awareness regarding ulips and changes made by irda
TRANSCRIPT
1
A
PROJECT REPORT ON
AWARENESS REGARDING ULIPS AND CHANGES MADE BY IRDA
FOR
ICICI PRUDENTIAL LIFE INSURANCE COMPANY LIMITED, PUNE.
SUBMITTED IN PARTIAL FULLMENT OF TWO YEARS FULL TIME CORSE IN MASTERS IN MARKETING MANAGEMENT,
2005-2007
SUBMITTED BY Mr. SHASHANK B. MANKAR
SINGHGAD INSTITUTE OF BUSINESS ADMINISTRATION &
COMPUTER APPLICATION, LONAVALA.
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A
PROJECT REPORT ON
AWARENESS REGARDING ULIPS AND CHANGES MADE BY IRDA
FOR
ICICI PRUDENTIAL LIFE INSURANCE COMPANY LIMITED, PUNE.
SUBMITTED IN PARTIAL FULLMENT OF TWO YEARS FULL TIME CORSE IN MASTERS IN MARKETING MANAGEMENT,
2005-2007
SUBMITTED BY Mr. SHASHANK B. MANKAR
SINHGAD INSTITUTE OF BUSINESS ADMINISTRATION &
COMPUTER APPLICATION, LONAVALA.
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ACKNOWLEDGEMENT
It is an incident of great pleasure in submitting this
PROJECT REPORT
I take this opportunity to express my profound gratitude and indebt ness for
the personal involvement & constructive criticism, which has been provided
beyond technical guidance during the project from my guide
Mr. RUPESH ANKOLEKAR(UNIT MANAGER) of ICICI
PRUDENTIAL LIFE INSURANCE COMPANY LIMITED, PUNE.I shall
ever be grateful to him for the encouraging, suggestions & guidance during the
project period.
I am also indebted to Prof. P.K. SINHA, Director SIBACA ,
Lonavala, for his continuous support, who helped us a lot in completing this
project to the best of my ability.
This report have been the impart the of many persons and I would like
to thanks all those who have knowingly or otherwise helped me in getting
through this study.
Project By :-
Mr. SHASHANK MANKAR
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TO WHOM IT MAY CONCERN
This is to be certify that this project titled AWAEWNWSS REGARDING
ULIP S AND CHANGES MADE BY IRDA
at ICICI PRUDENTIAL LIFE
INSURANCE COMPANY LTD, KOTHRUD, PUNE is a bonafide work carried
out by Mr. SHASHANK MANKAR of MMM-II of SIBACA for in partial
fullfilment of MMM Degree University of Pune.
He has worked under our guidance and direction. His work found to be
satisfactory and complete in all respect.
Director: Project Guide:
Date: Date:
Place: Place:
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EXECUTIVE SUMMARY OF THE PROJECT
ICICI PRUDENTIAL is one of the leading life insurance companies in India.
It has a wide range of insurance products to meet the individual s needs at various
stages in one s life. It has the following core aims:
Understanding the needs of customers and offering them superior products
and service
Leveraging technology to service customers quickly, efficiently and
conveniently
Developing and implementing superior risk management and investment
strategies to offer sustainable and stable returns to policyholders
And above all, building transparency in all our dealings.
This Project deals with the analysis of the investing pattern of the service
professionals and also tapping of the potential investor. This project also focuses on
the various aspects of the following.
(i ) Obtain data on their demographics
(ii) Compare individual investors according to their income, risk taking
ability and their perception towards financial companies.
(iii) It also try find out the significant changes in the investment pattern of
the professionals in the recent period
(iv) Investigate the investment decision-making processes used by such
investors.
Before any marketing effort can be initiated, the present customer base and
any potential target markets should be clearly identified. It was therefore
decided to carry out a survey of individual investors in Pune.
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OBJECTIVE
Every project has some objective without whose a project cannot be completed. The
behind e Project titled AWARENESS AWARENESS OF ULIPS AND
CHANGES MADE BY IRDA which was carried out for ICICI PRUDENTIAL
LIFE INSURANCE COMPANY LTD, PUNE,
has following objectives:
To find out awareness of ULIP s among customer.
To obtain data on customers response to ULIP.
To find out pattern of customers investments.
To find out awareness among people regarding changes made by IRDA
To find out awareness among people regarding icici prudential life
insurance company.
To find out Proportion of life insurance policies in the market
To obtain data on customers demographics
To compare individual investors according to their income, risk taking ability
and their perception towards financial companies.
To try find out the significant changes in the investment pattern of the
professionals in the recent period
To Investigate the investment decision-making processes used by such
investors.
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INDEX
SR. NO.
TOPIC NAME PAGE NO.
1. INSURANCE 01
2. INSURANCE SECTOR IN INDIA 02
3. INSURANCE COMPANIES 06
4. ICICI PRUDENTIAL LIFE INSURANCE COMPANY
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5. ICICI PRUDENTIAL S PRODUCT 15
6. ULIP 20
7. ULIP & INSURANCE COMPANIES 33
8. NEED TO CHANGE ULIP GUIDELINE 35
9. IRDA 36
10. CHANGES IN ULIP MADE BY IRDA 38
11. SWOT ANAYSIS OF ULIP 45
12. MARKET RESEARCH 47
13. RESEARCH ANALYSIS & FINDINGS 49
14. DEALING WITH CLIENT & THEIR DOUBTS
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15. TAPPING OF POTENTIAL INVESTORS 67
16. COCLUSION 73
17. RECOMMANTAIONS 74
18. BIBILOGRAPHY 75
19 ANNEXURE 76
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1. INTRODUCTION
INSURANCE
The business of insurance is related to the protection of the economic values of
assets. Every asset has value. The asset would have created through the efforts of
the owner. The asset is valuable to owner, because he expects to get some benefit
from it. The benefit may be an income or something else. It is benefit because it
meets some his needs.
Assets are insured because they are likely to be destroyed; through
accidental occurrences. Such possible occurrences are called perils. Fire, floods,
breakdowns, lightening, earthquakes are perils. If such perils can cause damage to
the asset, we say the asset is exposed to that risk. Perils are the events. Risk is the
consequential losses or damages.
The risk only means that possibility of loss or damage. The damage
may or may not happen. There has to be uncertainty about the risk .Insurance is
relevant only if there are uncertainties. If there is no uncertainty about the
occurrence of an event, it can not be insured against. In case of human being, death
is certain, but the time of death is uncertain. In the case of the person who is
terminally ill, the time of death is not uncertain, though not exactly known. He can
not be insured.
Insurance dose not protect the asset. Insurance only tries to
reduce the impact of the risk on the owner of the asset and those who depend on the
asset. It only compensates the losses and that to not fully.
Only economic consequences can be insured. If the loss is not financial,
insurance may not be possible.
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2. INSURANCE SECTOR IN INDIA
The insurance sector in India has come a full circle from being an open competitive
market to nationalizations and back to a liberalized market again. Tracing the
developments in the Indian insurance sector reveals the 360-degree turn witnessed
over a period of almost two centuries.
A BRIEF HISTORY OF THE INSURANCE SECTOR
The business of life insurance in India in its existing form started in India in the
year 1818 with the establishment of the Oriental Life Insurance Company in
Calcutta.
Some of the important milestones in the life insurance business in India are:
1912: The Indian Life Assurance Companies Act enacted as the first statute
to regulate the life insurance business.
1928: The Indian Insurance Companies Act enacted to enable the government
to collect statistical information about both life and non-life insurance
businesses.
1938: Earlier legislation consolidated and amended to by the Insurance Act
with the objective of protecting the interests of the insuring public.
1956: 245 Indian and foreign insurers and provident societies taken over by
the central government and nationalized. LIC formed by an Act of
Parliament, viz.
LIC Act, 1956, with a capital contribution of Rs. 5 crore from the
Government of India.
The General insurance business in India, on the other hand, can trace its roots to the
Triton Insurance Company Ltd., the first general insurance company established in
the year 1850 in Calcutta by the British.
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Some of the important milestones in the general insurance business in India are:
1957: General Insurance Council, a wing of the Insurance Association of
India, frames a code of conduct for ensuring fair conduct and sound business
practices.
1968: The Insurance Act amended to regulate investments and set minimum
solvency margins and the Tariff Advisory Committee set up.
1972: The General Insurance Business (Nationalization) Act, 1972
nationalised the general insurance business in India with effect from 1st January
1973.
107 insurers amalgamated and grouped into four companies viz. the National
Insurance Company Ltd., the New India Assurance Company Ltd., the
Oriental Insurance Company Ltd. and the United India Insurance Company
Ltd. GIC incorporated as a company.
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INSURANCE SECTOR REFORMS:
In 1993, Malhotra Committee headed by former Finance Secretary and RBI
Governor R.N. Malhotra was formed to evaluate the Indian insurance industry and
recommend its future direction.
