7/29/2019 Children Insurance policy
1/43
A DISSERTATION
COMPARATIVE STUDY OF ICICI
PRUDENTIAL AND HDFC IN REFERENCE
TO CHILDREN INSURANCE POLICY
7/29/2019 Children Insurance policy
2/43
CONTENTS
CHAPTER 1:Introduction of Children Insurance Policy
NEED OF STUDY
OBJECTIVES OF STUDY
RESEARCH METHODOLOGY
CHAPTER 2: REVIEW OF LITERATURE
CHAPTER 3: COMPANY PROFILE OF ICICI PRUDENTIALAND HDFC STANDARD AND ITS SCHEMES
CHAPTER 4: COMPARISON OF SCHEMES ON THEBASIS OF THESE FEATURES :
Min / Max Term child
Min / Max Age of Child
Min / Max Age of Parent
Payment Modes
7/29/2019 Children Insurance policy
3/43
Life Assured
Beneficiary
Benefit
Structure On Death of parent.
CHAPTER 5: ANALYSIS AND INTERPRETATION
CHAPTER 6: CONCLUSION
CHAPTER 7: FINDINGS
CHAPTER 8: SUGGESTIONS
REFERENCE
7/29/2019 Children Insurance policy
4/43
IntroductionCHILDREN INSURANCE POLICY:
As a loving and caring parent, you have big dreams for yourchild and you want to make those dreams come true. To bringyour dreams to life, you need an investment that is designed to
provide adequate money for key educational milestones inyour child's life, no matter what happens.
A child plan helps you in two ways:
(a) Saving and accumulating amount over many years so that theamount can be used for childs education or marriage
(b) In case of death of insured, there is substantial amount payoutwhich can be used to ensure childs future and it is not affecteddue to financial constraints.
7/29/2019 Children Insurance policy
5/43
While buying a child plan, one needs to take care that the returnsare in tandem with the rising costs. Additionally, the risk coverage is
comprehensive. In the same regard, most child plans have inbuiltwaiver of premium feature which ensures that on death of insured,the plan continues and payout is made as prescribed schedule. Forincreasing financial security of child, you can go for riders like
Accidental death, critical illness etc which can be added with thebase plan by paying a bit more premium.
7/29/2019 Children Insurance policy
6/43
Chapter 2: REVIEW OF LITERATURE Studies at International Level:
1)Alessandro Cigno , Annalisa Luporin(2000)Transfers To FamiliesWith Children As A Principal-Agent Problem: The relationship
between government and parents is modelled as a principal-agent problem,with the former in the role of principal and the latter in the role of agents.We make three major points. The first is that, if the well-being of the childdepends not only on luck, but also on parental actions that the government
cannot readily observe, the latter can influence parental behaviourindirectly, by conditioning transfers on performance. The second point isthat, if there are market inputs into the making of a happy or successfulchild, which the government can observe, but cannot ascribe to any
particular parent or child because they are bought anonymously, an incometransfer policy can be usefully complemented by an indirect tax policy thatsystematically distorts prices in favour of these inputs. The third is that, if
parents care about their children, insurance and incentive considerationsmust be tempered by the need to compensate parents who have themisfortune of getting a child with low ability or, more generally, less wellequipped to make the most of life. Ways of making these findings operativeare discussed in some detail.
7/29/2019 Children Insurance policy
7/43
2)David I. Levine Un iversity of Californ ia, Berkeley(2008)Effects of HealthInsurance and Selection into Health Insurance: Low income and highmedical expenses can also lead to debt, sale of assets, and removal of children fromschool, especially in poor nations. A short-term health shock can thus contribute tolong-term).At the same time, because households often cannot borrow easily, they
may instead forego high-value care. When they do access care it will often be oflow quality which can lead to poor health outcomes. Theory suggests that healthinsurance can address some of these problems. By covering the cost of care after ahealth shock, insurance can help to smooth consumption, reduce asset sales andnew debt, increase the quantity and quality of care sought, and can improve healthoutcomes.
