Grand Project: "Product Stratagy of Private Life Insurance Company''

AAA
GRAND PROJECT
OF
PRODUCT STRATAGY OF PRIVATE LIFE INSURANCE COMPANY
SESSION: 2009-2011
SUBMITTED BY
Prof. POONAM ARORA Prof. KIRAN.R.K
ACKNOWLEDGEMENT
This project would have been incomplete without the guidance of my Professors in the institute. I am grateful to them for their guidance. My colleagues and other senior people in ICICI Prudential have also played a major role in the completion of this project. I am also obliged to the librarian in the institute who has provided me with the support. I needed for the purpose of this project. Last but not the least I am also thankful to all those people who have been supportive and patiently answered all my queries during a small survey which I conducted for studying in depth and collecting all the details required for making this project.
CONTENTS
Executive Summary
Objective of study
Overview of Insurance Industry Company Profile-ICICI Prudential Life Insurance Company Research Methodology Analysis of Data Comparative Analysis between ICICI Prudential and Other Private Players Market Share of ICICI Prudential Vis--vis other Private Players Findings Conclusion Suggestions Bibliography
EXECUTIVE SUMMARY
In this project I have done the comparison of popular plans of my company with other selected private Insurance Companies. Comparisons have been done on the basis of some valuable parameters like Unit Fund Value which is from investment point of view, savings, protection and many others. On the other hand, I have explained how the company is running at a great pace and occupying the highest market share in the market. Main emphasis has been laid on child plan, endowment plan which have been explained with respect to unit linked insurance or in other words ULIPs. Now at present insurance scenario has been changed, now more emphasis is on investment along with protection and saving benefits. For the analysis part of my project have gone through exploratory research which includes expert opinion which I have done through discussion with executives and mangers of other competitors companies and for that I have prepared a list of questions related to my project title.
OBJECTIVE OF STUDY
To know the difference as well as the competitive edge of ICICI PRUDENTIAL over other companies. To know how Unit Linked Insurance plan are increasing the market share of the company. To know why insurances scenario is now changing.
Overview Of Insurance Industry

With largest number of life insurance policies in force in the world, Insurance happens to be a mega opportunity in India. Its a business growing at the rate of 15-20 per cent annually and presently is of the order of Rs 450 billion. Together with banking services, it adds about 7 per cent to the countrys GDP. Gross premium collection is nearly 2 per cent of GDP and funds available with LIC for investments are 8 per cent of GDP. Yet, nearly 80 per cent of Indian population is without life insurance cover, health insurance and non-life insurance continue to be below international standards. And this part of the population is also subject to weak social security and pension systems with hardly any old age income security. This itself is an indicator that growth potential for the insurance sector is immense. A well-developed and evolved insurance sector is needed for economic development as it provides long-term funds for infrastructure development and at the same time strengthens the risk taking ability. It is estimated that over the next ten years India would require investments of the order of one trillion US dollar. The Insurance sector, to some extent, can enable investments in infrastructure development to sustain economic growth of the country. With a large capital outlay and long gestation periods, infrastructure projects are fraught with a multitude of risks throughout the development, construction and operation stages. These include risks associated with project implementation, including geological risks, maintenance, commercial and political risks. Without covering these risks the financial institutions are not willing to commit funds to the sector, especially because the financing of most private projects is on a limited or non- recourse basis. Insurance companies not only provide risk cover to infrastructure projects, they also contribute long-term funds. In fact, insurance companies are an ideal source of long-term debt and equity for infrastructure projects. With long-term liability, they get a good assetliability match by investing their funds in such projects.
IRDA regulations require insurance companies to invest not less than 15 percent of their funds in infrastructure and social sectors. International Insurance companies also invest their funds in such projects. Insurance is a federal subject in India. There are two legislations that govern the sectorThe Insurance Act- 1938 and the IRDA Act- 1999.
Life Insurance Market

The Life Insurance market in India is an underdeveloped market that was only tapped by the state owned LIC till the entry of private insurers. The penetration of life insurance products was 19 percent of the total 400 million of the insurable population. The state owned LIC sold insurance as a tax instrument, not as a product giving protection. Most customers were under- insured with no flexibility or transparency in the products. With the entry of the private insurers the rules of the game have changed. The 12 private insurers in the life insurance market have already grabbed nearly 9 percent of the market in terms of premium income. The new business premiums of the 12 private players have tripled to Rs 1000 crore in 2002- 03 over last year. Meanwhile, state owned LIC's new premium business has fallen. Innovative products, smart marketing and aggressive distribution. That's the triple whammy combination that has enabled fledgling private insurance companies to sign up Indian customers faster than anyone ever expected. Indians, who have always seen life insurance as a tax saving device, are now suddenly turning to the private sector and snapping up the new innovative products on offer. The growing popularity of the private insurers shows in other ways. They are coining money in new niches that they have introduced. The state owned companies still dominate segments like endowments and money back policies. But in the annuity or pension products business, the private insurers have already wrested over 33 percent of the market. And in the popular unit-linked insurance schemes they have a virtual monopoly, with over 90 percent of the customers.
The private insurers also seem to be scoring big in other ways- they are persuading people to take out bigger policies. For instance, the avaerage size of a life insurance policy before privatisation was around Rs 50,000. That has risen to about Rs 80,000. But the private insurers are ahead in this game and the average size of their policies is around Rs 1.1 lakh to Rs 1.2 lakh- way bigger than the industry average. Few of the Life insurance policies are:
Whole life policies - Cover the insured for life. The insured does not receive money while he is alive; the nominee receives the sum assured plus bonus upon death of the insured.
Endowment policies - Cover the insured for a specific period. The insured receives money on survival of the term and is not covered thereafter.
Money back policies - The nominee receives money immediately on death of the insured. On survival the insured receives money at regular intervals during the term. These policies cost more than endowment with profit policies.
Annuities / Children's policies - The nominee receives a guaranteed amount of money at a pre-determined time and not immediately on death of the insured. On survival the insured receives money at the same pre-determined time. These policies are best suited for planning children's future education and marriage costs.
Pension schemes - are policies that provide benefits to the insured only upon retirement. If the insured dies during the term of the policy, his nominee would receive the benefits either as a lump sum or as a pension every month.
Since a single policy cannot meet all the insurance objectives, one should have a portfolio of policies covering all the needs.
Unit Linked Insurance Plans

The transparency makes the product more competitive. So if you are willing to bear the investment risks in order to generate a higher return on your retirement funds, ULIPs are for you. Traditional with profits policies too invest in the market and generate the same returns prevailing in the market. But here the insurance company evens out returns to ensure that policyholders do not lose money in a bad year. In that sense they are safer. ULIPs also offer flexibility. For instance, a policyholder can ask the insurance company to liquidate units in his account to meet the mortality charges if he is unable to pay any premium installment. This eats into his savings, but ensures that the policy will continue to cover his life.
Are ULIPs Similar To Mutual Funds?

In structure, yes; in objective, no. Because of the high first-year charges, mutual funds are a better option if you have a five-year horizon. But if you have a horizon of 10 years or more, then ULIPs have an edge. To explain this further a ULIP has high first-year charges towards acquisition
As a result, they find it difficult to outperform mutual funds in the first five years. But in the long-term, ULIP managers have several advantages over mutual fund managers. Since policyholder premiums come at regular intervals, investments can be planned out more evenly. Mutual fund managers cannot take a similar long-term view because they have bulk investors who can move money in and out of schemes at short notice.
Why do insurers prefer ULIPs?

Insurers love ULIPs for several reasons. Most important of all, insurers can sell these policies with less capital of their own than what would be required if they sold traditional policies. In traditional with profits policies, the insurance company bears the investment risk to the extent of the assured amount. In ULIPs, the policyholder bears most of the investment risk. Since ULIPs are devised to mobilize savings, they give insurance companies an opportunity to get a large chunk of the asset management business, which has been traditionally dominated by mutual funds.
10
ICICI Prudential Life Insurance Vision

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premier financial powerhouse and Prudentialdential plc, a leading international financial services group headquartered in the United Kingdom. ICICI Prudentialdential was amongst the first private sector insurance companies to begin operations in December 2000 after receiving approval from IRDA. ICICI Prudential's equity base stands at Rs. 9.25 billion with ICICI Bank and Prudential policie holding 74% and 26% stake respectively. The company has a network of about 56,000 advisors (Approx); as well as 7 banc assurance and 150 corporate agent tie-ups. For the past four years, ICICI Prudentialdential has retained its position as the No. 1 private life insurer in the country, with a wide range of flexible products that meet the needs of the Indian customer at every step in life.
Promoters:
ICICI and Prudentialdential came together in 1993 to form Prudentialdential ICICI Asset Management Company, which has today emerged as one of the leading mutual funds in India. The two companies bring together two of the strongest financial service brands in Asia, known for their professionalism, excellent quality of service and long term commitment to YOU. Riding on the success of this relationship, the two companies joined hands once more in 2000, to form ICICI Prudentialdential Life Insurance, with a commitment to provide leading-edge life insurance solutions. ICICI Bank has 74% stake in the company, and Prudentialdential plc has 26%.
11
Prudential PLC
Established in 1848, Prudentialdential plc is a leading international financial services company in the UK, with around US$250 billion funds under management and more than 16 million customers worldwide. Prudentialdential has brought to market an integrated range of financial services products that now includes life assurance, pensions, mutual funds, banking, investment management and general insurance. In Asia, Prudentialdential is UK''s largest life insurance company with a vast network of 22 life and mutual fund operations in twelve countries - China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand and Vietnam. Since 1923, Prudentialdential has championed customer-centric products and services, supported by over 60,000 staff and agents across the region.
Distribution in India
ICICI Prudentialdential has one of the largest distribution networks amongst private life insurers in India, having commenced operations in 69 cities and towns in India. These are: Agra, Ahmedabad, Ajmer, Allahabad, Amritsar, Aurangabad, Bangalore, Bareilly, Bhatinda, Bhopal, Bhubhaneshwar, Calicut, Chandigarh, Chennai, Coimbatore, Dehradun, Durgapur, Faridabad, Goa, Guntur, Gurgaon, Guwahati, Gwalior, Hyderabad, Hubli, Indore, Jaipur, Jalandhar, Jamnagar, Jamshedpur, Jodhpur, Kanpur, Karnal, Kochi, Kolkata, Kolhapur, Kota, Kottayam, Lucknow, Ludhiana, Madurai, Mangalore, Meerut, Mumbai, Mysore, Nagpur, Nasik, Noida, New Delhi, Patiala, Pune, Raipur, Rajkot, Ranchi, Rourkela, Salem, Siliguri, Surat, Thane, Thrissur, Trichy, Trivandrum, Udaipur, Vadodara, Vapi, Varanasi, Vashi, Vijayawada and Vizag. The company has seven bancassurance tie-ups, having agreements with ICICI Bank, Federal Bank, South Indian Bank, Bank of India, Lord Krishna Bank and some cooperative banks, as well as over 160 corporate agents and brokers. It has also tied up with organisations like Dhan for distribution of Salaam Zindagi, a policy for the socially and economically underprivileged sections of society. 12
ICICI Prudentialdential has recruited and trained about 50,000 insurance advisors to interface with and advise customers. Further, it leverages its state-of-the-art IT infrastructure to provide superior quality of service to customers.
Unit Value Unit Values of different Plan options as on 30-04-2005 Plan Protector (Income) Plan* Balancer (Balanced) Plan* Maximiser (Growth) Plan* Pension Maximiser (Growth) Plan # Pension Balancer (Balanced) Plan # Pension Protector (Income) Plan # Group Gratuity/Superannuation Balanced Fund Group Gratuity/Superannuation Income Fund Group Gratuity/Superannuation Short Term Debt Fund Group Superannuation Growth Fund Group Gratuity Capital Guarantee Fund Maximiser (Growth) Fund II ^ Preserver (Short Term) Fund * ^ Balancer (Balanced) Fund II ^ Protector (Income) Fund II ^ Pension Preserver (Short Term) Fund # ~ Pension Maximiser (Growth) Fund II ~ Pension Protector (Income) Fund II ~ Pension Balancer (Balanced) Fund II ~ Invest Shield Life Invest Shield Cash Invest Shield Pension Unit Value (Rs./unit) 13.7494 17.35 23.4 23.09 16.18 12.3344 12.65 11.1562 11.013 12.29 10.4905 12.43 10.4767 10.93 10.0831 10.4303 12.83 10.088 11.12 9.99 10.1191 9.99
Insurance Plans
Life is unpredictable. But in face of adversity, our responsibilities towards our parents, children and loved ones need not be compromised. Insurance planning equips you to smooth out the uncertainties and adversities that life might send your way, so that the best that life has to offer, secure in the knowledge that your beloved ones are well provided for.
13
ICICI Prudential offers a complete range of insurance products:
1. Protection Plans 2. Savings Plans 3. Child Plans 4. Investment Plans 5. Retirement Plans 6. Group Plans 7. Keyman Plans 8. Riders
Protection Plans
Life Guard ICICI Prudentialdential Life Insurance offers LifeGuard - a set of pure protection plans. Choose from amongst three different product structures to insure your life and provide total security to your family, at a very affordable cost. Level Term Assurance with return of premium On death the entire sum assured will be paid.
14
On maturity, all the premiums paid will be returned.
Savings Plans
ICICI Prudentialdential offers a variety of policies that give you the benefits of protection and the opportunity to save for important assets or events, like a home, a car or a wedding.
InvestShieldLife
A regular premium unit-linked insurance plan with an assurance of Capital Guarantee and the facility of extended insurance cover.
Invest Shield Gold