The Malhotra committee was set up with the objective of
complementing the reforms initiated in the financial sector. The reforms were aimed
at "creating a more efficient and competitive financial system suitable for the
requirements of the economy keeping in mind the structural changes currently
underway and recognizing that insurance is an important part of the overall financial
system where it was necessary to address the need for similar reforms "
In 1994, the committee submitted the report and some of the key recommendations
included:
1) STRUCTURE
Government stake in the insurance Companies to be brought down to 50%
Government should take over the holdings of GIC and its subsidiaries so that
these subsidiaries can act as independent corporations
All the insurance companies should be given greater freedom to operate
2) COMPETITION
Private Companies with a minimum paid up capital of Rs.1bn should be
allowed to enter the industry
No Company should deal in both Life and General Insurance through a single
entity
Foreign companies may be allowed to enter the industry in collaboration with
the domestic companies
Postal Life Insurance should be allowed to operate in the rural market
Only One State Level Life Insurance Company should be allowed to operate
in each state
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3) REGULATORY BODY
The Insurance Act should be changed
An Insurance Regulatory body should be set up
Controller of Insurance (Currently a part from the Finance Ministry) should
be made independent
4) INVESTMENTS
Mandatory Investments of LIC Life Fund in government securities to be
reduced from 75% to 50%
GIC and its subsidiaries are not to hold more than 5% in any company (There
current holdings to be brought down to this level over a period of time)
5) CUSTOMER SERVICE
LIC should pay interest on delays in payments beyond 30 days
Insurance companies must be encouraged to set up unit linked pension plans
Computerisation of operations and updating of technology to be carried out in
the insurance industry The committee emphasized that in order to improve the
customer services and increase the coverage of the insurance industry should
be opened up to competition.
But at the same time, the committee felt the need to exercise caution as any
failure on the part of new players could ruin the public confidence in the
industry. Hence, it was decided to allow competition in a limited way by
stipulating the minimum capital requirement of Rs.100 crores. The committee
felt the need to provide greater autonomy to insurance companies in order to
improve their performance and enable them to act as independent companies
with economic motives. For this purpose, it had proposed setting up an
independent regulatory body.
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3.INSURANCE COMPANIES
IRDA has so far granted registration to 12 private life insurance companies and 9
general insurance companies. If the existing public sector insurance companies
are included, there are currently 13 insurance companies in the life side and 13
companies operating in general insurance business. General Insurance
Corporation has been approved as the "Indian reinsure" for underwriting only
reinsurance business. Particulars of the life insurance companies and general
insurance companies including their web address are given below:
LIFE INSURERS Websites
Public Sector
Life Insurance Corporation of India www.licindia.com
Private Sector
Allianz Bajaj Life Insurance Company Limited www.allianzbajaj.co.in
Birla Sun-Life Insurance Company Limited www.birlasunlife.com
HDFC Standard Life Insurance Co. Limited www.hdfcinsurance.com
ICICI Prudential Life Insurance Co. Limited www.iciciprulife.com
ING Vysya Life Insurance Company Limited www.ingvysayalife.com
Max New York Life Insurance Co. Limited www.maxnewyorklife.com
MetLife Insurance Company Limited www.metlife.com
Om Kotak Mahindra Life Insurance Co. Ltd. www.omkotakmahnidra.com
SBI Life Insurance Company Limited www.sbilife.co.in
TATA AIG Life Insurance Company Limited www.tata-aig.com
AMP Sanmar Assurance Company Limited www.ampsanmar.com
Dabur CGU Life Insurance Co. Pvt. Limited www.avivaindia.com
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Company Share Total Capital
(Rs)
FDI % Foreign Capital
(Rs)
Market Based
on
Amp Snmar 217 0 0 0.54
Aviva Life 459 26 119.34 1.12
Bajaj Allianz 368 26 96 6.12
Birla Sun Life 400 26 104 1.84
HDFC Standard
250 18.9 47 2.96
ICICI
Prudential
1085 26 282 7.11
ING Vysya 440 26 68 0.63
Kotak
Mahindra
260 26 68 0.71
Max New York 500 26 130 1.32
MET Life 355 26 92 0.4
Sahara Life 100 0 0 0.06
SBI Life 350 26 91 1.52
Tata AIG 381 26 99 1.78
Total 5165 - 1196.34 -
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The following graph shows the weighted new business premium income collected by
private life insurers during the period April to September 2005, as per the statistics
released by the Insurance Regulatory and Development Authority ( IRDA ). Private
life insurers increased their market share to 34.3% in this period, up from 22.8% in
the corresponding period last year.
The private non-life insurers achieved 60.9% growth in gross new business premium
income in the period April to September 2005 over the corresponding period last
year. A breakdown by company is shown below.
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INDUSTRY STATISTICS
The life insurance industry grew by 20.4%, in terms of weighted new premium
income, in the first six months of FY2005-06 over the corresponding period in the
previous year. ICICI Prudential continues to be the leading private sector player,
with a new business market share of 11.5% of the total market. Bajaj Allianz Life
and HDFC Standard Life stood at second and third place among the private players,
with market shares of 5% and 4.2% respectively. The new business market share of
the Life Insurance Corporation of India ( LIC ) slipped to 65.7%, down from 77.2%
in the first six months of FY2004-05.
KEY PLAYERS IN THE INDIAN MARKET
While the public sector LIC dominates the Indian life insurance market with nearly
80 per cent of the market share. It has 248 branches, 115,000 employees and over 1
million agents. It has also been improving internal processes and systems, upgrading
skills of its agency force and managers and developing innovative products. LIC
sold 1.69 crore policies during the year compared to 18 lakh policies sold by all the
private players.
ICICI Prudential is the leader among the private players with a
market share of 6.69 per cent after its premia collection totaled Rs 11.54 billion.
Bajaj Allianz with sales of Rs 4.9 billion had a market share of 2.86 per cent. Birla
Sun Life with sales of Rs 4.8 billion had a market share of 2.81 per cent and SBI
Life with premium collection of Rs 3.9 billion, a market share of 2.29 per cent. With
its combination of aggressive marketing through an agency force and the use of the
banking channel, ICICI has emerged as a key player. Initially, the company drove
new business by opening branches in new locations. The focus has now shifted to
penetrating these locations for increasing market share. The company is also trying
to get higher penetration in the High Net Worth segment. The company has seven
bancassurance partners and this is the largest contributor to non-agency business. It
also has 15 key non-bank partners and 800 financial sales consultants. As of
September 2004, it had 90 branches in 60+ locations. It took the initiative in
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launching non-traditional products such as life-stage products, retirement solutions
and child plans. It also focused on Unit Linked Plans (ULIPs) to target new
consumer segments. It has a presence in 15 states through partnership arrangements
and as of 2003-04, it sold 64,764 policies in rural areas.
HDFC Standard Life has established its branches in 110 locations and is
targeting non-metro towns. It is hoping to leverage its pedigree/parentage to gain
more customer acceptance. As a result, it is focusing on quality
not just volume
growth. It has developed some innovative products like the Loan Cover Term
Assurance Plan which provides a lumpsum in case of death of the assured life during
the term plan. Aimed at the growing segment of home loan takers, the plan helps the
family to repay the outstanding loan. Given that HDFC has a huge database of
home-loan customers, it can easily tap into this resource to acquire new business.
The compnay is leveraging its large customer database of home loan and banking
clients to cross-sell insurance products.
Birla Sun Life was the first to offer ULIPs in the Indian insurance
market. And this has been the primary driver of its growth over the last one year.
The company has been investing in customer education and feels that as a result
customers don't view ULIPs as mutual funds but long term insurance. As of 2004,
the company had 33 branches, 10,274 agents, 79 corporate relationships and 10
bancassurance partners.
Bajaj Allianz has been focusing on second tier towns and cities which
are yet to witness the entry of other life insurance players apart from LIC. It is using
first mover advantage by opening an office in the most prominent location in a non-
metro town. It hires local people who are trained. Its mantra is to develop only the
indispensable infrastructure so that it can match the pricing of LIC. Apart from that
it claims that it is the only private player to provide policy servicing at the branch
level. Standard Chartered is currently its biggest partner followed by Syndicate
Bank and Centurion Bank. The biggest challenge that the company faces is the weak
infrastructure
particularly transport and communications
in the smaller cities. It
is also facing a challenge in terms of banking channels, particularly for customers
who bank with cooperative banks, where delays in clearing cheques are inevitable.
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Tied agencies comprise the biggest channel (68%) of new business acquisitions for
Bajaj Allianz. Bancassurance (27%) is the other significant channel of growth for
the company.
Table 2: Market Shares of Key Players
LIC 80%
ICICI Prudential 6.7%
Birla Sun Life 2.3%
Bajaj Allianz 2.8%
SBI Life 2.2%
Tata AIG 1.3%
Max - NYL 0.9%
Met Life 0.2%
Aviva 0.8%
Om Kotak 0.6%
ING Vysya 0.4%
AMP Sanmar 0.3%
Source: media reports
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4. ICICI PRUDENTIAL LIFE INSURANCE COMPANY
ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a
premier financial powerhouse, and Prudential plc, a leading international financial
services group headquartered in the United Kingdom. ICICI Prudential was amongst
the first private sector insurance companies to begin operations in December 2000
after receiving approval from Insurance Regulatory Development Authority (IRDA).
ICICI Prudential s equity base stands at Rs. 1185 crore with ICICI
Bank and Prudential plc holding 74% and 26% stake respectively. For the half year
ended September 30, 2005, the company garnered Rs 820 crore of new business
premium for a total sum assured of Rs 7,131 crore and wrote 283,818 policies. For
the past four years, ICICI Prudential has retained its position as the No. 1 private
life insurer in the country, with a wide range of flexible products that meet the needs
of the Indian customer at every step in life .
The logo in the combination of ICICI Bank s I man and Prudential s
lady prudence.. The I-man signifies the dynamic individual with drive and
conviction, while prudence epitomizes wise conduct. Every three minutes ICICI
PRUDENTIAL protects one more Indian life.ICICI PRUDENTIAL is the life
insurance company to implement six sigma quality programme. Of the company s
2000 plus employees, less than 5% have prior experience in insurance industry.
The average age of its employees is 29 years.
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VISION OF COMPANY
To make ICICI Prudential the dominant Life and Pensions player built on trust by
world-class people and service.