3)Jonathan Gruber(1996): Health Insurance for Poor Women and
Children in the U.S To low income women and children, has expandeddramatically over the past decade. This expansion provides a `natural laboratory' forlearning about the effect of public health insurance eligibility on insurancecoverage, health utilization, and health outcomes. This paper provides an overviewof what has been learned about these questions from studying the expansions.Medicaid eligibility rose steeply over the 1984-1992 period, but coverage rosemuch less sharply, due to limited takeup of benefits. This is partly due to the factthat many eligibles already had private insurance coverage, and evidence suggeststhat a large share of new enrollees dropped their private coverage to join theprogram. Nevertheless, utilization of preventive care rose substantially as a result ofthe expansions, and there were significant improvements in health outcomes,specifically infant and child mortality. While these mortality reductions came atsignificant cost to the Medicaid program, the cost per life saved was low relative toalternative uses of government funds. These findings highlight both the potentialbenefits of public insurance policy and the importance of appropriately targeting
scarce public health dollars.
7/29/2019 Children Insurance policy
8/43
Studies at National Level:
1)ABHINAV GUPTA(2007Children' s Health I nsurance Patterns):This literaturereview is the first task in an eight month research contract awarded by theDepartment of Health and Human Services, Office of the Assistant Secretary forPlanning and Evaluation (ASPE), to Mathematic Policy Research, Inc. (MPR). Theoverall study objective is to improve understanding of the issues involved inanalysis of children's health insurance patterns. This literature review was designedto identify key analytic questions that are not fully answered from current research.Subsequent tasks will include the design and implementation of further analyses ofuninsured children using the Survey of Income and Program Participation (SIPP)and possibly other data as well. These analyses will benefit from the literaturereview, particularly with regard to the identification of methodological issues inmeasuring children's health insurance patterns. This review also provides a basis of
comparison for key estimates produced in the additional tasks of this effort.2)AHMED KHAN(2007)Parental Health Insurance Coverage as Child HealthPolicy:
One of the policy questions expected to receive considerable attention during theState Childrens Health Insurance Program (SCHIP) reauthorization process iswhether -- and if so, under what circumstances to permit states to use SCHIP fundsto cover parents. This analysis examines research published since 2000 that
explores the relationship between public health insurance coverage of parents andthe rate and effectiveness of coverage among children, as measured by insurancelevels, coverage continuity, and appropriate use of pediatric health care. Theanalysis begins with a brief overview of current Medicaid and SCHIP coverageoptions for parents and children. It then summarizes key findings from the literaturerelated to the impact of covering parents on childrens insurance enrollment. Theanalysis concludes with a discussion of the implications of existing studies for the
question of whether to expand state flexibility to use federal SCHIP allotments tocover parents
7/29/2019 Children Insurance policy
9/43
NEED OF THE STUDY
These are the most leading banks and their schemes
are much better as compare to other banks. This study
is helpful and beneficial for the customers and
investors like customer protection, protectionagainst Accident and disability, development
allowance, facility of provide free money for
educational purposewho invest their money in this
InsuranceCompany
7/29/2019 Children Insurance policy
10/43
OBJECTIVE OF THE STUDY
To study Children insurance policy schemes of
selected companies.
To make a comparative analysis of Childreninsurance policy schemes of selected companies.
To study investors perception towards of selectedbanks about Children insurance policy schemes.
7/29/2019 Children Insurance policy
11/43
RESEARCH MEHODOLOGY :
Research DesignThe research design for this study will be Descriptive as wellas Analytical because it will be carried out with specificobjectives and utilizes the large number of data of thePrivate Sector .
Sample Size
For attaining the different objectives, the following Bankswill be taken for the study purposes
30 investors: (25 HDFC and 25 ICICI PRUDENTIAL)
Duration of the StudyFor the purpose of analysis of data, a period of starts from2009-2012 will be taken into consideration.
7/29/2019 Children Insurance policy
12/43
Sample Data
The relevant Data will be collected from primary sources likeQuestionnaire and Interview.
Secondary sources: Magazines, Web sites, Periodicals,Newspapers and respective banks.