A unit-linked insurance plan with an assurance of Capital Guarantee*, which offers you the benefit of a limited premium payment and coverage term.
15
Cash Plus
An insurance plan that gives added protection savings, multiple options, plus the power of liquidity. Retirement Plans Life Expectancy has been rising rapidly and today you can expect to live longer than your earlier generations. For you, this increase will mean a longer retirement life, stretching into a couple of decades. ICICI Prudentialdential presents Retirement Solutions that combine the best of insurance and investment. These solutions are developed to ensure your peace of mind. Choose from amongst 5 retirement plans:
Invest Shield Pension

A regular premium unit-linked pension plan with an assurance of Capital Guarantee
Life Time Pension II

A regular premium linked pension plan that gives you the freedom to choose the amount of premium, and invest in market-linked funds, to generate potentially higher returns.
Life Link Pension II

A single premium linked pension plan that gives you the freedom to choose the amount of premium, and invest in market-linked funds, to generate potentially higher returns.
Secure Plus Pension

A regular premium pension plan that gives you the flexibility to choose between 3 levels of sum assured for the same level of total annual contribution.
16
Forever Life
A regular premium pension plan that helps you save for your retirement while providing you with life insurance protection. The capital guarantee is applicable only on the invested premium and the declared bonus interests. Choose from 5 Annuity options at the time of investing 1)Life Annuity 2)Life Annuity with return of purchase price 3)Life Annuity guaranteed for 5, 10, 15 years 4)Joint Life, Last Survivor without return of purchase price 5)Joint Life, Last Survivor with return of purchase price
Child Plans
SmartKid Education Plans As a responsible parent, you will always strive to ensure a hassle-free, successful life for your child. However, life is full of uncertainties and even the best-laid plans can go wrong. Heres how you can give your child a 100% safe and assured tomorrow, whatever the uncertainties. SmartKid is especially designed to provide flexibility and safeguard your childs future education and lifestyle, taking all possibilities into account. Choose from amongst a basket of 4 plans: 1. Smartkid Regular Premium 2. Smartkid unit-linked regular premium 3. Smartkid unit-linked regular premium II 4. Smartkid unit-linked regular premium III
17
All these plans offer you: Financial Benefits: Regular payments at critical stages in your childs life, like Board examinations, Graduation and Post-graduation. Total peace of mind, even if you are not around Sum Assured is paid immediately: Ensures that your loved ones stay financially secure, even in your absence. All future premiums are waived: Ensuring that your family is not financially burdened in your absence. Policy benefits continue: The educational benefits of the policy continue, ensuring that your child can realize his or her dreams without any hassles. Development Allowance: SmartKid guarantees regular income to secure your childs educational career and also ensures his or her all-round development, for a nominal additional amount. The Income Benefit Rider takes care of this through an annual payment of 10% of the sum assured, to your child, till the maturity of the policy, in the unfortunate event of the death of the parent. All SmartKid plans can be enhanced with the Accident & Disability Benefit Rider and Income Benefit Rider.You can also an Accident Benefit Rider to a SmartKid Regular Premium policy,and a Waiver of Premium Rider (WOP) to SmartKid unitlinked regular premium policy.
Investment Plans
LifeLink II is a unique plan that combines the security of a life insurance policy with the opportunity of enjoying high returns on your investments, without the market risks compromising on the protection of your family! Death Benefit: The Sum Assured under the product has 2 options, either 500% of the initial premium or 105% of the initial premium. In the event of an unfortunate death, the beneficiary will receive higher of the value of units or the initial death benefit, less any
18
withdrawals.
Withdrawal Benefit: One can make partial withdrawals from the accumulated value of the policy after completion of one policy year. Flexibility: Choose from four fund options, based on your investment objective and risk appetite. If at a later stage your financial priorities change, you can switch between the various fund options, absolutely free, 4 times a year.
Keyman Insurance Plans

A keyman is an individual who directly affects the profitability and the continuity of a business and whose absence may have an adverse effect on the health and continuity of the business. Keyman insurance is a life insurance policy taken by the company on the life of such a key person. The objective of the keyman insurance is to provide the company with money so that the financial losses to the company can be protected, in absence of the keyman. The aim is to indemnify the company of these losses and to allow business continuity. All premiums paid for securing a keyman life insurance policy are treated as business expenditure u/s 37 (1).
Group Solutions
In an era of competitive parity, the only asset that makes a decisive difference between corporate success and failure is the quality of human capital. Employee benefits have proven to be an excellent tool to optimize the retention of talent and improve an organisations bottomline. The quality of an organisations employee benefits establishes and maintains a company's image as a caring employer. Optimum care of employees is a long-term investment that results in a sustained competitive advantage for an organisation in the times to come.
19
Group Term Assurance: Helps provide affordable cover to members of a group. Group Gratuity Plan: Helps employers fund their statutory gratuity obligation in a flexible and hassle-free manner Group Superannuation Plan: A flexible scheme (defined benefit and defined contribution) to provide a retirement kitty for each member of the group. Group Term Assurance ICICI Prudential's flexible group term solution helps provide affordable cover to members of a group. The cover could be uniform or based on designation/rank or a multiple of salary, and can be extended to all employees between the ages of 18 and 65 years. The benefit under the policy is paid on the event of the members death to the beneficiary nominated by the member. It is a one-year renewable policy where one master policy covers all proposed employees comprising the group, with a minimum group size of 25 persons. New members can join the group and outgoing members can leave the group at any point during the policy term. Group Grauity Plan ICICI Prudential's group gratuity plan helps employers fund their gratuity obligation in a scientific manner. Employers can avail of the tax benefits as applicable to approved gratuity funds. The plan can also be customized to structure schemes that can provide benefits beyond the statutory obligations. Group Superannuation Plan ICICI Prudentials Superannuation Scheme (for both Defined Benefit and Defined Contribution funds) offers substantial benefits to both employers and employees. The employer and employee can avail of tax benefits applicable to an approved superannuation trust. The scheme will provide for a retirement fund for each participating employee. An
20
employee would be able to choose from various annuity options or opt for partial commutation of corpus at retirement.
Investment Plans
You can hedge your investments with investment like LifeLink II vehicles that provide you with a diversified portfolio. Savings Plans Endowment policies are a good way of putting aside your savings today for a future goal whether it's to buy a house in India or fund your entrepreneurial vision. Our savingsoriented policies are designed to make your savings grow and have them available to you at the end of a fixed number of years or through the term of the plan. Retirement Plans Many of us picture ourselves enjoying the fruits of our labour after retirement - going on a dream vacation, or helping our child's career take wing. Financing all this will depend on our personal savings and investments, so its important to save for the future from today. Our retirement plans are designed to help you systematically save, so that you can enjoy all the things you have dreamed of when you retire.
Riders
ICICI Prudentialdential gives you the freedom to form your very own comprehensive insurance policy by adding the rider benefits to the basic life insurance policy. Add from the following list of benefits to increase the scope of your policy, at a nominal cost.
21
Critical Illness Benefit Rider
This rider provides protection against 9 critical illnesses, namely: Major organ transplants, Complete renal failure, Stroke, Paralysis, Heart attack, Valve replacement surgery, Major surgery of the aorta, CAGS (Bypass) and Cancer .
Major Surgical Assistance Rider
This rider provides assistance to the policyholder against 43 surgical procedures. These surgical procedures are divided into 3 categories and the extent of assistance provided depends on the type of procedure.
Accident & Disability Benefit Rider
Benefits payable on death due to an accident Accident & Disability Benefit rider is available with Save n Protect, Cashbak, SmartKid Child Plans, Premier Life, LifeTime, LifeTime II, LifeTime Pension II, ForeverLife, SecurePlus, CashPlus, SecurePlus Pension, LifeGuard ROP, LifeGuard WROP, Group Term Plan, InvestShield Life, InvestShield Cash, InvestShield Gold and InvestShield Pension . In case of Lifetime II, Lifetime Pension II, SecurePlus, CashPlus, LifeGuard ROP and LifeGuard WROP, the waiver of premium benefit is not available. Accident Benefit Rider If the policyholder dies due to an accident, 100% of the rider sum assured is paid in addition to the basic sum assured.
22
RESEARCH METHODOLOGY
EXPLORATORY RESEARCH Expert Opinion (Primary data).. Had a direct talk with executives and HR persons (Training department) of the competitors companies and for that I have prepared a list of questions which helped me in knowing the details of their policies as well as their investment structure. This method was direct and was more beneficial from my projects point of view. Secondary data: Through various books, magazines, newspapers, journals and websites.
23
COMPARATIVE ANALYSIS OF DATA
24
Comparative Study Between Various Policies of ICICI Pudential Life Insurance with Other Private Market Players, namely:
1. HDFC Standard Life Insurance 2. Birla Sun Life 3. Aviva Life Insurance
ICICI Prudential Vs. HDFC Standard Life Insurance

