hdfc recruitment akshita

8/18/2019 Hdfc Recruitment Akshita

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A

PROJECT REPORT ON

“RECRUITMENT OF FINANCIAL CONSULTANTS”

WITH

HDFC STANDARD LIFE INSURANCE LTD.

SUBMITTED TO:

RAJASYHAN TECHNICAL UNIVERSITY,KOTA

In the partial fulfillment of

Master of Business Administration

(2007-0!

SUBMITED BY:

HARI SIN"H

DEEPSHIKHA COLLE"E OF

TECHNICAL EDUCATION

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ACKNOWLED"EMENT

I take great pleasure to thank and akno!ledgement the permission

and allo!ane "# M#. AJAY SHARMA, CHANNEL

DEVELOPEMENT MANA"ER, HDFC STANDARD LIFE

INSURANCE, JAIPUR RE"ION and his help and inspiration

pro$ided% I e&tend a !hole hearted thanks to M#. SUMER SIN"H

under !hom I !orked and learned a lot and for enlightening me !ith

their kno!ledge and e&periene to gro! !ith the orporate !orking%

Their guidane at e$er# stage of the 'ro(et ena"led me to

suessfull# omplete this pro(et !hih other!ise !ould not ha$e

"een possi"le !ithout their onstant enouragement and moti$ation)

!ithout the support it !as not possi"le for me to omplete the report

!ith fullest endea$our%

I !ould also like to e&tend m# thanks to m# *ollege +ault#Mem"ers Mr% Satish Sharma all m# olleagues in the ompan# !ho

supported me in arr# out m# operation suessfull# and generousl#

and pro$ided me $ital information, training regarding the m# pro(et

o"(eti$e%

HARI SIN"H

M$A % III

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PREFACE

I had undergone a pratial training under HDFC STANDARD

LIFE INSURANCE, JAIPUR RE"ION% It !as a good e&posure

for me to undergo training in suh a ompan# to get the kno!ledge

and e&periene regarding life insurane and reruitment of apa"le

of life insurane ad$isors%

Summer training is one of the ma(or e&periening omponent of the

kno!ledge) gain of rele$ant of information !ith respet to marketing

and dealing !ith situations in a professional ourse like M%B%A%

!here a professional person faes a pro"lem in a field% I !as a"le to

get familiari.ed !ith the ustomer relationship and got to kno! ho!

a ompan# measures to resol$e their grie$anes and ser$ie them to

the ma&imum for future prospet and suess% +ield omponent like

sur$e#) generation of /uestionnaire !ith respet to marketing helped

me a lot and !ould "e a great support in future%

“I& ' )**+ &* / /&1' 31& '& ' //&'4 &* / '').

T#'') 5 3/ ' 44 6 *8 4'8/.” Thus I !ould sa# that this

training !as "enefiial eduati$e 0 good e&posure to me) !hih !ill

ertainl# help in m# near future% This pro(et !as designed !ith

respet to this ompan#% The pro(et made me to get the enhaned

kno!ledge regarding life insurane onept and the proess of

reruiting of finanial onsultant%


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T34/ *8 5*&/&

S. N*. P#&'514# P)/

9. I2T3ODU*TIO2 4516

-% 7I+E I2SU3A2*E 145-8

% 7I+E I2SU3A2*E I2DUST3Y -15-9

6% ABOUT TE *OM'A2Y ; D+* STA2DA3D 7I+E --518>

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INTRODUCTION - INSURANCE

The insurane setor !as opened up in the #ear 1>>> failitating the

entr# of pri$ate pla#ers into the industr#% ith an annual gro!th rate

of -6%1 perent and the largest num"er of life insurane poliies in

fore) the potential of the Indian insurane industr# is huge% The #ear

1>>> sa! a re$olution in the Indian insurane setor) as ma(or

strutural hanges took plae !ith the ending of =o$ernment

monopol# and the passage of the Insurane 3egulator# and

De$elopment Authorit# I3DAF Bill) lifting entr# restritions for

pri$ate pla#ers and allo!ing foreign pla#ers to enter the market !ith

some limits on diret foreign o!nership%

Aording to the *SO) the insurane and "anking ser$iesG

ontri"ution to the ountr#Gs =D' is >85>1% During the

H>8s) it !as "et!een 1 and - perent and from -881 it !as o$er -

perent% In -88586 it !as -%6 perent%

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The impetus for inrease is due to the ati$e role pla#ed "# I3DA in

liensing pri$ate pla#ers and taking positi$e steps in inreasing the

insurane a!areness among the people% Besides) the insurane

ompanies in general and pri$ate insurane ompanies in partiular)

are reahing out to untapped potential in rural areas !ith aggressi$e

ampaigns%

Inno$ati$e produts) smart marketing) and aggressi$e distri"ution

ha$e ena"led fledgling pri$ate insurane ompanies to sign up Indian

ustomers faster than an#one e&peted% 7ife insurane is $ie!ed as a

ta& sa$ing de$ie% 'eople are no! turning to the pri$ate setor for

pro$iding them !ith ne! produts and greater $ariet# for their

hoie% The impro$ement in +DI flo!s refleted the impat of reent

initiati$es aimed at reating an ena"ling en$ironment for +DI and for

enouraging infusion of ne! tehnologies and management

praties% The =o$ernmentGs proposal to inrease the +DI ap in the

insurane setor from the present -9 perent to 6> perent has raised

e&petations among the international insurane ompanies%


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I1#5/ % D/8'/+:

Insurance is a contract in which sum of money is paid to the

assured in consideration of insurer’s incurring risk of paying a large

sum upon a given contingency% -- J1&'5/ T'+44

“Insurance is a contract by which one party for a compensation

called in the premium assumes particular risks of the other party

and promises to pay to him or his nominee a certain sum of money

on a specified contingency.” -- E.W.F'&&/#*

Insurance may be described as social device whereby a large group

of individuals, through a system of equitable contribution, may

reduce certain measurable risk of economic loss common to all

members of the group.” 55E554*;/+' $#'&'5

The a"o$e definitions learl# sho!s that insurane is a ooperati$e

de$ie to spread the loss aused "# a partiular risk o$er a mem"er

of persons !ho are e&posed to it and !ho agree to insure themsel$es

against risk% Insurane does not eliminate risk "ut onl# redues the

finanial "urden) !hih ma# "e $er# hea$#%

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E*41&'* *8 '1#5/

In the da#s of #ore insurane !as in its rude form and !as

ooperati$e and $oluntar# in nature% hen) !here and ho! it

originated is still a matter of researh in one !a# or the other !as

pre$alent in olden da#s% e an trae its histor# from the e$olution

soiet# from hunting stage to the modern industrial age% A !ord

YA=*EMJ ours in the !orldGs most anient indu Sripture

3ig eda%

The !ord YA=*EMJ means insurane% It learl# indiated that

a"out four thousand #ears ago insurane !as pre$alent in its rude

form% It !as ooperati$e and $oluntar# in nature% 'eople formed

different groups of organi.ations to share the loss among themsel$es

inase of a partiular risk% Eah mem"er ontri"uted some amount to

a ommon fund to meet the unforeseen losses% Sometimes the# also

ontri"uted e/uall# to ompensate person as and !hen he suffered a

loss% Traes of insurane in the anient !orld are also found in the

form of marino trade loans or arriers ontrats !hih inluded an

element of insurane%

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E$idene is on reords that arrangements em"od#ing the idea of

insurane !ere made in Ba"#lonia and India at /uite an earl# period%

3eferenes !ere made to the onept of insurane in ManuGs ode

Manu Smrit#J% It !as akin to YagakshemoJ of 3ig$eda in !hih

the !ell "eing and seurit# of the ommunit# !as aimed at%

o!e$er) there is no e$idene that insurane in its present farm !as

pratied prior to t!elfth entur#%

T/ N&1#/ O8 I1#5/

The insurane has the follo!ing harateristis !hih are o"ser$ed

in ases of life) marine) fire and general insurane%

1% S#') *8 #'


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-% I& ' 5**;/#&'/ +/'5/: A large num"er of persons agree to

share the loss arising sue to a partiular risk% Thus) insurane is a

ooperati$e de$ie%

% V41/ *8 #'