Statistical Tools
For the data analysis various statistical tools like Comparative Analysis
Percentage Method.
7/29/2019 Children Insurance policy
13/43
CHAPTER -2
PROFILE OF ICICI PRUDENTIAL
ICICI Prudential 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 Child Plan Review SmartKid or
Smart Ad:
Good education for ones child is something that will always be a cherisheddream for every parent. And good education means good colleges, which
means need for funding. The education costs are going up tremendously
every year, hence it is necessary to save and invest regularly to build up a
decent amount by the time the child is ready to go to college.
7/29/2019 Children Insurance policy
14/43
CHILDREN INSURANCE POLICYSCHEMES:ICICI Pru Smart Kid Premium Plan:ICICI Pru Smart Kid RegularPremium.ICICI Pru Smart Kid Premier.ICICI Pru Guaranteed SavingsInsurance Plan
7/29/2019 Children Insurance policy
15/43
ICICI Prudential offers 2 child insurance plans to help you protect yourchildsfuture
ICICI Pru Smart KidRegular Premium: It is a traditional plan wherefunds are provided for the needs of the child in the future. regular premiumlife insurance plan, with two options to receive guaranteed educational
benefits, no matter what the uncertainties in your life.
ICICI Pru SmartKid Premier: A regular premium unit linked plan whichensures yourchilds education continues even if you are not around. This
plan helps you invest choose between Fixed Portfolio Strategy and LifeCycle based Portfolio Strategy.
ICICI Pru Guaranteed Savings Insurance Plan: is a non-participatinglimited premium endowment life insurance plan that allows you to enjoythe benefits of a long term savings plan ensuring that you and your familyare free of any financial worries.
7/29/2019 Children Insurance policy
16/43
Key Things to knowKey Aspect Things That You Should Know
Is this plan a ULIP No, ICICI Pru Guaranteed SavingsInsurance Plan is not a ULIP. In this plan
you get a Guaranteed Maturity Benefit
which is not linked to equity market
movements
Is this a one-time payment plan No, ICICI Pru Guaranteed Savings Insurance
Plan is Regular Premium plan in which you need
to invest premiums regularly over a period of
time.
How many years do I need to pay premiums You have a choice of paying premiums regularly
for 7 or 10 years
What is the kind of returns I can expect On maturity, you will get the sum of all
premiums paid along with regular additions
which will be declared at the beginning of every
policy year. To check regular additions declared
in the past
7/29/2019 Children Insurance policy
17/43
Smart Kid Regular Premium:
Plan is a participating endowment regular premium, traditional plan withtwo options to receive guaranteed educational benefits, no matter what theuncertainties in your life. You will always do everything you can, to makesure your child gets whatever he needs to develop his potential and besuccessful. You have big dreams for your child and you want to make thosedreams come true. To bring your dreams to life, you need an investmentthat is designed to provide adequate money for key educational milestonesin yourchilds life, no matter what happens.
Key Benefits of Smart Kid Regular Premium:
Lump sum payment of Sum Assured plus company contributes futurepremiums in the unfortunate event of death of Parent (life assured).
Development Allowance: Under this benefit, a specified amount is paid tothe child every year, in the unfortunate event of death of the parent.
Facility to provide money for key educational expense of the child.
Protection against Accident and Disability: Additional protection againstaccident and disability is provided with the help.
7/29/2019 Children Insurance policy
18/43
Basic features of Smart Kid Regular Premium:
Minimum/Maximum entry age
(Parent)
20-60 yrs
Minimum/Maximum entry age
(Child)
0-12 yrs
Premium paying frequency Monthly, Half-yearly and Yearly
Minimum Premium Monthly, Half-yearly and Yearly
Minimum/Maximum sum assured 1000003000000
Minimum/Maximum Vesting Age 50- 70 yrs
7/29/2019 Children Insurance policy
19/43
Benefits:
Coverage options: Ensure a comprehensive safety net for your child by choosingbetween:
Single lifeInsurance coverage for yourself, and Joint lifeInsurance coverage for both you and your spouse in the same policy
Complete protection: Company will pay Lump sum payment of Sum AssuredPLUS waiver of all future premiums payable under the policy by the Company inthe unfortunate event of death of the Parent
Multiple portfolio strategy: Choose a personalized portfolio strategy from:
Fixed Portfolio Strategy: Option to allocate your savings in the funds of yourchoice
LifeCycle based Portfolio Strategy: A personalized portfolio strategy to create anideal balance between equity and debt, based on your age
Trigger Portfolio Strategy: A unique portfolio strategy to protect gains made inequity markets from any future equity market volatility while maintaining a pre-defined asset allocation.
