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1. INTRODUCTION TO PROJECT
1.1 INTRODUCTION OF ULIP
A unit-linked insurance plan (ULIP) is a type oflife insurance where the cash value of a policy
varies according to the current net asset value of the underlying investment assets. It allows
protection and flexibility in investment, which are not present in other types of life insurance
such as whole life policies. The premium paid is used to purchase units in investment assets
chosen by the policyholder.
ULIP came into play in the 1960s and is popular in many countries in the world.
In 1971 the Unit Trust of India offered the Unit Linked Insurance Plan. Out of insurance
premium a small part of contribution was utilized for providing life cover and balance invested
in units.
As times progressed the plans were also successfully mapped along with life insurance need to
retirement planning. In today's times, ULIP provides solutions for insurance planning, financial
needs, and many types of financial planning including childrens marriage planning.
In India investments in ULIP are covered under Section 80C of IT Act. However, the concept of
having an investment and insurance by the same instrument was challenged by the market
regulator SEBI which took up the matter to the Supreme Court of India .The Indian government
brought down curtains on the two-month long tussle between the regulators by ruling that Unit-
linked Insurance Products (Ulips) will be governed by the Insurance Regulatory and
Development Authority (IRDA) On 21ST
December, 2005 in India. The main intent of the
guidelines was to ensure that they lead to greater transparency and understanding of these
products among the insured, especially since the investment risk is borne by the policyholder.
1.2 OBJECTIVES OF PROJECT
To understand the concept of ULIP. To identify the scheme preference of investors.
http://en.wikipedia.org/wiki/Life_insurancehttp://en.wikipedia.org/wiki/Cash_valuehttp://en.wikipedia.org/wiki/Net_asset_valuehttp://en.wikipedia.org/wiki/Whole_life_policyhttp://en.wikipedia.org/wiki/Unitised_insurance_fundhttp://en.wikipedia.org/wiki/Retirement_planninghttp://en.wikipedia.org/wiki/SEBIhttp://en.wikipedia.org/wiki/Supreme_Court_of_Indiahttp://en.wikipedia.org/wiki/Insurance_Regulatory_and_Development_Authorityhttp://en.wikipedia.org/wiki/Insurance_Regulatory_and_Development_Authorityhttp://en.wikipedia.org/wiki/Insurance_Regulatory_and_Development_Authorityhttp://en.wikipedia.org/wiki/Insurance_Regulatory_and_Development_Authorityhttp://en.wikipedia.org/wiki/Supreme_Court_of_Indiahttp://en.wikipedia.org/wiki/SEBIhttp://en.wikipedia.org/wiki/Retirement_planninghttp://en.wikipedia.org/wiki/Unitised_insurance_fundhttp://en.wikipedia.org/wiki/Whole_life_policyhttp://en.wikipedia.org/wiki/Net_asset_valuehttp://en.wikipedia.org/wiki/Cash_valuehttp://en.wikipedia.org/wiki/Life_insurance8/3/2019 ulip (1)
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To show the wide range of investment options available in ULIP by explaining its variousschemes.
To know how ULIP are differ from Traditional plans means how they give better returnsthan traditional plan.
Gather and analyze the future aspirations of the customers with respect to the ULIPs.1.3 THE SCOPE OF RESEARCH
Researcher found the following scopes:
To study the awareness among customers related to ULIP. Future prospect of ULIP. Importance of ULIP.
1.4 LIMITATION OF PROJECT STUDY
Researcher found the following limitations:
Many people are not aware and dont have any idea about ULIPs. The study is limited area only.
Sample size taken is small and may not be sufficient to predict the results with 100%accuracy.
Time was not sufficient to research.1.5 METHODOLOGY OF THE STUDY
The collection of data refers to a planned gathering of information relevant to the subject matter
of the study from the units under investigation the method of collection of data depends mainly
upon the nature, objective and scope of the inquiry on one hand and available of resources and
time on the other hand. Data may be classified into primary and secondary data, depending upon
the nature and mode of collection.
Mainly the data is collected from:
1. Primary data
2. Secondary data
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1) Primary data:Primary data is collected from the prospective customers, agents and the staff of SBI. And
the collection of the data through interaction with various respondents.
2) Secondary data:Secondary data collected from the published magazines and websites to collect the data. The
secondary data is collected from the following sources.
Business magazines Journals Company broachers and books Published books Website
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2. INTRODUCTION OF INSURANCE
Insurance is a tool by which fatalities of a small number are compensated out of funds (premium
payment) collected from plenteous. Insurance is a safeguard against uncertain events that may
occur in the future.
It is an arrangement where the losses experienced by a few are extended over several who are
exposed to similar risks. It is a protection against financial loss arising on the happening of an
unexpected event. Insurance companies collect premium to provide security for the purpose.
Loss is paid out of the premium collected from people and the insurance companies act as
trustees to the amount so collected. These companies have proposal forms which are filled to
give details of insurance required. Depending upon the answers in the proposal from insurance
companies assess the risk and decide on the premium.
Insurance companies are risk bearers. They underwrite the risk in return for an insurance
premium. the function of insurance is to provide protection, prevent losses, capital formation etc.
hence insurance can be defined as a tool in which a sum of money as a premium is paid by the
insured in consideration of the insurers bearing the risk of paying a large sum .it may also be
defined as a contract wherein one party (insurer) agrees to pay the other party (insured) or his
beneficiary, a certain sum upon a given contingency against which insurance is required.
Insurance industry commands massive funds through sales of insurance products to large number
of clients. Insurers also create liabilities and commit themselves to compensate for lossesoccurring to the policyholders on future date. It also plays an important role in process of capital
formation.
2.1 HISTORY OF INSURANCE SECTOR
The business of life insurance in India in its existing form started in India in the year 1818 with
the establishment of the Oriental Life Insurance Company in Calcutta Some of the
importantgmilestonesgingtheglifeginsurancegbusinessgingIndiagare:-
1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life
insurancegbusiness.
1928: The Indian Insurance Companies Act enacted to enable the government to collect
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statisticalginformationgaboutgbothglifegandgnon-lifeginsurancegbusinesses.
1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of
protectinggtheginterestsgofgtheginsuringgpublic.
1956: 245 Indian and foreign insurers and provident societies taken over by the central
government and nationalised. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a
capital contribution of Rs. 5 crore from the Government of India. The General insurance business
in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd., the first
general insurance company established in the year 1850 in Calcutta by the British.
Some of the important milestones in the general insurance business in India are:-
1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of
generalginsurancegbusiness.
1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of
conductgforgensuringgfairgconductgandgsoundgbusinessgpractices.
