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2. COMPANY PROFILE
2.1. History about HDFC
HDFC Standard Life is one of Indias leading private life insurance
companies, which offers a range of individual and group insurance
solutions.
It is a joint venture between Housing Development Finance Corporation
Limited (HDFC), Indias leading housing finance institution, Standard
Life policy provider and a leading provider of financial services in the
United Kingdom. HDFC Standard Lifes product portfolio comprises
solutions, which meet various customer needs such as Protection,
Pension, Savings, Investment, and Health.
Customers have the added advantage of customizing their Plans, by
adding optional benefits called riders, at a nominal price. The company
currently has 25 retail and 4 group products in its portfolio, along with
five optional rider benefits catering to the savings, investment, protection
and retirement needs of customers.
HDFC Standard Life continues to have one of the widest reaches among
new insurance companies through a network of 595 offices serving over
720 cities and towns across the country. The company has also increased
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its depth in existing markets with a strong base of more than 207,000
Financial Consultants.
2.2. HDFC Limited
HDFC Limited has set benchmarks for the Indian housing finance
industry. Recognition for the service to the sector has come from several
national and international entities including the World Bank that has
lauded HDFC as a model housing finance company for the developing
countries. HDFC has undertaken a lot of consultancies abroad assisting
different countries including Egypt, Maldives, and Bangladesh in the
setting up of housing finance companies. Customer Service and
satisfaction has been the mainstay of the organization.
HDFC Limited has assisted more than 3.3 million families to own a
home, since its inception in 1977 across 2400 cities and towns through its
network of over 250 offices. It has international offices in Dubai, London
and Singapore with service associates in Saudi Arabia, Qatar, Kuwait and
Oman to assist NRIs and PIOs to own a home back in India.
2.3. Standard Life Group
The Standard Life group has been looking after the financial needs of
customers for over 180 years. It currently has a customer base of around
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7 million people who rely on the company for their insurance, pension,
investment, Banking and health-care needs. Its investment managers are
currently administers 125 billion in assets. It is a leading pensions
provider in the UK, and is rated by Standard & Poor as strong with a
rating of A+ and as good with a Rating of A1 by Moodys
2.4. Market Share
HDFC Ltd. Holds 72.43% and Standard Life (UK Holding) Ltd. holds
26.00% of equity in the joint venture, while the rest is held by others.
2.5. HDFCs Vision
The most successful and admired life insurance company, which means
that it is the most trusted company, the easiest to deal with, offer the best
value for money, and set the standards in the Industry.
2.6. HDFCs Values
Values that they observe while working:
Integrity
Innovation
Customer centricity
People Care One for all and all for one
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Team work
Joy and Simplicity
2.7. Products
HDFC Lifes product portfolio comprises solution, which meet various
customer needs such as Protection, Pension, Savings, Investment and
Health.
2.8. Competitors
The major competitors are:
ICICI
Bajaj Alliance
2.9. Departments
A business is normally organized by its function and its aspects are
divided into smaller departments in order to operate effectively. They
have departments at HDFC Life that specialize and employ people with
expertise in their areas. They communicate well with each other and with
suppliers and customers, to operate effectively.
The departments of company are as follows:
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Actuarial , ERP , Business & service Excellence, Agency Channel ,
Finance & Accounts , Medical, Audit & Risk Management, Group Sales ,
Operations, Banc assurance & Alliances, HR & Administration , RSBD,
Business System & Technology , Investment, Strategy & product,
Channel Development, Legal & compliance, Underwriting, Claims,
Marketing and Direct Channels.
2.10. Organization Chart-
Chairperson
C.E.O
M.D.
Agency Head Operation Head
Underwriter Agency Team Operation HR Head
ZM Senior HR
AVP AVP
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TM TM TM
BM BM BM
Manager
Agent
2.11. AWARDS WON
The recent awards won by the company are:
Best companies to work for in India 2010
'Young Star Super' Voted 'Product of the Year 2010'
'The Ingenious 100 2009' Award
Diamond EDGE Award 2009.
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LITRATURE REVIEW
History
In India, insurance has a deep-rooted history. It finds mention
in the writings of Manu ( Manusmrithi ), Yagnavalkya (
Dharmasastra ) and Kautilya ( Arthasastra ). The writings talk
in terms of pooling of resources that could be re-distributed in
times of calamities such as fire, floods, epidemics and famine.
