Birla sun life insurance

Birla Sun Life Insurance

PROJECT REPORT ON

STUDY OF PRODUCT PORTFOLIO

OF

SUBMITTED BY:

A report submitted in partial fulfillment of BBA programme at

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ACKNOWLEDGEMENT

We would like to express our sincere gratitude and thanks to Mr.
Rajesh Rao, Agency Manager, Birla sun life insurance ltd,
Jaipur for giving us the guidance. We owe everything we have
gained from the project in terms of knowledge and experience to
them, as without their timely support and encouragement the
project would not have been as fruitful as it has been.

We also thank Mr. Ashwin saxena for his constant encouragement
and guidance at every stage of this project, acting as my faculty
guide. He has been kind enough to spare his valuable time and
share his corporate experiences, which helped me to approach the
project in the right way.

We are grateful also to the entire staff of Birla sun life insurance
ltd who helped us to collect the relevant data and get the real gist
of current scenario.

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We would also like to extend sincere thanks to few people who
were not part of our project but without their help things would not
have been as easy as they were.

THANK YOU ALL

Bhanwar lal kumawat (BBA 3ndYear)

Parishkar college of Global
Excellence.
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CONTENTS

1. Introduction to insurance
5

2. Fundamental principles of insurance
6-8

3. Reasons for taking a life insurance policy
9-10

4. Vision, Mission, Values
11

5. Company Profile
12-16

6. Sales Procedure
17-19

7. Company’s Products
19-34
7.1 Flexi Plans
7.2Classic Life Premier
7.3 Gold plus II Plan
7.4 Supreme Life Plan
7.5 Platinum plus Plan

9. Funds by BSLI
34-39

11. Conclusion
40

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12. Recommendation
41

13. Bibliography
41

14. Annexure
42-44

“Insurance, in law and economics, is a form of risk
management primarily used to hedge against the risk of a
contingent loss. Insurance is defined as the equitable
transfer of the risk of a loss, from one entity to another, in
exchange for a premium. An insurer is a company selling
the insurance. The insurance rate is a factor used to
determine the amount, called the premium, to be charged
for a certain amount of insurance coverage. Risk
management, the practice of appraising and controlling
risk, has evolved as a discrete field of study and practice.”

The evolution of human beings from the primordial ‘wild’
stage to the ‘cave dwelling’ stage is nothing but their saga
of search for security. Their quest for security is eternal.
Life insurance is a device invented by them to seek security
against the most important hazards against which they
found themselves quite helpless. It will not be an
exaggeration to say that progress of civilization is due to
human beings’ unending pursuit for security.

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Life insurance in its modern form is a western concept.
Although it started taking shape since last 300 years, it
came to India with the arrival of the Europeans .the first life
insurance company was established in India in 1818 as
oriental life insurance company mainly by Europeans to
provide for widows of Europeans. The companies that
followed mainly catered to Europeans and charge extra
premium on Indians lives. The first Indian company,
insuring Indian lives at standard rates, was Bombay mutual
life insurance company, which was formed in 1870.this was
the year also when the first Insurance Act was passed by
the British parliament. The years subsequent to the
Swedishi Movement saw the emerging of several insurance
companies.
The end of the year 1955, there were 245 insurance
companies and provident societies out of which 16 were
non-Indian companies. These companies were nationalized
in 1956 and brought under one umbrella – the life insurance
corporation of India, which enjoyed monopoly of life
insurance business, till almost up to the end of year
2000.By enacting the IRDA Act 2000,the government of
India effectively ended LIC’s monopoly and opened the
doors for private insurance companies

FUNDAMENTAL PRINCIPLES OF
INSURANCE
Some useful terms in Insurance:

A) INDEMNITY

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A contract of insurance contained in a fire, marine,
burglary or any other policy excepting life assurance and
personal accident and sickness insurance) is a contract of
indemnity. This means that the insured, in case of loss
against which the policy has been issued, shall be paid the
actual amount of loss not exceeding the amount of the
policy, i.e. he shall be fully indemnified. The object of
every contract of insurance is to place the insured in the
same financial position, as nearly as possible, after the loss,
as if his loss had not taken place at all. It would be against
public policy to allow an insured to make a profit out of his
loss or damage.

B) UTMOST GOOD FAITH
Since insurance shifts risk from one party to another, it is
essential that there must be utmost good faith and mutual
confidence between the insured and the insurer. In a
contract of insurance the insured knows more about the
subject matter of the contract than the insurer.
Consequently, he is duty bound to disclose accurately all
material facts and nothing should be withheld or concealed.
Any fact is material, which goes to the root of the contract
of insurance and has a bearing on the risk involved. It is
only when the insurer knows the whole truth that he is in a
position to judge
(a) Whether he should accept the risk and
(b) What premium he should charge.

If that were so, the insured might be tempted to bring about
the event insured against in order to get money.

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C) Insurable Interest - A contract of insurance affected
without insurable interest is void. It means that the insured
must have an actual pecuniary interest and not a mere
anxiety or sentimental interest in the subject matter of the
insurance. The insured must be so situated with regard to
the thing insured that he would have benefit by its existence
and loss from its destruction. The owner of a ship run a risk
of losing his ship, the charterer of the ship runs a risk of
losing his freight and the owner of the cargo incurs the risk
of losing his goods and profit. So, all these persons have
something at stake and all of them have insurable interest.
It is the existence of insurable interest in a contract of
insurance, which distinguishes it from a mere watering
agreement.