This we hope to achieve by:
Understanding the needs of customers and offering them superior products
and service
Leveraging technology to service customers quickly, efficiently and
onveniently
Developing and implementing superior risk management and investment
strategies to offer sustainable and stable returns to our policyholders
Providing an enabling environment to foster growth and learning for our
employees
And above all, building transparency in all our dealings.
ABOUT THE PROMOTERS
ICICI Bank (NYSE:IBN) is India's second largest bank and largest private sector
bank with assets of Rs. 1892.18 billion as on September 30, 2005. ICICI Bank
provides a broad spectrum of financial services to individuals and companies. This
includes mortgages, car and personal loans, credit and debit cards, corporate and
agricultural finance. The Bank services a growing customer base of more than 14
million customers through a multi-channel access network which includes over 590
branches and extension counters, 2,030 ATMs, call centres and Internet banking
(www.icicibank.com).
Established in London in 1848, Prudential plc, through its businesses in the
UK and Europe, the US and Asia, provides retail financial services products and
services to more than 16 million customers, policyholder and unit holders
worldwide. As of June 30, 2004, the company had over US$300 billion in funds
under management. Prudential has brought to market an integrated range of financial
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services products that now includes life assurance, pensions, mutual funds, banking,
investment management and general insurance. In Asia, Prudential is the leading
European life
insurance company with a vast network of 24 life and mutual fund operations in
0twelve countries - China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia,
the Philippines, Singapore, Taiwan, Thailand and Vietnam.
ICICI BANK
ICICI Bank (NYSE:IBN) is India''s second largest bank and largest private sector
bank with over 50 years of financial experience and with assets of Rs. 1812.27
billion as on 30th June, 2005. ICICI Bank offers a wide range of banking products
and financial services to corporate and retail customers through a variety of delivery
channels and through its specialised subsidiaries and affiliates in the areas of
investment banking, life and non-life insurance, venture capital and asset
management. ICICI Bank is a leading player in the retail banking market and has
over 13 million retail customer accounts. The Bank has a network of over 570
branches and extension counters, and 2,000 ATMs.
PRUDENTIAL PLC
Established in London in 1848, Prudential plc, through its businesses in the UK and
Europe, the US and Asia, provides retail financial services products and services to
more than 16 million customers, policyholder and unit holders worldwide. As of
June 30, 2004, the company had over US$300 billion in funds under management.
Prudential has brought to market an integrated range of financial services products
that now includes life assurance, pensions, mutual funds, banking, investment
management and general insurance. In Asia, Prudential is the leading European life
insurance company with a vast network of 24 life and mutual fund operations in
twelve countries - China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the
Philippines, Singapore, Taiwan, Thailand and Vietnam.
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5. ICICI PRUDENTIAL s PRODUCTS
PRODUCT SEGMENTS
LINKED PRODUCTS
As the name suggests, the premium received on these products post mortality
charges & admin charges is invested in Funds .These products are directly linked
to the performance of underlying fund. E.g.: Lifetime, LifeLink.
PENSION PRODUCTS
A Pension Product is one which provides for retirement benefits i.e.,
pensions, annuities.
UNIVERSAL LIFE PRODUCTS
Universal Life Products are products wherein the capital amount invested in the
Insurance plan is guaranteed.
E.g.: Secure Plus, Cash Plus etc
PARTICIPATING
Participating products are the ones that participate in the profits of the
company. Hence, in a particular period if the company does not do well, the
Vested Bonuses (VB) gets directly affected. E.g.: CashBak, Smartkid RP,
Save n Protect RP.
NON PARTICIPATING
These are products which do not enjoy participation in the profits of the
company i.e., no Guaranteed additions or Vested Bonuses.
Eg: Lifeguard
RURAL PRODUCTS
Rural Products are customized to the requirements of the rural sector. It s a
regulatory obligation on every insurance company to source a certain percentage
of the business from the rural sector. ICICI Prudential has Mitr, Suraksha as its
rural products.
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GROUP PRODUCTS
A Group Policy as the name suggests is a Policy which covers a group of
people .e.g. a Policy taken by the organization which covers all the
Employees.
INSURANCE SOLUTIONS FOR INDIVIDUALS
ICICI Prudential Life Insurance offers a range of innovative, customer-centric
products that meet the needs of customers at every life stage. Its products can be
enhanced with up to 5 riders, to create a customized solution for each policyholder.
SAVINGS SOLUTIONS:
Secure Plus is a transparent and feature-packed savings plan that offers
3 levels of protection.
Cash Plus is a transparent, feature-packed savings plan that offers 3
levels of protection as well as liquidity options.
Save n Protect is a traditional endowment savings plan that offers life
protection along with adequate returns.
Cash Back is an anticipated endowment policy ideal for meeting
milestone expenses like a child s marriage, expenses for a child s
higher education or purchase of an asset.
Lifetime & Lifetime II offer customers the flexibility and control to
customize the policy to meet the changing needs at different life
stages. Each offer 4 fund options
Preserver, Protector, Balancer and
Maximiser.
Life Link II is a single premium Market Linked Insurance Plan which
combines life insurance cover with the opportunity to stay invested in
the stock market.
Premier Life is a limited premium paying plan that offers customers
life insurance cover till the age of 75.
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Invest Shield Life is a Market Linked plan that provides capital
guarantee on the invested premiums and declared bonus interest.
Invest Shield Cash is a Market Linked plan that provides capital
guarantee on the invested premiums and declared bonus interest along
with flexible liquidity options.
Invest Shield Gold is a Market Linked plan that provides capital
guarantee on the invested premiums and declared bonus interest along
with limited premium payment terms.
PROTECTION SOLUTIONS
Lifeguard is a protection plan, which offers life cover at very low cost.
It is available in 3 options
level term assurance, level term assurance
with return of premium and single premium.
Home Assure is a mortgage reducing term assurance plan designed
specifically to help customers cover their home loans in a simple and
cost-effective manner.
CHILD PLANS
Smart Kid education plans provide guaranteed educational benefits to a
child along with life insurance cover for the parent who purchases the
policy. The policy is designed to provide money at important
milestones in the child s life. SmartKid plans are also available in
unit-linked form
both single premium and regular premium.
RETIREMENT SOLUTIONS
Forever Life is a retirement product targeted at individuals in their thirties.
Secure Plus Pension is a flexible pension plan that allows one to select
between 3 levels of cover.
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Market-linked retirement products
Lifetime Pension II is a regular premium market-linked pension plan
Life Link Pension II is a single premium market-linked pension plan.
Invest Shield Pension is a regular premium pension plan with a capital
guarantee on the investible premium and declared bonuses.
Golden Years: is a limited premium paying retirement solution that offers tax
benefits up to Rs 100,000 u/s 80C, with flexibility in both the accumulation
and payout stages.
ICICI Prudential also launched Salaam Zindagi , a social sector group
insurance policy targeted at the economically underprivileged sections of the
society.
Group Insurance Solutions
ICICI Prudential also offers Group Insurance Solutions for companies
seeking to enhance benefits to their employees.
ICICI Pru Group Gratuity Plan: ICICI Pru s group gratuity plan helps
employers fund their statutory gratuity obligation in a scientific manner. The
plan can also be customized to structure schemes that can provide benefits
beyond the statutory obligations.
ICICI Pru Group Superannuation Plan: ICICI Pru offers a flexible defined
contribution superannuating scheme to provide a retirement kitty for each
member of the group. Employees have the option of choosing from various
annuity options or opting for a partial commutation of the annuity at the time
of retirement.
ICICI Pru Group Term Plan: ICICI Pru s flexible group term solution helps
provide affordable cover to members of a group. The cover could be uniform
or based on designation/rank or a multiple of salary. The benefit under the
policy is paid to the beneficiary nominated by the member on his/her death.
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FLEXIBLE RIDER OPTIONS
ICICI Pru Life offers flexible riders, which can be added to the basic policy at a
marginal cost, depending on the specific needs of the customer.
Accident & disability benefit: If death occurs as the result of an accident
during the term of the policy, the beneficiary receives an additional amount
equal to the rider sum assured under the policy. If the death occurs while
traveling in an authorized mass transport vehicle, the beneficiary will be
entitled to twice the sum assured as additional benefit.
Accident Benefit: This rider option pays the sum assured under the rider on
death due to accident.
Critical Illness Benefit: protects the insured against financial loss in the event
of 9 specified critical illnesses. Benefits are payable to the insured for
medical expenses prior to death.
Income Benefit: This rider pays the 10% of the sum assured to the nominee
every year, till maturity, in the event of the death of the life assured. It is
available on Smart Kid, Secure Plus and Cash Plus
Waiver of Premium: In case of total and permanent disability due to an
accident, the premiums are waived till maturity. This rider is available with
SecurePlus and Cash Plus.
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6. UNIT LINKED INSURANCE PLANS (ULIPs)
BASICS OF UNIT LINKED INSURANCE PLANS
Unit Linked Insurance Plan: A policy which provides for life insurance where the
policy value at any time varies according to the value of the underlying assets at the
time.
Unit Linked Insurance Plan (ULIP) is life insurance solution that
provides the client with the benefits of protection and flexibility in investment.
The investment is denoted as units and is represented by the value that it has
attained called as Net Asset Value (NAV)
ULIP came into play in the 1960s and became very popular in Western
Europe and Americas. The reason that is attributed to the wide spread popularity of
ULIP is because of the transparency and the flexibility which it offers to the clients.
As times progressed the plans were also successfully mapped along with life
insurance need to retirement planning.
