“ICICI PRUDENTIAL LIFE INSURANCE COMPANY LIMITED.

TRADITIONAL PLAN VS ULIP.”

A PROJECT REPORT
SUBMITTED TO THE
SCHOOL OF MANAGEMENT
IN PARTIAL FULFILMENT OF THE REQUIREMENTS
FOR THE AWARD OF THE DEGREE
OF
MASTER OF BUSINESS ADMINSTRATION
BY
(KAMAL SINGH 3510910313)

UNDER THE GUIDANCE OF

(R. ANANTH KUMAR
ASSISTANT PROFESSOR)

SRM SCHOOL OF MANAGEMENT

SRM UNIVERSITY
KATTANKULATHUR 603203
JULY 2010
 BONAFIDE CERTIFICATE
Certified that this project report titled “Traditional Plan Vs ULIP.” is the
bonafide work of Mr/Ms KAMAL SINGH who carried out the research under
my supervision. Certified further, that to the best of my knowledge the work
reported herein does not from part of any other project report or
dissertation on the basis of which a degree or award was conferred on an
earlier occasion on this or any other candidate.

Signature of the supervisor Signature of the HOD

 ACKNOWLEDGEMENT

It was delightful learning experience to be associated with ICICI PRUDENTIAL LIFE

INNSURANCE COMPANY LIMITED. The 7 weeks spend at ICICI PRUDENTIAL
LIFE INNSURANCE COMPANY LIMITED, Mumbai, taught me many things which
will be with me throughout my life.
It is the greatest pleasure and pride that I present the report before you. At this moment
triumph it would be unfair to neglect all those who help me in the successful completion
of this project.
First of all I would like to thank the Dean of SRM School of Management Dr Jayshree
Suresh(Dean) and my faculty guide Mr. R.Anath kumar (assistant professor) for the
help and guidance rendered for the completion of the project.
It is beyond words to express our immense gratitude to our project guide Manisha Raja
(agency manager) for the guidance and inspiration throughout this work. I am also very
much thankful to the employees of operation department for there co-operation .
Last but not the least I thank my family members & friends for there encouragement and
support.
 TABLE OF CONTENTS
Sl. No Topic Page No.
1 Company Profile 1
2 EXCUTIVE SUMMARY 4
3 INTRODUCTION TO INSURANCE 8
4 INTRODUCTION TO ULIP 14

5 Research Methodology 18
6 PRODUCT POFILE 20
TRADITIONAL VS ULIP 42
DATA ANALYSIS & INTERPRATION 44
7 RESULTS AND FINDINGS 64
8 CONCLUSIONS 66
9 LIMITATIONS OF THE STUDY 67
10 SUGGESTIONS AND RECOMMENDATIONS 68
11 BIBLIOGRAPHY 70
12 APPENDIX 73
LIST OF TABLE

Sl. No. Table Page No.

1 Table 1 45
2 Table 2 47
3 Table 3 48
4 Table 4 49
5 Table 5 50
6 Table 6 51
7 Table 7 52
8 Table 8 53
9 Table 9 54
10 Table 10 55
11 Table 11 56
12 Table 12 57
13 Table 13 58
LIST OF PIE CHART AND GRAPH

Sl. No Name Page No.

1 Graph 1 45
2 Graph 2 46
3 Graph 3 47
4 Graph 4 48
5 Graph 5 49
6 Graph 6 50
7 Graph 7 51
8 Graph 8 52
9 Graph 9 53
10 Graph 10 54
11 Graph 11 55
12 Graph 12 56
13 Graph 13 57
14 Graph 14 58
ICICI Prudential is a joint venture between ICICI Bank and PRUDENTIAL PLC engaged in the
business of life insurance in India. ICICI Prudential is the largest private insurance company and second
largest insurance in India after LIC. ICICI Prudential Life Insurance Company is a joint venture between
ICICI BANK, a premier financial powerhouse, and PRUDENTIAL PLC, a leading international
financial services group headquartered in the United Kingdom. ICICI Prudential was amongst the first
private sector insurance companies to begin operations in December 2000 after receiving approval from
Insurance Regulatory Development Authority (IRDA).ICICI Prudential Life's capital stands at Rs. 37.72
billion (as on March, 2008) with ICICI Bank and Prudential plc holding 74% and 26% stake
respectively. For the year ended March 31, 2008, the company garnered Retail New Business Weighted
premium of Rs. 6,684 crores, registering a growth of 68% over the last year and has underwritten nearly
3 million retail policies during the period. The company has assets held over Rs. 30,000 crore as on
April 30; 2008.ICICI Prudential Life is also the only private life insurer in India to receive a National
Insurer Financial Strength rating of AAA (Ind) from Fitch ratings. The AAA (Ind) rating is the highest
rating, and is a clear assurance of ICICI Prudential's ability to meet its obligations to customers at the
time of maturity or claims. For the past seven years, ICICI Prudential Life has retained its leadership
position in the life insurance industry with a wide range of flexible products that meet the needs of the
Indian customer at every step in life.

Since the liberalization of Indian Insurance sector, ICICI Prudential Life Insurance has been one of the
earliest private players. Since the time, ICICI Pru Life has been the leader in terms of market share as
indicated by the IRDA (Insurance Regulatory and Development Authority, the regulator for Indian
Insurance Industry) at its website.

Arguably the most innovative Indian Life insurer in terms of customer services and products, ICICI
Prudential has one of the largest distribution and servicing network with over 2,000 proprietary offices
& customer touch points across India. The 30,000 employee strong organization has one of the largest
agency distributions in the industry.

With a growing product range to match the complex needs of the demanding customers in a growing
economy, the organization also has a history of successful.

During 2007-08, the organization's focus on rural business has proved its complex project execution
capability and strong partnerships for customer servicing.

In June, 2009 ICICI Prudential Life Insurance has decided to snap its tie up with TTK Healthcare to
settle insurance claims of its users.
 VISION & VALUES
VISION
To be the dominant Life, Health and Pensions player built on trust by world-class people and service.
 
