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CHAPTER-1

INTRODUCTION

Term assurance

It covers the insured for life. This is the most basic plan and people take it

only in combination of other plans.

Endowment plan

It is saving plan that is most popular among respondents. It is suitable to all

classes of people. Moreover it is superior to other saving tools like bank

savings, RDs as it gives returns in addition to risk coverage.

Money back plan

In this plan the insured receives money at regular intervals during the term on

survival. This is most suitable to businessmen who don't want to block their

money and have many other investment opportunities.

Children plan

These policies are best suited for the value conscious customer for planning

children's future education and marriage costs. People find it more attractive

when riders like accelerated benefit and double benefit plan are attached to

the basic plan.

Personal pension plan

This plan is designed to provide an income for life from retirement, with an

option to take the lump sum elsewhere to buy the annuity. It is taken by

people on consideration of old age security. To make pension products Into

attractive saving instruments, simple innovations has madeby Kotak. For

example, their returns are tried to index-linked funds or a specific basket of

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equities. Buyers are allowed to switch funds before the annuities begin and to

invest different amounts at different times.

Single premium whole of life

This is a pure investment plan and is suitable to persons who can afford to

pay lump sum. People found it appealing due to high returns as compared to

fixed deposits (FD) accounts and fewer formalities required.

Unit linked insurance plans

These plans are exposed to market fluctuations and risk attached with that.These plans are suitable to persons who have good information regarding

ebbs and flows of stock market. As bonuses or returns can be withdrawn on

yearly basis with no capital gain tax, ULIP is superior to any other

investment tool like direct investment in stocks and mutual funds. ULIP

offers greater flexibility and transparency to the customers. Introduction of

unit-linked products, particularly at tunes when the stock markets are

exhibiting a rising trend, is a good strategy

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1.1INTRODUCTION TO THE TOPIC

HISTORY OF INSURANCE

Insurance has existed for thousands of years. As with so many things in

facets of our lives, insurance too was born out of a primal need and shaped

by socio-economic realities of the time.

Insurance as we know it today owes its existence to 17th century England. A

form of credit insurance was included in the code of Hammurabi., a

collection of Babylonian laws said to predate the Law of Moses. To finance

their trading expedition in ancient times, ship owners obtained loans from

investors. If a ship was lost, the owners were not responsible for paying back

the loans. Since many ships returned safely, the interest paid by numerous

ship owners covered the risk to the lenders.

That, perhaps, was how insurance made its beginning

It was likewise in a maritime setting that later one of the world's most famous

insurance providers, Lloyd's of London, was born. By 1688, Edward Lloyd

was running a coffeehouse where London merchants and bankers met

informally to do business.

There financiers who offered insurance contracts to seafarers wrote their

names under the specific amount of risk that they would accept in exchange

for a certain payment, or premium. These insurers came to be known as

underwriters. Finally, in 1769, Lloyd's became a formal group of

underwriters that in time grew into the foremost market for marine risks.

The 19th century saw huge developments in the field of insurance, with

newer products being devised to meet the growing needs of urbanization and

industrialization.

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OVERVIEW OF INSURANCE INDUSTRY

INSURANCE IN INDIA :

1818 The British introduce life insurance to India, with the

Establishment of the oriental life insurance company in Calcutta.

1819 Non-life insurance debuts, with Triton insurance company.

1870 Bombay mutual life assurance society is the first Indian owned

life insurer. 1907 Indian mercantile insurance is the first Indian

non-life insurer.

1912 The Indian Life assurance companies act enacted to regulate the

life insurance business. 1938 The insurance Act, which forms

the basis for most current insurance laws, replaces earlier acts.

1956 Life insurance nationalized; government takes over 245

companies and foreign insurers and provident societies. 1956

Government sets up LIC 1972 Non-life insurer nationalized; GIC

set up. 1993 Malhotra committee recommends re- entry of private

players, autonomy to PSU insurers. 1997 Insurance regulator

IRDA (insurance regulatory and development authority) set up.

2000 IRDA starts giving licenses to private insurer; ICICI prudential

and HDFC Standard Life first private life insurers to sell policy.

2001 Kotak Launches own insurance service.

2001 Royal Sundram first non-life insurer to sell policy.

2002 Banks allowed selling insurance plans.

ORIGIN

With the marine route being the bedrock of trade and commerce in those

days the practice of botomry evolved and spread. With the growth of towns

and trade in Europe, medieval guilds pooled in money to protest their

members from loss by fire and shipwreck to pay ransom if they were

captured by pirated and to provide burial and support in sickness and

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poverty. Lloyd's of London, the largest marine insurer today was founded in

1688. The British brought insurance to India in 1818 and the 1st Insurance

Company was the Oriental Life Insurance Company. The Insurance Act 1938

introduced State Control on insurance but even this fails to safeguard

policyholder's interest.

NATIONALISATION

On 19 January 1956 the life insurance business was nationalized. About 245

companies were swooped. 8 months later LIC was formed. Today this

monolith has 2100 branch offices, 8,00,000 agents and offers a bevy of

insurance and investment products. It has created an enviable brand name,

particularly among rural population of country.

Similar circumstances led to the nationalization of non-life. Non-life

insurance was nationalized in 1972. General Insurance Corporation (GIC)

was set up as a holding company, a total of 107 private insurers were merged

and grouped to form GIC's four subsidiaries.

PRIVATISATION

In the early nineties the government went on a reform binge and started

loosing control on Indian Industry. In 1993 the Government appointed

Malhotra Committee, headed by former RBI Governor R.N. Malhotra to

draw blueprint for insurance sector reforms. The panel submitted its report a

year later recommending privatization. Potential private entrants therefore

expect to score in the area of customer service, speed and flexibility. They

point out that then" entry will mean better products and choice for the

customers. The liberalization of insurance creates an environment for the

generation of long-term contractual funds for infrastructure investment.

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INSURANCE SECTOR EMERGING AREAS

Some of the emerging areas for insurance sector in India are:

1. Demand for Pension Plans : Two relatively modern trends affect life

insurance business in Indiasignificantly. The first one is thejoint family system

which worked like an insurance arrangement. With more and more nuclear

families becomingthe rule, there it a greater demand for life insurance cover the

second trend is that elderly are increasingly having to fend for themselves. In

1990, India had about 54 million people above the age of 60. This number is

expected to increase to 100 million by 2004, and to almost 10% of the totalpopulation by 2010.

Thus future senior citizens look towards planning for their own old age and the

need for pensions and annuities. These two trends portend a large and growing

market for life insurance in India.

2. Separateness of Banking and Insurance: There is lot of speculation

whether banks should be allowed to operate in the insurance sectors. The reasons

for allowing banks are competition would enhance Efficiency and benefit

consumers, public-men enjoy a One- Stop Financial Service Paradigm, banks

could recoup some of the lost business to securities firms and there would be

synergies in operating insurance and banking. The reasons against are - it would

create unhealthy concentration of market power, it would expose banks to

additional and unnecessary risks and banks would have unfair advantages since

they have detailed information on their customers financial position.

