Presentation pallavi

COMPARATIVE STUDY OF ULIPS OF SELECTED COMPANIES

Presented By:-

Pallavi Jain

MBA 2A

INSURANCE

Introduction

Working of Insurance

History Present

INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY

IRDA is a national agency of the Government of India, based in Hyderabad. It was formed by an act of Indian Parliament known as IRDA Act 1999.

Mission of IRDA as stated in the act is "to protect the interests of the policyholders, to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental there to."

INTRODUCTION TO THE COMPANY

THE RIGHT ORGANIZATION TO PARTNER WITH

HISTORICAL BACKGROUND OF THE COMPANY

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

QUICK FACTS

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

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

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

Vision Enabling Success, Enriching Lives, Spread Smiles

Mission

To create superior value in financial sectors.

• Organic Growth• Acquire and Transform• Improve

Pillars

Values

Right PeopleOrganizational

AlignmentExecution Discipline

Processes

Caring ; Honesty ; Passion ; Team Work ; Disciplined Professionalism

Right PeopleOrganizational

AlignmentExecution Discipline

Processes

Money Matter Inc.Differentiators

Opportunity in India

Customer Needs

Business Model

Career & Growth Prospects

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

1. Understand financial needs and key expectations.

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

3. Product features are designed for the specific segment.

FOCUS ON CUSTOMER, NOT PRODUCT . . .

CAREER PROGRESSION & FUTURE OPPORTUNITIES

Director

Regional Manager

Zonal Manager

Sr. Manager

Relationship Manager

Asst Relationship Manager

Sr. Relationship Officer/ Relationship Officer

MANAGEMENT TEAM

Mr. Prem Pal Sharma

(Chief Operating Officer)

Mr. Gaurav Sharma

(Strategic Unit Head)

Ms. Shallu(Head of Administration

& Finance-Strategic Unit)

Mr. Santosh KumarDubey

(Head Sales-Strategic Unit)

INTRODUCTION TO PARTICULAR BRANCH

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

Objective

PRODUCTS

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

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

THE COMPANIES ASSOCIATED WITH BRANCH

In Life Insurance In General Insurance

1) Tata AIG 1) Tata AIG General Insurance

2) Kotak Life Insurance 2) Reliance General Insurance

3) Aviva Life Insurance 3) Bajaj Allianz General Insurance

4) ICICI Prudential 4) Royal Sundram

5) LIC 5) United

6) Bajaj Allianz 6) National

7) Birla Sun Life 7) Oriental

7) HD FC Standard Life 8) New India

8) SBI Life 9) Iffco Tokyo

9) Reliance Life 10) Star Health

10) Star Health

ORGANIZATION CHART OF TRAINING UNIT

Branch Manager

•Mr. Bikramjeet Singh

Assistant Relationship

Manager

•Mr. Veer Davinder Singh• Mr. Yashpal Sharma

DEPARTMENTS

To improve sales strategies.

To make the people aware about the new products.

To give the best possible services.

To provide best working environment.

To handle the grievances of the employees.

To retain the employees.

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

1

2

3

Five Years Goal

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

Serve a satisfied customer base of ~2 million customers

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

SWOT ANALYSIS OF MONEY MATTER INC.

Strengths1. Product range2 Experienced and young staff

Weaknesses1. Infrastructure 2. Inadequate promotion strategies3. Low retention rate

Opportunities1. Growing awareness2. Untapped market

SWOT Analysis of Money Matter Inc.

INTRODUCTION TO TOPIC

FEATURES

Insurance + Investment. Portfolio investment. Riders benefit. Transparency Higher liquidity Gains depend upon market moments. Potential for better returns.

STRUCTURE OF ULIPS

Premium Allocation Charges. Administration Charges. Mortality Charges. Fund Management Charges. Rider Premium Charges. Partial Withdraw Charges. Miscellaneous Charges. Switching Charges. Surrender Charges.

