INTRODUCTION:

HDFC Standard Life Insurance Company Limited is one of India's leading private
insurance companies, which offers a range of individual and group insurance
solutions. It is a joint venture between Housing Development Finance Corporation
Limited (HDFC Limited), India's leading housing finance institution and a Group
Company of the Standard Life Plc, UK. As on February 28, 2009 HDFC Ltd. holds
72.43% and Standard Life (Mauritius Holding) 2006, Ltd. holds 26.00% of equity
in the joint venture, while the rest is held by others.
The company launched national operations in December 2001. Today, we have
over 8000 employees across over 12 states in the country and a national footprint
of distributors trained to provide quality financial advice and insurance solutions to
the large Indian customer base.

As we further expand our presence across the country with a large network of
distributors, we continue to provide innovative product and service offerings to
cater to specific insurance and wealth management needs of customers. Whatever
your plans in life, you can be confident that HDFC Standard life will offer the right
financial solutions to help you achieve them.
Meaning and Definition of Life Insurance

Meaning
Life insurance covers the risk that exists in one’s life. These risks may arise due to
accident, illness or natural causes like fire, flood, earthquake. Life insurance aims
to protect the family of the life insured so that they may not suffer from financial
consequences on the death or disability of the insured person. Life insurance needs
to be a mandatory part of every person’s life. Life insurance is a contract that
pledges payment of an amount to the person assured (or his nominee) on the
happening of the event insured against.
Life insurance is a very popular form of insurance. It ensures the life of an
individual and gives financial protection to the members of the family of the
policyholder.
It is different from other types of insurance in various ways. It not only gives
protection but it is a method of compulsory saving. This insurance provides
protection to the family at the premature death or gives adequate amount at
the old age when the earning capacities are reduced.
The contract is valid for payment of the insured amount during:
 The date of maturity, or
 Specified dates at periodic intervals, or
 Unfortunate death, if it occurs earlier.

 Life insurance covers the risk that exists in one’s life. These risks may arise
due to accident, illness or natural causes like fire, flood, earthquake. Life
insurance aims to protect the family of the life insured so that they may not
suffer from financial consequences on the death or disability of the insured
 person. Life insurance needs to be a mandatory part of every person’s life.
Life insurance is a contract that pledges payment of an amount to the person
assured (or his nominee) on the happening of the event insured against.
 Life insurance is a very popular form of insurance. It ensures the life of
an individual and gives financial protection to the members of the
family of the policyholder.
Definition
Life Insurance may be defined as a type of Insurance Contract whereby the insurer,
in consideration of the premium paid in periodical instalments undertakes to pay an
annuity or a certain sum of money either on the death of the insured or on the
expiry of a certain number of years.
Life insurance or life assurance is a contract between the policy owner and the
insurer, where the insurer agrees to pay a designated beneficiary a sum of money
upon the occurrence of the insured individual's or individuals' death or other event,
such as terminal illness or critical illness. In return, the policy owner agrees to pay
a stipulated amount called a premium at regular intervals or in lump sums.
Features of Life Insurance Contract

(1) Nature of General Contract

Since life insurance contract is a sort of contract it is governed by the Indian

Contract Act. According to Section 10 of Indian Contract Act, 1872 a valid
contract must have the following essentialities:
(a) Offer and acceptance.
(b) Legal considerations.
(c) Competent to make contract.
(d) Free consent.
(e) Legal object.

(2) Insurable Interest

The insured must have an insurable interest in the life to be insured for a valid
contract.
Insurable Interest in life insurance may be divided into two categories:
(a) Insurable interest in own life, and
(b) Insurable Interest in other’s life.
The latter can be sub-divided into two classes:
 Where proof is not required, and
  Where proof is required. Again this insurable interest can be divided into
two classes
 insurable interest arising due to business relationship, and
 Insurable interest in family relation.

(3) Utmost Good Faith

The life insurance requires that the principle of utmost good faith should be
preserved by both the parties. The principle of utmost good faith says that both the
parties, proposer (insured) and insurer must be of the same mind at the time of
contract because only then the risk may be correctly ascertained. They must make
full and true disclosure of the facts material to risk.

