lovely professional university final report

7/30/2019 Lovely Professional University Final Report

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LOVELY PROFESSIONAL UNIVERSITY

DEPARTMENT OF MANAGEMENT

Report on Summer Training

Insurance as an investment tool with regards to ULIPS

Submitted to Lovely Professional University

In partial fulfillment of the

Requirements for the award of Degree of

Masters in Business Administration

DEPARTMENT OF MANAGEMENT

LOVELY PROFESSIONAL UNIVERSITY

JALANDHAR NEW DELHI GT ROAD

PHAGWARA

PUNJAB


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CERTIFICATE BY THE PROJECT INCHARGE

I hereby declare that the project work entitledInsurance as an investment tool with regards to

ULIPS is an authentic record of my own work carried out at ICICI Prudential Life Insurance

Company Ltd, Phagwara as requirements of Summer Internship Project for the award of

degree of MBA, Lovely Professional University, Phagwara, under the guidance of Ms Gurpreet

kaur during the period of 28th May, 201313th July, 2013.

Date: 3 August, 2013

I certified that the above statements made by the student are correct to the best of our knowledge

and belief

Ms Gurpreet kaur

(Faculty Coordinator)


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ACKNOWLEDGEMENT

This report is the result of continuous effort made and extended by many people. This report

would not have been successful without the kind support from many people. I would first like to

thankLovely Professional University, Department of Management for designing a platform

where we can gain not only theoretical knowledge but also practical knowledge.

I would like to express my deep gratitude to Mr.Jaswinder Singh Sandhu, Area Sales Manager,

for providing me with the opportunity to undergo my internship in ICICI Prudential Life

Insurance Company Ltd, Phagwara.

I would also like to thank Ms. Gurpreet Kaur, Lecturer, LPU for guiding and helping me in

each and every stage of the Project, whose help, suggestions and encouragement helped me in

writing this Project Report.

I specifically would like to express my heartiest thank to all the staff members of ICICI

Prudential Life Insurance Company Ltd, Phagwara for their cooperation and their help during

the internship as well as in the project. This project would not have been possible without their

patience, time and support.


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Table of contents

Titles Page No

1. Chapter I

- Executive summary- Introduction to the topic- Introduction of the company

67-1920-24

2. Chapter 2

- Literature review 26-29

3. Chapter 3

- Purpose of the study-

Scope of the study- Objective of the project31

31314. Chapter 4

- Research methodology- Data analysis and

Interpretation

33-34

35-49

5. Chapter -5

- Observations- Recommendations- Conclusion

51-5252-5253

6 Chapter - 6- Questionnaire- Bibliography 55-5859-60


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EXECUTIVE SUMMARY INTRODUCTION TO THE TOPIC INTRODUCTION OF THE COMPANY


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EXECUTIVE SUMMARY

This summer training report has been prepared as a partial fulfillment of the Masters in Business

Administration of Lovely Professional University, Department of Management. The training was

undertaken in the Insurance sector so as to get an insight and understanding into the same

industry and also to pursue the prospect of a career. ICICI Prudential Life Insurance Company is

a joint venture between ICICI Bank, a premier financial powerhouse and prudential plc, a

leading international financial services group headquartered in the United Kingdom. ICICI

Prudential was amongst the first private sector insurance companies to begin operations in

December 2000 after receiving approval from Insurance Regulatory Development Authority

(IRDA). As the people are becoming more and more and aware of their Life Style and Incomelevel. They need a plan, which has an optimum balance between their Investment and Savings.

They require an integrated financial plan for investment. The customer requires those investment

options, which provide them with flexibility and Liquidity and tax benefit.

I found out tools relates to investment in ULIP at ICICI Prudential life insurance. This project

emphasis on Insurance as an investment tool with regards to ULIP at ICICI Prudential Life

Insurance Company Ltd Phagwara.


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PART ONE: INTRODUCTION

Insurance: Definition and Meaning

Functional definition:

In the words of R.S.Sharma Insurance is a Co-operative devices to spread the loss caused

by particular risk over a number of persons who were exposed to it and who agree top insure

themselves against the risk

Contractual Definition:

According to E.W.Patterson, Insurance is a contract by which one party, for a consideration

called a premium, assures a particular risk of other party ad promises to pay to him or his

nominee a certain or ascertainable sum of money on a specified contingency.

According to the U.S Life Office Management Association Inc (LOMA), Life Insurance is

defined as follows: Life insurance provides a sum of money if the person who is insured dies

whilst the policy is in effect.

Other terms used in relation to insurance and their meaning:

Agent: The authorized representative of the insurer, licensed by the concerned authorities like

IRDA to canvass insurance.

Bonus: The yearly share of policy holders profit declared by the company based on its profits

which gets added to the policy amount and is payable upon its maturity.

Claim: The amount entitled to the policy holder or his nominee/assignee under a policy contract

in the event of the happening of the contingency insured against.

Insurable Interest: Evidence suggesting financial losses due to the occurrence of the event

insured against.

Policy: The evidence of contract between the insurer and the insured. A stamped sealed and

signed document issued by the insurer to the insured in proof of insuring his life.


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Premium: The amount mentioned in the policy contract to be paid by the insurer periodically to

the insure to keep the policy in full force.

INTRODUCTION ABOUT ULIP:

The concept of ULIP came in to existence in 1960s to provide an optimum balance between

protection and investment.

ULIP distinguishes itself through the multiple benefits it provides to the policyholders. These

plans are designed with a view to help the customers to utilize the market opportunities by

investing in the share market, capital market and at the same time have the facility of Death

Benefit and Maturity Benefit. Unit-linked life insurance products are those where the benefits are

expressed in terms of number of units and unit price. They can be viewed as a combination of

insurance and mutual funds. The number of units that a customer would get would depend on the

unit price when he pays his premium. The daily unit price is based on the market value of the

underlying assets (equities, bonds, government securities, etc) and computed from the net asset

value. The advantage of unit-linked plans is that they are simple, clear, and easy to understand.

Being transparent the policyholder gets the entire upside on the performance of his fund. Besides

all the advantages they offer to the customers, unit-linked plans also lead to an efficient

utilization of capital.

Unit-linked products are exempted from tax and they provide life insurance. Investors welcome

these products as they provide capital appreciation even as the yields on government securities

have fallen below 6 per cent, which has made the insurers slash payouts.