1968: The Insurance Act amended to regulate investments and set minimum solvency margins
andgthegTariffgAdvisorygCommitteegsetgup.
1972: The General Insurance Business (Nationalisation) Act, 1972 nationalised the general
insurance business in India with effect from 1 st January 1973. 107 insurers amalgamated and
grouped into four companies viz. the National Insurance Company Ltd., the New India
Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United India Insurance
CompanygLtd.gGICgincorporatedgasgagcompany.
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2.2 PRINCIPLES OF INSURANCE
1. A large number of homogeneous exposure units:
The vast majority of insurance policies are provided for individual members of very large
classes.
2. Definite Loss:
The event that gives rise to the loss that is subject to insurance should, at least in principle, take
place at a known time, in a known place, and from a known cause.
3. Accidental Loss:
The event that constitutes the trigger of a claim should be fortuitous, or at least outside the
control of the beneficiary of the insurance. The loss should be pure, in the sense that it results
from an event for which there is only the opportunity for cost.4. Large Loss:
The size of the loss must be meaningful from the perspective of the insured. Insurance premiums
need to cover both the expected cost of losses, plus the cost of issuing and administering the
policy, adjusting losses, and supplying the capital needed to reasonably assure that the insurer
will be able to pay claims.
5. Affordable Premium:
If the likelihood of an insured event is so high, or the cost of the event so large, that the resulting
premium is large relative to the amount of protection offered
6. Calculable Loss:
There are two elements that must be at least estimatable, if not formally calculable: the
probability of loss, and the attendant cost.
7. Limited risk of catastrophically large losses:
The essential risk is often aggregation. If the same event can cause losses to numerous
policyholders of the same insurer, the ability of that insurer to issue policies becomes
constrained, not by factors surrounding the individual characteristics of a given policyholder, but
by the factors surrounding the sum of all policyholders so exposed.
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2.3 FUNCTIONS OF INSURANCE
1. Primary function2. Secondary functions3. Other functions
Primary functions:-
1.lProvide 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 can certainly provide for the
losses of risk. Insurance is actually a protection against economic loss, by sharing the risk with
others.
2.lCollective bearing of risk:
Insurance is a device to share the financial 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 out of which the persons exposed to a particular risk is paid.
3.lAssessment of risk:
Insurance determines the probable volume of risk by evaluating various factors that give rise to
risk. Risk is the basis for determining the premium rate also.4.lProvide Certainty:
Insurance is a device, which helps to change from uncertainty to certainty. Insurance is device
whereby the uncertain risks may be made more certain.
Secondary functions:-
1.lPrevention of Losses:
Insurance cautions individuals and businessmen to adopt suitable device to prevent unfortunate
consequences of risk by observing safety instructions; installation of automatic sparkler or alarm
systems, etc. Prevention of losses cause lesser payment to the assured by the insurer and this will
encourage for more savings by way of premium. Reduced rate of premiums stimulate for more
business and better protection to the insured.
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2.lSmall capital to cover larger risks:
Insurance relieves the businessmen from security investments, by paying small amount of
premium against larger risks and uncertainty.
3.lContributes towards the development of larger industries:
Insurance provides development opportunity to those larger industries having more 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.
Other functions:-
1.lMeans of savings and investment:
Insurance serves as savings and investment, insurance is a compulsory way of savings and it
restricts the unnecessary expenses by the insured's For the purpose of availing income-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.lRisk Free trade:
Insurance promotes exports insurance, which makes the foreign trade risk free with the help of
different types of policies under marine insurance cover.
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3. CONCEPT OF ULIP
3.1 INTRODUCTION OF ULIP
Unit linked insurance plan (ULIP )is the Product Innovation of the conventional Insurance
product. With the decline in the popularity of traditional Insurance products & changing Investor
needs in terms of life protection, periodicity, returns & liquidity, it was need of the hour to have
an Instrument that offers all these features bundled into one.
ULIP is life insurance solution that provides for the benefits of protection and flexibility in
investment. The investment is denoted as units and is represented by the value that it has attained
called as Net Asset Value (NAV). The policy value at any time varies according to the value of
the underlying assets at the time. ULIPs attempt to fulfill investment needs of an investor with
protection/insurance needs of an insurance seeker.
ULIPs work on the premise that there is class of investors who regularly invest their savings in
products like fixed deposits (FDs), coupon-bearing bonds, debt funds, diversified equity funds
and stocks. There is another class of individuals who take insurance to provide for their family in
case of an eventuality. So typically both these categories of individuals (which also overlap to a
large extent) have a portfolio of investments as well as life insurance. ULIP as a product
combines both these products (investments and life insurance) into a single product. This saves
the investor/insurance-seeker the hassles of managing and tracking a portfolio of products.
Presently there are 200 plus ULIP Schemes in the market.
ULIPs offer a variety of options to the individual depending on his risk profile. For instance, an
individual with an above-average risk appetite can choose a ULIP option that invests upto 60%
of premium in equities. Likewise, an individual with a lower risk appetite can select a ULIP that
invests up to 20% of premium in equities.
3.2 DEFINITION
A type of insurance vehicle in which the policyholder purchases units at their net asset values
and also makes contributions toward another investment vehicle. Unit linked insurance
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plans allow for the coverage of an insurance policy, and provide the option to invest in any
number of qualified investments, such as stock, bonds or mutual funds.
3.3 CONCEPT OF ULIP
Unit linked insurance plan (ULIP) is a life insurance solution that provides the client with the
benefits of protection and flexibility in investment. It is a solution which provides for life
insurance where the policy value at any time varies according to the value of the underlying
assets at the time .
The investment is denoted as unit and is represented by the value that it has attained called as
Net Asset Value (NAV).
ULIP came into play in 1960s and became very popular in Western Europe and America. The
reason that is attributed to the wide spread popularity of ULIP is because of the transparency and
the flexibility which it offers to the clients.
As time progressed the plans were also successfully mapped along with life insurance needs to
retirement planning. In todays times ULIP provides solution for all the needs of a client like
insurance planning, financial needs, financial planning for childrens future and retirement
planning.
UNIT LINKED
INSURANCE
POLICIES
UNITS
IN
FUNDS
UNDERLYING
INVESTMENT
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3.4STRUCTURE OF ULIP
3.5 ADVANTAGES AND DISADVANTAGES OF ULIP
ADVANTAGES OF ULIP
The advantages of ulip are given below: -
1.lFlexibility:
ULIPs offer a complete selection of high, medium and low risk investment options under the
same policy. You can choose an appropriate policy according to your risk taking appetite,
coupled with the opportunity to switch between fund options without any additional expense for
specified number of switches. ULIPs provide the flexibility to choose the sum assured and
investment ratio in the annual targeted premium. It also offers the flexibility of one time increase
in investment portfolio, through top-ups to avail investment opportunity offered by external
environment or own income flows.