(4) Warranties

Warranties are integral part of contract. i.e. they form the bases of the contract
between the proposer and the insurer and if any statement whether material or non
– material, is untrue the contract shall be null and void and the premium paid by
him may be forfeited by the insurer.
(5) Proximate Cause

The efficient or effective cause that causes loss is called ‘PROXIMATE CAUSE’.
It is the real and actual cause of loss. If the cause of loss is insured, the insurer will
pay.
In ‘LIFE INSURANCE’ the doctrine of CAUSA PROXIMA is not applied
because the insurer is bound to pay the amount of insurance whatever may be the
reason of death. It may be natural or unnatural. Hence this principle is not of much
practical importance with life insurance.

(6) Assignment and Nomination

Life insurance policy can be assigned freely for a legal consideration or love and
affection. Notice of assignment must be given to the insurer who will acknowledge
the assignment.
The holder of life insurance policy on his own may either at the time of affecting
the policy or at any subsequent time before the policy matures, nominate person or
persons to whom the money secured by the policy shall be paid in event of his
death.
Nomination can be cancelled before the maturity, but a notice should be served to
this effect.
(7) Return of Premium

In the ordinary course premium once paid cannot be refunded. But in the following
cases the premium paid are returnable.
On account of misrepresentation or breach of warranty, the insured, in the absence
of any express condition to the contrary, can claim the return of premium paid.
But where the insured is guilty of fraud in obtaining a policy, he will fail in his
claim to the sum assured.
HISTORY OF HDFC STANDARD LIFE INSURANCE
COMPANY LTD.

HDFC Standard Life Insurance Company Ltd. is a, one of India's leading multi-
business corporations and HDFC Life International, the international arm of HDFC
Life, a Fortune 100 company. The company has positioned itself on the quality
platform. In line with its vision to be the most admired life insurance company in
India, it has developed a strong corporate governance model based on the core
values of excellence, honesty, knowledge, caring, integrity and teamwork.

Incorporated in 2000, HDFC Standard Life started commercial operation in April

2001. In line with its values of financial responsibility, HDFC Standard Life has
adopted prudent financial practices to ensure safety of policyholder's funds. The
Company's paid up capital as on 30th April, 2009
Is Rs 1782 core HDFC Standard Life has multi-channel distribution spread across
the country. Agency distribution is the primary channel complemented by
partnership distribution, bancassurance, alliance marketing and dedicated
distribution for emerging markets. The Company places a lot of emphasis on its
selection process for agent advisors, which comprises four stages - screening,
psychometric test, career seminar and final interview. The agent advisors are
trained in-house to ensure optimal control on quality of training. The company
currently has around 75,832

agent advisors at 715 offices across 389 cities. The company also has 36 referral
tie-ups with banks, 24 partnership distribution and alliance marketing relationships
each. HDFC Standard Life has put in place a unique hub and spoke model of
distribution to deepen our rural penetration. This is the first time such a model has
been put in place for rural marketing of insurance. The company has 139 offices
dedicated to rural areas.

HDFC Standard Life offers a suite of flexible products. It now has 39 products
covering both life and health insurance and 8 riders that can be customized to over
800 combinations enabling customers to choose the policy that best fits their need.
Besides this, the company offers 6 products and 7 riders in group insurance
business.

HDFC Life Insurance Company is one of the largest insurance companies in the
United States and the world. Ranked as a Fortune 100 company, HDFC Life has
provided its policyholders with financial security and investment opportunities
since 1841. As a mutual company, HDFC Life is owned solely by its
policyholders, to whom it pays annual dividends and provides long-term coverage
on a wide range of insurance products. The company prospered during its first 100
years of operations, as the growth of the nation's population and economy created
an expanding market for life insurance. Since World War II HDFC Life has
maintained its competitive edge by diversification.
VISION AND MISSION

1) Financial Expertise
As a joint venture of leading financial services groups, HDFC Standard Life has
the financial expertise required to manage your long-term investments safely and
efficiently.

