Summer Training Project ppts

Comparative Study of Traditional and ULIP Plans offered by Life Insurance Companies in Ludhiana

Under the Guidance of:- Ms. Deepika AroraFaculty Member, PCTE , Ludhiana

Presented By :-Vishal KatochMBA 2A

Insurance

What is Insurance?

How it Works?History of Insurance

Classification of Insurance

Life Insurance Companies In India

Life insurance Companies in India

1. Bajaj Allianz Life Insurance Co. Ltd. 12.Shriram Life Insurance Co. Ltd.

2. Birla Insurance Co. Ltd. 13.Star Union Dai-ichi Life.

3. HDFC Standard Life Insurance Co. Ltd. 14.India First Life Insurance Co. Ltd.

4.ICICI Prudential Life Insurance Co. Ltd. 15.DLF Pramerica Life Insurance Co. Ltd.

5.Life Insurance Corporation of India. 16.Canara HSBC Oriental Bank of Commerce Life Insurance Co. Ltd.

6.Reliance Life Insurance Co. Ltd. 17.IDBI Fortis Life Insurance Co. Ltd.

7.Sahara India Life Insurance Co. Ltd. 18.Future Generali India Life Insurance Co. Ltd.

8.Tata AIG Life Insurance Co. Ltd. 19.Bharti AXA Life Insurance Co. Ltd.

9.Max New York Life Insurance Co. Ltd. 20.Kotak Mahindra Old Mutual Life Insurance Ltd.

10.AEGON Religare Life Insurance Co. Ltd. 21.Met Life India Insurance Co. Ltd.

11.ING Vysya Life Insurance Co. Ltd. 22.Aviva Life Insurance Co. India Ltd. & 23. SBI Life Insurance Co. Ltd

Market Share of Different Life Insurance Companies

64.00%8.93%

7.36%

2.96%2.88%

2.11%3.00%

1.19%2.00%5.57%

LIC

ICICI

Bajaj Allianz

Reliance

HDFC Std

BirlaSunlife

SBI

Kotak

MaxNewYork

Others

General Insurance Companies In India

General Insurance Companies in India

1. Bajaj Allianz General Insurance Co. Ltd. 12. HDFC ERGO General Insurance Co. Ltd.

2. ICICI Lombard General Insurance Co. Ltd. 13. Export Credit Guarantee of India Ltd.

3. IFFCO Tokyo General Insurance Co. Ltd. 14. Agriculture Insurance Co. of India Ltd.

4. National Insurance Co. Ltd. 15. Star Health and Allied Insurance Co. Ltd.

5. New India Assurance Co. Ltd. 16. Apollo Munich Health Insurance Co. Ltd.

6. The Oriental Insurance Co. Ltd. 17. Future Generali India Insurance Co. Ltd.

7. Reliance General Insurance Co. Ltd. 18. Universal Sompo General Insurance Co. Ltd.

8. Royal Sundaram Alliance Insurance Co. Ltd. 19. Shriram General Insurance Co. Ltd.

9. Tata AIG General Insurance Co. Ltd. 20. Bharti AXA General Insurance Co. Ltd.

10. United India Insurance Co. Ltd. 21. Raheja QBE General Insurance Co. Ltd.

11. Cholamandalam M S General Insurance Co. Ltd.

22. SBI General Insurance Co. Ltd.& 23.Max Bupa Health Insurance Co. Ltd.

Market Share of Different General Insurance Companies

20.07%

12.31%

15.99%14.79%

14.27%

22.57%New India

ICICI

Oriental

National

United India

Others

The Right Organization to Partner With

Historical Background of the Company

Money Matter Inc. was started by Mr. Prem Pal Sharma in 2002 in Rajasthan. In Rajasthan they work under the name of Money Matter Wealth Advisors Pvt. Ltd. It has its head office in Delhi. It has six branches in Rajasthan. In Punjab, Money Matter Inc. start their services in 5th September 2008. Right now they have four branches in Punjab. For Punjab Region they have their head office in Mohali .

Quick Facts

Incorporated on 5th September 2008. Presence in Punjab and Rajasthan. 6 offices with 60 professionals and 100 Business associates.

Our Locations: Mohali (Punjab) Sri Ganganagar (Rajasthan) AnupGarh (Rajasthan) Suratgarh (Rajasthan) Ramsinghpur (Rajasthan) Ludhiana (Punjab)

Upcoming Branches: Jalandhar (Punjab) NawanShahar (Punjab) Amritsar (Punjab) Panchkula (Haryana)

We create value through focus & discipline…

Vision Enabling Success, Enriching Lives, Spread Smiles

Mission

To create superior value in financial sectors.

• Growth• Acquire and Transform• Improve

Pillars

Values

Right PeopleOrganizational

AlignmentExecution Discipline

Processes

Caring ; Honesty ; Passion ; Team Work ; Disciplined Professionalism

Right PeopleOrganizational

AlignmentExecution Discipline

Processes

Money Matter Inc.

Differentiators

Opportunity in India

Customer Needs

Business Model

Career & Growth Prospects

Money Matter Inc. - Key Value Differentiation

Great Leadership

–Passionate, Balanced, Disciplined

Customer-centric Business

–Relationship and Product Positioning

Want to be a Leader in having Number of customer & Mass Self-employed segments

India - A Key Market for Money Matter Inc.

•Provides MMI with access to one of the most rapidly growing economies.

•Large under and un-served segments.

•Availability of talent, lower cost technology, and steadily improving infrastructure.

•Foreign Direct Investment inflows expected to double.

• Increasing levels of foreign trade.

•Growing global integration.

Not a Product Program, . . . instead a Customer Program

1. Understand financial needs and key expectations.

2. Evaluating the customer as a whole, not just for a product.

3. Product features are designed for the specific segment.

Focus on Customer, Not Product . . .