Units in Funds
Underlying Investments
Unit Linked Insurance Policies
28
ULIP STRUCTURE LOOKS LIKE AS FOLLOWS
In today s times
ULIP provides solutions for all the needs of a client like
insurance planning, financial needs, financial planning for children s future and
retirement planning.
1. Over the last two years, insurance companies have been hard selling unit-
linked life insurance plans promising the invester over15% per annum in
return , compared to the 6percent or so that an endowment policy yield.
ULIPs have become the policies to push in the Indian life insurance market.
2. ULIPs are the life insurance plans that like endowment schemes pay a
specific amount (sum assured.) upon the death of insured. But unlike the
endowment plan, here the premium paid is treated somewhat like an
investment in a mutual fund.
Contribution
Less charge
Life Cover Investment represented as Units
29
3. Some of it is deducted as cost of insurance and servicing a ULIP while the
investor is issued units for the rest. Of the first year s premium, at least 73
percent goes into units. The proportion keeps increasing in the following
years.
4. The investor can choose the investment option he wants. Most companies
offer 3-5 options ranging from full debt to large dollops of equity. And
premium need not be paid over the life of the policy.
5. The entire amount can be paid in the first year itself. On maturity endowment
plan gives the insured the sum assured and a bonus-more than amount
invested. In an ULIP like mutual fund, he could get more or less than what he
invested depending on the net asset value (NAV) of the scheme.
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FEATURES OF A UNIT LINKED PLAN
ULIP distinguishes itself through the multiple benefits that it provides to the
consumer. The plan is a one stop solution providing
1. Life Protection
2. Investment and Savings
3. Flexibility
a. Adjustable life cover
b. Investment option
4. Transparency
5. Options to take additional cover against
a. Death due to accident
b. Disability
c. Critical Illness
d. Surgeries
6. Liquidity.
7. Tax planning
In today s fast paced world, the clients need change equally fast. Taking the above
benefits lets see how each gets morphed with situation changing for the client.
31
LIFE PROTECTION
Can any one of us deny that we do not need life protection? Honestly none can
especially when we see the fatal events that occur so frequently around us.
However the need may vary and ULIP provides the benefit of adjusting according
to the varying need of the client.
The life insurance needs keep changing throughout the life stage of an individual
When we start working
When we start a family
When our children start a career
When we retire
This when mapped to life insurance needs gives us a graph:
Time
Therefore as our responsibilities grow the need for life protection grows and when
these responsibilities are successfully executed the need reduces.
When we start working
When we start family When our children establish careers
When we retire
Need for Life Protection
32
ULIP allows a client to change the varying life protection needs that makes it
Easier for the client to manage
Hassle free
Economically effective
The death benefit is usually a multiple of the Contribution being paid which ensures
that the Contribution is adequate enough to provide life protection and is also able
to maintain a semblance between protection and savings.
The charge is deducted each year as per the age of the client
therefore at the age of 30, mortality for the age of 30 is charged and at the age of
31mortality for the age of 31 is charged.
INVESTMENT AND SAVINGS
Undoubtedly all of us look for saving the money that we have and to ensure that the
investment that we make should create value for us
and more the better.
Many life insurance plans present in the market do not provide justice to this
important need of the client.ULIP on the other hand has all the composition of
satisfying investment and savings needs of the clients.
ULIP provides the client with the option of investing as per personal
risk profile and get returns accordingly. There are options of funds where in the
client can put money in
Equity Market
Debt Markets
Balanced funds with a mix of the above two
Short-term debt market
This also helps the client in saving in accordance to the age as a younger person can
afford to take some risk however a senior citizen might not be in a position to make
investment in comparatively high risk instruments.
33
TRANSPARENCY
Every client has the right to know about the manner in which the contribution being
given by him is being invested. The biggest concern that is raised is about the
charges.
ULIP are completely transparent and the client knows as how every
paisa being charges is allocated.
There are various kinds of expenses that are involved in any insurance
plan. These expenses may be related to the sales and distribution cost, or the
operational costs, the costs related to the life insurance cover or the costs related to
the management of expenses. Since all unit-linked plans have a transparent
structure, they have to exhibit all the charges. It may be worthwhile to know about
the various kind of expenses related to a unit-linked plan.
THE VARIOUS KINDS OF EXPENSES ARE DETAILED
BELOW
CONTRIBUTION RELATED CHARGES:
These are charges that are represented as a percentage of the regular or single
contribution paid. In case of a regular contribution plan, it is usually high in the first
year to pay for the distribution cost. This charge pays for the issuance and for
distribution commissions.
This is a charge to cover the running expenses of the policy. For single contribution
plans this is levied once at the start of the policy. For regular contribution plans this
will be charged on a regular uniform basis depending upon the frequency of
payments.
Normally these charges are shown as percentage of the contribution. Allocation is
another terminology used by the company in actually representing costs.
Allocations are mathematically reverse of the charges.
Thus mathematically;
34
Allocation= 1- charges.
Thus for example if a product has a 70% allocation in the first year, it means 1-
0.7=0.3 or 30% charge
ADMINISTRATION CHARGES:
These are charges that are levied for the administration of the policy and the related
costs of administration of the insurance company, itself. These costs are different
from the issuance and the distribution related costs of the product. They are more
related to the costs like the IT, operational, etc cost of continuing the policy.
There are a few prominent ways in which these costs are levied.
They can be levied as the percentage of the value of the investments (funds) in the
account of the policyholder. So for example, as Bajaj Allianz levy a charge of 1.25%
of the fund for the administration of the policy, every year. These kinds of charges
get adjusted in the Unit Value (NAV), as the NAV is declared after adjusting these
costs.
They can be levied as a flat charge with an option of increasing it by a certain
percentage over years. For example, Birla levies a flat charge of Rs 28 per month on
its policy. HFDC SL unit linked plan levies Rs 180 annually as the administration
charges.
FUND MANAGEMENT FEE:
All unit linked plans have underlying funds, which the policyholders choose for
their investments. These funds constitute of various financial instruments such as
equity, bonds, money market instruments.
The fund management fees is levied to pay for the charges of managing the
investments, which basically involve the cost of buying and selling the various
financial instruments for the various funds.
35
Options:
a. Choice of investment plan
1. MAXIMISER (GROWTH):
If high growth is priority, this is the plan. Investment is done primarily in equity
and equity related securities.
Equity and related security Max: 100%
Debt, Money Market & Cash: Max: 25%
2. PROTECTOR (INCOME):
If priority is steady returns, one can opt for the protection Plan . One can accumulate
a steady income , at a low risk , across a medium to long term period from a
portfolio , which is primarily invested in fixed income securities .
Debt investment Max : 100%
Money market and cash Max : 25%
3. BALANCER (BALANCED):
If one prefers balance of growth and steady returns ,he should choose balance plan.
Investment will be in equity and equity
linked securities as well as in fixed
income securities.
Debt, Money Market & Cash : Min: 60
Equity & equity related securities : Max: 40%
5. PRESERVER:
The objective of the plan is to ensure capital protection by investing in very low risk
investments like cash and money markets investment up to 20 % can be allocated to
this fund.
Debt instruments: Max: 50
Money Market & cash : Min: 50%
36
b. choice to switch between investment options
1. 4 Free switches every year
2. Any switch beyond this limit will be charged at Rs. 100 per switch.
c. choice of Top-up
MORTALITY CHARGES:
This covers the cost of providing life protection for the insured and may be paid
once at the start of the policy or a recurrent manner (for example). This charge is
levied to provide the insurance cover under the plan. Normally these charges are 1-
year charges and keep changing as per the age of the policyholder.
These are normally expressed as- per thousand of the sum assured and depend on the
age of the policyholder. So, for example one would have the mortality charge as Rs
1.50 per thousand of SA for a 30 year old and Rs 1.55 for the age of 35 years. This
means that the cost of insurance of Rs 1000 at the age of 30 is 1.50, where the same
insurance cover costs Rs 1.55 at the age of 35 years.
All unit- linked products have a mortality charge table that is used to calculate the
life insurance cover charge on a yearly basis.
RIDER CHARGES:
Rider charges are similar in nature to the mortality charges as they are levied to pay
for the other protection benefits that the policyholder has chosen for-like the critical
illness benefit or the accident benefit, etc.
SURRENDER CHARGES:
When the policyholder decides to surrender the policy or partially withdraw some of
the units for cash, a surrender charge may be apply. Usually the surrender charges
only apply in the first few years after the units are invested and are usually on a
37
decreasing scale. Surrender charges are used to cover initial expenses that have been
incurred by the company but not yet recovered from the policyholder yet.
These charges can either be expressed as a percentage of the value of investments or
as a fixed flat charge, depending on the structure of the product.
So, the policyholder may have charge of 2% of the unit value as the surrender
charge or Rs 1000 as the surrender penalty.
Surrender charges usually apply to policies with high allocation, especially in the
first few years.
BID OFFER CHARGES:
In ULIP specifically certain insurers might create a difference in the price at which
they sell the unit and the price at which they buy the units.
Investor s contributions are used to buy units in the investment fund at the offer
price and are sold when benefits are required at the bid price.
The difference between the offer and bid prices is known as the bid offer spread ,
this is used to cover expenses when setting up the policy.
Bid-offer spread is expressed as a percentage of the NAV S and hence also becomes
a percentage of the value of units.
So for example a company has bid-offer spread of 5% and has an offer price of Rs
10 per unit. This means that the bid price would be 5% less and hence 95% of the
offer price, i.e. 95%*10=Rs9.50.
Hence a policyholder having 100 units in his investment would get Rs 9.5*100=Rs
950 as his value and if he has to but another 100 units he will have to pay Rs
10*100=Rs1000. This Rs 50 difference is the bid-offer spread.