This we hope to achieve by:

 Understanding the needs of customers and offering them superior products and service
 Leveraging technology to service customers quickly, efficiently and conveniently
 Developing and implementing superior risk management and investment strategies to offer
sustainable and stable returns to our policyholders
 Providing an enabling environment to foster growth and learning for our employees 
 And above all, building transparency in all our dealings

 
The success of the company will be founded in its unflinching commitment to 5 core values -- Integrity,
Customer First, Boundaryless, Ownership and Passion. Each of the values describe what the company
stands for, the qualities of our people and the way we work.
 
We do believe that we are on the threshold of an exciting new opportunity, where we can play a
significant role in redefining and reshaping the sector. Given the quality of our parentage and the
commitment of our team, there are no limits to our growth

VALUES
Every member of the ICICI Prudential team is committed to 5 core values: Integrity, Customer First,
Boundaryless, Ownership, and Passion. These values shine forth in all we do, and have become the
keystones of our success.
EXECUTIVE SUMMARY
Title of the project: Study ULIP in current market scenario/ study customer response

towards ULIP.

Objectives:

 Working of the unit linked insurance plans

 Study tax planning solutions available in the market

 SWOT analysis of the product

Organization to be studied:

 Life insurance corporation

 Bajaj Allianz

 HDFC Stan Life

 ICICI Prudential Life Insurance

Research methodology: Primary data collected by personally visiting these leading

insurance players. Example: LIC, Max New York Life Insurance, HDFC Standard life.

Data Collection:

 Primary data collected through Survey

 Sample size 50

 Secondary data collected through literature study.

 OBJECTIVE OF THE STUDY

The project undertaken by me as a part of my MASTER OF BUSINESS ADMINISTRATION

course is an effort made to study the ULIP policies and activities in BAJAJ ALLIANZ with

special emphasis on unit linked products of the company.

The main objectives of this study are:

1. Working of Unit linked Insurance Plans

2. Study tax planning solutions available in the market

3. SWOT analysis of the product sold

4. To get an exposure in the real working environment in the insurance and corporate
sector.
5. To have a better understanding of the investment options available.

6. Meet the various life insurance needs of the community that would arise in the changing
social and economic environment.
 SCOPE OF THE STUDY

1 The main scope is to aware the investors about the various Bajaj Allianz ULIPs and help
them to select the best plan as per their requirement

2 To study the consumer need according his portfolio and to analyze the need of ULIPs
consumer.
3 To find out the best selling insurance products of this company.
4 To find out which product (if any) is not getting good response from clients and why?
5 To find out the risks in investing a unit link insurance plan.
INSURANCE

Meaning of Insurance: -
Insurance in which the risk insured against is the death of a particular person, the insured,

upon whose death while the policy is in force, the insurance company agrees to pay a stated

sum or income to the beneficiary.

Insurance on human lives including endowment benefits, additional benefits in event of death

or dismemberment by accident or accidental means, additional benefits for disability, and

annuities.
Why Life Insurance?

Buying Insurance cannot be compared with any other form of investment. Insurance gives one

a life long benefit and the returns will definitely come but only when one needs it the most i.e.

at the right time.

Insurance is not about how much more it can offer you when the stock market is at its peak. It

may not be an attractive investment option. But weigh the pros and cons and consider how

much more it offers at a small price.

Most important of all it provides you with that unique sense of security that no other form of

investment provides. It gives you a sense of financial support especially during that time of

crisis irrespective of the fluctuations in the stock market. Insurance provides for career goals

right from childhood years.

If the earning member of the family is no more children’s educational needs will not suffer. In

fact his higher education too will be provided for. One need not spend sleepless nights thinking

about how to save for his child's marriage. Life Insurance will take care of that typical once-in-

a-life-time spending on marriages.

An accident or a disability may be devastating but an insurance policy can be of utmost

support for the family during such times too. Besides it provides for additional benefits such as

bonuses. One need not worry about your retirement years. The rising prices, taxes, and your

lifestyle will be taken care of easily. And you can relax and spend your old age in comfort and

peace.
People invest in life insurance owing to a few key reasons, mainly  

 Insurance creates financial provisions for the deceased's dependants.

 Insurance provides for the policyholder's old age after his earning power diminishes.

After all, interest rates may fall and invested holdings may lose value and stop gaining

dividends, but the value of an insurance policy once set, never reduces.

 Insurance also provide a legally authorized way to reduce the incidence of Income Tax.

Insurance as an Investment

Agreed, insurance may not be the best place to invest your hard-earned money. But there are

sufficient reasons for one to believe that it can be a highly lucrative avenue to facilitate

savings. People often talk about yield on investment and tend to compare their values with

those available on various insurance schemes. This is particularly typical within the Indian sub-

continent where one conveniently forgets the element of risk covered by life insurance.

It is extremely unfair to compare the performance of insurance against other investments

without considering the core features of insurance. The very essence of insurance is to protect

your family from the uncertainty of your life. Hence it proves very logical to evaluate the costs

involved towards this feature.

One must accept that out of the total amount paid by one for his life insurance, a certain

amount is used for providing the risk cover and only the balance can be utilized as savings. In

other words, the total premium one pays minus the amount evaluated, as the cost of insurance

must be considered as the amount invested to get the maturity amount.

What does life insurance have to offer?

Life insurance is many different things to many different people. For some, it is a premium to

be paid on time. For others it offers liquidity since cash can be borrowed when needed. For the

investment-minded, it denotes a constantly growing capital account and numerous other

benefits. 

Life insurance is nothing but the creation of capital funds on an installment basis. Only here,

the results are guaranteed. Life insurance is basically a property that is bought under a

contract, accompanied by contractual guarantees that ensure large sums of money at the

death of the insured. 

The contractual guarantee is the promise to pay, backed by one of the oldest and most stably

regulated financial industry operating in the Indian sub-continent today.

Insurance Buys Time and Money: People like to refer to life insurance as time insurance, the

reason being that life insurance proceeds are paid to the insured's beneficiaries in case of

death. The money proffered by life insurance helps buy time to adjust to the change of

circumstances. Insurance provides large amounts of cash that will keep the lifestyle for the

survivors the way it was before the insured's death.

Insurance Offers Peace of Mind: For the person who buys an insurance policy, it offers

absolute and complete peace of mind. He or she knows that the decision made by him will

provide sound benefits in the future, whether or not the individual may live to see it. The life

insurance policy will subsequently prove this in the future if and when funds are needed. This

is the guarantee of the insurance contract.

