young Star Product offers five investment funds where
all the units in a particular fund are identical.
SURRENDER POLICY
In case of Shiksha Plus Planpolicy can be surrendered:-
Cash value as built in the policy will be paid at the time of surrender of policy.There
is no cash value till two years premiums have been paid in full.
Bonus options:Bonus is not confirmed for the first 3 years of the policy.
Whereas in Young Star Product Policy can be surrendered at any time and the
surrender value will be the value of the units in the fund.
Following are the surrender values applicable after payment of 3 full yrs premium.
No. of completed Policy years Surrender Value as a % of Fund Value
3 Policy Years 30%
4 Policy Onwards 30%
TAX BENEFITS
Under Young Star Product the person is eligible for tax benefits under Section 80C and
Section 10 (10D) of the Income Tax Act, 1961.
Under Section 80C, the amount can save up to Rs 33,660 from the tax each year
as premium up to Rs 100,000 are allowed as a deduction from the taxable
income.
Under Section 10(10D), the benefits which are received from the policy are
completely tax- free subject to the exclusions.
Whereas Under Shiksha Plus Plan Premiums paid for the policy will be eligible for tax
benefits under Section 80C.Any benefit amount received under this policy will be eligible for
the tax benefit under Section 10(10)D,as per prevailing Income tax laws.
RESULT
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By making comparison between Shiksha Plus Plan of MNYL and Young Star Product of
HDFC Standard Life Insurance,it has been observed that Young Star Product is better than the
Shiksha Plus Plan it is because:-
Firstly,its objective has been focused not only on the educational expenses of the child but also
to enhance the bright future of the child.Secondly,under the surrender value is always constantduring all the years;there are no variations at all.Lastly, there are so many beneficial options
provided to buy the product by the child maturity age of eighteen to sixty five or to eighteen to
fifty five.
Thus thats why the parents go for Young Star Product rather than of Shiksha Plus Product.
REFRENCES
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NAME OF THE BOOK
DR.GUPTA C B (2008) Human Resource And Management .Sultan Chand &Sons
Publication.6(6).253-266
KOTLER PHILIP (2009) Human Resource Management. Himalaya publication .7(1)
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RAO A B (2003) Research Methodology. Himalaya Publishing House.5(4)10-22
WEBOLOGY
www.wikipedia.com
www.google.com
www.hdfcinsurance.com
www.maxnewyorklife.com
www.cnn.com
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ANNEXURE