birla life insurance

8/10/2019 Birla life insurance

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Birla Sun Life Insurance

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PROJECT REPORT ON

STUDY OF PRODUCT PORTFOLIO

OF

SUBMITTED BY:

A report submitted i p!rti!" #u"#i""met o# BBA pro$r!mme !t

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AC%NO&LED'EMENT

We would like to express our sincere gratitude and thanks toMr(

R!)es* R!o, Agency Manager, Bir"! su "i#e isur!+e "td,

J!ipur for giving us the guidance. We owe everything we have

gained from the project in terms of knowledge and experience to

them, as without their timely support and encouragement the

project would not have een as fruitful as it has een.

We also thank Mr(As*-i s!.e! for his constant encouragement

and guidance at every stage of this project, acting as my faculty

guide. !e has een kind enough to spare his valuale time and

share his corporate experiences, which helped me to approach the

project in the right way.

We are grateful also to the entire staff of "irla sun life insurance ltd

who helped us to collect the relevant data and get the real gist of

current scenario.

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We would also like to extend sincere thanks to few people who

were not part of our project ut without their help things would not

have een as easy as they were.

T/AN% YOU ALL

B*!-!r "!" 0um!-!t1BBA 2dYe!r3

$arishkar college of %loal

&xcellence.

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CONTENTS

4( (ntroduction to insurance

5

#. )undamental principles of insurance

*+

'. -easons for taking a life insurance policy

+10

/. ision, Mission, alues

11

. 2ompany $rofile

1#+1*

*. 3ales $rocedure

14+1

4. 2ompany5s $roducts

1+'/

4.1 )lexi $lans

4.#2lassic 6ife $remier

4.' %old plus (( $lan

4./ 3upreme 6ife $lan

4. $latinum plus $lan

. )unds y "36(

'/+'

11. 2onclusion

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1#. -ecommendation

/1

1'. "iliography

/1

1/. Annexure

/#+//

6Isur!+e, in law and economics, is a form of risk

management primarily used to hedgeagainst the riskof a

contingent loss. (nsurance is defined as the e7uitale

transfer of the risk of a loss, from one entity to another, in

exchange for a premium. An isureris a company selling

the insurance. 8he isur!+e r!te is a factor used to

determine the amount, called the premium, to e charged

for a certain amount of insurance coverage. -isk

management, the practice of appraising and controlling

risk, has evolved as a discrete field of study and practice.9

8he evolution of human eings from the primordial :wild5

stage to the :cave dwelling5 stage is nothing ut their saga

of search for security. 8heir 7uest for security is eternal.

6ife insurance is a device invented y them to seek securityagainst the most important ha;ards against which they

found themselves 7uite helpless. (t will not e an

exaggeration to say that progress of civili;ation is due to

human eings5 unending pursuit for security.
http://en.wikipedia.org/wiki/Lawhttp://en.wikipedia.org/wiki/Economicshttp://en.wikipedia.org/wiki/Risk_managementhttp://en.wikipedia.org/wiki/Risk_managementhttp://en.wikipedia.org/wiki/Hedge_(finance)http://en.wikipedia.org/wiki/Riskhttp://en.wikipedia.org/wiki/Risk_managementhttp://en.wikipedia.org/wiki/Risk_managementhttp://en.wikipedia.org/wiki/Lawhttp://en.wikipedia.org/wiki/Economicshttp://en.wikipedia.org/wiki/Risk_managementhttp://en.wikipedia.org/wiki/Risk_managementhttp://en.wikipedia.org/wiki/Hedge_(finance)http://en.wikipedia.org/wiki/Riskhttp://en.wikipedia.org/wiki/Risk_managementhttp://en.wikipedia.org/wiki/Risk_management


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6ife insurance in its modern form is a western concept.

Although it started taking shape since last '00 years, it

came to (ndia with the arrival of the &uropeans .the first life

insurance company was estalished in (ndia in 11 as

oriental life insurance company mainly y &uropeans to

provide for widows of &uropeans. 8he companies that

followed mainly catered to &uropeans and charge extra

premium on (ndians lives. 8he first (ndian company,

insuring (ndian lives at standard rates, was "omay mutual

life insurance company, which was formed in 140.this was

the year also when the first (nsurance Act was passed y

the "ritish parliament. 8he years suse7uent to the

3wedishi Movement saw the emerging of several insurance

companies.

8he end of the year 1, there were #/ insurance

companies and provident societies out of which 1* were

non+(ndian companies. 8hese companies were nationali;ed

in 1* and rought under one umrella < the life insurance

corporation of (ndia, which enjoyed monopoly of life

insurance usiness, till almost up to the end of year

#000."y enacting the (-=A Act #000,the government of

(ndia effectively ended 6(25s monopoly and opened the

doors for private insurance companies

FUNDAMENTAL PRINCIPLES OF

INSURANCE

Some use#u" terms i Isur!+e:

A3 INDEMNITY

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A contract of insurance contained in a fire, marine, urglary

or any other policy excepting life assurance and personal

accident and sickness insurance> is a contract of indemnity.

8his means that the insured, in case of loss against which

the policy has een issued, shall e paid the actual amount

of loss not exceeding the amount of the policy, i.e. he shall

e fully indemnified. 8he oject of every contract of

insurance is to place the insured in the same financial

position, as nearly as possile, after the loss, as if his loss

had not taken place at all. (t would e against pulic policy

to allow an insured to make a profit out of his loss or

damage.

B3 UTMOST 'OOD FAIT/

3ince insurance shifts risk from one party to another, it is

essential that there must e utmost good faith and mutual

confidence etween the insured and the insurer. (n a

contract of insurance the insured knows more aout the

suject matter of the contract than the insurer.