2.lTransparency:
The charge structure, value of investment and expected IRR based on 6% and 10% rate of
PREMIUM
LESS CHARGE
LIFE COVER
INVESTMENT
REPRESENTED AS
UNITS
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returns, for the complete tenure of the policy are shared with you before you buy a product.
Similarly, the annual account statement, quarterly investment portfolio and daily NAV reporting,
ensures that you are aware of the status of your investment portfolio at all times. Most companies
publish latest NAVs on their respective websites on a daily basis.
3.lLiquidity:
To cope with unforeseen circumstances, ULIPs offer the benefit of partial withdrawal; wherein
after 5 years you can withdraw funds from our Unit Linked account, retaining only the stipulated
minimum amount.
4.lRegularlsavings:
ULIPs help you inculcate a regular saving habit. Also, the average unit costs tend to be lower
than one time investment.
5.lMultiplelbenefits:
ULIP is an outstanding solution for risk cover, long term investments with the benefit of various
investment opportunities, coupled with tax benefits.
6.lSpreadloflrisk:
ULIPS are ideal for those investors who wish to avail the benefit of market linked growth
without actually participating in the stock market, with the added benefit of risk-cover.
DISADVANTAGES OF ULIP
Ulip have their following drawbacks:
1.Flexibility:
This can act a disadvantage since the person may use the withdrawal and may not end upbuilding a huge corpus.
2.Initially heavy costs:
You pay around 15-20% for the first year and then around 5%for the next two year
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3.6 TYPES OF ULIP
ULIP offers is that whatever be your specific financial objective, chances are that there is
a ULIP which is just right for you. The figure below gives a general guide to the different goals
that people have at various age-groups and thus, various life-stages.
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3.7COMPARISION OF ULIP WITH TRADITIONAL PLAN
Unit Linked Insurance Product:
ULIPs have gained high acceptance due to attractive features they offer. These include:
Flexibilityo Flexibility to choose Sum Assured.o Flexibility to choose premium amount.o Option to change level of Premium /Sum Assured even after the plan has started.o Flexibility to change asset allocation by switching between funds
Transparencyo Charges in the plan & net amount invested are known to the customero Convenience of tracking ones investment performance on a daily basis.
Liquidityo Option to withdraw money after few years (comfort required in case of exigency)o Low minimum tenure.o Partial / Systematic withdrawal allowed
Fund Optionso A choice of funds (ranging from equity, debt, cash or a combination)o Option to choose your fund mix based on desired asset allocation
Traditional Plans :
These are the oldest types of plans available. These plans cater to customers with a low risk
appetite. Some of the common features of traditional plans are:
Steady Investmento Major chunk of investible funds are in debt instrumentso Steady and almost assured returns over the long term
Featureso Death benefit is Sum Assured + guaranteed & vested bonuso Helps in asset creation as they are for a long tenure
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o Premium to Sum Assured ratios are fixed for each plan and age.o Generally withdrawals are not allowed before maturity.
Point of difference ULIP Traditional Policy
InvestmentMarket related (May be stock
market or debt market)
IRDA? Determined
investments
Transparency in costs Yes No
Flexibility in payment Yes No
Assured Bonus No Yes
Assured Sum on survival No Yes
Option to increase
investment/premiumYes No
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4. INVESTMENT OF ULIP IN MARKET
4.1 HOW TO CHOOSE ULIP
The wide range ofULIPsavailable in the market might make it difficult for a consumer to
choose the correct ULIP. However, follow a few simple steps choosing the right ULIP can be a
smooth process.
1.lFocuslonlrequirementslandlrisklprofile:
Identify a plan that is best suited for keeping in mind risk appetite. In case have a high-risk
appetite, opt for a more aggressive fund option (an option that invests higher percentage in
equities) and vice versa.
2.lUnderstandlthelpeculiaritiesloflthelplan:
Understand all the charges levied on the product over its tenure, not just the initial charges. A
complete charge structure would include the initial charges, the fixed administrative charges,
fund management charges and mortality charges.
3.lExaminelthelperformanceloflthelplan:
Compare the performance of the plan with benchmark indices like BSE Sensex or Nifty in the
past two or three years to get a better idea about the performance. Ensure that you can easily get
information about your NAV when you need it. Thoroughly understand the flexibility and
redemption conditions of an ULIP.
4.lUnderstandlthelchargeslleviedlonlthelproduct:
Understand all the charges levied on the product over its tenure, not just the initial charges. A
complete charge structure would include the initial charges, the fixed administrative charges, the
fund management charges and mortality charges.
5.lComparelULIPlproductslofldifferentlinsurancelcompanies:
Compare products of different insurance companies in terms of premium payments, cost
structure, performance of the scheme (equity as well as debt schemes), additional facilities such
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as top-up premium and free switch between different fund options, flexibility in terms of
increasing or decreasing protection, reporting structure and flexibility in redemption.
6.lKnowlaboutlthelCompany:
Last but not least, insure with a brand can trust to honor its commitment and service in
accordance to requirements.
4.2 GET THE MOST OUT OF YOUR ULIP
In the process of deciding which ULIP to invest in; or a unit linked insurance policy to secure
important financial goals there are some key principles which should govern any decision related
to ULIPs. Adhering to these key principles will allow you to make optimum utilization of your
ULIP.
1.Appropriate Life Cover:
Unit Linked Insurance (ULIP) plansare designed to help to meet financial goals by ensuring
the value of investments, or nominee sum assured, which is the life cover of policy. To make
sure that ULIP is truly working to assure goal, choose a life cover that provides family with
adequate finances and hence security even in absence, so that important life goals of family are
always secured.
Let us take the example of a 35-year-old man with 2 young children. He could begin with a sum
assured of Rs 5 lakh. As the children grow and thereby the financial liabilities increase, he might
want to increase the level of protection, which can be done by increasing his sum assured.
2. Right Fund Option:
Unit-Linked Insurance Plans (ULIPs)come with an in-built range of fund options to choose
from ranging from aggressive funds (primarily invested in equities with the general aim of
capital appreciation) to conservative funds (invested in cash, bank deposits, and money market
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instruments with the aim of capital preservation) so that to invest money in line with market
outlook, time horizon, and investment preferences and needs. If there have a high risk appetite,
should opt for a more aggressive investment option, and vice versa.
Additionally also have the advantage of switching fund options to make investments work in
tandem with the market. These days, various ULIPs also offer the options oflife stage
fundswhich keep dynamically altering themselves without having to do any monitoring.