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F15&'* *8 I1#5/

A! P#'# F15&'*

1% I1#5/ ;#*'+/ 5/#&'&: Insurane pro$ide ertaint# of

pa#ments at the unertaint# of losses% The element of unertaint#

is redued "# "etter planning and administration%

-% I1#5/ ;#*'+/ ;#*&/5&'*. The risk !ill our or not) !hen

!ill our and ho! muh loss !ill "e there% There are

unertainties of happening of time and amount of losses% The

main funtion of the insurane is to pro$ide protetion against the

losses%

% R'< #'): 3isk is unertain and therefore) the loss arising

from the risk is also unertain% All "usiness onern faes the

pro"lem of the risk and if the onern is "ig enough the handling

of risk "eomes a speiali.ed funtion% Insurane) as a de$ie is

the outome of the e&istene of $arious risks in our da# to da#

life% It spreads the !hole losses o$er a large num"er of persons

!ho are e&posed "# a partiular risk%

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$% S/5*+# F15&'*

1% P#//&'* *8 4*: 're$ention is al!a#s "etter than ure%

're$ention is "# far the "est solution to the pro"lem of risk% It is

more effeti$e and heapest method to a$oid the unfortunate

onse/uene% But sometimes pre$ention is not al!a#s possi"le

and Effeti$e%

-% I& ;#*'+/ 5;'&4: It pro$ides the apital to the soiet#% +or plan

de$elopment of ountr# there is a great need for huge amount of

apital% 2o! da#s) the insurane ompanies are rendering

positi$e help in the de$elopment of trade) ommere and industr#

of the ountr#%

% I& ';#*/ /88'5'/5: Ahie$ement of goals) it impro$es not

onl# his effiien# of the masses is also ad$aned% The insurane

eliminates !orries and miseries of losses as death and destrution

of propert# are free person an de$ote his energies for "etter%

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6% I& /1#/ &/ 6/48#/ *8 *5'/&: Insurane is a saga of ser$ie

and seurit#J to thee soiet#% Seurit# of the life and propert#

gi$en "# insurane "ring peae of mind to the insured% The

in$estment in 7I* in !elfare shemes like eletriit#) housing)

!ater suppl#) agro industr# estates are a"le to sol$e man#

pro"lems in India%

4% I& /4; ' /5**'5 ;#*)#/: Insurane pro$ides an initiati$e

to !ork hard for the "etterment of the masses% 7ife insurane

in$ol$es the element of sa$ing in$estment through small sa$ings%

And !hih has "een gro!ing in reent #rs at an annual rate of

a"out 3s% 688 rs) life insurane is not a mere "usiness

organi.ation) it has no"ler !elfare responsi"ilities in the

de$elopment of the eonom#%

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LIFE INSURANCE

D/8''&'*

The life insurance contract embodies an agreement in which broadly

stated, the insurer undertakes to pay a stipulated sum upon the death

of the insurer to a designated beneficiary%J 55 J.H.MA"EE

ife insurance contract may be defined whereby the insurer, in

consideration of premium paid either in lumpsum installments,

undertakes to pay an annuity on the death of the insured of a certain

number of years.” 55 R.S.SHARMA

! contract of life assurance is that in which one party agrees to pay

a given sum on the happening of a particular event contingent upon

the duration of human life in consideration of immediate payment of

a smaller sum by another. $UNYON=S LAW OF LIFE INSURANCE

S*/ *1&&+') +&)/ *8 4'8/ '1#5/

1%F It is superior to an ordinar# sa$ing plan: this is so "eause unlike

other sa$ing plans) it offers full protetion against risk of death%

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-%F Insurane enourages and enfores thrift : man# people ma# not

ha$e the !ill po!er to ontinue a long term sa$ing plan !hih the#

ma# formulate regular pa#ments in fae of mone# other uses to

!hih their limited inome ould "e put%

%F Eas# installments and protetions against reditors: the proeeds

of a life insurane poli# an "e proteted against the laims of the

reditors of life assured "# affetion a $alid assignment of the

poliies%

6%F Ta& relief: the inome ta& at e&empts from ta& that part of an

indi$iduals inome !hih is de$oted to pa#ment of life insurane

premium%

4%F Estate dut#: life insurane is the most pratia"le !a# to ensure

definite pa#ment on oneGs death !ithout ha$ing resort to on$ersion

of reali.a"le asset at a loss%

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W L'8/ I1#5/

>

7ife Insurane has ome a long !a# from the earlier da#s !hen it

!as originall# onei$ed as a risk o$ering medium for short periods

of time) o$ering temporar# risk situations) suh as sea $o#ages% As

life insurane "eame more esta"lished) it !as reali.ed !hat a useful

tool it !as for a num"er of situations) inluding 5

! T/;*## //+ ? &#/&: The original purpose of life

insurane remains an important element) namel# pro$iding for

replaement of inome on death et%

3! R/)14# S'): 'ro$iding for oneKs famil# and oneself) as a

medium to long term e&erise through a series of regular pa#ment

of premiumsF% This has "eome more rele$ant in reent times as

people seek finanial independene for their famil#%

5! I/&/&: 'ut simpl#) the "uilding up of sa$ings !hile

safeguarding it from the ra$ages of inflation% Unlike regular sa$ing

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produts) in$estment produts are traditionall# lump sum

in$estments) !here the indi$idual makes a one off pa#ment%

+! R/&'#//&: 'ro$ision for later #ears "eomes inreasingl#

neessar#) espeiall# in a hanging ultural and soial en$ironment%

One an "u# a suita"le insurane poli#) !hih !ill pro$ide

periodial pa#ments in oneKs old age%

7et us take an e&ample to understand the need for insurane:

Mr% 'rana# is 64 #ears of age and self5emplo#ed% is !ife 2andini)

!ho is a house!ife) looks after their t!o hildren aged and < #ears%

The# sta# in a rented aommodation) !here the rent is 14)888

rupees per month% Mr% Atul has taken up a loan of 3s% - lakh% is

monthl# earnings on a$erage are 68)888 rupees% Mr% Atul passes

a!a# in an unfortunate road aident% hat are some of the finanial

impliations of his death on his famil#L There ma# "e se$eral

finanial impliations on his famil#% Some of these are:

aF The monthl# inome) pre$iousl# pro$ided "# Mr% Atul !ould stop%

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"F is !ife and hildren ma# ha$e to seek finanial assistane from

other relati$es%

F is !ife ma# not ha$e enough mone# to pa# "ak the loan of 3s%

- lakhs%

dF The famil# ma# ha$e to mo$e into a heaper aommodation%

eF is !ido! ma# ha$e to take up !ork to earn mone#%

fF The eduation of his hildren ma# suffer%

This simple e&ample illustrates the impat premature death an ha$e

on a famil#) !here the main earner has no life o$er% ad Mr% Atul

taken life o$er) his famil# !ould not ha$e faed suh hardships in

the e$ent of his unfortunate death% A simple life insurane poli#

ould ha$e pro$ided Mr% AtulKs famil# !ith a lump sum that ould

ha$e "een in$ested to pro$ide an inome e/ual to all or part of his

inome%

In simple !ords) insurane protets against untimel# losses%

Insurane has "een found useful in the li$es of persons "oth in the

short term and long term% Short term needs like sudden medial osts

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and long term needs like marriage e&penses et an "e met !ith

using life insurane%

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INSURANCE INDUSTRY

I+' I1#5/ I+1: - N/6 A/1/ F*# "#*6&

ith an annual gro!th rate of 145-8 and the largest num"er of life

insurane poliies in fore) the potential of the Indian insurane

industr# is huge% Total $alue of the Indian insurane market -8865

84F is estimated at 3s%648 "illion USN18 "illionF% Aording to

go$ernment soures) the insurane and "anking ser$iesG

ontri"ution to the ountr#Ks gross domesti produt =D'F is


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The #ear 1>>> sa! a re$olution in the Indian insurane setor) as

ma(or strutural hanges took plae !ith the ending of go$ernment

monopol# and the passage of the Insurane 3egulator# and

De$elopment Authorit# I3DAF Bill) lifting all entr# restritions for

pri$ate pla#ers and allo!ing foreign pla#ers to enter the market !ith

some limits on diret foreign o!nership%

Though) the e&isting rule sa#s that a foreign partner an hold -9

e/uit# in an insurane ompan#) a proposal to inrease this limit to

6> is pending !ith the go$ernment% Sine opening up of the

insurane setor in 1>>>) foreign in$estments of 3s% ?%< "illion ha$e

poured into the Indian market and -1 pri$ate ompanies ha$e "een

granted lienses%

Inno$ati$e produts) smart marketing) and aggressi$e distri"ution

ha$e ena"led fledgling pri$ate insurane ompanies to sign up Indian

ustomers faster than an#one e&peted% Indians) !ho had al!a#s

seen life insurane as a ta& sa$ing de$ie) are no! suddenl# turning

to the pri$ate setor and snapping up the ne! inno$ati$e produts on

offer%

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The life insurane industr# in India gre! "# an impressi$e 9) !ith

premium inome from ne! "usiness at 3s% -4%6 "illion during the

fisal #ear -8865-884) "ra$ing stiff ompetition from pri$ate

insurers% 32*OSGs report) Indian Insurane Industr#: 2e! A$enues

for =ro!th -81-J) finds that the market share of the state "ehemoth)

7I*) has loked -1%?

"illion in -88586%

Though the total $olume of 7I*Ks "usiness inreased in the last fisal

#ear -8865-884F ompared to the pre$ious one) its market share

ame do!n from ?