ICICI Prudential PRUDENTIAL Life) Objective
CashBak
(ICICI
Money Back Policy (HDFC - Standard Life) Objective
Policy is suitable for people who wish to have combined benefit of savings and liquidity all the while having an insurance protections. Policy provides for the periodic financial requirements of an individual with the added benefit of insurance protection.
The policy is suitable for people who wish to receive amounts at regular intervals during one's career to meet contingencies or for re-investment, all the while having life insurance protection.
Salient Features
Salient Features
It a money back plan where in the lump sum amounts are payable to life assured at regular periodic intervals. Premiums are payable through out the term of the policy or till earlier death Guaranteed additions and bonus are payable under the policy In case of death of the life assured within the term, the total sum insured along with guaranteed additions and bonus are paid to the nominee, irrespective of earlier survival benefits Period of the policy can be 15 or 20 years. Policyholder can opt for the rider at the time of taking the policy at a marginally additional premium. Riders available are a. Accident & Disability benefit b. Critical Illness Benefit c. Major Surgical Assistance and d. Level Term Insurance
A policy where lump sum amounts are paid to the life assured at periodic intervals on survival In case of death of the life assured within the term, the total sum insured is paid to the nominee, irrespective of earlier survival benefits Bonus is payable under this scheme.
25
Benefits
Benefits
On Survival On Survival Policy Survival Payment as a % of At the end of Basic sum assured plus any bonus Term basic sum assured additions less the previous cash lump 3 10% sums is provided. 6 15% Schedule of cash lump sum (as a % 9 20% of basic sum assured) 12 25% No of years from policy 50% plus guaranteed date 15(Maturity) additions plus vested 5 10 15 20 25 bonuses. 10 40% 4 10% of sum assured 15 30% 30% 8 15% 20 25% 25% 25% 25 20% 20% 20% 20% 12 20% 30 15% 15% 15% 15% 15% 16 25% 50% plus guaranteed 20 (Maturity) additions plus vested bonuses. On Death:
On Death
In case of death of the life assured within the term, the total sum insured along with guaranteed additions and bonus is paid to the nominee, irrespective of earlier survival benefits
Basic sum assured plus any bonus additions is provided irrespective of earlier survival benefits. Apart from the basic benefit of receiving insurance benefits at regular intervals within the term of the policy, benefits depend on the type of the plan chosen. However premiums are accordingly charged for availing these benefits. The plans available are: Benefits available Basic Benefits Basic Benefits + Double Sum Assured (DSA) Basic Benefits + Accidental Death Benefit (ADB) Basic Benefits + Waiver of Premium (WOP) Basic Benefits + Waiver of Premium (WOP)+ Double Sum Assured (DSA)
Riders available
Plan Classic Accident & disability benefit Value a. Waiver of future premiums Plan A b. 10% of SA each year for 10 years. c. Additional SA, if death is due to an Value accident while traveling as a passenger Plan B in train or bus Value Critical illness benefit Plan C 9 medical conditions are covered. On Value admission of a claim, full SA + GA + VB is Plan D paid and policy contract terminates with all
26
riders ceased. Claim under this rider is not Value admissible during first six months of the Plan E policy.
Basic Benefits+ Waiver of Premium (WOP)+ Critical Illness (CI)
Major Surgical Assistance 43 surgical procedures are covered 1. Major Surgical Procedure 50% of SA 2. Intermediate Surgical Procedure - 30% of SA 3. Minor Surgical Procedure 20% of SA Claims can be made for more than one surgical procedure, subject to a maximum of 50% of SA, claim under this rider is not allowed during first 6 months of the policy Level Term Insurance Additional cover in the event of death happening within the term.
Other Conditions

Other Conditions Classic Min.age entry Max.age entry Max.age expiry

Minimum amount of Sum Insured - Rs. 50,000 Minimum age at entry 16 years Maximum age at entry 55 years
Value Value Value Plan Plan A Plan B C,D and E 12 60 75 18 60 75 18 55 65 18 50 60
at at at
Minimum term: 10 years Maximum term: 30 years
Save 'n' Protect (ICICI PRUDENTIAL Life) 27
Endowment Assurance Plan (HDFC Standard Life)
Objective
Objective
It is an ideal plan for persons who wish to accumulate savings on a regular basis, while having insurance protection.
The policy provides for family protection as well as old age provision. This policy is suitable for all categories of people
Salient Features It is basically an Endowment Assurance Plan with deferred participation in profits and extended life cover. It is a fixed term plan - combination of both savings & life cover.
Salient Features Lump sum amount is payable on survival to maturity or on death, whichever is earlier. Premiums are payable till the end of payment term chosen or death which ever is earlier. However in case of plans where Waiver of Premium benefit has been availed, premiums are not payable during the period of disablement. Premiums paid under the policy are eligible for tax rebate under section 88 of Income Tax Act 1961. Benefits under the policy can be enhanced by opting for riders. Riders are the additional benefits that can be availed by paying marginal additional premium. Riders available under the plan are:
1. Double Sum Assured 2. Accidental Death Benefit 3. Waiver of Premium 4. Critical Illness Benefits
Benefits On Death
On death occurring within the term. 1. Full SA plus GA & vested bonuses are payable On survival
Basic Sum Assured + Bonus
is
28
1. Full SA plus GA plus vested bonuses during the full term 2. Additionally, one gets a free life cover for 5 years, from date of maturity, for 50% of original sum assured. No Evidence of health is required and no premium needs to be paid for this. Riders available
payable On Survival
Basic Sum Assured + Bonus is payable Riders
Accident & disability benefit a. Waiver of future premiums b. 10% of SA each year for 10 years. c. Additional SA, if death is due to an accident while travelling as a passenger in train or bus Critical illness benefit
Double Sum Assured (DSA): This benefit provides for an additional amount equivalent to the basic sum assured in case of unfortunate death.
9 medical conditions are covered. On admission of a claim, full SA + GA + VB is paid and policy contract terminates with all riders ceased. Claim under this rider is not admissible during first six months of the policy.
Accidental Death Benefit (ADB): This benefit provides for an additional amount equivalent to the basic sum assured in case of death due to accident.
Major Surgical Assistance 43 surgical procedures are covered 1. Major Surgical Procedure - 50% of SA 2. Intermediate Surgical Procedure - 30% of SA 3. Minor Surgical Procedure - 20% of SA
Waiver of Premium (WOP): By the virtue of this benefit all future premiums stand waived in case of total disablement of the life assured. The waiver applies during the period of total disability.
Claims can be made for more than one surgical procedure, subject to a maximum of 50% of SA, claim under this rider is not allowed during first 6 months of the policy
Critical Illness (CI): This benefit will provide for an additional amount equivalent to the basic sum assured on insured contracting to any of the six specified critical illnesses. Critical illness benefit will be paid on insured surviving 30 days from the date of claim. This benefit comes to an end once the claim is paid, however basic policy continues.
29
Level Term Insurance Additional cover in the event of death happening within the term.
When one avails extend life cover, no riders are available. Other Conditions

Other Conditions

Minimum age 15 Maximum age 60 Maximum Maturity age 70 Minimum SA Rs.20, 000/Minimum Term 10 years
Minimum term: 10 years Maximum term: 30 years The minimum and maximum ages at entry under the plan are as follows: Min.age at entry CI DSA ADB WOP 18 18 55 60 70 75 18 55 65 18 50 60
Basic Loans can be availed under the Plan policy and loan interest is Min.age at chargeable. 12 entry Max.age at 60 entry Max. age at 75 maturity
ICICI Prudential Life Time (ICICI PRUDENTIAL Life)
Flexible Bond - HDFC Standard Life Single Premium Whole of Life
Objective This policy is a long-term market linked total protection plan. The plans offer protections for life at the same time allows the policyholder to get market linked returns. It is a single product combining the benefits of
Objective It is a single premium policy providing risk cover, liquidity and returns.
30
both an investment product and insurance plan. This apart, the product offers a lot of flexibility. Salient Features Death benefit will be a multiple of premium paid. Premium paid will be invested in the fund chosen(Maximiser, Balancer or Protector fund)* after deducting mortality charges and administrative expenses. Policyholder has the option to vary the amount of insurance protection vis--vis investment while maintaining the same premium. The returns depend on the plan chosen- growth, balanced and income and one can switch from one fund to another depending on the financial priorities. Once in a year switching is done free of cost. Benefits can be enhanced by adding Accident & Disability Benefit, Major Surgical Assistance, Critical Illness benefits at a nominal extra premium. Entry into the plan will be based on the Unit Value applicable on the date of policy issue. The amount of premium towards death benefit decreases with the increase in the value of the units. One has the flexibility to increase the death benefit by 25% subject to a maximum of Rs.100,000, every third year upto 3 times, without any underwriting. Death benefit can be increased beyond this limit with underwriting. Apart from the above the policy holder can increase the death benefit at different stages of life such as Marriage, birth of first child and birth of second child. This is irrespective of when the last increase was done. One can decrease the death benefit in the multiple of Rs.100,000. However a minimum death benefit of Rs.100,000 has to be maintained. Policy holder has the option to increase the investment by the way of top ups with a lump sum payment at any time If after at least 3 years premium payments are made and then one is unable to pay the subsequent premiums, the cover under the policy will continue and the premiums towards the life cover and riders will be debited from the unit fund.

