hdfc life insurance
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HDFC STANDARD LIFE
INSURANCE
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CHAPTER ONE:
INTRODUCTION
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1) INTRODUCTION:
HDFC Standard Life Insurance Company Limited is one of India's leading
private insurance companies, which offers a range of individual and group
insurance solutions. It is a joint venture between Housing Development
Finance Corporation Limited (HDFC Limited), India's leading housing
finance institution and a Group Company of the Standard Life Plc, UK. As
on February 28, 2009 HDFC Ltd. holds 72.43% and Standard Life
(Mauritius Holding) 2006, Ltd. holds 26.00% of equity in the joint venture,
while the rest is held by others.
The company launched national operations in December 2001. Today, we
have over 8000 employees across over 12 states in the country and a national
footprint of distributors trained to provide quality financial advice and
insurance solutions to the large Indian customer base.
As we further expand our presence across the country with a large network
of distributors, we continue to provide innovative product and service
offerings to cater to specific insurance and wealth management needs of
customers. Whatever your plans in life, you can be confident that HDFC
Standard life will offer the right financial solutions to help you achieve
them.
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1.1 Meaning and Definition of Life Insurance
1.1.1 Meaning
Life insurance covers the risk that exists in one’s life. These risks may arise
due to accident, illness or natural causes like fire, flood, earthquake. Life
insurance aims to protect the family of the life insured so that they may not
suffer from financial consequences on the death or disability of the insured
person. Life insurance needs to be a mandatory part of every person’s life.
Life insurance is a contract that pledges payment of an amount to the person
assured (or his nominee) on the happening of the event insured against.
Life insurance is a very popular form of insurance. It ensures the life of an
individual and gives financial protection to the members of the family of the
policyholder.
It is different from other types of insurance in various ways. It not only gives
protection but it is a method of compulsory saving. This insurance provides
protection to the family at the premature death or gives adequate amount at
the old age when the earning capacities are reduced.
The contract is valid for payment of the insured amount during:
The date of maturity, or
Specified dates at periodic intervals, or
Unfortunate death, if it occurs earlier.
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Life insurance covers the risk that exists in one’s life. These risks may
arise due to accident, illness or natural causes like fire, flood,
earthquake. Life insurance aims to protect the family of the life
insured so that they may not suffer from financial consequences on
the death or disability of the insured person. Life insurance needs to
be a mandatory part of every person’s life. Life insurance is a contract
that pledges payment of an amount to the person assured (or his
nominee) on the happening of the event insured against.
Life insurance is a very popular form of insurance. It ensures the life
of an individual and gives financial protection to the members of the
family of the policyholder.
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1.1.2 Definition
Life Insurance may be defined as a type of Insurance Contract whereby the
insurer, in consideration of the premium paid in periodical instalments
undertakes to pay an annuity or a certain sum of money either on the death
of the insured or on the expiry of a certain number of years.
Life insurance or life assurance is a contract between the policy owner and
the insurer, where the insurer agrees to pay a designated beneficiary a sum
of money upon the occurrence of the insured individual's or individuals'
death or other event, such as terminal illness or critical illness. In return, the
policy owner agrees to pay a stipulated amount called a premium at regular
intervals or in lump sums.
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1.2 Features of Life Insurance Contract
(1) Nature of General Contract
Since life insurance contract is a sort of contract it is governed by the Indian
Contract Act. According to Section 10 of Indian Contract Act, 1872 a valid
contract must have the following essentialities:
(a) Offer and acceptance.
(b) Legal considerations.
(c) Competent to make contract.
(d) Free consent.
(e) Legal object.
(2) Insurable Interest
The insured must have an insurable interest in the life to be insured for a
valid contract.
Insurable Interest in life insurance may be divided into two categories:
(a) Insurable interest in own life, and
(b) Insurable Interest in other’s life.
The latter can be sub-divided into two classes:
Where proof is not required, and
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Where proof is required. Again this insurable interest can be divided
into two classes
insurable interest arising due to business relationship, and
insurable interest in family relation.
(3) Utmost Good Faith
The life insurance requires that the principle of utmost good faith should be
preserved by both the parties. The principle of utmost good faith says that
both the parties, proposer (insured) and insurer must be of the same mind at
the time of contract because only then the risk may be correctly ascertained.
They must make full and true disclosure of the facts material to risk.
(4) Warranties
Warranties are integral part of contract.i.e. they form the bases of the
contract between the proposer and the insurer and if any statement whether
material or non – material, is untrue the contract shall be null and void and
the premium paid by him may be forfeited by the insurer.
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(5) Proximate Cause
The efficient or effective cause that causes loss is called ‘PROXIMATE
CAUSE’. It is the real and actual cause of loss. If the cause of loss is
insured, the insurer will pay.
In ‘LIFE INSURANCE’ the doctrine of CAUSA PROXIMA is not applied
because the insurer is bound to pay the amount of insurance whatever may
be the reason of death. It may be natural or unnatural. Hence this principle is
not of much practical importance with life insurance.