D) Causa Proxima - The rule of causa proxima means that
the cause of the loss must be proximate or immediate and
not remote. If the proximate cause of the loss is a peril
insured against, the insured can recover. When a loss has
been brought about by two or
more causes, the question arises as to which is the causa
proxima, although the result could not have happened
without the remote cause. But if the loss is brought about
by any cause attributable to the misconduct of the insured,
the insurer is not liable.

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E) Risk - In a contract of insurance the insurer undertakes
to protect the insured from a specified loss and the insurer
receive a premium for running the risk of such loss. Thus,
risk must attach to a policy.

F) Mitigation of Loss - In the event of some mishap to the
insured property, the insured must take all necessary steps
to mitigate or minimize the loss, just as any prudent person
would do in those circumstances. If he does not do so, the
insurer can avoid the payment of loss attributable to his
negligence. But it must be remembered that though the
insured is bound to do his best for his insurer, he is, not
bound to do so at the risk of his life.

G) Subrogation - The doctrine of subrogation is a
corollary to the principle of indemnity and applies only to
fire and marine insurance. According to it, when an insured
has received full indemnity in respect of his loss, all rights
and remedies which he has against

Third person will pass on to the insurer and will be
exercised for his benefit until he (the insurer) recoups the
amount he has paid under the policy. It must be clarified
here that the
Insurer’s right of subrogation arises only when he has paid
for the loss for which he is liable under the policy and this
right extends only to the rights and remedies available to

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the insured in respect of the thing to which the contract of
insurance relates.

H) Contribution - Where there are two or more insurance
on one risk, the principle of contribution comes into play.
The aim of contribution is to distribute the actual amount of
loss among the different insurers who are liable for the
same risk under different policies in respect of the same
subject matter. Any one insurer may pay to the insured the
full amount of the loss covered by the policy and then
become entitled to contribution from his co-insurers in
proportion to the amount which each has undertaken to pay
in case of loss of the same subject-matter.

In other words, the right of contribution arises when

1) There are different policies, which relate to the same
subject matter
2) The policies cover the same peril which caused the
loss, and
3) All the policies are in force at the time of the loss,
and
4) One of the insurers has paid to the insured more than
his share of the loss.

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Life Insurance Policy is a form of security for the person
who insures his life and his family. Life insurance policies
have helped trade and other economic activities to flourish
in a great manner. It has generated lots of job opportunities.
It is looked upon as a lucrative career option. Life
insurance companies have also entered the international
business scenario.

The following reasons substantiate why a life
insurance policy should be taken:

A) Early Deaths
The mortality rate is experiencing a declining trend in
many parts of the world. However it is also important to
note that the age at which People die is also ever
decreasing. Some reasons for this include unhealthy living
style, stress, pollution, and some natural calamities. This
necessitates people to make adequate measures to yield
income for their family and dependents. This could be a
serious concern if the insured happens to be the sole
breadwinner. Some individuals see this as an option to plan
their retirement.

B) Advancements in Health Care
The mortality rate has declined rapidly even though the fact
remains that the number of people who die at an early age
is on the increase. This is mainly due to the advancement in
healthcare and the awareness on medical facilities. This
results in an increased spending at an old age. This
increased spending is also due to increase in the costs of

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living apart from paying expensive medical bills. Unless
they invest in Life insurance or other forms of insurance
like health insurance it becomes next only too impossible to
meet the financial demands especially during the old days.

C) Increase in the Cost of Living and Spending
Power
The purchasing power of the consumers and the standard of
living has experienced a steep rise over the years. The
increase in National Income and gross domestic product are
Partly responsible for this. Individuals incur many
unexpected expenses due to the growing needs. Insurance
comes in handy to meet such an unexpected expense. It
also
Makes sure that an individual is able to meticulously plan
his finances.
Insurance option is more or less an interest free loan. An
individual can cancel his insurance policy and obtain a
huge amount if it is imperative in meeting an urgent
expenses and he does not have alternative sources for
finance. Life insurance companies therefore do the needful
to consumers.

D) Tax Concessions

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Income tax concessions are available to individuals and
corporate houses that adopt insurance policies. Many have
been making investments in Insurance with the sole aim of
enjoying tax benefits. This naturally increases spending
power. Since the investments increases the economic
activities in the country automatically increases.

VISION

To be a world class provider of financial security
to individuals and corporates and to be amongst
the top three private sectors life insurance
companies in India.

MISSION

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To be the first preference of our customers by
providing innovative, need based life insurance
and retirement solutions to individuals as well as
corporates. These solutions will be made available
by well-trained professionals through a multi
channel distribution network and
Superior technology.

Our endeavor will be to provide constant value
addition to customers throughout their
relationship with us, within the regulatory
framework.
We will provide career development opportunities
to our employees and
The highest possible returns to our shareholders.