According to the IRDA, a company offering unit-linked plans must give the investor an

option to choose among debt, balanced and equity funds. If you choose a debt plan, the majority

of your premiums will get invested in debt securities majority of your premiums will get invested

in debt securities like gilts and bonds. If you choose equity, then a major portion of yourpremiums will be invested in the equity market. The plan you choose would depend on your risk

profile and your investment need. The ideal time to buy a unit-linked plan is when one can

expect long-term growth ahead. This is especially so if one also believes that current market

values (stock valuations) are relatively low. So if you are opting for a plan that invests primarily

in equity, the buzzing market could lead to windfall returns. If one invests in a unit-linked


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pension plan early on, say when one is 25, one can afford to take the risk associated with

equities, at least in the plan's initial stages. However, as one approaches retirement the quantum

of returns should be subordinated to capital preservation. At this stage, investing in a plan that

has an equity tilt may not be a good idea. Considering that unit-linked plans are relatively new

launches, their short history does not permit an assessment of how they will perform in different

phases of the stock market. Even if one views insurance as a long-term commitment, investments

based on performance over such a short time span may not be appropriate.

Simply put ULIPs work very similar to a mutual fund with a life cover thrown in. They

have a mandate to invest the premiums in varying proportions in gsecs (government securities),

bonds, the money markets (call money) and equities. The primary difference between

conventional savings-based insurance plans like endowment and ULIPs is the investmentmandate- while ULIPs can invest up to 100% of the premium in equities, the percentage is much

lower (usually not more than 15%) in case of conventional insurance plans. ULIPs are also

available in multiple options like `aggressive' ULIPs (which can invest up to 100% in equities),

`balanced' ULIPs (which invest 40-60% in equities) and `debt' ULIPs (which invest only in debt

and money market instruments). The exact expense structure/ break-up for ULIPs is as

transparent as one would have liked. Broadly speaking, ULIP expenses are classified into three

major categories:

1. Mortality charges:Mortality expenses are charged by life insurance companies for providing a life cover to

the individual. The expenses vary with the age, sum assured and sum-at-risk for the

individual. There is a direct relation between the mortality expenses and the above

mentioned factors. In a ULIP, the sum-at-risk is an important reference point for the

insurance company. Put simply, the sum-at-risk is the difference between the sum assured

and the investment value the individual's corpus as on a specified date.

2. Sales and administration charges:Insurance companies incur these expenses for operational purposes on a regular basis.

The expenses are recovered from the premiums that individuals pay towards their


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insurance policies. Agent commissions, sales and marketing expenses and the overhead

costs incurred to run the insurance business on a day-to-day basis are examples of such

expenses.

3. Fund Management Charges:These charges are levied by the insurance company to meet the expenses incurred on

managing the ULIP investments. A portion of ULIP premiums are invested in

equities, bonds, gsecs and money market instruments. Managing these investments

incurs a fund management charge, similar to what mutual funds incur on their

investments. FMCs differ across investment options like aggressive, balanced and

debt ULIPs; usually a higher equity option translates into higher FMC. Apart from the

three expense categories mentioned above, individuals may also have to incur certain

expenses, which are primarily `optional' in nature- the expenses will be incurred if

certain choices that are made available to individuals are exercised.

4. Switching Charges:Individuals are allowed to switch their ULIP options. For example, an individual can

switch his fund money from 100% equities to a balanced portfolio, which has say,

60% equities and 40% debt. However, the company may charge him a fee for

`switching'. While most life insurance companies allow a certain number of free

switches annually, a switch made over and above this number is charged.

5. Top Up Charges:ULIPs allow individuals to invest a top-up amount. Top-up amount is paid in addition

to the premium amount for a particular year. Insurance companies deduct a certain

percentage from the top-up amount as charges. These charges are usually lower than

the regular charges that are deducted from the annual premium.

6. Cancellation Charges:Life insurance companies levy cancellation charges if individuals decide to surrender

their policies (usually) before three years. These charges are levied as a percentage of

the fund value on a particular date.


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Investment tools of unit linked insurance plans:

FUND NAME

AND ITS

OBJECTIVES

ASSEET

ALLOCATION

MIN. MAX. POTENTIAL

RISK-

REWARD

R.I.C.H: Returns

from equity

investment in four

types of industries,

viz, resources,

investment/capital

goods,

consumption and

human capitalleveraged.

Equity and equity

related securities

Debt, money

market, and cash.

80%

0%

100%

20%

High

Flexi growth II:

Long term returns

from an equity

portfolio of large,

mid and small

capital companies.

Equity and equity

related securities

Debt, money

market, and cash.

80%

0%

100%

20%

High

Multiplier II: Long

term capital

appreciation from

equity portfolio.

Equity and equity

related securities

Debt, money

market, and cash

80%

0%

100%

20%

High

Flexi Balanced II:

Balance of capital

appreciation and

stable returns froman equity (large,

mid and small

capital) and debt

portfolio.

Equity and equity

related securities

Debt, money

market, and cash

0%

40%

60%

100%

Moderate


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Balancer II:

Balance growth

and steady returns

from an equity and

debt portfolio.

Equity and equity

related securities

Debt, money

market, and cash

0%

60%

40%

100%

Moderate

Protector II:

Accumulate steady

income at a lower

risk

Debt insurance,

money market, and

cash100% 100% Low

Types of ULIPS

One of the big advantages that a ULIP offers is that whatever be your specific financialobjective, chances are that there is a ULIP which is just right for you. The figure below gives a

general guide to the different goals that people have at various age-groups and thus, various life-

stages. Depending on your specific life-stage and the corresponding goal, there is a ULIP which

can help you plan for it.

ULIPs for retirement planning

Retirement is the end of active employment and brings with it the cessation of regular income.

Today an increasing number of people have stated planning for their retirement for below

mentioned reasons:

Almost 96% of the working population has no formal provisions for retirement With the growing nuclearisation of family structure, traditional support system of the younger

earning members is no longer available

Developments in the healthcare space has lead to an increase in life expectancy Cost of living is increasing at an alarming rate Pension plans can accumulate over a period of time to provide a steady income post-retirement.

Usually all retirement plans have two distinctive phases

The accumulation phase when you are saving and investing during your earning years to build upa retirement corpus and


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The withdrawal phase when you actually reap the benefits of your investment as your annuitypayouts begin

In a typical pension plan you have the flexibility to make a lump sum payment or a regular

contribution every year during your earning years. Your money is then invested in funds of your

choice. You can opt to receive the annuity at any time after vesting age (age at which you

become eligible for pension chosen by you at the inception of the plan).

Most of the Unit linked pension plans also come with a wide range of annuity options which

gives you choice in structuring the post-retirement benefit pay-outs. Also at the time of vesting

you can make a lump sum tax-exempted withdrawal of up to 33 per cent of the accumulated

corpus.

In a Retirement plan, the earlier you begin the greater you gain post retirement due to the powerof compounding.