(6) Assignment and Nomination
Life insurance policy can be assigned freely for a legal consideration or love
and affection. Notice of assignment must be given to the insurer who will
acknowledge the assignment.
The holder of life insurance policy on his own may either at the time of
affecting the policy or at any subsequent time before the policy matures,
nominate person or persons to whom the money secured by the policy shall
be paid in event of his death.
Nomination can be cancelled before the maturity, but a notice should be
served to this effect.
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(7) Return of Premium
In the ordinary course premium once paid cannot be refunded. But in the
following cases the premium paid are returnable.
On account of misrepresentation or breach of warranty, the insured, in the
absence of any express condition to the contrary, can claim the return of
premium paid.
But where the insured is guilty of fraud in obtaining a policy, he will fail in
his claim to the sum assured.
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1.3 HISTORY OF HDFC STANDARD LIFE
INSURANCE COMPANY LTD.
HDFC Standard Life Insurance Company Ltd. is a, one of India's leading
multi-business corporations and HDFC Life International, the international
arm of HDFC Life, a Fortune 100 company. The company has positioned
itself on the quality platform. In line with its vision to be the most admired
life insurance company in India, it has developed a strong corporate
governance model based on the core values of excellence, honesty,
knowledge, caring, integrity and teamwork.
Incorporated in 2000, HDFC Standard Life started commercial operation in
April 2001. In line with its values of financial responsibility, HDFC
Standard Life has adopted prudent financial practices to ensure safety of
policyholder's funds. The Company's paid up capital as on 30th April, 2009
Is Rs 1782 core HDFC Standard Life has multi-channel distribution spread
across the country. Agency distribution is the primary channel
complemented by partnership distribution, bancassurance, alliance
marketing and dedicated distribution for emerging markets. The Company
places a lot of emphasis on its selection process for agent advisors, which
comprises four stages - screening, psychometric test, career seminar and
final interview. The agent advisors are trained in-house to ensure optimal
control on quality of training. The company currently has around 75,832
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agent advisors at 715 offices across 389 cities. The company also has 36
referral tie-ups with banks, 24 partnership distribution and alliance
marketing relationships each. HDFC Standard Life has put in place a unique
hub and spoke model of distribution to deepen our rural penetration. This is
the first time such a model has been put in place for rural marketing of
insurance. The company has 139 offices dedicated to rural areas.
HDFC Standard Life offers a suite of flexible products. It now has 39
products covering both life and health insurance and 8 riders that can be
customized to over 800 combinations enabling customers to choose the
policy that best fits their need. Besides this, the company offers 6 products
and 7 riders in group insurance business.
HDFC Life Insurance Company is one of the largest insurance companies in
the United States and the world. Ranked as a Fortune 100 company, HDFC
Life has provided its policyholders with financial security and investment
opportunities since 1841. As a mutual company, HDFC Life is owned solely
by its policyholders, to whom it pays annual dividends and provides long-
term coverage on a wide range of insurance products. The company
prospered during its first 100 years of operations, as the growth of the
nation's population and economy created an expanding market for life
insurance. Since World War II HDFC Life has maintained its competitive
edge by diversification.
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1.4 VISION AND MISSION
1) Financial Expertise
As a joint venture of leading financial services groups, HDFC Standard Life
has the financial expertise required to manage your long-term investments
safely and efficiently.
2) Range of Solutions
We have a range of individual and group solutions, which can be easily
customized to specific needs. Our group solutions have been designed to
offer you complete flexibility combined with a low charging structure.
3) Track Record So Far
Our gross premium income, for the year ending March 31, 2009 stood at Rs.
5,564.69 cores.
As on March 31, 2009, the company has more than 27 lakh polices in force.
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3) Strong promoter
HDFC Standard Life is a strong, financially secure business supported by two strong and secure promoters – HDFC Ltd and Standard Life. HDFC Ltd’s excellent brand strength emerges from its unrelenting focus on corporate governance, high Standards of ethics and clarity of vision.
Standard Life is a strong, financially secure business and a market leader in the UK Life & Pensions sector.
4) Investment Philosophy
We follow a conservative investment management philosophy to ensure that our customer’s money is looked after well. The investment policies and actions are regularly monitored by a formal Investment Committee comprising non-executive directors and the Principal Officer & Executive Director.
As a life insurance company, we understand that customers have invested their savings with us for the long term, with specific objectives in mind. Thus, our investment focus is based on the primary objective of protecting and generating good, consistent, and stable investment returns to match the investor’s long-term objective and return expectations, irrespective of the market condition.
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1.5 INDUSTRY GROWTH PROSPECTS:
THE YOUTHFUL AGE PYRAMID – 2005
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THE EXPECTED AGE PYRAMID - 2030
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CHAPTER TWO:
TYPES OF
INSURANCE PLANS
IN HDFC STANDARD
LIFE INSURANCE
COMPANY LTD.
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2. TYPES OF LIFE INSURANCE PLAN
WHY DO WE NEED PROTECTION PLANS?