Any fund which has a bid-offer spread would have 2 NAV s
buying and selling,
where as a fund which does not have bid-offer spread is a 1 NAV fund- same for
buying and selling.
38
TRANSACTIONAL SPECIFIC CHARGES:
These charges are levied when the client does some specifics transaction like
changing funds, topping up the investment component or withdrawals.
EXTRA PROTECTION :
Riders provide more protection to the policyholder and ULIP allows addition of
riders, at minimal cost.
The common riders that are attachable are
Death due to accident
Disability
Critical Illness
Surgeries
LIQUIDITY
This facility makes the ULIP a very practical insurance in current times. Most life
insurance plans do not provide the policyholder the facility of withdrawing money in
case the need arises.
Unit Linked Plans provide you easy access to your money as and
when you may require. One can redeem the units after a particular period of time as
defined by the plan, as per the need. ULIP allows either partial & complete
withdrawal, without penalizing the policyholder.
For example in the 6th year of your plan, you require 15000/- for
certain medical expenses that came up.
Your investment has been made in the balanced fund. If the current NAV of the
balanced fund is 15/-, then all you need to do is to sell 1000 units which will give
you 15000/-. The rest of the fund and the policy will continue normally as this is a
partial withdrawal.
39
If need be, the policyholder can withdraw all the monies in the funds
by redeeming all the units.Liquidity thus provided to the policyholder is immense
value in servicing the ever-changing needs of the client.
TAX PLANNING
Regulation in India allows tax benefits in the contribution paid under section
88.contribution paid for health riders (critical illness and major surgical) is allowed
tax benefit under section 80 D, as per the prevailing tax laws.
Maturity benefits are tax free under section 10 (10) d, provided the life cover is at
least 5 times of the annual contribution paid.
Death benefit is tax free under section 10 (10) d
With so many tax benefits available in one instrument - ULIP tends to be an
intelligent tax planning tool.
Premium:
1minimum 18000 annually
1. minimum 9000 semiannually
2. minimum 1500 monthly
40
7. ULIP AND INSURANCE COMPANIES
REASONS BEHIND SELLING ULIPS:
1. Over the last three years , the Indian equity markets have posted
handsome gains.
2. Insurer have been pushing equity based ULIPs.In 2004-05, the share of
Unitlinked premium for private sector players was 71 per cent.
It is investment in equity that offers tax free accumulation of wealth.
3. For insurer , equity ULIP makes sense as the capital they have to invest
the third to a quarter of what they would have to put up for a non-ULIP
policy with similar sum assured.
4. ULIP do not offer any guarantee on the capital invested or the returns.
5. Out of the investment risk and the risk that the insured will die, the
Insurer will bear only the later. So, the capital it needs to protect this
risk is correspondingly lower.
6. The insurance company makes the money as the cost of insurance,
brokerage and processing is charged up front.
7. Margins in the life insurance have not been stabilized and overheads for
most of firms are running ahead of plan, forcing them to push sales
of less capital intensive products.
8. Unlike traditional policies , in unit linked policy, pricing and expense
assumptions have to be fairly accurate as there is a much lower
chance of recouping the loss later. Once the charges are set for a policy
they can not be revised without IRDA approval.
9. Competition also putting pressure on the margins. Average margins on
ULIP are around 10 percentage point lower than those on conventional
insurance policies.
10. Most ULIP had allowed full premium holiday after three years and
large tax free withdrawals of the accumulated corpus as early as a year
after the policy is issued. This left the insurer with little time to recover
the high upfront costs and make a profit.
41
PROBLEMS FACED BY PRIVATE INSURANCE
COMPANIES
1. Capital Availability
2. High expense ratio:
1. One major is the high commission paid out to agents. At 40% of first-year
premium, it leaves the insurance company with only Rs. 60 for every Rs
100 it receives from the customers.
2. Cost incurred in training insurance agent
3. High attrition of agents.
4. Network of offices
5. Infrastructure
3. Competition with behemoth Life Insurance Corporation of India in
product
pricing and returns:
42
8. NEED TO CHANGE THE ULIP GUIDELINES
Unit Linked Insurance Policies (ULIPs) are gaining popularity because of the
versatile benefits it offers. Besides, the stock market is also booming. Nearly all
insurers have unit linked plans in the market today. In fact a new unit linked plan,
Jeevan Plus is soon to be launched by LIC.
ULIPs not only provide insurance protection against death but also
provide provision for long-term savings depending on its structure. Most investors
in these plans are however unaware or not totally informed about the pros and cons
of these policies. On the other hand there are several who are exploiting the
loopholes to earn a quick buck.
In an attempt to prevent investors from making short-term tax-free
gains in the stock market with ULIPs, IRDA is setting up certain guidelines.
According to these guidelines the sum assured will be a fixed percentage of the
premium collected. These guidelines will enhance the insurance content in ULIPs.
Under this new strategy a relatively larger proportion of premium will
have to be allocated for pure risk cover but this will leave a small amount for
investment in the units. Liquidity is an important feature investment, the reason for
which people buy ULIPs.
According to an industry analyst, ULIPs are sold more as investment
product than an insurance product. The new set of guidelines will regulate the way
in which these ULIPs are sold. It s left to see how these proposed changes will affect
the function of ULIP in market.
43
9. IRDA
As per the section 4 of IRDA Act' 1999, Insurance Regulatory and Development
Authority (IRDA, which was constituted by an act of parliament) specify the
composition of Authority
The Authority is a ten member team consisting of
(a) a Chairman;
(b) five whole-time members;
(c) four part-time members,
(all appointed by the Government of India)
Section 14 of IRDA Act, 1999 laysdown the duties,powers and functions of IRDA..
(1) Subject to the provisions of this Act and any other law for the time being in
force, the Authority shall have the duty to regulate, promote and ensure orderly
growth of the insurance business and re-insurance business.
(2) Without prejudice to the generality of the provisions contained in sub-section
(1), the powers and functions of the Authority shall include,
(a) Issue to the applicant a certificate of registration, renew, modify,
withdraw, uspend or cancel such registration;
(b) protection of the interests of the policy holders in matters concerning
assigning of policy, nomination by policy holders, insurable interest,
settlement of insurance claim, surrender value of policy and other terms
and conditions of contracts of insurance;
(c) Specifying requisite qualifications, code of conduct and practical training
for intermediary or insurance intermediaries and agents;
(d) Specifying the code of conduct for surveyors and loss assessors;
(e) promoting efficiency in the conduct of insurance business;
(f) Promoting and regulating professional organizations connected with the
insurance and re-insurance business;
(g) Levying fees and other charges for carrying out the purposes of this Act;
(h) calling for information from, undertaking inspection of, conducting
44
Enquiries and investigations including audit of the insurers,
intermediaries, insurance intermediaries and other organisations connected
with the insurance business;
(i) control and regulation of the rates, advantages, terms and conditions that
may be offered by insurers in respect of general insurance business not so
Controlled and regulated by the Tariff Advisory Committee under section
64Uof the Insurance Act, 1938 (4 of 1938);
(j) specifying the form and manner in which books of account shall be
maintained and statement of accounts shall be rendered by insurers and
other insurance intermediaries;
(k) regulating investment of funds by insurance companies;
(l) regulating maintenance of margin of solvency;
(m) adjudication of disputes between insurers and intermediaries or insurance
intermediaries;
(n) supervising the functioning of the Tariff Advisory Committee;
(o) specifying the percentage of premium income of the insurer to finance
schemes for promoting and regulating professional organizations referred
to in clause (f);
(p) specifying the percentage of life insurance business and general insurance
business to be undertaken by the insurer in the rural or social sector; and
(q) exercising such other powers as may be prescribed
45
10. CHANGES IN ULIP MADE BY IRDA
CHANGES
1. In LifeTime one had to pay premium for three years and they one could take
premium holiday.
2. In LifeTime Super one has to pay premium for at least 5 years and then he
can draw amount after 3 years systematically.
3. In Life Time Plus, it includes one more benefit of settlement option. In this
Option, one can opt to get payments yearly, halfyearly, quarterly or monthly
through ECS way for a period of 1, 2,3,4,5 yearly, and post maturity.
4. Surrender values after 3,4,5,6,7 years are different for LifeTime Plus and Life
Time Super.
NEWS ABOUT ULIP
1 .Insurace companies have not shield away from investing in unit linked
insurance policies even after the recent stockmarket meltdown.
2. ICIC Prudential continues to invest in ULIPs that constitute nearly 50%
of the funds under it s management.
3. Nearly 85% of the new business premium of the company went towards
equity.
4. During recent volatility in the stockmarket, customers took advantage of
the switch option.
5. ICICI already had policies with the mandated 3-year lock-in period even
before the regulator stipulated the lock-in.
46
HOW IS UNIT VALUE CALCULATED?
A
Unit Value = ----------
B
A = Market /Fair Value of the relevant Plan s Investment Plus Current
Assets Less Current Liabilities and Provisions.
B = Number of Units outstanding under the relevant Plan
The Average Unit Value is the average of the value of the daily fund value of
the preceding the date of additional allocation.