2) Range of Solutions
We have a range of individual and group solutions, which can be easily customized
to specific needs. Our group solutions have been designed to offer you complete
flexibility combined with a low charging structure.

3) Track Record So Far

Our gross premium income, for the year ending March 31, 2009 stood at Rs.
5,564.69 cores.
As on March 31, 2009, the company has more than 27 lakh polices in force.

3) Strong promoter
HDFC Standard Life is a strong, financially secure business supported by two
strong and secure promoters – HDFC Ltd and Standard Life. HDFC Ltd’s excellent
brand strength emerges from its unrelenting focus on corporate governance, high
Standards of ethics and clarity of vision.
Standard Life is a strong, financially secure business and a market leader in the UK
Life & Pensions sector.
4) Investment Philosophy
We follow a conservative investment management philosophy to ensure that
our customer’s money is looked after well. The investment policies and actions are
regularly monitored by a formal Investment Committee comprising non-executive
directors and the Principal Officer & Executive Director.
As a life insurance company, we understand that customers have invested their
savings with us for the long term, with specific objectives in mind. Thus, our
investment focus is based on the primary objective of protecting and generating
good, consistent, and stable investment returns to match the investor’s long-term
objective and return expectations, irrespective of the market condition.
TYPES OF LIFE INSURANCE PLAN

WHY DO WE NEED PROTECTION PLANS?

Protection Plans help you shield your family from uncertainties in life due to
financial losses in terms of loss of income that may dawn upon them incase of your
untimely demise or critical illness. Securing the future of one’s family is one of the
most important goals of life. Protection Plans go a long way in ensuring your
family’s financial independence in the event of your unfortunate demise or critical
illness. They are all the more important if you are the chief wage earner in your
family. No matter how much you have saved or invested over the years, sudden
eventualities, such as death or critical illness, always tend to affect your family
financially apart from the huge emotional loss.
For instance, consider the example of Amit who is a healthy 25 year old guy with a
income of Rs. 1,00,000/- per annum. Let's assume his income increases at a rate of
10% per annum, while the inflation rate is around 4%; this is how his income chart
will look like, until he retires at the age of 60 years. At 50 years of age, Amit’s real
income would have been around Rs. 10, 00,000/- per annum. However, in case of
Amit’s unfortunate demise at an early age of 42 years, the loss of income to his
family would be nearly Rs. 5,00,000/- per annum.
However, with a Protection Plan, a mere sum of Rs. 2,280/- annually (exclusive of
service tax & educational cess) can help Amit provide a financial cushion of up to
Rs. 10, 00,000/- for his family over a period of 25 years.

1. HDFC Term Assurance Plan

This plan is designed to help secure your family’s financial needs in case of
uncertainties. The plan does this by providing a lump sum to the family of the life
assured in case of death or critical illness (if option is chosen) of the life assured
during the term of the contract. One can choose the lump sum that would replace
the income lost to one’s family in the unfortunate event of one’s death. This helps
your family to maintain their financial independence, even when you are not
around.

Features

2. HDFC Loan Cover Term Assurance Plan

This plan aims to protect your family from your loan liabilities in case of your
unfortunate demise within the policy term. It provides the beneficiary with a lump
sum amount, which is a decreasing percentage of the initial Sum Assured. This
means that as the outstanding loan decreases as per the loan schedule, the cover
under the policy also decreases as per the policy schedule.

Features

3. HDFC Home Loan Protection Plan

This plan aims to protect your family from your loan liabilities in case of your
unfortunate demise within the policy term. It ensures that your family does not lose
the dream house that you have purchased for them, in case you are not around to
repay the outstanding monthly installments on your housing loan. This provides
you with the comfort of knowing that in your absence, a sum of money will be
available towards repaying your housing loan, making sure that your family will be
secure in your family home.

Features
1. HDFC Children’s Plan
As a parent, your priority is your child’s future and being able to meet your child’s
dreams and aspirations. With our HDFC Children’s Plan, you can start building
your savings today and ensure a bright future for your child. This ‘With Profits’
plan is designed to secure your child’s future by giving your child (Beneficiary) a
guaranteed lump sum on maturity or in case of your unfortunate demise, early into
the policy term.

