CHAPTER-1 INTRODUCTION

Term assurance
It covers the insured for life. This is the most basic plan and people take it only in combination of other plans.

Endowment plan
It is saving plan that is most popular among respondents. It is suitable to all classes of people. Moreover it is superior to other saving tools like bank savings, RDs as it gives returns in addition to risk coverage.

Money back plan

In this plan the insured receives money at regular intervals during the term on survival. This is most suitable to businessmen who don't want to block their money and have many other investment opportunities.

Children plan
These policies are best suited for the value conscious customer for planning children's future education and marriage costs. People find it more attractive when riders like accelerated benefit and double benefit plan are attached to the basic plan.

Personal pension plan

This plan is designed to provide an income for life from retirement, with an option to take the lump sum elsewhere to buy the annuity. It is taken by people on consideration of old age security. To make pension products Into attractive saving instruments, simple innovations has made by Kotak. For example, their returns are tried to index-linked funds or a specific basket of 1

equities. Buyers are allowed to switch funds before the annuities begin and to invest different amounts at different times.

Single premium whole of life

This is a pure investment plan and is suitable to persons who can afford to pay lump sum. People found it appealing due to high returns as compared to fixed deposits (FD) accounts and fewer formalities required.

Unit linked insurance plans

These plans are exposed to market fluctuations and risk attached with that. These plans are suitable to persons who have good information regarding ebbs and flows of stock market. As bonuses or returns can be withdrawn on yearly basis with no capital gain tax, ULIP is superior to any other investment tool like direct investment in stocks and mutual funds. ULIP offers greater flexibility and transparency to the customers. Introduction of unit-linked products, particularly at tunes when the stock markets are exhibiting a rising trend, is a good strategy

1.1INTRODUCTION TO THE TOPIC

HISTORY OF INSURANCE

Insurance has existed for thousands of years. As with so many things in facets of our lives, insurance too was born out of a primal need and shaped by socio-economic realities of the time. Insurance as we know it today owes its existence to 17th century England. A form of credit insurance was included in the code of Hammurabi., a collection of Babylonian laws said to predate the Law of Moses. To finance their trading expedition in ancient times, ship owners obtained loans from investors. If a ship was lost, the owners were not responsible for paying back the loans. Since many ships returned safely, the interest paid by numerous ship owners covered the risk to the lenders.

That, perhaps, was how insurance made its beginning

It was likewise in a maritime setting that later one of the world's most famous insurance providers, Lloyd's of London, was born. By 1688, Edward Lloyd was running a coffeehouse where London merchants and bankers met informally to do business. There financiers who offered insurance contracts to seafarers wrote their names under the specific amount of risk that they would accept in exchange for a certain payment, or premium. These insurers came to be known as underwriters. Finally, in 1769, Lloyd's became a formal group of underwriters that in time grew into the foremost market for marine risks. The 19th century saw huge developments in the field of insurance, with newer products being devised to meet the growing needs of urbanization and industrialization.

OVERVIEW OF INSURANCE INDUSTRY INSURANCE IN INDIA :

1818 1819 1870 The British introduce life insurance to India, with the Establishment of the oriental life insurance company in Calcutta. Non-life insurance debuts, with Triton insurance company. Bombay mutual life assurance society is the first Indian owned life insurer. 1907 Indian mercantile insurance is the first Indian non-life insurer. 1912 The Indian Life assurance companies act enacted to regulate the life insurance business. 1938 The insurance Act, which forms the basis for most current insurance laws, replaces earlier acts. 1956 Life insurance nationalized; government takes over 245 companies and foreign insurers and provident societies. 1956 Government sets up LIC 1972 Non-life insurer nationalized; GIC set up. 1993 Malhotra committee recommends re- entry of private players, autonomy to PSU insurers. 1997 Insurance regulator IRDA (insurance regulatory and development authority) set up. 2000 2001 2001 2002 IRDA starts giving licenses to private insurer; ICICI prudential and HDFC Standard Life first private life insurers to sell policy. Kotak Launches own insurance service. Royal Sundram first non-life insurer to sell policy. Banks allowed selling insurance plans.