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There are presentl# 1- general insurane ompanies !ith four pu"li

setor ompanies and eight pri$ate insurers% Aording to estimates)

pri$ate insurane ompanies olleti$el# ha$e a 18 share of the

non5life insurane market%

Though the fous of this market researh report is on the potential

gro!th on the Indian Insurane Setor) it also talks a"out the market

si.e) market segmentation) and ke# de$elopments in the market after

1>>>% The report gi$es an instant o$er$ie! of the Indian non5life

insurane market) and o$ers fire) marine) and other non5life

insurane% The data is supplied in "oth graphial and ta"ular format

for ease of interpretation and anal#sis% This report also pro$ides

ompan# profiles of the ma(or pri$ate insurane ompanies%

R/;*#& H')4')&:

• =ains of 7i"erali.ation in Indian Insurane Setor

• Indian Insurane Market Segmentation B# 'roduts

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• Si.e of the Market and Market Share Of 7ife Insurers) In I23

roreF

• Market Share Of 2on57ife Insurers

• +oreast of 7ife Insurane =ro!th Up to -81-

• +oreast of 2on57ife Insurane =ro!th Up to -81-

• Market 3e$enue of Both 'u"li and 'ri$ate Insurers

• 'oliies and Measures Taken B# I3DA To De$elop The Insurane

Market

• 3esearh and De$elopment Ati$ities

•

3egulation of insurane and reinsurane ompanies

• Ma(or *hallenges That Indian Insurane Setor is +aing

• 'rofiles of the Ma(or 'la#ers

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HDFC STANDARD LIFE INSURANCE

T/ I*+15&'*

Standard 7ife Insurane *ompan# 7td% is one of IndiaKs leading

pri$ate insurane ompanies) !hih offers a range of indi$idual and

group insurane solutions% It is a (oint $enture "et!een ousing

De$elopment +inane *orporation 7imited D+* 7td%F) IndiaKs

leading housing finane institution and a =roup *ompan# of the

Standard 7ife) U@% D+* as on Marh 1) -88< holds ?1%> per ent

of e/uit# in the (oint $enture%

O1#


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T#5< R/5*#+ * 8#: Our gross premium inome) for the #ear

ending Marh 1) -88< stood at 3s% -) ?49 rores and ne! "usiness

premium inome at 3s% 1)9-6 rores% The ompan# has o$ered o$er

?)>4 the

ompanies signed a #ear (oint $enture agreement% Around this time

Standard 7ife purhased a 4 stake in D+*) further strengthening

the relationship%

The ne&t three #ears !ere filled !ith unertaint#) due to hanges in

go$ernment and ongoing dela#s in getting the I3DA Insurane

3egulator# and De$elopment authorit#F At passed in parliament%

Despite this "oth ompanies remained firml# ommitted to the

$enture% In Oto"er 1>>?) the (oint $enture agreement !as rene!ed

and additional resoure made a$aila"le%

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Around this time Standard 7ife purhased - of Infrastruture

De$elopment +inane *ompan# 7td% ID+*F% Standard 7ife also

started to use the ser$ies of the D+* Treasur# department to

ad$ise them upon their in$estments in India% To!ards the end of

1>>>) the opening of the market looked $er# promising and "oth

ompanies agreed the time !as right to mo$e the operation to the

ne&t le$el% Therefore) in anuar# -888 an e&pert team from the U@

(oined a hand piked team from D+* to form the ore pro(et team)

"ased in Mum"ai%

Around this time Standard 7ife purhased a further 4 stake in

D+* and a 4 stake in D+* Bank% In a further de$elopment

Standard 7ife agreed to partiipate in the Asset Management

*ompan# promoted "# D+* to enter the mutual fund market%

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P#**&/# *8 HDFC S&+#+ L'8/ I1#5/:

9. HDFC L''&/+

D+* is IndiaGs leading housing finane institution and has helped

"uild more than -)88)888 houses sine its inorporation in 1>


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• 'resented the HDream omeG a!ard for the "est housing finane

pro$ider in -886 at the third Annual Outlook Mone# A!ards%

S&+#+ L'8/ "#*1; (S&+#+ L'8/ ;45 + '& 13'+'#'/!

The Standard 7ife group has "een looking after the finanial needs

of ustomers for o$er 1?8 #ears% It urrentl# has a ustomer "ase of

around < million people !ho rel# on the ompan# for their

insurane) pension) in$estment) "anking and health5are needs%

Its in$estment manager urrentl# administers P1-4 "illion in assets%

It is a leading pensions pro$ider in the U@) and is rated "# Standard

0 'oorKs as KstrongK !ith a rating of AQ and as KgoodK !ith a rating

of A1 "# Mood#Ks Standard 7ife !as a!arded the KBest 'ension

'ro$iderK in -886) -884 and -889 at the Mone# Marketing A!ards)

and it !as $oted a 4 star life and pensions pro$ider at the +inanial

Ad$iser Ser$ie A!ards for the last 18 #ears running%

The K4 StarK aolade has also "een a!arded to Standard 7ife

In$estments for the last 18 #ears) and to Standard 7ife Bank sine its

ineption in 1>>?% Standard 7ife Bank !as a!arded the KBest

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+le&i"le Mortgage 7enderK at the Mortgage Maga.ine A!ards in

-889

I5*#;*#&'*: H+85 S&+#+ L'8/ I1#5/ C*; L''&/+

The ompan# !as inorporated on 16th August -888 under the name

of D+* Standard 7ife Insurane *ompan# 7imited%

Our am"ition from as far "ak as Oto"er 1>>4) !as to "e the first

pri$ate ompan# to re5enter the life insurane market in India% On the

-rd of Oto"er -888) this am"ition !as realised !hen D+*

Standard 7ife !as the onl# life ompan# to "e granted a ertifiate

of registration% D+* are the main shareholders in D+* Standard

7ife) !ith ?1%6) !hile Standard 7ife o!ns 1?%9%

=i$en Standard 7ifeKs e&isting in$estment in the D+* =roup) this

is the ma&imum in$estment allo!ed under urrent regulations%

D+* and Standard 7ife ha$e a long and lose relationship "uilt

upon shared $alues and trust% The am"ition of D+* Standard 7ife

is to mirror the suess of the parent ompanies and "e the #ardstik

"# !hih all other insurane ompan#Ks in India are measured%


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O1# M''*

e aim to "e the top ne! life insurane ompan# in the market% This

does not (ust mean "eing the largest or the most produti$e ompan#

in the market) rather it is a om"ination of se$eral things like5

*ustomer ser$ie of the highest order

alue for mone# for ustomers

'rofessionalism in arr#ing out "usiness

Inno$ati$e produts to ater to different needs of different

ustomers

Use of tehnolog# to impro$e ser$ie standards

Inreasing market share

O1# V41/

1% SE*U3ITY: 'ro$iding long term finanial seurit# to our poli#

holders !ill "e our onstant endea$our% e !ill "e do this "#

offering life insurane and pension produts%

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-% T3UST: e appreiate the trust plaed "# our poli# holders in

us% ene) !e !ill aim to manage their in$estments $er#

arefull# and li$e up to this trust%

% I22OATIO2: 3eogni.ing the different needs of our

ustomers) !e !ill "e offering a range of inno$ati$e produts to

meet these needs% Our mission is to "e the "est ne! life insurane

ompan# in India and these are the $alues that !ill guide us in

this%

$*#+ *8 D'#/5&*#:-

1% Mr% Deepak S 'arekh is the *hairman of the *ompan#% e is also

the E&euti$e *hairman of ousing De$elopment +inane

*orporation 7imited D+* 7imitedF%

-% Mr% @eki M Mistr# is urrentl# the Managing Diretor of D+*

7imited% Mr% Ale&ander M *rom"ie is the =roup *hief E&euti$e

of the Standard 7ife =roup in Marh -886%

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% Ms% Maria D *amp"ell is urrentl# the =roup Operations

Diretor in the Standard 7ife group and is responsi"le for =roup

Operations) Asia 'aifi De$elopment) Strateg# 0 'lanning)