Flexible premium payment options: You can either pay premium throughout thepolicy term or for a limited period
Loyalty additions: Paid at the end of every fifth policy year, starting from the endof the 10 policy year subject to payment of all due premiums
Partial withdrawals: Facility to provide money at key educational milestones ofyour child
Tax Benefits: On premiums paid and benefits received, as per prevailing tax laws
7/29/2019 Children Insurance policy
20/43
HDFC Children insurance policy:Incorporated in Aug, 2000 HDFC Standard life is one of the leading privatelife insurance companies in India. HDFC Standard Life is a joint venture
between HDFC- Indias housing finance company and Standard plc United Kingdoms savings and investment Company. HDFC Ltd. holds72.43% and Standard Life (Mauritius Holding) Ltd. holds 26% of equity inthe joint venture while the rest is owned by others.
Parenthood brings responsibilities and no one is better judge of that thanyou. Child Plan is a plan specifically designed to take care of financialneeds of your child. Child plan provides with necessary funds that will takecare ofchilds education, marriage etc. By investing small portion of yoursavings you secure the financial end of your child.Child plan of HDFC Life:
HDFC Childrens Plan
HDFC SL Youngster Super II
HDFC SL Youngster Super Premium
7/29/2019 Children Insurance policy
21/43
Features of HDFC STANDARD:
7/29/2019 Children Insurance policy
22/43
HDFC SL YoungStar Super II
There is no bigger joy than being able to fulfill your child's dream on your own.
With HDFC SL YoungStar Super II you can fulfill your child's immediate and
future needs. So tomorrow when your child needs your support you don't have todepend on anyone else.This is a ULIP which aims to help you achieve long term
savings.
Features
F t
http://www.hdfclife.com/KnowledgeCentre/ULIP.aspxhttp://www.hdfclife.com/KnowledgeCentre/ULIP.aspx7/29/2019 Children Insurance policy
23/43
Features
Premium Minimum- Rs. 15000Maximum- No Limit
Sum Assured Minimum- 10 X Annual Premium
Grace Period 30 Days
Plan option You can opt for one of the following two plans
Life option- Death BenefitsLife and Health option Death Benefits + Critical Illness
Benefits
Changing Fund You can change your investment fund choices in 2 waysSwitching
Premium Redirection
7/29/2019 Children Insurance policy
24/43
ADVANTAGES:
You can customize the ideal plan for your child by choosing the premium
you wish to invest along with the Sum Assured, depending on the level ofprotection required.
This plan can be taken by filling Short Medical Questionnaire, which may
not require you to go for medicals. Kindly refer to the product brochure for
details.
You can change your investment fund choices in two ways: Switching: You can move your accumulated funds from one fund to
another anytime
Premium Redirection: You can pay your future premiums into a
different selection of funds, as per your need
Tax benefits are offered under section 80C and 10(10D) of the Income Tax
Act, 1961
7/29/2019 Children Insurance policy
25/43
HDFC SL YoungStar Super Premium
With HDFC SL YoungStar Super Premium you can fulfill your child's immediate
and future needs- all on your own. Start saving now with this unit linked insurance
plan and be assured that savings for your child will continue, even in your absence.
This ULIP plan offers you choice of cover options and benefit paymentpreferences- all designed to suit your needs.