ORIGIN
With the marine route being the bedrock of trade and commerce in those days the practice of botomry evolved and spread. With the growth of towns and trade in Europe, medieval guilds pooled in money to protest their members from loss by fire and shipwreck to pay ransom if they were captured by pirated and to provide burial and support in sickness and

poverty. Lloyd's of London, the largest marine insurer today was founded in 1688. The British brought insurance to India in 1818 and the 1st Insurance Company was the Oriental Life Insurance Company. The Insurance Act 1938 introduced State Control on insurance but even this fails to safeguard policyholder's interest.

NATIONALISATION
On 19 January 1956 the life insurance business was nationalized. About 245 companies were swooped. 8 months later LIC was formed. Today this monolith has 2100 branch offices, 8,00,000 agents and offers a bevy of insurance and investment products. It has created an enviable brand name, particularly among rural population of country. Similar circumstances led to the nationalization of non-life. Non-life insurance was nationalized in 1972. General Insurance Corporation (GIC) was set up as a holding company, a total of 107 private insurers were merged and grouped to form GIC's four subsidiaries.

PRIVATISATION
In the early nineties the government went on a reform binge and started loosing control on Indian Industry. In 1993 the Government appointed Malhotra Committee, headed by former RBI Governor R.N. Malhotra to draw blueprint for insurance sector reforms. The panel submitted its report a year later recommending privatization. Potential private entrants therefore expect to score in the area of customer service, speed and flexibility. They point out that then" entry will mean better products and choice for the customers. The liberalization of insurance creates an environment for the generation of long-term contractual funds for infrastructure investment.

INSURANCE SECTOR EMERGING AREAS

Some of the emerging areas for insurance sector in India are:

1.

Demand for Pension Plans : Two relatively modern trends affect life
insurance business in India significantly. The first one is the joint family system which worked like an insurance arrangement. With more and more nuclear families becoming the rule, there it a greater demand for life insurance cover the second trend is that elderly are increasingly having to fend for themselves. In 1990, India had about 54 million people above the age of 60. This number is expected to increase to 100 million by 2004, and to almost 10% of the total population by 2010. Thus future senior citizens look towards planning for their own old age and the need for pensions and annuities. These two trends portend a large and growing market for life insurance in India.

2.

Separateness of Banking and Insurance: There is lot of speculation

whether banks should be allowed to operate in the insurance sectors. The reasons for allowing banks are competition would enhance Efficiency and benefit consumers, public-men enjoy a One- Stop Financial Service Paradigm, banks could recoup some of the lost business to securities firms and there would be synergies in operating insurance and banking. The reasons against are - it would create unhealthy concentration of market power, it would expose banks to additional and unnecessary risks and banks would have unfair advantages since they have detailed information on their customers financial position.

3.

Role of Information Technology : The Business of selling life insurance

requires assessing the profile of the customer and assigning the right policy. This process is facilitated by a database and is Completely driven by information technology.

4.

Using Postal Network : Another important factor is allowing the existing

network of 1,50,000 branch offices of post and telegraph to sell life insurances and related financial products. Already postal banks generate more deposits than all commercial banks and hence their role can hardly be overemphasized. Post offices can also act as avenues or agents of non-life insurance companies. However they cannot be expected to underwrite risks.

5.

Creating Insurance awareness: It is the need of hour to create

insurance awareness among the general public. It will require a whole lot of efforts on the supply and distribution side.

6.

Innovative Products: Insurance companies should offer innovative

products to tap huge amount of resources for the developmental activities. In developed economies, insurance products are sold Focus of insurance
industry is changing towards providing a mix of protection / risk cover and long term investment opportunities.

WHAT IS LIFE INSURANCE?

Life insurance is all about making sure your family has adequate financial Resources to make those plans and dreams come true. It provides financial Protection to help your family or business to manage after your death. The life insurance deals with risks relating to life of human being. The circumstances (perils) that creates the loss or damage (risks) are mainly two, Death and old age. Insurance does not prevent either. It can mitigate the consequences in those circumstances. 1). Life insurance enhances the existing standard of living. 2). Life insurance helps people live financially solvent lives. 3). Life insurance perpetuates life, liberty and pursuit of happiness. 4). Life insurance is a way of life.

NEED OF LIFE INSURANCE?