Protection Plans help you shield your family from uncertainties in life due to financial losses in terms of loss of income that may dawn upon them incase of your untimely demise or critical illness. Securing the future of one’s family is one of the most important goals of life. Protection Plans go a long way in ensuring your family’s financial independence in the event of your unfortunate demise or critical illness. They are all the more important if you are the chief wage earner in your family. No matter how much you have saved or invested over the years, sudden eventualities, such as death or critical illness, always tend to affect your family financially apart from the huge emotional loss.
For instance, consider the example of Amit who is a healthy 25 year old guy with a income of Rs. 1,00,000/- per annum. Let's assume his income increases at a rate of 10% per annum, while the inflation rate is around 4%; this is how his income chart will look like, until he retires at the age of 60 years. At 50 years of age, Amit’s real income would have been around Rs. 10, 00,000/- per annum. However, in case of Amit’s unfortunate demise at
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an early age of 42 years, the loss of income to his family would be nearly Rs. 5,00,000/- per annum.
However, with a Protection Plan, a mere sum of Rs. 2,280/- annually (exclusive of service tax & educational cess) can help Amit provide a financial cushion of up to Rs. 10, 00,000/- for his family over a period of 25 years.
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1. HDFC Term Assurance Plan
This plan is designed to help secure your family’s financial needs in case of
uncertainties. The plan does this by providing a lump sum to the family of
the life assured in case of death or critical illness (if option is chosen) of the
life assured during the term of the contract. One can choose the lump sum
that would replace the income lost to one’s family in the unfortunate event
of one’s death. This helps your family to maintain their financial
independence, even when you are not around.
Features
Advantages
High cover at a very nominal cost.
Flexibility to choose the Sum Assured.
Additional benefit options can be availed at marginal costs.
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Premium amount remains the same over the term of the policy in case
of regular premium
Option of paying single premium or regular premium.
Tax benefits under sections 80C, 80D and 10(10D) of Income Tax
Act, 1961.
2. HDFC Loan Cover Term Assurance Plan
This plan aims to protect your family from your loan liabilities in case of
your unfortunate demise within the policy term. It provides the beneficiary
with a lump sum amount, which is a decreasing percentage of the initial Sum
Assured. This means that as the outstanding loan decreases as per the loan
schedule, the cover under the policy also decreases as per the policy
schedule.
Features
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Advantages
Flexibility to choose the Sum Assured.
Decreasing Sum Assurance as the outstanding loan decreases ensures
that you do not pay for the protection you don’t need.
Additional Optional Benefit is available at a nominal cost.
Option of paying single premium or regular premium.
Tax benefits are offered under section 80C, 80 D and 10(10D) of the
Income Tax Act, 1961.
3. HDFC Home Loan Protection Plan
This plan aims to protect your family from your loan liabilities in case of
your unfortunate demise within the policy term. It ensures that your family
does not lose the dream house that you have purchased for them, in case you
are not around to repay the outstanding monthly installments on your
housing loan. This provides you with the comfort of knowing that in your
absence, a sum of money will be available towards repaying your housing
loan, making sure that your family will be secure in your family home.
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Features
Advantages
A decreasing Sum Assured payable if you die during the term of the
contract. This sum assured is intended to help pay-off your
outstanding home loan
Policy can be availed by paying a single premium in advance
The premium amount can be included in the housing loan and repaid
as part of the loan repayment installments
Decreasing Sum Assured makes sure that you do not pay for
protection you don’t need
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1. HDFC Children’s Plan
As a parent, your priority is your child’s future and being able to meet your
child’s dreams and aspirations. With our HDFC Children’s Plan, you can
start building your savings today and ensure a bright future for your child.
This ‘With Profits’ plan is designed to secure your child’s future by giving
your child (Beneficiary) a guaranteed lump sum on maturity or in case of
your unfortunate demise, early into the policy term.
Features
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Advantages
Lets you customize an ideal plan for your child and provide
invaluable financial support
The Double Benefit Plan Option helps you secure your child’s
immediate and future needs. In case of your unfortunate demise, we
will pay the Sum Assured to your child (Beneficiary). Your family
need not pay any further premiums and the policy continues. And on
maturity of the plan, we will pay you the Sum Assured plus Bonuses
Declared
You can choose to pay your premium as either Annually, Half-Yearly
or Quarterly depending on your convenience. You also have a range
of convenient auto premium payment options
Tax benefits are offered under section 80C and 10(10D) of the Income
Tax Act, 1961
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2. HDFC YoungStar Super
As a parent, your priority is to meet your children’s future and being able to
meet your child’s dreams and aspirations. With our HDFC YoungStar Super,
you can start building your savings today and ensure a bright future for your
child. This Plan provides valuable protection to your child in case you are
not around and gives you an outstanding investment opportunity to HDFC
imise your savings by providing you a choice of thoroughly researched and
selected investments. This plan also gives Bumper Addition to the fund
value at Maturity.
Features
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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 of protection required.