*orporate 3esponsi"ilit# and Shared Ser$ies *entre%

6% Mr% @eith 2 Skeoh is urrentl# the *hief E&euti$e in Standard

7ife In$estments 7imited and is responsi"le for o$erseeing

In$estment 'roess 0 *hief E&euti$e Offier +untion%

4% Mr% =autam 3 Di$an is a pratising *hartered Aountant and is a

+ello! of the Institute of *hartered Aountants of India%

9% Mr% 3an(an 'ant is a glo"al Management *onsultant ad$ising

*EO,Boards on Strateg# and *hange Management%

% Ms% 3enu S% @arnad is the E&euti$e diretor of D+* 7imited%

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PRODUCTS

At D+* Standard 7ife) !e offer a "ou/uet of insurane solutions to

meet e$er# need% e ater to "oth) indi$iduals as !ell as to

ompanies looking to pro$ide "enefits to their emplo#ees% This

setion gi$es #ou details of all our produts% e ha$e inorporated

$arious do!nloada"le forms and produt details so that #ou an

make an informed hoie a"out "u#ing a poli#%

+or indi$iduals) !e ha$e a range of protetion) in$estment) pension

and sa$ings plans that assist and nurture dreams apart from

pro$iding protetion% You an hoose from a range of produts to

suit #our life5stage and needs%

+or organisations !e ha$e a host of ustomised solutions that range

from =roup Term Insurane) =ratuit#) 7ea$e Enashment and

Superannuation 'roduts% These afforda"le plans apart from

pro$iding long term $alue to the emplo#ees help in enhaning

good!ill of the ompan#%

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I+''+14 P#*+15&

e at D+* Standard 7ife realise that not e$er#one has the same

kind of needs% @eeping this in mind) !e ha$e a $aried range of

'roduts that #ou an hoose from to suit all #our needs% These !ill

help seure #our future as !ell as the future of #our famil#%

P#*&/5&'* P4

You an protet #our famil# against the loss of #our inome or the

"urden of a loan in the e$ent of #our unfortunate demise) disa"ilit#

or sikness% These plans offer $alua"le peae of mind at a small

prie% Our 'rotetion range inludes our Term Assurane 'lan 0

7oan *o$er Term Assurane 'lan%

I/&/& P4

Our Single 'remium hole Of 7ife plan is !ell suited to meet #our

long term in$estment needs% e pro$ide #ou !ith attrati$e long

term returns through regular "onuses%

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P/'* P4

Our 'ension 'lans help #ou seure #our finanial independene e$en

after retirement% Our 'ension range inludes our 'ersonal 'ension

'lan) Unit 7inked 'ension) Unit 7inked 'ension 'lus

S') P4

Our Sa$ings 'lans offer #ou fle&i"le options to "uild sa$ings for

#our future needs suh as "u#ing a dream home or fulfilling #our

hildrenGs immediate and future needs% Our Sa$ings range inludes

Endo!ment Assurane 'lan) Unit 7inked Endo!ment) Unit 7inked

Endo!ment 'lus) Mone# Bak 'lan) *hildrenGs 'lan) Unit 7inked

Youngstar) Unit 7inked Youngstar 'lus %

"#*1; P#*+15&

One5stop shop for emplo#ee5"enefit solutions

D+* Standard 7ife has the most omprehensi$e list of produts for

progressi$e emplo#ers !ho !ish to pro$ide the "est and most

inno$ati$e emplo#ee "enefit solutions to their emplo#ees%

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S*5'4 P#*+15&

D//4*;/& I1#5/ P4

De$elopment Insurane plan is an insurane plan !hih pro$ides life

o$er to mem"ers of a De$elopment Agen# for a term of one #ear%

On the death of an# mem"er of the group insured during the #ear of

o$er) a lump sum is paid to that mem"erGs "enefiiaries to help

meet some of the immediate finanial needs follo!ing their loss%

Eligi"ilit#

Mem"ers of the de$elopment agen# and their spouses !ith:

5 Minimum age at the start of the poli# 1? #ears last "irthda#

5 Ma&imum age at the start of poli# 48 #ears last "irthda#

Emplo#ees of the De$elopment Agen# are not eligi"le to (oin the

group% The group to "e o$ered is onl# eligi"le if it ontains more

than 488 mem"ers%

6-


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P#/'1 P/&

The premium to "e paid !ill "e /uoted per mem"er in the group and

!ill "e the same for all mem"ers of the group% The premium an

onl# "e paid "# the De$elopment Agen# as a single lump sum that

inludes all premiums for the group to "e o$ered% *o$er !ill not

start until the premium and all the mem"er information in our

speified format has "een reei$ed% The premium rate is 3s% -4 per

3s% 18)888 of lump sum) per mem"er%

$//8'&

On the death of eah mem"er o$ered "# the poli# during the #ear

of o$er a lump sum e/ual to the sum assured !ill "e paid to their

"enefiiaries or legal heirs% here the death is as a result of an

aident) an additional lump sum !ill "e paid e/ual to half the sum

assured% There are no "enefits paid at the end of the #ear of o$er

and there is no surrender $alue a$aila"le at an# time%

The role of the (evelopment !gency

Due to the nature of the groups o$ered) D+* Standard 7ife !ill "e

passing ertain administrati$e tasks onto the De$elopment Agen#%

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B# passing on these tasks the premium harged an "e lo!er% These

tasks !ould inlude:

• Su"mission of mem"er data in a speified omputer format

• *olletion of premiums from group mem"ers

• 3eording hanges in the details of group mem"ers

• Dis"ursement of laim pa#ments and the mortalit# re"ate if

an#F to group mem"ers

These tasks !ould "e in addition to the usual duties of a poli#holder

suh as:

• 'a#ment of premiums

• 3eporting of laims

• @eeping poli# holder information up to date

Training and support !ill "e a$aila"le to gi$e guidane on ho! to

omplete the tasks appropriatel#% Sine these additional tasks !ill

impose a "urden on the De$elopment Agen#) the De$elopment

Agen# ma# harge a 3s% 18 administration fee to their mem"ers%

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46/110

Se% ?8 *** Aross all inome sla"s% Upto 3s% )>>8 sa$ed on

In$estment of 3s%1)88)888% All the pension plans%

Se% ?8 D Aross all inome sla"s% Upto 3s% )>> sa$ed on

In$estment of 3s% 18)888% All the health insurane riders a$aila"le

!ith the on$entional plans%

TOTA7 SAI2=S 'OSSIB7E 3s%

3s% )>>8 under Se% ?8* and under Se% ?8 *** ) 3s%)>> under

Se% ?8 D) alulated for a male !ith gross annual inome e&eeding

3s% 18)88)888%

Se% 18 18FD Under Se% 1818DF) the "enefits #ou reei$e are

ompletel# ta&5free) su"(et to the onditions laid do!n therein%

Applia"le to premiums paid for *ritial Illness Benefit)

Aelerated Sum Assured and ai$er of 'remium Benefit%

These alulations are illustrati$e and "ased on our understanding

of urrent ta& legislations) !hih are su"(et to hange%

'lease ontat #our ta& onsultant for e&at alulation of #our ta&

lia"ilities%

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6


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LIFE INSURANCE IN INDIA

ith suh a large population and the untapped market area of this

population Insurane happens to "e a $er# "ig opportunit# in India%

Toda# it stands as a "usiness gro!ing at the rate of 145-8 per ent

annuall#% Together !ith "anking ser$ies) it adds a"out < perent to

the ountr#Gs =D' %In spite of all this gro!th the statistis of the

penetration of the insurane in the ountr# is $er# poor% 2earl# ?8

of Indian populations are !ithout 7ife insurane o$er and the

ealth insurane%

This is an indiator that gro!th potential for the insurane setor is

immense in India% It !as due to this immense gro!th that the

regulations !ere introdued in the insurane setor and in

ontinuation Malhotra *ommitteeJ !as onstituted "# the

go$ernment in 1>> to e&amine the $arious aspets of the industr#%

The ke# element of the reform proess !as 'artiipation of o$erseas

insurane ompanies !ith -9 apital% *reating a more effiient and

ompetiti$e finanial s#stem suita"le for the re/uirements of the

eonom# !as the main idea "ehind this reform%

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Sine then the insurane industr# has gone through man# sea

hanges %The ompetition 7I* started faing from these ompanies

!ere threatening to the e&istene of 7I*% Sine the li"erali.ation of

the industr# the insurane industr# has ne$er looked "ak and toda#

stand as the one of the most ompetiti$e and e&ploring industr# in

India% The entr# of the pri$ate pla#ers and the inreased use of the

ne! distri"ution are in the limelight toda#% The use of ne!

distri"ution tehni/ues and the IT tools has inreased the sope of

the industr# in the longer run%

A $#'/8 H'&*#

The origin of insurane is $er# old %The time !hen !e !ere not e$en

"orn man has sought some sort of protetion from the unpredita"le

alamities of the nature% The "asi urge in man to seure himself

against an# form of risk and unertaint# led to the origin of

insurane% The insurane ame to India from U@ !ith the

esta"lishment of the Oriental 7ife insurane *orporation in 1?1?%

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The Indian life insurane ompan# at 1>1- !as the first statutor#

"od# that started to regulate the life insurane "usiness in India% B#

1>49 a"out 146 Indian) 19 foreign and 4< =eneral Insurane *ounil) a !ing of the Insurane