Life insurance has come a long way from the earliest days when it was originally conceived as a risk covering medium for short periods of time,overing more established, it was realized what a useful tool it was for a number of situations, including

a) Temporary needs / threats

The original purpose of life insurance remains an important element namely providing for replacement of income on death etc.

b). Regular Savings

Providing for ones family and oneself, as a medium to long term Exercise (through a series of regular payment of premises). This has become more relevant in recent times as people seek financial independence for their family.

c). Investment
Put simply, the building up of savings while safeguarding it from the ravages of inflation. Unlike regular savings products, investment products are traditionally lump sum investments, where the individual make a one off payment.

d). Retirement
Provision for later years becomes increasingly necessary, especially in a changing cultural and social environment. One can buy a suitable insurance policy, which will provide periodical payments in ones old age.

INSURANCE AS AN INVESTMENT
Flexible Investment and protection solutions In this category we have two products, Regular premium unit-linked Investment plan. Single premium unit- linked Investment plan.

Benefits
Death Benefit: In case of unfortunate death of the life assured the death benefit will be higher of the sum assured or the value of the units at the time of death, less any withdrawals made before death. However, in case the life assured is less than 7 years of age at time of death; the value of units will be paid.

Options
Liquidity Option: There is no maturity date of this policy. Any time after you have paid the contribution for 3 full years, you can make partial withdrawals at no penalty to meet your immediate requirements. The minimum amount of partial withdrawal requirements. The minimum amount of partial withdrawal has to be Rs.2, 000. You can also opt for complete withdrawal (surrender) after one fill years premium has been paid.

Flexibility Increase your Sum Assured

At various stages of your life, your liabilities may increase marriage, children, a new home, children going abroad for higher studies. Life Time II offers you the flexibility to increase your death benefit anytime during the term, depending upon your changing protection requirement. However, any such increase would be subject to underwriting at the time of such increase. This increase is over and above the increase in Sum Assured under Level2.

Decrease your Sum Assured

Over time, your liabilities may decrease too various loans get paid off, your children become independent and so on. With Life Time II, you also have the option of decreasing your Sum Assured. However, any increase after the decrease in Sum Assured will be subject to under writing. Any change in Sum Assured can be done only at policy anniversary.

A. Flexible contribution
You can increase and decrease your annual contributions. You can up to 20% of the initial contribution choose the maximum decrease in the contributions at the time of inception of the policy. However, under no circumstances can the contribution be reduced to below the minimum premium allowed under the plan at that time, or 80% of the initial chosen contributions, which ever is higher. You have the flexibility to increase your contribution without any limits. Any such increase or decrease in contribution will only be allowed on policy anniversaries.

B. Automatic Cover Continuance

This is a facility provided by the product wherein, the insurance cover under the policy continues even if there is a temporary break in the payment of annual contribution after 3 years premiums have been paid. During this period, the cover continues by deducting mortality charges (in terms of units) from the value of investments. However, this facility can be availed subject to two conditions: i) The break in contribution can only be availed, in case contribution till those dates are paid off. ii) Until 10 years premiums have been paid, this facility can be availed for a maximum of two years at a time. After 10 years premiums have been paid, you can avail of this facility without the above-mentioned conditions.

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Other Benefits: a. Additional allocation of units to policyholders

As a policyholder you would be provided with additional allocations on a periodic basis. These would depend upon the total value of units of the policy. The schedule of the additional allocation would be as follows: Average Value of Units* <= 75,000 75,001-5,00,000 5,00,001-10,00,000 10,00,001-50,00,000 50,00,001 and above Additional allocation as a % of Average Unit Value 0.15% 0.20% 0.25% 0.30% 0.35%

This allocation would be made at the end of the 4th, 8th and 12th policy year. The allocation would only be paid if the regular contributions till that year are completely paid, or on the actual payment of the premium due for the 4th, 8th and12th policy year, where such premiums remain unpaid. (The levels of allocation as mentioned above are guaranteed in the 4th, 8th and 12th year, depending on your value of units are not guaranteed.) The average unit value is the value of the daily fund of the year preceding the date of additional allocation.

b. Surrender values

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Before 1 Years contribution is paid Nil st After 1 years Contribution is paid 25% of Value of Investments nd After 2 years Contribution are paid 40% of Value of Investments After 3rd years Contribution are paid 60% of Value of Investments th After 4 years Contribution are paid 100% of Value of Investments He is allowed to surrender after1 years contribution is paid. The surrender values available to you as the policyholders will be as follows:

c. Loan against the policy

After the policy has acquired a surrender value, you can avail of a loan under this policy. Interest will be charged on the loan, as per the prevailing rate at that time. No partial with drawls can be made during the loan period. In case the loan amount along with the accrued unpaid interest becomes equal to the value of the units, then the policy will be terminated. Loans will be subject to the terms and conditions applicable to loans at the time of availing the loan.