Business Model

Career Progression & Future Opportunities

Director

Regional Manager

Zonal Manager

Sr. Manager

Relationship Manager

Asst Relationship Manager

Sr. Relationship Officer/ Relationship Officer

Management Team

Mr. Prem Pal Sharma

(Chief Operating Officer)

Mr. Gaurav Sharma

(Strategic Unit Head)

Ms. Shallu(Head of Administration

& Finance-Strategic Unit)

Mr. Santosh KumarDubey

(Head Sales-Strategic Unit)

Introduction to Particular Branch

“Money Matter Inc. wants to be the Preferred Partner for all Financial Needs of the Customer”

Objective

Products

This is basically a wealth Management unit deals in all the almost all investment option present in market. They give there services in

Insurance Demat Account Mutual Funds Bonds Share Debenture Corporate FDs & Corporate Loan. Gold

The Companies associated with Branch

In Life Insurance In General Insurance

1) Tata AIG 1) Tata AIG General Insurance

2) Kotak Life Insurance 2) Reliance General Insurance

3) Aviva Life Insurance 3) Bajaj Allianz General Insurance

4) ICICI Prudential 4) Royal Sundram

5) LIC 5) United

6) Bajaj Allianz 6) National

7) Birla Sun Life 7) Oriental

7) HD FC Standard Life 8) New India

8) SBI Life 9) Iffco Tokyo

9) Reliance Life 10) Star Health

10) Star Health

Organization Chart of Training Unit

Branch Manager

•Mr. Bikramjeet Singh

Assistant Relationship

Manager

•Mr. Veer Davinder Singh• Mr. Yashpal Sharma

Departments

To improve sales strategies.

To make the people aware about the new products.

To give the best possible services.

To provide best working environment.

To handle the grievances of the employees.

To retain the employees.

There are two departments in Money matter Inc.1) Sales 2) Human ResourceHOD- Mr. Bikramjeet Singh HOD- Ms. Navjeet KaurObjectives of Sales Department:- Objectives of HR Department:-

1

2

3

5 Year Goal

Achieve market share of 5% (top own-branch players) within target segment

Serve a satisfied customer base of ~2 million customers

Be the best employer in financial services industry in India, attracting diverse talent due to its unique business model and wide product range

SWOT Analysis of Money Matter Inc.

Strengths1. Product range2 Experience and youth staff

Weaknesses1. Infrastructure 2. Inadequate promotion strategies.3. Low retention rate.

Opportunities1. Growing awareness2. Untapped market

SWOT Analysis of Money Matter Inc.

Role of the Advisor

Works with you to discover your personal financial objectives.

Assesses your entire financial situation. Designs a customized investment plan . Screens the industry. Works with those providers to implement your

customized investment plan. Monitors the providers and replaces . Provides education and guidance . Celebrates with you when things go well.

Traditional Plan

Features:-

1) Death benefit and Maturity benefit.

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.

4) Generally withdrawals are not allowed before maturity.

5) Cash flows in Life Insurance.

6) Mortality table.

7) Discount rates.

8) Term insurance.

ULIPs

Feature:-

1. Insurance + Investment.

2. Portfolio investment.

3. Riders benefit.

4. Transparency

5. Higher liquidity

6. Gains depend upon market moments.

7. Potential for better returns.

Structure Of ULIPs

1. Premium Allocation Charges.

2. Administration Charge.

3 .Mortality Charges.

4. Fund Management Charge.

5. Rider Premium Charge.

6. Partial Withdraw Charge.

7.Miscellaneous charge.

8. Switching Charge.

9.Surrender Charge

Diagrammatical Presentation of Premium Break of ULIPs

General Description Nature of Investments Risk Category

Equity Funds Primarily invested in company stocks with the general aim of capital appreciation

Medium to High

Income, Fixed Interest and Bond Funds

Invested in corporate bonds, govt. sec

Medium

Cash Funds Sometimes known as Money Market Funds - invested in cash, bank deposits and money market instruments Low

Low

Balanced Funds Combining equity investment with fixed interest instruments

Medium

Different Type Of Funds In ULIPs

S. No. Feature ULIPs Traditional Plan

1 Premium Invested by Policy Holder. Invested by Insurer’s.

2 Return Depends Upon Market moments

Fixed

3 Loans Not Provided Provided

4 Bonus No bonuses, except loyalty addition in some cases.

Bonuses are payable

5 Loss Likely Unlikely

6 Benefits Variable Pre- Determined

7 Gains Gains likely depending on market movements

Gains unlikely except through bonuses

8 Potential for better returns 100% investment in Debt or Equity acc. to wish.

At least 85% investment in debt which result low return

9 Greater transparency Here we know were over money is invested.

Not known where money is to be invested.

10 Flexibility in investment Flexibility provided to customer.

No Flexibility provided to customer.

11 Flexibility in insurance coverage

Option to choose coverage & to increase risk cover

No option to choose coverage

12 Higher Liquidity Exit option available. No exit option

Companies Under Study

History of Companies

LIC( 1956 )

Tata AIG Life Insurance Company Limited (2001)

Bajaj Allianz Life Insurance ( 2001)

History Of Companies

Traditional Plans And Their Features

LICJeevan Anand

BAJAJ ALLIANZLife Time Care

BIRLA SUN LIFEDream Endowment Plan

TATA AIGMaha Life Gold

Traditional Plans

Features Of LIC – JEEVAN SARAL

This plan is a combination of Endowment Assurance and Whole Life

plans.

Features:- 1.Premium

2.Bonus

Benefits1.Benefits in case of death during the selected term.

2.Benefits in case of survival to the end of selected term

3.Accident Benefit

4.Extra Benefits

5.Surrender Value

Features Of BAJAJ ALLIANZ – LIFE TIME CARE

This plan not only provides insurance protection, but also ensures that your valuable savings grow .In addition, a terminal bonus may be paid on survival till the age 80 years.

Benefit1. Death Benefit .

2. Survival Benefit.

3. Additional Benefits

a) Accidental Death Benefit.

b) Accidental Permanent Total/Partial Disability Benefit.

c) Waiver of Premium Benefit.

d) Critical Illness Benefit.

e) Hospital Cash Benefit.

5. Flexibility in Coverage.

6. Increase in risk Coverage.

7. Premium Discount.

8. Advantage for Women.

9.Surrender.