Assoiation of India) frames a ode of ondut for ensuring fair

ondut and sound "usiness praties% In 1>


51/110

It !as after this that 18< insurers amalgamated and grouped into four

ompanies $i.% the 2ational Insurane *ompan# 7td%) the 2e! India

Assurane *ompan# 7td%) the Oriental Insurane *ompan# 7td% and

the United India Insurane *ompan# 7td% =I* inorporated as a

ompan#%

P#//& S5/#'*

The go$ernment of India li"erali.ed the insurane setor in marh

-888 !ith the passage of the Insurane 3egulator# and De$elopment

Authorit# I3DAF "ill% 7ifting all entr# restritions for pri$ate

pla#ers to enter the market !ith some limits on diret foreign

o!nership% premium rate of most general insurane% 'oliies ome

under the pur$ie! of the go$ernment appointed Tariff Agent#

*ommittee% The opening up of the setor is likel# to lead to greater

spread and deepening of insurane in India and this ma# also

restruturing and re$itali.ing of the pu"li setor ompanies% A host

of pri$ate insurane ompanies operating in "oth life and non life

segments ha$e started selling their insurane poliies sine -881%

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2on life insurane market) In Deem"er -888) the =I* su"sidiaries

!ere restrutured as independent insurane ompanies% At the same

time) =I* !as on$erted into national re5insurer% In ul#-88-)

'arliament passed a "ill) delinking the four su"sidiaries from =I*%

'resentl# there are 1- general insurane ompanies !ith 6 pu"li

setor ompanies and ? pri$ate insures% Although the pu"li setor

ompanies still dominate the general insurane "usiness) the pri$ate

insurane ompanies ha$e a 18 perent share of the market) up from

6 perent in -881% In the first half of -88-) the pri$ate ompanies

"ooked premium !orth 9%6 "illion% Most of the ne! entrants

reported losses in first #r of their operation in -881%

Insurane osts onstitute roughl# around 1%- ; - of the total

pro(et osts% Under the e&isting norms) insurane premium

pa#ments are treated as part of the fi&ed osts% *onse/uentl# the# are

treated as pass through osts for tariff alulations%

4-


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+or pro(ets osting up to 3s%1 "illion) the tariff Agent ommittee

sets the premium rates) for pro(ets "et!een 1 "illion and 14 "illion)

the rates are set in keeping !ith ommitteeGs guidelines and pro(ets

a"o$e 14 "illion are su"(eted to reinsurane priing% It is the last

segment that has a num"er of additional produts and ompetiti$e

priing% Insurane) like pro(et finane) is e&tended "# a onsortium%

2ormall# one insurer takes the lead) shouldering a"out 68548 of

the risk and reei$ing proportionate perentage of the premium%

4


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LIFE INSURANCE FINANCIAL CONSULTANT

E4')'3'4'& 8*# I1#5/ A)/&

E$er# person !ho has leared higher seondar# e&amination an

"eome an Agent other than a minor or the person !ho is on$ited

in an# ourt for rime or an# legal proeedings% Men and !omen

"oth an !ork as an Agent% A single person an "e assoiated !ith

other life insurane ompanies%

A training program is there to train a person !ho !ants to "eome an

Agent% There is 188 rs% training program !hih an "e done either

!ith the ph#sial appearane in the lass room or the interest "asis%

In the lassroom training the trainee has to "e ph#siall# present in

the training session% There are differene sessions of training

program% A trainee an attend an# session aording to his omfort%

The training period is of -4 da#s appro&% If the trainee does not ha$e

enough time to de$ote in the lassroom training) then there is another

option left that is training on Internet%

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On the "asis of Internet the trainee has pro$ided a login num"er

along !ith the pass!ord through !hih he operated his login and

ompleted his training hrs% as on$enient% Eah and e$er# hour pass

on the net under his login head !ill "e ount on his aount% The test

for the training program is also on line% This is onl# proedure to "e

an Insurane Agent%

S5*;/ *8 I1#5/ A)/&

In the present senario the li$ing standard is "eoming higher and

higher e$er#da#% E$er# person !ho has a famil# to sur$i$e !ants to

pro$ide his famil# eah and e$er# possi"le omforta"le thing% e

!ants his hildren to "e a !ell dressed) to "e higher /ualified in a

!ell reogni.ed shool) olleges) institutes and !ants his hildren to

go a"road for higher eduation% e !ants to li$e a lu&ur# life full of

pleasure%

To fulfill all of his needs he has to earn more and more% An# person

an "e on a (o" at a time or an "e on a "usiness anGt fulfill his

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pleasure re/uirement% There is a soure through !hih he an make

mone# in a legal !a# that is insurane setor%

Beoming an insurane Agent pro$ides him the legal soure "#

!hih he an earn mone# !ith his urrent status% It is the "usiness in

!hih #ou deal !ith #ou personal ontats and an gain e&tra

inome% This "usiness needs lo! in$estment an not of muh effort%

Its all depend on #our soial ontats and #our skills to on$ine

people "# helping them to suggest the produt !hih suited them the

most%

As due to ritial diseases) gro!ing perentage of aident and fear

of finanial risis e$er# one !ants to seure his or her future%

Insurane setor pla#s a $ital role in assuring people a"out their

future% As the sope of insurane enhaning) the need of an insurane

Agent !ho an guide the potential ustomers is gro!ing%

Being an Insurane Agent of D+*5STA2DA3D 7I+E

I2SU3A2*E pro$ides a legal mean to earn mone# !hih protets a

person from earning through a illegal soure !hih is harmful for

soiet# as !ell as himself% +or the #oungsters it pro$ides great

4


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platform to pro$e them% On the "asis of their performane the# an

"e reruited as unit manager%

Its reruitment proedure is $er# eas#% A person !ith high eduating

and !ell e&periene an "e reruited after a personal inter$ie! and

group disussion% After the training program is ompleted the

Insurane Agent has to appear for the pre5e&amination onduted "#

I3DA% As he lear the e&am he pro$ides a liense) !hih is the proof

of a legali.ed insurane Agent) !hih permits him to deal in his

insurane "usiness%

RECRUITMENT PROCESS:

S&/; ' #/5#1'&/& *8 I1#5/ A)/&

Approah to the likel# person

Appointment as per ondition

Disuss the topi

=i$e the douments !hih inludes:5

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1% 'rospetus of the ompan#

-% Brohure

% *ompan#Gs plan

6% Cuestionnaire

*ollet the doument after itGs ompletion

+or!ard it to pro(et manager

+eed it in the omputer as the data"ase

+ollo! up as per onditions

M*+/ *8 C*&5&

'ersonal *ontats

3eferenes

'hone *alls

=uidane as per Unit Manager

4>


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98


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RESEARCH METHODOLO"Y

R//#5: 5 is a proess of olleting) anal#.ing) interpreting and

summari.ing in a signifiant manner for the purpose of framing out

neessar# onlusion and findings of data perei$ed and formulated

for deri$ing out the meaningful information% To arr# our researh

neessar# telephoni alls needed to "e done) suita"le appointments

!ere to "e fi&ed and therefore market sur$e# is to "e follo!ed%

O3/5&'/ *8 ''): 5 To understand life insurane and

reruitment of apa"le life insurane ad$isors for gro!th prospets%

P#*5/: Methodolog# or proess in$ol$ing in the 3esearh follo!ed

during the ourse of summer training is as follo!s: 5

aF *olletion of data: 5 This is an important aspet in formulating

the o"(eti$e of researh proess !here the data is olleted $ia

t!o proess: 5 iF 'rimar# Soures and iiF Seondar# soures

iF )rimary sources: 5 here the data is olleted primaril# "#

inter$ie!ing and personal o"ser$ation and is original in nature

and aurate to the onsidera"le e&tent%

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iiF 'econdary sources: 5here the data is o"tained from some

pu"lished and printed soures suh as ne!spaper) maga.ines)

!e"sites and so on%

"F Anal#.ing of olleted data: 5 The data olleted through market

sur$e# and pu"lished soures is then proessed to o"tained

neessar# inferenes and findings for the purpose of ahie$ing the

o"(eti$e as !ell as to deri$e neessar# onlusion% A

onsidera"le skill and kno!ledge is in$ol$ed in anal#.ing the

data for the purpose of interpreting thereof%

F Interpreting of data: 5 it is the signifiant step !here the data

olleted and anal#.ed is interpreted in the forms of graphs and

figures is depited in the report alled 'ro(et report%

dF Summari.ing of data: 5 There"# neessar# summar# is prepared

!hih is essential in the pro(et report of the summer training

"eing done under an organi.ation%

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H/4;814 A# *8 R//#5 M/&*+*4*): -