47
PERFORMANCE OF ICICI S ULIP
Date Balancer
Fund
Protector
Fund
Maximiser
Fund
27-Mar-06
21.59 14.1556 39.98
24-Mar-06
21.47 14.1466 39.44
23-Mar-06
21.40 14.1439 39.10
22-Mar-06
21.39 14.1398 39.00
21-Mar-06
21.43 14.1379 39.22
20-Mar-06
21.42 14.1342 39.20
17-Mar-06
21.38 14.1267 39.02
16-Mar-06
21.41 14.1240 39.15
14-Mar-06
21.34 14.1184 38.86
13-Mar-06
21.34 14.1158 38.88
10-Mar-06
21.29 14.1088 38.71
9-Mar-06 21.12 14.1104 37.99
8-Mar-06 21.10 14.1070 37.92
7-Mar-06 21.25 14.1039 38.62
6-Mar-06 21.23 14.0989 38.55
3-Mar-06 21.08 14.1130 37.85
2-Mar-06 21.10 14.1255 37.85
1-Mar-06 21.03 14.1352 37.53
48
COMPETITION FACED BY ULIP PRODUCTS.
1. Competition has forced some companies to offer a guaranted return on their
policies, or to at least guaranteed return on their policies, or to at least
guarantee the amount invested. That makes ULIPs similar to endowment
schemes.
2. But unlike traditional policy where the insurer gets to keep part of the
Returns it earns beyond the guaranteed returns(if any), for ULIP the upside
Is limited to annual charges of 1-3 per cent of the NAV.
3. Insurance companies are also facing the heat from mutual funds (MFs),
which are offering similar products. One ULIP like product charges 5 per
cent entry load compared to the 10-15 per cent on ULIP policies, which
place limits on free switches between schemes(equity, balanced or debt),
and houses allow investors to switch freely between schemes whenever
they want without any penalty.
4. With MFs offering similar products at lower entry load , the pressure on
ULIPs to further reduce charges will intensify.
5. Investor who get insurance cover merely by signing a declaration of good
health in a MF scheme face 3-4 times the risk of their claim being denied as
compared to those who have bought insurance cover after undergoing a
medical check-up, as mandated by most insurers directly.
49
COMPARING PURE INSURANCE WITH ULIPS
It is illustrates the outgo for individual investors for a term plan and a ULIP. The
term plan outgo covers just insurance and will pay back the sum assured of Rs.10
lakhs only in the case of death and there will be no premium returned at the end of
the tenure. In contrast, the same amount of cover requires Rs.10,000 as premium in
the case of a ULIP and the returns depend on the performance of the fund corpus
chosen by the investor.
This is where differentiating between insurance and investment needs
come into play. An individual investor would be better off investing in mutual funds
depending on the individual risk profile, whereas the insurance company does not
provide so many options. This way he has clearly segregated two distinct
requirements, contingency and earning returns, through dedicated instruments
without making a compromise.
EXPECTED TRENDS
The industry will grow at a galloping rate. More and more people will buy insurance
now that the ULIP includes returns along with safety. Business Monitor research
forecasts Indian insurance sector to grow at 8-10% over the next 10 years. Given the
low penetration and low awareness about insurance, the growth potential is
phenomenal. This gives the private players ample space to grow mainly at the
expense of LIC and at higher growth rates than projected above.
While the average premium per policy will go up, the average term of
life cover might reduce. Again the reason would be ULIP. Prospective policy
holders seem to prefer the ULIPs of private insurers as they can exit in a shorter
term. They seem willing to take short-term risks, whereas in the case of traditional
policies they favour LIC. The companies proclaim the provision of flexibility of
switching between the fund options depending on market performance, life stage and
risk profile of the customer. But the real reason for the private sector to push ULIP
is the shift of the investment risk (and return) to the policyholders. This in turn
50
reduces the burden on the bonus payout and the provisions towards solvency norms.
It is also much easier to sell a higher return plan where you can paint a rosy picture.
But ULIPs, like all life insurance policies, are long-term instruments and must be
bought with that time frame in mind. The customer will not benefit from a ULIP if
he holds it for a short period. Broadly, the units are invested in equities and debt
instruments which carry an element of risk. Research forecasts suggest that equity
investments yield rewards in the long term rather than in the short term due to
market imperfections. Entry and exit of investments into ULIPs eventually exposes
the investors to market timing or short term risks.
ULIP will dominate the market in the short and medium term.
However, in the long term, pure insurance will grow faster as more and more
investors use professional services from financial planners for their investment
goals. In the developed world, insurance and investment are two different objectives
and not put in the same basket. As the local market matures, people will realize this
and move on to segregate the two objectives into separate products. The current
hybrid nature of the product defeats one of the objectives completely, as people exit
the market very early, thus giving it a speculative aspect. The ULIP may be offered
to certain customers who think the insurance company's investment policy matches
their own requirements.
Channel Innovations like Bancassurance (A tie-up with banks to sell
insurance products through bank branches and channels) will increase the
penetration. As more and more insurance companies realize the strength of the
bank's reach, Bancassurance is likely to pick up. Estimations of the market size are
difficult to make, but industry experts quote the depositor base as one indicator,
which is huge.
Financial planners will become the preferred intermediaries. As the
quality and quantum of offerings improve, there will be a need for specialized
planners to guide investors. This would be different from the agents tied to specific
insurance companies. Financial planners are people who take a comprehensive
approach to assess the individual's financial need, history and risk appetite and
suggest the best from the alternatives available. As this consultancy becomes
51
independent of the agency, companies will have to improve their offering and the
value offered to the consumer. So the competition will not just be between brands
but across categories.
In the future, private insurers will definitely make further inroads into
LIC's market share. LIC's share has moved from a monopoly to 74% in five years
since the insurance sector was opened up for private players. ICICI Prudential (7%)
has the highest market share among private players followed by Bajaj Allianz,
HDFC Standard Life and Birla Sun Life. With per capita insurance at US$ 9 in India
against US$ 2,500 in US, the industry offers tremendous growth prospects, which is
justified by the presence of all global insurance majors in India. The total value of
the Indian insurance market is estimated at US$10 billion. Will it evolve into a
system similar to that of the western world? That is a something only time will tell.
52
11. SWOT ANALYSIS OF UNIT LINKED PRODUCT
STRENGTHS
1. Strength of ULIPs is that the customer gets the advantages ob both
insurance and mutual fund investment in a single contract.
2. They are simple, clear and easy to understand.
3. They provide opportunity for higher returns.
4. They provide wide fund options to choose from depending on the
policyholder s risk profile that include equity, debt, gilt and money
market.
5. These life insurance plans come with a 15-day free look, which allows
you to return the policy if you believe it does not meet your needs or
expectations.
6. They offer flexibility to the policyholder to enter, exit or withdraw at
their convenience.
7. The sum assured in ULIPs is guaranteed, irrespective of market
swings.
8. They offer tax rebate under section 88 with a tax free dividend.
53
WEAKNESSES
1. ULIP does not offer any life as well as accident cover to minors.
2. ULIP costs are bit higher than mutual funds.
3. The returns announced by most companies on ULIPs are on net
premium (i.e. gross minus all expenses) and not the actual premium
paid by an investor.
4. Customer has to wait for liquid the amount as lock in period is 3years
5. The premium required to pay is high
6. Traditional approach that money get to the insurers nominee not
himself.
7. For taking decision of switching in ULIP the person requires
conceptual knowledge about financial market.
8. ULIP takes very high charges in first year.
OPPORTUNITIES
1. The product could have sectorial investment option like mutual fund.
2. There is a very large untapped market in rural area.
3. They can make foray into booming investment options like Realty
sector, gold
. 4. They can have large customer base
THREATS
1. Tax saving mutual fund schemes
2. IRDA levies strict norms.
3. Volatility of the Sensex, which changes the mindset of the
people
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12. MARKET RESEARCH
METHODOLOGY
QUESTIONNAIRE DESIGN
The questionnaire is to be prepared so as to systematically guide the respondent
through the desired path. Questionnaire should be such that respondent finds it
interesting to answer.
Based on the observational study, a questionnaire was designed to cover all aspect
of ones investing pattern.
The questionnaire prepared has the following things:
1. The questions would be understood by the recipients
2. The layout was simple to follow and easy to use.
3. The questionnaire length was not too excessive.
4. The questionnaire was mostly multiple types of questions so that
recipient will not have any problem while filing it.
SAMPLING TECHNIQUE
The basic idea of sampling is that by selecting some of the elements in a population
we may draw conclusions about the entire population. A population element is the
subject on which the measurement is being taken. A population is the total of
elements about which we wish to make inferences. The ultimate test of a sample
design is how well it represents the characteristics of the population it supports to
represent. In measurement terms the sample must be valid. Interview method was
used to fill the questionnaire. This is in fact, known as Schedule technique.
Schedule is the name usually applied to set of questions, which are asked and filled
in by the investigator in face-to-face situation with other person. The replies given
were filled in the questionnaire. Since all the data was available in written form,
tabulation of data and analysis became easy.
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The other advantage of schedule is that, it specified the object of
inquiry clearly because questions were asked directly and the subject information
was collected about that alone.
1. Sample size: 150
2. Target group: Professionals like salaried and self employed people
3. Location: all urban and sub urban regions in Pune.
METHODS OF DATA COLLECTION
INTERVIEW METHOD
The interview method of collecting data involves presentation of oral verbal stimuli
and reply in terms of oral verbal responses. This method can be used thought
personal interviews and if possible through telephone interview.
PERSONAL INTERVIEW:
First the interview of the person took for collecting the data; the area covered is all
over Pune, through urban to sub urban area, then standard questionnaire filled.
TELEPHONE INTERVIEW:
This method I used for persons to whom I know generally relatives, friends. As
questionnaire contains mainly multiple choice questions so this method found very
time efficient.
MAILED QUESTIONNAIRE:
The mail questionnaire is the best way to reach people who would not give personal
interview. The people whose email ids were available were send e-mail and request
was made to fill at convenience time.