DIAGRAMMATIC REPRESENTATION

DIFFERENT TYPES OF FUNDS IN ULIPSGeneral Description Nature of Investments Risk Category

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

Medium to High

Income, Fixed Interest and Bond Funds

Invested in corporate bonds, govt. sec

Medium

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

Low

Balanced Funds Combining equity investment with fixed interest instruments

Medium

Advantages of ULIPs

Advantages of ULIPs

• Unit Plus III• Horizon III

• ICICI Pru LifeStage Assure

• LifeTime Plus

• Kotak Smart Advantage Plan

• Kotak Super Advantage Plan

• Money Plus• Market Plus I

SBI LifeICICI

Prudential Life

Kotak Mahindra

Old MutualLIC

Plans under the Study

LIC MONEY PLUS

Minimum Age at Entry

0

Maximum Age at Entry 65 yrs

Minimum Maturity age 18 yrs

Maximum Maturity Age 75

Policy Term 10,15-30 yrs

Minimum Premium Regular premium (other than monthly (ECS) mode):

Rs. [5,000] p.a. for policy term 20 to 30 years

Rs. [10,000] p.a. for policy term 15 to 19 years

Rs. [15,000] p.a. for 10 years

Regular premium (for monthly (ECS) mode):

Rs. [1,000] p.m. for policy term 15 to 30 years

Rs. [1,500] p.m. for policy term 10 years

Sum Assured 30 times of the annualized premium if age at entry is upto 45 years

20 times of the annualized premium if age at entry is 46 to 60 years

10 times of the annualized premium if age at entry is 61 years and

above

LIC MARKET PLUS 1

Minimum Age at Entry 18yrs

Maximum Age at Entry Regular premium: 75 yrs Single premium: 80

yrs

Policy Term 10,15-30 yrs

Minimum Premium Regular premium:Rs. [5,000] p.a. for 20 years and above Rs. [10,000] p.a. for 15 to 19 years Rs. [15,000] p.a. for 10 to 14 yearsRegular premium (for monthly (ECS) mode): Rs. [1,000] p.m. for 15 years and aboveRs. [1,500] p.m. for 10 to 14 years

Minimum Sum Assured Rs 30.000

ICICI PRU LIFESTAGE ASSURE

Minimum PremiumRs 12,000 P.a. for monthly mode

Rs. 10,000 p.a. for all other modes

Minimum Entry Age 0 years

Maximum Entry Age 65 years

Minimum Age at Maturity 18 years

Maximum Age at maturity 75 years

Term 10/ 15/ 20/ 25/ 30 years

Minimum Sum Assured 5 * Annual Premium

Tax Benefit

Premium paid for the policy and critical illness

benefit rider will be eligible for tax benefit under

section 80C & 80D respectively and 10 (10D), as

per prevailing Income Tax laws.

ICICI PRUDENTIAL LIFETIME PLUS

Minimum/Maximum Entry Age 10 years and 30 years

Minimum/Maximum Age of Entry 0 years and 65 years

Minimum/Maximum Premium Rs. 20,000 and Rs. 3,00,000 per annum

Minimum Sum Assured Annual Premium x Term/2

Tax Benefit Available under Sec-80( C) & 10 (10) D

KOTAK SMART ADVANTAGE PLAN

Entry Age Min: 0 , Max: 65yrs

Maturity Age Min:18 yrs , Max: 75

Policy Term 10 / 15 / 20 / 25 / 30 years

Premium Payment Term Equal to the Policy Term

Premium Min: Rs.10,000; Max : No Limit

Sum Assured Min: 5 x Annual Premium. Max: Any multiple

of premium

KOTAK SUPER ADVANTAGE PLAN

Entry Age Min: 0 , Max: 65yrs

Maturity Age Min:18 yrs , Max: 75

Policy Term 10 / 15 / 20 / 25 / 30 years

Premium Payment Term Equal to the Policy Term

Premium Min: Rs.15,000; Max : No Limit

Sum Assured Min: 5 x Annual Premium. Max: Policy term*A

P

SBI LIFE UNIT PLUS III :-

Age at Entry Min: 0 years Max: 65 years

Age at Maturity For Limited Term Max: 70 years

For Whole Life: 90 years

Policy Term For Regular Premium: (The term varies with premium size)