Salient Features It is a single premium policy. Premiums paid under the policy are invested in the company's(HDFC Standard Life) With Profit Fund Policy holder has the option to receive sum assured + bonus on 10th, 15th, 20th and subsequent five-yearly anniversaries. Once the money has been taken policy ceases. The company will declare a compound reversionary bonus every year which will be added to the policy on its anniversary. In additions to the bonus, the company, based on its performance may pay terminal bonus on surrender or death or on guaranteed dates. Policyholder can surrender the policy anytime after it has been in force for a period of 6 months.
No medical examination is required to take this policy
Unit value is calculated bi-weekly on a forward pricing basis every Tuesday and Friday
31
Unit value = Market/ Fair Value of the relevant Plan's Investments plus Current Assets less Current Liabilities and Provisions -----------------------------------------------------------------------Number of Units outstanding under the relevant Plan
*The returns depend on the plan chosen. Maximiser (Growth) Plan If high growth is your priority this is the plan for you. You can enjoy long-term capital appreciation from a portfolio that is invested primarily in equity and equityrelated securities.
Protector (Income) Plan If on the other hand your priority is steady returns, you can opt for the Income Plan. Here you can accumulate a steady income at a low risk across a medium to long term period.
Balancer (Balanced) Plan If you prefer a balance of growth and steady returns choose our Balanced Plan. This would ensure that your portfolio is invested in equity and equity-linked securities as well as in fixed income securities.
Benefits On Death In the event of death of the policyholder, beneficiaries will be paid the higher of death benefit and value of the units.
Benefits On survival There is no maturity period and policy holder has the option to receive sum assured + bonus on 10th, 15th, 20th and subsequent five-yearly anniversaries. Once the money has been taken policy ceases.
On survival There is no maturity period and policy holder has the option to withdraw units under the plan at anytime after the policy has been in force for three years.
32
Riders Accident & disability benefit 10% of SA each year for 10 years in case of permanent total disability Additional SA, if death is due to an accident while travelling as a passenger in train or bus
On Death Provided that the policy is in force, sum assured secured by the premium plus attached bonus is payable.
Critical illness benefit 9 medical conditions are covered. On admission of a claim, sum assured under the rider is paid and the rider comes to an end. Claim under this rider is not admissible during first six months of the policy.
Major Surgical Assistance
43 surgical procedures are covered 1. Major Surgical Procedure - 50% of SA 2. Intermediate Surgical Procedure - 30% of SA 3. Minor Surgical Procedure - 20% of SA
Claims can be made for more than one surgical procedure, subject to a maximum of 50% of SA, claim under this rider is not allowed during first 6 months of the policy
Other Conditions

Other Conditions Minimum sum assured :Rs. 25,000 Maximum sum assured:Rs. 5,00,000 Minimum age at entry : 18 years
Minimum age at entry: 0 years Maximum age at entry: 60 years (completed years) Minimum premium : Rs.18,000 per annum Minimum sum assured under riders : Rs.100,000 Maximum Sum assured under riders : Rs.10,00,000
Following are the charges applicable under the policy: The initial administrative charges in the 1st year would be 20% of the premium, for premium amounts less than Rs.50,000/-. For premiums equal to or more than Rs.50,000/-, it is 18% of the premium. Other Charges: Annual administrative charges of 1.00% p.a. of net assets for protector (Income) and 1.25% p.a. for Maximiser (Growth) and Balancer (Balanced)
Maximum entry : 70 years
age
at
33
options. Annual investment charge of 0.5% p.a. of the net assets for Protector and 1% p.a. of the net assets for Maximiser and Balanced. Mortality charge towards death benefit Initial charges of 1% on Top-ups One free switch every year after which a switching fee of 1% of the switching amount will be levied. Any unutilized free switch cannot be carried forward. Note: In case the unit value is inadequate to cover charges, the policy will terminate.
ICICI Prudential Smart Kid Objective
Children's Plan (HDFC) Objective
It is a plan that provides guaranteed educational benefits to the child along with life insurance cover and hence is suitable for parents (between 20-60 years) with children in the age group of 0-12 years.
The plan is suitable for people who wish to provide for their children's higher education/marriage.
Salient Features
Salient Features
It is a money back plan where in sum assured is paid at regular intervals. The policy can be so designed that it provides money at important milestones of the child's education like secondary education, higher secondary, and graduation and post graduation. On death of the life assured with in the term, full sum assured is paid immediately and all future premiums are waived. Death benefits are in additions to the benefits that child is likely to get in the normal course of the policy i.e., child will be eligible for amounts at important milestones of education, irrespective of death of the life assured.
This is a flexible endowment plan taken on the life of the parent for the benefit of the child. Policy is offered in three variants. Options available are o 1. Maturity Benefit Plan 2. Accelerated Benefit Plan 3. Double Benefit Plan The policy provides financial security to the child in the future, by providing lumpsum amounts either on maturity or on unfortunate death of the parent (life assured) during the policy term, which ever is earlier. However benefits vary depending upon the option chosen. Bonus is paid under the policy. Premiums are payable till death or till
34
One has the flexibility to choose the exact age of the child (between 22 to 25 years), at which the policy is to mature. The term of the policy is determined by Age of the child on maturity - Age of the child on the date of proposal. Policyholder has the option to avail additional benefits such as Income benefit rider, Accident Disability benefit rider by paying additional premium
maturity which ever is earlier. The premiums paid will be eligible for tax relief under Section 88 of the Income Tax Act, 1961. The benefits received under the policy are eligible for tax relief under Section 10(10D) of the Income Tax Act, 1961. Premium can be paid either in yearly, half-yearly or quarterly modes, depending on your convenience.
Benefits On Survival
Benefits On the death of the insured On maturity parent during the policy term Future premiums are Sum assured waived and the + bonuses are policy paid. continues till maturity. On the survival of the Sum assured + insured parent bonuses are to the paid and the maturity date, policy stops. sum assured + bonuses are paid. Sum assured is paid, future premiums are Sum assured waived, and the + bonuses are policy paid. continues till maturity
Lump sum amounts are payable at regular interval to meet the child's educational expenses. On Death during the term
Option
Full sum assured is paid and future premiums are waived. Death benefits are in additions to the benefits that child is likely to get in the normal course of the policy i.e., child will be eligible for amounts at important Accelerated milestones of education, irrespective Benefit Plan of death of the life assured. Riders
Maturity Benefit Plan
Income Benefit Rider Income Benefit Rider pays 10% of Double sum assured annually to the child on Benefit Plan each policy anniversary following an unfortunate demise, till maturity of the Rider.
Accident and Disability Benefit Rider
35
This provides cover against an unfortunate death due to an accident. If the individual gets permanently disabled due to an accident, it will also provide a regular income for the next 10 years or till maturity of the policy. All future premiums, in respect of Sum Assured under the basic plan equal to accident cover, will be waived. Other Conditions

Other Conditions

Minimum age of the Parent : 20 years. Maximum age of the Parent : 60 years. Minimum premium: Rs. 8,000 per year. Minimum Sum Assured:Rs.1,00,000. Maximum Sum assured: Rs.30,00,000. Maximum limit under Income Benefit Rider: Rs.10,00,000. Maximum limit under Accident and Disability Benefit Rider: Rs.10,00,000.
Minimum Age at Entry: 18 years Maximum Age at Entry: 60 years Minimum Age at Maturity : 75 years Maximum Term : 10 years Maximum Term : 25 years
36
ICICI Prudential Vs. Birla Sunlife Insurance

Young Scholar - Birla sunlife Objective
The plan is suitable for people who wish to provide for their children's higher education, since benefits under the policy are payable in last five years of term.
Salient Features
Salient Features
It is a money back plan where in sum assured is paid at regular intervals. The policy can be so designed that it provides money at important milestones of the child's education like secondary education, higher secondary, and graduation and post graduation. On death of the life assured with in the term, full sum assured is paid immediately and all future premiums are waived. Death benefits are in additions to the benefits that child is likely to get in the normal course of the policy i.e., child will be eligible for amounts at important milestones of education, irrespective of death of the life assured. One has the flexibility to choose the exact age of the child (between 22 to 25 years), at which the policy is to 37
This is a money back policy where in benefits are payable in the last five years of the term. In the event of death of the life assured with in the term, double the sum assured + any amount in the holding account will be paid. In addition to the above, the child will be eligible for scheduled benefits during the last five years of the term. Policy can be taken by parents having children aged below 8 years. Policy is offered in two variants one being for the parents having children aged between 1-3 years(both inclusive) and other for parents having children between 4 and 8 years. Investment option: Part of the premium is invested through an investment fund. One can select his investment option based on his risk
mature. The term of the policy is determined by Age of the child on maturity - Age of the child on the date of proposal.
Policyholder has the option to avail additional benefits such as Income benefit rider, Accident Disability benefit rider by paying additional premium
appetite. The insured has the flexibility to chose between three investment options viz: Protector, Builder and Enhancer. The policyholder is also given the option to change the investment option during the currency of the policy. Riders: Riders are additional benefits that can be added to the policy by paying additional premium. Critical illness riders and Term rider are available along with the plan. Favourable terms : Favourable premium rates for female lives Tax benefits : As per Sec 88 and Sec 10(10D) of the Income Tax Act.
Full sum assured is paid and future premiums are waived. Death benefits are in additions to the benefits that child is likely to get in the normal course of the policy i.e., child will be eligible for amounts at important milestones of education, irrespective of death of the life assured. Riders
If the age of the child is between 0 and 3 years on inception, then 30 % of sum assured is payable at the end of 16th, 17th, 18th and 19th policy year and at the end of 20th policy year amount in the holding account will be paid. If the age of the child is between 4 and 8 years on inception, then 20 % of sum assured is payable at the end of 11th, 12th, 13th and 14th policy year and at the end of 15th policyyear, amount in the holding account will be paid. On Death during the term
Income Benefit Rider Income Benefit Rider pays 10% of sum assured annually to the child on each policy anniversary following an unfortunate demise, till maturity of the Rider.
On death of the parent during the term of the policy, double the sum assured is paid to the nominees. If the cause of death is an accident then triple the sum assured is paid. In case of total disablement sum assured is payable. These benefits are in
38
Accident and Disability Benefit Rider
This provides cover against an unfortunate death due to an accident. If the individual gets permanently disabled due to an accident, it will also provide a regular income for the next 10 years or till maturity of the policy. All future premiums, in Riders respect of Sum Assured under the basic plan equal to accident cover, Riders are additional benefits that can be will be waived. added to the policy by paying additional premium.
addition to the scheduled benefits the child is likely to get during the last five years of the term In the event of death of the child, parent can continue the policy to receive the benefits or surrender the policy and receive the surrender value.
Critical Illness Rider : Amount specified under this rider is paid in the event of the life assured contracting to any of the four critical illnesses specified under this rider. Critical illnesses covered under this rider are Heart Attack, Stroke, Cancer and Surgery to Coronary Arteries. However the rider amount is paid provided the life insured survives the specified illness for a period of at least 30days from the date of diagnosis Term Rider : By the virtue of this rider an additional amount equivalent to the amount specified under this rider paid on death with the term. Waiver of Premium Rider :This rider waives all the future premiums under the base policy and attached riders on the happening of the insured event, prior to the premium payer's 65th birthday. However the policy will remain active. Insured events include some illnesses or accident due to which the life insured/policy owner becomes completely disabled or; The
39
policy owner/life insured is diagnosed to be suffering from any of the specified critical illnesses; The policy owner's death, in case of the life insured being the child and the policy owner being parent/guardian. Premiums for this rider are payable throughout the benefit period of the base policy or rider but not beyond the policy owner attaining age 65. For the benefits to be payable under this rider there will be a waiting period of 26 weeks and 30 days for Total Permanent Disability and Critical illness respectively. Other Conditions

Other Conditions

Minimum age at entry : 21 years. Maximum age at entry: 65 years. Maximum age at maturity: 75 years
Save 'n' Protect (ICICI PRUDENTIAL Life) Objective
FLEXI Save Plus - Birla Sun Life Endowment Plan Objective
It is an ideal plan for persons who wish to accumulate savings on a regular basis, while
This plan offers insurance cover while giving scope to
40
having insurance protection.
improve return on savings for the policyholder. The duration of the plan can be structured to meet specific needs like children's higher education or to meet marriage expenses while providing risk cover for the said duration. Salient Features