Multiple Applications: The future is uncertain for each and every one. No one knows how

long he or she will live. The investment benefit is paid to the insured's beneficiaries after his

death or it can be used during the life as well. Life insurance policy owners can turn to the cash

value of the policy in case of a financial emergency when all avenues are either blocked or

denied. They know that they can avail of loans based on their insurance policies.

Insurance policy owners can use the cash value of their policies to meet their long-term

financial needs as well. They may have purposefully invested in insurance to use the cash in

the policy for their children's future marriage expenses or higher education fees.

Enduring Elasticity: Since life insurance is flexible enough to serve several needs, the

insured can keep several long-term goals in mind once he or she invests in the insurance plan.

The cash value of the policy can be allocated towards augmenting the monthly income during

the retirement years. Leisure years should be turned into pleasure years. Permanent life

insurance is designed on the concepts of long-term flexibility.

Financial Security: The insurance policy offers contractual guarantees to people looking for

peace of mind when they buy life insurance. Life insurance offers complete financial security.

The purchase of life insurance demonstrates concern for a family's future financial well being.

Regard for Family: The purchase of life insurance clearly displays care and concern for the

people the policy owner loves.

Insurance is Safer: No financial institution can do what life insurance does. No industry can

back its products with reserves and surplus as sound as those of the insurance industry .
The proof of strength and safety that insurance companies have ensured even under the most

adverse of conditions is a matter of pride for the entire insurance industry. For generation after

generation, life insurance has been acclaimed as the very benchmark of security against which

the other industries are measured.

INTRODUCTION OF UNIT LINKED INSURANCE PLAN
The introduction of unit-linked insurance plans (ULIPs) has been, possibly, the single-largest

innovation in the field of life insurance in the past several decades.

MEANING

A policy, which provides for life insurance where the policy value at any time varies according

to the value of the underlying assets at the time. ULIP is life insurance solution that provides

for the benefits of protection and flexibility in investment. The investment is denoted as units

and is represented by the value that it has attained called as Net Asset Value (NAV).

ULIP came into play in the 1960s and became very popular in Western Europe and Americas.

The reason that is attributed to the wide spread popularity of ULIP is because of the

transparency and the flexibility which it offers.

As times progressed the plans were also successfully mapped along with life insurance need

to retirement planning. In today’s times, ULIP provides solutions for insurance planning,

financial needs, financial planning for children’s future and retirement planning.

FEATURES OF ULIP:

ULIP distinguishes itself through the multiple benefits that it provides to the consumer. The

plan is a one-stop solution providing:

 Life protection

 Investment and Savings

 Flexibility

 Adjustable Life Cover

 Investment Options

 Transparency

 Liquidity

 Tax planning

 Options to take additional cover against death due to accident

 Critical Illness

 Surgeries

Options to take additional cover against:

1. Death due to accident

2. Disability

3. Critical Illness

Fund of ULIP
Equity based funds
Money Market based funds
Debt Funds
Balanced Funds
Special Funds
UNIT-LINKED LIFE INSURANCE PRODUCTS

Unit-linked life insurance products are those where the benefits are expressed in terms of number
of units and unit price. They can be viewed as a combination of insurance and mutual funds. The
number of units, which the customer would get, would depend on the unit price when he pays his
premium. The daily unit price is based on the market value of the underlying assets (equities,
bonds, government securities etc.) and computed from the net asset value

MERITS
1) Flexibility to choose your own level of protection (the sum assured)
2) Option to choose from a wide variety of investment fund to invest in (from high risk to low
risk fund depending on your risk profile). The investment part of Traditional Insurance is control
by insurer

DEMERITS
 The premium is not guaranteed. In Malaysia, the annual premium we pay for
investment-linked insurance is call 'annual targeted premium'. For example, if you pay
an annual premium Ringgit Malaysia 1,800 over the last few years, it does not mean
you are paying the same amount from next year onwards.
b) The insurance charges is not guaranteed, for example, insurance charges for death
benefit, total & permanent disability benefit, etc. The insurance company has the right to
increase the insurance charges.
 RESEARCH METHODOLOGY

As the title of the project suggests the project is about the study of unit linked insurance plan in
current market scenario so my objective in the market interface is to find the awareness about
the Bajaj Allianz’s products in the current market.

MARKET RESEARCH DESIGN

Research Type: Descriptive research

Sources of data: Primary Data
Research method: Survey Method
Research instrument: Questionnaire
Sample size: 50.

SOURCES OF DATA

PRIMARY SOURCES

Data collected from the primary sources are personally interviewed.

Study Conducted.

SAMPLING PROCEDURE

The process employed for the sample was Random sampling. Random sampling is the
sampling in which every unit in the population has an equal opportunity of being selected in the
sample. The method is more representative of the population as there are no personal biases.

METHODOLOGY

The survey is conducted among 50 respondents. The methodology is quite simple. The
primary data collected through survey. The people are personally interviewed. Then their
responses are analyzed and interpreted and the final report is prepared.
Simple statistical tools have been used to in the study to analyze and interpret the data
collected from the field. The study has used percentile method and the results are presented in
the form of the Pie charts and Bar diagrams.
Insurance Plans
ICICI Prudential has a wide array of insurance plans that have been designed with the philosophy that
different individuals are bound to have differing insurance needs.
 
The ideal insurance plan is one that addresses the exact insurance needs of the individual that will
depend on the age and life stage of the individual apart from a host of other factors.

Life Insurance Plans:

Under Life insurance plans, ICICI Prudential offers plans under the following major need categories:
 

  Education Insurance Plans 

  Wealth Creation Plans 
  Protection Plans 
 

Pension & Retirement Solutions:

The primary objective of a pension plan is to help you provide for your financial needs in your post
retirement years. You will find a Pension Planning Calculator on the site, meant to make your pension
plan review as simple as possible. The calculator is the first step in your Pension Plan scheme, there are
othe steps towards getting the Indian pension policy you need.
 
Click here to know more about our pension plan solutions.
 