On Maturity, your fund value will be augmented by addition of
Bumper Addition , which is a percentage of your original annualised
premium and depends on the policy term chosen.
The Triple Insurance Benefit helps you secure your child’s immediate
and future needs. In case of your unfortunate demise or critical illness,
we will pay the Sum Assured to your child (Beneficiary). Your family
need not pay any further premiums. We will pay 50% of all the
original regular premiums towards your policy and 50% of the
premiums will be paid to the Beneficiary as and when due, on an
annual basis. Any Death Benefit or Critical Illness cover terminates
immediately.
In the long term, the key to building great maturity values is a low
Fund Management Charge (FMC). We have a low FMC of only
1.25% per annum of the fund’s value.
You can choose to pay your premium as either Annually, Half-Yearly
or Monthly depending on your convenience. You also have a range of
convenient auto premium payment options.
You can change your investment fund choices in two ways:
o Switching: You can move your accumulated funds from one
fund to another anytime
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o 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
3. HDFC YoungStar Super Suvidha
As a parent, your priority is your child’s future and being able to meet your
child’s dreams and aspirations. With our HDFC YoungStar Super Suvidha,
you can start building your savings today and ensure a bright future for your
child. It is a convenient plan, which saves you from the need of going for
Medicals. This Unit Linked Plan provides valuable protection to your child
in case you are not around and gives you with an outstanding investment
opportunity to HDFC imise your savings by providing you a choice of
thoroughly researched and selected investments. This plan also gives
Bumper Addition to the fund value at Maturity.
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Features
Advantages
No need to go for medicals. Just filling a Short Medical Questionnaire
will do
This plan gives you Bumper Addition to the fund value at Maturity.
Your fund value will be augmented by addition of Bumper Addition,
which is a percentage of your original annualised premium and
depends on the policy term chosen.
In case of your unfortunate demise, we will pay the Sum Assured to
your child (Beneficiary). Your family need not pay any further
premiums.
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In the long term, the key to building great maturity values is a low
Fund Management Charge (FMC). We have a low FMC of only
1.25% per annum (of the fund’s value)
You can choose to pay your premium as either Half Yearly or Yearly.
You also have a range of convenient auto premium payment options
You can change your investment fund choices in two ways:
o Switching: You can move your accumulated funds from one
fund to another anytime
o 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
4. HDFC YoungStar Supreme Suvidha
There is no bigger joy than being able to fulfill your child's dream. With
HDFC YoungStar Supreme Suvidha you can fulfill your child’s immediate
and future needs. So tomorrow when you child needs your support you don’t
have to depend on anyone else. This Plan provides valuable protection to
your child in case you are not around and gives you an outstanding
investment opportunity to HDFC imise your savings by providing you a
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choice of thoroughly researched and selected investments. This plan also
gives Bumper Addition to the fund value at Maturity.
Features
Advantages
No need to go for medicals. Just filling a Short Medical Questionnaire
will do
This plan gives you Bumper Addition to the fund value at Maturity.
Your fund value will be augmented by addition of Bumper Addition,
which is a percentage of your original annualised premium and
depends on the policy term chosen.
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In case of your unfortunate demise, we will pay the Sum Assured to
your child (Beneficiary). Your family need not pay any further
premiums. At end of the term, your beneficiary would receive the
fund value.
In the long term, the key to building great maturity values is a low
Fund Management Charge (FMC). We have a low FMC of only
1.25% per annum (of the fund’s value).
You can choose to pay your premium as either Half Yearly or Yearly.
You also have a range of convenient auto premium payment options.
You can change your investment fund choices in two ways:
o Switching: You can move your accumulated funds from one
fund to another anytime
5. HDFC SL YoungStar Champion Suvidha
There is no bigger joy than being able to fulfill your child's dream; that too
on your own. With HDFC SL YoungStar Champion Suvidha you can fulfill
your child’s immediate and future needs. So tomorrow when you child needs
your support you don’t have to depend on anyone else. This is a convenient
plan, which saves you from the need of going for Medicals. This Unit
Linked Plan gives you with an outstanding investment opportunity to HDFC
imise your savings by providing you a choice of thoroughly researched and
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selected investments. This plan also gives Bumper Addition to the fund
value at Maturity.
Features
Advantages
No need to go for medicals. Just filling a Short Medical Questionnaire
will do
This plan gives you Bumper Addition to the fund value at Maturity.
Your fund value will be augmented by addition of Bumper Addition,
which is a percentage of your original annualised premium and
depends on the policy term chosen.
33
In case of your unfortunate demise, we will pay the Sum Assured to
your child (Beneficiary). Your family need not pay any further
premiums.
In the long term, the key to building great maturity values is a low
Fund Management Charge (FMC). We have a low FMC of only
1.25% per annum (of the fund’s value)
You can choose to pay your premium as either Half Yearly or Yearly.
You also have a range of convenient auto premium payment options
You can change your investment fund choices in two ways:
o Switching: You can move your accumulated funds from one
fund to another anytime
o 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
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1. HDFC Personal Pension Plan
Today, you are busy climbing the ladder of success and realizing your
dreams. Today, time is with you. Just take a moment and think. Will you be
able to continue at the same pace? Will your income be the same forever?