B1/&'*'#/: 5 Cuestionnaire is a set or group of /uestions "eing

framed for the purpose of o"taining market perspeti$e a"out a

partiular aspet or topi%

There are t!o t#pes /uestionnaire "ing arried neessar# for the

market sur$e# of the summer training "eing undertaken and put for

the "# the trainee to the sample people taken as a "ase for entire

population:

aF *pen ended +uestionnaire: 5 !here the people also alled

respondentsF are re/uired freedom to present their $ie!s and

suggestions for the "enefits and suess of the organi.ation%

"F lose ended questionnaire: 5 !here the respondents is limited to

the hoie of ans!er "eing deli$ered "# the inter$ie!er itself so

that /uik and fast means of responses "e deri$ed out !ithout

!asting muh time% ere lose ended /uestionnaire "eing

follo!ed "# me during the ourse of the summer training market

sur$e#%

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S;4'): 5 Sampling is a proess of o"taining a num"er of

indi$iduals taken a "ase for the entire population sine entire

population an not "e asked a"out the neessar# o"(eti$e upon

!hih a /uestionnaire is put forth needed for the responses to "e

deri$ed for the purpose of generation of fats and ustomer $ie!

point regarding their pereption of partiular produt or ser$ies%

There are t!o t#pe of sampling ; iF 3andom Sampling and iiF

S#stemati sampling%

iF &andom sampling : 5 3andom sampling is a proess of

seleting the sample si.e randoml# and no hoie or

preferene to "e made a"out the seletion of respondents for

the market sur$e# and /uestionnaire to "e put forth against

him% ere) 3andom sampling "eing adopted "# me%

iiF 'ystematic sampling : 5 it is a sampling !here the limited

num"er of seleted respondents is figured out "ased on some

riteria so that onl# those respondents an "e asked for the

purpose of filing /uestionnaire%

S;4/ S'/: 5 184 respondents%

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MARKET SURVEY

+rom the sur$e# it !as dra!n that life insurane is more a protetion

of human asset $alue against unertaint# onferred "# 41

respondentsF !here it is a ta& sa$ing option "eing aepted "# ?

respondentsF% 7ife insurane is a ser$ie in$ol$ing "oth these

prere/uisites as depited "# remaining 19 respondents% The

follo!ing depited this:

'rotetion of human asset $alue against unertaint# 41

Ta& "enefit de$ie ?

Both 19

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It has "een o"ser$ed and applied as a 7ife insurane is an essential

ser$ie and should "e applia"le to e$er# one) as fa$ored "#

onsidera"le


68/110

hen further en/uired a"out the /ualifiation of respondents) it !as

found that 4


69/110

+urther) the age /ualifiation for agen# reruitment) it !as found

that > respondents !ere "elonging to 1? ; -4 age group) 4

!ere "elonging to -4 ; 4 age group !here as -8 to 4 564 age

group and remaining 9 to a"o$e 64 age group% Also depited in the

follo!ing tale mentioned "elo!: 5

1?5-4 age group 61

-4 ; 4 age group <

4 ; 64 age group -1

A"o$e 64 age group 9

9>


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3espondents had different $ie!s a"out the dissatisfation from the

present status of !orking or oupation% Dissatisfation has "een

depited in a ta"le "elo! and graphiall# a"o$e:

7o! emplo#ment -6 7o! earning 9 uge apital in$estment 1<

7o! status 1? All of the a"o$e 18


71/110

hen asked a"out !hether the# !ould like to kno! a"out a glorified

areer in life insurane agen# !here the# an fulfill an# and e$er#

desire of their life) 4> respondents agreed !hile 69 respondents said

2o and !ill see later sometime in future% It has "een depited that

life insurane setor should "e promoted at the !ide e&tent as it

ontri"ute to the eonom# as a useful soure "enefiial for "oth

nation as !ell as is iti.ens%


72/110

Indeed 7ife insurane is a no"le "usiness as it pro$ides a needful

finanial support in the situation of fatal alamit# !here the famil# is

depri$ed "# the fat to li$e in future and sustains their li$ing% hen

sur$e#ed a"out life insurane as a no"le ser$ie% ?> respodents

agreed and "elie$e that insurane is a "ettering ser$ie to human life

and soiet# as a !hole !here as 1> respondents sho! disagreement%


73/110

+rom the 4> respondents !ho agreed to kno! a"out the life

insurane as a areer) 1? of them agreed to (oin D+* Standard life

insurane for agen# and ome to the ompan# fore more

information !hereas 61 still took time to think and postponed to

some future date% 'eople are highl# dissatisfied from the earning)

status and li$ing standard the# are sustaining at present and !ould

definitel# like to make some additional soure of earning and for this

agen# for life insurane !ould pro$e a "oon%


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+rom all 184 respondents) >- agreed that life insurane setor is a

gro!ing onern and !ill gro! at a rapid pae in future !here as 1

took as a mere stagnant industr#% +inanial ser$ies are gro!ing at a

tremendous pae as people are urging to make their in$estment in

lurati$e opportunities and therefore life insurane setor is pla#ing a

$ital role in eduating the people to make their in$estment !hih

ould seure their future) needs and li$ing despite some fatal

alamit# that might or might not our%


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Among


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SWOT ANALYSIS

STREN"THS

1% D+* Standard life insurane offers a range of indi$idual and

group insurane solutions%

-% D+* Standard 7ife has the finanial e&pertise re/uired to

manage #our long5term in$estments safel# and effiientl#%

% The ompan# has o$ered o$er ?)


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-% Belief to!ards 7I* as it is a go$ernment orporation pho"ia is

ontinue to surmount the people of India despite lots of fla!s

and de$elopment and li"erali.ation of life insurane%

% Alternati$e finanial ser$ies suh as mutual fund) "anking

ser$ies) share and seurities also pose pro"lems and threats to

the !orking of the life insurane setor%

6% Illitera# and unemplo#ment also pose threat%

4% 3ising real estate industr# also pose threat as people are

in$esting a "ulk of their mone# o$er to that industr#%


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?8


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CONCLUSION

Summer training is a "est e&ample for a trainee to learn a"out the

ompan# !orking) orporate ulture under !hih is operating the

funtions% D+* standard life insurane is a life insurane ompan#

under !hih I gained a signifiant kno!ledge !ith respet to life

insurane) its importane and applia"ilit# as !ell as undertook the task

to reruit apa"le life insurane ad$isors !hih is ondui$e for the

ompan# to gro! !ith more prosperit#% hat I taught in the

management institute utili.ed them fruitfull# leading to the "est

ad$antage to the ompan# and to the "est e&periene for mine%

At far I an onlude that life insurane is a no"le ser$ie !hih is

$er# important for e$er# iti.en to learn and reali.e its importane

"eause this is the onl# soure !hih an remain the status !here

one is !ith the famil# "read earner and e$er !hen he is not%

ith the gro!ing finanial setor I !ould like to opt this industr# for

m# future areer ad$anement and as an opportunit# to ser$ie this

industr#%

?1


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?-


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RECOMMENDATIONS

+ollo!ing are suggestions made for the "enefits and augmentation of

the sound !orking of the ompan# ; D+* Standard life insurane:

1% 2eed to train and de$elop life insurane agents !ith more

omprehensi$e kno!ledge and skills to ounter e$er# /ueries

of the ustomer%

-% It is suggested that ompan# should not left an# stone unturned

to!ards sound ad$ertisement and promotional measures on

e$er# setion !hether it is printed) media or or air $ia radio%

% It is also suggested that skilled management graduates need to

"e plaes on sales and marketing of finanial ser$ies !ho an

render their "est ideas for the aomplishment of the ompan#

goals and o"(eti$es to the "est e&tent%

6% Also) are need to "e taken that e$er# ustomerGs grie$ane

should "e met !ith delight !hether "efore purhase or after

sales%

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4% There should "e an e&pansion measure for more offies and

9% loation of more entres for offies of the ompan# "e

esta"lished sop that ompan# ma# gro! its net!ork%


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$I$LIO"RAPHY

+ollo!ing are soures !hih helped me during m# summer training:

$OOKS:

@OTA3I *%3%: &esearch -ethodology -anagement ) #+ E+'&'*

@OT7E3 'I7I': -arketing -anagement J 11th R/'/+ /+'&'* )-88-

"UPTA S.P%: 'tatistical -ethods Thirteen re$ised edition) -881

MA"AINES:

India Toda#

Business orld

REFERENCES

W/3'&/: 5

!!!%hdfinsurane%om

!!!%irdaindia%org

!!!%liounil%org

!!!%"usinessonnet%om

?9

http://www.hdfcinsurance.com/http://www.irdaindia.org/http://www.liccouncil.org/http://www.businessconnect.com/http://www.hdfcinsurance.com/http://www.irdaindia.org/http://www.liccouncil.org/http://www.businessconnect.com/


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?


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BUESTIONNAIRE

N/: -

A)/:-

L*5&'*: -

O551;&'*: -

B.9. W& +* *1 / 3 4'8/ '1#5/>

aF 'rotetion of human asset $alue against unertaint#

"F A sum reei$ed after death

F Both

B.2. D* *1 &'< 4'8/ '1#5/ ' //&'4 8*# //# */>

aF Yes

"F 2o

??