Premium Size (in Rs) Policy Term

24,000 – 99,900 The Policyholder can chose any of the

five fixed policy terms:

10/15/20/25/30 years

100,000 – 499,900 7 to 30 years

500,000 & above 5 to 30 years

Premium Modes Yearly / Half-yearly / Quarterly / Monthly/Single

Annualized

Regular Premium

Amounts

Single Premium

Amounts

Min

Rs 24,000

Rs 60,000

Max

No limit

No limit

Top Up Premium

(X 100)

Min Rs. 5,000

Max: 25% of the basic Regular/Single premium paid till date

Sum Assured Min:

For RP - 5 * AP , For SP – 1.25 * (AP)

Max:

Particulars For Regular Premium For Single

Premium

Entry Age Till 45 yrs 46 to 65 yrs All Ages

Limited Term 20 * AP 10 * AP 5 * SP

Whole Life Term 20 * AP 5 * AP 1.25 * SP

HORIZON IIIAge at Entry Min: 0 years Max:60years

Max. Age at Maturity 70 years

Sum Assured Min: Annualized Basic Premium × 5

Max:

For age of entry upto 45 years: Annualized Basic Premium × 20

For age of entry above 45 years: Annualized Basic Premium × 10

Policy Term 10/15/20/25/30 years

Premium Paying Term Same as policy term

Premium Modes Yearly / Half-yearly / Quarterly / Monthly

Regular Premium Amounts Min

Yearly Rs 18,000

Half-yearly Rs 9,000

Quarterly Rs 4,500

Monthly Rs 1,500

Max

No limit

No limit

No limit

No limit

Top Up Premium Min Rs. 2,000

Max: Cumulative top-ups cannot exceed 25% of total basic premium (s)

Tax Benefits Available under Sec. 80C, Sec. 80D & Sec. 10(10D) of Income Tax Act, 1961

LIMITATIONS

Time has played a biggest constraint that the research could not be carried out comprehensively as the duration of the study was only 6 - 8 weeks.

The sample size for collecting the primary data was meager as it includes only 100 respondents, hence the conclusion would not be a universal one.

Personal biases and prejudices of the customers

may also affect the study.

Balance sheet was not provided.

TITLE

Comparative study of ULIPs of selected companies

OBJECTIVES

To compare the ULIP plans on the basis of selected parameters.

To find out the factors influencing the

investors to invest in ULIP plans. To study the satisfaction of the investors from

their companies.

RESEARCH METHODOLOGY

Type of Research

This is descriptive type of research in which respondents had been surveyed to check their preferences regarding the ULIP Plan

SAMPLE DESIGN

Universe: All the investors who are investing in the ULIP plans. Population: All the investors who are investing in ULIP plans of

any of the company which includes LIC, ICICI Prudential, SBI Life and Kotak Mahindra Old Mutual in Ludhiana city from past three years.

Sampling Unit: Every single investor of any company which

includes ICICI Prudential, LIC, SBI Life and Kotak Mahindra Old Mutual who are investing in ULIP plans from past three years is the sampling unit.

Sample Size: The sample size for the survey conducted is 100

respondents. Equal numbers of respondents are taken for each company i.e. 25.

Sampling Technique: The technique used is Non Probability

technique. Under Non Probability technique, Convenience Sampling is used.

METHOD OF DATA COLLECTION

The two methods of data collection were used which are as follows:-

Primary Data Secondary Data

LIMITATIONS

Data collection error .

Respondents can hide the real information.

Time.

Sample size cannot always represent the whole population.

Balance sheet was not provided.