This was probably a pre-cursor to modern day insurance.
Ancient Indian history has preserved the earliest traces of
insurance in the form of marine trade loans and carriers
contracts. Insurance in India has evolved over time heavily
drawing from other countries, England in particular.
1818 saw the advent of life insurance business in India with
the establishment of the Oriental Life Insurance Company in
Calcutta. This Company however failed in 1834. In 1829, the
Madras Equitable had begun transacting life insurance business
in the Madras Presidency. 1870 saw the enactment of the
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British Insurance Act and in the last three decades of the
nineteenth century, the Bombay Mutual (1871), Oriental
(1874) and Empire of India (1897) were started in the Bombay
Residency. This era, however, was dominated by foreign
insurance offices which did good business in India, namely
Albert Life Assurance, Royal Insurance, Liverpool and London
Globe Insurance and the Indian offices were up for hard
competition from the foreign companies.
In 1914, the Government of India started publishing returns of
Insurance Companies in India. The Indian Life Assurance
Companies Act, 1912 was the first statutory measure to
regulate life business. In 1928, the Indian Insurance Companies
Act was enacted to enable the Government to collect statistical
information about both life and non-life business transacted in
India by Indian and foreign insurers including provident
insurance societies. In 1938, with a view to protecting the
interest of the Insurance public, the earlier legislation was
consolidated and amended by the Insurance Act, 1938 with
comprehensive provisions for effective control over the
activities of insurers.
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The Insurance Amendment Act of 1950 abolished Principal
Agencies. However, there were a large number of insurance
companies and the level of competition was high. There were
also allegations of unfair trade practices. The Government of
India, therefore, decided to nationalize insurance business.
An Ordinance was issued on 19th January, 1956 nationalizing
the Life Insurance sector and Life Insurance Corporation came
into existence in the same year. The LIC absorbed 154 Indian,
16 non-Indian insurers as also 75 provident societies245
Indian and foreign insurers in all. The LIC had monopoly till
the late 90s when the Insurance sector was reopened to the
private sector.
The history of general insurance dates back to the Industrial
Revolution in the west and the consequent growth of sea-faring
trade and commerce in the 17th century. It came to India as a
legacy of British occupation. General Insurance in India has its
roots in the establishment of Triton Insurance Company Ltd.,
in the year 1850 in Calcutta by the British. In 1907, the Indian
Mercantile Insurance Ltd was set up. This was the first
company to transact all classes of general insurance business.
1957 saw the formation of the General Insurance Council, a
wing of the Insurance Association of India. The General
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Insurance Council framed a code of conduct for ensuring fair
conduct and sound business practices.
In 1968, the Insurance Act was amended to regulate
investments and set minimum solvency margins. The Tariff
Advisory Committee was also set up then.
In 1972 with the passing of the General Insurance Business
(Nationalization) Act, general insurance business was
nationalized with effect from 1st January, 1973. 107 insurers
were amalgamated and grouped into four companies, namely
National Insurance Company Ltd., the New India Assurance
Company Ltd., the Oriental Insurance Company Ltd and the
United India Insurance Company Ltd. The General Insurance
Corporation of India was incorporated as a company in 1971
and it commence business on January 1sst 1973.
This millennium has seen insurance come a full circle in a
journey extending to nearly 200 years. The process of re-
opening of the sectorhad begun in the early 1990s and the last
decade and more has seen it been opened up substantially. In
1993, the Government set up a committee under the
chairmanship of RN Malhotra, former Governor of RBI, to
propose recommendations for reforms in the insurance sector.
The objective was to complement the reforms initiated in the
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financial sector. The committee submitted its report in 1994
wherein, among other things, it recommended that the private
sector be permitted to enter the insurance industry. They stated
that foreign companies are allowed to enter by floating Indian
companies, preferably a joint venture with Indian partners.
Following the recommendations of the Malhotra Committee
report, in 1999, the Insurance Regulatory and Development
Authority (IRDA) was constituted as an autonomous body to
regulate and develop the insurance industry. The IRDA was
incorporated as a statutory body in April, 2000. The key
objectives of the IRDA include promotion of competition so as
to enhance customer satisfaction through increased consumer
choice and lower premiums, while ensuring the financial
security of the insurance market.