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B.. W& ' *1# 14'8'5&'*>

aF 'ost graduate

"F =raduate

F Senior seondar#

B.G. D* *1 5*/ 1+/#:

aF 1?5-4 age group

"F -4 ; 4 age group

F 4 ; 64 age group

dF A"o$e 64 age group

B.. W& +'&'8'/+ *1 *& ' *1# *551;&'*

aF 7o! emplo#ment

"F 7o! earning , inome

F 7o! status

dF uge apital in$estment

?>


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eF All of the a"o$e

B.. W*14+ *1 4'

aF Yes

"F 2o

B.7 D* *1 ;/#5/'/ && 4'8/ '1#5/ 31'/ ' *34/

/#'5/ *#'/&/+ 31'/>

aF Yes

"F 2o

B.. W*14+ *1 4'

aF Yes

"F 2o

>8


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B.. D* *1 )#// && &/ 4'8/ '1#5/ 31'/ ' )#*6')

'+1 + 6'44 )#*6 + #;'+ ;5/ ' 81&1#/>

aF Yes

"F 2o

B.90. D* *1 8*# &/ ;#'&'&'* *8 4'8/ '1#5/ 3 &/

"*/#/& 6/#/ ')'8'5& 13/# *8 5*;'/ *6 '

&/ #

aF Yes

"F 2o

Suggestions: 5

/.

0.

1.

2.

3.

VISHAL KUMAR SHRIVAISHNAV

>1


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HDFC STANDARD LIFE INSURANCE

"LOSSARY

Appliation for insurane: This is the form on !here #ou state

information and ans!er /uestions from the insurane ompan# a"out

#ourself and #our histor#% This appliation along !ith information

from a medial e&amination) if taken) from #our ph#siians) an#

hospitals #ou ma# ha$e $isited and in$estigation are !hatKs used "#

the insurane ompan# to deide !hether or not to offer #ou life

insurane and at !hat rate%

Aident Benefit: A rider or An add5on !ith a life poli#% It

ompensates a poli#holder in the e$ent of death or in(ur# "#

aident

Annuit#: An in$estment option that makes a series of regular

pa#ments to an indi$idual in e&hange for a premium or a series of

premia%

Appreiate: To gro! in $alue

Asset: E$er#thing o!ned or due to a person

>-


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Asset alloation: o! #our in$estments are spread aross $arious

asset lasses

Benefiiar#: The personsF named in the poli# to reei$e the life

insurane proeeds upon the death of the insured%

Bond: It is like an IOU% B# "u#ing a "ond #ou loan mone# to a

ompan#) a muniipalit#) state or the *entral =o$ernment

Bonus: The amount paid as return in a H!ith5profitG poli#% The

"onus) e&pressed as a perentage of the sum assured) is generall#

delared e$er# #ear% The amount is linked to the profits earned "# the

insurer% Depending on the time of !ithdra!al) there are t!o kinds of

"onuses ; re$ersionar# and ash% A re$ersionar# "onus an "e

enashed onl# on maturit# of the poli# a ash "onus an "e

!ithdra!n !hen delared

Budget: It is a tool used to monitor and ontrol e&penditures and

purhases%

*ash SurrenderF alue: The amount that is a$aila"le in ash for

loans and that ma# "e a$aila"le for !ithdra!als in a !hole life

insurane) uni$ersal life insurane or sur$i$orship life insurane

>


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poli#% Aessing *ash Surrender alue ma# redue the death

"enefit and ma# inrease the risk of lapse%

*ontesta"ilit#) *ontesta"le *lause: In insurane there is a lause)

!hih e&plains the onditions under !hih the insurer ma# ontest

or $oid the life insurane poli#% This ontesta"ilit# is for a limited

period of time) !hih in most states is t!o #ears% After that period

of time the insurane ompan# annot ontest the poli#%

*on$erti"le Term Insurane: Term insurane !hih an "e

e&hanged on$ertedF) at the option of the poli#o!ner and !ithout

e$idene of insura"ilit#) for a !hole life insurane poli# or

uni$ersal life insurane poli#%

*apital gains: 'rofit earned from the sale of stoks) mutual fund

units and real estate% 7ong5term apital gains arise from assets

o!ned for more than a #ear !hile short5term apital gains are made

from assets o!ned for less than a #ear%

*ompound Interest: Interest omputed on prinipal plus interest

arued during the pre$ious periods of the in$estment

*ritial illness rider: A rider that pro$ides a poli#holder finanial

protetion in the e$ent of a ritial illness

>6


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Endo!ment plans: An insurane plan that pro$ides a poli#holder

risk o$er and some return on in$estment%

Effeti$e rate of interest: The true rate as against the nominal rate)

!hih ma# "e inorret%

E/uit#: The atual o!nership interest in a speifi asset or group of

assets

+inanial planning: It o$ers the essential elements of a personGs

finanial affairs and is aimed at ahie$ing a personGs finanial goals%

+i&ed deposit: +unds plaed on deposit in a "ank) ompan# or post

offie at a fi&ed rate of interest%

+ae Amount: The amount stated on the fae of the poli# that !ill

"e paid in ase of death% It does not inlude additional amounts

pa#a"le under aidental death or other speial pro$isions) or

a/uired through the appliation of poli# di$idends%

+i&ed5inome in$estment: An# in$estment that pro$ides a stated

perentage of $alue) sa# 9 per ent) on the in$ested amount%

=roup Insurane: An insurane poli# taken out "# emplo#ers to

pro$ide life o$er to their emplo#ees% *heapest form of insurane

>9


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=uaranteed additions: The amount paid as returns in assured5return

insurane plans% =uaranteed additions are e&pressed as a perentage

of the sum assured) !ith the amount pa#a"le "eing stated "# the

insurer at the outset%

=rae 'eriod: 7ife insurane premiums are due on a ertain date) if

#ou are late in pa#ing) poliies allo! a period of time !here #ou an

still pa# #our premium and not lose #our pol#% This is the grae

period% Most poliies allo! a grae period of 8 da#s from the due

date% After the grae period) if the premium is not paid) the poli#

an lapse i%e% "e terminated "# the insurane ompan#%

Insura"ilit#: Aepta"ilit# to the ompan# of an appliant for

insurane% here Insured or Insured 7ife: The person on !hose life

the poli# is issued%

Immediate annuit#: An annuit# that starts pa#ments immediatel#

after) or soon after) the first premium is paid

Inde& fund: A sheme !hose portfolio mirrors the progress of a

partiular inde&) "oth in terms of omposition and indi$idual stok

!eight ages% ItGs a passi$e in$estment option) as a fundGs

>


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performane !ill mimi the inde& onerned) "arring a minor

traking error%

Insured: The poli#holder

Insurer: The insurane ompan#

In$estments: Assets like fi&ed deposits) post offie sa$ings) "onds

and stoks that are a/uired for the purpose of earning a return

In$estment risks: The risks that #our in$estments fae% These inlude

the risk of interest rate flutuations impating #our de"t in$estments

or the pries of e/uities going do!n%

@e# person life insurane: hen one has a ke# person in a "usiness

!ithout !hom the "usiness !ould suffer finaniall#) ke# person life

insurane is often purhased !hih helps to reim"urse the ompan#

for the "usiness loss inurred "# the death of this person%

7e$el 'remium 7ife InsuraneF: 7ife insurane for !hih the

premium remains the same from #ear to #ear% The premium is

normall# more than the atual ost of protetion during the earlier

#ears of the poli# and less than the atual ost in the later #ears% The

"uilding of a reser$e is a natural result of le$el premiums% The

>?