2onse7uently, he is duty ound to disclose accurately all

material facts and nothing should e withheld or concealed.

Any fact is material, which goes to the root of the contract

of insurance and has a earing on the risk involved. (t is

only when the insurer knows the whole truth that he is in a

position to judge

?a> Whether he should accept the risk and?> What premium he should charge.

(f that were so, the insured might e tempted to ring aout

the event insured against in order to get money.

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C3 Isur!b"e Iterest + A contract of insurance affected

without insurale interest is void. (t means that the insured

must have an actual pecuniary interest and not a mere

anxiety or sentimental interest in the suject matter of the

insurance. 8he insured must e so situated with regard to

the thing insured that he would have enefit y its existence

and loss from its destruction. 8he owner of a ship run a risk

of losing his ship, the charterer of the ship runs a risk of

losing his freight and the owner of the cargo incurs the risk

of losing his goods and profit. 3o, all these persons have

something at stake and all of them have insurale interest.

(t is the existence of insurale interest in a contract of

insurance, which distinguishes it from a mere watering

agreement.

D3 C!us! Pro.im!+ 8he rule of causa proxima means that

the cause of the loss must e proximate or immediate and

not remote. (f the proximate cause of the loss is a peril

insured against, the insured can recover. When a loss has

een rought aout y two or

more causes, the 7uestion arises as to which is the causa

proxima, although the result could not have happenedwithout the remote cause. "ut if the loss is rought aout

y any cause attriutale to the misconduct of the insured,

the insurer is not liale.


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E3 Ris0+ (n a contract of insurance the insurer undertakes

to protect the insured from a specified loss and the insurer

receive a premium for running the risk of such loss. 8hus,

risk must attach to a policy.

F3 Miti$!tio o# Loss+ (n the event of some mishap to the

insured property, the insured must take all necessary steps

to mitigate or minimi;e the loss, just as any prudent person

would do in those circumstances. (f he does not do so, the

insurer can avoid the payment of loss attriutale to his

negligence. "ut it must e rememered that though the

insured is ound to do his est for his insurer, he is, not

ound to do so at the risk of his life.

'3 Subro$!tio + 8he doctrine of surogation is a

corollary to the principle of indemnity and applies only to

fire and marine insurance. According to it, when an insured

has received full indemnity in respect of his loss, all rights

and remedies which he has against

8hird person will pass on to the insurer and will e

exercised for his enefit until he ?the insurer> recoups theamount he has paid under the policy. (t must e clarified

here that the

(nsurer5s right of surogation arises only when he has paid

for the loss for which he is liale under the policy and this

right extends only to the rights and remedies availale to


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the insured in respect of the thing to which the contract of

insurance relates.

/3 Cotributio+ Where there are two or more insurance

on one risk, the principle of contriution comes into play.

8he aim of contriution is to distriute the actual amount of

loss among the different insurers who are liale for the

same risk under different policies in respect of the same

suject matter. Any one insurer may pay to the insured the

full amount of the loss covered y the policy and then

ecome entitled to contriution from his co+insurers in

proportion to the amount which each has undertaken to pay

in case of loss of the same suject+matter.

(n other words, the right of contriution arises when

1> 8here are different policies, which relate to the same

suject matter

#> 8he policies cover the same peril which caused the

loss, and

'> All the policies are in force at the time of the loss,

and

/> @ne of the insurers has paid to the insured more than

his share of the loss.

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6ife (nsurance$olicy is a form of security for the person

who insures his life and his family. 6ife insurance policies

have helped trade and other economic activities to flourish

in a great manner. (t has generated lots of jo opportunities.

(t is looked upon as a lucrative career option. 6ife

insurance companies have also entered the international

usiness scenario.

T*e #o""o-i$ re!sos subst!ti!te -*7 ! "i#e

isur!+e po"i+7 s*ou"d be t!0e:

A3 E!r"7 De!t*s

8he mortality rate is experiencing a declining trend in

many parts of the world. !owever it is also important to

note that the age at which $eople die is also ever

decreasing. 3ome reasons for this include unhealthy living

style, stress, pollution, and some natural calamities. 8his

necessitates people to make ade7uate measures to yieldincome for their family and dependents. 8his could e a

serious concern if the insured happens to e the sole

readwinner. 3ome individuals see this as an option to plan

their retirement.

B3 Ad8!+emets i /e!"t* C!re

8he mortality rate has declined rapidly even though the fact

remains that the numer of people who die at an early age

is on the increase. 8his is mainly due to the advancement in

healthcare and the awareness on medical facilities. 8his

results in an increased spending at an old age. 8his

increased spending is also due to increase in the costs of

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http://www.thriftyscot.com/life-insurance/http://www.thriftyscot.com/life-insurance/


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living apart from paying expensive medical ills. nless

they invest in 6ife insurance or other forms of insurance

like health insurance it ecomes next only too impossile to

meet the financial demands especially during the old days.

C3 I+re!se i t*e Cost o# Li8i$ !d Spedi$

Po-er

8he purchasing power of the consumers and the standard of

living has experienced a steep rise over the years. 8he

increase in Bational (ncome and gross domestic product are

$artly responsile for this. (ndividuals incur many

unexpected expenses due to the growing needs. (nsurance

comes in handy to meet such an unexpected expense. (t

also

Makes sure that an individual is ale to meticulously plan

his finances.

(nsurance option is more or less an interest free loan. An

individual can cancel his insurance policy and otain a

huge amount if it is imperative in meeting an urgent

expenses and he does not have alternative sources for

finance. 6ife insurance companies therefore do the needfulto consumers.

D3 T!. Co+essios

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(ncome tax concessions are availale to individuals and

corporate houses that adopt insurance policies. Many have

een making investments in (nsurance with the sole aim of

enjoying tax enefits. 8his naturally increases spending

power. 3ince the investments increases the economic

activities in the country automatically increases.