DATA ANALYSIS AND INTERPRETATIONS

Yrs Bond Fund Secured Fund Balanced Fund Growth Fund

2007-08 7.1% 8.1% 7.9% 8.6%

2008-09 11.6% 0.11% -4.5% -21.9%

2009-10 5.9% 15.5% 25.6% 38.2%

Table4.1 Performance of different funds of Money Plus

Yrs Bond Fund Secured Fund Balanced Fund Growth Fund

2007-08 8.2% 10.18% 12.3% 13.03%

2008-09 12.3% 1.3% 7.4% 21.7%

2009-10 3.8% 29.6% 37.01% 13.95%

Table 4.2 Performance of different funds of Market Plus 1

Yrs Balance

r IV

Flexi

Balanced

IV

Flexi

Growth

IV

Multiplier

Fund IV

Preserver

Fund IV

Protector

Fund IV

Rich

Fund

IV

2007-08 7.1% 5.7% 9% NA 4.5% 5.4% NA%

2008-09 -7.6% -15.3% -33.4% -31.7% 10.2% 10.2% -28.5%

2009-10 33% 40.11% 70.1% 68.6% 7.23% 8.56% 69.3%

Table 4.3 Performance of different funds of ICICI Pru Life Stage Assure

Yrs R I C H

II

Flexi

Growth

II

Multiplier

II

Flexi

Balanced

II

Balancer

II

Protector

II

Preserver

II

2007-08 NA 29.7% NA 19.9% 19.8% 3.5% 9.1%

2008-09 -27.15% -32.1% -30.6% 14.08% -8.9% 10.8% -9.04%

2009-10 69.8% 70.8% 68.02% 8.9% 33.27% 8.9% 7.3%

Table 4.4 Performance of different funds of Life Time Plus

Yrs Opportunities Fund Dynamic Bond

Fund

Dynamic Floor

Fund

2007-08 NA 11.4% 21.5%

2008-09 NA 14.77% 10.6%

2009-10 92.02% 9.1% 22.4%

Table 4.5 Performance of different funds of Kotak Smart Advantage Plan

Yrs Classic

Opportunities

Fund

Frontline

Equity Fund

Dynamic

Floor FundII

Bond Fund

2009-10 4.3% 1.3% 1.07% 1.4%

Table 4.6 Performance of different funds of Kotak Super Advantage Plan

Yrs Equity

Fund

Bond

Fund

Money

Market

Fund

Growth

Fund

Balanced

Fund

Equity

Optimise

r

2007-08 27.5% 10.8% 5.5% 24.7% 25.1% NA

2008-09 -37.8% 13.2% 9.9% -36.05% -16.4% -33.1%

2009-10 79.2% 8.2% 3.9% 55.9% 38.7% 79.3%

Table 4.7 Performance of different funds of Unit Plus III

Yrs Equity Fund Bond Fund Money

Market Fund

Balanced

Fund

2007-08 27.54% 10.8% 5.6% 25.1%

2008-09 -37.8% 13.2% 9.9% -16.4%

2009-10 79.2% 8.3% 3.9% 38.7%

Table 4.8 Performance of different funds of Horizon III

Net change in NAV

Year LIC ICICI Prudential Kotak SBI Life

Money Plus

Market Plus I

Life Stage Assure

Life Time Plus

Kotak Smart

Kotak Super

Unit III Horizon III

2007-08 8.6% 13.3% 9% 29.7% NA NA 27.5% 27.5%

2008-09 -21.9% 21.7% -31.3% -30% NA NA -36% -38%

2009-10 38.2% 13.95% 69.33% 69.5% 92.02% 2.8% 79.3% 79.2%

Table 4.9 Comparison of Equity Funds

Net change in NAV

LIC ICICI Prudential Kotak SBI Life

Money Plus

Market Plus I

Life Stage Assure

Life Time Plus

Kotak Smart

Kotak Super


2007-08 7.1% 8.2% 5.4% 3.5% 21.5% NA 10.8% 10.8%

2008-09 11.6% 12.3% 16.2% 10.8% 14.8% NA 13.2% 13.2%

2009-10 5.9% 3.8% 8.6% 8.9% 9.1% 1.4% 8.2% 8.3%

Table 4.10 Comparison of Bond Funds

Net change in NAV

Year LIC ICICI Prudential

Kotak SBI Life

Money Plus

Market Plus I

Life Stage Assure

Life Time Plus

Kotak Smart

Kotak Super


2007-08 8% 11.24% 5.7% 14.4% 11.4% NA 25.1% 25.1%