 ICICI Pru LifeTime Pension Maxima

 ICICI Pru LifeStage Pension Advantage
 ICICI Pru Elite Pension II   
 ICICI Pru Assure Pension  
 ICICI Pru ForeverLife   
 ICICI Pru Immediate Annuity 
 

Health Product Suite:

Under Health Product Suite, ICICI Prudential offers plans under the following major need categories:
 
Hospitalisation Plans

 MediAssure
 Hospital Care II 
 
Critical Illnessl Pans

 Crisis Cover 

Education Insurance Plans

One of your most important responsibilities as a parent is to ensure that your child gets the best
possible education that can be provided.
  
 ICICI Prudential offers a wide portfolio of education insurance plans that are designed to
provide peace of mind to you, as a parent, that your child's education will be secure. These plans
ensure that money is made available at the crucial junctures in a child's education - Class X,
Class XII, graduation and post-graduation - to fund crucial commitments for the child's future.
  
 Importantly, education insurance plans ensure that in the unfortunate event of the death of a
parent, the child's education continues unhampered.
  
 Under the education insurance plans platform, ICICI Prudential brings the following products to
you. Please click on the product name to know more about the plans.
  
 
Plan Name  Plan Type
 
 
Unit Linked
ICICI Pru SmartKid Assure
 
 
Unit Linked
ICICI Pru SmartKid Maxima
 
Traditional
ICICI Pru SmartKid Regular Premium
 
 
Wealth Creation Plans
Wealth Creation Plans give the customer the dual benefit of protection along with the potentially
higher returns of market-linked instruments. The most important benefit of ULIPs is the flexibility they
give the customer in choosing the premium amount and also choosing the underlying fund in which this
money is to be invested. Wealth creation plans also offer the customer more liquidity options as
compared to traditional plans. As such, ULIPs are ideal for customers who want the protection of a life
cover to be allied to the returns of market linked instrument – giving them an unmatched combination of
benefits.
 
Under the wealth creation platform, ICICI Prudential brings the following products to you. Please click
on the product name to know more about the plans.
 
 
Plan Name Plan Type
 
   
ICICI Pru Pinnacle Unit Linked
   
ICICI Pru LifeStage Wealth Unit Linked
   
ICICI Pru ACE Unit Linked
   
ICICI Pru Premier Wealth Unit Linked
   
ICICI Pru Assure Wealth Unit Linked
   
ICICI Pru LifeTime Maxima Unit Linked
   
 
 
 
Protection Plans
The sole objective of these plans, as their name indicates, is to serve the protection needs of the
customer and by doing so, safeguard one’s family from the financial implications of unfortunate
circumstances than one cannot foresee.

 
Under the Protection Plans platform, ICICI Prudential brings to you the following products:
 
 
 
Plan Name Plan Type
 
   
Pure Protect  Traditional 
   
LifeGuard  Traditional 
   
Save'n'Protect  Traditional 
   
CashBak  Traditional 
   
Home Assure Traditional
 
ICICI Pru LifeTime Pension Maxima
In the prime of your life and at the peak of your career, you enjoy all the comforts of life. A happy
family, your own home and car, frequent dining out, holidays in India and abroad... these are pleasures
you are used to today. Wouldn't you wish to continue enjoying them even after you stop working? You
can, if you plan for it now. All you need is a good retirement plan.
 
At ICICI Prudential Life Insurance, we understand your needs and help you plan for a better future. We
bring to you ICICI Pru LifeTime Pension Maxima, a regular premium, unit-linked pension product.
This product offers you the flexibility to invest in unit-linked funds that generate potentially higher
returns over the long term.
 
This product also offers you a unique strategy that allows you to protect gains made through your funds
invested in the equity markets from any future equity market volatility.
 
So, start investing today to realize your retirement dreams.
ICICI Pru LifeStage Pension Advantage
The word retirement brings to mind beautiful images of a comfortable and relaxed life. A life spent in
the company of your loved ones and free of the worries and tensions of work. To ensure that this dream
is realized, you need to build an adequate retirement corpus, which will allow you to be free from any
financial worries. To help you achieve this goal, ICICI Prudential presents ICICI Pru LifeStage
Pension Advantage.
 
The distinguishing feature of this policy is that it has no premium allocation charge for any regular
premiums, which means 100% of your money is invested at premium payment. This policy also
provides you with a unique lifecycle-based investment strategy that continuously re-distributes your
money across various asset classes based on your life stage and risk tolerance, eventually providing you
with a customized retirement solution. So, start investing today to realize your retirement dreams.
ICICI Pru Elite Pension II
For an exclusive customer like you, who likes to be in complete control, we present ICICI Pru Elite
Pension II.

It is a regular premium paying, unit-linked pension product that offers potentially higher returns over the
long term. This product comes with the unique Trigger Portfolio Strategy which automatically protects
your gains made in equity markets from any future market volatility. And once you arrive at your
retirement age, you are assured of regular income (pension) for life.
ICICI Pru Elite Pension II
For an exclusive customer like you, who likes to be in complete control, we present ICICI Pru Elite
Pension II.

It is a regular premium paying, unit-linked pension product that offers potentially higher returns over the
long term. This product comes with the unique Trigger Portfolio Strategy which automatically protects
your gains made in equity markets from any future market volatility. And once you arrive at your
retirement age, you are assured of regular income (pension) for life
 
So that… you call the shots all your life.
ICICI Pru Assure Pension
A retirement plan provides you an income to enjoy a comfortable lifestyle even after you stop working.
 
Presenting ICICI Pru Assure Pension, an innovative pension product especially designed to help you
systematically save towards a joyful and carefree retirement.
 
Moreover, this product provides you with a unique LifeCycle based Portfolio Strategy that regularly re-
distributes your money across various asset classes based on your life stage, eventually providing you
with a customized retirement solution.
ForeverLife
ICICI Prudential's ForeverLife is a complete insurance cum pension plan that performs two crucial
roles: it acts as a protective cover while you earn for your retirement, and provides you with
regular pensions once you retire.
Health Assure Plus
Illnesses have a way of sneaking up on us, weakening our financial stability and stealing our family's
peace of mind. It is best to keep oneself insured at all times against the most critical illnesses that are
also the most common: Cancer, Coronary Artery Bypass Graft or Surgery, Heart Attack, Kidney Failure,
Major Organ Transplant, and Stroke.
 
ICICI Prudential's HealthAssure Plus financially insures you against these six critical illnesses. Should
you ever be diagnosed with one or more of these, HealthAssure Plus provides you with a fixed sum,
irrespective of your actual medical expenses. The health plan thus shoulders the heavy costs of your
treatment and ensures you stay financially stable, come what may.
 