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13. RESEARCH ANALYSIS AND FINDING
METHODOLOGY OF THE ANALYSIS:
((i ) Obtain data on their demographics
(ii) Compare individual investors according to their income, risk taking
ability and their perception towards financial companies.
(iii) It also try find out the significant changes in the investment pattern of
the professionals in the recent period
(iv)Investigate the investment decision making processes used by such
investors.
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ANALYSIS AND FINDINGS
DEMOGRAPHIC STUDY
i) MALE
FEMALE PARTICIPATION:
Following response I got after research:
Fig.1
The research was taken place in the most of the area of Pune there were
largely male take the decision of investment and I interviewed females who were
married.
Classification according to their Gender
71%
29%
M
F
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II) MARITAL STATUS
Following figure shows the respondents were mostly equally distributed between
married and unmarried..
Fig 2
iii) CLASSIFICATION ACCORDING TO THEIR AGE:
Following response I got after research:
Fig 3
Classification According to Age
75%
13%
9%
3%
20-30
30-40
40-50
>50
Classification According To Their Marital Status
43%
57%
SM
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As our target was to include most of the youth person as they are in the start of
carried and they have to fulfill lot of responsibilities ahead of their life, so we
targeted majority of youth in the research. As the younger age professionals spend
more on luxuries so it was very essential for company to their investment pattern so
mostly age within 20-30 years who just started earning are covered in the survey.
iv) CLASSIFICATION ACCOURDING TO
EDUCATIONAL QUALIFICATION
Following response I got after research:
Fig 4
As survey was conducted to find out the investment pattern of professionals so
most of the people interviewed were graduates and post graduates.
Classification According To Their Edu.Qualification
3%
59%
38%
HSC
GD PG
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v) WHERE THEY INVEST:
When they were asked about where they invest the following Portfolio
composition I got.
Fig 5
Here I put insurance as separate as LIC not any private insurance companies
included in that. As I was mostly checking ULIP s composition in their portfolio so
I put it separately.
As we can see majority of people wanted security for their hard earned money so
insurance was the easy option for them.
Their PORTFOLIO COMPOSITION
9%
53%
18%
9%
7%
4%
EQTY
INSURA ULIP
MF R.E NSC
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VI) MAJOR REASONS FOR YOUR INVESTMENT OPTION:
Following response I got after research:
Fig 6
When they asked about to give priority to reasons they invest I had given them many
options the most of the people told that they invest due to security for their hard
earned money. Afterwards they look their investment option to have good return and
tax benefit.
Reasons Behind Choosing The Investment Option
31%
8%
32%
25%
4%
Return
Liquidity
Security
Tax sav Flexible
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VII) WHEN THEY ASKED WHETHER THEY INVEST IN HIGH TO LOW
RISK FUNDS:
Following response I got after research:
Fig 7
The most people interviewed where young and were software professionals so most
of them have moderate and high risk, these shows that they are ready to invest in
high risky funds in their future.
Risk while choosing investment option
23%
16%
61%
High Low Mod.
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viii) WHEN THEY ASKED ABOUT THEIR SAVING DIRECTED TOWARDS
WHICH OF THE FOLLOWING OPTIONS:
Fig 8
Majority of people believes in retirement needs is most important, supporting of
education of children and buying their dream house come later. So it gives signals
for the companies to generate schemes which will fulfilled retirement needs,
education of children s etc.
Reasons Behind The Saving
23%
19%
13%
18%
18%
9%
Meeting retirement
Needs Supporting edu. of
Children Daughter s marriage
Buying house
Buying vehicle
Other
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ix) WHEN THEY ASKED, HAVE U TAKEN ANY ULIP POLICY:
The following figure shows the distribution of ULIP policyholder in the research.
Having Any ULIP Policy
18%
82%
YES
NO
Fig 9
The following response I got, when they were asked above question. The figure
shows there is still large untapped market for the ULIP, which will be very suitable
for the fulfilling the investor s needs.
x) AWARENESS AMONG PEOPLE ABOUT ULIP
Awareness Among people About ULIPs
49%
51%
KnowDon t Know
Fig 10
Percentage of people who know ULIP: 49%
Percentage of people who do not know ULIP: 51%
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Xi ) AWARENESS AMONG PEOPLE REGARDING CHANGES
MADE BY IRDA
Awareness Regarding Changes Made By IRDA
26%
74%
Aware
Not Aware
Fig.11
People who are aware of the changes made by IRDA: 26%
People who are not aware of the changes made by IRDA: 74%
xii) AWARENESS AMONG PEOPLE REGARDING ICICI PRUDENTIAL
LIFE INSURANCE COMPANY.
Awareness Regarding ICIC Prudential Company
75%
25%
Heard Not Heard
Fig.12
People heard about ICICI Prudential Life Insurance company: 75%
People have not heard about ICICI Prudential Life Insurance company: 25%
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Xiii ) PROPORTION OF POLICIES IN THE MARKET
(with respect to this sample)
Proportion Of Policies In Market
94%
6%
LIC
Other
Fig.13
People having policy of LIC: 94%
People having policy of other company or no policy but not LIC: 6%
Xiv ) PEOPLE HAVING ICICI PRUDENTIAL LIFE INSURANCE POLICY
People Having ICICI Life Insu. Policy
15%
85%
ICICI Pru
Other
Fig 14
People having only ICICI Prudential Life Insurance policy: 15%
People having other than ICICI Prudential and no policy: 85%
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14. DEALING WITH CLIENTS AND THEIR DOUBTS
1. The client has some apprehensions , doubts , questions in his mind
before he wants to invest his money with us
2. It is important for one to be sure before investing his money.
3 These questions have to be encountered in a way that the client develops
full faith and belief in ICICI Prulife.
TYPES OF OBJECTIONS
1. Pre approach:
Before advisor talks about the product.
2. Sales Interview:
During the selling process to convince the client.
3. Closing
1. When any one talks about the concept of the product, it is Preappoach.
2 . When we talk about Product , price and company, it comes under sales
interview.
3. When we talk about personal issues and service it comes under
closing.
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DOUBTS RAISED BY CLIENTS
1. The client does not want to deal with this subject insurance.
2. Clients did not like the product either because they already have
insurance policy.
3. Some clients found charges higher than others.
4. The client did not want to the deal with this company because it is a
private insurance company.
5. The customers were doubtful about good after sales service.
HOW CAN AN ADVISOR MAKE CONVINCE HIM TO BUY
POLICY?
By telling them features of insurance policy and it s importance in life.
1. Regular saving
2. Assuarance of good education of child
3. Provision for important events in life.
Some people said that they do not need it.
My job was to create need for life insurance in their mind by telling them that life
insurance is bought for future benefit.
Some people were having insurance policies.
Here I did not explain what is policy and it s importance. All I had to do is to find
he whether insurance cover is enough or not.
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Some people said that returns are less compared to other financial
Instruments.
A customer is able to structure his policy because of it s flexibility. A customer can
choose his investment plan in market related policies. The returns which are earned
are tax free under section 80 c. Any amount paid to you in form of withdrawals or
other benefits will be eligible for tax benefits under section10(10D).
Some people wanted to have guaranteed returns as endowment scheme.
No player is offering guaranteed returns in market related policy.If any one looks
for that then he will lose flexibility offered by them.
Clients asked whether they can choose companies to invest their money
ICICI Prudential has fundmanagers who work with professional team and the
research team does all research.
Some companies do not have charge
These charges take care of administrative expenses; underwriting the policy,
marketing expenses, stamp duties etc. All are approved by IRDA. Others do not
disclose.
Some people said that it is a private company.
Company follows the rules set by IRDA which monitors the business of insurance.
Investments are done as per IRDA guidelines. ICICI is strong financial institution.
What about service offered by company.
Company follows strict quality measures.Every process is followed by certain
guidelines.
One has already utilised tax benefits which is 1lac.
Only tax benefit can not be the reason to take life insurance policy.
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THESE REASONS HELP THE CLIENT TO DECIDE BUY
UNIT LINKED PRODUCTS:
1. Higher surrender value
2. Less administrative charges
3. Market linked / switch options
4. Potential of higher returns
5. Premium holiday
6. ICICI Brand Power
7. Tax saving
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LifeTime Regular
Part of the premium towards the policy
expenses
Allotment of UNITS
Allocated Premium
Insurance Charges
This goes to your Protection A/c to provide you with the
cover against the 3D effect of Death, Disability and Dreaded Diseases.
Units that build up your investment value.
Various Investment Options, Facility of
withdrawals and investing back in
your investment A/c
ASSET CREATION WITH LIFETIME
14.4
How LifeTime is better than traditional insurance?
You create your own value and in the long-run this turns out to be cost-effective
Value for your investment depend upon the bonuses declared by the company
Total control over your investments-with the choice of investments.
Control over the investments is restricted and the returns are not in your hands
Total flexibility and control on your policy, choose the level of protection as per your life stage.
No flexibility to adjust Your protection level with your changing Life stage needs.
ICICI Pru LifeTime Traditional Insurance Product
This is your investment A/c. The units that are bought with the premium, which you have paid, first take care of your protection and then the remaining amount is put into your investment account. Here you have various options of investments as per your choice and priorities. This is the account where your money grows
over a long period of time.
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FINDINGS:
1. Market is dominated by LIC as all people do have LIC policy.
2. Women are not having insurance policy or do not show interest to know it.
3. There are many people who do not know anything about unit linked plan.
4. Many people who know about the unit linked plan is because of the marketing
strategy followed by the companies. They know it through advisors of the
company and circulars distributed by investment firms.
