See

discussions, stats, and author profiles for this publication at: https://www.researchgate.net/publication/277904095

Comparative Analysis of Unit Linked Insurance

Products of Different Companies

Article · December 2013

READS

372

2 authors, including:

Ritesh Dwivedi
Amity University
26 PUBLICATIONS 1 CITATION

SEE PROFILE

Available from: Ritesh Dwivedi

Retrieved on: 17 August 2016
 Comparative Analysis of Unit Linked Insurance Products of Different Companies

Authors
Dr. Ritesh Dwivedi,

Assistant Professor, Department of Rural Management, Amity Business School, Amity

University UP, NOIDA Email: ritesh_hariom@rediffmail.com, Mobile: 0-9415576820

Author has nine years of working experience with various CSOs / Funding Agencies /
Government Projects / Universities in different positions. He has administered and monitored the
functioning of Rural Development projects at state, district and community level. He has written
different articles for Development Magazines and his papers have been published different
reputed Social Research & Management Journals.

Mr. Anand Batra

Amity Business School, Amity University UP, Email: anandbatra2@gmail.com,
Mo: 0-9729669017
 ABSTRACT

Unit Linked Insurance Plan (ULIP) commonly known as a composition of Investment and Life
Insurance provides an opportunity to earn a non-taxable income and transfer the financial risk at
the same time. Basically, ULIP offered by various insurance companies gives investors benefit
of both insurance and investment under a single integrated plan under which initially units are
allotted to the customers, and on daily basis NAV (Net Asset Value) is calculated. This insurance
product always is vulnerable with ups and downs in the capital market and if there is volatility in
the equity market or decline in interest rates; the NAV of the fund is impacted and may show a
rise or fall. Generally, ULIPs are not guaranteed unless it is any guaranteed plan from life
insurer. So, there is always a risk which is borne by policyholder. Moreover there is a long list of
charges taken from life insurers in order to maintain funds in comparision to insurance policies.
In frequently changing business environment, life insurers also have stiff competition. A high
value, satisfied, profitable customer is the main objective of Life Insurers and different
companies have their unique way to approach their objectives. This study attempts to gauge the
perception of people upon ULIPs offered by different companies. The study aims to identify the
factors that affect customer’s decision to buy an insurance product. As insurance is a way to
manage risk whereas, ULIP are not risk free investments, so a dilemma arises whether to avoid
risk or to accept risk because companies offer different risk options to manage funds. In this
perspective, the study has also collected the perception of people for taking risks in ULIP. The
findings of the study have identified the most trusted ULIP option according to public
perception and also the first preference of customers. The study has compared and analysed
wealth creation plans of four companies i.e. HDFC Life, Bajaj Allianz, Reliance Life, and ICICI
Prudential.

Keywords: ULIP, HDFC Life ULIPs, Customer Satisfaction, Comparative Analysis, Analysis of
ULIPs
INTORDUCTION
A ULIP is a capital market linked product that combines the benefits of both insurance and
investment. This dual benefit along with the flexibilities, make ULIPs an attractive investment.
Flexibility in ULIPs refers to the flexibility in switching of funds, managed through different
types of risk. The premium amount paid in ULIPs is invested in debt, equity and infrastructure
bonds, which translate into substantial returns over a period of time.

ULIPs are best classified on the basis of purpose they serve. First category can be ULIPs for
retirement which accumulates a corpus amount and are used to get annuities after retirement. The
second category comprises ULIPs for wealth creation which multiplies wealth over a period of
time. Likewise third and fourth type of ULIPs can be for children’s education and health benefits
respectively. A comparison of ULIPs of four different companies i.e. HDFC Life, Bajaj Allianz,
ICICI Prudential, Reliance Life is provided in Annexure 1. In this study, every single point been
taken for which people should ensure before purchasing any ULIP from this four company. In
lieu of same comparison, only ‘wealth creation’ ULIPs have been chosen here.