3. Long Term Investment:
Unit-Linked Insurance Plans (ULIPs)are meant to guarantee financial goals over the long-
term. As a short term investment tool, they will not give considerable return on investments,
because of a product cost structure which is higher in the initial years. However, overall charge
structure for the term comes down substantially over a long period of time thus allowing greater
allocation of premium in the chosen funds.
Also in long term investment in ULIPs are less affected by temporary market fluctuations
since data shows that over a long-term, market linked investments not only yield very attractive
returns, but also have the least downside to them. To get the best out of your ULIP, you should
remain invested in the ULIP for the long-term of at least 8-10 years. This way, investment willtruly experience the power of compounding and thereby create greater wealth to fulfill important
goals.
4. Know the Charges:
Unit-Linked Insurance Plans (ULIPs)are designed to meet two of the most important
financial needs: protection and investment. Both these benefits have some charges attached to
them; important charges to know about before purchasing a ULIP are:
Premium Allocation charge Policy Administration charge Mortality charge
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Fund Management charge
The important thing to note about ULIPs is that the overall charge structure in the long term
comes down substantially, thus allowing greater allocation of premium to chosen fund, thereby
leading to wealth creation. It may be noted that insurers have the right to revise the fees and
charges over a period of time.
5. Know the Features:
Unit-Linked Insurance Plans (ULIPs)offer a variety of features and benefits that no other
single financial instrument does. Most ULIPs are rich in features such as top up, switch between
funds, increase or decrease the protection level during the term of the policy, cover continuance
option, surrender options & range of riders which can be attached to the main policy to provide
added protection. As with all other products, the exact features of a Unit Linked Insurance
Policy differ from one product to another.
Always insist on seeing the brochure so that customer can make right choices of ULIP to secure
goalsbe it retirement planning, planning for your childrens education, or wealth creation.
4.3 CHARGES UNDER ULIP
1. Contribution related charges:
These are the charges that are represented as a percentage of the regular or single contribution
paid. In case of a regular contribution plan, it is usually high in the first year to pay for the
distribution cost. This charge pays for the issuance and for distribution commissions. These
charges are running for the policy.
2. Administrative charges:
These are charges that are levied for the administration of the policy and the related cost of
administration of the insurance company, itself. They are more related to the cost like IT,
operational, etc cost of continuing the policy.
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3. Fund management charges:
These are the charges for buying and selling debt and equity. These are the charges are adjusted
in NAV itself.
4. Mortality charges:
This covers the cost of providing life protection for the insured and may be paid once at the start
of the policy for a recurrent manner for example this charges levied to provide the insurance
cover under the plan. Normally these charges are one year charges as per the age of the holder.
5. Rider charges:
Rider charges are similar in nature to the mortality charges as they are levied to pay for the other
protection benefits that the policy holder has chosen for- like the critical illness benefit or the
accident benefited.
6. Surrender charges:
When the policy holder decides to surrender the policy or partially withdraw some of the units
for cash, a surrender charge may be apply.
Surrender charges are used to cover initial expenses that have been incurred by the company but
not yet recovered from the policyholder yet.
7. Bid offer charges:
In ULIP specifically certain insurers might create a difference in the price at which they sell the
unit and the price at which they buy the units. Investors contributions are used to buy units in
the investment fund at the offer price and are sold when benefits are required at the bid price.
The difference between the offer and bid prices Is known as the bid -offer spread", this is used
to cover expenses when setting up the policy.
8. Transactional specific charges:
These charges are levied when the client does some specific transaction like changing funds
topping up the investment component or withdrawals.
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4.4 HISTORY OF ULIP
ULIP came into play in 1960 and is popular in many countries in the world today. In 1971 the Unit Trust of India offered the Unit Linked Insurance Plan. Out of insurance
premium a small part of contribution was utilised for providing life cover and blance
invested in units.
Unit linked guidelines notified by IRDA on 21st December, 2005 in India. The mainintent of the guidelines was to ensure that they lead to greater transparency and
understanding of these products among the insured, especially since the investment risk
is borne by the policyholder.
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5. REGULATION OF ULIP IN INDIA
5.1 REGULATORY CHANGES RELATED TO UNIT LINKED INSURANCE
PRODUCTS (ULIPs)
INTRODUTION
IRDA has, from time to time, taken various initiatives for protecting the interests of
policyholders by bringing out Regulations, Guidelines, Circulars etc applicable to
insurers and intermediaries covering the various stages in the lifecycle of an insurance
product, commencing from solicitation, sale, policy servicing, to claims servicing and
grievance redressal.
With expansion of the insurance sector and more and more innovative insurance
products, in particular the Unit Linked Insurance Products coming into the life
insurance market, IRDA has been sensitive to the changing scenario and the challenges
that go with it. In particular, IRDA has been conscious of how these changes have been
impacting the policyholder and has taken several steps to bring in changes in the
regulatory framework to address various concerns of the policyholder.
IRDA had stipulated that insurers must provide the prospect/policyholder all relevant
information regarding amounts deducted towards various charges for each policy year
so that the prospect could take an informed decision. Insurers were required to provide
Benefit Illustrations giving two scenarios of interest rates, 6% and 10% respectively.
The prospect was required to sign on the illustration while signing the proposal form.
This was done to ensure transparency and proper disclosures by the insurers.
It is necessary to demystify complex products and ensure that proper product
disclosures are made to the prospect/policyholder. Towards this end, IRDA has already
come out with an exposure draft on need to issue Key Features Documents. Responses
received by the Authority are under examination and the initiative will be taken forward
further. Similarly, Needs Analysis is another initiative identified by IRDA as a step in
curbing wrong advice and mis-selling. An exposure draft on this requirement is already
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circulated and responses are coming in. Whilst on mis-selling, IRDA has identified
Distance Marketing as yet another area of concern and draft guidelines in this regard
have been put up as an exposure note for all stakeholders to respond to.
Mention must be made of what is perhaps the most important step that the Authority
has taken keeping in view the interests of policyholders. IRDA set up an exclusive
Consumer Affairs Department that focuses on consumer related issues and initiatives
including grievance redressal and consumer education through Insurance Awareness
Campaigns. With a view to creating a central repository of industry-wide insurance
grievance data and facilitating monitoring of disposal of grievances by insurers, IRDA
is on the verge of implementing the Integrated Grievance Management System (IGMS).
IGMS will not only help monitor the redress systems of insurers but also create agateway for policyholders to register complaints with insurance companies first and if
need be escalate them to the IRDA Grievance Cells. The Consumer Affairs department
goes beyond facilitation and works towards taking grievances to their logical end by
calling for explanations where required, carrying out enquiries and inspections etc. It is
proposed to make the institution of the Insurance Ombudsman handle all types of
complaints including those relating to policy sale and servicing rather than just
restricting it to claims. IRDA is also shortly making its Call Centre operational for
policyholders to lodge their grievances and also seek their status over phone/e-mail.