Let us take an example of Gaurav&Hari. Both of them want to retire at the age of 60. Gaurav

starts investing Rs. 10,000 every year from the age of 25 till the time that he retires. In all, he

would have invested Rs. 350,000. If his investments were to earn 7% return every year, at the

time of his retirement, Gaurav will have a retirement corpus of Rs. 13, 82,368.

Now, Hari starts investing 10 years later (i.e. at the age of 35) and in order to make up for the

lost time, invests Rs.15,000 every year (which is 50% more than Gaurav's annual investment).So, by the time of his retirement, he would have invested Rs. 3,75,000. And assuming the same

annual return of 7%, he will end up with a retirement corpus of Rs 9, 48,735.

So, you see how despite setting aside more than 50% of Gaurav's annual contribution, Hari ends

up with a retirement corpus which is almost a third lesser than Gaurav's. That is the power of

compounding. Which is why, it is never too early to invest in a ULIP for retirement planning.


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ULIPs for long term wealth creation

ULIPs are the right insurance solutions for you if you are looking for a strong wealth creation

proposition allied to a core insurance benefit. Such plans are ideal for people who are in their late

20s and early 30s and by investing in such a plan get the flexibility of using it to fund any of

their long-term financial goals such as purchase of a house or funding their children's education.

The added element of life cover serves to make these plans a wholesome financial investment

option.

Wealth Creation ULIPs can be primarily classified as:

Single premium - Regular premium plan:Depending upon you needs & premium paying capacity you can either opt for a single premium

plan where you need to pay premium only once during the term of entire policy or regular

premium plans where you can premium at a frequency chosen by you depending upon your

convenience

Guarantee plans - Non guarantee plans:Today there is wealth creation ULIPS which also offer guaranteed benefit. These plans are ideal

insurance-cum-investment option for customers who want to enjoy the potentially higher returns

(over the long term) of a market linked instrument, but without taking any market risk. On the

other hand non guarantee plans comes with an in - built range of fund options to choose from -

ranging from aggressive funds (Primarily invested in equities with the general aim of capital

appreciation) to conservative funds (invested in cash, bank deposits and money market

instruments with aim of capital preservation) so that you can decide to invest your money in line

with your market outlook, time horizon and your investment preferences and needs.

ULIPs for child education

One of the most important responsibilities you have as a parent is to ensure that your child getsthe best possible education that can be provided. Apart from conventional schooling, it becomes

important to expose your child to different activities such as dance, painting and sports training

for holistic development. As a parent, you want to ensure that their development is not hampered

either due to rising costs or unforeseen circumstances.

Today there are ULIPs that offer money at key milestones of your child's education thus ensuring


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that your child's education continues unhampered even if something unfortunate happens to you.

While, the death of a parent is an irreparable emotional loss, child education plans safeguard the

child against the financial ramifications of the death of a parent.

Apart from above mentioned benefit, child plans also offers below mentioned features.

Flexibility of adding on various riders like Income benefit rider, disability rider etc to getadditional benefits .For e.g. In case of income benefit rider, In the event of the death of the

parent, the child will receive a regular pre-determined amount every year to meet the educational

expenses.

In case of unfortunate incidence of the death of a parent, not only will the child receive the sumassured immediately but will also continue to receive money at the key educational milestones.

ULIPs for health solutions

When you are young and working you save for various goals like marriage, education, retirement

etc. but saving for health care is never considered or left for later. During these years we have

various sources of income or savings on which we can rely for health emergencies.

But with increasing cost of healthcare, proportion of this spend is increasing at an alarming pace.

This is forcing families to borrow or sell assets to meet expenses during medical emergencies.

And during old age health care expenses increase due to health deterioration because of age and

higher incidence of chronic illness. Thus it is important for you to invest in health insurance

today so that tomorrow you are fully prepared to meet rising healthcare expenses, which would

be incurred during old age, with the right health insurance plan.

Health ULIP is a recent innovation from the health insurance industry. In a health ULIP part of

your premiums are allocated for investment designed specifically to build a health fund to meet

future health related expenses. It aims to create a health savings kitty by investing in a long term

flexible savings plan with multiple fund options. The health fund thus created allows you to

claim for health related expenses of any kind and also fund your future health insurance charges.

You can also avail of tax benefit on premium paid u/s 80D.

One of the big advantages that a ULIP offers is that whatever be your specific financial

objective, chances are that there is a ULIP which is just right for you. The figure below gives a


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general guide to the different goals that people have at various age-groups and thus, various life-

stages.

The ULIP edge

ULIPs are dynamic plans and are flexible by nature and hence allow for changes and high degree

of customization in the plan as opposed to most of the financial plans which once purchased

cannot be modified. It is because of embedded characteristics of transparency, flexibility,

liquidity & goal based savings that ULIPs have emerged as preferred investment option today.

The following subsections will not only help you to understand various attributes of ULIPs but

also guide you to use these features to manage your policy.

Flexibility

Flexibility to change your life cover: ULIPs give you the flexibility to choose your sum assured(insurance cover) at the time of policy inception. Moreover, some ULIPs allow you to increase

your sum assured over the term of the plan. This is crucial as your protection needs keep on

changing with time .Typically, greater the financial liabilities you have such as repayment of a

home loan, greater will be your need for protection.

Flexibility to change premium amount: With ULIPs you can easily change premium amountas most ULIPs provide you the option to increase or reduce premiums after a certain period of

time to match your premium paying capability. Another distinguishing feature of ULIP is Top up

which is an additional contribution over & above regular premium so that if you receive extra

money today you can invest the amount in your policy & maximize your investment gains.

Flexibility to opt for a rider: ULIPs also enable you to customize the policy with optionalriders to enjoy additional protection. Riders are additional or supplementary benefits that are

bought along with the main insurance policy. Some of the commonly offered riders by most

insurance companies are critical illness benefit rider, accident & disability benefit rider, waiver

of premium rider etc. For ex. a critical illness rider cover major critical illnesses like heart attack

etc. In case of contracting any of the above illness, the insurance company pays the insured

amount.


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Flexibility to choose your fund option : Most of the ULIPs come with an in - built range offund options to choose from -ranging from aggressive funds to conservative funds so that you

can decide to invest your money in line with your investment preferences and needs. What's

more, ULIPs even come with the option of switching between different fund options so that you

are able to reap maximum benefits from your investments.

Transparency

One of the key advantages that ULIPs offer is complete transparency which makes the working

of a ULIP abundantly clear to the investor. Thus, you are empowered to make informed

decisions on how to best use your ULIP.