ULIP policy holders are also allotted units and each unit has a net asset value (NAV) that is
declared on a daily basis. The NAV is the value based on which the net rate of returns on ULIPs
are determined. The NAV varies from one ULIP to another based on market conditions and the
fund’s performance. The current study has taken the records of four products of different
companies as compared in Annexure 1. It is evident that ICICI Pinnacle Super is giving
maximum returns as on Oct 8, 2013 both in case of Absolute (%) & Annualized (%). In case of
Bajaj Allianz, they are giving least returns in compare to all other ULIPs. HDFC Life Crest is on
second position in terms of both Absolute (%) & Annualized (%) (Figures 1 & 2, Annexure 2).

Capgemini Survey, 2012, (Exhibit 1, Annexure 3) shows that 69% of customers have a positive
satisfaction about their insurance product. In comparison to other countries, India is far behind to
achieve maximum level of positive satisfaction. Indian insurer’s especially private insurers
should look into this matter very seriously.
LITRATURE REVIEW
ULIPs are largely sold as solely investment products. It has been strong positioning that a larger
share of retail investors money enters the market through ULIPs than through pure investment
products like mutual funds. ULIP distinguishes themselves through the multiple benefits that
they provide to the consumer. These are quite similar in terms of their structure and functioning.
But they are different in terms of investment, expenses ratio, risk and return characteristics
(Kumar, 2013).

According to Saini (2011), ULIP renders two benefits at the same time. Hence, maximum
business of life insurers are coming out by these plans now days. He has further posited that
though the responsibility of insurers is very limited in these types of plans, yet transparency of
functioning of this type of products is desirable. Moreover, these products may be made
economical also so that the people from rural background can also enjoy the benefits of ULIPS.

According to Mitra & Khan (2012) the risk factor of ULIP is directly related to stock market.
The NAVs are calculated on daily basis; NAVs of the units go up and down depending upon the
fund performance and factors affecting capital market. ULIPs are subject to many charges like
fund management charges, mortality charges, premium allocation charges etc. It also stated that
the ULIPs are more risky than traditional policies. Studies have shown that private companies
are showing higher growth in ULIP as compared to traditional policies. In ULIPs, risk is borne
by investor not the insurer but insurer should have a transparent method of calculating charges.
Like mutual funds, switching is also applicable according to risk appetite of policyholder.

If insurance component is excluded from ULIP, then it becomes just like mutual fund. ULIPs are
potentially saving vehicles with a very small component of life insurance. ULIPs can only be
differentiated on the basis of charging structure by the insurer i.e. some have less allocation
charge but more administration charges or some ULIPs have more surrender charges. It has been
found that insurance agents are always advised to sell ULIP to the persons who are aware of the
risks of investing in capital market instruments (Rajgopalan, 2005).

Prasad et al. (2009) have found that in spite of various investment opportunities, ULIPs have
gained more reputation among the investors. Hence their study focused on assessing the
significant relation between demographic features and ULIP’s feature and level of investment in
ULIP.
Dash et al (2007) have tried to find out rate of return given by different insurance policies and
the effect of mortality, and have found that different returns are given by different insurance
policies and the mortality does not affect return.

In ULIP against the component of life insurance, policyholder is charged by the insurer in
different ways like allocation charges, administrative charges, mortality charges, bid-offer
charges, guarantee charges. Some of these charges are deducted in complex ways like percentage
of annual premium, daily basis or monthly basis. It is very difficult for buyer to understand this
complex structure of charges. So, IRDA made compulsory for the insurers to give the illustration
to buyers with 6 % & 10% of return. Subject to findings, mutual funds seem to offer a better
death benefit, survival benefit as well as less allocation charges and surrender penalties in
comparison to ULIPs (Seth, 2012).

In October 2000, Insurance Regulatory & Development Authority (IRDA) issued license paper
to three companies, namely, HDFC Life Standard, Sundaram Royal Alliance Insurance Company
and Reliance General Insurance. At the same time “Principal approval” was given to Max New
York Life, ICICI Prudential Life Insurance Company and IFFCO Tokio General Insurance
Company. Today, a total of twenty-two life insurance companies including one public sector are
successfully operating in India (Srivastava, Tripathi, & Kumar, 2012).