Further, keeping in view the need for efficient functioning of the insurance sector for
protecting the interests of policyholders, it is necessary to have reliable, timely and
accurate data relating to insurance. In order to ensure that proper data is collected,
processed and disseminated in the manner required, IRDA has set up an independent
body, namely the Insurance Information Bureau (IIB). The IIB has started functioning
and has already made good progress.
RECENT REGULATORY INITIATIVES
More recently, IRDA has taken a holistic view of the features of ULIPs and addressed
issues impacting the policyholders including the way such products are sold/bought;
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how ULIPs can be better financial instruments for providing risk coverage; how sale by
unlicensed personnel and several other malpractices existing in this market may be
curbed by plugging legal loopholes and tightening of the regulatory ambit; legal
mandate to initiate direct penal action against Corporate Agents etc. IRDA therefore
initiated exposure drafts covering these areas and received considerable feedback from
various stakeholders on the issues put forth. The issues were then presented to and
discussed with the members of the Insurance Advisory Committee as well as the
members of the Board of the Authority. The following regulatory initiatives have been
approved by the Authority during the Board meeting on 31.05.10.
Distribution channel related changes:
1. IRDA has amended the IRDA (Insurance Advertisements and Disclosure)Regulations to remove any scope for the involvement of unlicensed
personnel/entities in the sale of insurance products.
2. IRDA has amended the IRDA (Licensing of Corporate Agents) Regulations tofurther tighten the Code of Conduct of corporate agents to ensure that the
prospect does not deal with any unlicensed person. The Regulations have also
been amended to ensure that there is no scope for any kind of remuneration
other than commission where sale has been affected. This measure will reduce
the expenses of the insurer, thereby lowering premiums to be paid by the
policyholder.
3. Regulations for referrals: IRDA has also addressed the issue of Referrals bybringing out separate Regulations leaving no scope for misuse of the
system. Companies which wish to share their database of customers with
insurers would need to get approval from IRDA after having conformed to the
requirements as laid down in the Regulations. Further, there are restrictions on
the business activities of the referral company to ensure that there is no misuse
of the system. For instance, the referral company shall not be in any business of
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extending loans and advances or accepting deposits etc though there are
exceptions such as for Regional Rural Banks, Co-operative banks etc. The
Regulations cast obligations on the referral company as well as the insurer
including submission of data as and when called for by the Authority.
ULIP STRUCTURE RELATED CHANGES
1. Lock in period increased to five years:IRDA has increased the lock-in period for all Unit Linked Products from three
years to five years, including top-up premiums, thereby making them long term
financial instruments which basically provide risk protection.
2. Level Paying Premiums:Further, all regular premium /limited premium ULIPs shall have uniform/level
paying premiums. Any additional payments shall be treated as single premium
for the purpose of insurance cover.
3. Even Distribution of Charges:Charges on ULIPs are mandated to be evenly distributed during the lock in
period, to ensure that high front ending of expenses is eliminated.
4. Minimum Premium Paying Term Of Five Years:All limited premium unit linked insurance products, other than single premium
products shall have premium paying term of at least five years.
5. Increase In Risk Component:Further, all unit linked products, other than pension and annuity products shall
provide a mortality cover or a health cover thereby increasing the risk cover
component in such products.
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(i) The minimum mortality cover should be as follows:
Minimum Sum assured for age at
entry of below 45 years
Minimum Sum assured for age at entry of
45 years and above
Single Premium (SP) contracts: 125
percent of single premium.
Regular Premium (RP) including
limited premium paying (LPP)
contracts: 10 times the annualized
premiums or (0.5 X T X annualized
premium) whichever is higher. At no
time the death benefit shall be less than
105 percent of the total premiums
(including top-ups) paid.
Single Premium (SP) contracts: 110 percent
of single premium
Regular Premium (RP) including limited
premium paying (LPP) contracts: 7 times the
annualized premiums or (0.25 X T X
annualized premium) whichever is higher. At
no time the death benefit shall be less than 105
percent of the total premiums (including top-
ups) paid.
(In case of whole life contracts, term (T) shall be taken as 70 minus age at entry)
(ii)The minimum health cover per annum should be as follows:
Minimum annual health cover for
age at entry of below 45 years
Minimum annual health cover for age at
entry of 45 years and above
Regular Premium (RP) contracts: 5
times the annualized premiums or Rs.
100,000 per annum whichever is
higher,
At no time the annual health cover shall
be less than 105 percent of the totalpremiums paid.
Regular Premium (RP) contracts: 5times the
annualized premiums or Rs. 75,000 per annum
whichever is higher.
At no time the annual health cover shall be less
than 105 percent of the total premiums paid
6. Minimal Guaranteed Return For Pension Products:As regards pension products, all ULIP pension/annuity products shall offer a
minimum guaranteed return of 4.5% per annum or as specified by IRDA from
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time to time. This will protect the life time savings for the pensioners, from any
adverse fluctuations at the time of maturity.
7. Rationalisation Of Cap On Charges:With a view to smoothening the cap on charges, the capping been rationalized to
ensure that the difference in yield is capped from the 5th
year onwards. This will
not only reduce the overall charges on these products, but also smoothen the
charge structure for the policyholder.
DISCONTINUANCE OF CHARGES:
IRDA has also addressed the issue of discontinuance of charges for surrender of ULIPs.
The IRDA (Treatment of Discontinued Linked Insurance Policies) Regulations brought
out by IRDA in this regard ensure that policyholders do not get overcharged when they
wish to discontinue their policies for any emergency cash requirement. The Regulations
stipulate that an insurer shall recover only the incurred acquisition costs in the event of
discontinuance of policy and that these charges are not excessive. The discontinuance
charges have been capped both as percentage of fund value and premium and also in
absolute value. The Regulations also clearly define the Grace Period for different
modes of premium payment. Upon discontinuance of a policy, a policyholder shall beentitled to exercise an option of either reviving the policy or completely withdrawing
from the policy without any risk cover. Further, the regulations also enable IRDA to
order refund of discontinuance charges in case they are found excessive on enquiry.
These regulations are applicable to all new ULIP products approved by IRDA after
these regulations are notified.
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6. SBI ULIP
6.1 STATE BANK O OF INDIA
SBI Life Insurance Company Ltd has been launched SBI Life Smart Ulip plan.Smart ULIP is a
hybrid of premium security and guaranteed returns plan.This plan is available for a limited time.