9ISION

To be a world class provider of

nancial security to individuals andcorporates and to be amongst the

top three private sectors lifeinsurance companies in India.

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MISSION

To be the rst preference of our

customers by providing innovative,need based life insurance and

retirement solutions to individualsas well as corporates. These

solutions will be made available bywell-trained professionals through

a multi channel distributionnetwork and

Superior technology.

Our endeavor will be to provideconstant value addition to

customers throughout theirrelationship with us, within the

regulatory framework.e will provide career

development opportunities to ouremployees and

The highest possible returns to ourshareholders.

9ALUES

Integrity! "onesty inevery action.

#ommitment! $eliver

on the promise

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%assion! &nergi'ed

action Seamlessness!

(oundary less in letter ) spirit Speed! One step

ahead always

COMPANY PROFILE

Bir"! Su Li#e A Comi$ To$et*er O# 9!"ues

Bir"! Su Li#e is ! )oit 8eture bet-ee T*e Adit7!

Bir"! 'roup, one of the largest usiness house in (ndia and

Su Li#e Fi!+i!" I+(, a leading (nternational )inancial3ervices @rgani;ation. 8he local knowledge of the Aditya

"irla %roup comined with the expertise of 3un 6ife

)inancial (nc. offers a formidale protection for our future.

8he Aditya "irla %roup is led y its chairman+ Mr. Cumar

Manglam "irla. 8he %roup has over 000 employees

across all its units worldwide. 3ome of the key

organi;ations with the group are !indalco, %rasim, Aditya

"irla Buvo, etc.

8he group is (ndiaDs leading usiness house with a numer

of key organi;ations. 8hese are as followsE

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1. %rasim

#. ltra8ech 2ement 6td

'. !indalco

/. (ndian Aluminium 2ompany 6td

. Aditya "irla Buvo

*. (dea 2ellular 6td.

;( Bir"! Su Li#e Isur!+e Co(Ltd

. "irla 3un 6ife Asset Mgmt. 2o.6td

. "irla 3un 6ife =istriution 2o. 6td

10. $3( =ata 3ystems

11. (ndo %ulf )ertili;ers 6td.

1#. "irla %loal )inance 6td

3un 6ife )inancial (nc. and its partners today have

operations in key markets worldwide, including 2anada,

the nited 3tates, the nited Cingdom, !ong Cong, the

$hilippines, Fapan, (ndonesia, (ndia, 2hina and "ermuda.

3un 6ife )inancial (nc. is a leading player in the life

insurance market in 2anada.

S*!re /o"di$ P!tter:

(n "irla+3un 6ife, the two companies are having

shareholding pattern as followsE

4/ G++H Aditya "irla %roup#* G++H 3un 6ife )inancial (nc.

T*e $roup *!s 2 busiesses:

1. Mutual )unds

#. Wealth Management

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'. 6ife (nsurance

Bir"! Su Li#e Isur!+e +o "td( is t*e Li#e


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"36( is a company that has a very uni7ue contriution in

the history of (nsurance sector. 8he company not only has

varying plans and funds, rather also is a pioneer in many

aspects. 8hese pioneering features of "36( are as followsE

4( Free Loo0 Period: "36( offers its policyholders

with a free look period of 1 days. 2lient gets

freedom to have an in+depth look over all the terms

and conditions regarding hisIher life+insurance

policy. (f he finds policy not worth opting for, he

can also return the policy, ut at "36(, co. people

ensures this not to happen.

=( B!+!ssur!+e: "36( pioneered "ancassurance in

(ndia. "ancassurance means to include "anks as

one of the distriution channels with the company.

"36( is the first company, which reali;ed that

anks, with their huge customer ase and strong

customer loyalty, are a readymade platform to

ac7uire new usiness on a more cost effective and

sustainale asis.

2( Uit Li0ed Li#e Isur!+e P"!s:"36( was the

first in (ndia to introduce nit 6inked $lans. A

6($ is an auspicious coming together of security

from life

>( insurance and earnings from investment. Which

means, apart from securing the future they offer

efficient returns. 8hese plans provide the customer

with a certain numer of units, in the same way as a

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mutual+fund holder gets units. 6($s offer market+

linked returns to policyholders.

5( S!"es I""ustr!tios:"36( is the first company to

introduce 3ales (llustrations in the (nsurance

(ndustry. 3ales people of "36( give demonstrations

of fund

?( $erformance on two points of projections i.e. on *G

and 10G. Bow (-=A has also made it mandatory to

have sales illustrations.

"36(5s has launched 2entury 3($, a uni7ue systematic

investment plan offering an opportunity to create wealth

with as little as -s 1000 per month plus a life insurance

cover of up to 100 times the monthly installment.

8his plan comes along with free term insurancefor an

individual up to years of age.

8he life insurance cover comes at no extra cost to the

investor. 8he cover is hassle free. 8he investor need not go

thru any medial test to avail of the life cover. All an

investor needs to do is enroll for 23($ J sign a

K=eclaration of %ood !ealth9. (n case of unfortunatedemise of investor the insurance claimwill e directly paid

to the nominee y the insurance company ?"irla 3un 6ife

(nsurance 2ompany>.