Salient Features
It is basically an Endowment Assurance Plan with deferred participation in profits and extended life cover. It is a fixed term plan - combination of both savings & life cover.
Flexi Save Plus is an endowment plan. Duration of the Policy: The policyholder has the option to chose the term between 5 and 50 years. Payments: Premium payment can be made as single payment, uniform annual payment, semiannual or in easy quarterly installments Investment option: Part of the premium is invested through an investment fund. One can select his investment option based on ones risk appetite. The insured has the flexibility to chose between three investment options viz: Protector, Builder and Enhancer. The policyholder is also given the option to change the investment option during the currency of the policy. Automatic Premium Payment: Policy does not lapse due to non-payment of any Premium Plan deploys funds from earlier premium payments. This is
41
based on certain conditions. Free look period: Policyholder has option to review his decision to have the policy for 15 days from the date of the receipt of the policy document by the policyholder. Transparency in Surrender Values: On deciding to terminate the contract, the exact amount payable to you as surrender value is indicated. Favourable terms : Favourable premium rates for female lives Tax benefits : As per Sec 88 and Sec 10(10D) of the Income Tax Act.
Benefits
Benefits
On death occurring within the term. On Survival 1. Full SA plus GA & vested bonuses are payable Policy value is payable. On survival 1. Full SA plus GA plus vested bonuses On Death during the full term 2. Additionally, one gets a free life cover Full Sum Assured along for 5 years, from date of maturity, for with policy value is 50% of original sum assured. No payable. Evidence of health is required and no premium need to be paid for this. Riders Riders are additional benefits that can be added to the policy by paying additional premium.
Riders available
Accident & disability benefit a. Waiver of future premiums b. 10% of SA each year for 10 years. c. Additional SA, if death is due to an accident while travelling as a passenger in train or bus Critical illness benefit
Accidental Death and Dismemberment Rider : This rider pays for an additional amount
42
9 medical conditions are covered. On admission of a claim, full SA + GA + VB is paid and policy contract terminates with all riders ceased. Claim under this rider is not admissible during first six months of the policy.
When one avails extend life cover, no riders are available.
equivalent to the amount specified under this rider in the event of death or permanent total disablement due to an accident. Permanent total disablement includes loss of more than one limb or sight in both eyes or loss of one limb and sight in one eye. This apart, 50% of the amount specified under this rider is paid in case of loss of one limb or sight in one eye Critical Illness Rider : Amount specified under this rider is paid in the event of the life assured contracting to any of the four critical illnesses specified under this rider. Critical illnesses covered under this rider are Heart Attack, Stroke, Cancer and Surgery to Coronary Arteries. However the rider amount is paid provided the life insured survives the specified illness for a period of at least 30 days from the date of diagnosis Term Rider : By the virtue of this rider an additional amount equivalent to the amount specified under this rider is paid on death within the term Waiver of Premium Rider :This rider waives all the future premiums under the base policy and attached riders on the happening of the insured event, prior to
43
the premium payer's 65th birthday. However the policy will remain active. Insured events include some illnesses or accident due to which the life insured/policy owner becomes completely disabled or; The policy owner/life insured is diagnosed to be suffering from any of the specified critical illnesses; The policy owner's death, in case of the life insured being the child and the policy owner being parent/guardian. Premiums for this rider are payable throughout the benefit period of the base policy or rider but not beyond the policy owner attaining age 65. For the benefits to be payable under this rider there will be a waiting period of 26 weeks and 30 days for Total Permanent Disability and Critical illness respectively. Other Conditions

Minimum age 15 Maximum age 60 Maximum Maturity age 70 Minimum SA Rs.20,000/Minimum Term 10 years Loans can be availed under the policy and loan interest is chargeable.
44
ICICI Prudential Life Time (ICICI PRUDENTIAL Life) Objective
FLEXI LIFE LINE Birla Sun Life Whole Life Plan Objective
This policy is a long-term market linked total protection plan. The plans offer protections for life at the same time allows the policyholder to get market linked returns. It is a single product combining the benefits of both an investment product and insurance plan. This apart, the product offers a lot of flexibility.
This plan is suitable to any one who wishes to ensure security to his loved ones and earn higher returns on the hard earned income by regular savings. This will ensure that one's legal heirs/ beneficiaries enjoy the same life style even on one's demise.
Salient Features

Salient Features

Death benefit will be a multiple of premium paid. Premium paid will be invested in the fund chosen(Maximiser, Balancer or Protector fund)* after deducting mortality charges and administrative expenses. Policy holder has the option to vary the amount of insurance protection vis--vis investment while maintaining the same premium. The returns depend on the plan chosen- growth, balanced and income and one can switch from one fund to another depending on the financial priorities.Once in a year switching is done free of cost. Benefits can be enhanced by adding Accident & Disability Benefit, Major Surgical Assistance, Critical Illness benefits at a nominal extra premium. Entry into the plan will be based on the Unit Value applicable on the date of policy issue. The amount of premium towards death benefit decreases with the increase in the value of the units. One has the flexibility to increase the death benefit by 25% subject to a maximum of Rs.100,000, every third year upto 3 times, without any underwriting. Death benefit can be increased beyond this limit with
Flexi Life Line is a Whole Life plan. Duration of the plan is for entire life or till 100 years of age. Payments: either as single payment, uniform annual payment, semi annual or quarterly. Investment option: Part of the premium is invested through an investment fund. One can select his investment option based on ones risk appetite. The insured has the flexibility to chose between three investment options viz: Protector, Builder and Enhancer. The
45
underwriting. Apart from the above the policy holder can increase the death benefit at different stages of life such as Marriage, birth of first child and birth of second child. This is irrespective of when the last increase was done. One can decrease the death benefit in the multiple of Rs.100,000. However a minimum death benefit of Rs.100,000 has to be maintained. Policy holder has the option to increase the investment by the way of top ups with a lump sum payment at any time If after at least 3 years premium payments are made and then one is unable to pay the subsequent premiums, the cover under the policy will continue and the premiums towards the life cover and riders will be debited from the unit fund.
Unit value is calculated bi-weekly on a forward pricing basis every Tuesday and Friday Unit value = Market/ Fair Value of the relevant Plan's Investments plus Current Assets less Current Liabilities and Provisions -----------------------------------------------------------------------Number of Units outstanding under the relevant Plan
*The returns depend on the plan chosen. Maximiser(Growth) Plan

If high growth is your priority this is the plan for you. You can enjoy long-term capital appreciation from a portfolio that is invested primarily in equity and equity-related securities.
policyholder is also given the option to change the investment option during the currency of the policy. Automatic Premium Payment: Policy does not lapse due to nonpayment of Premium. Plan deploys funds from earlier premium payments. This is based on certain conditions. Free look period: Policyholder has option to review his decision to have the policy for 15 days from the date of the receipt of the policy document by the policyholder. Transparency in Surrender Values: On deciding to terminate the contract, the exact amount payable to you as surrender value is indicated. Favourable terms : Favourable premium rates for female lives Tax benefits : As per Sec 88 and Sec 10(10D) of the Income Tax Act.
Protector(Income) Plan
If on the other hand your priority is steady returns, you can opt for the Income Plan. Here you can accumulate a steady income at a low risk across a medium to long term period.
Balancer(Balanced) Plan
46
If you prefer a balance of growth and steady returns choose our Balanced Plan. This would ensure that your portfolio is invested in equity and equity-linked securities as well as in fixed income securities. Benefits On Survival
Benefits On Death
In the event of death of the policyholder, beneficiaries will be paid the higher of death benefit and value of the units.
On survival
There is no maturity period and policy holder has the option to withdraw units under the plan at anytime after the policy has been in force for three years.
Surrender value in the maturity year + the balance in the Additional Holding Account(NonGuaranteed) will be paid. On Death The Death benefit(Face amount +accumulated value in Holding account) + the balance in the Additional Holding Account(NonGuaranteed).
Riders Accident & disability benefit

10% of SA each year for 10 years in case of permanent total disability Additional SA, if death is due to an accident while travelling as a passenger in train or bus Riders
Critical illness benefit
9 medical conditions are covered. On admission of a claim, sum assured under the rider is paid and the rider comes to an end. Claim under this rider is not Riders are additional benefits that can be added to the admissible during first six months of the policy. policy by paying additional premium. Major Surgical Assistance
43 surgical procedures are covered 1. Major Surgical Procedure - 50% of SA 2. Intermediate Surgical Procedure - 30% of SA 3. Minor Surgical Procedure - 20% of SA Claims can be made for more than one surgical procedure, subject to a maximum of 50% of SA, claim under this rider is not allowed during first 6
Accidental Death and Dismemberment Rider : This rider pays for an additional amount equivalent to the amount specified
47
months of the policy
under this rider in the event of death or permanent total disablement due to an accident. Permanent total disablement includes loss of more than one limb or sight in both eyes or loss of one limb and sight in one eye. This apart, 50% of the amount specified under this rider is paid in case of loss of one limb or sight in one eye Critical Illness Rider : Amount specified under this rider is paid in the event of the life assured contracting to any of the four critical illnesses specified under this rider. Critical illnesses covered under this rider are Heart Attack, Stroke, Cancer and Surgery to Coronary Arteries. However the rider amount is paid provided the life insured survives the specified illness for a period of at least 30 days from the date of diagnosis Term Rider : By the virtue of this rider an additional amount equivalent to the amount specified under this rider is
48
paid on death within the term
Waiver of Premium Rider :This rider waives all the future premiums under the base policy and attached riders on the happening of the insured event, prior to the premium payer's 65th birthday. However the policy will remain active. Insured events include some illnesses or accident due to which the life insured/policy owner becomes completely disabled or; The policy owner/life insured is diagnosed to be suffering from any of the specified critical illnesses; The policy owner's death, in case of the life insured being the child and the policy owner being parent/guardian. Premiums for this rider are payable throughout the benefit period of the base policy or rider but not beyond the policy owner attaining age 65. For the benefits to be payable under this rider there will be a waiting period of 26 weeks and 30 days
49
for Total Permanent Disability and Critical illness respectively. Other Conditions

Minimum age at entry: 0 years Maximum age at entry: 60 years (completed years) Minimum premium : Rs.18,000 per annum Minimum sum assured under riders : Rs.100,000 Maximum Sum assured under riders : Rs.10,00,000
Following are the charges applicable under the policy:
The initial administrative charges in the 1st year would be 20% of the premium, for premium amounts less than Rs.50,000/-. For premiums equal to or more than Rs.50,000/-, it is 18% of the premium. Other Charges: Annual administrative charges of 1.00% p.a. of net assets for protector (Income) and 1.25% p.a. for Maximiser (Growth) and Balancer (Balanced) options. Annual investment charge of 0.5% p.a. of the net assets for Protector and 1% p.a. of the net assets for Maximiser and Balanced. Mortality charge towards death benefit Initial charges of 1% on Top-ups One free switch every year after which a switching fee of 1% of the switching amount will be levied. Any unutilized free switch cannot be carried forward.
Note: In case the unit value is inadequate to cover charges, the policy will terminate.
ICICI Prudential PRUDENTIAL Life)
CashBak
(ICICI
Flexi Cash Flow Birla Sun Life Money Back Plan Objective
Objective
Policy is suitable for people who wish to have combined benefit of savings and liquidity all 50
In addition to securing protection by way of life
the while having an insurance protections. Policy provides for the periodic financial requirements of an individual with the added benefit of insurance protection. Salient Features
insurance, those who wish be to use their savings at regular intervals can have this flexi cash flow. Salient Features