SBI Life Insurance is a joint venture between State Bank of India and BNP Paribas Assurance.
SBI owns 74% of the total capital and BNP Paribas Assurance the remaining 26%. SBI Life
Insurance has an authorized capital of Rs. 2000 crore and a paid up capital of Rs 1000 crore.
SBI LifeSmart ULIP is the perfect answer to customer needs, and will give not only guarantee
on selected net assets over the first seven years, but also provides the added attraction to
participate in the market on its head. This is an investment cum insurance plan for market
returns. SBI Life manage the investment, by giving maximum room for growth while protecting
investments against adverse market conditions.
The plan also provides a convenient shorter premium paying term allows customers to pay
premiums for a limited period of either three or five years, and use the tax benefits u / s 80 C and
10 (10 D) of the income tax law.
6.2 VISION, MISSION AND VALUES
VISION
To be the most Preferred ULIP. SBI Life Insurance Company Ltd. manages the activities of SBI
unit linked insurance product in India. The ULIPs organization offers a variety of schemes to
Indian customers. SBI Life Insurance has several offices located across the country of India. The
corporate head office of SBI life Insurance is situated in Mumbai.
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MISSION
To emerge as the leading company offering a comprehensive range of life insurance and pension
products at competitive prices, ensuring high standards of customer satisfaction and world classoperating efficiency, and become a model life insurance company in India in the post
liberalizationlperiod.
VALUES
Trustworthiness Ambition Innovation Dynamism Excellence
6.3 CORPORATE OFFICE ADDRESS
SBI Life Insurance Co. Ltd,2nd Floor, Turner Morrison Bldg,
G. N. Vaidya Marg,
Fort, Mumbai 400 023.
NAME AND ADDRESS OF REGISTRAR
Shri. Rajkumar Raina
Head- Client Relationship SBI Life Insurance Co. Ltd.
Central Processing Centre Kapas Bhavan, Plot 3A,
Sector -10, CBD Belapur, Navi Mumbai400614
Tel: 022- 66456241
Email:[email protected]
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6.4DIRECTORS
SBI Life Insurance Co. Ltd.
1. Shri.GeethanjaliDeokar, Deputy Manager2. Shri.ParagGautam,Regional Manager3. Shri.PankajParashar,Assistant Manager4. Shri,Rajbahadur, Agency Manager
6.5PRODUCTS OF SBI LIFE INSURANCE
1. SBI Life - Smart PerformerIntroduction:
The equity market may have its ups and downs, but you now have a protective shield that will
safeguard your investments, while providing upside potential. SBI Life brings you Smart
Performer, a unique Unit Linked, Non Participating insurance product that offers you the twin
benefits of Higher than the Highest of the daily NAV Guarantee and the prospect of market
upside. Whats more, it also allows you to protect your gains through Automatic Rebalancing
facility and offers you a choice of Single and Limited Premium Payment options.
Key Features:
Guarantee at maturity based on 5% Higher than Highest Guaranteed NAV during thefirst seven years or prevailing NAV at Maturity, whichever is higher, subject to
conditions#.
Enjoy the best of both worlds - Guarantee only or Guarantee and Market Upside throughour unique Plan offerings - Secure Plan and Secure N Grow Plan respectively
Automatic Rebalancing to Lock-in your gains Convenience through single premium (SP) or 5 year Premium Paying Term (PPT) Life Insurance coverage with minimum Sum Assured of 10 times or 7 times of your
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Annualised Premium (AP), based on your age.
Liquidity through Partial Withdrawal(s) Option to customize the product with Accidental Death Benefit Attractive Tax benefits under the Income Tax Act, 1961, subject to conditions **
Product Snapshot:
Age at Entry* Min: 9 years Max: 65years
Age at Maturity Max: 75 years
Premium Payment Term SP or 5 years
Minimum Limited Premium
Amounts (X 100)
Minimum Single Premium (X
100)
Maximum Limited/Single
Premium Amounts
Yearly Rs 50,000
Half-yearly Rs 44,000Quarterly Rs 36,000
Monthly Rs 20,000
Rs 60,000
No limits
Policy Term 10 years from the start of the subscription period.
Premium Modes Single / Yearly / Half-yearly / Quarterly / Monthly
Sum Assured Age/PPT For 5 yr PPT For SP
Minimum Maximum Minimum Maximum
Below 45
Yrs
10 * AP 20*AP 1.25*SP 5*SP
Between45yrs &
60yrs
7 * AP 20*AP 1.25*SP 5*SP
61 yrs and
above
7 * AP 7 * AP 1.25*SP 1.25*SP
Plan Options 2 Plan Options:1. Secure Plan - All your funds would be invested in the
Daily Protect Fund
2. Secure N Grow Plan - 80% of your funds would beinvested in the Daily Protect Fund and 20% would be
invested in the Index Fund
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Benefits:
1. Maturity Benefit:On completion of Policy Term, Maturity Value will be paid.
Maturity value for the Daily Protect Fund will be calculated based on NAV which is
higher of:
Prevailing NAV as on date of Maturity OR Higher than Highest Guaranteed NAV: There will be an increment of 5%
to the Highest NAV achieved during the first seven years under the
Daily Protect Fund.
2. Death Benefit:
Higher of the Fund Value or Sum Assured##
is payable; subject to a minimum of
105% of the total premiums paid##
at the time of death. The death benefit is payable
only for inforce policies.
1. Accidental Death Benefit Option:Accidental Death Benefit: Provides additional death benefit if the death
occursoasoaoresultoofoanoaccident.
2. SBI Life - Unit Plus SuperIntroduction:
SBI LifeUnit Plus Super is a flexible non participating Unit linked insurance Plan, specially
designed to meet your changing requirements at various stages of life. With a wide array offunds, riders and other options, this product gives you the complete freedom to fulfill all your
investment and insurance needs. And thats not all; we now also offer you guaranteed additions
and choice of payment options, giving you far superior value.
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Key Features:
Guaranteed Additions# of up to 75% of one annual regular premium on aregular premium policy, for a 30 year policy term, subject to the Policy
being in force till the maturity date.
No Policy Administration fee for first 5 years for Regular and LimitedPremium Paying Term (LPPT) plans, thereby boosting your fund value
No Premium Allocation Charge from 11th year onwards Guaranteed Additions starting as early as 10th policy year onwards Enhanced investment opportunity through 9 varied Fund Options
including P/E Managed Fund, Index Fund & Top 300 Fund
Option to pay Regular/Limited/ Single Premium; Switch or Redirect yourpremiums
Flexible product with an option to increase/decrease your Sum Assuredfrom 6th year onwards
Life Insurance coverage, with minimum Sum Assured, based on your age
Liquidity through Partial Withdrawals. Option to customize the product with a wide range of riders: SBI Life -
Criti Care 13 Rider (UIN: 111A018V01), SBI Life - Accidental Death
Benefit Linked Rider (UIN: 111A019V01), SBI Life - Premium Payor
Waiver Benefit Rider (UIN: 111A017V01) and SBI Life - Income
Sustainer Rider (UIN: 111A020V01).