1
http://www.moneycontrol.com/india/news/mf-news/birla-sun-life-mf-launches-century-sip/17/50/342146http://www.moneycontrol.com/india/news/mf-news/birla-sun-life-mf-launches-century-sip/17/50/342146http://www.moneycontrol.com/india/news/mf-news/birla-sun-life-mf-launches-century-sip/17/50/342146http://www.moneycontrol.com/india/news/mf-news/birla-sun-life-mf-launches-century-sip/17/50/342146http://www.moneycontrol.com/india/news/mf-news/birla-sun-life-mf-launches-century-sip/17/50/342146


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Announcing the launch of 2entury 3($, Anil Cumar, 2&@,

and "irla 3un 6ife M) said,

K8his offering touches all aspects of an investor5s financial

planning needs. We wish to encourage the investment hait

among investors y providing them life insurance cover.9

(nsurance cover to the investor would continue even after

the 3($5s minimum maturity tenor of ' years. Any

individual etween 1 to /* years of age mayinvestin this

plan. (nvestment in this plan may e made through

&lectronic clearing system ?&23>, direct deits or post

dated che7ues.

;( Ot*ers:3ome other @B&s with "36( areE

4stto issue daily BAs of funds for etter

transparency.

4stto have a distinct 2-(3(6 enchmark.

4stto disclose portfolio on a monthly asis.

$olicyholders can view their policy details

onlineL they can e accessed from "36(

wesite using your uni7ue password.

#0
http://www.moneycontrol.com/india/news/mf-news/birla-sun-life-mf-launches-century-sip/17/50/342146http://www.moneycontrol.com/india/news/mf-news/birla-sun-life-mf-launches-century-sip/17/50/342146http://www.moneycontrol.com/india/news/mf-news/birla-sun-life-mf-launches-century-sip/17/50/342146http://www.moneycontrol.com/india/news/mf-news/birla-sun-life-mf-launches-century-sip/17/50/342146


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@ut of every 100 claims intimated to "36(

.# stands cleared.

Also the average 8urn Around 8ime ?8A8> E

?i> )rom the receipt of the last

re7uirement till dispatch of

che7ue is days and

?ii> )rom intimation of claim till its

decision J dispatch of che7ue

is '* days.

S!"es Pro+edure o# Isur!+e i BSLI:

"36( ensures that its policyholders get the est out of the

policy offered to them y their Advisors. )or this, "36(

follows a set procedure of selling (nsurance to the clients.

8he sales procedure can e diagrammatically presented as

followsE

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8his procedure can e stepped down as followsE

4( Pit+*i$ t*e +ustomer:8he first and foremost thing is

that, client should e ready to purchase the (nsurance plan.

(nsurance is not a very preferale product yet in (ndia. And,

thus, co. has to e very vigilant. Advisors, at "36(,

maintain relationships and make the most of their

%oodwill. (nsurance is a -elationship oriented usiness.

Ceeping this in mind "36( also initiated "ancassurance,

##

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where "anks5 image of eing loyal to the customers, plays

a major role in pitching the customer to uy (nsurance.

"36( uses following routes for distriuting their $roduct to

general pulicE

a. =irect $ersonal 2ontacts ?through Advisors>

. "ancassurance ?through "anks>

c. $ersonal -elations ?through co. employees>

d. &xisting $olicyholders.

=( S!"es I""ustr!tio: "36( is the first company to give

demonstration of the fund performance i.e. how a certain

policy will perform or will give returns. "36( Advisors

give sales illustration. )und performance is shown on *G

and 10G projections. (f client find these projected returns

suitale to hisIher risk profile, he go for purchasing the

policy.

2( Propos!" Form: Bow as client is ready to get

insured, advisor gives him the proposal form and

asks for all the documents re7uired. $roposal form

is a / page document that contains all the necessary

information related to the (nsured and the @wner of

the policy. =ocuments re7uired along with the

proposal form areE

=ate+@f+"irth $roof

Address J (= $roof

(ncome 2ertificate

Medical 2ertificates ?only if (nsurer is a senior

citi;en>

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/. A#ter S!"es Ser8i+e: Bow after the (nsurance is

sold, follow+ups are re7uired. Advisor needs to

maintain good relations with the policyholder.

(nsurance co. can

%enerate further usiness, only if, existing

policyholders are satisfied with the services eing

provided y the advisor of the co. 8hus, "36( keeps

this in mind and "usiness =evelopment &xecutives

continuously track the needs of the policyholders. "36(

provides the policyholders with monthly updates of the

fund performance and

also discloses the asset portfolio of the fund. 8his

assists the policyholders to manage their policy

according to their risk profile. 8hey can, thus, change

their fund allocation as well as the asset allocation in

any fund, chosen y them.

COMPANY PRODUCTS @

PLANS

All the plans associated with "36( are nit 6inked $lans.

F"e.i P"!s

)lexi $lans have three variants. 8hese variants areE

1. )lexi 3ave $lus ?&ndowment $lan>

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#. )lexi 2ash )low ?Money "ack $lan>

'. )lexi 6ifeline ?Whole of 6ife $lan>

Fe!tures:

8his is a nit 6inked $lan with guaranteed returns.

$rovides flexiility with 8op+p )acility.

)or uarterly modal premium less than -s.000,

payment can e made through &23.

$olicyholder can attach riders to the plan according

to hisIher needs.

6i7uidity in the form of $artial withdrawals.

8hree (nvestment )und options are availale with

the policy and policyholder is free to switch

etween funds anytime during the tenure of the

policy.

8he 3um Assured may e increased once in every

policy years, starting from the *th

policy year.

$remium can e paid annually, semi+annually,

7uarterly and monthly

Premium I8ested: 2ollected $remium is invested in three

(nvestment )und @ptions. 8hese funds areE

1. $rotector

#. "uilder

'. &nhancer

Bee#its:

#


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1. Maturity "enefitsE At maturity, $olicyholder gets

the higher of the guaranteed fund value ?min. 'G on

premium> or the 8otal )und value.