Will you be able to live life on your own terms even after you retire? The
HDFC Personal Pension Plan is a ‘With Profits’ insurance policy that is
designed to provide a post-retirement income for life with the freedom to
choose your retirement date.
Features
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Advantages
This plan is designed to provide you a post retirement income for life
– You can choose your premium, the Sum Assured and your
retirement date. At the end of the policy term, you will receive the
Sum Assured plus any attaching bonuses, which will provide you a
post retirement income in your golden years
On your chosen retirement (Vesting) date, you will get the lump sum
comprising the Sum Assured plus any attaching bonus.
o You can take up to 1/3rd of your Sum Assured as a tax free
cash lump sum
o The rest must be converted to annuity
o You can buy the annuity from us or any other insurer
For Regular Premium Policy, you can choose to pay your premium as
either Annually, Half-Yearly or Quarterly depending on your
convenience. You also have a range of convenient auto premium
payment options
Tax benefits under sections 80CCC of the Income Tax Act, 1961
subject to the provisions contained therein
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2. HDFC Pension Super
Today, you are busy climbing the ladder of success and realizing your
dreams. Today, time is with you. Just take a moment and think. Will your
income be the same forever? Will you be able to live life on your own terms
even after you retire? The HDFC Pension Super is Unit Linked plan,
designed to provide a post-retirement income for life with the freedom to
choose your retirement date. This plan gives you with an outstanding
investment opportunity to HDFC imise your savings by providing you a
choice of thoroughly researched and selected investments. This plan also
gives Bumper Addition to the fund value at vesting.
Features
37
Advantages
This plan is designed to provide you a post retirement income for life
– You can choose your premium and your retirement date. You will
receive the accumulated value of your funds, which will be used to
provide you with the pension income in your golden years
On Maturity (Vesting) your fund value will be augmented by Bumper
Addition. Bumper addition is a percentage of your original
annualized premium and depends on your policy term chosen at
inception
On your chosen retirement (Vesting) date, you will get the value of
the units in your policy. As per prevailing Government regulations;
o You can take up to 1/3rd of the total benefit at Vesting (fund
value + Bumper Addition) as a tax-free cash lump sum
o The rest must be converted to annuity
o You can buy the annuity from us or any other insurer
In the long term, the key to building great maturity values is a low
Fund Management Charge (FMC). We have a low FMC of only
1.25% per annum (of the fund’s value)
If you have not opted for AAO (Asset Allocation Option), you can
change your investment fund choices in two ways:
o Switching: You can move your accumulated funds from one
fund to another anytime
o Premium Redirection: You can pay your future premiums into a
different selection of funds, as per your need
38
You can choose to pay your premium as either Monthly (through
Standing Instructions or ECS Mandate), Half yearly or Annually. You
also have a range of convenient auto premium payment options
Tax benefits under sections 80CCC of the Income Tax Act, 1961
subject to the provisions contained therein
3. HDFC Pension Supreme
Today, you are busy climbing the ladder of success and realizing your
dreams. Today, time is with you. Just take a moment and think. Will your
income be the same forever? Will you be able to live life on your own terms
even after you retire? The HDFC Pension Supreme is Unit Linked plan,
designed to provide a post-retirement income for life with the freedom to
choose your retirement date. This plan gives you with an outstanding
investment opportunity to HDFC imise your savings by providing you a
choice of thoroughly researched and selected investments. This plan also
gives Bumper Addition to the fund value at vesting.
39
Features
Advantages
This plan is designed to provide you a post retirement income for life
– You can choose your premium and your retirement date. You will
receive the accumulated value of your funds, which will be used to
provide you with the pension income in your golden years
On Maturity (Vesting) your fund value will be augmented by Bumper
Addition. Bumper addition is a percentage of your average
annualized premium and depends on your policy term chosen at
inception
On your chosen retirement (Vesting) date, you will get the value of
the units in your policy. As per prevailing Government regulations;
40
o You can take up to 1/3rd of the total benefit at Vesting (fund
value + Bumper Addition) as a tax-free cash lump sum
o The rest must be converted to annuity
o You can buy the annuity from us or any other insurer
In the long term, the key to building great maturity values is a low
Fund Management Charge (FMC). We have a low FMC of only
1.25% per annum (of the fund’s value)
If you have not opted for AAO (Asset Allocation Option), you can
change your investment fund choices in two ways:
o Switching: You can move your accumulated funds from one
fund to another anytime
o Premium Redirection: You can pay your future premiums into a
different selection of funds, as per your need
You can choose to pay your premium as either Monthly (through
Standing Instructions or ECS Mandate), Half yearly or Annually. You
also have a range of convenient auto premium payment options
Tax benefits under sections 80CCC of the Income Tax Act, 1961
subject to the provisions contained therein
41
4. HDFC SL Pension Champion
Today, you are busy climbing the ladder of success and realizing your
dreams. Today, time is with you. Just take a moment and think. Will your
income be the same forever? Will you be able to live life on your own terms
even after you retire? The HDFC SL Pension Champion is Unit Linked plan,
designed to provide a post-retirement income for life with the freedom to
choose your retirement date. This plan gives you with an outstanding
investment opportunity to HDFC imise your savings by providing you a
choice of thoroughly researched and selected investments. This plan also
gives Bumper Addition to the fund value at vesting.