Features

2. HDFC YoungStar Super

As a parent, your priority is to meet your children’s future and being able to meet
your child’s dreams and aspirations. With our HDFC YoungStar Super, you can
start building your savings today and ensure a bright future for your child. This
Plan provides valuable protection to your child in case you are not around and
gives you an outstanding investment opportunity to HDFC imise your savings by
providing you a choice of thoroughly researched and selected investments. This
plan also gives Bumper Addition to the fund value at Maturity.

Features

3. HDFC YoungStar Super Suvidha

As a parent, your priority is your child’s future and being able to meet your child’s
dreams and aspirations. With our HDFC YoungStar Super Suvidha, you can start
building your savings today and ensure a bright future for your child. It is a
convenient plan, which saves you from the need of going for Medicals. This Unit
Linked Plan provides valuable protection to your child in case you are not around
and gives you with an outstanding investment opportunity to HDFC imise your
savings by providing you a choice of thoroughly researched and selected
investments. This plan also gives Bumper Addition to the fund value at Maturity.

Features

4. HDFC YoungStar Supreme Suvidha

There is no bigger joy than being able to fulfill your child's dream. With HDFC
YoungStar Supreme Suvidha you can fulfill your child’s immediate and future
needs. So tomorrow when you child needs your support you don’t have to depend
on anyone else. This Plan provides valuable protection to your child in case you
are not around and gives you an outstanding investment opportunity to HDFC
imise your savings by providing you a choice of thoroughly researched and
selected investments. This plan also gives Bumper Addition to the fund value at
Maturity.

Features

5. HDFC SL YoungStar Champion Suvidha

There is no bigger joy than being able to fulfill your child's dream; that too on your
own. With HDFC SL YoungStar Champion Suvidha you can fulfill your child’s
immediate and future needs. So tomorrow when you child needs your support you
don’t have to depend on anyone else. This is a convenient plan, which saves you
from the need of going for Medicals. This Unit Linked Plan gives you with an
outstanding investment opportunity to HDFC imise your savings by providing you
a choice of thoroughly researched and selected investments. This plan also gives
Bumper Addition to the fund value at Maturity.

Features

1. HDFC Personal Pension Plan

Today, you are busy climbing the ladder of success and realizing your dreams.
Today, time is with you. Just take a moment and think. Will you be able to
continue at the same pace? Will your income be the same forever? Will you be
able to live life on your own terms even after you retire? The HDFC Personal
Pension Plan is a ‘With Profits’ insurance policy that is designed to provide a
post-retirement income for life with the freedom to choose your retirement date.

Features

2. HDFC Pension Super

Today, you are busy climbing the ladder of success and realizing your dreams.
Today, time is with you. Just take a moment and think. Will your income be the
same forever? Will you be able to live life on your own terms even after you
retire? The HDFC Pension Super is Unit Linked plan, designed to provide a post-
retirement income for life with the freedom to choose your retirement date. This
plan gives you with an outstanding investment opportunity to HDFC imise your
savings by providing you a choice of thoroughly researched and selected
investments. This plan also gives Bumper Addition to the fund value at vesting.
Features

3. HDFC Pension Supreme

Today, you are busy climbing the ladder of success and realizing your dreams.
Today, time is with you. Just take a moment and think. Will your income be the
same forever? Will you be able to live life on your own terms even after you
retire? The HDFC Pension Supreme is Unit Linked plan, designed to provide a
post-retirement income for life with the freedom to choose your retirement date.
This plan gives you with an outstanding investment opportunity to HDFC imise
your savings by providing you a choice of thoroughly researched and selected
investments. This plan also gives Bumper Addition to the fund value at vesting.
Features