3. Role of Information Technology :The Business of selling life insurance

requires assessing the profileof the customer and assigning theright policy. This

process is facilitated by a database and is Completely driven by information

technology.

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4. Using Postal Network : Another important factor is allowing the existing

network of 1,50,000 branch offices of post and telegraph to sell life insurances

andrelated financial products. Alreadypostal banks generate more depositsthan

all commercial banks and hence their role can hardly be overemphasized. Post

offices can also act as avenues or agents of non-life insurance companies.

However they cannot be expected to underwrite risks.

5. Creating Insurance awareness: It is the need of hour to create

insurance awareness among the general public. It will require a whole lot of

efforts on the supply and distribution side.

6. Innovative Products: Insurance companies should offer innovative

products to tap hugeamount of resources for the developmental activities.

In developed economies, insurance products are sold Focus of insurance

industry is changing towards providing a mix of protection / risk cover and long -

term investment opportunities.

WHAT IS LIFE INSURANCE?

Life insurance is all about making sure your family has adequate financial

Resources to make those plans and dreams come true. It provides financial Protection to

help your family or business to manage after your death. The life insurance deals with

risks relating to life of human being. The circumstances (perils) that creates the loss or

damage (risks) are mainly two, Death and old age. Insurance does not prevent either. It

can mitigate the consequences in those circumstances.

1). Life insurance enhances the existing standard of living.

2). Life insurance helps people live financially solvent lives.

3). Life insurance perpetuates life, liberty and pursuit of happiness.

4). Life insurance is a way of life.

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NEED OF LIFE INSURANCE?

Life insurance has come a long way from the earliest days when it was originally

conceived as a risk covering medium for short periods of time,overing more established,

it was realized what a useful tool it was for a number of situations, including

a) Temporary needs / threats

The original purpose of life insurance remains an important element namely

providing for replacement of income on death etc.

b).Regular Savings

Providing for ones family and oneself, as a medium to long term Exercise

(through a series of regular payment of premises). This has become more relevant in

recent times as people seek financial independence for their family.

c). Investment

Put simply, the building up of savings while safeguarding it from the ravages of

inflation. Unlike regular savings products, investment products are traditionally lump

sum investments, where the individual make a one off payment.

d).Retirement

Provision for later years becomes increasingly necessary, especially in a changing

cultural and social environment. One can buy a suitable insurance policy, which will

provide periodical payments in ones old age.

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INSURANCE AS AN INVESTMENT

Flexible Investment and protection solutions

In this category we have two products,

Regular premium unit-linked Single premium unit- linked

Investment plan. Investment plan.

Benefits

Death Benefit: In case of unfortunate death of the life assured the death benefit will be

higher of the sum assured or the value of the units at the time of death, less any

withdrawals made before death. However, in case the life assured is less than 7 years of

age at time of death; the value of units will be paid.

Options

Liquidity Option: There is no maturity date of this policy. Any time after you have paid

the contribution for 3 full years, you can make partial withdrawals at no penalty to meet

your immediate requirements. The minimum amount of partial withdrawal requirements.

The minimum amount of partial withdrawal has to be Rs.2, 000. You can also opt for

complete withdrawal (surrender) after one fill years premium has been paid.

Flexibility

Increase your Sum Assured

At various stages of your life, your liabilities may increase marriage, children, a new

home, children going abroad for higher studies. Life Time II offers you the flexibility to

increase your death benefit anytime during the term, depending upon your changing

protection requirement. However, any such increase would be subject to underwriting at

the time of such increase. This increase is over and above the increase in Sum Assured

under Level2.

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Decrease your Sum Assured

Over time, your liabilities may decrease too various loans get paid off, your children

become independent and so on. With Life Time II, you also have the option of decreasing

your Sum Assured. However, any increase after the decrease in Sum Assured will besubject to under writing. Any change in Sum Assured can be done only at policy

anniversary.

A. Flexible contribution

You can increase and decrease your annual contributions. You can up to 20% of the

initial contribution choose the maximum decrease in the contributions at the time of

inception of the policy. However, under no circumstances can the contribution be reduced

to below the minimum premium allowed under the plan at that time, or 80% of the initial

chosen contributions, which ever is higher. You have the flexibility to increase your

contribution without any limits. Any such increase or decrease in contribution will only

be allowed on policy anniversaries.

B. Automatic Cover Continuance

This is a facility provided by the product wherein, the insurance cover under the policy

continues even if there is a temporary break in the payment of annual contribution after 3

years premiums have been paid. During this period, the cover continues by deducting

mortality charges (in terms of units) from the value of investments. However, this facility

can be availed subject to two conditions:

i) The break in contribution can only be availed, in case contribution till those dates

are paid off.

ii) Until 10 years premiums have been paid, this facility can be availed for a

maximum of two years at a time.

After 10 years premiums have been paid, you can avail of this facility without the

above-mentioned conditions.

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Other Benefits:

a. Additional allocation of units to policyholders

As a policyholder you would be provided with additional allocations on a periodic

basis. These would depend upon the total value of units of the policy. The schedule of

the additional allocation would be as follows:

Average Value of Units* Additional allocation as a % of Average

Unit Value


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Before 1 Years contribution is paid Nil

After 1st years Contribution is paid 25% of Value of Investments

After 2nd years Contribution are paid 40% of Value of Investments

After 3rd years Contribution are paid 60% of Value of Investments

After 4th years Contribution are paid 100% of Value of Investments

He is allowed to surrender after1 years contribution is paid. The surrender values

available to you as the policyholders will be as follows:

c. Loan against the policy

After the policy has acquired a surrender value, you can avail of a loan under this

policy. Interest will be charged on the loan, as per the prevailing rate at that time. No

partial with drawls can be made during the loan period. In case the loan amount along

with the accrued unpaid interest becomes equal to the value of the units, then the

policy will be terminated. Loans will be subject to the terms and conditions applicable

to loans at the time of availing the loan.

What are the charges?

A. Premium Allocations:the premium allocation would be based on the annual

contribution limits. The yearly allocation schedule would be as follows:

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% Allocation of the Premium

Contribution

Range (Rs)

1st Year 2nd-5th Year 6th-10th

Year

11th Year

onwards

18,000-35,999 81% 96% 98% 99%

36,000-99,999 83% 96% 98% 99%

100,000-4,99,999 85% 96% 98% 99%

5,00,000+ 88% 96% 98% 99%

b. Administrative and Fund Management charges:An administrative charge

of Rs. 60 per month will be levied by cancellation of units. The annual fund-related

charges on the various funds are as follows:

Fund Type Investment Charge

Maxi miser II 1.50%

Balancer II 1.00%Protector II 0.75%

Preserver II 0.75%

c. Mortality charges: This charge will be deducted on a monthly basis on the

calculated value of life cover. Life cover is the difference between the Sum Assured and

the value of investments. These are a set of renewable charges depending on the age of

the policyholder, at the time of deduction of morality charges. Age-wise mortality rates

are available in the mortality table. The rates applicable for the two Sum Assured levelswould be different.