Khurana (2009) has shown that Indians are very clear about pension funds to fulfill their
retirement needs and they find life insurance as the most suitable tool for their retirement
planning followed by bank deposits.
ULIP yield lower returns than a combination of life cover and basket of mutual fund of same
risky profile. A conservative should take a life cover and buy debt oriented funds with surplus.
Seth, 2012, proposes that 70% Indians, who can afford ULIP, are still uninsured. This presents a
tremendous potential market. Moreover, LIC has more than 60 products to offer in market but all
are outdated. This offers tremendous potential for private companies in the form of innovative
product offerings (Seth, 2012). The responsibility of the insurer is very limited in this type of
insurance agreement, but lured by high growth opportunities in the investment, the customers go
for them (Saini, 2011).

Devasenathipathi, Saleendran and Shanmugashunaram (2007) found that the purchasing decision
of the consumer depends on quality, accessibility and promptness of services, which may lead a
company aquire the top rank with a huge market share.

Samajpati, (2011) analyzed different ULIP provider performance on various charges such as
policy administration charge, premium allocation charge, fund management charge, top up
allocation charges, switching charge, surrender charge in overall terms and found that the
charges of the ICICI are lowest as compared to ING Vysya and Bajaj Allianz. The analysis of the
returns shows that all the three ULIPs schemes and market has given positive returns during the
period. Among all the three companies scheme ING Vysya has been the best performer as its
return is highest during the period. However, Bajaj Allianz return is less risky as compared to
other and is best in terms of minimization of risk.

METHODOLOGY
This study has been conducted to analyze HDFC Life ULIP products and compare them with
other competitors i.e. Bajaj Allianz, Reliance Life, and ICICI Prudential. In this study responses
are taken from the people who know about ULIPs offered by different companies. This study has
recorded the responses of 120 respondents. Total 160 questionnaires were sent to likely
respondents and 18 questions related with different aspects of ULIP were asked. In questionnaire
four questions were based on Likert scale to record the classical information and rest of the
questions was objective in nature to cover the other aspects of the study. Data was also collected
from various secondary sources like newspapers, articles, research papers, websites etc. this
study.

Objectives

Primary objective of study is to do comparative analysis of ULIP products of different market

players. Apart from this, some of the objectives are as following:

 To explore a consistent performer among all selected companies.

  To assess the satisfaction level of customers towards ULIP.

ANALYSIS AND INTERPRETATION

Respondents’ Profile

Sample had 71% of male and 29% of females. This signifies that most of the times male
members in family take purchasing decision to buy an Insurance product. In this study maximum
respondents are from age group of 31-35. This signifies that maximum people in age of 31-35
think for investment rather than other age groups. Maximum respondents are doing private jobs
i.e. 41 per cent. This signifies that people doing private job are more concerned about ULIP for
Tax saving.

Factors behind Study

During the survey, respondents were asked to vote for the various factors for considering an
insurance product. All the factors were rated from one to five where 1 stands for highly
influencing factor and 5 for least influencing factor. After analysis it appeared that Tax Saving
was the most important factor towards selection of an insurance product with 1.8 rating points,
followed by Returns and Savings with 1.81 & 2.03 rating points respectively (Exhibit 2,
Annexure 3). Surprisingly, children’s education factor is least preferred; it means people don’t
look insurance sector for investing for their children’s education.

3.00
2.59
2.50
2.15
2.05 2.03 2.04
2.00 1.80 1.81

1.50

1.00

0.50

0.00
income tax saving returns retirement savings children's investment
protection education
 Figure 1: Factors that create need for an insurance product

Many taxpaying individuals try to exhaust the investment limit of up to Rs One lakh under
Section 80C to avoid excessive tax deductions from their salary. After accounting for EPF, PPF
and other tax-saving investments, tax payers usually have some scope for further tax savings.

Risk Factor

ULIPs are associated with capital market instruments. Instead of risk of life, there is risk of
investment also. So, the insurers give option to investors to choose a risk. Majorly there are three
types of risk. High risk fund is invested in equity shares with a high chance of getting returns.
Medium risk fund is invested in both equity shares and debt instruments and its chances of
getting return are moderate. Low risk fund is majorly invested in debt instruments with fixed
returns and its returns are low compared to others. Guaranteed NAV fund are having a minimum
amount of NAV guaranteed in advance by insurers. Analysis of the respondents data has shown
that maximum respondents have selected the option of ‘High risk with chance of high returns’
followed by ‘medium risk returns. This shows the sole motive of customers to get high returns,
for that they are ready to take high risks. Even people are not considering ‘Guaranteed minimum
NAV’ because of High Guarantee Charge by Life Insurers (Figure 2).