5. People who come under high income group have unit linked plan.
6. People who do not belong to high income group have endowment schemes and
they do invest in equities but as per their convenience.
7. These people want to have total control on their investment or wanted to have
guaranteed income.
8. Out of 150 people only 39 were aware of changes made by IRDA. It was again
because of the market strategy followed by insurance companies. Companies
wanted to sell more policies by assuring maximum benefit before changes were
implemented.
9. People know ICICI Prudential Life Insurance company either through friends or
others (wallpapers , circulars, advisors).
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15. TAPPING OF POTENTIAL INVESTORS
THE SIX STEPS FOR THE SALE OF PRODUCT
The following six guidelines for effective selling every salesperson
has to follow for getting good results
Prospecting and Qualifying
Pre-approach
Approach
Presentation and
demonstration
Overcoming objections
Closing
Follow-up and maintenance
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PROSPECTIVE AND QUALIFYING
The first step in selling is to identify and qualify prospects. More companies are
taking responsibility for finding and qualifying leads so that salespeople can use
their expensive time doing what they can do best: selling.
Company can qualify the leads by contacting them by mail or phone to assess their
level of interest and financial capacity. The leads can be categorized, with hot
prospects turned over to the field sales force and warm prospect turned over to the
telemarketing unit for follow-up.
PREAPPROACH
The salesperson needs to learn as much as possible about the prospect company
(what it needs, who is involved in the purchase decision) and its buyers (personal
characteristics and buying sales). The salesperson should set call objectives: to
qualify the prospect, gather information. He can make personal visit, a phone call.
As a salesperson of ICICI Prudential one should understand the above prospects
very well.
In my case I made list of contacts I had to visit and then I called people and took
their appointment for explaining the product. Some places I made directly visit and
then took their appointment at specific time.
PRESENTATION AND DEMONSTRATION
The salesperson now tells the product story to the buyer, following AIDA formula of
gaining attention, holding interest, arousing desire and obtaining action. The
salesperson uses a features, advantages, benefits, and value approach.
To get the good result salesperson should stress on benefit and value i.e. a customer
orientation not more on future of the product, i.e. product orientation.
As a salesperson I made presentation in the understandable language and make
person feel comfortable, holding his interest in product and adding some emotional
factors as the product was life insurance policy. Explained how this product will be
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helpful for him and his family in terms of investment as well as in gaining life
cover.
OVERCOMING OBJECTIONS
Customers typically pose objections during presentations, these objections may
because neurotic attitude towards money.
To handle these objections the salesperson should maintain positive approach, asks
the buyer to clarify the objections. And turns the objections in to reasons for buying.
CLOSING
Salespeople need to know how to recognize closing signs from the buyer, including
physical actions, statements or comments and questions.
Salesperson of ICICI Prudential should use techniques like asking for directly
premium or started filling forms or asking for their documents.
FOLLOW- UP AND MAINTAINANCE
Follow-up and maintenance are necessary if the salesperson wants to ensure
customer satisfaction and repeat business
The salesperson should ensure that whether policy logins has been reached to the
customer and he should call the customer whether he is happy with the purchasing
and any objection if he has, salesperson should clarify that to grow the business
because one satisfied customer wil provide more customers
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METHODOLOGY ADOPTED
1. First made the list of contacts I had to visit.
2. Took their appointment at their convenience time.
3. First found about their income, risk appetite etc.
4. According to that explained the life time product in a way to attract the
customer
The consumer passes through a five-stage process of buying decision.
Problem recognition
Information search
Evaluation of alternatives
Purchase decision
Post purchase behavior
PROBLEM RECOGNITION:
The buying process starts when the buyer recognizes a problem or need.
The need can be triggered by internal or external stimuli. As you know
uncertainty in today s life is very high, u can see the bomb blasts, any
natural calamites that lead to make person think about him and family
members. In my discussion with potential customers as a marketer I tried to
correlate this issues with my investment option that I had to explain to
them, so that I could trigger need in the persons mind.
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INFORMATION SEARCH:
An aroused consumer will be inclined to search for more information. The
information source falls into four groups :-
1. Personal : family, friends, & acquaintances
2.Commercial : advertising, web sites, sales persons, displays
3. Public : mass media, consumer rating organization
Generally speaking, the consumer receives the most information about a
product from commercial sources. However, the most effective information
often comes from personal sources.
So ICICI Prudential should concentrate on increasing its visibility through
print ads & media ads. And they should focus on increasing its visibility
amongst present customers by good post purchase service which is most
effective.
Total set of brands available to the consumer. The individual consumer will
come to know only a subset of these brands ( awareness set ). Some brands
will meet initial buying criteria ( consideration set ). As the consumer
gathers more information, only a few will remain as strong contenders (
choice set ). The consumer makes a final choice from this set.
EVALUATION OF ALTERNATIVES :
Some basic concepts to understand consumer evaluation process. First, the
consumer is trying to satisfy a need. Second, the consumer is looking for
certain benefits from the product solution. Third, the consumer sees each
product as a bundle of attributes with varying abilities for delivering the
benefits sought to satisfy this need. Consumers will pay the most attention
to attributes that delivers the sought after benefits.
At this stage customer think about the various aspects like security for
their money, good returns ,liquidity so company should focus on these
issues
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PURCHASE DECISION :
In the evaluation stage the consumer forms preferences among the brands in
the choice set. The consumer sets a minimum acceptable cut-off level for
each attribute & chooses the first alternative that meets the minimum
standard for all attributes or he chooses the best brand on the basis of the
perceived most important attribute
These understanding are very much essential by the sales executive of
ICICI Prudential .He/She should help in the decision process to the
customer. He can add emotional factors which leads to the trust between
them so that customer can persuade to buy early.
POST PURCHASE BEHAVIOR:
After the purchase, the consumer might experience dissonance that stems
from noticing certain disquieting features or hearing favorable things about
other brands. Marketing communications should supply beliefs &
evaluations that reinforce the consumer s choice & help him or her feel
good about the brand. So the sales team should not just end up at this stage
rather they should try to develop better customer relationship through
occasional calling up the customer & finding out if he has any kind of
problem. Moreover the role of the after sales team is also of vital
importance at this stage. As one good customer can fetch u many customers
by their word of mouth.
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16. CONCLUSION
As the project does the research on investment pattern of professionals, in which it
clarifies that most of the time male takes the investment decision of investment. It is
also found out that the younger are more risk taker than middle age group persons.
Most of the people give preference to security over return and other benefits. The
most of the people are moderate in nature as their portfolio composition also shows
moderate composition of mutual fund and equity investment options.
All these aspects could be helpful for the company to design new
investment options. There is also pointed out that, there is large untapped market
remained for ULIP, which is a very hot investment option nowadays.
Selling which is one of the most important jobs in any company. As
intangible product like life insurance policy one has to give tangibility to them.
Adding emotional value to the product can create trick.
It is also pointed out that company should have product line, which can match the
person s needs effectively.
As relationship marketing is the major source of the getting income in
the life insurance sector, so it is very necessary to satisfy the present customers by
giving them good service in all aspects.
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17. RECOMMENDATIONS
They should focus more on rural area, where the large untapped market is
present.
They should increase their physical presence; they should increase their
network.
Electronic Clearance Facility should be available most of the cities, which
will be helpful for the customer for quick delivery of payments.
Policy login period should have minimum period; customer should get policy
papers, which can build trust amongst the customers.
They should increase bancassurance that will helpful in getting more
customer base of small and medium sized banks.
They can make foray into new investment options like realty sector, precious
metals like gold etc.
They can target customers like teachers, bank clerks, which income range
around 10k and they have to it return by the end of March month, they can
target in this segment on particular period.
As the research shows that there is necessary for the insurance of the
daughter s marriage, which is one of the biggest burden of the parents. As
there are large customer base that can take it, so insurance companies should
look towards these option.
Thy can attract NRI customers as NRI could avail this facility as their another
property in India, they can take it for their parents, children etc.
Company can use recent bomb blast scenario in Pune to create the awareness
amongst people to insure themselves and protect their family.
More than three-fourths of India's insurable population has no life insurance,
pension cover and post-retirement protection cover. They should focus on this
area.
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18. BIBILOGRAPHY
Websites visited:
www.irda.com
www.investopedia.com
www.insuranceonline.com
www.bussinessindia.com
www.imag.com
www.google.com
Book referred:
Intelligent investors
Philip Kotler- Marketing Management
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19. ANNEXURE
QUESTIONNAIRE
AWARENESS REGARDING ULIP S AND CHANGES MADE BY IRDA
Name: _________________________________________________ Address: _____________________________________________________ ________________________________________________________ Phone: ______________________
1) Gender: Male Female
2) Marital Status: Single Married
3) Age: 20-30 30-40 40-50 >50
4) Educational Qualification: HSC Graduate Post Graduate
5) Your way of Investment: Equity Insurance ULIP
Mutual Funds Real Estates Other
6) Major reasons for your investment option : Return liquidity
Security Tax saving
Other
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7) Have you heard ICICI PRUDENTIAL LIFEINSURANCE COMPANY:
Yes
No
8) In Which Kind of fund you invest? High LOW
MODERATE
9) Your Saving directed towards which option? Meeting retirement needs
Buying house Buying vehicle Supporting edu of children
Daughter s marriage
10) Have you heard about ULIP? Heard Not Heard
11) Have U Taken Any ULIP Policy? Yes
No
12) Which policy did you take? LIC Other
13) Did you take ICICI Prudential Life Insurance Policy? Yes No
14) Did you know changes made by IRDA in ULIP? Yes No
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