What are the charges?

A. Premium Allocations: the premium allocation would be based on the annual contribution limits. The yearly allocation schedule would be as follows:

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Contribution Range (Rs) 18,000-35,999 36,000-99,999 100,000-4,99,999 5,00,000+

% Allocation of the Premium 1st Year 2nd-5th Year 6th-10th 81% 83% 85% 88% 96% 96% 96% 96% Year 98% 98% 98% 98%

11th

Year

onwards 99% 99% 99% 99%

b. Administrative and Fund Management charges: An administrative charge

of Rs. 60 per month will be levied by cancellation of units. The annual fund-related charges on the various funds are as follows: Fund Type Maxi miser II Balancer II Protector II Preserver II Investment Charge 1.50% 1.00% 0.75% 0.75%

c. Mortality charges: This charge will be deducted on a monthly basis on the

calculated value of life cover. Life cover is the difference between the Sum Assured and the value of investments. These are a set of renewable charges depending on the age of the policyholder, at the time of deduction of morality charges. Age-wise mortality rates are available in the mortality table. The rates applicable for the two Sum Assured levels would be different.

Age at entry (years) 30 40 50

Mortality Charges (per Rs.1000 sum at risk) Level 1 sum assured Level 2 sum assured 1.44 1.61 2.39 2.73 5.59 6.46

d. Top-up charges: Top-up charges will be 1% of the Top-ups. e. Switch charges: Expect for the 4 free switches allowed every policy year, all

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other switches will be charged at Rs. 100 per switch. What are the limits of conditions applicable? (For Life Time II) Minimum age at entry: 0 years (18 years for Level to Sum Assured Option) Maximum age at entry: 60 years (35 years for Level Sum Assured Option) Maximum age of cover: 70 years

Add-on Riders
We ensure that you are prepared for any eventuality, with a choice of riders along with the Death Benefits to give you total protection all at a marginal extra.

1 Accident and Disability Rider:

In the unfortunate event of accidental death, apart from the emotional trauma, there are financial liabilities a family must face. This rider offers cover against Accident and Disability. In the event of death due to accident, the nominee gets and additional Sum Assured under the rider. i) ii) In case of accidental death while traveling by mass surface transport, the nominee gets twice the Sum Assured under the rider. In the event of total and permanent disability due to an accident, which impairs ones capacity to earn, 10% of the Sum Assured is paid every year for 10 years. 2

Waiver of Premium Rider (Life Time II Only): This rider pays the
contributions to the fund on your behalf in case of a total and permanent disability due to an accident. This benefit is provided till the end of the rider term. The minimum age of entry is 18 years and the maximum age of entry is 55 years. The maximum premium that can be waived under this rider is Rs. 10,00,000. This benefit is provided for a maximum of 30 years subject to a maximum age of 65 years, for expiry of this cover. The minimum term is 10 years.

Critical Illness Rider: In this event of the life assured contracting any of the
specified critical illness, maximum age of entry is 55 years. Minimum Sum

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Assured is Rs. 1, 00,000 and maximum Sum Assured is Rs. 10, 00,000. For further details on the Riders, please call on the numbers provided and ask for the Rider brochure.

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Need

of

Key Benefits of Life Insurance the life Insurance

Today, there is no shortage of investment options for a person to choose from. Modern day investments include gold, property, fixed income instruments, mutual funds and course, life insurance. Given the plethora of choices, it becomes imperative to make the right choice when investing your hard-earned money. Life insurance is a unique investment that helps you to meet your dual needs - saving for life's important goals, and protecting your assets. Let us look at these unique benefits of life insurance in detail.

