INTRODUCTION

Insurance is the equitable transfer of the risk of a loss, from one entity to another in exchange for payment. It is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. An insurer, or insurance carrier, is a company selling the insurance; the insured, or policyholder, is the person or entity buying the insurance policy. The amount to be charged for a certain amount of insurance coverage is called the premium. Risk management, the practice of appraising and controlling risk, has evolved as a discrete field of study and practice. The transaction involves the insured assuming a guaranteed and known relatively small loss in the form of payment to the insurer in exchange for the insurer's promise to compensate (indemnify) the insured in the case of a financial (personal) loss. The insured receives a contract, called the insurance policy, which details the conditions and circumstances under which the insured will be financially compensated.

UNIT LINKED INSURANCE PLANS

Unit linked insurance plan (ULIP) is a life insurance solution that provides the client with the benefits of protection and flexibility in investment. It is a solution which provides for life insurance where the policy value at any time varies according to the value of the underlying assets at the time. The investment is denoted as unit and is represented by the value that it has attained called as Net Asset Value (NAV). ULIPs are a category of goal-based financial solutions that combine the safety of insurance protection with wealth creation opportunities. In ULIPs, a part of the investment goes towards providing a life cover. The residual portion of the ULIP is invested in a fund which in turn invests in stocks or bonds; the value of investments alters with the performance of the underlying fund opted by the customer. Simply put, ULIPs are structured in such that the protection element and the savings element are distinguishable, and hence managed according to your specific needs. In this way, the ULIP plan offers unprecedented flexibility and transparency.

ULIPs came into play in 1960s and became very popular in Western Europe and America. The reason that is attributed to the wide spread popularity of ULIP is because of the transparency and the flexibility which it offers to the clients. As time progressed the plans were also successfully mapped along with life insurance needs to retirement planning .In todays times ULIP provides solution for all the needs of a client like insurance planning, financial needs, financial planning for childrens future and retirement planning. STRUCTURE OF ULIPs ULIPs offered by different insurers have varying charge structures. Broadly the different types of fees and charges are given below. However the insurers have the right to revise or cancel the fees and charges over a period of time. Premium Allocation charges This is a percentage of the premium appropriated towards charges before allocating the units under the policy. This charge normally includes initial and renewal expenses apart from commission expenses. Mortality Charges These are charges to provide for the cost of insurance coverage under the plan. Mortality charges depend on number of factors such as age, amount of coverage, state of health etc. Fund Management Charges These are fees levied for management of the fund(s) and are deducted before arriving at the Net Asset Value (NAV). Policy/ Administration Charges These are the fees for administration of the plan and levied by cancellation of units. This could be flat throughout the policy term or vary at a predetermined rate.

Surrender Charges A surrender charge may be deducted for premature partial or full encashment of units wherever applicable, as mentioned in the policy conditions. Fund Switching Charge Generally a limited number of fund switches may be allowed each year without charge, with subsequent switches, subject to a charge. But now a days many insurers offer fund switching free of cost. Service Tax Deductions Before allotment of the units the applicable service tax is deducted from the risk portion of the premium. TYPES OF FUNDS UNDER ULIPS Most insurers offer a wide range of funds to suit ones investment objectives, risk profile and time horizons. Different funds have different risk profiles. The potential for returns also varies from fund to fund. The following are some of the common types of funds available along with an indication of their risk characteristics. General description category

Nature of investments

Risk

Primarily invested in Equity Funds company stocks with the general aim of capital appreciation. Invested in corporate income, fixed interest and bond funds bonds,government securitiess and other fixed income instruments. Cash funds Sometimes known as low low Medium Medium to High

money market fundsinvested in cash,bank deposits and money market instruments Combining equity Balanced funds investement with fixed inerest instruments Medium

NEED OF THE STUDY ULIPs or Unit Linked Insurance Policies are gaining popularity in the recent times. Importance of ULIP policies has grown in the recent times because of the features and advantages that ULIP policies offer. While under traditional insurance policies, the relationship between premium and assured sum is fixed. But, under ULIPs there is freedom of flexibility in premiums and assured sum. So, it is important to study about the ULIPs in the present day situation. The study is designed to analyze the various aspects regarding Unit Linked Insurance Plans (ULIPs). It may is very useful to the company and investors to know the different issue regarding ULIPs. OBJECTIVES OF THE PROJECT 1. To compare the Unit Linked Insurance Plans (ULIPs) of ING LIFE with that of some other selected companies. 2. To get some good market exposure by dealing with the prospects face to face. 3. To improve our ability to sell a financial product like life insurance. 4. To get a deep knowledge of the financial product like insurance. 5. To identify the product performance during the slowdown of market last year.

SCOPE OF THE STUDY This study aims to make a comparative study of the Unit Linked Insurance Plans (ULIPs) of ING LIFE Insurance Company with that of some major selected players in the Indian insurance market. The comparative analysis is based on the empirical data collected from the Company. RESEARCH METHODOLOGY Sources of data The present study is based on the data collected primary and secondary sources. Primary data Primary data refers to information obtained firsthand by the researcher on the variables of interest for the specific purpose of the study. Relevant primary data would be collected with the help of the interview method from various departments' chiefs and personnel of ING Vysya. Secondary data The data was also collected from books of banking and annual reports of ING Vysya. The following methodology has been followed to achieve the objectives of the project. Techniques of data collection Judgmental sampling is used as sampling technique Sample size The sample size selected is 2 years. Sample unit Total no. of years from which the organization started i.e., 22 years. Size of population The population for the current study is 22 years.

LIMITATIONS OF THE STUDY 1. The scope of the project is limited to conceptual and marketing aspects of Life Insurance Companies and doesnt include Claim Settlement and the underwriting part of the operations which are equally important aspect of learning. 2. It is not always possible to evaluate companies under similar parameters since many companies deal with various businesses thus clubbing all the companies on the same parameters is not always possible. 3. The study is based mainly on secondary data. 4. Here, the calculations will be approximated. 5. The accuracy of the results is subjected to the accuracy of the data furnished by the annual reports.

SCHEME OF CHAPTERIZATION
CHAPTER I It includes the introduction and design of the study of ULIPS (Unit Linked Insurance Plans). CHAPTER II It deals with the profile of Indian insurance industry and the profile of ING Vysya Life Insurance. CHAPTER III It includes the various theoretical aspects related to the ULIPS. CHAPTER IV Analyzing and interpreting the performance of ULIPS of the selected companies.

CHAPTER V It includes the findings from the study, conclusions drawn out the findings and the suggestions to the company, if any. BIBLIOGRAPHY It includes all the books, web sites, magazines and annual reports referred to collect the data for the study.