10. Loans.

Features Of Birla Sun Life – Dream Endowment Plan

Entry Age 30 days to 65 years

Policy Term 30 years

Pay Term Single pay | Short pay - 5, 10, 15, 20 years

Basic Sum Assured Minimum Rs. 2,00,000 , subject to minimum

Basic Premium Rs. 8,000

Enhanced Sum Assured Minimum Rs. 50,000Entry Age: 18 to 65 years, max age- 75 years

Enhanced Savings Premium Minimum Rs. 5,000

1.Guaranteed Additions

2.Death Benefit

3.Surrender Benefit

4.Maturity Benefit

Your Enhanced Choices

1. Enhanced Sum Assured

2. Enhanced Savings Premium

Benefit

Features of TATA AIG – Maha Gold

It provides a steady income and insurance coverage for life. This unique policy is an ideal planning vehicle to fund your retirement. payable only for the first 15 years, and can be used to cover the future expenses of your children

Key Features Include: Guaranteed annual coupon of 5% . Yearly cash dividends are available Entire sum assured is paid tax-free .

Tax Benefits, Riders and Age Eligibility Guaranteed 5% coupon and non-guaranteed cash dividends are tax free . Tax Benefit Riders are available . Policy available for persons between 0 years and 60 years of age.

LIC

Jeevan Anand

Combination of Endowment Assurance and Whole Life plans

There are two bonuses in this plan.

1) Simple Reversionary Bonuses

2) Terminal Bonuses

Loan Provided.

An additional Sum Assured is payable on death thereafter

BAJAJ ALLIANZ

Life Time Care

Special Discount Premium for women’s.

Five additional benefit

1) Accidental Death Benefit

2) Waiver of Premium Benefit

3) Critical Illness Benefit

4) Accidental Permanent

5) Hospital Cash Benefit

Increase in Risk Cover

Premium Discount offer for all policies

BIRLA SUNLIFE

Dream Endowment Plan

• Guaranteed bonus 3%.

Free Partial Withdrawal after 3 years.

Facility of Top-up available

Enhanced sum assured

TATA-AIG Maha Gold

• Riders available•Guaranteed annual coupon of 5% after 9th year.•Entire sum assured is tax free.•For juveniles, only wavier Benefit Rider is available.

ULIPs Plan

LICMarket Plus

BAJAJ ALLIANZCentury Plus

BIRLA SUN LIFEPlatinum Plus

TATA AIG Invest Assure Gold Plus

UNIT LINKED INSURANCE PLAN

Features And Benefit of LIC – Market Plus

This is a unit linked pension plan. You can take the plan with or without life cover.

Features:-1. Top Up.

2. Switching.

3. Increase or Decrease risk cover.

4. Partial Withdraw.

5. Discontinuous of Premiums and Revival.

6. Revival.

7. Assignment.

8. Exclusions.

Features And Benefit of BAJAJ ALLIANZ – Century Plus

Bajaj Allianz Century Plus III offers you a unique combination of protection and prospect of attractive returns.

Features:-1. Death benefit.

2. Maturity benefit.

3. Surrender benefit.

4. Premium apportionment.

5. Flexibility to manage your investments.

6. Flexibility - to pay top up premiums.

7.Flexibility to decrease annualized premium.

8. Partial withdrawal option.

Feature And Benefit of BIRLA- Platinum Plus

Self-Managed Option gives you complete access to our range of investment funds with the freedom to switch between them, free of cost.

Features:-

1. Loyalty Additions

2. Partial Withdrawals

3. Surrender Benefits

4. Maturity Benefits

5. Death Benefit

Features And Benefit of TATA-AIG Invest Assure Gold Plus

Invest Assure Gold Plus is Whole-life ULIP.

Features:- 1. Loyalty Additions of 0.50% units .

2. Flexibility of seven Fund Options to choose from .

3. Enables you to enjoy market linked results with a potential for higher growth.

4. Riders are available .

Comparison Of ULIPs Of Four Companies

Features Century Plus Market Plus Investment Assure Gold

Platinum Plus

Min entry age 8 yrs 18 yrs 0 yrs ( 30 days ) 8 yrs

Max entry age 60 yrs 70 yrs 70 yrs 70 yrs

Max Maturity age

70 yrs 75 yrs 100 yrs 80 yrs

Min premium Rs.25000p.a Rs.5000 p.a. Rs.50,000 p.a. Rs. 25000p.a.

No of funds 7 4 7 10

Riders ADBR ADBR ADB , ADDR , CIR

0

Min premium payment term

3 yrs 5 yrs 5 yrs 3 yrs

Research Methodology

Title

Comparative Study of Traditional and ULIP Plans offered by Life Insurance

Companies in Ludhiana

Objectives

To study which plans investors prefer and reasons for their preference.

To analyze the role of advisor in Traditional and ULIP’s.

Research Methodology

Introduction:

Research is an academic activity and as such the term should be used in technical sense.

RESEARCH DESIGN:

Descriptive research design is used for collecting primary data.

SAMPLING

SAMPLING DESIGN

SAMPLING TECHNIQUE

Convenient Sampling technique. UNIVERSE

All the respondents who are investing in the Traditional or ULIP plans.

POPULATION

All the respondents of LIC, Birla Sunlife, Bajaj Allianz and Tata AIG who are investing in the Traditional or ULIP plans in Ludhiana city.

SAMPLING SIZE – 104 Respondents.

Method Of Data Collection

PRIMARY DATA

METHOD OF PRIMARY DATA COLLECTION

The method followed in obtaining the primary data was through the structured questionnaire.

SECONDARY DATA

METHOD OF SECONDARY DATA COLLECTION:

Journals and Magazines Internet

Limitation Of The Study

1. Data collection error .

2. Respondents can hide the real information.

3. Time.

4. Sample size cannot always represent the whole population.

5. Balance sheet not provided.

Data Analysis

Plans No. of Respondents

Percentage

Traditional 5250%

ULIPs 52 50%

Total 104100%

Analysis:- There are equal no. of respondents for both traditional and ULIP Plans i.e. 50% for each.

Table 4.1 Number of Respondents ( N=104)

Companies Number Of Respondents

Percentage

LIC 13 25%

Bajaj Allianz 13 25%

Birla SunLife 13 25%

Tata-AIG 13 25%

Total 52 100%

Analysis:-ULIPs respondents are also further divided into 4 categories. Each category consists of customers of four different companies. The companies are:- LIC, Bajaj Allianz, Birla Sunlife, and Tata AIG.

Table 4.2 Name of companies for ULIPs (N=52)

Companies No of respondents Percentage

Public limited company 26 25%

Private (in collaboration with foreign companies).

78 75%

Total 104 100%

Analysis:- 25% are from Public limited company and 75% are from Private ( in collaboration with foreign companies). This has been done intentionally so that equal no. of respondents can be chosen for all the four companies under study.