Asset Protection : From an investor's point of view, an investment can play two roles
- asset appreciation or asset protection. While most financial instruments have the underlying benefit of asset appreciation, life insurance is unique in that it gives the customer the reassurance of asset protection, along with a strong element of asset appreciation. The core benefit of life insurance is that the financial interests of ones family remain protected from circumstances such as loss of income due to critical illness or death of the policyholder. Simultaneously, insurance products also have a strong inbuilt wealth creation proposition. The customer therefore benefits on two counts and life insurance occupies a unique space in the landscape of investment options available to a customer.

Goal based savings : Each of us has some goals in life for which we need to save.
For a young, newly married couple, it could be buying a house. Once, they decide to start a family, the goal changes to planning for the education or marriage of their children. As one grows older, planning for one's retirement will begin to take precedence. Clearly, as your life stage and therefore your financial goals change, the instrument in which you invest should offer corresponding benefits pertinent to the new life stage. Life insurance is the only investment option that offers specific products tailormade for different life

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stages. It thus ensures that the benefits offered to the customer reflect the needs of the customer at that particular life stage, and hence ensures that the financial goals of that life stage are met. The table below gives a general guide to the plans that are appropriate for different life stages.

Take a look at the difference insurance makes

The table below compares an annual investment of $4 000 over a 10 year period on a taxexempt life insurance policy for $400 000 with a similar$4 000 investment that is taxed annually. At the end of the 10 years period when the child turns 18 and goes to university, the grandparent either transfers the life insurance policy or gives the child the investment, depending on the initial investment choice. Over the next 5 years, the student withdraws $5 000 annually from the savings portion of the life insurance policy to cover tuition expenses.

Compare the benefits:

Life Insurance vs. Regular Taxable Investment

We have assumed a 6% rate of return on all investments in calculating these figures. The grandchild's tax rate is 22.20% and the grandfather is 37.16%. *After tax capital accumulated 17

The advantages of a life insurance savings plan are plain for all to see! The higher the return, the greater the benefit you enjoy with Universal Life Insurance.

Other advantages Life Insurance's advantage as a tax-sheltered investment

Life insurance could have two roles as a tax-sheltered investment:

The earnings on a cash-value policy are not The proceeds of a death benefit settlement

taxed until you take them out.

are not taxable to your survivors. Death benefit is not taxable for your survivors, and using the same logic, you may compare the taxable versus the non-taxable gain: Let's assume that you currently earn $80,000 a year, and you buy a $200,000 life insurance policy to help your family pass two-and a half years without your income. If you die, your survivors get a full $200,000, and without tax. Because the proceeds for death settlement and the earnings of a cash-value life insurance policy are both tax deferred, they serve as excellent tax shelters.

INCOME

TAX GROSS

HOW MUCH TAX KOTAK LIFE PLANS 18

SECTION

ANNUAL SALARY

CAN YOU SAVE? Upto Rs. 33,990 saved on investment of All the life insurance plans. Rs. 1,00,000. Upto Rs. 33,990 saved on Investment of All the pension plans. Rs.1,00,000. Upto Rs. 3,399 saved All the health insurance on Investment of riders available with the conventional plans. 37,389 Rs. 10,000.

Sec. 80C

Across

All

income Slabs. Across income slabs. Across income slabs. Rs. all all

Sec. 80 CCC

Sec. 80 D*

TOTAL SAVINGS POSSIBLE ** Sec. 10 (10)D

Rs. 33,990 under Sec. 80C and under Sec. 80 CCC , Rs.3,399 under Sec. 80 D, calculated for a male with gross annual income exceeding Rs. 10,00,000. Under Sec. 10(10D), the benefits you receive are completely tax-free,

subject to the conditions laid down therein. * Applicable to premiums paid for Critical Illness Benefit, Accelerated Sum Assured and Waiver legislations, which of are Premium subject to Benefit. change. ** These calculations are illustrative and based on our understanding of current tax Please contact your tax consultant for exact calculation of your tax liabilities.

Unique advantages of life insurance as an investment

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Another advantage of having life insurance is to use it as part of your investment plan. Most financial advisors would encourage you to have balanced investments so that if one kind of investment goesdown (in the stock market, for example), another one will likely go up (such as bonds or real estate). By using balanced portfolio and investments diversification, you can compensate loss in one area by having some assets in the other areas that is profitable.