2008-09 -2.2% 4.3% -3.73% -1.3% 14.8% NA -16% -16%

2009-10 20.5% 33.3% 26.78%

16.47%

9.1% 1.04% 38.7% 38.7%

Table 4.11 Comparison of Balanced Funds

Year SBI Life


2007-08 5.5% 5.6%

2008-09 9.9% 9.9%

2009-10 3.9% 3.9%

Table 4.12 Comparison for Cash Funds

Years No. of Respondents Percentage

1-5 yrs 18 72%

6-10 yrs 5 20%

11-15yrs 2 8%

More than 15 0 0%

Total 25 100%

Data Analysis for LIC

4.16 Time of purchase of ULIP Plan

Name of Plans No. of Respondents Percentage

Wealth Creation Plan 18 72%

Child Plans 5 20%

Pension Plans 2 8%

Others 0 0%

Total 25 100%

Table 4.19 Type of ULIP Plan Purchased

Funds No. of Respondents Percentage

Balanced Fund 10 40%

Equity Fund 13 52%

Fixed Interest & Bond

Funds

1 4%

Cash Funds 1 4%

Total 25 100%

Table 4.20 Funds used for investment

Features Mean

Returns 1.24

Tenure of Investment .64

Tax Benefit 1.04

Insurance Coverage .80

Riders .16

Brand Value .84

Table 4.22 Features required while purchasing ULIP Plans

Charges No. of Respondents Percentage

0%-5% 2 8%

6%-10% 6 24%

11%-15% 7 28%

More than 15% 10 40%

Total 25 100%

Table 4.23 Premium Allocation Charges paid in 1st year


Nil 3 12%

1%-2% 8 32%

2.1%-3% 13 52%

More than 3% 1 4%

Total 25 100%

Table 4.24 Premium Allocation Charges to be paid after 5th year

No. of Switches No. of Respondents Percentage

Less than 4 7 28%

4 13 52%

More than 4 5 20%

Unlimited 0 0%

Total 25 100%

Table 4.25 No. of free switches


100-200 19 76%

201-300 6 24%

301-400 0 0%

More than 400 0 0%

Total 25 100%

Table 4.26 Cost of every extra switch

Returns No. of

Respondents

Percen

tage

No. of

respond

ents

Percentage

After 1st yr After 3rd yr

0%-9% 23 92% 21 84%

10%-12% 2 8% 4 16%

13%-15% 0 0% 0 0%

Above 15% 0 0% 0 0%

Total 25 100% 25 100%

Table 4.28 Returns they actually got

Features Mean

Risk 1.40

Flexibility 0.96

Return 1.04

Liquidity 0.56

Transparency 0.32

Table 4.29 Features present in the ULIP Plans of the investors (N=25)

Services Mean

Employee’s Behavior 1.24

Premium Collection Procedure 1.24

Providing Latest Information 1.2

Claim Settlement Procedure 0.4

Grievance Handling Time 0.72

Table 4.30 Satisfaction from their company(N=25)

Response No. of Respondents Percentage

Yes 16 64%

No 9 36%

Total 25 100%

Table 4.31 Continuation with same company


1-5 yrs 19 76%

6-10 yrs 5 20%

11-15yrs 0 0%

More than 15 1 4%

Total 25 100%

Data Analysis for ICICI Prudential

Table 4.35 Time of purchase of ULIP Plan



Child Plans 5 20%

Pension Plans 3 12%

Others 0 0%

Total 25 100%

Table 4.38 Type of ULIP Plans


Balanced Fund 5 20%

Equity Fund 18 76%


Funds

1 4%

Cash Funds 1 4%

Total 25

Table 4.39 Funds used for investment

Features Mean

Returns 1.4

Tenure of Investment .84

Tax Benefit .88

Insurance Coverage 1.08

Riders .56

Brand Value .92

Table4.41 Features required while purchasing ULIP Plans (N=25)