32 High Risk with chance of high

38 Returns
Medium Risk with chance of
moderate returns
Low Risk with chance of low
returns
17 Guaranteed minimum NAV

33

Figure 2: Risk Associated

Rajgopalan (2005) has advocated for better knowledge sharing with costumer on risks involved
with ULIP before sale of product by sales agent; it will increase customers’ credibility in
company definitely.

Preferences of Customers before Purchasing

Customers tend to analyze every product or service on different parameters before purchasing it.
Insurance is important enough to be analyzed in the same manner as it remains with customer for
a long period of time or sometimes needed after him/her. Respondents were offered to rate some
factors they will consider before purchasing an insurance product on a scale of one (highest rank)
to five (lowest rank). It was found that ‘Past records of returns’ were the major factor customer
consider before purchasing an insurance product followed by ‘goodwill of company’ &
‘accessible to internet’. ‘Product range of company’ is least preferred by the respondents. So, the
insurers should focus on other factors rather than increasing their product line of company. Now
it is very clear that good performance towards returns on made investments always help
companies to increase their market share (Figure 3). Mitra & Khan (2012) have also stressed on
returns as a major criteria for ULIP investments.

3.00
2.53
2.50 2.26 2.26

2.00 1.89

1.50

1.00

0.50

0.00
Goodwill of comapny Product range of Past records of returns Accessible to internet
company

Figure 3: Factors that a customer analyzes before purchasing an insurance product

Website Information

As discussed before that ‘accessible through internet’ was also an option that respondents
analyze before purchasing an insurance product. On a question related to whether the company’s
website having full information about their products answers, the respondents rated the various
companies. 30 out 46 respondents felt that company’s (HDFC Life) website had full information
about their product, 19 out of 24 people think that company’s (Bajaj Allianz) website has full
information about their product. Maximum people who have chosen Bajaj Allianz product think
that there is not any hidden thing in company’s website. That means they have given full
information about their charges and all, followed by HDFC Life.

Also, 26 out of 39 people think that company’s (ICICI Prudential) website has full information
about their product. 5 out of 8 people think that company’s (Reliance Life) website has full
information about their product (Figure 4).

Availability of required information about products on websites always contributes towards

greater transparency in business which according to Saini ( 2011) is very important and sought
after feature at the customers’ end.

35
30
30

25 23
19
20
16 16 yes
15 no
10
5 5
5 3

0
hdfc bajaj icici reliance

Figure 4: Website information

Trusted Option for Purchasing

Although ‘company name’ does matters for purchasing an insurance product, customers are
always influenced by the agent /broker/ facilitator for these transactions. Hence, companies must
to take care of this aspect a lot to ensure good business volume. A dissatisfied customer will
always provide negative publicity to a particular company, hence companies need to groom their
agents /brokers/ facilitators well so as to enhance customer satisfaction levels.

The respondents were offered different facilitators / mediators and asked to rank them on one to
five (One being the most trusted & five as least trusted). According to study, customers rank
referrals by their colleagues/friends as most trusted option. This happens only when customers
are satisfied, and they will refer the product to others. Composite broker was found to be the
second more trusted option as it provides products from different companies. It is not necessary
that a company’s products will suit to everyone and here composite broker help customer to get
the right product suitable to his needs and requirements (Figure 5).

3.00
2.50
2.50 2.39 2.36
2.12 2.19
2.00
2.00

1.50

1.00

0.50

0.00
Individual Bank Staff Direct Broker Composite Comapny's Reffered by
Agent Broker Website coullege or
friend

Figure 5: Trusted option

Advertisement Effectiveness

Advertisement is the form of communication used by marketers to address customers and

influence them. Nowadays companies spent big amounts on advertisements to influence
customers for making them purchase company’s products. Respondents were asked to rank
advertisements of different insurance companies on a scale of one to five (one being the highly
effective and five as least effective). Results showed Advertisements by HDFC Life are more
effective compared to others. HDFC Life is leading in this, but still it is far away from perfection
and it must take more steps to improve to its Advertisement campaign (Figure 6).