Benefit Illustration: As a customer it is your right to ask for a sales benefit illustration. Salesbenefit illustration will help you understand how premium paid by you is utilized & what are the

charges deducted year by year, by the insurance company for the term of the plan . It will also

illustrate how your policy will grow in accordance with the chosen sum assured & premium. In

fact IRDA has mandated that all insurance companies use two scenarios with 6 % & 10 % return

rate to depict future returns.

Brochures and key feature documents: While benefit Illustrations play a significant role inexplaining the quantitative aspects of ULIPs, it is also important for you to know the other

features and benefits which the ULIP offers. All insurance companies come out with brochures

for prospective customers to go through & understand the plan thoroughly. You should ask your

insurance advisor to provide brochure of the ULIP you intend to purchase.

Once a policy gets issued, your insurer will send you a key feature document capturing all the

essential features of the plan. This is to ensure complete comprehension of the plan purchased.

Free-look period: ULIPs also offer you a distinct feature that no other financial product offersas of now. It is called Free-look period which is a 15 day window during which you can close the

policy & get paid back the entire premium less charge borne by company in issuing the policy in

case you are unhappy with the product.


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Net Asset Value: It is critical that you monitor the performance of your policy on a regularbasis. This will help you ascertain whether you are on right financial track or not. To help you do

so all life insurance companies publish the NAV of different fund options on their website on a

daily basis so that you can track the performance of your policy on a regular basis. This will also

help you make informed decisions when it comes to comparing fund performances.

Goal Based Savings

Everyone needs to save for their important life goals. One of the prudent ways to do so is by

investing in ULIPs which are long-term systematic investment options designed to address key

financial goals. ULIPs help you cultivate a disciplined savings pattern which ensures that the

money being set aside will go towards the fulfillment of the specific objective. In the absence of

such a focused approach, there is a high possibility of savings towards one objective getting

utilized for an immediate short-term requirement, thus jeopardizing the long-term goal.

Tax Benefits

ULIPs are an efficient tax saving instrument too .The tax benefits that you can avail in case you

invest in ULIPs are described below:

Life insurance plans are eligible for deduction under Sec. 80C Health insurance plans are eligible for deduction under Sec. 80C Life insurance plans and critical illness riders are eligible for deduction under Sec. 80D The maturity proceeds or withdrawals of life insurance policies are exempt under Sec 10(10D),

subject to norms prescribed in that section.


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ULIP BENEFITS APPLICABLE CHARGES

RIDERS: Riders are additional or supplementary

benefits that are bought along with a main life

insurance plan. Some of the commonly offered

riders are critical illness benefit rider, accident &

disability benefit rider, waiver of premium rider etc.

For ex. In case you opt for a Critical illness rider you

get additional protection from 9 critical illnesses.

Insurance companies levy rider charges in case

you opt for riders.

SWITCH: ULIPs not only allow you to invest your

money in fund options with various debt equity

exposure but also give you the option to switch

between different funds. For example, you can

switch money from a fund with 100% equity to a

balanced portfolio, which has 60 per cent equity and

40 per cent debt.

Your insurance company may charge you a fee

for switching your funds Generally only a limited

number of fund switches are recommended in a

year as a ULIP is a long-term investment tool

therefore most of the companies allow a certain

number of switches each year free of charge,

with subsequent switches, subject to a minimal

charge.

TOP UP: One of the unique feature offered by ULIP

is Top Up where you can make additional

contribution over & above the regular premium.

Insurance companies deduct a certain percentage

from the top-up amount as charges. These

charges are usually lower than the regular

charges that are deducted from the annual

premium.

SURRENDER: You may decide to surrender

(premature partial or full encashment of units) your

policy before the term of the plan.

Surrender charge may be deducted for

premature partial or full encashment of units

wherever applicable, as mentioned in the policy

conditions. These charges are levied as apercentage of the fund value or as a percentage

of the premium.


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1.2 Company Profile:

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premier

financial powerhouse and prudential plc, a leading international financial services group

headquartered in the United Kingdom. ICICI Prudential was amongst the first private sector

insurance companies to begin operations in December 2000 after receiving approval from

Insurance Regulatory Development Authority (IRDA).

Vision:

To be the dominant Life and Pension player built on trust by world class people and service.

This they hope to achieve by:

Understanding the needs of customers and offering them superior products andservice

Leveraging technology service customers quickly, efficiently and conveniently Developing and implementing super risk management and investment strategies

to offer sustainable and stable returns to their policyholders

Providing an enabling environment to foster growth and learning for theiremployees

And above all, building transparency in all their dealings.

Values:

Customer First: Own Customer; deliver the promiseo Keep customer interest in the centre of all decisions.o Promise what you can, deliver it to finish.o Proactively seek Voice of Customer and act on it.

Boundary less: Never say Its not my jobo Offer help and support across functions to ensure business success.o Seek and share ideas freelyo Recognize and respect internal customers.o Understand and value contributions from colleagues.

Ownership: If it is to be, it is up to meo Take responsibility and see tasks through to completion.


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o Own mistakes, learn from mistakes.o Pursue goals relentlessly, never give up.o Be a team player, take ownership for team performance.

Passion: Boundless energy and enthusiasmo Exhibit Winning Instinct.o Demonstrate speed and urgency for achieving results.o Challenge status quo and do things differently.o Nurture and motivate team members to reach full potential.

Integrity: Be honest and fair in what you say and doo Practice what you preacho Stand up honestly and fearlessly for what is righto Act in a consistent and equitable mannero Think and act for long term impact.

ICICI Prudential Life Insurance

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, which is

one of India's foremost financial services companies, and Prudential plc, which is a leading

international financial services group headquartered in the United Kingdom. ICICI Prudential

began the operations in December 2000. Today, this company has over 2100 branches, which

include 1,116 micro-offices, over 290,000 advisors and 18 banc assurance partners.

ICICI Prudential Life Insurance Company is the first life insurer in India that received a National

Insurer Financial Strength rating of AAA (Ind) from Fitch ratings. ICICI Prudential has been

voted as India's Most Trusted Private Life Insurer for three consecutive years. ICICI Prudential

Life Insurance Company has various insurance plans that have been designed for different

individuals, as every individual has different insurance needs.


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Management Profile:

Directors

K. V. Kamath, Chairman

Mark Norbom

Lalita D. Gupte

KalpanaMorparia

ChandaKochhar

H. T. Phong

M. P. Modi

R. Narayanan

KekiDadiseth

Shikha Sharma, Managing Director

N. S. Kannan, Executive Director

SandeepBatra, Chief Financial Officer & Company

Secretary

Investment

Committee

Lalita D. Gupte,

Chairperson

H. T. Phong

Shikha Sharma

N. S. Kannan

V. Rajagopalan

SandeepBatra

Puneet Nanda

Governance

Committee

Lalita D. Gupte

H. T. Phong

Shikha Sharma


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Risk Management & Audit Committee

M. P. Modi, Chairman

H. T. Phong

KalpanaMorparia

Executive

Committee

Shikha Sharma

N. S. Kannan

V. Rajagopalan

PROMOTERS

ICICI Bank Limited (NYSE:IBN) is India's largest private sector bank and the second largest

bank in the country with consolidated total assets of about US$ 95 billion as of March 31, 2009.