VALUES

 Integrity: Honesty in every
action.
 Commitment: Deliver on the
promise
 Passion: Energized action
 Seamlessness: Boundary less in
letter & spirit
 Speed: One step ahead always

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COMPANY PROFILE

Birla Sun Life – A Coming Together Of Values

Birla Sun Life is a joint venture between The Aditya
Birla Group, one of the largest business house in India and
Sun Life Financial Inc., a leading International Financial
Services Organization. The local knowledge of the Aditya
Birla Group combined with the expertise of Sun Life
Financial Inc. offers a formidable protection for our future.

The Aditya Birla Group is led by its chairman- Mr. Kumar
Manglam Birla. The Group has over 88000 employees
across all its units worldwide. Some of the key
organizations with the group are Hindalco, Grasim, Aditya
Birla Nuvo, etc.

The group is India's leading business house with a number
of key organizations. These are as follows:
1. Grasim
2. UltraTech Cement Ltd
3. Hindalco
4. Indian Aluminium Company Ltd
5. Aditya Birla Nuvo
6. Idea Cellular Ltd.
7. Birla Sun Life Insurance Co.Ltd
8. Birla Sun Life Asset Mgmt. Co.Ltd

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9. Birla Sun Life Distribution Co. Ltd
10. PSI Data Systems
11. Indo Gulf Fertilizers Ltd.
12. Birla Global Finance Ltd

Sun Life Financial Inc. and its partners today have
operations in key markets worldwide, including Canada,
the United States, the United Kingdom, Hong Kong, the
Philippines, Japan, Indonesia, India, China and Bermuda.
Sun Life Financial Inc. is a leading player in the life
insurance market in Canada.

Share Holding Pattern:
In Birla-Sun Life, the two companies are having
shareholding pattern as follows:
74 %--> Aditya Birla Group
26 %--> Sun Life Financial Inc.

The group has 3 businesses:
1. Mutual Funds
2. Wealth Management
3. Life Insurance

Birla Sun Life Insurance co ltd. is the Life-Insurance
arm of Birla-Sun Life

Birla Sun Life Insurance in its 7 successful years of
operations has contributed significantly to the growth and

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development of life insurance industry in India. It
pioneered the launch of Unit Linked Life Insurance plans
amongst the private players in India. It was the first player
in the industry to sell its policies through the
Bancassurance route and through the Internet. It was the
first private sector player to introduce a Pure Term plan in
the Indian market. This was supported by sales practices,
which brought a degree of transparency that was entirely
new to the market. The process of getting sales illustrations
signed by customers, offering a free look period on all
policies, which are now industry standards were introduced
by BSLI. Being a customer centric company, BSLI has
covered more than a million lives since inception and its
customer base is spread across more than 1000 towns and
cities in India. All this has assisted the company

in cementing its place amongst the leaders in the industry in
terms of new business premium income. The company has
a capital base of more than Rs.672 crores.

Many ONEs with Birla Sun Life Insurance:
BSLI is a company that has a very unique contribution in
the history of Insurance sector. The company not only has
varying plans and funds, rather also is a pioneer in many
aspects. These pioneering features of BSLI are as follows:

1. Free Look Period: BSLI offers its policyholders
with a free look period of 15 days. Client gets
freedom to have an in-depth look over all the terms

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and conditions regarding his/her life-insurance
policy. If he finds policy not worth opting for, he
can also return the policy, but at BSLI, co. people
ensures this not to happen.

2. Bancassurance: BSLI pioneered Bancassurance in
India. Bancassurance means to include Banks as
one of the distribution channels with the company.
BSLI is the first company, which realized that
banks, with their huge customer base and strong
customer loyalty, are a readymade platform to
acquire new business on a more cost effective and
sustainable basis.

3. Unit Linked Life Insurance Plans: BSLI was the
first in India to introduce Unit Linked Plans. A
ULIP is an auspicious coming together of security
from life

4. insurance and earnings from investment. Which
means, apart from securing the future they offer
efficient returns. These plans provide the customer
with a certain number of units, in the same way as a
mutual-fund holder gets units. ULIPs offer market-
linked returns to policyholders.

5. Sales Illustrations: BSLI is the first company to
introduce Sales Illustrations in the Insurance
Industry. Sales people of BSLI give demonstrations
of fund

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6. Performance on two points of projections i.e. on 6%
and 10%. Now IRDA has also made it mandatory to
have sales illustrations.

BSLI’s has launched Century SIP, a unique systematic
investment plan offering an opportunity to create wealth
with as little as Rs 1000 per month plus a life insurance
cover of up to 100 times the monthly installment.

This plan comes along with free term insurance for an
individual up to 55 years of age.
The life insurance cover comes at no extra cost to the
investor. The cover is hassle free. The investor need not go
thru any medial test to avail of the life cover. All an
investor needs to do is enroll for CSIP & sign a
“Declaration of Good Health”. In case of unfortunate
demise of investor the insurance claim will be directly paid
to the nominee by the insurance company (Birla Sun Life
Insurance Company).

Announcing the launch of Century SIP, Anil Kumar, CEO,
and Birla Sun Life MF said,
“This offering touches all aspects of an investor’s financial
planning needs. We wish to encourage the investment habit
among investors by providing them life insurance cover.”
Insurance cover to the investor would continue even after
the SIP’s minimum maturity tenor of 3 years. Any
individual between 18 to 46 years of age may invest in this
plan. Investment in this plan may be made through

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Electronic clearing system (ECS), direct debits or post
dated cheques.