2.50 2.49 2.48

2.48
2.46
2.44
2.42
2.40
2.40
2.38 2.37
2.36
2.34
2.32
2.30
hdfc bajaj icici reliance

Figure 6: Advertisement effectiveness

Customer Satisfaction

In this study, responses have been taken from people who know about ULIPs and they were also
asked whether they own any of the life insurance product. The responses of the sample are
recorded on which respondents had any of the product of the four companies. 42 out of 120 i.e.
35 % respondents, who already had an insurance product, were asked to rank their satisfaction
level for the particular company on a scale of one to five (one as highly satisfied and five as least
satisfied). According to the survey, ICICI Prudential had the maximum satisfied customers,
followed by HDFC Life. According to this data, customers of Life Insurance Companies were
very less satisfied. Here, ICICI Prudential is on top but with only 2.62 points (reflecting
dissatisfaction level). Also, customers were asked about their reasons of
satisfaction/dissatisfaction on the basis of the following four parameters i.e. Company’s
Reminder Policy, Employee’s Concern After Sale of Policy, Monthly/Quarterly/Half-yearly
Premium Scheme, Complimentary Gifts. 57 % of the respondents have voted Employee’s
Concern after sale of Policy as an important aspect.

This implies that all the insurers must train their respective employees to handle customer’s
queries and problems carefully (Figure 7). Seth (2012) has stressed upon the customer
satisfaction and asked market players to launch tailor made ULIP to cater 60-70 % population
which is largely uninsured.

4.00
3.40
3.50
2.96 3.00
3.00
2.62
2.50

2.00

1.50

1.00

0.50

0.00
hdfc bajaj icici reliance

Figure 7: Customer Satisfaction

Awareness About IRDA Guidelines

IRDA (Insurance Regulatory & Development Authority) is apex legal body which regulates &
develops Insurance sector in India. It was constituted in 1999. IRDA main aim is to protect the
rights of policyholders, to ensure that insurers will do fair treatment with all policy holders.
Respondents were asked whether they know about IRDA & its rules and regulations. Only 56 %
respondents knew about IRDA and its importance. Indeed, companies should spread the
awareness about IRDA so that people could believe that company is working according to IRDA
guidelines. If company will start promoting their product matching with IRDA guidelines, they
will get definitely a better response (Figure 8). Seth (2012) have already praised the guidelines
on return focused illustrations issued by IRDA and explained the positive impact of the guideline
on the overall market.
 44%
yes
no
56%

Figure 8: Awareness about IRDA Guidelines

Expectations from Company

A company launches a product with idea to cover a proper segment or area and should know
customer needs. 41% respondents have responded that they expect more returns from a company
followed by 35% respondents, who have responded in favor of complimentary gifts (Figure 9).
During discussions with respondents it was revealed that company’s employees should be in
touch with customer after sale of policy and monthly payment feature should be available on all
policies.

23.9
35.0
Lower Premuim
More Returns
Complimentary Gifts

41.0

Figure 9: Expectations from company

COMPARISON

All factors, like website information, Advertisement efficiency are ranked from 1 to 4 in context
of all four companies (see exhibit 11). Some of the conclusions are as following:

ICICI Prudential, have low website information and Advertisement Efficiency but have high
customer satisfaction and earnings. This data shows ICICI Prudential customers have high
satisfaction and they are referring their product to others. As discussed before, reference by
known person is the most trusted option to purchase an insurance product.

Among consistency, HDFC Life is on top because of their lowest mean. This data shows that
HDFC Life is almost effective in every field. Still, HDFC Life is on second position on
satisfaction and earnings after ICICI Prudential. HDFC Life, hence, needs to give more returns
that will lead them to more customer satisfaction and earnings.

4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
Website Information Advertisement Satisfaction Level Total Life insurance
Efficiency Premium earned

HDFC Life Bajaj Allianz ICICI Prudential Reliance Life

Exhibit 11: Comparison of ULIPS

CONCLUSION

The study has done a market analysis of ULIP product of HDFC Life with other competitors’
(Bajaj Allianz, Reliance Life, ICICI Prudential). The findings of the study from different quarters
show that HDFC Life was rated the best company because of their consistency whereas ICICI
Prudential had maximum market share and satisfied customers. ICICI Prudential was also seen to
be generating business through word of mouth, because their advertisement efficiency was low.
In context of customer satisfaction, HDFC Life was found to be second.