ICICI Banks subsidiaries include Indias leading private sector insurance companies and among

its largest securities brokerage firms, mutual funds and private equity firms. ICICI Banks

presence currently spans 19 countries, including India.

Prudential

Established in London in 1848, prudential plc is a leading internal retail financial services group

with significant operations in Asia, the US and the UK. Prudential has been writing protection

and savings insurance for over 160 years, and today has more than 21 million customers

worldwide and over 249 billion in assets under management (as of December 31, 2008). In Asia,

Prudential is the leading Europe-based life insurer with operations in China, Hong Kong, India,

Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand, and Vietnam.

Prudential is one of the largest asset management companies in terms of overall assets sourced in

Asia ex-Japan, with 36.8 billion funds under management (as of December 31, 2008) and

operations in ten markets including China, Hong Kong, India, Japan, Korea, Malaysia,

Singapore, Taiwan, Vietnam and United Arab Emirates.


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Organizational Structure

CHAIRM

CEO & MD

ZONAL

MANAGER

TERRITORY

MANAGERS

SALES

MANAGER

UNIT

MANAGERS

AGENCY

MANAGER

S. AGENCY

MANAGER

BRANCH

MANAGER


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LITERATURE REVIEW

Mihir Dash along with Lalremtluangic C, Snimer Atwal and Supriya Thapar in theirpaper titled, A study on risk-return characteristics of life insurance policies observe that

endowment plans have higher rate of return with mortality incorporated, while for unit-

linked investment plans, the rate of return is higher when it is treated purely as an

investment instrument.

Achintya Mandal (2008-09) in his paper, Overview of Indian Insurance market in post-liberalization era growing challenges and opportunities and the Fight for FDI. The

opening up of insurance sector in 2000 allowed private players into the market. The

foreign players could also enter the market with limit of 26% on direct ownership. The

aggressive marketing strategies adopted by the private and foreign players have expanded

the market for insurance. As a result of this even though the share of PSUs is larger than

their private counterparts, the percentage of market share is coming down.

News release by Swiss Re Sigma study (2003) on Unit linked life insurance in WesternEurope regaining momentum said that the surge in equity market helped to provide good

returns as a result of which ULIP became popular investment tools during 1990s. The

share of unit linked business grew from 21% to 36% between 1997 and 2001. Fallingmarkets reduced the demand for ULIP in 2002 but the introduction of capital protection

features helped them to the path of recovery.

Karuna K (2009) in her article appearing in Insurance Chronicle titled Relevance ofULIPs as a good investment tool observes that traditional life insurance plans offered by

LIC took care of only the insurance needs of people. However, with the ever changing

demands of customers a new product called ULIP was launched which combines the

benefits of insurance, investment and tax benefits. It observed that ULIPs are better

suited to investors who have 15-20 years as their time horizon. This helps to spread the

expense over the longer period and reap the benefit.


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Prabakar (2010) in his article Govt's ULIP ruling to hit MFs hard has remarked thatGovernment's decision to treat unit-linked insurance products (ULIPs) as insurance

instruments and allow them to be regulated by Insurance Regulatory and Development

Authority of India (IRDA) will boost the growth of ULIPs. But, equity-oriented mutual

funds, which are governed by the Securities and Exchange board of India (Sebi), will be

affected adversely because of the stiff regulation on the payment of commission to sales

agents.

Subramanyam (2010) in his article NFOs make hay after Sebi bars insurers fromlaunching Ulips has remarked that New fund offers, or NFOs, by mutual funds have

seen a resurgence after the capital market regulator banned life insurance companies from

launching new unit-linked insurance plans (Ulips).

Shah (2010) in his article Finance ministry to call the shots on turf wars has remarkedthat the finance ministry made it clear that it will call the shots on turf wars between

financial sector regulators through a Bill introduced in Parliament on Tuesday. But fresh

doubts have arisen about what the law ministry had earlier said on which regulator should

be in charge of Ulips (unit-linked insurance plans) The Securities and Insurance Laws

(Amendment and Validation) Bill, 2010, moved by finance minister Pranab Mukherjee in

the LokSabha, includes a couple of changes to the 18 June ordinance settling the turf war

over Ulips. The Bill also stuck to the ordinances line that Ulips would be supervised by

the insurance regulator, the Insurance Regulatory and Development Authority (Irda).

Khurana (2009) conducted a survey on An Empirical Study on ULIPs of SelectedPrivate Sector Life Insurance Companies has remarked thatin his study he concluded

that the pension plans of ICICI Prudential are most reasonable as far as charges in

different ULIPs are concerned. The performance of HDFC SL Unit Linked Plans is better


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than other plans. The difference between the performances of pension plans of selected

companies is not much significant. Also, the performance of pension funds does not

differ significantly from their benchmarks.

Prasad (2009) in his study on ULIP- The Tasters Perception on the Mixed Bag of Fruitsconcluded that Majority of investors prefer insurance as an investment for mitigating the

future risk. They are interested in ULIPs as they offer fund o options and flexibility. The

variables affecting the choice for ULIP products are correlated and they are fund

management charges, reliability of insurer, insurance coverage charges. Demographic

factors also have significant impact over the level of investment in ULIPs. Also, agents

are the most preferred channels of distribution of insurance policies.

Ohio (2009) explore in his article Indian Insurance Industry has remarked thatInsurance is the subject matter of solicitation has little relevance to non life insurance

products, primarily because, customers have no ambiguity about the product being

insurance, and hence scope for misleading information by solicitors. These disclosure

regulations may not be construed as detrimental to marketability of insurance products or

to be taking the tone of disclaimers. It is in the best interest of insurers and intermediaries

to follow these norms voluntarily rather than under compulsion of regulations

Soni(2009) in his article ULIP and investment instruments has analyzed thatAll investment instruments have their unique set of advantages to offer. It is vital for

respondents to be aware of the nuances in a particular offering and make informed

decisions. When investing in a Unit Linked Insurance Plan, popularly called ULIP, it is to

be borne in mind that ULIPs being a market linked instrument will fetch good returns on a

long term basis. The basic advantage of a ULIP over other investment instruments is that it

offers the twin benefits of life insurance as well as an investment.