Table 4.3 Company Preference N=104)

Particulars No of Responses PercentageTo assess your entire financial situation

19 17%

To explain you about the product

34 31%

To help you to achieve your financial objectives

53 49

Any Other 3 2%Total 109 100%

Analysis:- According to 49% respondents the role of advisor is to help them in achieving the financial objectives, 31% consider his role to explain about the product, 17% consider him to assess their entire financial situation.

Interpretation:-People are of different view regarding the advisor’s role. They are not clear with the actual role of the advisor whose role comprises of all the above parameters.

Table 4.4 Role of an Advisor (N=104)

Particular Number Of Respondents

Percentage

Yes 68 65%

No 36 35%

Total 104 100%

Analysis:- From the above table, it is evident that advisor had changed the preference of 65% respondents while 35% feel advisor does are.

Interpretation:-The advisor advises the investors and they do follow their advice.

Table 4.5 Advisor had changed your preference for investment

Particular Number of Respondents

Percentage

Male 6 46%

Female 7 54%

Total 13 100%

Analysis:- From the above table, it is evident that 46% respondents are males and 54% are females.

Table 4.6 Gender

Analysis of LIC

Particulars Number Of Respondents

Percentage

Government service 2 15%

Private Service 7 54%

Business 2 15%

Student 1 8%

Other 1 8%

Total 13 100%

Analysis:- As the above table illustrates, 54% respondents are doing private service, 15% each are doing government jobs and business and 8% each are for student and other.

Table 4.7 Occupation

Particulars Number of Respondents

Percentage

Once a year 10 77%

2-3 times a year 3 23%

More than 3 times a year

0 0%

Not investing 00%

Total 13 100%

Analysis:- According to above table 77% respondents are investing once a year in insurance plan and 23% are investing 2-3times a year.

Interpretation:-The policyholders are paying the premium annually and semi annually.

Table 4.9 No. of times investment is done

Particulars Number Of Responses

Percentage

Tax Saving 8 62%

Good returns 3 23%

Better future after retirement

2 15%

Wealth creation 0 0%

Any other 0 0%

Total 13 100%

Analysis:- According to above table, 62% respondents are investing in insurance just for tax saving , 23% for return and 15% for better future.

Interpretation:- The main purpose for investment is to have the tax benefit.

Table 4.10 Your opinion about investment


Percentage

Less than 5% 1 8%

6% - 15 % 10 77%

16% - 25 % 2 15%

26% - 35 % 0 0%

Total 13 100%

Analysis:- As the above table depicts, 77% respondents want their return to fall in the category 6-15%, 15% want return higher than 15 % and 8% expect less than 5%.

Interpretation:-LIC policyholders are expecting moderate returns from their plans.

Table 4.13 Returns you would look at from your investments

Benefits Yes Percentage

No Percentage

Riders 12 92% 1 8%No Claim Bonus

6 46% 7 54%

Guaranteed Addition

10 77% 3 23%

Medical Test Expense

5 38% 8 62%

Analysis :- As the above table depicts, •The plans of 92% respondents are giving them the benefit of Riders.•54 % respondents are enjoying the benefit of No Claim Bonus.•The plans of 77% respondents are giving them guaranteed addition.•38% respondents had not paid for their medical test expense. Interpretation:- Most of the plans of LIC are giving the benefits of riders, no claim bonus and guaranteed addition to its investors.

Table 4.13 Benefits as per the traditional plan


Percentage

High 1 8%

Moderate 9 69%

Low 2 15%

No Risk 1 8%

Total 13 100%

Analysis:- According above table, 69% respondents are of the view that risk attached with their plan is moderate, 15% respondents are of the view that risk attached is low, 8% think that risk attached is high.

Interpretation:- According to LIC policyholders the risk attached with the traditional plan is moderate. The risk attached with traditional plans is less but still investors are feeling that the risk in traditional plans falls in the moderate category.

Table 4.14 Risk attached with Traditional Plans


Percentage

3 to 8 years 9 69%

9 to 14 years 4 31%

15 to 20 years 0 0%

20 years and above 0 0%

Total 13 100%

Analysis:- According to the above table, 69% respondents are of the view that the ideal policy term is 3-8 years 31% feels 9-14 years.

Interpretation:- Majority of policyholders are ready for long term of their plans.

Table 4.15An ideal policy term

Features Mean

Return on Investment 1.69

Policy Features 1.15Length of Investment 0.92

Post Sales Services

support

1.38

Not Required Less Required Neutral Essential Very essential

-2 -1 0 1 2

Analysis: From the above, it can be observed that•Return on investment is very essential for majority of policyholders.•Policy features , Length of investment & Post sale services are essential are essential for majority of policyholders.

Interpretation:-Returns, policy features, tenure of investment and post sales services all are seen before going for any of the traditional plan.

Table 4.17 Preference regarding the features

Services MeanPremium Collection Procedure

1

Providing latest information

0.692

Claim Settlement Procedure

0.692

Grievance Handling Time

0.692

Highly

Dissatisfied

Dissatisfied Neutral Satisfied Highly Satisfied

-2 -1 0 1 2

Interpretation: From the above, it can be observed that•Regarding the company satisfaction on the basis of above mentioned factors the respondents are satisfied.So policyholders are satisfied from the services of LIC

Table 4.18 Satisfaction from the company


Percentage

Male 10 77%

Female 3 23%

Total 13100%

Analysis:- From the above table, it is evident that out of 77% respondents are male 23% are female.

Table 4.19 Gender


Percentage

Government service

1 8%

Private Service 11 85%Business 0 0%Student 0 0%Other 1 8 %Total 13 100%

Analysis:- As the above table illustrates,85% respondents are doing private service, 8% government, and 8% and one for other.



Percentage

Once a year 8 61%

2-3 times a year 4 31%

More than 3 times a year

1 8%

Not investing 0 0%

Total 13 100%

Analysis:-According to above table, 61% respondents are investing once a year in insurance plan and 3% are investing 2-3times a year.

Interpretation:- Majority of respondents are paying premium annually .



Percentage

Tax Saving 7 33%Good returns 7 33%Better future after retirement

3 14%

Wealth creation 4 20%Any other 0 0%Total 21 100%

Analysis:- According to above table, 33% responses are investing in insurance just for tax saving , 33% for returns and 14% for better future. Interpretation:- Majority of policyholders are going with investment plans for tax saving purpose.