Study was conducted to generate awareness of insurance industry. The study showed that LIC is
the market leader with share of 70 per cent, which directly shows that people don’t trust private
insurers. Among all private players, HDFC Life is on third position of total life insurance
premium earned. One important takeaway was that all private insurers needed to improve their
Children’s Plan because it was least selected reason for people for choosing an insurance
product.

HDFC Life’s website was not found very efficient. However, to Economic Times report dated
12th March, 2013, it was accepted by HDFC as an area of concern and was reported that HDFC
would spend Rs 120 crore on advertisements over the next four years, as part of a technology-led
business transformation initiative meant to help the company to be more competitive.1

For many decades public insurer (LIC) alone has major share of 70% life insurance market.
Private insurers have to create good impression among people about their products, services and
returns. This huge market share directly signifies the trust building activities are very important
for private insurers in India. Among all 23 private insurers, HDFC Life is on third position with
12 % market share whereas ICICI Prudential is on top with 16 % share. HDFC Life has to take
major steps for consumer satisfaction to increase their business.

RECOMMENDATIONS

All private Insurers need to improve their Children’s Plan because it was least selected reason for
people for choosing an insurance product. That shows people don’t want to take risk about their
investment for children’s education. Insurers should offer guaranteed payback in Children’s
Plan. Maximum people buy insurance product for tax deduction and returns, hence all private
insurers should take all possible steps to incorporate these two benefits in their insurance
products.

From Economic Times News ‘HDFC Life plans 120 cr spend for Tech Edge posted on 12th
1

march, 2013
Most people need high returns in ULIP and they are ready to take high risk. For this any insurer
should manage their funds very carefully because equity market is totally unpredictable and
insurers should diversify their investments in various companies of different sectors to minimize
the risk. Minimum Guaranteed NAV Plans are less favored among high risk plans because of
company’s high ‘Guarantee Charge’ on plans; hence insurers need to be come out with less
‘Guarantee Charge’. Further, insurers must understand that they need to give maximum returns
to customers, because most people check past records before buying an insurance product.
Others options like accessibility through internet, goodwill of company, product range of
company are less important against past records of returns. Returns will directly be proportional
to their market share, as more returns they will give more business they will get. Availability of
information on website and its accessibility has also emerged as a major factor that people
consider before buying an insurance product must be kept in mind by the companies. The
findings of the study do not aim to be prescriptive, however, they can used as important
guidelines of companies aiming for a larger market share in the area of ULIPs.

REFERENCES

 Dash M., Lalremtluangi C., Snimer A. and Thapar S. (2007), A study on Risk-return
characteristics of life insurance policies, Working paper, Social Science Research
Network, September 15, 2007, pages 1-25
 Devasenathipathi T., Saleendran P. T. and Shanmugashunaram A. (2007), A study on
consumer preferences and comparative analysis of all life insurance companies, Journal
of Consumer Research, The ICFAI University, Vol. II, No. 4, page 7-16
 Khurana, A. (2009), An empirical study on performance of unit linked pension plans of
selected private sector life insurance companies, Indian Journal of Finance, Vol III,
No.11, November 2009, Pages 17-25
 Kumar K. R. (2013), Mutual funds VIS-à-VIS Ulips: An evaluation, EXCEL
International Journal of Multidisciplinary Management Studies, Volume 3, Issue 2,
Indian Journals.com, pages 86-97
  Mitra D. & Khan P. C. (2012) “A comparative study of traditional policies and ULIPS
with reference to life insurance companies in India”, SIT Journal of Management Vol.2.
No. 2, pages 42-56
 Prasad J. C., Babu S. H., Chiranjeevi K. and Rao KVVS Visweswara (2009), Unit Linked
Insurance plans- the tasterís perceptions on the mixed bag of fruits, Indian journal of
finance, Vol III, No.11, November 2009, pages 42-50
 Rajagopalan R. (2005) “Unit-linked insurance policies in the Indian market-a consumer
perspective”, Working Paper no. 56 (WP200519), T A Pai Management Institute,
Manipal, Pages 1-13
 Saini N. (2011) “Unit linked insurance plans – a comparative study of selected insurance
companies in Haryana and Punjab”, Journal on Banking Financial Services & Research,
Volume 1, Issue 3, pages 119-127
 Samajpati, U. (2012), Performance appraisal of Unit linked insurance Plans (ULIPs) in
India: A case study, Management Insight, Vol. VIII, No. 2; December 2012, SMS
Varanasi, pages 66-69
 Seth N. (2012)“Factors behind rise and fall in the sales of unit linked Insurance plans in
India”, Journal of Business Management & Social Sciences Research, Volume 1, No.2,
pages 70-76
 Srivastava A., Tripathi S., & Kumar A. (2012), “Indian life insurance industry – The
changing trends”, Journal of Arts, Science & Commerce, Vol.– III, Issue 2(3), pages 93-
98