7. Others: Some other ONEs with BSLI are:

 1st to issue daily NAVs of funds for better
transparency.

 1st to have a distinct CRISIL benchmark.

 1st to disclose portfolio on a monthly basis.

 Policyholders can view their policy details
online; they can be accessed from BSLI
website using your unique password.

 Out of every 100 claims intimated to BSLI
98.28 stands cleared.

 Also the average Turn Around Time (TAT) :

(i) From the receipt of the last
requirement till dispatch of
cheque is 5 days and

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(ii) From intimation of claim till its
decision & dispatch of cheque
is 36 days.

Sales Procedure of Insurance in BSLI:
BSLI ensures that its policyholders get the best out of the
policy offered to them by their Advisors. For this, BSLI
follows a set procedure of selling Insurance to the clients.
The sales procedure can be diagrammatically presented as
follows:

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SUSPECTING

PROSPECTING

APPOINTMENT

FIRST SALES CALL

FOLLOW UPS

SALES CLOSED

OFFICE WORK

This procedure can be stepped down as follows:

1. Pitching the customer: The first and foremost thing is
that, client should be ready to purchase the Insurance plan.
Insurance is not a very preferable product yet in India. And,
thus, co. has to be very vigilant. Advisors, at BSLI,
maintain relationships and make the most of their
Goodwill. Insurance is a Relationship oriented business.
Keeping this in mind BSLI also initiated Bancassurance,

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where Banks’ image of being loyal to the customers, plays
a major role in pitching the customer to buy Insurance.
BSLI uses following routes for distributing their Product to
general public:
a. Direct Personal Contacts (through Advisors)
b. Bancassurance (through Banks)
c. Personal Relations (through co. employees)
d. Existing Policyholders.

2. Sales Illustration: BSLI is the first company to give
demonstration of the fund performance i.e. how a certain
policy will perform or will give returns. BSLI Advisors
give sales illustration. Fund performance is shown on 6%
and 10% projections. If client find these projected returns
suitable to his/her risk profile, he go for purchasing the
policy.

3. Proposal Form: Now as client is ready to get
insured, advisor gives him the proposal form and
asks for all the documents required. Proposal form
is a 4 page document that contains all the necessary
information related to the Insured and the Owner of
the policy. Documents required along with the
proposal form are:
 Date-Of-Birth Proof
 Address & ID Proof
 Income Certificate
 Medical Certificates (only if Insurer is a senior
citizen)

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4. After Sales Service: Now after the Insurance is
sold, follow-ups are required. Advisor needs to
maintain good relations with the policyholder.
Insurance co. can
Generate further business, only if, existing
policyholders are satisfied with the services being
provided by the advisor of the co. Thus, BSLI keeps
this in mind and Business Development Executives
continuously track the needs of the policyholders. BSLI
provides the policyholders with monthly updates of the
fund performance and

also discloses the asset portfolio of the fund. This
assists the policyholders to manage their policy
according to their risk profile. They can, thus, change
their fund allocation as well as the asset allocation in
any fund, chosen by them.

COMPANY PRODUCTS /
PLANS

All the plans associated with BSLI are Unit Linked Plans.

Flexi Plans

Flexi Plans have three variants. These variants are:
1. Flexi Save Plus (Endowment Plan)
2. Flexi Cash Flow (Money Back Plan)

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3. Flexi Lifeline (Whole of Life Plan)

Features:
• This is a Unit Linked Plan with guaranteed returns.
• Provides flexibility with Top-Up Facility.
• For Quarterly modal premium less than Rs.5000,
payment can be made through ECS.
• Policyholder can attach riders to the plan according
to his/her needs.
• Liquidity in the form of Partial withdrawals.

• Three Investment Fund options are available with
the policy and policyholder is free to switch
between funds anytime during the tenure of the
policy.
• The Sum Assured may be increased once in every 5
policy years, starting from the 6th policy year.
• Premium can be paid annually, semi-annually,
quarterly and monthly

Premium Invested: Collected Premium is invested in three
Investment Fund Options. These funds are:
1. Protector
2. Builder
3. Enhancer

Benefits:

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1. Maturity Benefits: At maturity, Policyholder gets
the higher of the guaranteed fund value (min. 3% on
premium) or the Total Fund value.
2. Survival Benefits:

(i) At the end of every 5th Coverage Benefit
Period and the remainder on maturity, an
amount equals to the minimum of (a) or (b)
mentioned below will be reduced from the
guaranteed fund value and transferred to the
holding account for the purpose of partial
withdrawals, where-

(a) Guaranteed Fund Value
(b) Sum Assured % as stated below:
• 30% if the Coverage Benefit
Period is 10 years.
Period is 15 years.
Period is 20 years.
Period is 25 years.

If survival benefits are not withdrawn, they will
continue to be a part of the Fund Value.

(ii) If the life insured is a minor,
policyholder can withdraw the survival
benefit payout within one month from

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the scheduled payout date from the fund
value.