Age at entry (years) Mortality Charges (per Rs.1000 sum at risk)

Level 1 sum assured Level 2 sum assured

30 1.44 1.6140 2.39 2.73

50 5.59 6.46

d. Top-up charges:Top-up charges will be 1% of the Top-ups.

e. Switch charges:Expect for the 4 free switches allowed every policy year, all

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other switches will be charged at Rs. 100 per switch.

What are the limits of conditions applicable? (For Life Time II)

Minimum age at entry: 0 years (18 years for Level to Sum Assured Option)

Maximum age at entry: 60 years (35 years for Level Sum Assured Option)

Maximum age of cover: 70 years

Add-on Riders

We ensure that you are prepared for any eventuality, with a choice of riders along with

the Death Benefits to give you total protection all at a marginal extra.

1 Accident and Disability Rider:

In the unfortunate event of accidental death, apart from the emotional trauma, there

are financial liabilities a family must face. This rider offers cover against Accident

and Disability. In the event of death due to accident, the nominee gets and additional

Sum Assured under the rider.

i) In case of accidental death while traveling by mass surface transport, the

nominee gets twice the Sum Assured under the rider.

ii) In the event of total and permanent disability due to an accident, which

impairs ones capacity to earn, 10% of the Sum Assured is paid every year for

10 years.

2 Waiver of Premium Rider (Life Time II Only): This rider pays the

contributions to the fund on your behalf in case of a total and permanent disability

due to an accident. This benefit is provided till the end of the rider term. The

minimum age of entry is 18 years and the maximum age of entry is 55 years. The

maximum premium that can be waived under this rider is Rs. 10,00,000. This

benefit is provided for a maximum of 30 years subject to a maximum age of 65

years, for expiry of this cover. The minimum term is 10 years.

3 Critical Illness Rider: In this event of the life assured contracting any of the

specified critical illness, maximum age of entry is 55 years. Minimum Sum

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Assured is Rs. 1, 00,000 and maximum Sum Assured is Rs. 10, 00,000.

For further details on the Riders, please call on the numbers provided and ask for the

Rider brochure.

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Key Benefits of Life Insurance

Need of the life Insurance

Today, there is no shortage of investment options for a

person to choose from. Modern day investments include

gold, property, fixed income instruments, mutual funds and

course, life insurance. Given the plethora of choices, it

becomes imperative to make the right choice when

investing your hard-earned money. Life insurance is a

unique investment that helps you to meet your dual needs - saving for life's important

goals, and protecting your assets. Let us look at these unique benefits of life insurance in

detail.

Asset Protection: From an investor's point of view, an investment can play two roles

- asset appreciation or asset protection. While most financial instruments have the

underlying benefit of asset appreciation, life insurance is unique in that it gives the

customer the reassurance of asset protection, along with a strong element of asset

appreciation. The core benefit of life insurance is that the financial interests of ones

family remain protected from circumstances such as loss of income due to critical illness

or death of the policyholder. Simultaneously, insurance products also have a strong

inbuilt wealth creation proposition. The customer therefore benefits on two counts and

life insurance occupies a unique space in the landscape of investment options available to

a customer.

Goal based savings :Each of us has some goals in life for which we need to save.

For a young, newly married couple, it could be buying a house. Once, they decide to start

a family, the goal changes to planning for the education or marriage of their children. As

one grows older, planning for one's retirement will begin to take precedence. Clearly, as

your life stage and therefore your financial goals change, the instrument in which you

invest should offer corresponding benefits pertinent to the new life stage. Life insurance

is the only investment option that offers specific products tailormade for different life

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stages. It thus ensures that the benefits offered to the customer reflect the needs of the

customer at that particular life stage, and hence ensures that the financial goals of that life

stage are met. The table below gives a general guide to the plans that are appropriate for

different life stages.

Take a look at the difference insurance makes

The table below compares an annual investment of $4 000 over a 10 year period on a tax-exempt life insurance policy for $400 000 with a similar$4 000 investment that is taxedannually.

At the end of the 10 years period when the child turns 18 and goes to university, thegrandparent either transfers the life insurance policy or gives the child the investment,depending on the initial investment choice.

Over the next 5 years, the student withdraws $5 000 annually from the savings portion ofthe life insurance policy to cover tuition expenses.

Compare the benefits:

Life Insurance vs. Regular Taxable Investment

We have assumed a 6% rate of return on all investments in calculating these figures. Thegrandchild's tax rate is 22.20% and the grandfather is 37.16%.

*After tax capital accumulated

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The advantages of a life insurance savings plan are plain for all to see! The higher thereturn, the greater the benefit you enjoy with Universal Life Insurance.

Other advantages

Life Insurance's advantage as a tax-sheltered investment

Life insurance could have two roles as a tax-sheltered

investment:

The earnings on a cash-value policy are not

taxed until you take them out.

The proceeds of a death benefit settlement

are not taxable to your survivors.

Death benefit is not taxable for your survivors, and using the same logic, you may

compare the taxable versus the non-taxable gain: Let's assume that you currently earn

$80,000 a year, and you buy a $200,000 life insurance policy to help your family pass

two-and a half years without your income. If you die, your survivors get a full $200,000,

and without tax.

Because the proceeds for death settlement and the earnings of a cash-value life insurance

policy are both tax deferred, they serve as excellent tax shelters.

INCOME TAX GROSS HOW MUCH TAX KOTAK LIFE PLANS

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SECTION ANNUAL

SALARY

CAN YOU SAVE?

Sec. 80CAcross All

income Slabs.

Upto Rs. 33,990 saved

on investment of

Rs. 1,00,000.

All the life insurance plans.

Sec. 80 CCCAcross all

income slabs.


on Investment of

Rs.1,00,000.

All the pension plans.

Sec. 80 D*Across all

income slabs.


on Investment of

Rs. 10,000.

All the health insurance

riders available with the

conventional plans.

TOTAL

SAVINGS

POSSIBLE **

Rs. 37,389

Rs. 33,990 under Sec. 80C and under Sec. 80 CCC , Rs.3,399 under

Sec. 80 D, calculated for a male with gross annual income

exceeding Rs. 10,00,000.

Sec. 10 (10)DUnder Sec. 10(10D), the benefits you receive are completely tax-free,

subject to the conditions laid down therein.

* Applicable to premiums paid for Critical Illness Benefit, Accelerated Sum Assured and

Waiver of Premium Benefit.

** These calculations are illustrative and based on our understanding of current taxlegislations, which are subject to change.

Please contact your tax consultant for exact calculation of your tax liabilities.

Unique advantages of life insurance as an investment

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Another advantage of having life insurance is to use it as

part of your investment plan. Most financial advisors would

encourage you to have balanced investments so that if one

kind of investment goesdown (in the stock market, for

example), another one will likely go up (such as bonds or

real estate).