It a money back plan where in the lumpsum amounts are payable to life assured at regular periodic intervals. Premiums are payable through out the term of the policy or till earlier death Guaranteed additions and bonus are payable under the policy In case of death of the life assured within the term, the total sum insured along with guaranteed additions and bonus are paid to the nominee, irrespective of earlier survival benefits Period of the policy can be 15 or 20 years. Policy holder can opt for the rider at the time of taking the policy at a marginally additional premium. Riders available are a. Accident & Disability benefit b. Critical Illness Benefit c. Major Surgical Assistance and d. Level Term Insurance
Flexi cash flow is a Money back plan. Duration of the plan: The proposer has the option to choose the duration of the plan depending on his perceived financial needs. The duration can be 10, 15, 20 or 25 years. Payments: either as single payment, uniform annual payment, semi annual or quarterly. Investment option: Part of the premium is invested through an investment fund. One can select his investment option based on ones risk appetite. The insured has the flexibility to chose between three investment options viz: Protector, Builder and Enhancer. The policyholder is also given the option to change the investment option during the currency of the policy. Automatic Premium Payment: Policy does not lapse due to non-payment of Premium. Plan deploys funds from earlier premium payments. This is based on certain conditions. Free look period: Policyholder has option to review his decision to have
51
the policy for 15 days from the date of the receipt of the policy document by the policyholder. Transparency in Surrender Values: On deciding to terminate the contract, the exact amount payable to you as surrender value is indicated. Favourable terms : Favourable premium rates for female lives Tax benefits : As per Sec 88 and Sec 10(10D) of the Income Tax Act.
Benefits
On Survival Policy Survival Payment as a % of At the end of Term basic sum assured 3 6 9 15 years 12 10% 15% 20% 25%
Payment of fixed percentage of amount of the face value at specified interval. On Death
50% plus guaranteed 15(Maturity) additions plus vested Riders bonuses. 4 8 12 20 years 16 10% of sum assured 15% 20% 25%
Sum Assured in addition to the policy value.
Riders are additional benefits that can be added to the policy by paying additional premium.
50% plus guaranteed 20 (Maturity) additions plus vested bonuses. On Death:
Accidental Death and Dismemberment Rider : This rider pays for an additional amount equivalent to the amount specified under this rider in
52
In case of death of the life assured within the term, the total sum insured along with guaranteed additions and bonus is paid to the nominee, irrespective of earlier survival benefits
Riders available
Accident & disability benefit a. Waiver of future premiums b. 10% of SA each year for 10 years. c. Additional SA, if death is due to an accident while travelling as a passenger in train or bus Critical illness benefit 9 medical conditions are covered. On admission of a claim, full SA + GA + VB is paid and policy contract terminates with all riders ceased. Claim under this rider is not admissible during first six months of the policy.
the event of death or permanent total disablement due to an accident. Permanent total disablement includes loss of more than one limb or sight in both eyes or loss of one limb and sight in one eye. This apart, 50% of the amount specified under this rider is paid in case of loss of one limb or sight in one eye Critical Illness Rider : Amount specified under this rider is paid in the event of the life assured contracting to any of the four critical illnesses specified under this rider. Critical illnesses covered under this rider are Heart Attack, Stroke, Cancer and Surgery to Coronary Arteries. However the rider amount is paid provided the life insured survives the specified illness for a period of at least 30 days from the date of diagnosis Term Rider : By the virtue of this rider an additional amount equivalent to the amount specified under this rider is paid on death within the term Waiver of Premium Rider :This rider waives all the future premiums under the base policy and attached riders on the happening of the insured event, prior to the premium payer's 65th birthday. However the
53
policy will remain active. Insured events include some illnesses or accident due to which the life insured/policy owner becomes completely disabled or; The policy owner/life insured is diagnosed to be suffering from any of the specified critical illnesses; The policy owner's death, in case of the life insured being the child and the policy owner being parent/guardian. Premiums for this rider are payable throughout the benefit period of the base policy or rider but not beyond the policy owner attaining age 65. For the benefits to be payable under this rider there will be a waiting period of 26 weeks and 30 days for Total Permanent Disability and Critical illness respectively. Other Conditions

Minimum amount of Sum Insured - Rs. 50,000 Minimum age at entry 16 years Maximum age at entry 55 years
54
ICICI Prudential Vs. Aviva Life Insurance
Young Achievers - Aviva Life Objective
The plan is suitable for people who wish to provide for their children's higher education/marriage.
Salient Features
Salient Features

It is a money back plan where in sum assured is paid at regular intervals. The policy can be so designed that it provides money at important milestones of the child's education like secondary education, higher secondary, and graduation and post graduation. On death of the life assured with in the term, full sum assured is paid immediately and all future premiums are waived. Death benefits are in additions to the benefits that child is likely to get in the normal course of the
Young Achiever is a regular premium fixed term, protection cum savings plan for your child. The policy can be purchased on the life of any one of the parents with the child as the nominee. i.e. the parent is the insured. Premiums can be paid in yearly, half-yearly, quarterly or monthly (direct debit or ECS only) intervals. The premiums (including additional single premiums) paid are eligible for tax rebate under Section 88 of the Income Tax Act, 1961 only up to 20% of the sum insured in a financial year. The policy proceeds are tax free under Section 10(10D) of the Income Tax Act, 1961 as long as the total premium paid in any of the policy years does not exceed 20% of the capital sum insured. The policy offers two investment fund options: a With Profits Fund and a Unit Linked Fund. The flexibility to make lump sum investments through additional single premiums, apart from the regular premiums, as often as required over the duration of the policy is also available. The minimum additional single premium is Rs. 10,000 presently but may vary subject to reviews by the Company. The fund is maintained separately and
55
policy i.e., child will be eligible for amounts at important milestones of education, irrespective of death of the life assured. One has the flexibility to choose the exact age of the child (between 22 to 25 years), at which the policy is to mature. The term of the policy is determined by Age of the child on maturity - Age of the child on the date of proposal. Policyholder has the option to avail additional benefits such as Income benefit rider, Accident Disability benefit rider by paying additional premium
can be withdrawn and surrendered at any time subject to surrender penalty, if any. The company gives the option to maintain the real value of the policy by way of indexation. Indexation protects the purchasing power of the maturity value or death benefit. If the policyholder opts for indexation, his regular premium and the sum insured will be increased by an inflation which is determined by the company at the starting of the each calendar year. The sum insured is determined, for the given amount of regular annual premium, by selecting one of the cover levels and multiplying it by the annual premium: Higher Cover Level i.e. higher protection and lower savings, or Lower Cover Level i.e. higher savings and lower protection The following table highlights the cover levels for different policy terms:
Policy Term years Low Cover Level* High Cover Level*
8 9 10 11 12 13 14 15 16 17 18 19 20 21
6 6 6 8 8 8 8 8 10 10 10 10 10 10
8 9 10 11 12 13 14 15 16 17 18 19 20 21
*Cover level means a multiple of premium to determine the sum insured.
Hence for a policy of 10 years and a premium of Rs. 20,000 per annum, you can opt for a sum insured of Rs. 120,000 or Rs.200,000. Benefits On Survival Benefits On Survival 56
Full sum assured is paid and future premiums are waived. Death benefits are in additions to the benefits that child is likely to get in the normal course of the policy i.e., child will be eligible for amounts at important milestones of education, irrespective of death of the life assured. Riders
On maturity, the policy value is payable. Policy value is the total number of initial and accumulation units held in the unit account multiplied by the selling price of the units. In case the policyholder does not wish to take the policy value on maturity, he has the option of continue the unit account for a maximum of five years after the maturity date. The monthly administration charge will be reduced to 60% of those charged on policies before maturity The policyholder has the option to make partial withdrawals during the last four years of the policy (i.e. from four years before the maturity date), subject to minimum policy value after the withdrawal as prescribed by the company (currently Rs. 20,000). The limits of partial withdrawals prescribed by the company are:
Income Rider
Benefit
Income Benefit Rider pays 10% of sum assured annually to the child on each policy anniversary following an unfortunate demise, till maturity of the Rider.
4th policy year before the Up to 25% of the sum insured maturity 3rd policy year Up to 50% of the sum insured before the (including amounts withdrawn maturity earlier). 2nd policy year Up to 75% of the sum insured before the (including amounts withdrawn maturity earlier). Up to 100% of the sum insured In the year of (including amounts withdrawn maturity earlier) On Death during the term
Accident Disability Rider
and Benefit
Two options are available: i. Sum insured plus the policy value is paid to the nominee and the policy is terminated. ii. The units can be held till the maturity date and these continue to earn investment returns. In this case, units are purchased for an amount equal to the sum insured. These are then added to the policy value and
This provides cover
57
returns accrue on this higher sum. against an unfortunate death due to an accident. If the individual gets permanently disabled due to an accident, it will also provide a regular income for the next 10 years or till maturity of the policy. All future premiums, in respect of Sum Assured under the basic plan equal to accident cover, will be waived. Other Conditions

If the nominee is a minor, the beneficiary or the appointee has the option of making partial withdrawals as per the terms and conditions of the policy (subject to a minimum policy value).
Other Conditions