0%-5% 5 20%

6%-10% 6 24%

11%-15% 7 28%

More than 15% 7 28%

Total 25 100%

Table4.42 Premium Allocation Charges paid in 1st year


Nil 7 28%

1%-2% 12 48%

2.1%-3% 6 24%

More than 3% 0 0%

Total 25 100%

Table4.43 Premium Allocation Charges to be paid after 5th year


Less than 4 2 8%

4 16 64%

More than 4 7 28%

Unlimited 0 0%

Total 25 100%

Table4.44 No. of free switches


100-200 19 76%

201-300 3 12%

301-400 2 8%

More than 400 1 4%

Total 25 100%

Table4.45 Cost of every extra switch

Returns No. of

Respondents

Percentage No. of

Respondents

Percentage

After 1st yr After 1st yr After 3rd yr After 3rd yr

0%-9% 21 84% 13 52%

10%-12% 3 12% 11 44%

13%-15% 0 0% 0 0%

Above 15% 1 4% 1 4%

Total 25 100% 25 100%

Table4.47 Returns they actually got

Features Mean

Risk 1.4

Flexibility 0.84

Return 1

Liquidity 0.72

Transparency 0.92

Table4.48 Features present in the ULIP Plans of the investors(N=25)

Services Mean

Employee’s Behavior 1





Table4.49 Satisfaction from their company(N=25)


Yes 14 56%

No 11 44%

Total 25 100%

Table4.50 Continuation with same company


1-5 yrs 15 60%

6-10 yrs 7 28%

11-15yrs 1 4%

More than 15 2 8%

Total 25 100%

Table4.54 Time of purchase of ULIP Plan



Child Plans 7 28%

Pension Plans 2 8%

Others 0 0%

Total 25 100%

Data Analysis for Kotak Mahindra Old Mutual

Table4.57 Type of ULIP Plans


Balanced Fund 10 40%

Equity Fund 11 44%


Funds

2 8%

Cash Funds 2 8%

Total 25 100%

Table4.58 Funds used for investment

Features Mean

Returns 1.4

Tenure of Investment 0.44

Tax Benefit 0.52


Riders -0.8

Brand Value 3.8

Table4.60 Features required while purchasing ULIP Plans


0%-5% 3 12%

6%-10% 12 48%

11%-15% 7 28%

More than 15% 3 12%

Total 25 100%



Nil 9 36%

1%-2% 14 56%

2.1%-3% 1 4%

More than 3% 1 4%

Total 25 100%



Less than 4 7 28%

4 12 48%

More than 4 6 24%

Unlimited 0 0%

Total 25 100%



100-200 11 44%

201-300 10 40%

301-400 4 16%

More than 400 0 0%

Total 25 100%


Returns No. of Respondents Percent

age

No. of

Responden

ts

Percenta

ge

After

1styr

After 1st yr After 3rd

yr

After 3rd

yr

0%-9% 24 96% 16 64%

10%-12% 1 4% 6 24%

13%-15% 0 0% 1 4%

Above 15% 0 0% 1 4%

Total 25 100% 25 100%


Features Mean

Risk 1.04

Flexibility 0.48

Return 0.80

Liquidity 0.44

Transparency 0.24

Table 4.67 Features present in the ULIP plans of the investors(N=25)

Services Mean








Yes 15 60%

No 10 40%

Total 25 100%

Table4.69 Continuation with same company


1-5 yrs 19 76%

6-10 yrs 5 20%

11-15yrs 1 4%

More than 15 0 0%

Total 25 100%

Data Analysis for SBI Life

Table4.73 Time of purchase of ULIP Plan



Child Plans 4 16%

Pension Plans 8 32%

Others 2 4%

Total 25 100%

Table4.76 Type of ULIP Plan Purchased


Balanced Fund 6 24%

Equity Fund 13 52%

Fixed Interest Funds 3 12%

Cash Funds 3 12%

Total 25 100%

Table4.77 Funds used for investment

Features Mean

Returns 1.08

Tenure of Investment 0.6

Tax Benefit 1.16


Riders -0.16

Brand Value 0.64

Table4.79 Features required while purchasing ULIP Plans (N=25)