3. Death Benefits:

Age at time of
Death Benefits
Death
30 days to 1 year Fund Value Only
Higher of Sum Assured less all partial withdrawals made in 24
Age 1 Year to 60
months preceeding the death of life insured or the fund value or
Year
the guaranteed fund value.
On or After Higher of Sum Assured less all partial withdrawals made since
attainment of 60 the life insured attained the age 58 or the fund value or the
Years guaranteed fund value.

Charges:
1. Mortality Charges: These charges are deducted by
canceling units on a monthly basis at the prevailing
NAV. The annual mortality charges per 1000 sum
assured for sample ages are as follows:

Age 20 30 40 50 60
Male 1.01 1.17 2.15 5.53 13.732
6 1 0 2
Female 0.89 1.16 1.65 4.03 10.660
6 3 7 0

2. Partial Withdrawal Charges: 2 withdrawals in a
policy year are free of charge. Rs100 for every
additional partial withdrawal are charged.

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Classic Life Premier

This is the plan that not only helps to save for the future but
also helps to get rich benefits from the investments,
especially at a time when the need for family protection
reduces significantly.

Features:
• The plan is a unit linked, non-participating plan.
• This plan has the option of seven-investment fund
with the flexibility to allocate the premiums in
varying proportions into the different Fund Option.
• Top up facility is there. The minimum amount of
top ups is 10000.
• The plan offers further benefits in the form of
additional units, which will be added to the Fund
value at the end of the 10th policy year.
• There is high liquidity in the form of Partial
Withdrawals and Surrender Benefits.
• Death Benefits, which will be higher of the Fund
value or Sum Assured, reduced by the applicable
partial withdrawals.

Eligibility:
• Entry Age:
Minimum: 30 days for 20 & 30 term
8 years for 10 terms
30 years for whole life
Maximum: For 10 years term- 60 years

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For 20 years term- 50 years
For 30 years term- 40 years
For Whole Life- 60 years
• Duration:
Minimum: 10 years
Maximum: 70 years (assuming whole life to
be 100 years)
• Maturity Age: 70 years for the term- 10,20,30 years

100 years for whole life

• Premium Payment Term: For 10 years term- 3, 5yrs
or regular coverage paying period.
For 20 yrs, 30yrs term
and Whole Life- 5yrs, 10
yrs or regular coverage
paying period.

Premium Investment: Premium collected is invested in
Seven Investment Fund Options:
1. Assure
2. Protector
3. Builder
4. Enhancer
5. Creator
6. Magnifier
7. Maximiser

Benefits:

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1. Guaranteed Addition: It is in the form of additional
units, which is added to the fund value on the 10th
policy anniversary and on every 5th policy
anniversary thereafter, while policy is in effect.

2. Partial Withdrawal Options: Partial Withdrawals
can be made after 3 policy years or when the life
insured attains maturity, whichever is later. The
minimum partial withdrawal amount is Rs.10000

3. Surrender Benefits: Policy offers the flexibility of
surrendering the policy, if the need arises. There is
no surrender charge after 6 completed policy years.

However, if the policy is surrendered within 3 years
from inception, the surrender value is paid after the
completion of the third policy anniversary.

4. Death Benefits:

• Below 5 years: If the death of the life
insured take place before 5 years, only the
fund value shall be payable to the policy
owner.
• Between 5 to 60 years: Higher of the fund
value or the sum assured less all applicable
partial withdrawals made in the last 24
months preceding the death of the life
insured.

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• 60 years and Above: Higher of the fund
value or the sum assured less all applicable
partial withdrawals made since the life
insured attained the age of 58.
5. Maturity Benefits: On maturity of the policy, the
fund value is payable. Under the whole life option,
on maturity of the policy, when the life insured
attains the age of 100, then fund value is payable
and the policy will be terminated.
6. Tax Benefits: Tax benefits on premium payment are
governed by section 80C of the Income Tax Act
1961. Tax Exemptions on the amount received on
maturity in the unfortunate event of death and the
withdrawals are governed by section 10(10D).
7. Addition of Riders: Policy holder can customize the
plan by adding any of the following 6 riders:
1. Accidental Death & Dismemberment Rider
2. Term Rider
3. Critical Illness Rider
4. Critical Illness Plus Rider
5. Critical Illness Women Rider
6. Waiver of Premium Rider

Charges:
1. Premium Allocation Charges: These charges during
the premium paying term are as under:

Policy Year 1 2 or 3 Thereafter

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Charge 13% 4% 2%

This charge on Top-up and underwriting extra is 2%.

2. Mortality Charge: This charge will be deducted by
cancellation of units on a monthly basis at the
prevailing NAV. The Annual Mortality charge per
1000 of the Sum at risk for sample ages are as
follows:

Age 25 35 45 55 65
Female 1.023 1.162 2.385 6.441 15.92

Male 1.083 1.363 3.110 8.571 21.06

3. Fund Management Charge: This is charged by
adjustment of the daily NAVs. The charge is:
• 1% p.a. for Assure, Protector, Builder and
Enhancer Fund.
• 1.25% p.a. for Creator, Magnifier and
Maximiser Fund.