Percentage

Less than 5%

1 8%

6% - 15 % 6 46%16% - 25 %

5 38%

26% - 35 % 1 8%Total 13 100%

Analysis:-As the above table depicts, 46% respondents want their return to fall in the category 6-15%, 38% want return higher than 15 % and 8% want less than 5%.

Interpretation:- Policyholders are expecting moderate returns from their plans.



No Percentage


7 54% 6 46%

Guaranteed Addition

11 85% 2 15%


8 62% 5 38%

Analysis:- As the above table depicts, •The plans of 100% respondents are giving them the benefit of Riders.•54% respondents enjoy the benefit of No Claim Bonus.•The plan of 85% respondents is giving them guaranteed addition.•62% respondents had not paid for their medical test expense.

Interpretation:- All the plans of Bajaj Allianz are providing the benefits of riders. Most of them are giving No Claim Bonus, guaranteed addition and medical test expenses.

Table 4.27 Benefits as per the traditional plan

Particulars No. of Respondents

Percentage

HIGH

2 15%

MODERATE 10 77%

LOW

0 0%

No Risk 1 8%

Total 13 100%Analysis:- According above table, 77% respondents are of the view that risk attached with their plans is moderate, 15% think that risk attached is high.

Interpretation:- According to Bajaj Allianz policyholders the risk attached with the traditional plan is moderate. The risk attached with traditional plans is less but still investors are feeling that the risk in traditional plans falls in the moderate category.


Particulars No. of Respondents

Percentage

3 to 8 years

2 15%

9 to 14 years 8 62%15 to 20 years

3 23%

20 years and above 0 0%Total 13 100%

Analysis:- According to the above table, 62% respondents are of the view that the ideal policy term is 9-14 years 23% of 15-20 years.

Interpretation:- So policyholders are ready for long term plans.

Table 4.29 An ideal policy term

Features Mean

Return on Investment 1.62

Policy Features 1.15Length of Investment 1.08

Post Sales Services support 1.30

Analysis: From the above, it can be observed that•Return on investment is very essential for majority of respondents.•Policy features , Return on investment & Post sales services are essential are essential for majority of respondents.

Interpretation:- The returns, policy features, length of investment and post sale services are considered during the purchase of plans.


Not required Less Required Neutral Essential Very essential

-2 -1 0 1 2


1.62


1.31


0.92

Grievance Handling Time 1

Highly

Dissatisfied

Dissatisfied Neutral Satisfied Highly

Satisfied-2 -1 0 1 2

Analysis: From the above, it can be observed that•Regarding the company satisfaction on the basis of Premium collection Procedure the respondents are highly satisfied and with rest of factor the respondents are satisfied.

Interpretation:- Policyholders are satisfied from the post sales services of the company.

Table4.31 Satisfaction from the company


Percentage

Male 12 92%Female 1 8%Total 13 100%

Analysis:- From the above table it is evident that 92% respondents are male and 8% are female.

Analysis for Tata- AIG

Table 4.32 Gender


Percentage

Once a year 8 62%2-3 times a year 2 15%More than 3 times a year

3 23%

Not investing 0 0%Total 13 100%

Analysis:- According to above table 62% respondents are investing once a year in insurance plans , 15% are investing 2-3times a year and 23% are investing in more than 3 times.

Interpretation:- Most of the investors are paying the premium annually but some are also paying quarterly or monthly.

Table4.35 No. of times investment is done


Percentage

Tax Saving 3 21%Good returns 5 36%Better future after retirement

2 14%

Wealth creation 4 29%Any other 0 0%Total 14 100%

Analysis:- According to above table, 21% responses are investing in insurance just for tax saving, 36% for returns , 29% for wealth creation and 14% for better future.

Interpretation:- The policyholders are taking these plans for different reasons.



Percentage

Less than 5%

2 16%

6% - 15 % 7 55%

16% - 25 %

4 29%

26% - 35 % 0 0%

Total 13 100%

Analysis:- As the above table depicts, 55% respondents want their return to fall in the category 6-15 %, 29% want return higher than 15 % and 16% are expected less than 5%.

Interpretation:- The policyholders want good returns.



No Percentage


3 23% 10 77%

Guaranteed Addition

11 85% 2 15%


5 38% 8 62%

Analysis:- As the above table depicts:•The plans of 92% respondents are giving them the benefit of Riders.•Only 15% respondents enjoy the benefit of No Claim Bonus.•The plan of 85% respondents is giving them guaranteed addition.•38% respondents had not paid for their medical test.

Interpretation:- Maximum plans are giving the benefits of riders and guaranteed addition but very less are giving no claim bonus and medical test expenses.

Table 4.40 Benefits as per the traditional plan.


Percentage

HIGH

1 8%

MODERATE 9 69%

LOW

3 23%

No Risk 0 0%

Total 13 100%

Analysis:- According above table, 69% respondents are of the view that risk attached with their plan is moderate, 23% respondents are of the view that risk attached is low, 8% think that risk attached is high.

Interpretation:- The risk attached with the traditional plan is moderate.



Percentage

3 to 8 years 3 23%9 to 14 years 6 46%15 to 20 years 4 31%20 years and above

0 0%

Total 13 100%

Analysis:- According to the above table, 46% respondents are of the view that the ideal policy term is 9-14 years,31% marked 15-20 years.

Interpretation:- So policyholders are ready to keep their policies for long term .


Features Mean

Return on Investment .43

Policy Features .48Length of Investment .32


Analysis: From the above, it can be observed that•Return on investment , Policy features & Length of investment are neutral for majority of respondents. •Post sale services are essential for majority of respondents.

Interpretation:- Post sale services are essential for the policyholders.


Not required Less

Required

Neutral Essential Very essential

-2 -1 0 1 2

Services MeanPremium Collection Procedure 1.17Providing latest information 0.92Claim Settlement Procedure 0.62Grievance Handling Time 0.46

Highly

Dissatisfied



Interpretation: From the above, it can be observed thatRegarding the company satisfaction on the basis of above mentioned factors the respondents are satisfied.

Table 4.44 Satisfaction from the company


Percentage

Male 10 77 %Female 3 23 %Total 13 100 %

Analysis:-From the table it is evident that 77 % are male 23 % are female.