By using balanced portfolio and investments diversification,

you can compensate loss in one area by having some assets

in the other areas that is profitable.

Some life insurance policies are actually long-term investments, which you can

contribute to and withdraw funds from before you die. The cash-value policies for whole

life and universal life insurance are actually can be considered as savings accounts that

will accrue cash value over time and also pay for your protection. Although these policies

dont provide highest interest rates available, they are untaxed earnings, so you get a

higher return than simply putting your money in a savings account on which you must

pay taxes. This kind of life insurance should be your priority in choosing a life insurance

plan.

Life Insurance as the financial protection for beneficiaries

The need to protect your survivors also means to replace the income you bring in if youdie prematurely. Perhaps, you spend large part of your earnings on the costs of bringingthem up. If you die, the life insurance death benefit replaces those earnings so that they

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wont have a better financial situation. If you have a mortgage on your house, a lifeinsurance death benefit can support your family to stay in the home even if you die.Life insurance can help solve the difficulty of the need to totally change your way of life because you lose half or more of your income.Lastly, if you are part-owner in a business, the business may purchase a life insurance

policy on you so that if you die, your partner can use that death benefit to buy out yourshare of the business from your heirs, which in turn would also benefit your survivors bybringing them much needed money.

MYTH ABOUT LIFE INSURANCE

Life Insurance Myth #1: Life insurance is unnecessary for

elderly

A few decades ago being older is meant "more than 50".

But many people need life insurance at 50, 55, 60 or 65.

Age is not always a reason to forgo life insurance. Even

the so-called "old" people should, because they need

income protection for their survivors if the head of

household or primary caregivers die prematurely. People

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in their 50's and 60 (and sometimes into their 70s) are often in their peak earnings

moments and have large family responsibilities.

You can give your family time to adjust to your death without having to change their

usual standards. Today, many more people in their 50's and 60 are continue to support

young children. If a woman has a child when she was 40 or 42, that the child will still in

college when her mother is 60 years old. Or let's suppose you have a non-working

spouses and you die at the age of 60 years, he or she may not be able to find a decent job

that provides an income comparable to keep the same standard of living.

Many elderly people actually need more life insurance for a number of reasons:

You may have less time to compensate for the loss of revenue.

You may find that inflation has cut into the value of police insurance. You have a greater need for estate planning that you are older because you

have less time to carry out your plan.

You have a greater need for tax planning as you age because you are very

likely to earn more, and life insurance

It can play a significant role in your tax planning.

Life Insurance Myth #2: Life insurance is a bad investment

Life insurance may not be the most profitable

investment available, but it is rarely bad one either. If

you measuring an investment only in the amount that

you get in return, Life insurance may or may not be a

good investment. When you are planning to buy a life

insurance policy, understands that you will pay your survivors with the same money. If

your family is guaranteed to get more than the money that you spend then , life insurance

is a good investment. If your family will get less, it's not a good investment.

However, life insurance is much more than seeking for profitable return on investment.

Life insurance also offers protection for your dependents and peace of mind that your

family is better taken care of.

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If you are looking for a pure return on capital, you will find many more lucrative

investment, even tax-deferred or taxfree advantages. The primary function of life

insurance is not as an investment but as a protection. No other investment cCan offer the

same degree of protection for your family.

Life Insurance Myth #3: I only need life insurance if I have children

Most people think they need life insurance only if they have a family - to

ensure that victims are not left without proper medical care, due to the

lack of fund. Life insurance is important for several other reasons, which

you can read in more detail later in this blog. A single person with

ordinary lifestyle might still need life insurance coverage.

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The Two Drawbacks Of Investing In Life Insurance

Tax-sheltered growth in

life insurance is great unless you're forced to compromise with

1. limited investment choices

2. relatively high Management Expense Ratios (MERs)

These two criticisms have been levied against life insurance. There's a feeling that it's

better to Buy Term and Invest the Difference. Insurance investment choices have evolved

to better suit the needs of active investors. Here's a history lesson.

Passive Investors

Whole life insurance gave no choice of investments. The insurer made the investment

decisions and you got whatever returns resulted. Rather than blindly trusting the insurer,

most Canadians wanted more control.

In response, Universal life (UL) insurance was developed and gave let you choose fixed

interest investments. Since the highest tax rates are on interest, these investment are ideal

for tax sheltered growth. But this is a small subset of the investment universe. And

unappealing to active investors.

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Active Investors

Universal life insurance evolved to add indexes as choices for a "buy and hold" portfolio.

A handful of mutual funds may also be available. However, you can't invest in vehicles

like real estate, your own business or Exchange-Traded Funds (ETFs). Also, the MERs

are generally higher inside UL because of Investment Income Tax (IIT), a hidden tax

which adds about 0.5% (50 bps) to the Management Expense Ratio.

What good is investing in UL when the investment choices are limited and the MERs are

relatively high? Buying term and investing the difference outside seems appealing. There

is a solution.

Investing Outside

You can use a cash-rich UL policy as collateral for investment loans. Besides getting tax-

sheltered growth inside the policy, you can get three advantages by leveraging:

unlimited investment choice: you invest the way you normally invest tax deductible loan interest tax savings on a portion of the premium when the lender requires insurance to

secure the loan

Next time we'll look at "10-8" financial leveraging, a recent innovation which gives youthe advantages of normal investing while using life insurance to reduce the risks ofleveraging.

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BIRLA SUN RISE life Insurance is a Worthwhile Investment

BIRLA SUN RISE life insurance policies are useful because they can better serve the

unique needs of customers Although you may not have any dependents, a BIRLA SUN

RISE life insurance policy can help you to begin formulating a plan that will protect your

assets and finance your final expenses. Multiple types of affordable plans and options

from which you can choose are available.

And it is easy to qualify for BIRLA SUN RISE life insurance. There is no medical exam;

all you have to do is answer some health questions. It is important to seek out a policy

that will not be cancelled just because you have grown older.

For example, your top priority should be purchasing an amount of BIRLA SUN RISE life

insurance that will provide adequate coverage for burial and funeral costs. 1Funeral costs

average over $6500 and Social Security provides only $225. Naturally, most people dont

want to put that kind of burden on their loved ones. Also, you must consider the

likelihood of incurring medical bills or other outstanding debts that will need to be

immediately addressed. This is important because even if you leave your family a large

nest egg, they may have to wait a long time to receive any money from your estate.

Meanwhile your loved ones could be responsible for paying your outstanding debts and

other expenses.

Probate is a process that freezes your assets and can take a long time, anywhere from 6-

18 months.After probate, any further debts that are still outstanding will be either taken

from your estate or inherited by your loved ones. As a result, they may have to borrow

the money or take the necessary funds from their savings. In contrast, there are no

restrictions on how your loved ones may use the proceeds from your BIRLA SUN RISE

life insurance policy. The money can be used for any expense, and your loved ones are

usually given this tax free money within 2 weeks. Therefore, your final expenses will not

rest on your family.