The IRDA opened up the market in August 2000 with the
invitation for application for registrations. Foreign companies
were allowed ownership of up to 26%. The Authority has the
power to frame regulations under Section 114A of the
Insurance Act, 1938 and has from 2000 onwards framed
various regulations ranging from registration of companies for
carrying on insurance business to protection of policyholders
interests.
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In December, 2000, the subsidiaries of the General Insurance
Corporation of India were restructured as independent
companies and at the same time GIC was converted into a
national re-insurer. Parliament passed a bill de-linking the four
subsidiaries from GIC in July, 2002.
Today there are 24 general insurance companies including the
ECGC and Agriculture Insurance Corporation of India and 23
life insurance companies operating in the country.
The insurance sector is a colossal one and is growing at a
speedy rate of 15-20%. Together with banking services,
insurance services add about 7% to the countrys GDP. A well-
developed and evolved insurance sector is a boon for economic
development as it provides long- term funds for infrastructure
development at the same time strengthening the risk taking
ability of the country.
4.1.Major players in insurance of India
Insurance industry in India comprised mainly of only two state
insurers as follows
Life Insurers
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Life Insurance Corporation of India (LIC)
General Insurers
1. General Insurance Corporation of India (GIC)
GIC had four subsidiary companies, are as follows.
1. The Oriental Insurance Company Limited
2. The New India Assurance Company Limited
3. National Insurance Company Limited
4. United India Insurance Company Limited
In addition to above the following companies have been entered
into Insurance business.
Life Insurers
Public sector
Life Insurance Corporation Of India
Private sector
1. Bajaj Allianz Life Insurance Company Limited
2. Birla Sun Life Insurance Co. Ltd
3. HDFC Standard Life Insurance Co. Limited
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General Insurers
Public Sector
1. National Insurance Company Limited
2. New India Assurance Company Limited
3. Oriental Insurance Company Limited
4. United India Insurance Company Limited
Private Sector
1. Bajaj Allianz General Insurance Co. Limited
2. ICICI Lombard General Insurance Co. Ltd.
3. IFFCO-Tokio General Insurance Co. Ltd.
4. Reliance General Insurance Co. Limited
5. Royal Sundaram Alliance Insurance Co. Ltd.
6. TATA AIG General Insurance Co. Limited
7. Cholamandalam General Insurance Co. Ltd
8. Export Credit Guarantee Corporation
9. HDFC Chubb General Insurance Co. Ltd.
Reinsurer
General Insurance Corporation of India
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Fundamental Concept
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What is insurance?
Insurance is a contract whereby, in returns for the payment of
premium by the insured, the insurers pay the financial losses
suffered by the insured as a result of the occurrence of unforeseen
events. The term risk is used describe all the accidental
happenings, which produce a monetary loss.
Insurance is the method in which large number of people exposed
to a similar risk makes contribution to a common fund out of
which the losses suffered by the unfortunate few, due to accidental
events, are made good. The sharing of risk among large groups of
people is the basic of insurance. The losses of an individual are
distributed over a group of individuals.
The risk becomes insurable if the following requirements are
complied with:
The insured must suffer financial loss if the risk operates.
The loss must be measurable in money.
The objective of the insurance contract must be legal.
The insurer should have sufficient knowledge about the risk
he accepts.
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Types of insurance
Life insurance: it covers individual only, to be more
precise their death only.
Non life insurance (general insurance): it covers
individuals as well as non-living things. Except death it
indemnifies a person for any damages to his health or to the
property belonging to him.
Benefits of life insurance
Replacement of income: life insurance products can provide
support to the family and take care of the familys financial
requirements. It provides a lump sum or periodic payments to
help replace the income stream, in case of an unfortunate event
or an untimely death of the bread earner.
Coasts of education: to support your child with a sound
educational background, and to help him/ her to achieve
his/her dreams, Life insurance products provide you with
a solution, whether you are there or not.
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Retirement expenses: retirement is an age when an
individual has fulfilled almost all his responsibilities and
looks forward to relaxing. Life insurance products can
help you lead a secure and tension free retired life by
assuring that you get guaranteed pension.