The minimum age of the insured (parent): 21 years The maximum age of the insured (parent): 55 years The minimum age of the Child: 0 years The maximum age of the Child: 17 years The maximum age of the insured (parent) at maturity of the policy: 65 years The minimum age of the child at maturity: 21 years or 25 years). Minimum sum assured: Rs. 36,000 (subject to a minimum annual premium of Rs. 6,000) Maximum sum insured: Rs. 10,000,000. The minimum policy term is 8 years. However, policy term depends on the present age of the child. It is determined as follows. If the child's age is between 0-13 years on last birthday, the policy term will be: 21 minus age of child at entry.
If the child age is between 14-17 years on last birthday, policy term will be: 25 minus age of child at entry.
Save 'n' Protect (ICICI PRUDENTIAL Life) Objective 58
LifeSaver - Aviva Life Objective
It is an ideal plan for persons who wish to accumulate savings on a regular basis, while having insurance protection.
LifeSaver is a flexible endowment plan suitable for people who wish to provide insurance protection for their family during the term of the plan and at the same time wish to plan for specific long-term savings needs such as childrens' education and wedding expenses.
Salient Features
Salient Features
It is basically an Endowment Assurance Plan with deferred participation in profits and extended life cover. It is a fixed term plan - combination of both savings & life cover.
LifeSaver is a unitised fixed term, protection cum savings endowment plan. Policy can be purchased on a single life or joint life (spouse only) on first death basis. The premiums are payable for the whole term of the policy. One can pay the premiums in yearly, half-yearly, quarterly or at monthly (direct debit only) intervals. Premiums paid under the policy are used to purchase units. Policyholder can purchase units of either a With Profits Fund or a Unit Linked Fund. Policyholder is provided with various investment options wherein he can invest 100% of investible funds either in a With Profits Fund or a Unit Linked Fund or he has the option to invest 50% into a With Profits fund and 50% into a Unit Linked fund. The With Profits Fund provides a guarantee that the unit price will never fall. The unit value of this fund is
59
increased by crediting bonuses at regular intervals. A final bonus, if any, may also be payable at maturity, death, or at the time of full or partial surrender. The unit value in the Unit Linked Fund can fluctuate depending upon the performance of the assets held. The policy offers flexibility of making lump sum investments through additional single premiums, apart from the regular premiums. This will increase the savings value (investment) of the policy and do not change the risk cover. This fund is maintained separately and can be withdrawn or surrendered subject to surrender penalty. Policyholder can increase the sum assured and rider benefits under the policy to protect the real value of the policy and guard against the inflation without any underwriting. However this is done based on the company determined indexation. This can be done can upto three years prior to expiry of the policy term or at the 27th policy anniversary, whichever is earlier. If policyholder is unable to pay premiums, he can opt to cash-in policy or make it paidup, provided at least two years premium have been paid and the policy has accumulated sufficient policy value. In case of paid-up policy, one can reduce the level of sum insured to zero or keep the sum insured at the same level.
60
Also, rider coverage will continue provided that the sum insured under the base plan is not reduced to zero. A lapsed or paid-up policy can be reinstated to premium paying status within six months by paying all the due premiums, subject to prevailing underwriting requirements. Full withdrawal of the policy is permitted after two policy years and partial withdrawal is permitted after three policy years. Policyholder will get back the number of units surrendered multiplied by their selling price, less early redemption charges, if any The minimum amount one can withdraw at any one time in case of partial cash-in of units is Rs. 5000/-, increasing from time to time (as stipulated by the Company). The minimum balance (value of units) in the account at any time should not be less than Rs. 10,000. The units held in respect of lump sum investments through additional single premiums can be cashed-in at any time, subject to surrender charges, if any. Benefits under the policy can be enhanced by opting for rider. Riders available under the policy are : a. Accidental Death & Dismemberment (AD&D) b. Critical Illness & Permanent Total Disability (CI&PTD) Charges applicable under the policy are made by the way of
61
deductions. Charges applicable are: a. Initial management charge of 5% per annum on the initial units (units purchased with the first two years' regular premium or two years' incremental regular premium) of the policy. b. An administration charge of Rs.55 per month (this shall be adjusted annually for inflation). c. A regular management charge of 1% per annum on both initial and accumulation units. d. Risk charges based on age, sex, level of life cover and the rider(s) opted. Premiums paid are eligible for a tax rebate as per Section 88 of the Income Tax Act. Policy proceeds are tax free under Section 10 (10D) of the Income Tax Act. Any investment return earned on the policy value will generally be subject to tax at a lower effective tax rate. A free temporary accidental death cover equal to the proposed sum insured of all the proposals under consideration or Rs. 5 lakhs, whichever is lower, is provided from the date of the first premium payment to the issuance of policy subject to a
62
maximum of three months. Benefits
Benefits
On death occurring within the term. On Maturity 1. Full SA plus GA & vested bonuses are payable On survival to maturity Policy On survival value is payable. Instead of 1. Full SA plus GA plus vested bonuses withdrawing the amount during the full term policyholder can hold the units 2. Additionally, one gets a free life cover after the expiry of the policy for 5 years, from date of maturity, for term and continue to get 50% of original sum assured. No benefits from investment Evidence of health is required and no returns from the fund. premium need to be paid for this. On death Riders available Lump sum equivalent to the Accident & disability benefit higher of the value of units in a. Waiver of future premiums respect of regular premiums or b. 10% of SA each year for 10 years. the sum insured is paid. This c. Additional SA, if death is due to an apart, the value of units in accident while travelling as a passenger respect of lump sum in train or bus investments through additional Critical illness benefit single premiums will be paid. A final bonus, if any, may also 9 medical conditions are covered. On be payable in case of a With admission of a claim, full SA + GA + VB is Profits policy. paid and policy contract terminates with all In the case of joint life riders ceased. Claim under this rider is not insurance, death benefit is paid admissible during first six months of the on the first death only and policy. thereafter the policy will terminate. If AD&D has been selected Major Surgical Assistance and death occurs from an accident, an additional sum 43 surgical procedures are covered equal to the sum insured is 1. Major Surgical Procedure paid. 50% of SA 2. Intermediate Surgical Riders Procedure - 30% of SA 3. Minor Surgical Procedure 20% of SA Riders can be attached to the base coverage at inception only and rider Claims can be made for more than one cover expires at 60 years of age. surgical procedure, subject to a
63
maximum of 50% of SA, claim under this rider is not allowed during first 6 Accidental Death months of the policy Dismemberment (AD&D) Level Term Insurance Additional cover in the event of death happening within the term.

&
When one avails extend life cover, no riders are available.
This rider pays an additional 100% sum assured or 50% sum assured in case policyholder or his/her spouse (if insured jointly) meets with an accident leading to complete dismemberment or partial dismemberment respectively. Maximum amount payable is limited to Rs.50 lacs (subject to indexation increases). The benefit under this rider is paid if death or dismemberment happens within 90 days of the date of accident. If the total benefit payment since inception has not reached 100% of the sum insured, the rider coverage will remain in force for the balance amount. The risk cover under the base policy will remain unaffected.
Critical Illness & Permanent Total Disability (CI&PTD)
In the event of policyholder or his/his spouse (if insured jointly), contract any of the covered critical illnesses or become permanently and totally disabled, a lump sum equivalent to the higher of the value of units in respect of regular premium or the sum insured (subject to a maximum of Rs. 20 lacs), is paid and policy comes to an end.
64
The value of units in respect of additional single premium will be paid in addition to the above benefit without any deductions. Maximum benefit under this rider is subject to Rs. 20 lacs (subject to indexation increases). A final bonus, if any, may also be payable in case of a With Profits policy. The illnesses covered are: Heart attack, Cancer, Stroke, Major organ transplant, Kidney failure, Coronary artery bypass surgery, Blindness, Deafness, Benign brain tumor, Terminal iIlness, permanent total disability.
Other Conditions

Other Conditions

Minimum age 15 Maximum age 60 Maximum Maturity age 70 Minimum SA Rs.20,000/Minimum Term 10 years Loans can be availed under the policy and loan interest is chargeable.
Minimum entry Age: 18 years Maximum entry Age 65 years Maximum Maturity Age 70 years Maximum entry age for rider cover: 55 years. Minimum term : 5 years
65
ICICI Prudential Life Guard Objective
Life Shield - Aviva Life Objective
Maximum thrust is on family protection. This policy is suitable for people who wish to provide large sums for the benefit of their family at an economical cost.
Life Shield is an ideal life insurance plan suitable for people who want to have insurance protection for their family or business, for a limited period, at low cost.
Salient Features

Salient Features
Its is a pure risk or term insurance plan. The policy is offered in three variants: 1. ICICI Prudential LifeGuard Level Term Assurance 2. ICICI Prudential LifeGuard Level Term Assurance with Return of Premium 3. ICICI Prudential LifeGuard Single Premium Under each of the above variants, full sum assured is payable on death. On survival to maturity nothing is payable except under ICICI Prudential LifeGuard Level Term Assurance with Return of Premium, where in premiums paid are returned without any interest. Riders enhance the benefits under the policy, which can be availed by paying marginal additional premium. One can avail Accident and Disability rider under all the above variants except ICICI Prudential LifeGuard Single Premium All the premiums paid under the policy are eligible for tax rebate under section 88 of IT Act.
Life Shield is a low cost life insurance plan, which guarantees to pay a lump sum amount in case of death during the term of the policy. Policy holder has the option to increase the sum assured (only upto 40 years of age) by 50% (subject to maximum increase of Rs.1,000,000) during the term of the policy, without submitting any evidence of good health, if: He/she decides to increase the sum insured within three months of his/her marriage. He/she decides to increase the sum insured within three months of the birth of his/her child. This option to increase the sum insured is available only if the policy has been accepted on standard rates, outstanding term of the policy is at least 5 years and the policy is in force for full sum insured. Premiums can be paid in yearly, halfyearly, quarterly or at monthly intervals. Premiums paid are eligible for tax rebate under Section 88 of the Income Tax Act. Preferred rates are available for
66
customers opting for higher sum insured and to PensionPlus policyholders of Aviva. A discount of Rs. 0.50 per thousand of sum insured on standard premium rates if he/she opts for a sum insured of Rs. 1,000,000 and above. An additional discount of 7.5% on the premium rate stated in the Premium Rate Table of Life Shield, provided he/she is a Life Shield policyholder and it has been accepted on standard rates. If the premium is not paid within the grace period, then the policy will lapse without any value. However, a lapsed policy can be reinstated within two years from the date of first unpaid premium subject to underwriting requirements of the company and payment of all the unpaid premiums with interest. Policy offers a free look period of 15 days, were in policy holder can cancel the policy within 15 days from the date of receipt of the policy document and premiums are refunded after deducting stamp duty and medical expenses.
Benefits On Death:
On survival to maturity nothing is payable except under ICICI Prudential LifeGuard Level Term Assurance with Return of Premium, where in premiums paid are returned without any interest. On Death
Sum assured is paid on event of death during the term of the policy. On survival
This is a pure term insurance plan and nothing is paid on survival to maturity.
67
Under each of the above variants, full sum assured is payable on death. Other Conditions

Other Conditions

Age at entry: 18 years Maximum age at entry: 50 years. Maximum age at exit : 65 Minimum term: 5 years Maximum term : 25 years( For ICICI Prudential LifeGuard Level Term Assurance & ICICI Prudential LifeGuard Level Term Assurance with Return of Premium) Maximum term : 15 years(For ICICI Prudential LifeGuard Single Premium) Minimum premium - Rs. 2400 per annum. ( For ICICI Prudential LifeGuard Level Term Assurance & ICICI Prudential LifeGuard Level Term Assurance with Return of Premium) Minimum Sum assured : Rs. 2,00,000(For ICICI Prudential LifeGuard Single Premium)
Minimum age: 18 years Maximum age: 55 years Maximum age at expiry: 65 years. The minimum policy term 5 years Maximum policy term 40 years. Minimum annual premium: Rs.2,000 Minimum sum insured: Rs.500
INSURERS FIND IT TOUGH TO GET NEW BUSINESS