This financial guarantee during illness is not all that HealthAssure Plus delivers. HealthAssure Plus
comes with an added benefit: it insures your life, as well. So should an unexpected accident or disability
claim your life, your family will receive the entire Sum Assured-an amount large enough to ensure they
live securely, even in your absence.
 
ICICI Pru MediAssure?
Health problems, in most cases, strike us unexpectedly, resulting in a sudden financial burden. Despite
this, only around one in every fifty Indians, is covered through some form of individual medical
insurance. Further, it has been observed that 2 out of every 5 individuals hospitalised in India end up
either borrowing money or selling assets to cover healthcare costs. This situation is set to escalate
further as private health care spends in India are estimated to increase by 2 to 3 times over the next 12
years.
 
Hence you need a solution that gives you peace of mind by providing financial cover to both you and
your family against unforeseen hospitalisation events.
 
So what should you look for when buying a medical/hospitalisation cover:
 

 Does the plan guarantee you insurability at renewal irrespective of your health status? 
 Does the plan ensure that no new exclusions are added or no increase in premiums occurs just
because a claim is made?
 Does the plan clearly state exclusions at the time of taking the policy and also offer you cover
against pre-existing conditions?

 
ICICI Prudential Life Insurance presents MediAssure, a health insurance plan with a AAA
guarantee for the family

 Assured cover till age 75 years

 Assured coverage for accepted pre-existing illnesses after 2 years
 Assured price for 3 years

 
Moreover, this policy covers all your hospitalisation needs with the flexibility to choose your location
and quality of treatment.
ICICI Pru Hospital Care II
Presenting ICICI Pru Hospital Care II – a family floater plan covering your spouse and children.
 
ICICI Pru Hospital Care II - this fixed benefit hospitalisation and surgical plan complements your
existing coverage by offering payouts over and above any health plan you have, thus availing best
possible medical treatment, without having to bother about the cost of the treatment or quality of care.
Give your family the protection they deserve - take home ICICI Pru Hospital Care II, today.
 
Why should you buy Hospital Care II? 
 
Hospital Care II offers the following key benefits:
 

 Fixed benefits to cover hospitalisation, ICU admission, surgical procedure and also recuperating
benefit 
 Benefit amount in addition to other medical insurance plans, irrespective of actual billing
 Additional benefits for prolonged stay & non surgical hospitalisation
 Guaranteed insurability at renewal for whole life
 Tax benefits under section 80D
 Cashless claim settlement 
 A family floater option

Health check-up
Health Assure Plus
Illnesses have a way of sneaking up on us, weakening our financial stability and stealing our family's
peace of mind. It is best to keep oneself insured at all times against the most critical illnesses that are
also the most common: Cancer, Coronary Artery Bypass Graft or Surgery, Heart Attack, Kidney Failure,
Major Organ Transplant, and Stroke.
 
ICICI Prudential's HealthAssure Plus financially insures you against these six critical illnesses. Should
you ever be diagnosed with one or more of these, HealthAssure Plus provides you with a fixed sum,
irrespective of your actual medical expenses. The health plan thus shoulders the heavy costs of your
treatment and ensures you stay financially stable, come what may.
 
This financial guarantee during illness is not all that HealthAssure Plus delivers. HealthAssure Plus
comes with an added benefit: it insures your life, as well. So should an unexpected accident or disability
claim your life, your family will receive the entire Sum Assured-an amount large enough to ensure they
live securely, even in your absence.
 
Crisis Cover
Life is hectic in today's fast paced world. Along with the rapid pace and progress comes the bane of
modern life such as increased stress, poor diet and lack of exercise. The alarming aspect is that, owing to
these factors, more and more Indians are becoming vulnerable to critical illnesses every year. These
illnesses, coupled with increasing costs of treatment, have made recovery a long and expensive process.
 
It goes without saying that securing your family's financial future is a part of prudent financial planning.
However, no less important is your health and well-being, for which you need a comprehensive health
coverage. And, given our lifestyles, it should ideally be a plan that provides complete protection against
Disease, Disability and Death.
 
 

         
 

Keeping this need in mind, ICICI Prudential Life Insurance presents Crisis Cover. This all-inclusive
long term insurance policy provides coverage against 35 critical illnesses, total and permanent disability,
and also death.
 
So, get the right protection tailored to suit your lifestyle, with this plan which is
• Comprehensive
• Affordable
• Long Term
 TAX PLANNING SOLUTIONS

TAXATION

TAX BENEFITS ON INSURANCE AND PENSION.

Life insurance and retirement plans are effective ways of saving taxes. The tax breaks that are

available under various insurance and pension policies are described below:

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

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

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

4. The proceeds or withdrawals of life insurance policies are exempt under Sec

10(10D), subject to norms prescribed in that section.

Surcharge on Income Tax: In case where the Total Income exceeds Rs 10,00,000, there

would be a surcharge @ 10%.

Education Cess on Income Tax: Education Cess @2% will be payable on the amount of

income tax (including surcharge).

TAX SAVING INVESTMENT AVENUES:

National Saving Certificate (N.S.C): Invest in National Savings Certificates on which an

individual can earn 8 per cent.

Along with it, Section 80L allowed deduction of interest earned on, say, a National Savings

Certificate or a bank deposit up to a limit of Rs 12,000.

Public Provident Fund (PPF): For all individuals working people, contribution to provident

fund (12 per cent of your basic salary) is mandatory and that's a good thing because your

employer makes an equal contribution and you earn 9.5 per cent on the total.

For the totally risk averse, there's the good old Public Provident Fund (it has a lock-in period of

15 years but you can borrow against your deposits after seven years) which earns you 8 per

cent.

This is a great scheme to give one’s kids a head start in life, so keep putting away small

amounts for them. Till the government decides to tax the interest on PPF

Will PPF be taxed on maturity?

Under the new Budget, you will be taxed when you withdraw your PPF on maturity. PPF will be

taxed under the Exempt-Exempt-Tax Rule. EET is nothing but a name for the tax system,

where investment in certain savings plans is deductible from income.