#. 3urvival "enefitsE

?i> At the end of every th2overage "enefit $eriod

and the remainder on maturity, an amount

e7uals to the minimum of ?a> or ?> mentioned

elow will e reduced from the guaranteed fund

value and transferred to the holding account for

the purpose of partial withdrawals, where+

?a> %uaranteed )und alue

?> 3um Assured G as stated elowE

'0G if the 2overage "enefit

$eriod is 10 years.

#G if the 2overage "enefit

$eriod is 1 years.

#0G if the 2overage "enefit

$eriod is #0 years.

1G if the 2overage "enefit

$eriod is # years.

(f survival enefits are not withdrawn, they will

continue to e a part of the )und alue.

?ii> (f the life insured is a minor,

policyholder can withdraw the survival

enefit payout within one month from

#*


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the scheduled payout date from the fund

value.

'. =eath "enefitsE

A$e !t time o#

De!t*De!t* Bee#its

2 d!7s to 4 7e!r )und alue @nly

A$e 4 Ye!r to ?

Ye!r

!igher of 3um Assured less all partial withdrawals made in #/

months preceeding the death of life insured or the fund value or

the guaranteed fund value.

O or A#ter

!tt!imet o# ?

Ye!rs

!igher of 3um Assured less all partial withdrawals made since

the life insured attained the age or the fund value or the

guaranteed fund value.

C*!r$es:

1. Mortality 2hargesE 8hese charges are deducted y

canceling units on a monthly asis at the prevailing

BA. 8he annual mortality charges per 1000 sum

assured for sample ages are as followsE

A$e = 2 > 5 ?

M!"e 1.01* 1.141 #.10 .'# 1'.4'#

Fem!"e 0.* 1.1*' 1.*4 /.0'0 10.**0

#. $artial Withdrawal 2hargesE # withdrawals in a

policy year are free of charge. -s100 for every

additional partial withdrawal are charged.

C"!ssi+ Li#e Premier

#4


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8his is the plan that not only helps to save for the future ut

also helps to get rich enefits from the investments,

especially at a time when the need for family protection

reduces significantly.

Fe!tures:

8he plan is a unit linked, non+participating plan.

8his plan has the option of seven+investment fund

with the flexiility to allocate the premiums in

varying proportions into the different )und @ption.

8op up facility is there. 8he minimum amount of

top ups is 10000.

8he plan offers further enefits in the form of

additional units, which will e added to the )und

value at the end of the 10thpolicy year.

8here is high li7uidity in the form of $artial

Withdrawals and 3urrender "enefits.

=eath "enefits, which will e higher of the )und

value or 3um Assured, reduced y the applicale

partial withdrawals.

E"i$ibi"it7:

&ntry AgeE

MinimumE '0 days for #0 J '0 term years for 10 terms

'0 years for whole life

MaximumE )or 10 years term+ *0 years

)or #0 years term+ 0 years

)or '0 years term+ /0 years

#


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)or Whole 6ife+ *0 years

=urationE

MinimumE 10 years

MaximumE 40 years ?assuming whole life to

e 100 years>

Maturity AgeE 40 years for the term+ 10,#0,'0 years

100 years for whole life

$remium $ayment 8ermE )or 10 years term+ ', yrs

or regular coverage

paying period.

)or #0 yrs, '0yrs term

and Whole 6ife+ yrs, 10

yrs or regular coverage

paying period.

Premium I8estmet: $remium collected is invested in

3even (nvestment )und @ptionsE

1. Assure

#. $rotector

'. "uilder

/. &nhancer

. 2reator

*. Magnifier

4. Maximiser

Bee#its:

1. %uaranteed AdditionE (t is in the form of additional

units, which is added to the fund value on the 10 th

#


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policy anniversary and on every th policy

anniversary thereafter, while policy is in effect.

#. $artial Withdrawal @ptionsE $artial Withdrawals

can e made after ' policy years or when the life

insured attains maturity, whichever is later. 8he

minimum partial withdrawal amount is -s.10000

'. 3urrender "enefitsE $olicy offers the flexiility of

surrendering the policy, if the need arises. 8here is

no surrender charge after * completed policy years.

!owever, if the policy is surrendered within ' years

from inception, the surrender value is paid after the

completion of the third policy anniversary.

/. =eath "enefitsE

"elow yearsE (f the death of the life

insured take place efore years, only the

fund value shall e payale to the policy

owner.

"etween to *0 yearsE !igher of the fund

value or the sum assured less all applicale

partial withdrawals made in the last #/

months preceding the death of the life

insured.

*0 years and AoveE !igher of the fund

value or the sum assured less all applicale

'0


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partial withdrawals made since the life

insured attained the age of .

. Maturity "enefitsE @n maturity of the policy, the

fund value is payale. nder the whole life option,

on maturity of the policy, when the life insured

attains the age of 100, then fund value is payale

and the policy will e terminated.

*. 8ax "enefitsE 8ax enefits on premium payment are

governed y section 02 of the (ncome 8ax Act

1*1. 8ax &xemptions on the amount received on

maturity in the unfortunate event of death and the

withdrawals are governed y section 10?10=>.

4. Addition of -idersE $olicy holder can customi;e the

plan y adding any of the following * ridersE

1. Accidental =eath J =ismemerment -ider

#. 8erm -ider

'. 2ritical (llness -ider

/. 2ritical (llness $lus -ider

. 2ritical (llness Women -ider

*. Waiver of $remium -ider

C*!r$es:

1. $remium Allocation 2hargesE 8hese charges duringthe premium paying term are as underE

Po"i+7 Ye!r 1 # or ' 8hereafter

C*!r$e 1'G /G #G

'1


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8his charge on 8op+up and underwriting extra is #G.