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Tips to Getting Life Insurance

If you need life insurance you should determine how much insurance is

appropriate and the type of life insurance policy that

would best meet your familys needs. Do we have a life

insurance policy equal to the value of the business,

simple, investment grade life insurance?

Your life insurance quote will be less once you have got

one year smoke free under your belt. I had a renewed

sense of self-confidence and hope for my health, auto and life insurance

needs. Firstly, a Life Insurance policy combined with Critical Illness cover

will work out significantly cheaper than buying two separate policies.

This agreement is funded buy a small business life insurance policy specially

bought for that purpose. However, in the authors view it will take more than

a decade to get people covered by life insurance above the 50% level. = Life

Insurance Can Help Pay for the Care and Education of Your Children = If

you are a family with special needs children, you may be paying for special

tutoring or child care.

To make sure that you will be able to pay it back at the end, you take out an

endowment policy with a life insurance company. These policies will enable

you to convert your current term coverage to permanent life insurance at a

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later date, and generally a medical exam is not required.

Life Settlement Regulations As of June, 2003, eighteen (18) states have

enacted statutes addressing the sale of life insurance policies insuring non-

terminally or chronically ill individuals and an additional seventeen (17)

states have laws that only regulate the sale of life insurance policies insuring

terminally or chronically ill individuals.

Life insurance buys you the time you need. Other Options If you come to the

conclusion that selling your life insurance policy is not for you, there are

other options (though none that would provide you with such a large lump

sum). The basic idea behind life insurance is that if you die prematurely,

there will be a pot of money there to take care of your loved

Senior Life Settlement Industry focus all the effort on senior citizens, who

possessing an unwanted or unneeded life insurance policy, decide to sells life

settlements to a third party company instead of surrendering it back to their

default life insurance company. For those who are not terminally ill, selling

the life insurance might be a good idea for a number of reasons. As a Life

Insurance person, I always try to put myself in a position to win.

Not the same way you would commit to a life insurance policy premium.

Also referred to as second-to-die life insurance, common abbreviations are

SWL for survivor whole life and SUL for survivor universal life. These jobs

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fall under Civil Service and, as such, offer excellent benefits, including

generous health plans, thrift savings plans, life insurance, annual leave, sick

leave, and a student loan repayment plan.

In a guaranteed or non-profit endowment policy, the life insurance company

agrees to pay the amount of money you borrowed at the end of the term (or

on your death, if you die before then) and does no more than that. Im in

Hardware Im a Plumber I sell life insurance and used cars, thinking about a

Joint Life Insurance Policy.

Come and type in life insurance quote, notify your husbands employer and

file for any benefits owed you, such as pension income, life insurance and

health insurance coverage. Well, there is a reason you are interested in

purchasing a term life insurance policy in the first place

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CHAPTER-2

Company Profile

Established in 2000, Birla Sun Life Insurance Company Limited (BSLI) is a joint venture

between the Aditya Birla Group, a well known and trusted name globally amongst Indian

conglomerates and Sun Life Financial Inc, leading international financial services

organization from Canada. The local knowledge of the Aditya Birla Group combined

with the domain expertise of Sun Life Financial Inc., offers a formidable protection for

its customers future. With an experience of over 9 years, BSLI has contributed

significantly to the growth and development of the life insurance industry in India and

currently ranks amongst the top 5 private life insurance companies in the country. Known

for its innovation and creating industry benchmarks, BSLI has several firsts to its credit.

It was the first Indian Insurance Company to introduce Free Look Period and the same

was made mandatory by IRDA for all other life insurance companies. Additionally, BSLI

pioneered the launch of Unit Linked Life Insurance plans amongst the private players in

India. To establish credibility and further transparency, BSLI also enjoys the prestige to

be the originator of practice to disclose portfolio on monthly basis. These categorydevelopment initiatives have helped BSLI be closer to its policy holders expectations,

which gets further accentuated by the complete bouquet of insurance products (viz. pure

term plan, life stage products, health plan and retirement plan) that the company offers.

Add to this, the extensive reach through its network of 600 branches and 1,75,000

empanelled advisors. This impressive combination of domain expertise, product range,

reach and ears on ground, helped BSLI cover more than 2 million lives since it

commenced operations and establish a customer base spread across than 1500 towns and

cities in India. To ensure that our customers have an impeccable experience, BSLI has

ensured that it has lowest outstanding claims ratio of 0.00% for FY 2008-09.

Additionally, BSLI has the best Turn Around Time according to LOMA on all claims

Parameters. Such services are well supported by sound financials that the Company has.

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The AUM of BSLI stood at Rs. 8165 crs as on February 28, 2009, while as on March 31,

2009, the company has a robust capital base of Rs. 2000 crs.

Vision

To be a leader and role model in a broad based and integrated financial services business.

Mission

To help people mitigate risks of life, accident, health, and money at all stages and under

all circumstancEnhance the financial future of our customers including enterprises

Values

Integrity Commitment Passion Seamlessness Speed

A US $28 billion corporation, the Aditya Birla Group is in the league of Fortune 500

worldwide. It is anchored by an extraordinary force of 100,000 employees, belonging to25 different nationalities. The group operates in 25 countries across six continents truly

India's first multinational corporation. Aditya Birla Group through Aditya Birla Financial

Services Group (ABFSG), has a strong presence across various financial services

verticals that include life insurance, fund management, distribution & wealth

management, security based lending, insurance broking, private equity and retail broking.

The seven companies representing ABFSG are Birla Sun Life Insurance Company, Birla

Sun Life Asset Management Company, Birla Sun Life Distribution Company, Birla

Global Finance Company, Birla Insurance Advisory & Broking Services, Aditya Birla

Capital Advisors and Apollo Sindhoori Capital Investment. In FY 2008-09, the

consolidated revenues of ABFSG from these businesses crossed Rs. 4763 crores,

registering a growth rate of 36%.Sun Life Financial is a leading international financial

services organisation providing a diverse range of protection and wealth accumulation

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products and services to individuals and corporate customers. Chartered in 1865, Sun

Life Financial and its partners today have operations in key markets worldwide,

including Canada, the United States, the UnitedKingdom, Ireland, Hong Kong, the

Philippines, Japan, Indonesia, India, China and Bermuda. As of December 31, 2008, the

Sun Life Financial group of companies had total assets under management of $381

billion.

Board of Directors

Mr. Kumar Mangalam Birla

Chairman, The Aditya Birla Group

Mr. Birla is a Chartered Accountant and has also earned an MBA (Masters in

Business Administration) from the London Business School,London. He is the Chairman

of the Aditya Birla Group, which is among India's largest business houses. Among its

major companies in India are Grasim, Hindalco, UltraTech Cement, Aditya Birla Nuvo

and Idea Cellular and globally Novelis, Minacs, Aditya Birla Minerals, Aditya Birla

Chemicals. Its JV operations include Birla Sun Life Asset Management Company, Birla

Sun Life Distribution Co. Ltd and Birla Sun Life Insurance Co. Ltd. The media has

showered various accolades on him. Between 1997 to-date, India Today has named him

among the top 5 in their "High and Mighty" Power List and The Economic Times -

among the top 10 mostinfluential Leaders. The NDTV, Star Plus "India Business Week"

designated him as "The Businessman of the Year". Global Finance has cited him among

the 10 Super Stars of Corporate Finance.Business World ranked him among the top 10

of India's most admired and respected CEOs and the top CEO of the coming millennium,

and Hindustan Times named him as "The Businessman of the Year" as well. He is also

on the Board of various companies.