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Product Snapshot:
Age at Entry* Min: 7 years Max: 65 years
Age at Maturity 75 years
Policy Term Min. Term:
For Regular Premium (RP) -10 yrs, 15 to 30 years (both inclusive)
For Limited Premium Payment Term (LPPT) - 10 yrs, 15 to 30 years (both
inclusive)
For Single Premium (SP) - 5 years
Max. Term: For Regular/Limited/Single Premium Option30 years
Premium
Payment Term
For Regular PremiumSame as Policy Term
For Limited Premium Payment Term (LPPT) -
Policy Term PPT
10 year 5 or 8 years
15-30 years 5 or 8 or 10 years
For Single PremiumSingle Payment
PremiumAmount (X 100) Minimum MaximumFor RP Rs. 30,000 Rs. 1,50,000
For LPPT Rs. 40,000 Rs. 1,50,000
For SP Rs. 65,000 Rs. 1,50,000
Premium Modes Single /Yearly
Sum Assured Minimum:
For Regular Premium (RP) & LPPT -
For Ages below 45 yrs : Higher of {10 * Annual Premium (AP) or (0.5 *
Term * AP)}For Ages 45yrs & above: Higher of {7 * AP or (0.25 X Term X AP)}
For Single Premium (SP) -
For Ages below 45 yrs: 1.25 * SP
For Ages 45yrs & above: Fixed - 1.25 * SPMaximum:
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Particulars For Regular
Premium
For Limited
Premium
For Single
Premium
Entry Age Below45 yrs
45 yrs &above
Below45 yrs
45 yrs&
above
Below45 yrs
Sum Assured 20 * AP 20 * AP 20 * AP 15 *AP
5 * SP
Benefits:
1. Maturity Benefit:On completion of Policy Term, Fund Value will be paid.
2. Death Benefit:Higher of the Fund Value or Sum Assured
##
is payable; with a minimum of
105% of total basic premiums paid## till the time of death.
3. Rider Benefits: Criti Care 13 Rider: Provides lump sum amount to take care of 13
Critical Illnesses which include Cancer, Coronary Artery Bypass Graft
Surgery, Heart Attack, Heart Valve Surgery, Kidney Failure, Major
Burns, Major Organ Transplant, Paralysis, Stroke, Surgery of Aorta,
Coma, Motor Neurone Disease and Multiple Sclerosis.
Accidental Death Benefit Linked Rider: Provides additional deathbenefit if the death occurs as a result of an accident.
Premium Payor Waiver Benefit Rider: In the event of the death of theProposer, the cover for the Life Assured under the base policy continues
and the future premiums under the base policy, payable during the rider
term, will be paid by the Company.
Income Sustainer Rider: Provides additional benefit in the case of deathor in the case of Total & Permanent Disability due to Accident or
Sickness, whichever is earlier. A 25% of income sustainer benefit sum
assured is paid upfront and 1% of income sustainer benefit sum assured
is paid monthly in arrears for 10 years or till the end of the base policy
term (capped at a maximum of 30 years) whichever is higher.
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3. SBI Life - Saral Maha Anand
Introduction:
SBI Life - Saral Maha Anand, a unit linked insurance cum savings plan.
Getting a Life Insurance policy was never so easyNo medical examination, which means
hassle-free coverage. Enjoy the power of liquidity through partial withdrawals. All these benefits
at affordable costs, only for you.
Key Features:
No medical examination, Simple joining process#. Liquidity through Partial Withdrawals. Guaranteed Additions## of up to 30% of one annual premium, for a 20 year
policy term, subject to the Policy being in force till the maturity date.
Option to avail additional rider benefit under SBI Life - Accidental DeathBenefit Linked Rider (UIN: 111A019V01)
4 Fund options, to enjoy market related returns as per your risk appetite. Twin Benefit of Market linked returns & insurance cover.
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Product Snapshot:
Age at Entry ^ Minimum: 18 years Maximum: 55 years
Max. Age at Maturity 65 years
Policy Term 10 years / 15 years / 20 years
Minimum Premium
Amounts
(x100)
Yearly : Rs. 15,000/-
Half-yearly : Rs. 9,500/-
Quarterly : Rs. 5,500/-
Monthly : Rs. 2,000/-
Maximum Premium
Amounts
(x100)
Yearly : Rs. 29,000/-
Half-yearly : Rs. 14,500/-
Quarterly : Rs. 7,200/-
Monthly : Rs. 2,400/-
Premium Modes Yearly / Half-yearly / Quarterly / Monthly
Sum Assured Minimum:Age below 45 years : 10 AP
Age 45 years or above : 7 APMaximum:20 AP
Partial Withdrawals Upto 15% of Fund Value can be withdrawn each year, from 6thyear onwards, subject to conditions. One partial withdrawal is
free in a policy year.
Tax Benefits** Under Sec. 80C and Sec. 10(10D) of Income Tax Act,1961
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Benefits:
1. Maturity Benefit:On completion of Policy Term, Fund Value will be paid.
2. Death Benefit:Higher of the Fund Value or Sum Assured
*is payable; with a minimum of
105% of total basic premiums paid*till the time of death.
3. Rider Benefits:Accidental Death Benefit Linked Rider: Provides additional death benefit if the death
occursoasoaoresultoofoanoaccident.
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7. DATA ANALYSIS
1) Insurance policy taken:
This analysis shows that about 98% of investors were already had insurance policy taken, even
though a 2% of investors were not having insurance taken.
Yes
98%
No2%
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2) Percentage of people interested in different policy:
This analysis shows that the approximately % of people interested in various policy. Pension and
money back were more famous amongst customers of 30-40 years. Ulips were not that familiar
and did not have good response.
Pension plan
25%
Endowment plan
16%
Money back plan
25%
Ulips
7%
Children plan
16%
Term plan
11%
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3) Percentage of people interested in knowing more from agent:
This analysis shows that large amount of customers were interested to know through agents what
their policy were and what does it has.
Yes
72%
No
28%
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4) Percentage of people knowing use/importance of insurance:
This analysis shows that in this competitive world majority of people know the importance of
insurance and its need in this very unpredictable world.