#. Mortality 2hargeE 8his charge will e deducted y

cancellation of units on a monthly asis at the

prevailing BA. 8he Annual Mortality charge per

1000 of the 3um at risk for sample ages are as

followsE

A$e =5 25 >5 55 ?5

Fem!"e 1.0#' 1.1*# #.' *.//1 1.#

M!"e 1.0' 1.'*' '.110 .41 #1.0*

'. )und Management 2hargeE 8his is charged y

adjustment of the daily BAs. 8he charge isE

1G p.a. for Assure, $rotector, "uilder and

&nhancer )und.

1.#G p.a. for 2reator, Magnifier and

Maximiser )und.

/. $olicy administration 2hargeE 8he charge is

deducted y canceling units on a monthly asis at

the prevailing BA. 8he annual charge differs

according to the 6ife (nsurance 2overage 3um

Assured and 6ife (nsurance 2overage $aying

$eriod. 8he maximum charge is *.10 and the

minimum charge is 0.00

'#


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. 3urrender 2hargeE 8hese charges are levied as the

percentage of the annual life insurance coverage

$remium payale. 2harges are as followsE

Po"i+7 Ye!r 1 # ' / * 4N

Surreder

C*!r$e'0G #0G 1G 10G G *G B(6

*. -ider $remium 2hargeE (f the riders are attached,

this charge will e reali;ed y cancellation of units

on a monthly asis ased on the e7uivalent monthly

rider coverage premium payale, when rider

coverage payment period e7uals the rider coverage

enefit period.

'o"d P"us II P"!

8he plan gives much more than a good insurance cover, an

opportunity to grow investment for the medium term. (t is

worth more than %old.

Fe!tures:

(t is a nit 6inked, Bon+$articipating, (nsurance

plan.

=uration of plan is years.

''


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$remium paying term of ' years with the flexiility

to reduce premium up to -s. 10000 from the second

policy year.

$lan also has 8op+up facility.

6i7uidity in the form of $artial Withdrawals and

3urrender "enefits.

$lan has 4 fund options.

)ree unlimited fund switching and premium

redirection

E"i$ibi"it7:

&ntry AgeE 1 to 40 years.

Minimum $remiumE -s.0000

Minimum sum AssuredE x Annual $remium

Premium I8estmet: $remium collected is allocated in

varying proportions in seven investment fund options.

$olicyholder can switch etween the fund options anytime

during the tenure of the policy. 8he seven (nvestment

)unds availale areE

1. Assure

#. $rotector

'. "uilder

/. &nhancer

. 2reator *. Magnifier

4. Maximiser

Bee#its:

'/


36/57


1. Maturity "enefitsE

@n maturity fund value will e paid to the

policyholder.

#. =eath "enefitsE

(n the nfortunate event of the =eath of the 6ife

(nsured prior to the maturity date of the policy, the

nominee gets the greater of

1!3 )und alue

1b3 3um Assured reduced for partial withdrawal

as followsE

"efore the life insured attains the

age of *0, the sum assured payale

on death is reduced y partial

withdrawals made in the

preceeding years.

@nce the 6ife (nsured attains the

age of *0, the 3um Assured

payale on death is reduced y all

partial withdrawals made from age

onwards.

'. 8ax "enefitsE

$olicyholder is eligile for tax enefits I3 02 and

I3 10?10=> of the (ncome 8ax Act 1*1.

I3 02+ $remium up to -s.100000 is

allowed as deduction from taxale income

each year.

I3 10?10=> + 8he "enefits received under

plan are exempted from tax.

C*!r$es:

'


37/57


1. $remium Allocation 2hargesE

(t is deducted from premium when received and

efore allocation of units.

Policy

Charges

Policy Years

1 2 3 4+

On Policy

Premium 8% 4% 4%On top-up

Premium 2% 2% 2% 2%

#. )und Management 2hargesE

)und Management charge not exceeding 1.G per

annum of the fund value will e charged y

adjustments of the daily unit price. 8he charge is

1G p.a.+ Assure, $rotector, "uilder and

&nhancer

1.#G p.a. < 2reator, Magnifier and

Maximiser

'. $olicy Administration 2hargesE

8hese charges are recovered y canceling units on a

monthly asis proportionately from each investment

fund. 8he annual -ate per 1000 of 3um Assured isE

Policy

Charges

Policy Years

1 2 3 4+

Policy

Administration

19.4 19.4 19.4 14.4

'*


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Charge *

O An additional per 1000 will e charged in the

first ' policy years only on any excess 3um Assured

over -s. 0000

/. Mortality 2hargesE 8hese charges are deducted on a

monthly asis. 8hese charges are taken y canceling

units proportionately from each of the investment

funds at that time. 8he annual rate per 1000 of 3um

Assured less fund value for sample ages areE

A$e =5 25 >5 55 ?5

Fem!"e 1.0#' 1.1*# #.' *.//1 1.#

M!"e 1.0' 1.'*' '.110 .41 #1.0*

. 3urrender 2hargesE

8hese charges are applied when the policyholder

surrender their policy in the first ' policy years. 8he

surrender charge as a percentage of the annual

policy premium chosen at issue is

Policy

Charges

Policy Years

1 2 3 4+

Surrender 15% 12.5% 10% nil

'4


39/57


Charges

Supreme Li#e P"!

Fe!tures:

8he plan is a nit 6inked (nsurance $lan.

(t provides the nominee with an increased sum

assured and uilds savings faster.

8he plan offers more protection of money at

supremely low cost.

$rovides with 3upreme Accidental 8$= ?8otal

$ermanent =isaility>.

$olicyholder gets freedom to choose premium

amount as low as -s.#000

8he plan provides with * (nvestment )und @ptions.

8he plan is flexile as it provides the policyholder

with 8op+p $remium facility to ensure fastergrowth in the )und alue.