Now, one will get the deduction from his income, thus lowering the tax liability. The interest

amount is also exempt under Section 10. But when the amount matures or is withdrawn, it will

be taxable in that year of maturity/withdrawal. It will be taxed even if one goes in for a

premature withdrawal.

Accordingly, the principal amount at the time of maturity will be taxable as per your slab rate.
Let's say you invest Rs 10,000 every year in PPF. After 15 years, you receive a lumpsum of

approximately Rs 215,000. Every year, you are eligible for a deduction of Rs 10,000 from your

income and thus save tax on it.

Now, it has been proposed that whatever amount you receive on maturity, your deposits of Rs

150,000 (Rs 10,000 x 15 years), will be taxable out of the total amount. This can be termed as

Deferment of Tax and not saving of tax. In other words, you will defer (postpone) the payment

of tax, depending on the lock-in period of your tax saving investment. Some time or the other,

though, the investment will mature. And tax will be levied then.

Housing loan principal repayment: Under Section 88, one gets a rebate on the principal of a

home loan only up to Rs 20,000. Under 80C, one can use up the entire Rs 100,000 to repay

your home loan principal

For those who have no money to save but have a home loan, use the tax break for a higher

principal amount. Typically, the equated monthly installment would have a higher share of

interest in the initial stages and a higher principal component towards the latter half of the loan

tenure. The trick, therefore, would be to claim the tax break on as high a principal amount as

possible.

Equity Linked Savings schemes: For punters, things couldn't get better. You can put Rs

100,000 in an equity linked savings scheme and end up getting a 30 per cent return upfront (in

the form of a tax break in the highest slab).

Next, you must insure yourself to some extent -- so buy a pure term policy. The trick here is

not to opt for a unit-linked insurance plan but to pick up the cheapest term policy in the market

and top it up with an ELSS.

A combination of a pure term policy and an ELSS is a sure-fire winner for two reasons.

First, the upfront charges for ULIPs are prohibitive -- between 20 and 40 per cent, depending

on the nature of the schemes - -and sometimes this offset the tax benefit that you get.

The second is the 30 per cent upfront gain (tax break).

Therefore, assuming that the fund managers of both schemes are equally competent (and

there is no reason to assume differently), the returns on an ELSS are likely to be far better --

they have returned around 40 per cent in the last few years. What's more, the dividends from

ELSS, if any, would be tax-free too. But remember that there's a three-year lock-in period for

ELSS and ULIP plans.

Life insurance: If one is keen to save for the future, another option is the annuity plan, which

you can pick up from any life insurer.

Earlier, one could only invest Rs 10,000 every year, but now there's no cap. A ULIP annuity

scheme could give you an upside in the form of higher investment returns from either debt or

equity. If one is below 40 you could perhaps plump for an equity scheme, but if one is older,

debt schemes are a better bet.

Pension: If one can live with some risk buy into a pension fund set up by a mutual fund. These

funds invest in both debt and equity schemes though there's not too much of a choice right

now with only Templeton and UTI offering these products.

Benefits under Section 80CCC for contributions made to pension plans remain unchanged. It

is expected to be amended and brought in line with the Rs 100,000 limit as offered by Section

80C. Till date, pension investments were mostly driven by Section

80CCC benefits. After this budget, we should see retirement planning take a front seat, as

pension will play a more important role in your insurance portfolio.

Section 10(10D) has not been tampered with. The benefits under this section are still available

so individuals need not worry about death or maturity benefits while buying life insurance.

Mediclaim.

Donations.

Infrastructure bonds

Repayment of loan for higher education.

ULIPS (UNIT LINKED INSURANCE PLANS)
ULIPs, or Unit Linked Insurance Plans, have gained high acceptance due to the attractive features they
offer. Benefits include flexibility, Transparency, Liquidity, and Fund Options.
 
Flexibility 
 
A ULIP offers the customer an acute degree of flexibility: the flexibility to choose the Sum Assured, and
to choose the desired premium amount. ULIPs give the customer the option of changing the level of
Premium/Sum Assured even after the plan has started, and the flexibility to change asset allocation by
switching between funds with ease.
 
Transparency 
 
ULIPS offer a high degree of transparency, where all charges in the plan as well as the entire net amount
invested is made known to the customer. ULIPs also offer the convenience of tracking your investment
performance on a day to day basis, so you can decide instantly where you want your assets allocated.
 
Liquidity 
 
A ULIP offers you the option of withdrawing money a few years into the plan, allowing for the
exigencies of life. Alternatively, a ULIP will also allow for partial/systematic withdrawal should the
need arise.
 
Fund Options 
 
A ULIP will offer you a wide choice of funds, ranging through equity, debt, cash, or a combination of
the three. The customer is also afforded the option of choosing your fund mix based on your desired
asset allocation.

TRADITIONAL PLANS
These are the oldest types of insurance plans available. These plans cater to customers with a low risk
appetite. Some of the common features of traditional plans are:
 

1. Steady Investment
1. Major chunk of investible funds are in debt instruments.
2. Steady and almost assured returns over the long term.
2. Features
1. Death benefit is Sum Assured + guaranteed & vested bonus.
2. Helps in asset creation as they are for a long tenure.
3. Premium to Sum Assured ratios are fixed for each plan and age.

Generally withdrawals are not allowed before maturity.

Data Analysis and Interpretation

What is your annual income?

Income Level No. Of Respondents Percent

LESS THAN 150000 2 4%

150001 – 300000 10 20%

300001 – 1000000 30 60%

ABOVE 1000000 8 16%

Total 50 100%

Table No. 1 Respondent Income Group

Percent
70%
60%
50%
40%
30%
20% Percent
10%
0%
0 0 0 0
0 00 0 00 0 00 0 00
15 30 00 00
N 1
– –1 E1
THA 00 01 O V
SS 15
0 00 AB
LE 30

Graph No 1
 Percent

LESS THAN 150000

150001 – 300000
300001 – 1000000
ABOVE 1000000

Graph no 1

Interpretations
 Do you make investments?

Investment No. Of Respondents Percent

Yes 40 80%

No 10 20%

Table No. 2 Investment

Percent

Yes
No

Graph 2
 If yes, where do you make investment?