The falling interest rate regime has pulled down the overall new business premium of the Indian life insurance industry by a significant 18 per cent over the previous fiscal, despite the tremendous growth recorded by the private sector life insurance players in adding new business to their portfolio during the fiscal ended March 2004. This trend is due to slow withdrawal of policies with guaranteed returns by the insurers while responding to the interest rates moving southwards.
68
Against a total premium underwritten of Rs 15,139.93 crore during 2001-02, the Indian life insurance industry recorded a low premium of Rs 12,324.83 crore for the fiscal ended March 31, 2004. Announcing the analysis of new business underwritten by life insurers for the year 200304, the Insurance Regulatory and Development Authority (IRDA) has pointed out that the individual business of Life Insurance Corporation of India (LIC) was impacted the most with a decline of around 24 per cent as against the industry. Despite this, the public sector life insurance major continued to hold sway. Of course, the private sector made steady inroads during the fiscal under review, which was more than expected given the experience in other markets, IRDA has pointed out. While LIC led the chart in terms of market share in new business with a 92 per cent share in entire industry, down from 98 per cent in the previous fiscal, the private sector improved its overall market share to eight per cent from two per cent in the previous fiscal. The analysis of the new business figures furnished by the private life insurers reveals that the overall business captured by the 12 players rose to Rs 981.24 crore during 2003-04 from Rs 296.61 crore in the previous fiscal, a growth of 231 per cent. It was ICICI Prudentialdential that topped the private sector new business market with a share of 38 per cent. While Birla Sun Life followed it with a market share of 15 per cent, HDFC Standard garnered a share of 14 per cent, Max New York 8 per cent, SBI Life 7 per cent, Tata AIG 6 per cent, Allianz Bajaj 5 per cent, Om Kotak 3 per cent, ING Vysya 2 per cent and Met Life and Aviva 1 per cent each. AMP Sanmar registered no market share. In terms of total market, the share of ICICI Prudentialdential stood at nearly three per cent, followed by Birla Sun Life and HDFC Standard at 1.21 per cent and 1.08 per cent of the premium underwritten.
69
In terms of number of policies, while ICICI Prudentialdential issued around 2.45-lakh policies, while HDFC Standard and Allianz Bajaj followed with 1.25-lakh and 1.16-lakh policies, respectively. In terms of number of policies underwritten in rural sector, ICICI Prudentialdential led the chart with 29,376 policies.
70
MARKET SHARE OF ICICI PRUDENTIAL VIS-A-VIS OTHER PRIVATE PLAYERS (2003-04)
40 35 30 25 20 15 10 5 0 2003-04
ICICI PRU BIRLA SUNLIFE HDFC STANDARS MAX NEW YORK SBI LIFE TATA AIG ALLIANZ BAJAJ OM KOTAK ING VYSYA MET LIFE AVIVA
INSURANCE COMPANY ICICI PRUDENTIAL HDFC MAX NEW YORK SBI LIFE TATA AIG ALLIANZ BAJAJ OM KOTAK ING VYSYA MET LIFE AVIVA
MARKET SHARE (%) 38 14 8 7 6 5 3 2 1 1
71
ICICI PRUDENTIAL WITH OTHER PRIVATE PLAYERS INDIVIDUALLY
ICICI PRUDENTIAL VS HDFC

40 30 20 10 0 ICICI PRU HDFC
ICICI PRU VS BIRLA SUNLIFE
28%
ICICI PRU BIRLA SUNLIFE
72%
72
ICICI PRUDENTIAL VS MAX NEWYORK

17%
ICICI PRU MAX NEWYORK
83%
ICICI PRU VS SBI LIFE
40 30 20 10 0 ICICI PRU SBI LIFE
ICICI PRU SBI LIFE
73
ICICI PRU VS TATA AIG

14%
ICICI PRU TATA AIG
86%
ICICI PRU VS ALLIANZ BAJAJ 40 30 20 10 0 ICICI PRU ALLIANZ BAJAJ
74
ICICI PRU VS OM KOTAK
7%
ICICI PRU OM KOTAK
93%
ICICI PRU VS ING VYSYA

40 35 30 25 20 15 10 5 0 ICICI PRU ING VYSYA
75
ICICI PRU VS METLIFE
97%
3% 3%
ICICI PRU MET LIFE
ICICI PRU VS AVIVA

40 30 20 10 0 ICICI PRU AVIVA
76
FINDINGS
1. ICICI PRUDENTIALs ULIPs are more then beneficial in terms of returns as they are managing peoples funds in four different ways. So in this way people get enough choice for allocation of funds , so they can invest according to their own requirement keeping their money in secured and safe manner. 2. Unit Linked Insurance plan has been attached to all categories of insurance like for children, for retirement, for adults as well as plans for whole life. So now we can say that innovation has been taken place which is beneficial both for the company as well as for the individuals. 3. Through discussion which has taken place in exploratory research with other companies hierarchy level, this analysis gave fruitful response for the comparison of different category of plans of my company as well as other companies to know how ICICI PRUDENTIAL is doing good in the market.
77
CONCLUSION
ICICI Prudentialdential Life Insurance has crossed yet another landmark by emerging as the first private life player to underwrite a total sum assured of Rs 20,000 crore. This achievement is the latest testament of ICICI Prudentialdentials tremendous growth and position as the leading private life insurer in the country. ICICI Prudentialdential had witnessed yet another period of triple-digit growth with its new business premium income growing to Rs 242 crore, an increase of 244 per cent over the corresponding period last year (Q1 04). Over 100,000 new policies were added in that same period. The companys retail market share in the April-June 2004 quarter stood at 35 per cent amongst all private companies and 6 per cent of the total market. The company also witnessed a huge growth in its group business, adding Rs 30 crore through group gratuity, superannuation and term policies. The companys combined market share stands at 34 per cent amongst private players, says a company release. Ramping up distribution - through advisors, bank relationships, corporate agents and brokers - has been integral to ICICI Prudentialdentials success. Over the past year the company has doubled its branch network to 78 branches across 62 locations. Thus, it is very much clear that ICICI Prudential has emerged as one of the leading players in the private life insurance sector as it topped the private sector new business market with a share of 38 per cent. In terms of total market, the share of ICICI Prudentialdential stood at nearly three per cent. In terms of number of policies, while ICICI Prudentialdential issued around 2.45-lakh policies. In terms of number of policies underwritten in rural sector, ICICI Prudentialdential led the chart with 29,376 policies.
78
SUGGESTIONS
Icici PRUDENTIAL is already having the top position in the private insurance market so their is a need to maintain or to sustain in the market at the same level. But on the other hand I would like to give following suggestions Proper awareness of insurance should be done as the penetration of life insurance in our country is very low. Till now only target for urban area has been fixed and over achieved but nothing has been done for rural areas. So it should be taken care of. More plans of capital guarantee should be launched in the market for the customer requirements. Instead of capital guarantee returns and bonuses should be increased to keep the company at the same level or to surpass other companies.
79
LIST OF INDIVIDUALS ICICI PRUDENTIAL. ANUPMA VERMA (Training Dept.) PUJA JUNEJA (Training Dept) ASHISH SHARMA (Training Dept) GAURAV MAHAJAN (Assistant Sales Manger) AJAY KAUL (Sales Manger) SHEETL ARORA (Unit manager) RISHAB MALHOTRA (Sales manager)
HDFC STANDARD LIFE.. ARVIND SINGH (Sales Manager) VISWAS JUNEJA (Training Dept) VIVEK KHATTAR (Senior Sales Executive) PANKAJ SINGH (Business Development manger) RUPALI GARG (HR)
BIRLA SUNLIFE AVIVA MANOJ MALIK (Training Manager) SACHIN AGGARAL (Sales Head) SACHIN SHRIVASTAV (Team Leader) 80 KIRTI SAXENA (HR Head) PARAG MALVIA (Training Dept.) AMIT SAXENA (Sales Head) VISHAL KOCHAR (Zonal Sales Manger)
ABHI CHAWLA (Team Leader)
BIBLIOGRAPHY
BUSINESS WORLD INDIA TODAY www.iciciPrudentiallife.com www.asianinsurancereview.com www.bimaonline.com www.businessline.com Discussion with various employees of ICICI Prudentialdential Life Insurance Company
81

Grand Project: "Product Stratagy of Private Life Insurance Company''

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Grand Project: "Product Stratagy of Private Life Insurance Company''

Uploaded by

Copyright:

Available Formats

AAA

PRODUCT STRATAGY OF PRIVATE LIFE INSURANCE COMPANY

Overview Of Insurance Industry

Life Insurance Market

Unit Linked Insurance Plans

Are ULIPs Similar To Mutual Funds?

Why do insurers prefer ULIPs?

ICICI Prudential Life Insurance Vision

ICICI Prudential offers a complete range of insurance products:

On maturity, all the premiums paid will be returned.

Invest Shield Gold

Invest Shield Pension

Life Time Pension II

Life Link Pension II

Secure Plus Pension

Keyman Insurance Plans

Critical Illness Benefit Rider

Major Surgical Assistance Rider

Accident & Disability Benefit Rider

COMPARATIVE ANALYSIS OF DATA

ICICI Prudential Vs. HDFC Standard Life Insurance

Money Back Policy (HDFC - Standard Life) Objective

Basic Benefits+ Waiver of Premium (WOP)+ Critical Illness (CI)

Other Conditions Classic Min.age entry Max.age entry Max.age expiry

Value Value Value Plan Plan A Plan B C,D and E 12 60 75 18 60 75 18 55 65 18 50 60

Minimum term: 10 years Maximum term: 30 years

Save 'n' Protect (ICICI PRUDENTIAL Life) 27

Endowment Assurance Plan (HDFC Standard Life)

Basic Sum Assured + Bonus

Basic Sum Assured + Bonus is payable Riders

ICICI Prudential Life Time (ICICI PRUDENTIAL Life)

Flexible Bond - HDFC Standard Life Single Premium Whole of Life

No medical examination is required to take this policy

Major Surgical Assistance

Maximum entry : 70 years

ICICI Prudential Smart Kid Objective

Children's Plan (HDFC) Objective

Maturity Benefit Plan

Accident and Disability Benefit Rider

ICICI Prudential Vs. Birla Sunlife Insurance

Young Scholar - Birla sunlife Objective

Accident and Disability Benefit Rider

Save 'n' Protect (ICICI PRUDENTIAL Life) Objective

FLEXI Save Plus - Birla Sun Life Endowment Plan Objective

This plan offers insurance cover while giving scope to

having insurance protection.

When one avails extend life cover, no riders are available.

ICICI Prudential Life Time (ICICI PRUDENTIAL Life) Objective

*The returns depend on the plan chosen. Maximiser(Growth) Plan

Riders Accident & disability benefit

Critical illness benefit

months of the policy

paid on death within the term

Following are the charges applicable under the policy:

ICICI Prudential PRUDENTIAL Life)

In addition to securing protection by way of life

Sum Assured in addition to the policy value.

50% plus guaranteed 20 (Maturity) additions plus vested bonuses. On Death:

ICICI Prudential Vs. Aviva Life Insurance

ICICI Prudential Smart Kid Objective

Young Achievers - Aviva Life Objective

Policy Term years Low Cover Level* High Cover Level*