Features
Choice of Plan Options
http://www.hdfclife.com/KnowledgeCentre/ULIP.aspxhttp://www.hdfclife.com/KnowledgeCentre/ULIP.aspxhttp://www.hdfclife.com/KnowledgeCentre/ULIP.aspxhttp://www.hdfclife.com/KnowledgeCentre/ULIP.aspxhttp://www.hdfclife.com/KnowledgeCentre/ULIP.aspxhttp://www.hdfclife.com/KnowledgeCentre/ULIP.aspx7/29/2019 Children Insurance policy
26/43
Choice of Plan Options
Option Death Benefit
(on death of insured
parent during policy
term)
Maturity Benefit
Accelerated Benefit
Plan
Sum Assured payable
immediately on
death + Bonuses
Policy terminates
immediately
OR
Sum Assured +
Bonuses
Maturity Benefit
Plan
No Need to pay
future premiums.
The policy will
continueAND
Sum Assured +
Bonuses
Double Benefit Plan Sum Assured will bepaid on death
No need to pay
future premiums.
The policy will
continue.
AND
Sum Assured +Bonuses
7/29/2019 Children Insurance policy
27/43
Bonuses:
Revisionary bonus is usually declared as a percentage of basic
sum assured of policy.
The bonus is guaranteed to be payable either on death or onmaturity as per the plan choice.
The terminal bonus is sometimes added to a policy on maturity
Premium:
The plan allows you to pay premium on quarterly, half yearly
or annually depending on your convenience. A grace period of
15 days is given for the payment of premium.
Tax Benefits:
Tax benefits could be availed under section 80C and 10 (10D)
7/29/2019 Children Insurance policy
28/43
CHAPTER- 4
COMPARISON OF SCHEMES OF HDFC
STANDARD AND ICICI PRUDENTIAL
Features Stone ICICI Pru Smart Kid HDFC Children's
Plan
Min / Max
Term child
Matures between 22-25
years of the childs age.
Term is 10-25 years
10-25 year
Min / Max Age
of Child
0-12 years N.A.
Min / Max Age
of Parent
20-60 years 18-60 years
7/29/2019 Children Insurance policy
29/43
Payment Modes Regular Regular
Life Assured Child Parents
Beneficiary Child Child / Family
Benefit
Structure
Two Structures
1. When the child
reaches his critical
milestones (Xth, XII th,
Graduation, Post Grad);
% of S A is paid
2. Last 4 years before
maturity; % of SA is
paid over consecutive
yrs
Sum Assured +bonuses paid
on maturity in lump sum
7/29/2019 Children Insurance policy
30/43
On Death of
parent
Child gets the guaranteed
payments as chosen earlier
1) Maturity Benefit Plan:
future premiums are waived;
maturity benefits are paid like
normal on maturity
2)Accelerated Benefit Plan:
Sum assured + bonuses paid
to beneficiary on death &
contract terminates
3)Double Benefit Plan: Sum
assured paid immediately on
death; future premiums arewaived; maturity benefits are
paid like normal on maturity
On Death of child Policy continues as it is. It can benominated to another child in that
case also.
Policy continues.
7/29/2019 Children Insurance policy
31/43
Analysis through QUESTIONNAI RE
Question:DO YOU POSSESS
CH I LDREN I NSURANCE
POLICY?
Options No. of
CUSTOMER
YES 60%
NO 40%
0%
10%
20%
30%
40%
50%
60%
YES NO
Series1
INTERPRTATION: 60% says
YES and 40% says NO this
shows many people buyingChildren Insurance Policy. and
showing interest towards it.
7/29/2019 Children Insurance policy
32/43
Question :WHICH COMPANY YOU ASSOCIATE WITH?
Options No. of
customers
ICICIPRUDENTIAL66%
HDFC
STANDARD
34%
0%
10%
20%
30%
40%
50%
60%
70%
ICICI PRUDENTIAL HDFC STANDA RD
No. of customers
No. of customers
7/29/2019 Children Insurance policy
33/43
WHY DO YOU BUY CHIDREN INSURANCE
POLICYSAFETY FOR
LIFE
30%
MARRIAGE
PURPOSE
20%
EDUCATIONAL
PURPOSE
45%
TAX SAVING
5%
SAFETY FOR LIFE
MARRIAGE PURPOSE
EDUCATIONAL
PURPOSE
TAX SAVING
4
INTERPRETATION: This
shows Children Insurance
Policy mostly buying foreducational purpose than
marriage purpose, safety for
life and at last and least for tax
saving purpose.