Features
42
Advantages
This plan is designed to provide you a post retirement income for life
– You can choose your premium and your retirement date. You will
receive the accumulated value of your funds, which will be used to
provide you with the pension income in your golden years
On Maturity (Vesting) your fund value will be augmented by Bumper
Addition. Bumper addition is a percentage of your average annualised
premium and depends on your policy term chosen at inception
On your chosen retirement (Vesting) date, you will get the value of
the units in your policy. As per prevailing Government regulations;
o You can take up to 1/3rd of the total benefit at Vesting (fund
value + Bumper Addition) as a tax-free cash lump sum
o The rest must be converted to annuity
o You can buy the annuity from us or any other insurer
In the long term, the key to building great maturity values is a low
Fund Management Charge (FMC). We have a low FMC of only
1.25% per annum (of the fund’s value)
If you have not opted for AAO (Asset Allocation Option), you can
change your investment fund choices in two ways:
o Switching: You can move your accumulated funds from one
fund to another anytime
o Premium Redirection: You can pay your future premiums into a
different selection of funds, as per your need
43
You can choose to pay your premium as either Half yearly or
Annually. You also have a range of convenient auto premium
payment options
Tax benefits under sections 80CCC of the Income Tax Act, 1961
subject to the provisions contained therein
5. HDFC SL Unit Linked Pension HDFC imiser II
Ideally, just how spending comes to you, so must saving and investing. You
are able to finance your expenses and take care of your expenses in present
times. However, to ensure that you are able to maintain the same Standard of
living post retirement, you need to make the right kind of investment today.
HDFC SL Unit Linked Pension HDFC imiser II is a unique Single
Premium unit linked plan, designed to provide a post-retirement income for
life with the freedom to HDFC imise your investment returns. This plan also
gives Bumper Addition* of 5% of initial single premium at vesting.
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Features
Advantages
This plan is designed to provide you a post retirement income for life
– You can choose your initial single premium, the investment strategy
and retirement date. At the end of the policy term, you will receive the
accumulated value of your funds including Bumper Additions, which
will be used to provide your pension income in your golden years.
This plan gives you Bumper Addition (*for policies with term equal
or greater than 15 years) to the fund value on Vesting. Your fund
value will be augmented by addition of Bumper Addition to the extent
of 5% of the initial single premium chosen at inception.
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On your chosen retirement (Vesting) date, you will get the value of
the units in your policy. As per prevailing Government regulations;
1. You can take up to 1/3rd of the total benefit at Vesting (fund
value + Bumper Addition if any) as a tax-free cash lump sum
2. The rest must be converted to annuity
3. You can buy the annuity from us or any other insurer
In the long term, the key to building great maturity values is a low
Fund Management Charge (FMC). We have a low FMC of only
1.25% per annum (of the fund’s value)
You can change your investment fund choices through switching
where you can move your accumulated funds from one fund to
another anytime
Tax benefits under sections 80CCC of the Income Tax Act, 1961
subject to the provisions contained therein
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1. HDFC Endowment Super
You have always given your family the very best. And there is no reason
why they should not get the best in future too. With rising costs, ensuring the
best got your family will need some financial planning. With our HDFC
Endowment Super, you can start building your savings today and ensure that
your family remains financially independent, even when you are not around.
This Unit Linked Plan also gives you with an outstanding investment
opportunity to HDFC imise your savings by providing you a choice of
thoroughly researched and selected investments.
Features
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Advantages
This plan provides valuable protection to your family in case you are
not around. In case of your unfortunate demise during the policy term,
we will pay the greater of your Sum Assured (less any withdrawals
you have made in the two years before your claim) and your total fund
value to your family.
You can choose any one of 4 Additional Plan Benefit options
depending on your requirement:
o Life Option = Death Benefit
o Extra Life Option = Death Benefit + Accidental Death Benefit
o Life & Health Option = Death Benefit + Critical Illness Benefit
o Extra Life & Health Option = Death Benefit + Critical Illness
Benefit + Accidental Death Benefit
This plan gives you Bumper Addition to the fund value at Maturity.
Your fund value will be augmented by addition of Bumper Addition,
which is a percentage of your original annualised premium and
depends on the policy term chosen.