Yes94%
No
6%
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5) Percentage of people facing problem due to service provided by insurers:
This analysis shows that the 14% of customers facing problems were very minute like calls dont
get received or policy not reaching in time. Whereas others are satisfied with insurers.
Yes
14%
No86%
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6) Percentage of people aware about:
This analysis shows that some left the whole space blank or vice a versa, customers taking policy
know majority the premium they pay or the sum of premium. Even the reason for taking
insurance tax deduction is well known.
Premium
16%
Tax deduction
15%
Terms &
condition12%Risk element
10%
Administration
charges
9%
Benefits of policy
11%
Death benefits
14%
Maturity benefits13%
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7) Percentage of people aware about ULIP policy:
This analysis shows that 54% of people aware about ULIP policy and 46% of people did notaware about ULIP policy.
Yes54%
No
46%
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8) Percentage of people thinking ULIP policy is:
This analysis shows that 62% of customers are getting beneficial of ULIP policies and 38% ofcustomers are not getting non-beneficial about ULIP policies.
Beneficial
62%
Non-beneficial
38%
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9) Compared to other traditional policies is ULIP policy more:
This analysis show that customer find that ULIP policy is more risky than other traditionalpolices.
Riskier
52%
Less risky
48%
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10) Percentage of people refers:
This analysis show that even though people knowing about ulip policies are taking mutual funds
as option for investment or they opt for gold.
ULIP42%
Mutual fund54%
Gold
2%
Other investment
2%
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8. FINDING, RECOMMENDATION AND CONCLUSION
8.1FINDINGS
Mainly people prefer pension plan, endowment plan, money back plan, children plan,term plan but the percentage of people invest in ULIP is low as compare to other
plans.
Mainly people prefer low growth safe return as compare to high growth some riskyreturn.
People mainly purchase life insurance policy for investment and then for tax-savingthey give 2
ndpreference to protection.
Many people did not aware about the premium, terms & conditions, risk elements,administration charges etc.
While studying the Researcher find that, customer is not aware about ULIP policybecause 54% of people aware about ULIP policy.
While studying the Researcher finds that, 62% of people are thinking that ULIPpolicy is beneficial and other 38% of customer thinks that this policy is not beneficial
for their investments.
While studying the Researcher find that, customer think that ULIP policy is morerisky than the other traditional policies which are less risky as compared to ULIP
policy.
While studying the Researcher find that, even though customer knows about ULIPpolicies are taking mutual funds as an option for investment still they opt for
separately for mutual funds, gold and other investments.
8.2RECOMMENDATION
Create awareness about Unit Linked Insurance Plan. Even today the product awareness of ULIP policy is much less among its segmented
people or potential customers .It should explore its distribution network to a more
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wider extent and make the customer understand the product in a more easier way
through its agents to its customer.
Advisors needed to be well aware of plans provided by other private players, not onlyof plans provided by LIC. So that they can provide valuable information to
customers, to switch them towards us instead of targeting only LIC only while
discussion with customers.
In case of (safe investment plan II), our policy administration charges are much morethan other competitors throughout the period, which dont allow us to perform more
efficiently and real growth of policy dont match with the growth rate for which we
are known in the market, our policy administration charges are based on premium
level.
ULIP is a costly instrument if taken as a short term investment plan and hence for thebenefit for the customer he should be made convinced for long term investment
through agents so that people do not take it as a former plan and think being deceived
by the company.
The marketing of these products should be done by the sales person by visiting todifferent companies and inform the employees of their company during the lunch
hour or breaks.
8.3CONCLUSIONIn India, insurance is generally considered as a tax-saving device instead of its other implied
long-term financial benefits. Indian people are prone to investing in properties and gold followed
by banks deposits. They selectively invest in shares also but the percentage is very small4.5%.
Even to this day, Life insurance market has become more vibrant. Smashing all doubts over the
decision to liberalize the industry, the overwhelming first year performance of the Indian
insurance sector is test case of a massive success story of private players entering into the
erstwhile state monopoly.
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BIBLIOGRAPHY
REPORTS, JOURNALS, NEWSPAPER, MAGAZIES:
1. Newsweek2. Business Today3. Business World
WEB SITES
www.moneycontrol.com
www.insuranceview.com
www.lifeinscouncil.org
www.iba.ie
www.statebankofindia.com
www.outlookindia.com
http://www.moneycontrol.com/http://www.moneycontrol.com/http://www.insuranceview.com/http://www.insuranceview.com/http://www.lifeinscouncil.org/http://www.lifeinscouncil.org/http://www.iba.ie/http://www.iba.ie/http://www.statebankofindia.com/http://www.statebankofindia.com/http://www.outlookindia.com/http://www.outlookindia.com/http://www.outlookindia.com/http://www.statebankofindia.com/http://www.iba.ie/http://www.lifeinscouncil.org/http://www.insuranceview.com/http://www.moneycontrol.com/8/3/2019 ulip (1)
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ANNEXURE
QUESTIONER FOR CUSTOMERS
Instructions to respondents
1. Please answer all the questions, i.e. to the maximum extent possible.2. Please be as accurate as possible in answering the questions.3. If you do not know an answer or it does not apply to you please write, Not Applicable (NA).4. Any suggestions will be welcomed and would be appreciated.
1. Do you have any insurance policy taken?
Yes No
2. What kind of life insurance you are interested in?
3. Would you like any insurance agent to provide you more information on your choice?
Yes No
4. Do you know the use/importance of insurance?
Yes No
5. Did you face any problems or consequences due to services provided by your insurer?Yes No
Pension plan ULIPs
Endowment plan Childrens plan
Money back plan Term plan
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6. Are you aware about?Premium rate Administration charges
Tax deductions Benefits of policy
Terms & conditions Death benefits
Risk element Maturity benefit
7. Are you aware about ULIP policy?Yes No
8. What do you think about ULIP policy?
Beneficial Non-
beneficial
9. Compared to other traditional policies are Ulips policies more?Riskier Less-
risky
10.What would you prefer for investment?Mutual
fund
Ulips
Personal Details:
1. Name:..2. Age: 18-25 26-35 36-60 60+3. Gender: Male Female
Thank You So Much For Your Valuable Time and Responses!!!
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QUESTIONER FOR SBI ULIP
1. What is Unit Linked Insurance Plan?2. What are the different ULIP plans provided by your Insurance company?3. Among which of it is sold more or has more demand?4. What was the reason for bringing such plans into market?5. Are ULIP plans more beneficial/ profitable than other traditional plans?6. Can you explain the procedure of how it works?7. What are the benefits of these plans?8. How do you confidence people to buy ULIP plans?9. What kind of response is an ULIP plan getting or the performance of ULIP plans in
market?10.What kind of challenges or completion is faced during marketing of this product?