4. Policy administration Charge: The charge is
deducted by canceling units on a monthly basis at
the prevailing NAV. The annual charge differs
according to the Life Insurance Coverage Sum
Assured and Life Insurance Coverage Paying
Period. The maximum charge is 6.10 and the
minimum charge is 0.00

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5. Surrender Charge: These charges are levied as the
percentage of the annual life insurance coverage
Premium payable. Charges are as follows:

Policy Year 1 2 3 4 5 6 7+
Surrender 30 20 15 10 8 6
NIL
Charge % % % % % %

6. Rider Premium Charge: If the riders are attached,
this charge will be realized by cancellation of units
on a monthly basis based on the equivalent monthly
rider coverage premium payable, when rider
coverage payment period equals the rider coverage
benefit period.

Gold Plus II Plan

The plan gives much more than a good insurance cover, an
opportunity to grow investment for the medium term. It is
worth more than Gold.

Features:
• It is a Unit Linked, Non-Participating, Insurance
plan.

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• Duration of plan is 8 years.
• Premium paying term of 3 years with the flexibility
to reduce premium up to Rs. 10000 from the second
policy year.
• Plan also has Top-up facility.
• Liquidity in the form of Partial Withdrawals and
Surrender Benefits.
• Plan has 7 fund options.
• Free unlimited fund switching and premium
redirection

Eligibility:
• Entry Age: 18 to 70 years.
• Minimum Premium: Rs.50000
• Minimum sum Assured: 5 x Annual Premium

Premium Investment: Premium collected is allocated in
varying proportions in seven investment fund options.
Policyholder can switch between the fund options anytime
during the tenure of the policy. The seven Investment
Funds available are:
1. Assure
2. Protector
3. Builder
4. Enhancer
5. Creator
6. Magnifier

7. Maximiser

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Benefits:
1. Maturity Benefits:
On maturity fund value will be paid to the
policyholder.
2. Death Benefits:
In the Unfortunate event of the Death of the Life
Insured prior to the maturity date of the policy, the
nominee gets the greater of
(a) Fund Value
(b) Sum Assured reduced for partial withdrawal
as follows:
• Before the life insured attains the
age of 60, the sum assured payable
on death is reduced by partial
withdrawals made in the
preceeding years.
• Once the Life Insured attains the
age of 60, the Sum Assured
payable on death is reduced by all
partial withdrawals made from age
58 onwards.
3. Tax Benefits:
Policyholder is eligible for tax benefits U/S 80C and
U/S 10(10D) of the Income Tax Act 1961.
• U/S 80C- Premium up to Rs.100000 is
allowed as deduction from taxable income
each year.
• U/S 10(10D) - The Benefits received under
plan are exempted from tax.

36


Charges:
1. Premium Allocation Charges:

It is deducted from premium when received and
before allocation of units.

Policy Policy Years
Charges 1 2 3 4+
On Policy
Premium 8% 4% 4%
On top-up
Premium 2% 2% 2% 2%

2. Fund Management Charges:
Fund Management charge not exceeding 1.5% per
annum of the fund value will be charged by
adjustments of the daily unit price. The charge is
• 1% p.a.- Assure, Protector, Builder and
Enhancer
• 1.25% p.a. – Creator, Magnifier and
Maximiser

3. Policy Administration Charges:
These charges are recovered by canceling units on a
monthly basis proportionately from each investment
fund. The annual Rate per 1000 of Sum Assured is:

Policy Policy Years
Charges 1 2 3 4+
Policy 19.4 19.4 19.4 14.4

37


Administration
Charge *

* An additional 5 per 1000 will be charged in the
first 3 policy years only on any excess Sum Assured
over Rs. 50000

4. Mortality Charges: These charges are deducted on a
monthly basis. These charges are taken by canceling
units proportionately from each of the investment
funds at that time. The annual rate per 1000 of Sum
Assured less fund value for sample ages are:

Age 25 35 45 55 65
Female 1.023 1.162 2.385 6.441 15.92

Male 1.083 1.363 3.110 8.571 21.06

5. Surrender Charges:
These charges are applied when the policyholder
surrender their policy in the first 3 policy years. The
surrender charge as a percentage of the annual
policy premium chosen at issue is

Policy Policy Years
Charges 1 2 3 4+

38


Surrender
15% 12.5% 10% nil
Charges

Supreme Life Plan

Features:
• The plan is a Unit Linked Insurance Plan.
• It provides the nominee with an increased sum
assured and builds savings faster.
• The plan offers more protection of money at
supremely low cost.
• Provides with Supreme Accidental TPD (Total
Permanent Disability).
• Policyholder gets freedom to choose premium
amount as low as Rs.25000
• The plan provides with 6 Investment Fund Options.
• The plan is flexible as it provides the policyholder
with Top-Up Premium facility to ensure faster
growth in the Fund Value.
• Partial Withdrawals, are allowed, after 3 years to
meet liquidity needs of the policyholder

Duration:
• Policy Term: 10, 15, 20, 25, 30, 35, 40 Years.
• Premium Payment Term: Policyholder can choose
to pay premium at short or regular intervals.