Analysis for Birla Sun Life

Table 4.45Gender


Percentage

Government service

3 23 %

Private Service 7 54 %Business 2 15 %Student 1 8 %Other 0 0Total 13 100 %

Analysis:- As the table illustrates 54 % respondents are doing private service, 23 % government, 15 % for business, and 8 % are student .



Percentage

Once a year 9 70%2-3 times a year 2 15 %More than 3 times a year

2 15 %

Not investing 0 0Total 13 100 %

Analysis :- According to above table 70 % investors are paying premium once a year in insurance plan , 15 % are paying premium 2-3times a year and 15% are paying premium more than 3 times.

Interpretation:- Most of the policyholders are paying premium annually but still there are some investors who are paying premium quarterly or semi annually.



Percentage

Tax Saving

6 46 %

Good returns

2 15%


1 8 %

Wealth creation

4 31%

Any other 0 0Total 13 100 %

Analysis:- According to above table, 46% policyholders are having insurance just for tax saving , 15% for return,31% for wealth creation and 8% for better future. So majority of investors are going with investment plans for tax saving purpose.



Percentage

Less than 5%

3 23%

6% - 15 % 6 46 %16% - 25 %

3 23 %

26% - 35 % 1 8 %Total 13 100 %

Analysis:- As the above table depicts, 46% respondents want their return to fall in the category 6-15%, 31% want return higher than 15 % and 23% are expecting less than 5%.

Interpretation:-There are low returns in traditional plans.



No Percentage

Riders 13 100 % 0 0 %No Claim Bonus

4 31 % 9 69%

Guaranteed Addition

12 92% 1 8%


1 8 % 12 92 %

Analysis:- As the above table depicts, •The plans of 100% respondents are giving them the benefit of Riders.•31% respondents enjoy the benefit of No Claim Bonus.•The plan of 92% respondents are giving them guaranteed addition.•8% had not paid for their medical

Interpretation:-The traditional plans of Birla Sunlife are providing the benefits of riders and guaranteed addition but the benefits of no claim bonus and medical test expense are not being provided.

Table 4.53 Mark the following benefits as per your traditional plan

Particulars Number Of Respondents Percentage

HIGH

3 23 %

MODERATE 10 77 %LOW

0 0

No Risk 0 0Total 13 100 %

Analysis:- According above table, 77 % respondents are of the view that risk attached with their plan is moderate and 23% think that risk attached is high. So according to Birla Sunlife respondents the risk attached with the traditional plan is moderate.

Interpretation:-Risk is moderate in Birla Sunlife Traditional plan.



Percentage

3 to 8 years 3 23 %9 to 14 years 6 46 %15 to 20 years

4 31 %

20 years and above 0 0Total 13 100 %

Analysis:- According to the above table, 46 % policyholders are of the view that the ideal policy term is 9-14 years, 31 % are in the favor of 15-20 years and 23%.are with 3-8 years.

Interpretation:- So Policy holder are ready to purchase policy of long term .


Features Mean

Return on Investment 0

Policy Features -0.07Length of Investment 0.38


Analysis: From the table, it can be observed that•Return on investment ,Length of investment & Post sale services are neutral for majority of respondents.

Interpretation: The above features are not so much essential for the Birla Sunlife policy holders.

Table4.56. Preference regarding the features

Not required Less

Required


-2 -1 0 1 2

Services MeanPremium Collection Procedure 1.15

Providing latest information 0.69

Claim Settlement Procedure 0.54

Grievance Handling Time 0.31

Highly

Dissatisfied


Satisfied-2 -1 0 1 2 Interpretation: From the above, it can be observed that•Regarding the company satisfaction on the basis premium collection procedure and providing latest information the policyholders are satisfied.•For the claim settlement and grievance handling they are of the neutral view.

Table4.57.Satisfaction from the company


Percentage

Male 10 77%Female 3 23 %Total 13 100 %

Analysis:- From the above table it is evident that 77 % respondents are male 23 % are females.

Analysis of ULIPs of LIC

Table4.58 Gender


Percentage

Government service 0 0Private Service 12 92%Business 0 0Student 0 0Other 1 8 %Total 13 100 %

Analysis:- As the above table illustrates, 92 % investors are doing private service and 8 % for other.



Percentage


3 23. %


Analysis:- According to above table 46 % investors are investing once a year in insurance plan , 30 % are investing 2-3times a year and 23 % are investing in more than 3 times..

Interpretation:- Investors are paying premium annually, semi annually.

Table 4.61 No. of time investment is done

Particulars Number Of Responses Percentage Tax Saving

4 25%

Good returns

6 38 %


1 6 %

Wealth creation

5 31 %

Any other 0 0%Total 16 100 %Analysis:-

According to above table, 25 % responses for tax saving , 38 % for return 31 % for wealth creation and 6 % for better future

Interpretation:-Most of the investors are purchasing ULIPs for good returns and enhancing their money.



Percentage

A) Less than 5%

0 0

B) 6% - 15 % 3 23 %C) 16% - 25 % 9 69 %D) 26% - 35 % 1 8 %Total 13 100

Analysis:- As the above table depicts, 23% respondents want their return to fall in the category 6-15%, 69% want return higher than 15 % and 8 % are expecting more than26-35%.

Interpretation:-ULIP plans are providing high returns

Table4.65 Returns you would look at from your investments

Particulars Number Of Responses Percentage Child Education

3 17 %

Child Marriage 2 11 % Pension

2 11 %

Income Growth 6 33 %Tax Rebate

3 17 %

2 in 1 benefits 2 11 %Total 18 100 %

Analysis:- According to the above table, 33% respondents have purchased ULIPS for income growth, 17% each for tax rebate,17% child education and 11% for child marriage.

Interpretation:-ULIPs are providing high returns thats why people are purchasing them for income growth.

Table 4.66 Reasons for investment in the ULIP


Percentage

Up to 5 yrs

1 8%

Between 5-10 yrs 6 46 %10 - 15 yrs

4 31 %

Over 15 yrs 2 15 %Total 13 100 %

Analysis:- According to the above table, the time horizon for 46% respondents falls between 5-10 years, 31% respondents fall between10-15years,15% for more than 15 years.