Mortgage and Debt protection: with increasing
consuming and ever rising demands, loans and debts are
now part of life. Life insurance products help you ensure
that your family is not duly burdened with their
repayments, in case of an unfortunate events or an
untimely demise of the breadwinner.
Hardships protection: life insurance provides a sense
of security to the income earner and to his/her family.
Buying life insurance frees the individual from various
unnecessary financial burdens that can otherwise make
one spend sleepless nights.
ULIP
ULIP is a market-linked life insurance plan, which invests the
premium money in various proportions in the equity and debt
markets. In effect, this ensures that the returns on such plans
are linked to the performance of the markets while also
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offering the individual an insurance cover at the same time.
This also provides a handy instrument to the investor to save
money as and when he wants.
ULIP came into play in the 1960s and became very popular in
Western Europe and Americas. The reason that is attributed to
the wide spread popularity of ULIP is because of the
transparency and the flexibility which it offers.
As time progressed the plans were also successfully mapped
along with life insurance planning, financial needs, financial
planning for childrens future and retirement planning.
Features of ULIP
ULIP is different from other insurance and investment plans as
it offers the following distinguishing features:
Investment and savings
Flexibility
Investment options
Transparency
Option to take additional cover against
Death due to accident
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Surgeries
Liquidity
Tax Planning
How Unit- Linked Insurance Plans do against?
Unit-linked insurance plans, ULIPs, are distinct from the more
families with profits policies sold for decades by the Life
Insurance Corporation. With profits policies are called so
because investment gains are distributed to policyholders in the
form of a bonus announced every year. ULIPs also serve the
same function of providing insurance protection against death
and provision of long-term savings, but they are structured
differently. In with profits policies, the insurance company
credits the premium to a common pool called the life fund
after setting aside funds for the risk premium on life insurance
and management expenses. Every year, the insurer calculates
how much has to be paid to settle death and maturity claims.
The surplus in the life fund left after meeting these liabilities is
credited to policyholder accounts in the form of a bonus.
In a ULIP too, in a fund that invests money in stocks or bonds.
The value of the unit is determined by the total value of all the
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investments made by the fund divided by the number of units.
If the insurance company offers a range of funds, the insured
can direct the company to invest in the fund of his choice.
Insurance usually offer three choices- an equity fund, balanced
fund and a fund which invests in bonds. In both with profits
policies as well as unit- linked policies, a large part of the first
year premium goes towards paying the agents commissions.
How ULIP is different from term insurance?
A term plan is a pure risk cover plan without any maturity
benefits. This is because there is no savings element in the
premium being charged to the individual; hence maturity
benefits do not accrue. The insured gets the benefits only in
case of death before maturity of policy. Also a term insurance
plan does not give any option to the person insured for saving
and earn returns as he pays the premium only sufficient for his
life cover, and he does not get any returns on it. A term
insurance plan also requires the premium to be paid for a
particular term, which is to be fixed at the time of taking
policy.
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The investor keeps getting returns on compound basis
according to the market movement along with an insurance
cover. ULIP also provides flexibility of choosing the term of
payment of premium and varying as per the requirement of the
investor.
Working of a Unit Linked insurance plan
As an ULIP earns returns for investor on the money he has paid
as premium and also provides life coverage; the premium paid
is treated in the following ways;
Mortality charges: the insurance company to cover the
risk of an eventuality to the individual incurs mortality
charges. The mortality expenses differ depending on the
age of the individual and the sum assured they are higher
for a higher age and sum assured.
Sale and administration expenses: these expenses are
incurred by the insurance company for operational
purposes and recovered from the premium that the
individual pays towards costs incurred to run the
insurance business on a daily basis are example of such
expenses.
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Savings or investment component: this portion of the
premium is invested by the life insurance company in
various investment avenues like government securities,
bonds, money market instrument and equities in varying
proportions. The savings component is what helps
generates the returns which insurance companies pay to
the policy holder by way of bonuses and the maturity
amount.
Tem plans are pure risk cover plans. The premium
charged by term plans cover only the mortality charges,
sales and administration expenses. This is no saving
element in the premium; hence no maturity amount
accrues. It is also due to this reason that term plans are
the cheapest form of life cover available.