Kumar (2008) in his article Bancassurance in India: Issues & Implications hasremarked that With the opening up of insurance sector and so many players entering in

the insurance industry it is required by the insurance company to come up with well

established infrastructure facilities with good call centre service to attract and provide


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information to customers regarding different good policies and their premium pay

scheme. The size of country, a diverse set of people combined with problems of

connectivity in the rural areas, Makes insurance selling in India is a very difficult task.

Life insurance companies require good distribution strength and tremendous man power

to reach out such a huge customer base.

Nagpal (2000) in his paper titled Psychology of Investments and Investors Preferencesfounded that every individual investor must follow three principles of investing. Using a

long-term investing approach, following the right strategy to maximize the return on

investment and proper allocation of investible funds. While applying these three

principles, an individual investor has to confront his/her demographics, lifestyle and

investment psychology. The knowledge of all these aspects is imperative

for all progressive investors, researchers, financial consultants, academicians,

students and the marketer of the financial products.

Sung & Hanna (1996) in their study titled Factors Related to Risk Tolerance, analyzedthat Education is also a factor that is thought to increase a persons capacity to evaluate

risks inherent to the Investment Process & therefore endow them with a higher financial

risk tolerance. However, he derives a model that suggests an element of circularity in this

argument, as the relative risk aversion of an Individual is shown to determine the rate of

human capital acquisition.

Babu, Chiranjeevi, Prasad &Rao in their research Unit linked Insurance Plans TheTasters perception on the mixed bag of fruits has finded that Most of the investors prefer

insurance for mitigating the future risk, agents are most preferred channels of distribution

of insurance policy, variables affecting the investors choice of ULIPs product

arecorrelated. Fund management charges, reliability of insurer, insurance coverage are

most affecting variables in the selection of ULIPs product by investors.


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Purpose of the Study

The main purpose of the study is to find out the factors which are influencing the investment

tools regards with ULIP and to suggest some strategies which will help the organization and to

understand the perception and satisfaction level of customers who have invested in ULIPS.

Scope of the study:

The scope of the study will helps to the peoples for their choice of investment. The study will help to know the expectations of the ULIP in future. The company can find out the satisfaction level of the ULIP of their product plans. The scope of the study will help the company will find the problems of peoples investing

in ULIP.

Objectives

To know the importance and awareness of investment in ULIP To know the risk perception of investors. To know the elements of risk and returns in ULIP To examine the performance of the plan


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RESEARCH METHODOLOGY DATA ANALYSIS INTREPRETATION


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RESEARCH METHODOLOGY

SAMPLING:-

Sample size : 50 respondents Sampling Method : Random sampling Data collection method : Personal Interview Sample Unit : Respondents in Phagwara

The study was conducted as descriptive method to collect primary and secondary data.

DATA SOURCE:

PRIMARY SOURCE OF DATA:

Primary data are those collected by the investigator himself for the first time and thus they are

original in character, they are collected for a particular purpose. A well-structured questionnaire

was personally administrated to the selected sample to collect the primary data.

SECONDARY SOURCE OF DATA:

Secondary data are those, which have already been collected by some other persons for their

purpose and published. Secondary data are usually in the shape of finished products. Data

collected for the preparation of the project work was generated companys brochures, internet

(websites) etc.


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SAMPLE SIZE

Sample size denotes the number of elements selected for the study. For the present study, 50

respondents were selected at random.

Instrumentation Technique:

To know the response, I used questionnaire method. It has been designed as a primary

research instrument. Questionnaires were distributed to respondents and they were asked to

answer the questions given in the questionnaire.

The questionnaires were used as an instrumentation technique, because it is an important method

of data collection. The success of the questionnaire method in collecting the information depends

largely on proper drafting. So in the present study questions were arranged and interconnected

logically.

Learning experience

The environment in which the company operates is that of a highly competitive energetic

atmosphere. And as a fresher that is an excellent start to begin ones corporate experienceespecially in the service sector (life insurance) with. This training has provided a vital learning

element in the career of freshers. As it has enabled us to realize most of the classroom training

obtained so far in a real life corporate environment. And so there has been a link developed

between theory and practices. Through this implant training students can experience the kind of

break that awaits us in the corporate world.

This exercise also gets us to understand the amount of dedication and determination that

professionals would have to put in, in their every days work because the decisions they take is a

matter of loss or profit for the company. And mistakes are generally not entertained in the quality

circles. The study alsoenlightened us with the amount of togetherness the staff of ICICI

Prudential have as an expandable family in their working culture. This is enumerated with all the

employees taking mentioning interest in sharing their colleagues problems either physical or

mental in comforting them, as would normally happen in a family set.


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Data Analysis

Q. From which company you have taken Unit Linked Plan?

Names Frequency Percentage

LIC 17 34

ICICI PRU 12 24

HDFC 8 16

MET LIFE 4 8

TATA AIG 3 6

BAJAJ ALLIANCE 5 10

OTHERS 1 2

Interpretation:

According to my project survey out of 50 respondent 34% invest in LIC, 12% invest in

ICICI Prudential life insurance, 16% invest in HDFC STAN, 10% invest in Bajaj Allianzs, 8%

invest in Met life, 6% in Tata AIG and 2% of respondent other companies.

0

5

10

15

20

25

30

35

40

PERCENTAGE

PERCENTAGE


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Q. Which factor do you consider before investing in ULIPS?

Reasons Frequency Percentage

Safety of principle 15 30

Low risk 8 16

High returns 25 50

Maturity period 2 4

Interpretation:

According to my project survey out of 50 respondent 50% considers high returns before

investing in Ulips, 30% consider safety of principle, 16% consider low risk and 4% consider

maturity period before investing in Ulips

safety of

principle

low risk high

returns

maturity

period

0

10

20

30

40

50

60

Percentage

percentage


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Q. How long have you been investing in ULIPs?

Frequency Percentage

For the last 1-5 years32 64

For the last 5-10 years 15 30

For the last 10-15 years 3 6

.

Interpretation:

According to my project survey out of 50 respondent 64% has been investing since last 1-5

years, 30% from last 5-10 years and 6% from last 10-15 years.

From last 1-5

years

From last 5-10

years

From last 10-15

years

0

10

20

30

40

50

60

70

Percentage

Percentage


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Q. In the past you have invested mostly in (choose one):


Saving a/c and PO schemes 22 44

Mutual funds 9 18

ULIPS 2 4

Other in instruments like real

estate, gold

17 34

Interpretation:

According to my project survey out of 50 respondents 44% said that they had invested in savings

a/c and PO schemes, 18% in Mutual funds, 4% in ULIPS and 34% had invested in real estates,

gold etc.