ANNEXURES

Annexure 1

HDFC Life Bajaj Allianz ICICI Prudential Reliance Life

(CREST) ( I GAIN III ) ( Pinnacle Super ) (Guaranteed
Maturity Insurance
Plan)
ELIGIBILITY CRITERIA(AT ENTRY)
Min age- 14 yrs. Min age- 1 yr. Min age- 8 yrs. Min age- 8 yrs.
Max Age- 55 yrs. Max Age-60 yrs. Max Age- 70 yrs. Max Age- 50 yrs.
(single premium)
65 yrs. (5
 premiums)

AGE AT MATURITY
Max - 65 yrs. Min Age- 18 yrs. Min age- 18 yrs. Min age- 18 yrs.
Max Age- 75 yrs. Max age- 80 yrs. Max Age-60 yrs.
(single premium)
75 yrs. (5
premiums)

POLICY TERM
10 yrs. 10,15 & 20 yrs. 10 yrs. 10 yrs.

MINIMUM PREMIUM

Rs. 50,000 Rs. 15,000 (less Rs. 48,000 (one Rs. 50000
than 9 yrs.) pay)
Rs. 10,000(10 or
more than 10 yrs.) Rs 24,000 (five pay)

MODE OF PREMIUM
Annual Monthly/ Quarterly/ Annual Only Single
Half Yearly/ Premium
Annually
SUM ASSURED

MIN – 10 times of MIN – 10 times for MIN- 125%of POLICY YEAR - 1

Annual Premium less than 45 yrs. premium(one pay) 5 times the single
MAX- 20 times of 7 times for more 10 times of annual premium
Annual Premium than 45 yrs. premium (five pay) POLICY YEAR - 2
MAX- Policy term MAX-As per and later
times of Annual maximum sum Life assured age at
Premium assured multiples 1.25 times the
single premium
entry

MATURITY BENEFIT
Highest of Fund value as on Higher of applicable Higher of
Guaranteed fund of maturity date fund value or applicable fund
Rs. 15 Or guaranteed value value or guaranteed
NAV on date of value
maturity

DEATH BENEFIT
Higher of Sum assured- all One pay- Sum Higher of
Sum assured or fund partial withdrawals assured minus all Sum assured or
value partial withdrawals fund value
 Five pay- Sum
assured plus fund
value, which should
be not be less than
105per cent
PREMIUM ALLOCATION CHARGE
Yr. 1&2 – 4per cent Yr. 1to 5 – 2per Single premium No premium
Yr. 3 – 3per cent cent < Rs. 500,000 - 5per allocation charge
Yr. 4 – 2per cent Yr. 6 onwards – nil cent
>= Rs. 500,000- 4
per cent
Five pay
Yr.15 – 6per cent
Yr.2 – 5per cent
Yr.3,4&5 – 3per
cent

ANNEXURE 2
Figure1

HDFC Life- Crest Bajaj Allianz- I Gain III

Figure 2
ICICI Prudential- Pinnacle Super Reliance Life Guaranteed Maturity
Insurance Plan
Source: www.moneycontrol.com

ANNEXURE 3
Exhibit 1: Customer satisfaction in India