0%-5% 5 20%

6%-10% 12 48%

11%-15% 5 20%

More than 15% 3 12%

Total 25 100%



Nil 10 40%

1%-2% 9 36%

2.1%-3% 6 24%

More than 3% 0 0%

Total 25 100%



Less than 4 6 24%

4 6 24%

More than 4 13 52%

Unlimited 0 0%

Total 25 100%



100-200 15 60%

201-300 7 28%

301-400 1 4%

More than 400 2 8%

Total 25 100%


Returns No. of

Respondents

Percentage No. of

Respondents

Percentage

After 1st yr After 1st yr After 3rd yr After 3rd yr

0%-9% 22 88% 16 64%

10%-12% 3 12% 9 36%

13%-15% 0 0% 0 0%

Above 15% 0 0% 0 0%

Total 25 100% 25 100%


Features Mean

Risk 1.28

Flexibility 1

Return 1.16

Liquidity 0.68

Transparency 0.48

Table4.86 Features present in the ULIP Plans of the investors (N=25)

Services Mean







Options No. of Respondents Percentage

Yes 17 68%

No 8 32%

Total 25 100%

Table 4.88 Continuation with same company

Features Mean

Return 1.28

Tenure Of Investment 0.62

Tax Benefit 0.76


Riders 0.12

Brand Value of company 0.8

Table 4.89 Features they look into (N=100)

Features LIC ICICI Kotak SBI Life

Premium Allocation Charge after 1st yr

More than 15%

11%-15% and more than 15%

6%-10% 6%-10%

Premium Allocation Charge after 5th yr

2.1%-3% 1%-2% 1%-2% 1-2% or Nil

No. of free switches 4 4 4 More than 4

Cost of extra switch Rs 100-200 Rs 100-200 Rs100-300 Rs100-200

Return after 1st yr 0%-9% 0%-9% 0-9% 0%-9%

Return after 3rd yr 0%-9% 0%-9% & 9%-12%

0%-9% 0%-09%

Risk Present Present Present Present

Flexibility Present Present Neutral Present

Return Present Present Present Present

Liquidity Present Present Neutral Present

Transparency Neutral Present Neutral Neutral

Table 4.90 Comparison on different parameters

Services LIC ICICI Kotak SBI

Employee’s

Behavior

Satisfied Satisfied Satisfied Satisfied

Premium

Collection

Procedure


Providing latest

information


Claim Settlement

Procedure

Neutral Satisfied Satisfied Neutral

Grievance

Handling Time

Satisfied Neutral Neutral Neutral

Continuation Yes Mix Mix Yes

Table 4.91 Satisfaction from the company

FINDINGS

LIC enjoys credibility over other private players in the industry. People look for security over returns in market linked plans.

People are investing in ULIPs to get high returns

and fulfill family responsibilities. People are showing interest in private companies

because of their services. The premium allocation charges are higher in

the beginning of the policy term.

CONTD, Return, tenure of investment, tax benefit, insurance

coverage and brand name are considered before purchasing any ULIP plan.

People look for returns, tenure of the plan, tax

benefit, sum assured in ULIP plans.

People mostly go for Wealth Creation Plans.

SBI Life Plans give high returns and number of free switches.

SBI Life and LIC customers are satisfied from their

companies.

RECOMMENDATIONS Employees should be given more training about products,

as this will help them to explain and guide the customers better.

Motivation, immediate rewards and better incentive

packages can also help them to do better.

Focus should be given on capital guarantee products.

More promotional activities should be undertaken to make

the investors aware of Money Matter Inc.

Complete information regarding the plans should be given

to the investors at the time of investment. It should include all the hidden charges as well.

Presentation pallavi

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