Investment No. Of Respondents Percent

Bank Deposits 30

Mutual Fund 30

Shares 10

Life Insurance 20

Postal Deposit Schemes 5

Real estate 2

Table No. 3

No. Of Respondents
35
30
25
20
15
10
No. Of Respondents
5
0
its d es ce es te
os un ar an m sta
ep la F Sh su
r he e
Sc al
n kD ut
u
e In sit Re
f
Ba M Li ep
o
la D
st
Po

Graph 2
 What are the reasons to make investments?

Investment No. Of Respondents

Tax Saving 30

Return 5

Capital Appreciation

Secure investment 2

Life cover 15

Other

Table No. 4

No. Of Respondents
35
30
25
20
15
10 No. Of Respondents
5
0
g n t er r
vin
r on en he
a tu ati m ov t
xS Re ci st e c O
Ta pre n ve Lif
p e i
lA ur
ita ec
p S
Ca

Graph 3
 Are you satisfied with your Investment?

Investment No. Of Respondents

Yes 28

No 12

Table No. 5

No. Of Respondents

Yes
No

Graph 3
 Have you heard about private insurance company ICICI prudential life?

Investment No. Of Respondents Percent

Yes 45 90

No 5 10

Table No. 6

Yes

No. Of Respondents
Percent

Graph 4
 From where did you come to know about ICICI prudential life insurance?

Investment No. Of Respondents

Electronic Media 30

Print Media 30

Seminar 2

Workshops 5

Advisor 18

Table No. 7

No. Of Respondents

Electronic Media
Print Media
Seminar
Workshops
Advisor

Graph 5
 Do u have Insurance policy?

Investment No. Of Respondents Percent

Yes 45 90

No 5 10

Table No. 8

Percent

Yes
No

Graph 6
 Which Plan is it

Investment No. Of Respondents

ULIP 18

Traditional Plan 2

Table No. 9

No. Of Respondents

ULIP
Traditional Plan

Graph 7
what are the reasons for investment in ULIP

Reasons for ULIP No. Of Respondents

Life Protection 15

Investment and Savings 18

Flexibility 18

Transparency 18

Liquidity 18

Tax Planning 18

Table No. 10

No. Of Respondents

Life Protection
Investment and Savings
Flexibility
Transparency
Liquidity
Tax Planning

Graph 8
 Do you think ULIP is a risky investment?

Investment No. Of Respondents

Very Risky 12

Less risky 3

Safe 3

Very Safe 0

Table No. 11

No. Of Respondents
14

12

10

8 No. Of Respondents

0
Very Risky Less risky Safe Very Safe

Graph No. 9
 Do you have any plan to buy ULIP plans in near future?

Buy ULIP No. Of Respondents Percent

Yes 40 80

No 10 20

Table No. 12

Percent

Yes
No

Graph 9
What steps do you suggested to the companies to make their ULIP plans more popular?

Suggestion No. Of Respondents Percent

More Advertisements 10 20

Arrange more workshops 10 20

Arrange more seminars 15 30

Reduce charges 40 80

Create awareness through 30 60

advisors

Table No. 13

Percent

More Advertisements
Arrange more workshops
Arrange more seminars
Reduce charges
Create awareness through
advisors

Graph 11
SWOT ANALYSIS OF ULIP

STRENGTHS

1. Liquidity Benefit:

There is no maturity date. Anytime after 3 premium-paying years you can make partial or

complete withdrawals at no charges.

2. Choosing investment portfolio

 Maximiser.

 Protector

 Balancer

 Preserver

3. Switching: Choice to switch between the various investment plan options, absolutely free, 4

times every year.

4. Top – Up: Invest surplus amounts. Top-ups will not have effect on the sum assured.

5. Increase/Decrease sum assured.

6. Premium holiday: If premiums have been paid for at least 3 years and because of some

reason, premium cannot be paid, then the policy does not lapse; the coverage will be

continued via adjusting the unit fund for the mortality premiums.
7. Flexible contribution: Contribution can be increased without any limits.

8. Additional allocation of units: As a policyholder one is provided with additional allocation

of units on periodic basis. These will depend upon the total value of units of the policy

9. Loan against the policy

: After the policy has acquired a surrender value one can avail loan against the policy.

10. Rides: Choice of riders along with death benefits to give total protection – all at a marginal

cost

 Accident and Disability rider

 Critical Illness Rider

 Major Surgical Assistance Benefit Rider

 WEAKNESSES

1. Policy does not acquire a surrender option before the end of third year of policy.

2. It has evolved a solution for policyholders, as most ULIP investors are not really financially

savvy.

3. High premium allocation charges: The premium allocation will be based on the contribution

limits. The yearly allocation would be as follows.

Contribution Range 1st year 2nd year 3rd year onwards

18,000 – 49,999 80% 92.5% 96%
50,000 and above 82% 92.5% 96%

4.

Mortality charges are deducted based on um assured and age of life assured.

5. Plan do not offer any guarantee or assured return.

6. In case of partial withdrawals, one needs to maintain a minimum balance of Rs. 10000

across all funds. In case the unit value is 9inadequate to cover charges, the policy will

terminate.
OPPORTUNITIES

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

2. The proceeds or withdrawals of life insurance policies are exempted under Sec 10(10D),

subject to norms prescribed in that section.

3. Large majority of Indian population still are not insured.

4. Equity markets have shown a good performance due to the strong inflow from FII and

domestic funds through IPO’S in first quarter of year.

5. Finance minister unveiled a budget-favoring consumer spending, boosting demand and

therefore higher economic growth.

6. Preserver fund looks good due to comfortable liquidity in the economy and there is little

chance of any hike in short-term rates by RBI.

THREATS

1. The Unit value of the Units of this plan can go up or down depending on the factors and

forces affecting the financial and debt markets from time to time and may also be affected by

changes in the general level of interest rates.

2. The investments in the Units are subject to market and other risks and there can be no

assurance that the objectives of the plan will be achieved.

3. Past performance of this plan is not indicative of the future performance of the plan.

4. All benefits payable under the policy are subject to the tax laws and other financial

enactment, as they exist from time to time.

 FINDINGS

1. Customers prefer public sector insurance company that is Life Insurance Cooperation

as compared to the private insurance companies.

2. Nearly 68% of the people have opted for one policy or other and about 80% of them

have opted for LIC.

3. Lifetime is the most popular product among the people who are aware about ICICI PUR

products.