Interpretation:-People are ready for the long term investment in ULIPs

Table 4.67 Time horizon when investing in ULIP


Percentage

Low Risk, Low Gain

1 8 %

Moderate Risk, Moderate Gain

4 31 %

High Risk, High Gain

8 61 %


Analysis:- According to the above table, 61% investors are preferring high risk for high returns, 31% for moderate risk moderate return.

Interpretation:-The risk appetite of people is high so they are mainly investing in Equity funds.

Table 4.68 Preference while investing in ULIPs

Factors Mean

Return on Investment 1.6Policy Features 1.3Investment Risk 1.2Length of Investment 0.8Tax Savings 1.4Brand Equity of the company 1.4Financial Health (Company) 1.3Core competency of the company in that Sector 0.9

Influence of Relatives/Friends in investment decision making 0.2

Post Sales Services support 0.8Interpersonal Skills (Sales Staff) 1.1Comparison with other Financial products(eg.Mutual Funds) 0.9

Table4.69 Features preferred during purchase of ULIP.

Not required Less

Required


-2 -1 0 1 2

Services MeanPremium Collection Procedure 1

Providing latest information 0.7

Claim Settlement Procedure 0.5

Grievance Handling Time 0

Analysis:- According to above chart the investors are satisfied by the above mentioned services of the company.

Interpretation:- The services of the company are good so people are satisfied from the it.

Table 4.70 Satisfaction from company


Percentage


Analysis:- From the above table it is evident that 54% respondents are male and 46% are female .

Analysis of ULIPs of Bajaj Allianz

Table 4.71 Gender


Percentage

Government service 0 0Private Service 11 84 %Business 1 8 %Student 0 0Other 1 8 %Total 13 100 %

Analysis:- As the above table illustrates 84% investors are doing private service, 8% business.



Percentage

Once a year 9 70 %2-3 times a year 2 15 %More than 3 times a year

2 15 %


Analysis:- According to above table depicts 70% investors are investing once a year in insurance plan , 15% are investing 2-3times a year and 15% are investing in more than 3 times.

Interpretation:- The investors are paying premium annually, semi annually and quarterly



Percentage

Tax Saving

1 7 %

Good returns

5 36 %


2 14 %

Wealth creation

6 43 %

Any other 0 0Total 14 100 %Analysis:-

According to above table, 7% responses are for tax saving , 36% for return, 43% for wealth creation and 14% for better future.

Interpretation:-The ULIPs are giving good returns to the investors.



Percentage

Less than 5%

0 0

6% - 15 % 6 46% 16% - 25 %

6 46 %

26% - 35 % 1 8 %Total 13 100 %

Analysis:- As the above table depicts ,46.15% respondents want their return to fall in the category6-15%, 46.15% want return higher than 15% and 7.69% want between 26%-35%.

Interpretation:-The investors want good returns.



Percentage

Child Education

1 7%

Child Marriage 0 0 Pension

0 0


1 7%


Analysis:- According to the above table, 60% responses are for income growth, 7% each for tax rebate and 26% for 2 in 1 benefits.

Interpretation:-ULIPs provide high returns that is why people have purchased them for high returns,

Table4.79Reason for investment in the ULIP


Percentage

Up to 5 yrs

1 8%

Between 5-10 yrs 8 62 % Between 5-10 yrs 4 30 % Over 15 yrs 0 0Total 13 100 %

Analysis:- According to the above table, the time horizon for 62% respondents fall between 5-10 years, 30% respondents fall between 10-15 years.

Interpretation:-People are ready for the long term investments.

Table4.80 Time horizon when investing in ULIP


Percentage

Low Risk, Low Gain

0 0


6 46 %


7 54 %


Analysis:- According to the above table, 54% respondents are preferring high risk for high returns,46% moderate risk moderate return.

Interpretation:-People want good returns so they are taking risk.


Factors Mean

Return on Investment 1.7Policy Features 1.15Investment Risk 1.15Length of Investment 1.15Tax Savings 1.30Brand Equity of the company 1.38Financial Health (Company) 1.7Core competency of the company in that Sector 1.46Influence of Relatives/Friends in investment decision making 0.076

Post Sales Services support 1.15Interpersonal Skills (Sales Staff) .77Comparison with other Financial product (eg. Mutual Funds) .77

Table 4.82 Features preferred during purchase of ULIP.

Not required Less

Required


-2 -1 0 1 2


1.54


1.30


1.23


1.30

Highly

Dissatisfied



Interpretation:- The investors are satisfied by the above services provided by the company.



Percentage


Analysis:- From the above table it is evident that 69 % are males 31% are female.

Analysis of ULIPs of Tata-AIG

Table4.84 Gender


Percentage

Government service 0 0Private Service 11 84 %Business 1 8 %Student 1 8 %Other 0 0Total 13 100 %

Analysis:- As the above table illustrates, 84 % investors are doing private service, 8 % each for business and student.

Table4.85 Occupation


Percentage


1 8 %


Analysis:- According to above table 54 % investors are investing once a year in insurance plan , 38 % are investing 2-3times a year and 8 % is investing more than 3 times.



Percentage

Tax Saving

4 29 %

Good returns

7 50.00 %


0 0

Wealth creation

3 21 %

Any other 0 0Total 14 100 %

Analysis:- According to above table, 29 % responses are for tax saving , 50.00 % for return and 21 % for wealth creation.

Interpretation:- Most of people invest in the ULIPs for good Returns.



Percentage

Less than 5% 0 06% - 15 % 6 46 % 16% - 25 %

5 38 %

26% - 35 % 2 16 %Total 13 100 %

Analysis:- As the above table depicts, 46 % investors want their return to fall in the category 6-15%, 54 % want return higher than 15%.

Interpretation:-The investors of TATA-AIG are expected moderate to high returns.

Table4.91 Returns you would look at from your investments


Percentage

Child Education

1 7%


0 0


1 7 %

2 in 1 benefits 2 13%Total 15 100 %

Analysis:- According to the above table, 73 % responses are for income growth, 13 % for 2 in 1 Benefit and 6.66 % for child education.

Interpretation:-Most of the investors of TATA AIG purchase ULIPs for income growth.

Table4.92 Reason for investment in the ULIP


Percentage

Up to 5 yrs

3 24 %

Between 5-10 yrs 5 38 % 10 - 15 yrs

5 38 %

Over 15 yrs 0 0Total 13 100 %

Analysis:- According to the above table, the time horizon for 38 % investors falls between 5-10 years, 38 % investors fall between 10-15 and time horizon of 23 % investors falls in upto 5 years .