Products of HDFC Standard Life
HDFC SL Crest
Any uncertainty should not affect your plans. Be it of life, or
of markets. You want to secure happiness for yourself and your
loved ones. We present HDFC SL Crest - Insurance cum
investment plan that provides valuable financial protection to
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your family when needed the most along with an investment
option for certainty of highest NAV along with a guarantee on
returns. So that when you reap the returns of life, they are on
crests not on lows. In this plan you can choose to invest in
either of two investments options- highest NAV guarantee fund
or free asset allocation option.
Features
;
Advantages
Choice of two investment options - highest NAV guarantee fund or
free asset allocation option.
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Benefit of minimum guaranteed NAV of Rs. 15 at maturity.
On maturity you will receive the fund value as per the investment
option selected.
This plan provides valuable protection to your family in case you are
not around. In case of your unfortunate demise during the policy
term, we will pay the amount higher of your sum assured (less partial
withdrawals) or your total fund value to your family. Please refer to
product brochure for details.
This plan can be taken by filling short medical questionnaire, which
may not require you to go for medicals. Kindly refer to the product
brochure for details.
Tax benefits are offered under section 80c and 10(10d) of the income
tax act, 1961
1. HDFC Life Sampoorn Samridhi Insurance Plan
Sukh aur Samridhi. Joy, happiness and prosperity are your
ultimate desire, not only for yourself but also for your loved
ones. Life insurance plans not only let you secure financial
future of your loved ones, they also assist you in attaining
prosperity.
With HDFC Life Sampoorn Samridhi Insurance Plan, you can
be financially prepared for the future and can fulfill your
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dreams & aspirations. This plan offers financial protection to
your loved ones when they need it the most, enabling you and
your family live life with peace of mind and sar utha ke!
Features
Advantages
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Financial protection to your loved ones by way of a lump sum
payment in case of your unfortunate demise during the policy term.
Sum assured plus attached bonuses will be paid to the nominee. In
case of death due to accident, an additional Sum Assured will be paid.
The policy will terminate and no further benefits will be payable.
Choice of Maturity Benefit Option- on survival till maturity , you
can choose maturity benefit option
Enhanced Cash Option Sum Assured + Reversionary Bonus +any
interim bonus + any terminal bonus + Enhanced Terminal Bonus.
Policy terminates and no further benefits are payable.
Enhanced Cover Option - Sum Assured + Reversionary Bonus + any
Interim bonus + any Terminal Bonus payable on maturity +
Additional Sum Assured on unfortunate death of life assured upto age
of 99 years.
Tax benefits under sections 80C and 10(10D) of the Income Tax
Act, 1961 subject to the provision contained therein
For more details on risk factors, terms and conditions, please read the
Product Brochure carefully and/or consult Financial Consultant
before taking a decision.
2. HDFC SL ProGrowth Flexi
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policy term, we will pay the greater of the Sum Assured or your
total fund value to your nominee.
You can choose any of the following 2 plan options as per your
requirement.
o Life Option = Death Benefit
o Extra Life Option = Death Benefit + Accidental Death
Benefit
On maturity, you can take the Fund Value at the prevailing unit
prices as lump sum or you can opt for settlement option.
You have flexibility of
o Switching: You can move your accumulated funds
from one fund to another anytime
o Premium Redirection: You can pay your future
premiums into a different selection of funds, as per your
need
Tax benefits are offered under section 80C and 10(10D) of the
Income Tax Act, 1961
Introduction-
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We understand that creating and effectively managing our wealth is just
part of the equation. It's also important to preserve it. Through the use of
insurance strategies, it can help us to preserve our wealth during our
lifetime, and protect the value of our estate for our family and other
beneficiaries. Insurance strategies help us to maximize the wealth.
Estate Creation and Preservation-
An individual can offset costs that are incurred at death and preserve
his/her estate by having insurance proceeds pay them for him. Taxes,
liabilities, estate-related and other future costs can all be offset by his
permanent insurance coverage. By taking advantage of the preferred
status of Tax-Exempt Life Insurance, he can maximize the value of his
assets and maximize the value being transferred to the next
generation. Living Benefits insurance is also vital to estate preservation,
by ensuring funds are available which require them at a time of illness.