Premium Investment: Premium Collected is investment in
six investment fund options. These funds are:

39


1. Assure
2. Protector
3. Builder
4. Enhancer
5. Creator
6. Magnifier

Benefits:
1. Death Benefits:
• Double Death Benefits i.e. Death Benefits=
Sum Assured + Savings
• Increasing Death benefits i.e. Death Benefit=
Sum Assured + 25% every 5th year
2. Accidental TPD Benefit:
• Policyholder immediately gets the original sum
assured up to Rs.50 lac
• Co. pays the future premiums up to age 60.
3. Switches & Redirection:
• Policyholder gets flexibility to switch between
the fund options. Two switches are free per
annum.
Charges:
1. Mortality Charges: Charges are deducted monthly
by canceling units from the associated fund option.
The charge is 95%
2. Policy Administration Charges: These charges are
deducted monthly by canceling units from the
investment fund. The annual charge is Rs. 720 on

40


the first 1000 Sum Assured in all years i.e. Rs.3.60
per 1000 Sum Assured p.a. The additional charges
for years 1-5 are as follows:

Term Band 1 Band 2 Band 3
10/15 4.75 4.25 4.00
20+ 3.75 3.25 3.00

3. Premium Allocation Charges: These charges are 5%
for the 1st policy year and 2% for subsequent policy
years.
4. Fund Management Charges: These charges are 1 –
1.25% p.a. for all associated funds.

Platinum Plus Plan

Features:
• This plan is a Unit Linked, Non-Participating,
Insurance plan.
• A policy term of 10 years.
• A premium paying term of 3 years.
• One Innovative Investment fund, namely Platinum
Plus Fund I.
• Full Liquidity after three policy years to meet any
cash needs.
• Unique Guaranteed Maturity Unit Price
representing the highest unit plus price of Platinum

41


Plus Fund I recorded on 88 reset dates starting on
March 17, 2008 and ending on June 15, 2015.
Eligibility:
• Entry Age of Life Insured: 18 to 70 Years.
• Minimum Annual Premium: Rs. 1,00,000
• Minimum Sum Assured: 5xAnnual Premium.

Premium Collected is invested in the Equity & Debt
Market according to the preset Asset Allocation of the
Platinum Plus Fund I.

Benefits:
1. Guaranteed Maturity Unit Price
• Minimum of Rs. 10 on the first Reset Date
• At maturity, is the highest Unit Price recorded on 88
Reset Dates
2. Maturity Benefits
• Number of units multiplied by higher of Guaranteed
Maturity Unit Price or prevailing Unit Price at
maturity
3. Surrender Benefits
• Full liquidity after 3 policy years –100% Fund
Value*

4. Death Benefits
• Higher of Fund Value (as per the then
prevailing unit price) or Sum Assured (less
applicable partial withdrawals)
5. Tax Benefits

42


• U/S 80C- Premium up to Rs.100000 is
allowed as deduction from taxable income
each year.
• U/S 10(10D) - Benefits from the plan are
exempted from tax.
Charges:
1. Premium Allocation Charges: 10% of
premium in the first year and 4% of
premium in subsequent years.
2. Fund Management Charges: 1.00%-1.50%

p.a. for Assure & 1.50%-2.00% p.a. for
Platinum Plus Fund I.
3. Policy Administration Charges: These
charges are deducted monthly by canceling
units from the investment fund Assure first
and then, from Platinum Plus I, if required.
The annual charge is Rs. 720 on the first
1000 Sum Assured in all years plus Rs.6 per
1000 Sum Assured in years 1 to 3 only.
4. Mortality Charges: Charges are deducted

monthly by canceling units from the
associated investment funds. The Annual
Charges for sample ages are as follows:

Attained
25 35 45 55 65
Age

43


1.02 1.16 2.38 6.44
Female 15.920
3 2 5 1
1.08 1.36 3.11 8.57
Male 21.060
3 3 0 1

5. Surrender Charges: This charge, as a
percentage of the annual premium at issue,
is 16%, 13% and 10% for policy year 1, 2
and 3 respectively.

6. Revival Charge: The charge for policy

revival is Rs. 100-1000 per revival

FUNDS BY BSLI

Birla Sun Life Insurance, a leading Life Insurance
company, offers its clients with a long range of Funds.
These funds are designed to cater to a variety of needs of
people who are from different life stages. BSLI offers a
broad range of 12 funds, each having differing asset
allocations.

12 funds offered are:
1. Individual Protector
2. Individual Assure
3. Individual Balancer

44


4. Individual Builder
5. Individual Creator
6. Individual Enhancer
7. Individual Life Maximiser
8. Individual Magnifier
9. Individual Multiplier
10. Pension Nourish
11. Pension Enrich
12. Pension Growth

A new fund named Platinum Plus Fund I is also added in
this list of funds.

Asset Allocation is decided by the Fund Managers of the
company. These fund managers continuously tracks the
movements of volatile market and combine this volatility
with the fund requirements of the policyholders.
Accordingly he decides allocation of assets in 5 major
investment options:
 Government Securities
 Corporate Debt
 Securitized Debt
 Equity
 Money Market Instruments

Proportion of allocating the fund in these options, vary
according to the needs and fund requirements of
policyholders. The most important thing to be noticed here
is that this portfolio is decided, based on the regulations of
IRDA. Performances of these funds are rated by the rating
agency-CRISIL.