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Mr. Ajay Srinivasan

Chief Executive Financial Services Aditya

Birla Group

Mr. Srinivasan holds a Bachelor of Arts degree with Honours in Economics from St.

Stephens College, University of Delhi and an MBA from the Indian Institute of

Management, Ahmedabad. He is the Chief Executive, Financial Services and Director,

Corporate Strategy and Business Development at the Aditya Birla Group since July 2007.

In his role as Chief Executive, Financial Services, Aditya Birla Group, he sets the

strategic direction and vision and provides operational leadership for the Groups

Financial Services business. In his role as Director, Corporate Strategy and Business

Development, he Directs and strategies on business portfolio issues for the Aditya Birla

Group focusing on the long-term sustainability, profitability and value creation of the

Groups businesses. Prior to joining the Aditya Birla Group, Mr. Ajay Srinivasan was

associated with Prudential Corporation Asia, Threadneedle Asset Management, etc. at

senior levels. With a proven track record for building successful businesses, his

experience in the financial services industry spans almost two decades.

Mr. Bishwanath Puranmalka

Director Financial Services Aditya Birla Group

Mr. Puranmalka is a commerce and law graduate and also a Fellow member of the

Institute of Chartered Accountants of India and Institute of Company Secretaries of India.

He is the Director of Aditya Birla Groups Financial Services and has a total working

experience of more than 45 years. He has been associated with the Aditya Birla Group in

various capacities since the inception of his career. He has a rich experience in

implementation and running of several manufacturing, training, service industry business

and setting up Greenfield manufacturing operations. He is on the Board of various

companies.

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Mr. Donald Stewart

Chief Executive Officer Sun Life Financial

Mr. Donald A. Stewart graduated from the University of Glasgow in 1968 withfirst class honours in Natural Philosophy. He joined Sun Life Financial in 1969 in

London, England, and qualified as a Fellow of the Institute of Actuaries in 1972. In 1974,

he left the Company to pursue a career in benefits consulting, ultimately joining William

M. Mercer in Toronto.Mr. Stewart rejoined Sun Life Financial in 1980 with overall

responsibility for the Canadian pension division, where he led six years of rapid growth.

In 1986, Mr. Stewart led the project team to launch the Companys Canadian mutual fund

operation. From 1987 to 1992, Mr. Stewart held overall responsibility for information

Technology at Sun Life Financial. During this period, he completed the Advanced

Management Program at Harvard Business School. As Chief Executive Officer of Sun

LifeFinancials trust operations from 1992 through 1995, Mr. Stewart restored

profitability via re-structuring and re-engineering. In May 1995, Mr. Stewart was

appointed Senior VicePresident & Chief Actuary. His appointment as President & Chief

Operating Officer followed in 1996.Mr. Stewart was appointed Chief Executive Officer

of the Company in April 1998. Then, in March 2000, he led the demutualization of Sun

Life Assurance Company of Canada with the successful IPO of Sun Life Financial on the

Toronto, New York and Philippine stock exchanges. He is a member of the Board of

MFS Investment Management and Sun Life Assurance Company of Canada (U.S.).

Mr. Venkatesh Mysor

Country Head India Sun Life Financial, Asia

Mr. Mysore holds a BA with Honours in Economics and an MBA from University of

Madras. He also holds the professional designation of Chartered Life Underwriter (CLU)

American College, Philadelphia, PA. He is the Vice-President and Country Head, India

of Sun Life Financial-Asia since January, 2007. Prior to this, Mr. Mysore was the CEO

& Managing Director of MetLife India. He was responsible for the start-up of the India

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venture. Mr. Mysore spent over 21 years with MetLife. He immigrated to the U.S.A. in

1985 and joined MetLife as a sales representative. Since then, he held severalpositions

of increasing responsibility within MetLife.

Mr. Mysore was the Chairman of The American

Chamber of Commerce (AMCHAM) Bangalore Chapter

for the year 2002 2003.

Several new members were inducted during his tenure. The AMCHAM invitational Golf

Tournament was one of the many well-appreciated events rolled-out under his leadership.

Other noteworthy contributions included arranging interactive sessions with key industry

leaders and academicians as well as community and social drives. He was also a member

of the Executive Committee of AMCHAM Bangalore. He is currently a member of the

Young Presidents Organisation Mumbai Chapter.

Mr. Gian Gupta

Mr. Gupta holds a Masters in Commerce

from University of Delhi.

He is a director on the Board of the Company and is the independent director on the

Board of Aditya Birla Nuvo Limited (holding company of BSLI). He is also a member

of the Audit Committee, Finance Committee and Share Allotment Committee of the

Company. Mr. Gian Prakash Gupta has been the former Chairman and Managing

Director of Industrial Development Bank of India & Chairman of Unit Trust of India. He

has wide and rich experience in Project Financing including Infrastructure projects,

Capital Market, Financial Management and General Management. He is on the Board of

various companies.

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Mr. Stephan Rajotte

President Sun Life Financial, Asia

Mr. Stephan Rajotte graduated (Actuarial Science) from University Laval, Quebec,

Canada in the year 1982. He is a fellow member of the Society of Actuaries and the

Canadian Institute of Actuaries. He has been in employment with various multinational

companies at senior levels like ING, American International Assurance (AIG), Met Life

International etc. He is

associated as President with Sun Life Financial Asia since September 2006. He is

responsible for the Asian Operations of Sun Life in the countries like India, Hong Kong,

China, Philippines and Indonesia. He is on the Board of various companies.

Mr. Suresh Talwar

Mr. Talwar is a commerce graduate and has done his L.L.B. He practices as a solicitor.

He is apartner of M/s Talwar, Thakore & Associates, alaw firm he has founded in

partnership with Shobhan Thakore. He was also associated withM/s. Crawford Bayley &

Company prior to hisforming his firm of Advocates. He also acts as alegal counsel to

numerous Indian companies,multinational corporations, Indian & foreignbanks. His

professional specialisation is incorporate law, corporate tax, foreign exchange laws,

Monopolies & Restrictive Trade Practiceslaws, & international issue of securities

byIndian companies. He also holds the directorship in several eminent public & private

limited

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PRODUCTS OF BIRLA SUN RIES LIFE INSURANCE

PRODUCTS

At Birla sun rise life Insurance, we offer a bouquet of insurance solutions to meet every

need. We cater to both, individuals as well as to companies looking to provide benefits to

their employees. This section gives you details of all our products. We have incorporated

various downloadable forms and product details so that you can make an informed choice

about buying a policy.