7/29/2019 Children Insurance policy
34/43
WHAT FACTORS OF COMPANY INFLUENCE YOU TO
BUYING CHIDREN INSURANCE POLICY?
INNOVIATIVE
PRODUCTS
25%
BETTER
SERVICES
40%
HIGH RISK
COVERAGE
30%
REASONABLE
PREMIUM
5%
0% 10% 20% 30% 40% 50%
INNOVIATIVE
PRODUCTS
BETTER
SERVICES
HIGH RISK
COVERAGE
REASONABLE
PREMIUM
Series1
7/29/2019 Children Insurance policy
35/43
WHICH FEATURES OF COMPANY ATTRACT YOUMOST FOR BUYING CHIDREN INSURANCE POLICY?
GOOD RETURN 35%
ADVERTISMENT 26%
SERVICES 45%
OTHERS 2%0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
GOODRETUR
N
ADVE
RTISMEN
T
SERV
ICES
OTHERS
Series1
7/29/2019 Children Insurance policy
36/43
ARE YOUR COMPANY PROTECT YOU FROM
THE RISK COVERAGE?
Options No. of
custo
mers
ICICI
PRUDENTIAL
57%
HDFC
STANDARD
43%
No. of customers
57%
43%
CIPRUDENTIAL
HDFC
STA
NDARD
No. of customers
7/29/2019 Children Insurance policy
37/43
FROM WHICH FACILITY OF COMPANY YOU
SATISFY MOST?
TERM
DURATION
OF POLICY
55%
TERM
DURATION
OF POLICY
15%
ANNUAL
PREMIUM
30%
55%
15%
30%
TERM
DURATION OF
POLICY
TERM
DURATION OF
POLICY
ANNUAL
PREMIUM
Series1
7/29/2019 Children Insurance policy
38/43
Which company provide better service?
ICICI PRUDENTIAL 62%
HDFC STANDARD 38%
0%
10%
20%
30%
40%
50%
60%
70%
HDFC STANDARD ICICI PRUDENTIAL
Series1
7/29/2019 Children Insurance policy
39/43
Are you satisfied with the provided facilities?
Satisfied with
facilities
No. of
CUSTOMERS
YES 75%
NO 25%
0% 50% 100%
YES
NO
No. of CUSTOMERS
No. of CUSTOMERS
7/29/2019 Children Insurance policy
40/43
CONCLUSION:
ICICI PRUDENTIAL focus on innovative products and better
services than HDFC standard which attract customers most
and focus on the need of customers or annual premium and
bonuses. Advertisement should be create awareness and
interest among customers. Providing policy for securitypurpose and for educational purpose and protect from risk and
any mishappenning .
7/29/2019 Children Insurance policy
41/43
FINDING
People think insurance as a protection tool. People purchase insurance policy mostly for protection
purpose and some of people for educational purpose, andsaving and investment purpose.
The goodwill, services, good return of the company alsoattracts customers toward a insurance company.
People also take insurance policy as a security for theirchildren and protection from risk coverage.
ICICI focus on annual premium and term duration of policythan HDFC STANDARD.
ICICI PRUDENTIAL satisfy most than HDFC STANDARDand provide better services to the customers.
7/29/2019 Children Insurance policy
42/43
SUGGESTIONS
Advertisement should be done on television and especiallyPosters and Banners. This will greatly help in raisingawareness level.
Insurance Companies focus more facilities and services of thecustomers..
The private company should create good relations andcommunication with the customers by maintaining their trust.
Private companies should spread awareness regarding thebenefits of Children Insurance Plans e.g Risk coverage,educational benefits etc.
7/29/2019 Children Insurance policy
43/43
Thank you
Top Related