Tax Minimization-
Tax-exempt insurance can eliminate the annual taxes, which are payable
on investment growth, as well as those payable after death. Individuals
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tired of being punished for strong earnings may appreciate this Tax-
Protector opportunity. The long-term value of these products is that their
earnings can often greatly eclipse what would otherwise be earned
through regular investing.
Estate Maximization and Protection-
If part of an individual portfolio is held in GICs, Canada Savings Bonds
or a bank account, he has probably never given a second thought to
market fluctuations. Sticking to a conservative investment strategy can
lead to peace of mind in the short term, but it may put him at risk in the
long run. Essentially, he will risk outliving his retirement savings.
Generally speaking, one way to ensure that he has enough money to meet
his retirement needs is to diversify his portfolio. He can get the security
of a GIC and the performance potential of the stock market without
needlessly risking his hard-earned savings with Segregated Funds.
Income Enhancement-
Certain solutions using insurance products can provide a supplemental
stream of cash, thereby Enhancing Retirement Income. The net income
derived from this strategy may be significantly higher than what is
achievable with traditional fixed income vehicles, especially during times
of low interest rates.
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WEALTH CREATION IN CORPORATE-
Every day, an individual make crucial business decisions affecting the
financial health of his business organization. And every one knows how
important it is to have the best possible services and products to help
effectively to manage finances. Making the right financial decisions is a
big responsibility.
Some of the best opportunities for small corporations, including holding
companies, come from using tax-exempt life insurance. It is a tax-
efficient means of transferring wealth out of a corporation into the hands
of the next generation after the death of policy holder. An important part
of preparing our business for continued success is to prepare it for the
unexpected. And so for these purpose many business protection strategies
can be used:
Funding Buyout Agreements-
In the case of partnerships, the death or disability of one partner can have
a devastating effect on the survival of a business. Insurance can provide
an excellent method of funding buyout agreements so that the remaining
partner takes full control of the business and the surviving family is
properly compensated.
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Shared Ownership-
For companies who wish to retain top employees, the shared ownership
of a permanent insurance policy can be an attractive opportunity. It
protects the company against the death of the employee, and motivates
that person to remain with the firm through the enticement of an
attractive, low-cost retirement asset. This arrangement can create a win-
win situation for everyone.
Minimizing Corporate Taxes-
If corporate assets are invested in fixed income, then an insurance
strategy can not only reduce its taxable income but it will lower the value
of the business by the amount of the investment, thereby reducing the
inevitable capital gains tax liability.
Maximizing Corporate Assets-
By taking advantage of tax-deferred growth inside a Universal Life or
Whole Life policy, corporate assets can avoid accrual taxation and grow
to a much greater value than if they were invested in a regular account.
Not only that, but upon death, most, if not all, of the proceeds can be paid
out of the corporation tax-free. Ordinarily they would be paid out as
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taxable dividends, requiring approximately one third of the value to be
paid in taxes.
Executive Life Insurance Planning-
Executive life insurance enables you to provide managers and executives
with a supplementary benefit package. In this instance, both you and your
executive purchase a tax-exempt life insurance policy with your
executive named as the insured. Both of you will share the benefits. This
form of insurance provides protection for an executive's family, while
you benefit from an investment offering tax-deferred growth.
Business Succession Planning-
A business succession plan can help protect your business when an
owner-shareholder retires or passes away. Elements of a successful
business succession plan include buy-sell agreements, a Will and powers
of attorney.
A buy-sell provision is a shareholder agreement that allows for the
orderly transfer of shares in the event of disability, death or retirement of
a shareholder. Upon the death of a shareholder, the buy-sell agreement
generally instructs the corporation to purchase the shares of the deceased.
Insurance is a cost-effective way of providing the necessary funds to
carry out those instructions.
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Key Person Insurance-
Many companies, public or private, large or small, often rely on the skills
and contributions of a single person. Proficient with all levels of the
firm's operations, respected by staff and trusted by clients, such key
individuals play a crucial role in the company's success. The sudden
departure of a key person can create a void, difficult, if not near
impossible and costly, to fill. Taking out life insurance on the key person,
or people, in your organization can help mitigate these costs.