Interpretation:-Most of the investors of TATA -AIG ready for long term Investment..



Percentage

Low Risk, Low Gain

0 0


7 54%


6 46 %


Analysis:- According to the above chart, 46 % investors are preferring high risk for high returns, 54% moderate risk moderate returns.

Interpretation:-Most of the investors of TATA-AIG wants moderate or high risk for good returns..


Factors Mean

Return on Investment 1

Policy Features 1.30

Investment Risk .69

Length of Investment 1.15

Tax Savings 1.23

Brand Equity of the company 1.15

Financial Health (Company) 1.53

Core competency of the company in that Sector 1.153

Influence of Relatives/Friends in investment decision making

0


Interpersonal Skills (Sales Staff) .615

Comparison with other Financial product (eg. Mutual Funds)

.846


.

Not required Less

Required


-2 -1 0 1 2

Interpretation:-

According to Table 4.95 table,•Return and brand value are very essential ,while other factors are essential.•Financial health is essential while purchasing ULIP.•Regarding influence of relatives/friends in investment decision making they have moderate views.•All other above mentioned factors are also essential


1


.92


.615


.92

Highly

Dissatisfied


Satisfied

-2 -1 0 1 2

Interpretation: The investors are highly satisfied from the premium collection procedure of the company and they are also satisfied from the above mentioned services.



Percentage

Male 12 92%

Female 1 8 %

Total 13 100 %

Analysis:- From the above table it is evident that 92 % are males 8 % is female.

Analysis of ULIPs of Birla Sunlife

Table4.97 Gender


Percentage

Government service 0 0

Private Service 13 100 %

Business 0 0

Student 0 0

Other 0 0

Total 13 100 %

Analysis:- As the above chart illustrates 100 % investors are doing private service

Table4.98 Occupation


Percentage

Once a year 6 46 %2-3 times a year 6 46 %More than 3 times a year

1 8 %


Analysis :- According to above chart 46 % investors are investing once a year , 46 % are investing 2-3times a year and 8 % is investing more than 3 times.

Interpretation:-Most of the investors of Birla Sun life are prefer to invest once or twice a year.



Percentage

Tax Saving

5 29%

Good returns 7 41%


2 11%

Wealth creation 3 19 % %

Any other 0 0

Total 17 100Analysis:- According to above table, 29 % investors are investing in insurance just for tax saving , 41 % for return, 11 % for wealth creation and 19 % for better future. Interpretation:-Most of investors of Birla sun life invest in the ULIPs for tax saving purpose. So they are just investing in ULIPs for tax saving purpose.



Percentage

Less than 5% 0 06% - 15 % 7 54 %16% - 25 % 6 46 %26% - 35 % 0 0Total 13 100 %

Analysis :- As the above table depicts,54% investors want their return to fall in the category6-15%, 46 % want return higher than 15%.

Interpretation:-The investors of Birla Sun Life expected high returns for their investment In ULIPs.



Percentage

Child Education

1 8 %


2 15 %


1 8 %


Analysis:- According to the above table, 62 % investors have purchase ULIPS for income growth, 8 % each for Tax rebate and 2 in 1 benefit and 15 % for pension.

Interpretation:-Most of the investors of Birla Sun Life invest in ULIPs for income growth.

Table 4.105 Reason for investment in the ULIP


Percentage

Up to 5 yrs 4 30%Between 5-10 yrs 6 47 % 10 - 15 yrs

3 23%

Over 15 yrs 0 0Total 13 100 %

Analysis:-According to the above table, the time horizon for 47 % investors falls between 5-10 years, 23 % investors fall between 10-15 and time horizon of 31 % investors is below 5 years .

Interpretation:-Most of the investors of Birla Sun Life are ready for long term investment.



Percentage

Low Risk, Low Gain

3 23 %


5 37 %

High Risk, High Gain 4 30 %No Risk 1 8 %Total 13 100 %

Analysis:- According to the above table, 37 % investors prefer high risk for high returns, 30 % moderate risk moderate return and 23 for low risk low gain.

Interpretation:- Most of the investors of Birla sun life want to take moderate and high risk for high returns.


Factors MeanReturn on Investment 1Policy Features .69Investment Risk -.07Length of Investment .615Tax Savings .92Brand Equity of the company .92Financial Health (Company) .76Core competency of the company in that Sector .15

Influence of Relatives/Friends in investment decision making

-.15

Post Sales Services support .846Interpersonal Skills (Sales Staff) .076Comparison with other Financial product (eg. Mutual Funds) .30


Not required Less

Required


-2 -1 0 1 2


1.07


.692


.769


.769

Highly

Dissatisfied



Interpretation:- Investors are highly satisfied by the premium collection procedure of Birla Sunlife. Also they are satisfied by other services like providing latest information, claim settlement procedure and grievance handling


Traditional Plans ULIPsNo. of females 14 15No. of males 38 37Govt 12 1Private Job 30 46Business 6 2Students 3 1Others 1 2Reason Return Return

Interpretation:The people have purchased ULIPs and traditional plans to get good returns.

Table 4.110 Preference for the plan

Recommendations

On the basis of the analysis of the data collected from the project the following recommendations are suggested to the company:

1. Good distribution network.

2. Security of funds more than Brand name.

3. Advertisement.

4. Awareness.

5. Scope for Private sector.

6. Social well fare.

Conclusion

According to my study, ULIP gives high returns , flexibility and liquidity as compared to traditional plans.

ULIP is more transparent than Traditional Plans. There is no doubt

about the returns in ULIP due to proper transparency, but Traditional Plans have no transparency. Customers came to know about their transactions only at the end.

ULIP covers insurance with investment. In ULIP, a person on the one hand is investing money in market and on the other hand, he is securing his life. Therefore, ULIP is solving both the problems of investing and insurance. If a person is willing to invest in the market, then ULIP is the best option for him.

According to my survey, people think the role of advisor is to help them in achieving the financial objectives and also to explain about the product. Some people thinks that advisor change their preference of investment. Advisor act as guide for them who tell them where to invest their money.

According to my research, the policy holders and the investors give more preference to return on the investments.

Thank you

Documents

Summer Training Project ppts