$artial Withdrawals, are allowed, after ' years to

meet li7uidity needs of the policyholder

Dur!tio:

$olicy 8ermE 10, 1, #0, #, '0, ', /0 Pears.

$remium $ayment 8ermE $olicyholder can chooseto pay premium at short or regular intervals.

Premium I8estmet: $remium 2ollected is investment in

six investment fund options. 8hese funds areE

1. Assure

'


40/57


#. $rotector

'. "uilder

/. &nhancer

. 2reator

*. Magnifier

Bee#its:

1. =eath "enefitsE

=oule =eath "enefits i.e. =eath "enefitsQ

3um Assured N 3avings

(ncreasing =eath enefits i.e. =eath "enefitQ

3um Assured N #G every thyear

#. Accidental 8$= "enefitE

$olicyholder immediately gets the original sum

assured up to -s.0 lac

2o. pays the future premiums up to age *0.

'. 3witches J -edirectionE

$olicyholder gets flexiility to switch etween

the fund options. 8wo switches are free per

annum.

C*!r$es:

1. Mortality 2hargesE 2harges are deducted monthly

y canceling units from the associated fund option.

8he charge is G

#. $olicy Administration 2hargesE 8hese charges are

deducted monthly y canceling units from the

investment fund. 8he annual charge is -s. 4#0 on

the first 1000 3um Assured in all years i.e. -s.'.*0

'


41/57


per 1000 3um Assured p.a. 8he additional charges

for years 1+ are as followsE

Term B!d 4 B!d = B!d 2

4@45 /.4 /.# /.00

= '.4 '.# '.00

'. $remium Allocation 2hargesE 8hese charges are G

for the 1stpolicy year and #G for suse7uent policy

years.

/. )und Management 2hargesE 8hese charges are 1


42/57


$lus )und ( recorded on reset dates starting on

March 14, #00 and ending on Fune 1, #01.

E"i$ibi"it7:

&ntry Age of 6ife (nsuredE 1 to 40 Pears.

Minimum Annual $remiumE -s. 1,00,000

Minimum 3um AssuredE xAnnual $remium.

Premium Co""e+ted is i8ested i t*e Euit7 Debt

M!r0et !++ordi$ to t*e preset Asset A""o+!tio o# t*e

P"!tium P"us Fud I(

Bee#its:

1. %uaranteed Maturity nit $rice

Minimum of -s. 10 on the first -eset =ate

At maturity, is the highest nit $rice recorded on

-eset =ates

#. Maturity "enefits

Bumer of units multiplied y higher of %uaranteed

Maturity nit $rice or prevailing nit $rice at

maturity

'. 3urrender "enefits

)ull li7uidity after ' policy years


43/57


I3 02+ $remium up to -s.100000 is

allowed as deduction from taxale income

each year.

I3 10?10=> + "enefits from the plan are

exempted from tax.

C*!r$es:

1. $remium Allocation 2hargesE 10G of

premium in the first year and /G of

premium in suse7uent years.

#. )und Management 2hargesE 1.00G+1.0G

p.a. for Assure J 1.0G+#.00G p.a. for

$latinum $lus )und (.

'. $olicy Administration 2hargesE 8hese

charges are deducted monthly y canceling

units from the investment fund Assure first

and then, from $latinum $lus (, if re7uired.

8he annual charge is -s. 4#0 on the first

1000 3um Assured in all years plus -s.* per

1000 3um Assured in years 1 to ' only.

/. Mortality 2hargesE 2harges are deducted

monthly y canceling units from the

associated investment funds. 8he Annual

2harges for sample ages are as followsE

Att!ied A$e =5 25 >5 55 ?5

Fem!"e 1.0#' 1.1*# #.' *.//1 1.#0

/#


44/57


M!"e 1.0' 1.'*' '.110 .41 #1.0*0

. 3urrender 2hargesE 8his charge, as a

percentage of the annual premium at issue,

is 1*G, 1'G and 10G for policy year 1, #

and ' respectively.

*. -evival 2hargeE 8he charge for policy

revival is -s. 100+1000 per revival

FUNDS BY BSLI

"irla 3un 6ife (nsurance, a leading 6ife (nsurance

company, offers its clients with a long range of )unds.

8hese funds are designed to cater to a variety of needs of

people who are from different life stages. "36( offers a

road range of 1# funds, each having differing asset

allocations.

4= #uds o##ered !re:

1. (ndividual $rotector

#. (ndividual Assure

'. (ndividual "alancer

/. (ndividual "uilder

. (ndividual 2reator

/'


45/57


*. (ndividual &nhancer

4. (ndividual 6ife Maximiser

. (ndividual Magnifier

. (ndividual Multiplier

10. $ension Bourish

11. $ension &nrich

1#. $ension %rowth

A new fund named P"!tium P"us Fud Iis also added in

this list of funds.

Asset Allocation is decided y the )und Managers of the

company. 8hese fund managers continuously tracks the

movements of volatile market and comine this volatility

with the fund re7uirements of the policyholders.

Accordingly he decides allocation of assets in major

investment optionsE

%overnment 3ecurities

2orporate =et

3ecuriti;ed =et

&7uity

Money Market (nstruments

$roportion of allocating the fund in these options, vary

according to the needs and fund re7uirements of

policyholders. 8he most important thing to e noticed here

is that this portfolio is decided, ased on the regulations of

(-=A. $erformances of these funds are rated y the rating

agency+2-(3(6.

//


46/57


All the 1# funds y "36( are descried elow along with

their respective Asset Allocations.

Idi8idu!" Assure

Ob)e+ti8e: 8he primary ojective of this fund is to provide

2apital $rotection, at a high level of safety and li7uidity

through judicious investments in high 7uality short+term

det.