Forindividuals, we have a range of protection, investment, pension and savings plans that

assist and nurture dreams apart from providing protection. You can choose from a range

of products to suit your life-stage and needs.

Fororganisations we have a host of customised solutions that range from Group Term

Insurance, Gratuity, Leave Encashment and Superannuation Products. These affordable

plans apart from providing long term value to the employees help in enhancing goodwill

of the company.

INDIVIDUAL PRODUCTS

We at Aviva Life realise that not everyone has the same kind of needs. Keeping this in

mind, we have a varied range of Products that you can choose from to suit all your needs.

These will help secure your future as well as the future of your family.

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PROTECTION PLANS

You can protect your family against the loss of your income or the burden of a loan in

the event of your unfortunate demise, disability or sickness. These plans offer valuable

peace of mind at a small price. Our Protection range includes

Term Assurance Plan

Loan Cover Term Assurance Plan

INVESTMENT PLANS

Our investment products are well suited to meet your long-term needs.

Our Investment range includes

Single Premium Whole Of Life plan

RETIREMENT PLANS

Our Pension Plans help you secure your financial independence even after retirement.

Our Pension range includes

Personal Pension Plan

Unit Linked Pension,

Unit Linked Pension Plus

Our Immediate Annuity plan will aid you in receiving income post retirement and

securing you financial independence.

SAVINGS PLANS

Our Savings Plans offer you flexible options to build savings for your future needs such

as buying a dream home or fulfilling your childrens immediate and future needs.

Our Savings range includes

Endowment Assurance Plan

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Assurance Plan

Savings Assurance Plan

Childrens Plan

Money Back Unit Linked Endowment

Unit Linked Endowment Plus

Unit Linked Endowment Suvidha

HEALTH PLANS

Our health plans provides you with timely support in case of any health related

emergencies and helps you and your family to remain financially independent in difficult

times.

GROUP PRODUCTS

One-stop shop for employee-benefit solutions

Birla sun rise Life has the most comprehensive list of products for progressive employers

who wish to provide the best and most innovative employee benefit solutions to their

employees. We offer different products for different needs of employers ranging from

term insurance plans for pure protection to voluntary plans such as superannuation and

leave encashment.

We now offer the following group products to our esteemed corporate clients:

Group Term Insurance

Group Variable Term Insurance

Group Unit-Linked Plan

An investment solution that provides funding vehicle to manage corpuses with Gratuity,

Defined Benefit or Defined Contribution SuperannuationorLeave Encashment schemes

of your company

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Also suitable for other employee benefit schemes such as salary saving schemes and

wealth management schemes

SOCIAL PRODUCT

Development Insurance Plan

Development Insurance plan is an insurance plan which provides life cover to members

of a Development Agency for a term of one year. On the death of any member of the

group insured during the year of cover, a lump sum is paid to that members beneficiaries

to help meet some of the immediate financial needs following their loss.

Eligibility

- Members of the development agency and their spouses with:

Minimum age at the start of the policy 18 years last birthday

Maximum age at the start of policy 50 years last birthday

Employees of the Development Agency are not eligible to join the group. The group to

be covered is only eligible if it contains more than 500 members.

Premium Payments

The premium to be paid will be quoted per member in the group and will be the same for

all members of the group. This section gives you all the details that you may require to

pay your premium and make it a hassle free experience. Along with various premium

payment options currently available to you, we have also drawn up a checklist of details

that you will need in case you are paying through cheque or demand draft

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CHAPTER-3

RESEARCH METHODOLOGY

a. TYPE OF RESEARCH

A research design is the specification of methods and procedures for

acquiring the information needed to structure as to solve the problems. In

this project research has taken research design as

Exploratory Research Method.

The following three methods in context of research design for such

studies are talked about :

The survey of concerning literature

The experience survey

It is the overall pattern / framework of the project that stimulates what

information to be collected from which sources and what proceedings.

b. SAMPLE SIZE STUDY

Based on the objective posed earlier, the resented selected area in

Chennai in a purposive sampling proceeding method and the sample were

selected based on Convenience Sampling Procedures.

It is rather a colourful procedure in which the initial respondents are

selected conveniently and additional respondents obtained from referral

or by other information provided by initial respondents.

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c. SAMPLE SIZE AND JUSTIFICATION

150 samples are selected from Kurukshetra, all respondents were

contacted personally by the researcher and all the respondents have given

all the details correctly and adequate for his project. It represents have

given all the details correctly and adequate for his project. It represents

the universe because the products which researcher has chosen for study.

FMCG goods we have choose more samples for study to represent the

universe so research sample sizes represent the universe.

d. CONSTRUCTION OF QUESTIONNAIRE

Before constructing the research instrument the researcher being in the

field and inevlance products also had discussion with the project guide

and BRANCH Manager and other executive from Kotak Life Insurance

Company to understand the problem Concerned. Apart from these

personal discussions the researcher collected secondary data Pertaining

for clarity and understanding. Based on this interaction the researcher

formulated questionnaire and the same has been appended at the end.

e. DATE COLLECTION PROCEDURE

The date collected has been coded in a meaningful manner. In the

questionnaire, there were areas in which qualitative responses asked for

hence the researcher coded and analysed only the quantitative data and

the quantitative data has been consolidated in a meaningful manner.

The nature of the data collection is both.

i. Primary

ii. Secondary

i. Primary data : The primary data are those that are collected

through questionnaire and direct personal interview. The questionnaire was

framed in such a manner to obtain correct information, graded suitably for the

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study. All the questionnaire were collected through personal contact from the

respondents.

ii. Secondary data : Secondary data has been collected through

oral communication. Secondary data about the company profile and other details

were collected from the company website.

f. FIELD WORK

The field work was about 45 days in the potential area as considered. The

period was spread over with intervals from 15th June to 10th August

depending upon certain external factors.

g. OBJECTIVE OF THE STUDY

To know the limitation of BIRLA SUN RISE life insurance.

To know the expectation of clients from BIRLA SUN RISE Life

Insurance.

To know the awareness regarding BIRLA SUN RISE Life Insurance of

HNW clients.

To get a chance to interact with clients by means of interviews

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CHAPTER-4

DATA ANALYSIS AND INTERPRETATION:

GRAPHS & TABLES

NO. OF PEOPLE HAVING LIFE INSURACE

POLICY

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0

50

100

150

200

250

NO. OF

PERSON

NO. OF PEOPLE HAVING LIFE INSURANCE POLICY

having ins.

no ins.

INS./NO INS.