Some life insurance policies are actually long-term investments, which you can contribute to and withdraw funds from before you die. The cash-value policies for whole life and universal life insurance are actually can be considered as savings accounts that will accrue cash value over time and also pay for your protection. Although these policies dont provide highest interest rates available, they are untaxed earnings, so you get a higher return than simply putting your money in a savings account on which you must pay taxes. This kind of life insurance should be your priority in choosing a life insurance plan.

Life Insurance as the financial protection for beneficiaries

The need to protect your survivors also means to replace the income you bring in if you die prematurely. Perhaps, you spend large part of your earnings on the costs of bringing them up. If you die, the life insurance death benefit replaces those earnings so that they

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wont have a better financial situation. If you have a mortgage on your house, a life insurance death benefit can support your family to stay in the home even if you die. Life insurance can help solve the difficulty of the need to totally change your way of life because you lose half or more of your income. Lastly, if you are part-owner in a business, the business may purchase a life insurance policy on you so that if you die, your partner can use that death benefit to buy out your share of the business from your heirs, which in turn would also benefit your survivors by bringing them much needed money.

MYTH ABOUT LIFE INSURANCE Life Insurance Myth #1: Life insurance is unnecessary for elderly

A few decades ago being older is meant "more than 50". But many people need life insurance at 50, 55, 60 or 65. Age is not always a reason to forgo life insurance. Even the so-called "old" people should, because they need income protection for their survivors if the head of household or primary caregivers die prematurely. People

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in their 50's and 60 (and sometimes into their 70s) are often in their peak earnings moments and have large family responsibilities. You can give your family time to adjust to your death without having to change their usual standards. Today, many more people in their 50's and 60 are continue to support young children. If a woman has a child when she was 40 or 42, that the child will still in college when her mother is 60 years old. Or let's suppose you have a non-working spouses and you die at the age of 60 years, he or she may not be able to find a decent job that provides an income comparable to keep the same standard of living. Many elderly people actually need more life insurance for a number of reasons:

You may have less time to compensate for the loss of revenue. You may find that inflation has cut into the value of police insurance. You have a greater need for estate planning that you are older because you You have a greater need for tax planning as you age because you are very It can play a significant role in your tax planning.

have less time to carry out your plan.

likely to earn more, and life insurance

Life Insurance Myth #2: Life insurance is a bad investment

Life insurance may not be the most profitable investment available, but it is rarely bad one either. If you measuring an investment only in the amount that you get in return, Life insurance may or may not be a good investment. When you are planning to buy a life insurance policy, understands that you will pay your survivors with the same money. If your family is guaranteed to get more than the money that you spend then , life insurance is a good investment. If your family will get less, it's not a good investment. However, life insurance is much more than seeking for profitable return on investment. Life insurance also offers protection for your dependents and peace of mind that your family is better taken care of.

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If you are looking for a pure return on capital, you will find many more lucrative investment, even tax-deferred or taxfree advantages. The primary function of life insurance is not as an investment but as a protection. No other investment cCan offer the same degree of protection for your family.

Life Insurance Myth #3: I only need life insurance if I have children
Most people think they need life insurance only if they have a family - to ensure that victims are not left without proper medical care, due to the lack of fund. Life insurance is important for several other reasons, which you can read in more detail later in this blog. A single person with ordinary lifestyle might still need life insurance coverage.

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The Two Drawbacks Of Investing In Life Insurance

Tax-sheltered growth in life insurance is great unless you're forced to compromise with 1. limited investment choices 2. relatively high Management Expense Ratios (MERs) These two criticisms have been levied against life insurance. There's a feeling that it's better to Buy Term and Invest the Difference. Insurance investment choices have evolved to better suit the needs of active investors. Here's a history lesson.

Passive Investors
Whole life insurance gave no choice of investments. The insurer made the investment decisions and you got whatever returns resulted. Rather than blindly trusting the insurer, most Canadians wanted more control. In response, Universal life (UL) insurance was developed and gave let you choose fixed interest investments. Since the highest tax rates are on interest, these investment are ideal for tax sheltered growth. But this is a small subset of the investment universe. And unappealing to active investors.