Savings a/c

and PO

schemes

Mutual funds ULIPS Real estate,

gold etc

0

5

10

15

20

25

30

35

40

45

50

Percentage

Percentage


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Q. What is your purpose to invest in ULIPS?


Risk cover 10 20

High Returns 35 70

Tax savings 5 10

Interpretation:

According to my project survey out of 50 respondents 20% invests in ULIPS for risk cover

against uncertainties, 70% invested for High returns and 10% invested for tax savings.

Risk cover High Returns Tax savings0

10

20

30

40

50

60

70

80

Percentage

Percentage


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Q. Which type of ULIP product you have?


Child plan 8 16

Pension Plan 28 56

Savings Plan 14 28

Interpretation:

According to my project survey out of 50 respondents 16% has taken Child Plan, 56% has taken

Pension Plan and 28% has taken Savings Plan.

Child Plan Pension Plan Savings Plan

0

10

20

30

40

50

60

Percentage

Percentage


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Q. What do you feel after investing in Unit Linked Plans?


Good 25 50%

Averagely satisfied with

investment decision

19 38%

Cheated 6 12%

Interpretation:

According to my project survey out of 50 respondents 50% of them felt well about their

investment decision, 38% were averagely satisfied and 6% felt cheated after investing in ULIPS.

And if we talk about ICICI PRUDENTIAL customers out of 12, 7 felt good after investing in

ULIPS and 5 were averagely satisfied which was a good respond.

Good Averagely satisfied Cheated

0%

10%

20%

30%

40%

50%

60%

Percentage

Percentage


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Q. How do you rate the Premium Amount to be paid in Unit Linked Plans?


High 8 16

Medium 26 52

Low 16 32

Interpretation:

According to my project survey out of 50 respondents 16% says that the rate of premium paid by

them is high, 52% says that the rate of premium said by them is medium and 32% says that the

rate of premium paid for ULIPS is low.

And if we talk about ICICI PRUDENTIAL 6 out of 12 respondents says that the rate of

premium paid by them is low, 5 says that the rate of premium is moderate and 1 of the

respondent feels that the premium paid by him is high.

0

10

20

30

40

50

60

High Medium Low

Percentage

Percentage


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Q. How do you rate the returns in Unit Linked Plans?


Good 32 64

Average 14 28

Poor 4 8

Interpretation:

According to my project survey out of 50 respondents64% says that the rate of return is good,

28% says that the rate of return is average and 8% says the rate of return is poor.

And if we talk about ICICI PRUDENTIAL 8 out of 12 feels that the rate of return in ULIPS is

good and 4 says that the rate of return is average.

0%

10%

20%

30%

40%

50%

60%

70%

Good Average Poor

Percentage

Percentage


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Q. How do you rate the risk associated with Unit Linked Plans?


High 19 38%

Average 21 42%

Low 10 20%

Interpretation:

According to my project survey out of 50 respondents 38% says that the rate of risk associated is

high, 42% says that the rate of risk associated is average and 20% says the risk is low.

And if I talk about ICICI PRUDENTIAL 7 out of 12 says that the rate of risk associated is

high, 3 say that the rate of risk is average & 2 says it is low.

High Average Low

0

5

10

15

20

25

30

35

40

45

Percentage

Percentage


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Q. How do you rate the schemes with Unit Linked Plans?


Good 31 62

Average 16 32

Poor 3 6

Interpretation:

According to my project survey out of 50 respondents 62% says that schemes in ULIPS are

good, 32% says the schemes offered are average and 6% says that they are poor.

And if I talk about ICICI PRUDENTIAL 6 out of 12 says that the schemes offered by ICICI

pru are good, 5 says that the schemes are average and 1 say that schemes are poor.

Good Average Poor

0

10

20

30

40

50

60

70

Percentage

Percentage


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Q. How do you rate the flexibility with Unit Linked Plans?


Highly Flexible 36 72

Averagely Flexible 13 26

Not at all flexible 1 2

Interpretation:

According to my project survey out of 50 respondents 72% says that the rate of flexibility with

ULIPS is high, 26% says that the flexibility is average and 2 % says that it is not at all flexible.

And if I talk about ICICI PRUDENTIAL 11 out of 12 says that the Ulips are highly flexible

and 1 says that it is moderately flexible.

High Average Not at all

0

10

20

30

40

50

60

70

80

Percentage

Percentage


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Q. How do you rate the transparency with Unit Linked Plans?


Highly transparent 32 64

Averagely transparent 16 32

Not at all transparent 2 4

Interpretation:

According to my project survey out of 50 respondents 64% says that the rate of transparency in

ULIPS is high, 32% says the rate of transparency is average and 4% says that it is not at all

transparent.

And if I talk about the customers ICICI PRUDENTIAL 9 out of 12 says that there is high rate

of transparency in ULIPs, 2 feels that the rate of transparency is average and I say that there is

not at all transparency.

High Average Not at all

transparent

0

10

20

30

40

50

60

70

Percentage

Percentage


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Q. How do you rate different charges like mortality charges, premium allocation, fund

management fees, administration charges and surrender charges?


High 28 56

Average 18 36

Low 4 8

Interpretation:

According to my project survey out of 50 respondents 56% says that the rate of charges paid by

them is high, 36% says that the charges are average and 8% says that the charges are low.

And if I talk about the customers of ICICI PRU 4 out of 12 says that the charges of ULIPS are

high, 6 say they are average and 2 says that the charges are low.

High Average Low

0

10

20

30

40

50

60

Percentage

Percentage


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Q. Are you satisfied with Unit Linked Plans?


Yes 48 96

No 2 4

Interpretation:

According to my project survey out of 50 respondents 96% are satisfied with ULIPS and 4% are

not satisfied.

And if I talk about the customers of ICICI PRU all the customers were satisfied with the unit

linked plans.

yes no

0

20

40

60

80

100

120

Percentage

Percentage


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OBSERVATIONS RECOMMENDATIONS CONCLUSION


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Observations

It was found 34% of the respondents had invested in LIC and 24% has invested in ICICIprudential which shows that LIC is the first name that comes to the mind of people whenthey think of insurance.

It was found that 50% of the respondents consider high returns before investing inULIPS, 30% considers safety of principle, and 16% considers low risk and 4% maturity

period.

It was found in the survey I conducted that 64% has been investing since last 1-5 years,30% from last 5-10 years and 6% from last 10-15 years.

It was found that 44% of the respondents had invested in savings a/c and PO schemes inthe past, 18% in Mutual funds, 4% in ULIPS and 34% had invested in real estates, gold

etc.

It was found out of 50 respondents 20% invests in ULIPS for risk cover againstuncertainties, 70% invested for High returns and 10% invested for tax savings.