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7ife E&petan#: The a$erage num"er of #ears remaining for an

indi$idual to li$e sho!n at eah age "ased on long term studies "#

insurane ompanies% These statistis as sho!n on harts alled

mortalit# ta"les%%

7ife Insurane: A ontrat "et!een an o!ner often the insured

personF and a life insurane ompan# that guarantees the pa#ment of

a stated amount of mone# on the death of the insured%

7oan 'oli# 7oanF: A loan made "# a life insurane ompan# from

its general funds to a poli# o!ner on the seurit# of the ash $alue

of a poli#%

Market $alue: The monetar# $alue an asset !ill feth if sold in the

market toda#%

Maturit# date: The date on !hih a poli# term or fi&ed5inome

in$estment like fi&ed deposit or "ond omes to an end%

Mone#5"ak plans: A $ariant of endo!ment plans !here sur$i$al

"enefits are dis"ursed through the poli# term) than paid lump sum%

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2et asset $alue 2AF: A shemeGs 2A is its net assets the market

$alue of the finanial seurities it o!ns minus !hate$er it o!esF

di$ided "# the num"er of units it has issued%

2ominee: The personsF nominated "# the poli#holder to reei$e

the poli# "enefits in the e$ent of his death%

'artiipati$e plans: H!ith5profitG poli#

'ension 'lan: In$estment produts offered "# insurane ompanies

and mutual funds that re/uired the in$estor to make defined

ontri"utions o$er regular periods) mostl# e$er# #ear% The

ontri"utions are in$ested aording to a pre5deided in$estment

plan% At retirement) the aumulation is paid out through regular

pa#5out options%

'eriodi pa#ment in$estments: In$estment options that ha$e pa#outs

in fi&ed inter$als% +or e&ample) mone#5"ak life insurane poliies%

'ermanent partial disa"ilit#: 'ermanent loss of an# "od# part) one

e#e) one lim" or one finger or a toe) or in(uries that render the

insured in apa"le of earning an inome from the date of the aident

on!ards from an# !ork) oupation or profession%

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'ermanent total disa"ilit#: 'ermanent loss of use of an# t!o lim"s)

or permanent and omplete loss of sight in "oth e#es or an# other

in(ur# that renders the insured inapa"le of earning an inome%

'oli#: The legal doument issued "# an insurane ompan# to a

poli#holder that states the terms and onditions of an insurane

ontrat%

'oli#holder: The person !ho "u#s an insurane poli# as insured%

'oli# term: period for !hih an insurane poli# pro$ides o$er

'ost offie shemes: Also kno!n as Small Sa$ings shemes) the# are

offered at post offies and arr# the highest returns among fi&ed

inome instruments% =o$ernment "aking makes these instruments

like 'u"li 'ro$ident +und ''+F) 2ational Sa$ings *ertifiate

2S*F) @isan ikas 'atra @'F and 'ost Offie Monthl# Inome

Sheme 'OMISF risk5free

'remium: The amount paid "# the insured to the insurer to "u# o$er

3eurring deposit: This is offered "oth in post offie and "anks

!here #ou are re/uired to ontri"ute a fi&ed amount e$er month% It is

a great tool for making small and regular sa$ings%

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3e$ol$ing redit: A pre5esta"lished redit line) t#piall# in a redit

ard) against !hih a person ma# "orro! to make purhases%

3iders: Additional o$ers that an "e added to a life poli#) for a ost

Sum assured: The amount of o$er taken under a life insurane

poli#) it is the minimum amount that !ill "e paid on death of the

poli#holder during the poli# term%

Surrender $alue: The amount pa#a"le "# the insurer to the o!ner of

an in$estment5"ased plan in ase he opts to terminate the poli# after

three #ears the mandator# lok5in periodF "ut "efore its maturit#

date%

Sur$i$al "enefits: The amount pa#a"le to a poli#holder under an

in$estment5"ased plan if he sur$i$es the poli# term%

Temporar# total disa"ilit#: An in(ur# that results from an aident

and renders a person immo"ile or affets his earning apait#

temporaril#%

Term plans: A plan that pro$ides life o$er for a speified period of

time) "ut no return on the premia paid

Terminal "onus: one5time "onus paid on maturit# $ia!ith5profit plan

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esting date: It is a date signif#ing a milestone in a poli#% In

pension plans) it is the date from !hih the poli#holder starts

reei$ing pension% In hildrenGs plans) it is the date from !hih a

hild "eomes the o!ner of a poli# taken out in his name

generall#) around his 1?th "irthda#F%

ai$er of premium rider: A rider that !ai$es the premia pa#a"le on

the "ase poli# and other riders in ertain irumstanes mostl#

related to death) disa"ilit# or in(ur#% An important feature espeiall#

for in$estment produts suh as hildrenGs poliies%

ealth: The differene "et!een the $alue of !hat #ou o!n assetsF

and !hat #ou o!e lia"ilitiesF%

ith5profit poli#: An insurane plan in !hih the poli#holder gets

a share of the insurerGs profits in the form of guaranteed additions ,

"onusF% Along !ith the sum assured%

ithout5profit poli#: An insurane plan in !hih the poli#holder

does not get an# share of the insurerGs profits

hole5life plans: *lass of life insurane poliies that pro$ide o$er

through #our lifetime%

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Mutual life insurane ompan#: A life insurane ompan# o!ned "#

the poli#holders% 'oli#holders of a mutual life insurane ompan#

ma# partiipate in the di$isi"le surplus of the life insurane

ompan# as o!ners% The# an reei$e di$idends) most ommonl#

on !hole life poliies) !hih an enhane the ash $alue) inrease

the insurane amount or lo!er premiums%

O!ner of a life insurane poli#: A life insurane poli# an "e

o!ned "# the insured person or an indi$idual) a ompan# or a trust

!ith an insura"le interest in the insured person% Insura"le interest

means there !ould "e a finanial loss "# the o!ner in the e$ent of

the death of the insured person%

'aid5up Insurane: Insurane that !ill remain in fore !ith no need

to pa# additional premiums%

'artiipating 'oli#: A life insurane poli# that is eligi"le for the

pa#ment of di$idends "# the insurer see also Di$idend%F

'ermanent 7ife Insurane: An# form of life insurane e&ept term

generall# insurane that "uilds up a ash $alue) suh as !hole life%

Uni$ersal life and !hole life are t#pes of permanent life insurane%

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'oli# O!ner: The person !ho o!ns a life insurane poli#% This is

usuall# the insured person) "ut it ma# also "e a relati$e of the

insured) a partnership or a orporation%

'remiums: 'a#ments to the insurane ompan# to "u# a poli# and

to keep it in fore%

3ene!a"le Term Insurane: Term insurane !hih an "e rene!ed at

the end of the term) at the option of the poli# o!ner and !ithout

e$idene of insura"ilit#) for a limited num"er of suessi$e terms%

The rates generall# inrease at eah rene!al as the age of the insured

inreases%

3eturn of premium life insurane: Also kno!n as return of premium

term life insurane) this is term life insurane for a period of time

!here one reei$es a guaranteed return of premiums paid if #ou keep

the poli# for the term period% +or e&ample) -8 #ear return of

premium term !ould guarantee a return of premium paid after #ou

paid -8 #ears of premium% Most of these poliies also gi$e a partial

return of premium if #ou keep the poli# for a great part of the #ears%

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Seond to die life insurane: 7ife insurane that pa#s the "enefit

after t!o people die% See sur$i$orship life insurane in this glossar#%

Stok life insurane ompan#: A stok life insurane ompan# is

o!ned "# stokholders% *ontrast this !ith mutual life insurane

ompan#%

Sur$i$orship life insurane: 7ife insurane purhased on t!o

indi$iduals) usuall# man and !ife) !here the life insurane "enefit is

paid after "oth indi$iduals ha$e died% This t#pe of life insurane

"eame popular as a solution to pa#ing estate ta&es% The estate ta&

la! allo!ed a ouple to dela# pa#ing estate ta&es until "oth had died%

Thus) sur$i$orship life insurane "eame popular as a less e&pensi$e

!a# for heirs to pa# estate ta&es% The premiums are less than "u#ing

life insurane on one life% B# pa#ing premiums no! the theor# is

that one an pre5pa# the estate ta&es "eause of the lump sum that

omes in after the seond death% %

Term life Insurane: Term insurane is life insurane o$erage for a

speified period of time% This an "e at a guaranteed rate or in some

ases a guaranteed rate for a period of time and then a pro(eted rate%

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Term periods an "e for 1 #ear) 4 #ears) 18 #ears) 14) -8 and e$en 8

#ears% +or e&ample: 8 #ear le$el term !ould guarantee a le$el

premium for 8 #ears "ased on a speified death "enefit% Term life

insurane is usuall# the least e&pensi$e form of life o$erage) at least

initiall#% After the initial term period of #ears) 4)18)14) -8) 8 et% the

poli# ould terminate or it an rene! at a higher premium%

If #ou are allo!ed to rene! it at a higher premium "ased on #our

then attained ageF) it is alled rene!a"le term life insurane%

Uni$ersal life insurane: Uni$ersal life insurane is permanent life

insurane !ith premiums that are not guaranteed% To a ertain

degree one an design a premium on this t#pe of poli#%

Uni$ersal life insurane often an "e set up !ith a lo!er premium

initiall# than !hole life insurane%

'remiums and $alues are "ased on pro(etions of assumed interest

rates) the ost of insurane also kno!n as mortalit# ostF and the

insurane ompan#Ks e&penses% The atual premium paid ma#

inrease "eause interest rates ma# go lo!er or the pro(eted ost of

insurane ma# inrease%

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ai$er of premium: This is an e&tra or add5in alled a rider in

insurane lingoF that an "e added to most indi$idual life insurane

poliies !hih !ai$es allo!s #ou to stop pa#ingF the pa#ment after

the insured person has "een disa"led as desri"ed and defined in the

insurane poli#F for a speified period of time) usuall# si& months%

At that time) the si& months premium paid along !ith future

premium pa#ments are !ai$ed%

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