4. People invest in insurance mainly because of Tax rebate concern.

5. Among the companies offering Insurance in India LIC is most popular, ICICI PUR

comes at second place.

6. Most of the people are unaware about the working of Unit Linked Insurance Plans.

7. Only 10% of the people feel that investing in ULIP is not risky.

8. People are now showing more interest in ULIP as compared to some of the traditional

plans.

9. Nearly about 50% of the people feel that Insurance companies should be more

transparent.
 CONCLUSION

1. LIC enjoys credibility over other private players in the industry

2. People look for tax rebate over security in market linked plans

3. Lifetime is the most popular product among the people who are aware about ICICI PRU

products.

4. People are now showing more interest in ULIP as compared to some of the traditional

plans.

5. ICICI PRU has to counter the distribution network of LIC

6. The product profile of ICICI PRU is not very comprehensive

 LIMITATIONS

The results are not comprehensive and representative of entire Indian population because of: -

1. The geographical area was very much limited to residential area & so the results are not

particularly reflection of the current behavior.

2. Biases and non-cooperation of the respondents.

3. Due to limited time period and constrained working hours for most of the respondents,

the answers at times were vague enough to be ignored.

4. Most of the people in India take their policies in the period preceding March(for tax

saving purposes) & so the response to initial contacts were not all encouraging and that

has been the primary reason in the inability to quantify the results large enough so as to

deduce any relevant outcomes.

5. Most of the results that are spelt out have been of qualitative aspects.
 RECOMMENDATIONS
1. The company should spend more on the promotional activities like advertisement in

television, newspapers etc. to create more awareness of the products as they have

more recall value.

2. Company needs greater awareness of its product among target audiences.

3. More business opportunity seminars should be conducted to make people aware of the

offer.

4. Company should regularly send its advisors to customers so that they should be aware

of latest offer.

5. Total financial awareness and advice should be given to every customer.

6. Company should open more of its branches so as to promote its product and increase

its agency force.

7. Some guarantee should be given on its most popular product LifeTime.

8. Short-term capital guaranteed products should be introduced.

9. More emphasis should be given on Smart Kid, PremierLife and Capital guaranteed

products by the advisors.

 BIBLIOGRAPHY
1) Kothari C.R (1998), Research Methodology, Method and Technique, Wishwa
Parkashan New Delhi.
2) Gupta M.P, Khanna R.B (2004), Quantitative Technique for Decision Making, Prentice
Hall of India Pvt. Ltd. New Delhi.
3) Kotler Philip (2000), Marketing Management, Prentice Hall of India Pvt. Ltd. New Delhi.
4) ‘Marketing and Sales Management’ Business Management Club (2003),
http://www.bestbusinessinfo.com
5) Still, Cundiff, Govoni, Sales Management, Prentice Hall of India Pvt. Ltd. New Delhi.
6) Business Associates Manual
7) World Wide Web Sites:- www.ICICIPRULIFE.COMM
 APPENDIX
QUESTIONNAIRE
NAME____________________________ AGE_____
QUALIFICATION____________________ OCCUPATION________________

Q 1. What is your annual income?

a. Less than 150000 [ ]
b. 150001 – 300000 [ ]
c. 300001 – 1000000 [ ]
d. Above 1000001 [ ]
Q 2. Do you make investments?
a. Yes [ ]
b. No [ ]
Q 3. If yes, where do you make investment?
a. Bank deposits [ ]
b. Mutual Funds [ ]
c. Shares [ ]
d. Life insurance [ ]
e. Postal deposit schemes [ ]
f. Real estate [ ]
g. Precious metal [ ]
Q 4. What are the reasons to make investments?
a. Tax Saving [ ]
b. Return [ ]
c. Capital Appreciation [ ]
d. Secure investment [ ]
e. Life cover [ ]
f. Other [ ]
Q 5. Are you satisfied with your Investment?
a. Yes [ ]
b. No [ ]
Q 6. Have you heard about private insurance company ICICI prudential life?
a. Yes [ ]
b. No [ ]
Q 7. From where did you come to know about ICICI prudential life insurance?
a. Electronic media [ ]
b. print media [ ]
c. Seminar [ ]
d. Workshops [ ]
e. Advisor [ ]
f. Others [ ]
Q 8. Do u have Insurance policy?
 a. Yes [ ]
b. No [ ]
Q 9. If yes, which company policy do you have?
a. ICICI Prudential [ ]
b. HDFC Standard [ ]
c. Bajaj Allianz [ ]
d. Birla Sun Life [ ]
e. LIC [ ]
f. Other ………………………………...
Q 10. If Yes, please specify: -
PLAN NAME: _______________________
a. Saving plan [ ]
b. Protection plan [ ]
c. Pension plan [ ]
d. Children’ s plan [ ]
Q 11. Which Plan is it
a. ULIP [ ]
b. Traditional Plan [ ]
Q 12. What are the reason for investment in ULIP
a. Life protection [ ]
b. Investment and Savings [ ]
c. Flexibility [ ]
d. Transparency [ ]
e. Liquidity [ ]
f. Tax planning [ ]
Q 13. How much return you are expecting from your ULIP?
a. 15-25% [ ]
b. 25-35% [ ]
c. 35-45% [ ]
d. ABOVE THAN [ ]
Q 14. Do you think ULIP is a risky investment?
a. Very risky [ ]
b. Less risky [ ]
c. Safe [ ]
d. Very safe [ ]
Q 15. Do you have any plan to buy ULIP plans in near future?
a. Yes [ ]
b. No [ ]
Q 16. If you are not taking any ULIP plans, please tell us the reasons why?
a. We couldn’t afford [ ]
b. We don’t see any benefit with the system. [ ]
c. We don’t want insurance. [ ]
d. We don’t understand how ULIP works. [ ]
e. We are not too much aware of ULIP plans. [ ]
Q 17. What do u think Which Plan Gives u Max Benefits?
 a. Traditional Plan [ ]
b. ULIP [ ]
Q 18. What steps do you suggested to the companies to make their ULIP plans more popular?
a. Give more advertisements. [ ]
b. Arrange more workshops. [ ]
c. Arrange more seminars [ ]
d. Reduce charges [ ]
e. Create awareness through advisors [ ]
f. Others_______________________.