It was found that 16% has taken Child Plan, 56% has taken Pension Plan and 28% hastaken Savings Plan.

It was found that 50% of them felt well about their investment decision, 38% wereaveragely satisfied and 6% felt cheated after investing in ULIPS.

It was found that 16% of respondents felt that the rate of premium paid by them is high,52% felt that the rate of premium paid by them is medium and 32% said that the rate of

premium paid for ULIPS is low.

It was found that 64% said that the rate of return is good, 28% said that the rate of return

is average and 8% said the rate of return is poor.

It was found that 38% said that the rate of risk associated is high, 42% said that the rateof risk associated is average and 20% said the risk is low.


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It was found that 62% said that schemes in ULIPS are good, 32% said the schemesoffered are average and 6% said that they are poor.

It was found that 72% said that the rate of flexibility with ULIPS is high, 26% said thatthe flexibility is average and 2 % said that it is not at all flexible.

It was observed that 64% felt that the rate of transparency in ULIPS is high, 32% said therate of transparency is average and 4% said that it is not at all transparent.

It was found that 56% said that the rate of charges paid by them is high, 36% said that thecharges are average and 8% said that the charges are low.

It was found that almost every respondent was satisfied by their ULIP policy.

Recommendations

For ICICI to have a larger market share it has to widen the customer base, so it shouldcome up with intensive market strategy and aggressive publicity stunts such as:

Deployment of addition sales force for proper marketing. Continuous bombardment of Advertisement by ICICI Prudential as a Life Insurance Company for a common man as well as for well educated and good salaried people. Hoardings in and around the important areas(public concentrated areas) The company should concentrate on the people aged between 18-25 for individual and

also the age category 35-55 for family.

Since individuals are interested in insuring their family members the company shouldconcentrate on insuring the individuals family members.

ICICI Prudential should concentrate on geographical areas for its expansion and topenetrate through rural areas it should tie-up with rural banks such as M.G.Bank etc.

Top of mind insurance company is LIC, because of its trust what people keep in it andits awareness. So ICICI Prudential should emphasis heavy advertisement.

31% respondents would like to invest money in insurance for financial future need. SoICICI to provide different financial future satisfaction plans to the people.


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Conclusion

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, which is one of

India's foremost financial services companies, and prudential plc, which is a leading international

financial services group. Today, this company has over 2100 branches, which include 1,116

micro-offices, over 290,000 advisors and 18 banc assurance partners.

ICICI Prudential Life Insurance Company is the first life insurer in India that received a National

Insurer Financial Strength rating of AAA (Ind) from Fitch ratings. ICICI Prudential has been

voted as India's Most Trusted Private Life Insurer for three consecutive years. ICICI Prudential

Life Insurance Company has various insurance plans that have been designed for different

individuals, as every individual has different insurance needs. From the study I did I came to anconclusion that ULIPs have an edge as they are dynamic plans and are flexible by nature and

hence allow for changes and high degree of customization in the plan as opposed to most of the

financial plans which once purchased cannot be modified. It is because of embedded

characteristics of transparency, flexibility, liquidity & goal based savings that ULIPs have

emerged as preferred investment option. The survey results highlight some important facts,

though ICICI Prudential may be comparatively competitive with other companies ULIP. The

choice of people investing in insurance is more and awareness of ICICI Prudential ULIP is more,

People get information from company advisors and satisfaction level of ULIP is more and it will

shows that ULIP will grow more in future days.


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QUESTIONNAIRE BIBLIOGRAPHY


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SURVEY OF UNIT LINKED INSURANCE PLANS

Dear Sir/Madam,

I request you to spare some time to fill the following information. I assure you that all this

information will be kept confidential and it is required for academic purpose only.

Name Contact No Occupation

Q. Do you invest in ULIPs?

a. Yesb. NoIf not, then what other option(s) do you prefer to invest?

a. Fixed depositb. Post office Schemesc. Recurring deposit

Q. In which sectors do you prefer to buy ULIP?

a. Public

b.Private

Q. Which factor do you consider before investing in ULIPS?

a. Safety of principleb. Low riskc. High returnsd. Maturity period

Q. Do you have any other investment/ insurance policy?

a. Yesb. No

Q. How long have you been investing in ULIPs?


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a. For the last 1-5 yearsb. For the last 5-10 yearsc. For the last 10-15 years

Q. In the past you have invested mostly in (choose one):

a. Savings a/c and PO Schemesb. Mutual fundsc. ULIPSd. other instruments like real estate, gold

Q. What is your purpose to invest in ULIPS?

a. Risk coverb. High returnsc. Tax savings

Q. From which company you have taken Unit Linked Plan?

a. LIC

b. ICICI PRU

c.HDFC STAN

d. MetLife

e. TATA AIG

f. BAJAJ ALLIANCE

g. IF OTHERS (please specify)

Q. Which type of ULIP product you have?

a. Child Planb. Pension Planc.

Savings Plan

Q. When you have taken Unit Linked Plan?

a. 1 Year before

b. 2 Years before

c. More than three years before


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Q. What do you feel after investing in Unit Linked Plans?

a. Good

b. Averagely Satisfied with the investment decisionc. Cheated

Q. Reasons for investing in Unit Linked Plans?

a. Returns

b. Schemes are good

c. Recommended by Family & Friends

d. Needs to save tax

e. Offers Multiple benefits like investment+insurance +Tax Saving

Q. How do you rate the Premium Amount to be paid in Unit Linked Plans?

a. High

b. Medium

c. Low

Q. How do you rate the returns in Unit Linked Plans?

a. Goodb. Averagec. Poor

Q. How do you rate the risk associated with Unit Linked Plans?

a. Goodb. Averagec. Poor

Q. How do you rate the schemes with Unit Linked Plans?

a. Good

b. Averagec. Poor

Q. How do you rate the flexibility with Unit Linked Plans?

a. Highly Flexibleb. Averagely Flexiblec. Not at all flexible


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Q. How do you rate the transparency with Unit Linked Plans?

a. Highly Transparentb. Averagely Transparentc. Not at All transparent

Q. How do you rate the Mortality Charges in Unit Linked Plans?a. Highb. Averagec. Low

Q. How do you rate the Premium Allocation Charges in Unit Linked Plans?

a. Highb. Averagec. Low

Q. How do you rate the Fund Management Fees in Unit Linked Plans?


Q. How do you rate the Administration Charges in Unit Linked Plans?


Q. How do you rate the Surrender Charges in Unit Linked Plans?


Q. Are you satisfied with Unit Linked Plans?

a. Yesb. No


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Bibliography

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1303350

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