In the long term, the key to building great maturity values is a low
Fund Management Charge (FMC). We have a low FMC of only
1.25% per annum (of the fund’s value)
You can choose to pay your premium as either Annually, Half-Yearly
or Monthly depending on your convenience. You also have a range of
convenient auto premium payment options
You can change your investment fund choices in two ways:
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o Switching: You can move your accumulated funds from one
fund to another anytime
o 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
2. HDFC Endowment Super
You have always given your family the very best. And there is no reason
why they should not get the best in future too. With rising costs, ensuring the
best got your family will need some financial planning. With our HDFC
Endowment Super, you can start building your savings today and ensure that
your family remains financially independent, even when you are not around.
This Unit Linked Plan also gives you with an outstanding investment
opportunity to HDFC imise your savings by providing you a choice of
thoroughly researched and selected investments.
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Features
Advantages
This plan provides valuable protection to your family in case you are
not around. In case of your unfortunate demise during the policy term,
we will pay the greater of your Sum Assured (less any withdrawals
you have made in the two years before your claim) and your total fund
value to your family.
You can choose any one of 4 Additional Plan Benefit options
depending on your requirement:
o Life Option = Death Benefit
o Extra Life Option = Death Benefit + Accidental Death Benefit
o Life & Health Option = Death Benefit + Critical Illness Benefit
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o Extra Life & Health Option = Death Benefit + Critical Illness
Benefit + Accidental Death Benefit
This plan gives you Bumper Addition to the fund value at Maturity.
Your fund value will be augmented by addition of Bumper Addition,
which is a percentage of your original annualised premium and
depends on the policy term chosen.
In the long term, the key to building great maturity values is a low
Fund Management Charge (FMC). We have a low FMC of only
1.25% per annum (of the fund’s value)
You can choose to pay your premium as either Annually, Half-Yearly
or Monthly depending on your convenience. You also have a range of
convenient auto premium payment options
You can change your investment fund choices in two ways:
o Switching: You can move your accumulated funds from one
fund to another anytime
o 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
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3. HDFC SIMPILIFE
You have always believed in living life on your own terms. So why let the
changing realities of everyday life overwhelm you and make your
aspirations take a back seat? With our HDFC SimpliLife Plan, you can plan
now to HDFC imise your savings and secure your and your family’s future.
It is a convenient plan, which saves you from the need of going for
Medicals. This Unit Linked Plan gives you with an outstanding investment
opportunity to HDFC imise your savings by providing you a choice of
thoroughly researched and selected investments.
Features
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Advantages
This plan provides valuable protection to your family in case you are
not around. In case of your unfortunate demise during the policy term,
we will pay the Unit Fund Value plus Sum Assured to your family.
This plan gives you Bumper Addition to the fund value at Maturity.
Your fund value will be augmented by addition of Bumper Addition,
which is a percentage of your original annualised premium
In the long term, the key to building great maturity values is a low
Fund Management Charge (FMC). We have a low FMC of only
1.25% per annum (of the fund’s value)
You can choose to pay your premium as either Annually or Half-
Yearly depending on your convenience. You also have a range of
convenient auto premium payment options
You can change your investment fund choices in two ways:
o Switching: You can move your accumulated funds from one
fund to another anytime
o 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
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4. HDFC Wealth Builder
HDFC Wealth Builder is an exclusive plan crafted for elite achievers like
you. An investment cum insurance plan that will actively help in building
your wealth and give you twin advantage of exclusive funds (actively
managed for you) along with choice of limited premium payment term.
This plan provides the financial protection to your loved ones and builds up
your wealth effortlessly. This plan also gives Bumper Addition to the fund
value at Maturity.
Features
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Advantages
This plan gives you Bumper Addition to the fund value at Maturity.
Your fund value will be augmented by addition of Bumper Addition,
which is a percentage of your average annualised premium.
This plan offers an excellent investment opportunity through choice of
exclusive funds
In the long term, the key to building great maturity values is a low
Fund Management Charge (FMC). We have a low FMC of only
1.35% per annum (of the fund’s value)
You can choose to pay your premium as either Half Yearly or
Annually. You also have a range of convenient auto premium
payment options
You can change your investment fund choices in two ways:
o Switching: You can move your accumulated funds from one
fund to another anytime
o 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
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5. HDFC Money Back Plan
You have always believed in living life on your own terms. So why let the
changing realities of everyday life overwhelm you and make your
aspirations take a back seat? With our HDFC Money Back Plan, you can
plan now to ensure that you have the necessary funds to have the necessary
funds to secure your long-term as well as short-term financial goals. This
‘With Profits’ plan gives you a proportion of the basis Sum Assured as
Cash lump sums at regular 5-year intervals within the policy term.
Features
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Advantages
This plan gives you a proportion of the basic Sum Assured as Cash
lump sums at regular 5-year intervals within the policy term and a
lump sum payment on survival up to maturity date. An ideal way to
secure your long-term as well as short-term financial goals
Provides invaluable protection to your family by way of lump sum
payment in case of unfortunate demise within policy term, over and
above any earlier payouts
Gives you the flexibility to customise your policy according to your
needs by adding any one of the 4 benefit options available
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You can choose to pay your premium as either Annually, Half-Yearly
or Quarterly depending on your convenience. You also have a range
of convenient auto premium payment options
Tax benefits under sections 80C, 80D and 10(10D) of Income Tax
Act, 1961
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1. HDFC Critical Care Plan
Critical Illness can strike anyone. Today with advancement in medical
science it is possible to survive a critical illness. Expenses on survival with a
critical illness can be very high. HDFC Critical care plan provides for a
lump sum payment on survival post diagnosis of a critical illness, so that in
the event a critical illness strikes, you don’t have to dig into those precious
savings of yours.