Str!te$7: %enerate etter return with low level of risk

through investment into fixed interest securities having

short+term maturity profile.

Asset A""o+!tio:

SECURITIES /OLDIN'

2orporate =et .4G

Money Market (nstruments 14.4G

TOTAL 4(

/


47/57


HOLDING

59.57%

17.97%

100.00%

Corporate Debt

Money Maret

In!tr"#ent!

$O$L

Idi8idu!" B!"!+er

Ob)e+ti8e: 8he ojective of this fund is to achieve value

creation of the policyholder at an average risk level over

medium to long+term period.

Str!te$7: 8he strategy is to invest predominantly in det

securities with an additional exposure to e7uity,

maintaining medium term duration profile of the portfolio.

Asset A""o+!tio:

SECURITIES /OLDIN'S

%overnment 3ecurities 10.*4G

2orporate =et '.0/G

&7uity #'.//G

Money Market (nstruments #*.G

/*


48/57


TOTAL 4(

Pesio 'ro-t*

Ob)e+ti8e: 8his fund option is designed to uild the capital

and to generate etter returns at moderate level of risk, over

a medium or long+term period through a alance of

investment in e7uity and det.

Str!te$7: %enerate etter return with moderate level of risk

through active management of fixed income portfolio and

focus on creating long term e7uity portfolio which will

enhance yield of composite portfolio with low level of risk

appetite.

Asset A""o+!tio:

SECURITIES /OLDIN'S

/4


49/57


%overnment 3ecurities 1'.0G

2orporate =et /./1G

&7uity 1.*'G

Money Market (nstruments ##.0*GTOTAL 4(

Pesio Eri+*

Ob)e+ti8e: !elps to grow the capital through enhanced

returns over a medium to long+term period through

investments in e7uity and det instruments, therey

providing a good alance etween risk and return.

Str!te$7: 8o earn capital appreciation y maintaining

diversified e7uity portfolio and seek to earn regular returnon fixed income portfolio y active management resulting

in wealth creation for policyholders.

Asset A""o+!tio:

/


50/57


SECURITIES /OLDIN'S

%overnment 3ecurities 1/.'G

2orporate =et './0G

&7uity '#.*GMoney Market (nstruments 1'.4G

TOTAL 4(

CONCLUSION

@ur training was a very enriching experience for us, we

have learnt so many things, and we got insight into the

insurance world.(nsurance sector today playing a major

/


51/57


role in everyone5s life lot more than ever efore life

currently there is a comprehensive range of products

covering each type of policy availale in the market. We

have studied various insurance plans covered under "36(,

and their features. "36( also gives various -iders, which

provides extra enefits to the customers. And we came to

know aout the pioneering features of "36(, like sales

procedure, 3($, etc.

While most insurance plans lock money for certain period

of time, a "36( plan gives the doule enefit of life

insurance along with easy li7uidity through lump sum

cash.

"irla 3un 6ife (nsurance ?"36(>, one of the largest private

life insurers, is gearing itself to take advantage of the vastrural opportunity that has opened up as a result of the

revised definition of rural areas y the (-=A. @ver the last

four years, "36( has painstakingly uilt its rural

infrastructure to create a cost+effective distriution

network across the country.

@ur training gave us corporate exposure, and helped in

improving our communication skills. We learnt to deal

with customers, we made them aware aout various plans,

and their respective features, even helped them to select

the est plan as per their re7uirements.

0


52/57


RECOMMENDATIONS

1. 2ompetition from pulic sector and foreign anks remains a

key challenge for private sector anks. 8hey need to reorient

their staff and effectively utili;e technology platforms to retain

customers.

#. 8hey have to update their portfolio timely.

'. "irla 3un 6ife (nsurance 6td should have proper division of

departments under heads.

/. "irla 3un 6ife (nsurance 6td should have more pension plans.

. "irla 3un 6ife (nsurance 6td should have more children plans,

and more help line plans

*. 8hey should provide more information to the customer so that

they ecome more aware aout insurance

BIBLIO'RAP/Y

4( www.irlasunlife.com =ated 1'I*I0 8ime 'E'0

#. www.$aisawaisa.comI6ife(nsurance =ated 1'I*I0 8ime /E00

2( 2ompany rochure

>(2ompany rochureI %@6=+ $63(( $6ABI er 01I1#I04

1
http://www.paisawaisa.com/LifeInsurance%20Dated%2013/6/08%20Time%204:00http://www.paisawaisa.com/LifeInsurance%20Dated%2013/6/08%20Time%204:00


53/57


5(2ompany rochureI 2lassic 6ife $remierI er II04

#


54/57


ANNEURE

4( Do 7ou m!0e i8estmetsG

A(Yes

B(No

=( /o- mu+* 7ou e!r !u!""7G

A( Be"o- 5,

B( 5,


55/57


5( /o- did 7ou +!me to 0o- !bout itG

A Ne-sp!pers

B( O"ie

C( Perso!" Re#ere+e

D( Ot*er

?( &*!t !ssets do 7ou o-G

A( Perso!" *ouse

B(C!r

C(Credit +!rd

;( &*ere -ou"d 7ou "i0e to i8estG

A( Mutu!" Fud

B(Sto+0s

C(Re!" est!te

D(Isur!+e

/


56/57


H( &*!t -ou"d u "i0e to isureG

A( 9e*i+"e

B(Li#e isur!+e

( &*i+* isur!+e p"! o# BSLI !re

7ou iterested iG

A(S!r!" Jee8!

B('o"d P"us IIC(P"!tium P"us

D(C"!ssi+ Li#e Premier

4( /o- do 7ou r!te our p"!sG

A( A8er!$e

B( 'ood


57/57


C( E.+e""et

birla life insurance

Documents