4. HDFC SL Pension Champion

Today, you are busy climbing the ladder of success and realizing your dreams.
Today, time is with you. Just take a moment and think. Will your income be the
same forever? Will you be able to live life on your own terms even after you
retire? The HDFC SL Pension Champion is Unit Linked plan, designed to provide
a post-retirement income for life with the freedom to choose your retirement date.
This plan gives you with an outstanding investment opportunity to HDFC imise
your savings by providing you a choice of thoroughly researched and selected
investments. This plan also gives Bumper Addition to the fund value at vesting.
Features

5. HDFC SL Unit Linked Pension HDFC imiser II

Ideally, just how spending comes to you, so must saving and investing. You are
able to finance your expenses and take care of your expenses in present times.
However, to ensure that you are able to maintain the same Standard of living post
retirement, you need to make the right kind of investment today. HDFC SL Unit
Linked Pension HDFC imiser II is a unique Single Premium unit linked plan,
designed to provide a post-retirement income for life with the freedom to HDFC
imise your investment returns. This plan also gives Bumper Addition* of 5% of
initial single premium at vesting.

Features
 6. HDFC Endowment Super
You have always given your family the very best. And there is no reason why they
should not get the best in future too. With rising costs, ensuring the best got your
family will need some financial planning. With our HDFC Endowment Super, you
can start building your savings today and ensure that your family remains
financially independent, even when you are not around. This Unit Linked Plan also
gives you with an outstanding investment opportunity to HDFC imise your savings
by providing you a choice of thoroughly researched and selected investments.

Features

7. HDFC Endowment Super

You have always given your family the very best. And there is no reason why they
should not get the best in future too. With rising costs, ensuring the best got your
family will need some financial planning. With our HDFC Endowment Super, you
can start building your savings today and ensure that your family remains
financially independent, even when you are not around. This Unit Linked Plan also
gives you with an outstanding investment opportunity to HDFC imise your savings
by providing you a choice of thoroughly researched and selected investments.

Features
 8. HDFC SIMPILIFE
You have always believed in living life on your own terms. So why let the
changing realities of everyday life overwhelm you and make your aspirations take
a back seat? With our HDFC SimpliLife Plan, you can plan now to HDFC imise
your savings and secure your and your family’s future. It is a convenient plan,
which saves you from the need of going for Medicals. This Unit Linked Plan gives
you with an outstanding investment opportunity to HDFC imise your savings by
providing you a choice of thoroughly researched and selected investments.

Features
 9. HDFC Wealth Builder
HDFC Wealth Builder is an exclusive plan crafted for elite achievers like you. An
investment cum insurance plan that will actively help in building your wealth and
give you twin advantage of exclusive funds (actively managed for you) along
with choice of limited premium payment term. This plan provides the financial
protection to your loved ones and builds up your wealth effortlessly. This plan also
gives Bumper Addition to the fund value at Maturity.

Features
 10. HDFC Money Back Plan
You have always believed in living life on your own terms. So why let the
changing realities of everyday life overwhelm you and make your aspirations take
a back seat? With our HDFC Money Back Plan, you can plan now to ensure that
you have the necessary funds to have the necessary funds to secure your long-term
as well as short-term financial goals. This ‘With Profits’ plan gives you a
proportion of the basis Sum Assured as Cash lump sums at regular 5-year intervals
within the policy term.

Features
 1. HDFC Critical Care Plan
Critical Illness can strike anyone. Today with advancement in medical science it is
possible to survive a critical illness. Expenses on survival with a critical illness can
be very high. HDFC Critical care plan provides for a lump sum payment on
survival post diagnosis of a critical illness, so that in the event a critical illness
strikes, you don’t have to dig into those precious savings of yours.

Features

2. HDFC SurgiCare Plan

In the fast paced lives that we lead, medical contingencies may arrive at our
doorstep uninvited.Surgery costs form a substantial portion of health care
expenditure and needs to be provided for. Health issues can get compounded if left
unattended and may require a surgery. Plus, the ever increasing costs of surgical
procedures are sure to burn a hole in our pockets.
HDFC SurgiCare Plan provides you with timely support in case you have to
undergo a major surgery and hospitalisation, as the case maybe, ensuring your
financial independence at all times.

Features