Features
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Advantages
Provides valuable protection on survival post diagnosis of a critical
illnesses
Covers as many as 30 critical illnesses
Lump sum benefit payment paid irrespective of medical expenses
The policy continues even after the benefit payment paid on selected
illness
Choice of the level of health cover and premium payment
Convenient and hassle free claims
Tax benefits are available under section 80D under Income Tax Act,
1961
2. HDFC SurgiCare Plan
In the fast paced lives that we lead, medical contingencies may arrive at our
doorstep uninvited.Surgery costs form a substantial portion of health care
expenditure and needs to be provided for. Health issues can get compounded
if left unattended and may require a surgery. Plus, the ever increasing costs
of surgical procedures are sure to burn a hole in our pockets.
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HDFC SurgiCare Plan provides you with timely support in case you have to
undergo a major surgery and hospitalisation, as the case maybe, ensuring
your financial independence at all times.
Features
Advantages
82 major surgical procedures are covered.
Option to include hospital cash benefit
Automatic increase in the level of health cover (subject to terms and
conditions) ensures that the increasing medical costs are taken care of.
Lump sum benefits are paid regardless of the actual medical expenses.
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Flexibility to tailor-make the policy by choosing level of health cover,
benefit options level and premium payment as per your needs.
Convenient and hassle free claims with cashless benefits on surgeries
and hospitalization in any of the network hospitals. To know more
click here.
Tax benefits can be availed under section 80D of the Income Tax Act,
1961
- To educate people about the different product & facilitates
provided by HDFC Standard life insurance
- To study the feature of HDFC Standard life insurance
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CHAPTER THREE:
RESEARCH AND
DESIGN
63
3) METHODS OF DATA COLLECTION
3.1 Primary Method
Primary data are those which are collected fresh and for the first time and
thus happen to be original in character. It is always advised to use primary
data whenever possible. They are also known as first handed data.
Following are the methods of collecting Primary Data:
(1) Interview
(2) Telephone Interview
(3) Mail Survey
(4) Questionnaire
Questionnaire is a set of questions to find out the data about the Insurance
Company’s performance, which is circulated among the people or customers
of the same Company. The customers may regard to different branches. The
customer or people based on their personal experience give answers to the
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sets of questions presented to them on the basis of which we find out the
status of the company.
I have considered 50 samples to get a feedback that how many customers
have taken which kind of policies which I have mentioned in Finding.
3.2 Secondary Data
Secondary data means data that are already available. i.e. they refer to data
which have already been collected and analyzed by someone else. Such
information has not been gathered afresh specifically for any research
project.
(1) Books
Books were used to refer to the subject matter and to get extra knowledge on
the topic. Books of various authors were referred for the same purpose.
I have referred topics like Meaning, Definition and Features of Life
Insurance from Innovations in Banking and Insurance.
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(2) Newspaper
(3) Website
Websites are used to get the general view about the HDFC STANDARD
Life Insurance Company’s product and its history, on the net.
Websites are also used to attract the customers as per the knowledge that I
have.
Websites were used to take general information.
www.hdfcinsurance.com
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CHAPTER FOUR
FINDING
67
4. FINDING
1. As per survey 35% of sample are having HDFC STANDARD Life
Insurance Company Term Policy , 30% are having Pension Plan , 25% are
having Children’s Policy and 10% has UILP Plan of HDFC STANDARD
Life Insurance Company Ltd.
2. As per survey 20% of sample are taking HDFC STANDARD Life
Insurance Company for Tax Saving and Investment , 30% are taking
Retirement and pension , 30% are taking Children’s Education &Future Plan
and 20% are taking Insurance for Family Life Security.
3. As per survey 40% of sample prefers to have Mediclaim for their family,
15% sample prefers to have Life Plan for their family, 30% sample prefers
to have Whole Life Plan for their family and 15% sample prefers to the
Pension plan.
4. As per survey 30% of sample prefers to pay their premium through Cash,
40% sample prefers to pay their premium through Cheque, 15% sample
prefers to pay their premium through Online and 15% sample prefers to pay
their premium through ECS.
5. As per survey 45% of samples prefer to pay their premium through
monthly, 40% of sample prefers to pay their premium through half-yearly
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premium, and 15% of sample prefers to pay their premium through half-
yearly premium.
6. As per survey 40% of sample prefers to invest their money in growth
Fund, 30% of sample prefers to invest their money in balance Fund and 30%
sample prefers to invest their money in Traditional Fund.
As per survey 80% sample are satisfied with HDFC STANDARD Life
Insurance Company Ltd.
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