HAVING POLICY YES NO

NO.OF PERSONS 220 80

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NO OF PEOPLE HAVING LIFE

INSURANCE POLICY OF BIRLA SUN RISE

LIFE INSURANCE COMPANY

NO. OF PEOPLE HAVING LIFE INSURANCE

POLICY OF AVIVA LIFE INSURANCE

COMPANY

LIC

HDFC

AVIVA

OTHERS

COMPANY LIC HDFC BIRLASUN RISE

OTHERS

PERCENTAGE 80% 6% 10% 4%

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KNOWLEDGE ABOUT BIRLA SUN RISE LIFE INSURANCE

COMPANY

KNOLEDGE ABOUT AVIVA LIFE INSURANCE

0

50

100

150

200

250

300

YES/NO

NO.OFPERSONS

KNOW ABOUTBIRLA SUN RISELIFE INS.

YES NO

NO.OF PERSONS 280 20

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EXPLAINATION OF GRAPHS

(A) TITLE:- LIFE INSURANCE POLICYThis graph shows the number of person having the life insurance policy.

(B) TITLE:- MARKET SHARE OF COMPANIESThis graph shows the number of existing customers of different lifeinsurance companies.

(C) TITLE:- KNOWLEDGE OF BIRLA SUN RISE LIFE INSURANCEThis graph shows the number of person having knowledge of BIRLA SUNRISE Life Insurance Company.

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CHAPTER-5

FINDINGS, LIMITATION AND SUGGESTION

FINDINGS

1) Priority is given to insurance as an Investment as compared to Insurance as a

career

2) Difficulty for people to get training in case they want to become the advisor

and adopt insurance as a part time business specially in case of service class.

3) Lack of knowledge among the customers regarding the allocation of funds.

LIMITATIONS

The findings of this study are based on the subjective opinion of the

respondents. Although utmost care was taken to get accurate results from the

respondents, yet because of ambiguities and misinterpretations on the part of respondents,

some element of inaccuracy might have crept in. Therefore, most of the studies based on

the opinion survey from the studies limitations of possibility of what is recorded and

what is truth. Apart form these; there are some other limitations also.

1 There were certain people who were not interested in providing any kind of

information.

2 Area of study was limited to Kurukshetra.

3 The time span was less to conduct the study on a large scale.

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SUGGESTIONS

1 Increasing the number of branches in rural and semi-urban areas. The

co. should open its more and more branches in rural and semi-urban

areas as these areas also cover the major chunk of population.

2 A plan with the lesser amount of premium should be introduced having

features of lifetime or the minimum premium requirement of lifetime

should be decreased.

3 Week end batches for training: As many people face difficulty in

attending the 15 days training regularly, so there should be provision of

attending the training at week ends and for that separate batches should

be started.

4 Regular market surveys should be conducted so that the changing the

needs of the customer can be known and changes can be made

accordingly.

5 They should allocate more funds to the EQUITIES.(>78%).that help to

increase in return in funds

6 Allocation charges to be decreased so that big investors can be tap.

7 Withdrawal charges should be decreased. So that investor can withdraw

their money and got more fund value.

8 They should increase frequency of switching.

9 Fund management charges should be decreased so that more funds can

be allocate.

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CHAPTER-6

LIMITATION OF THE STUDY

LIMITED TIME

The foremost limitation was time. Time was not sufficient for an in depth

study of the given topic.

LIMITED SCOPE

The scope of the study was limited to Kurukshetra and near by areas only

because of limited time and financial resources. So results of the study may

not be generalized for India as a whole.

BIASNESS

Biasness on the parts of respondents cannot be ignored.

DIFFICULTY IN FETCHING DATA

It was not an easy task to fetch information from the respondents, as some of

the respondents were not as open and forthcoming as the others.

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CONCLUSION

After studying the insurance market, I realized following facts regarding lack

of interest of Kotak life policies by HNW clients and these are:

Return is less as compare to other investments schemes: (Like FD's,

NSC's, KVP's, ULIP, etc.)

Lack of knowledge: (The agents that what the policy is actually do not

properly guide People? What are the benefits of particular policies? Which

particular policy will suite to what particular customer? And so on, so, people

afraid to invest in LIC's and simply invest their earnings into banks or Po's).

Lack of time: (in this competitive era everybody is scheduled to no.

Of tasks so nobody has time to listen a single word from others due to which

people ignore to know about these policies and as usual investing their maximum

number of amount / earnings in banks or Po's).

Trust: (people invest mostly in banks, post offices or even in LIC's

because they trust more in government instead of private sector).

So these were the major facts why people are not adopting Kotak life

policies. And I had concluded that approximately all of the HNW clients

to Invest where they will get maximum benefit or returns and it can be given

by Kotak life if and only if they guide each and every HNW clients properly

i.e. which policy is suitable for which client among the various plans/

policies I had discussed earlier so that they can invest in that particulars

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policy or plan and can avail the maximum benefit they can .at last I just want

to conclude that Kotak life insurance can also attract most of the HNW

clients by guiding them properly and by assuring them properly that they are

only & only for the customers here and not the customers are here for the

company means they provide the maximum benefits to the customers what

they can and will totally satisfy the customers as customer satisfaction is at

the top for any organization . Lastly I had concluded that if HNW clients are

being provided by the same benefits by government insurance policies or

what they want from private insurance companies they will definitely adopt

Kotak life insurance policies.

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BIBLIOGRAPHY

Marketing Management by Philip Kotler (eleventh edition)

Published by Pearson education (Singapore) Pte. Ltd.

Research Methodology (methods and techniques) by C.R Kothari

Published by new age international(P) Ltd.

Business research methods by William G. Zikmund

Published by Thomson Pte. Ltd.

www.BIRLA SUN RISE life insurance.com

www.google.com (search engine)

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QUESTIONNAIRE

Personal Information

Name : __________________________

Address : __________________________

Phone no. : __________________________

Age : __________________________

Date of Birth : __________________________

Education : __________________________

Occupation : __________________________

1. What is your monthly family income?

Rs.5000-10000 Rs.10000-15000

Rs.15000-25000 Rs.25000 to above

2. What are your near future liabilities?

Child marriage

Educationany other please specify.

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3. What is your most preferable investment area?

Mutual funds NSC/Post office schemes

FDs Share Market

life insurance plan

4. Are you covered under Life Insurance?

Yes No

5. Who influence you to go for policy?

Friends Family

Advertisement

6. Are you aware of Kotak life insurance co. ltd ?

Yes No

7. If yes, what are the sources?

Electronic media Agents

Print media Other

8. Life insurance should be made compulsory for every individual?

Agree Disagree

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9. Who is your insurer?

LIC Private Company

10. Are you satisfied with the services of your insurance company (if you areinsured )?

Satisfied Neutral Dissatisfied

11. Do you perceive that government life insurance policies are much

more secured than their private counter parts?

Yes No

12. Are you in favor of privatization of insurance companies in India?

Yes No

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15. How do you consider KOTAK among its competitors if aware?

G O O D

A V E R A G E

P O O

16. If you are being provided services by Private Sector at same rate like

government would you prefer to change?

Yes No

17. Would you like to go with Insurance as a Financial Advisor or as an

Investment Solution?

As an Investment As a Financial Advisor

final project of birla sun rise

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