CONTRIBUTION IN INDIAN ECONOMY-
Insurance is of Rs. 400 billion businesses in India, and together with
banking services adds about 7% to Indias GDP.
Gross premium collection is about 2% of GDP and has been growing by
15-20% per annum. India also has the highest number of Life insurance
policies in force in the world, and total investible funds with LIC are
almost 8% of GDP.
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Research Methodology
Objective:
1) To study how does insurance helps in wealth creation.
2) To understand insurance as a saving and wealth creating
instrument
3) To examine the financial ethics of Insurance sector
4) To verify awareness of people about Insurance policy
Hypothesis:
1) Life Insurance is one of the Taxes saving device in India.
2) Life Insurance is an Investment option in India.
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Scope of the Project:
The project is related Insurance, Wherein investors can invest
their money to get the good returns. An investment has to be
planned according to their risk bearing capacity and as well as
other factors like investment objectives, returns expected,
taxation, age factor, etc.
Project consists of case studies in the form of individual
profile. Wherein the various aspects of the individuals current
status are taken into consideration and an effort is done to
provide him with the best investment solution for his current
state of finances.
Limitations:
1) Limited time
2) Lack of accurate data
Sources of data-
Sample size 50
Sampling type Exploratory
Method used Questionnaire
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Primary source-
Direct personal interview and with the help of questionnaire
framed with considering objectives.
Secondary source-
Data is taken from some published articles, papers, books and
organization website.
DATA ANALYSIS
Deduction and Exemption
Income Tax
Section
Gross
Annual
Salary
How Much Tax can You Save? HDFC Standard Life Plans
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Sec. 80c Across all
income slabs
Up to Rs. 30,900/- saved on
investment of Rs. 1,00,000/-
All our Life insurance Plans
Sec. 80CCC Across allincome slabs
Up to Rs. 30,900/- saved oninvestment of Rs. 1,00,000/-
All our Life insurance Plans
Sec. 80D Across all
income slabs
Up to Rs. 9,270/- saved on
investment of Rs. 30,000/-(inclusive of Rs. 15,000/- towards
health insurance of parents) All our
Health insurancePlans
All theHealth insurance
riders available
with ourConventional Plans
Upto Rs. 10,815/- saved on
investment of Rs. 35,000/-(inclusive of Rs. 20,000/- towards
health insurance of parents who
senior citizens)
TotalSavingsPossible
Rs. 41,715/-
Rs.30,900/- under Sec. 80C and Sec.80CCC
Rs.9,270/- or Rs.10,815/- under Sec.80D
Above figures calculated for a male with gross annual income exceeding Rs.5,00,000/-
Sec.10 Under Sec.10(10D), the benefits received by you are completely tax-free
Applicable to premium paid for all Health insurance Plans, Critical illness Benefit, accelerated sumAssured and waiver of premium Benefit.
** These calculations are illustrative and based on our understanding of current tax legislations.
Source:
http://www.hdfclife.com/KnowledgeCentre/TaxCenter.aspx
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Bibliography
Books:-
C.R. Kothari Research Methodology & Techniques
Insurance Principles and Practice
Websites:
Hdfclife.com
irda.
Annexure
SURVEY QUESTIONNAIRE INSURANCE AWARENESS
Name of person:
Age: Sex: Male /Female
Address:
Status: Married/Unmarried:
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Education:
Occupation:
1) What is your average monthly income?
Less than 5000 5000-15000 15000 30000
30000 50000 50000 & above.
2) Do you save regularly?
Yes No
3) If Yes, which of the following pattern of savings do you use?
Recurring Deposit Fixed Deposit PPF
Postal Savings Insurance
4) Do you have any Insurance on your life?
Yes No
5) What are viewpoints on life insurance?
Protection Tool Tax Savings Instrument
Saving Option Others (please specify)
6) What plan you have taken & reasons of buying them?
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7) Do you know that life insurance can protect your family against the
burden of repayment of any outstanding loans?
Yes No
8) Do you know that life insurance can help you to create wealth for
yourself & your Family?
Yes No
9) Do you know that the investment insurance can contribute in
countrys economic development, which will indirectly help in
your economic development?
Yes No
10) If you dont have any policy would you like to invest in
insurance?
Yes No
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