45


All the 12 funds by BSLI are described below along with
their respective Asset Allocations.

Individual Assure

Objective: The primary objective of this fund is to provide
Capital Protection, at a high level of safety and liquidity
through judicious investments in high quality short-term
debt.

Strategy: Generate better return with low level of risk
through investment into fixed interest securities having
short-term maturity profile.

Asset Allocation:

SECURITIES HOLDING

Corporate Debt 59.57%

Money Market Instruments 17.97%

TOTAL 100.00%

46


HOLDING

59.57% Corporate Debt

Money Market
Instruments
100.00%
TOTAL

17.97%

Individual Balancer

Objective: The objective of this fund is to achieve value
creation of the policyholder at an average risk level over
medium to long-term period.

Strategy: The strategy is to invest predominantly in debt
securities with an additional exposure to equity,
maintaining medium term duration profile of the portfolio.

Asset Allocation:

SECURITIES HOLDINGS
Government Securities 10.67%
Equity 23.44%

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TOTAL 100.00%

HOLDINGS

10.67%
26.85%
Government Securities
Corporate Debt
Equity
39.04% Money Market Instruments
23.44%

Pension Growth

Objective: This fund option is designed to build the capital
and to generate better returns at moderate level of risk, over
a medium or long-term period through a balance of
investment in equity and debt.

Strategy: Generate better return with moderate level of risk
through active management of fixed income portfolio and
focus on creating long term equity portfolio which will
enhance yield of composite portfolio with low level of risk
appetite.

Asset Allocation:

SECURITIES HOLDINGS

48


Equity 18.63%
TOTAL 100.00%

HOLDINGS

22.06% 13.90%
Corporate Debt
Equity
45.41%

Pension Enrich

Objective: Helps to grow the capital through enhanced
returns over a medium to long-term period through
investments in equity and debt instruments, thereby
providing a good balance between risk and return.
Strategy: To earn capital appreciation by maintaining
diversified equity portfolio and seek to earn regular return
on fixed income portfolio by active management resulting
in wealth creation for policyholders.
Asset Allocation:

49


SECURITIES HOLDINGS
Equity 32.69%

TOTAL 100.00%

HOLDINGS

13.57% 14.35%
Corporate Debt
Equity
39.40%

CONCLUSION

Our training was a very enriching experience for us, we
have learnt so many things, and we got insight into the
insurance world. Insurance sector today playing a major

50


role in everyone’s life lot more than ever before life
currently there is a comprehensive range of products
covering each type of policy available in the market. We
have studied various insurance plans covered under BSLI,
and their features. BSLI also gives various Riders, which
provides extra benefits to the customers. And we came to
know about the pioneering features of BSLI, like sales
procedure, SIP, etc.

While most insurance plans block money for certain period
of time, a BSLI plan gives the double benefit of life
insurance along with easy liquidity through lump sum
cash.

Birla Sun Life Insurance (BSLI), one of the largest private
life insurers, is gearing itself to take advantage of the vast
rural opportunity that has opened up as a result of the
revised definition of rural areas by the IRDA. Over the last
four years, BSLI has painstakingly built its rural
infrastructure to create a cost-effective distribution
network across the country.

Our training gave us corporate exposure, and helped in
improving our communication skills. We learnt to deal
with customers, we made them aware about various plans,
and their respective features, even helped them to select
the best plan as per their requirements.

51


RECOMMENDATIONS

1. Competition from public sector and foreign banks remains a
key challenge for private sector banks. They need to reorient
their staff and effectively utilize technology platforms to retain
customers.
2. They have to update their portfolio timely.
3. Birla Sun Life Insurance Ltd should have proper division of
departments under heads.
4. Birla Sun Life Insurance Ltd should have more pension plans.
5. Birla Sun Life Insurance Ltd should have more children plans,
and more help line plans
6. They should provide more information to the customer so that
they become more aware about insurance

BIBLIOGRAPHY

1. www.birlasunlife.com Dated 13/6/08 Time 3:30

2. www.Paisawaisa.com/LifeInsurance Dated 13/6/08 Time 4:00

3. Company brochure

4. Company brochure/ GOLD- PLUSII PLAN/ Ver 01/12/07

52


5. Company brochure/ Classic Life Premier/ Ver 8/9/07

53


ANNEXURE

1. Do you make investments?
A.Yes
B.No

2. How much you earn annually?
A. Below 50,000
B. 50,000-100,000
C.100, 000-1, 50,000
D. Above 150000

3. Do you know about insurance?
A. Yes
B. No

4. Do you know about BSLI?
A. Yes
B.No

54


5. How did you came to know about it?
A Newspapers
B. Online
C. Personal Reference
D. Other

6. What assets do you own?
A. Personal house
B.Car
C.Credit card

7. Where would you like to invest?
A. Mutual Fund
B.Stocks
C.Real estate
D.Insurance

55


8. What would u like to insure?
A. Vehicle
B.Life insurance

9. Which insurance plan of BSLI are
you interested in?

A.Saral Jeevan
B.Gold Plus II
C.Platinum Plus
D.Classic Life Premier

10. How do you rate our plans?

A. Average
B. Good

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C. Excellent

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Birla sun life insurance

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