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Active Investors
Universal life insurance evolved to add indexes as choices for a "buy and hold" portfolio. A handful of mutual funds may also be available. However, you can't invest in vehicles like real estate, your own business or Exchange-Traded Funds (ETFs). Also, the MERs are generally higher inside UL because of Investment Income Tax (IIT), a hidden tax which adds about 0.5% (50 bps) to the Management Expense Ratio. What good is investing in UL when the investment choices are limited and the MERs are relatively high? Buying term and investing the difference outside seems appealing. There is a solution.

Investing Outside
You can use a cash-rich UL policy as collateral for investment loans. Besides getting taxsheltered growth inside the policy, you can get three advantages by leveraging:

unlimited investment choice: you invest the way you normally invest tax deductible loan interest tax savings on a portion of the premium when the lender requires insurance to secure the loan

Next time we'll look at "10-8" financial leveraging, a recent innovation which gives you the advantages of normal investing while using life insurance to reduce the risks of leveraging.

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BIRLA SUN RISE life Insurance is a Worthwhile Investment

BIRLA SUN RISE life insurance policies are useful because they can better serve the unique needs of customers Although you may not have any dependents, a BIRLA SUN RISE life insurance policy can help you to begin formulating a plan that will protect your assets and finance your final expenses. Multiple types of affordable plans and options from which you can choose are available. And it is easy to qualify for BIRLA SUN RISE life insurance. There is no medical exam; all you have to do is answer some health questions. It is important to seek out a policy that will not be cancelled just because you have grown older. For example, your top priority should be purchasing an amount of BIRLA SUN RISE life insurance that will provide adequate coverage for burial and funeral costs. 1Funeral costs average over $6500 and Social Security provides only $225. Naturally, most people dont want to put that kind of burden on their loved ones. Also, you must consider the likelihood of incurring medical bills or other outstanding debts that will need to be immediately addressed. This is important because even if you leave your family a large nest egg, they may have to wait a long time to receive any money from your estate. Meanwhile your loved ones could be responsible for paying your outstanding debts and other expenses. Probate is a process that freezes your assets and can take a long time, anywhere from 618 months. After probate, any further debts that are still outstanding will be either taken from your estate or inherited by your loved ones. As a result, they may have to borrow the money or take the necessary funds from their savings. In contrast, there are no restrictions on how your loved ones may use the proceeds from your BIRLA SUN RISE life insurance policy. The money can be used for any expense, and your loved ones are usually given this tax free money within 2 weeks. Therefore, your final expenses will not rest on your family.

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Tips to Getting Life Insurance

If you need life insurance you should determine how much insurance is appropriate and the type of life insurance policy that would best meet your familys needs. Do we have a life insurance policy equal to the value of the business, simple, investment grade life insurance?

Your life insurance quote will be less once you have got one year smoke free under your belt. I had a renewed sense of self-confidence and hope for my health, auto and life insurance needs. Firstly, a Life Insurance policy combined with Critical Illness cover will work out significantly cheaper than buying two separate policies.

This agreement is funded buy a small business life insurance policy specially bought for that purpose. However, in the authors view it will take more than a decade to get people covered by life insurance above the 50% level. = Life Insurance Can Help Pay for the Care and Education of Your Children = If you are a family with special needs children, you may be paying for special tutoring or child care.

To make sure that you will be able to pay it back at the end, you take out an endowment policy with a life insurance company. These policies will enable you to convert your current term coverage to permanent life insurance at a

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later date, and generally a medical exam is not required.

Life Settlement Regulations As of June, 2003, eighteen (18) states have enacted statutes addressing the sale of life insurance policies insuring nonterminally or chronically ill individuals and an additional seventeen (17) states have laws that only regulate the sale of life insurance policies insuring terminally or chronically ill individuals.

Life insurance buys you the time you need. Other Options If you come to the conclusion that selling your life insurance policy is not for you, there are other options (though none that would provide you with such a large lump sum). The basic idea behind life insurance is that if you die prematurely, there will be a pot of money there to take care of your loved Senior Life Settlement Industry focus all the effort on senior citizens, who possessing an unwanted or unneeded life insurance policy, decide to sells life settlements to a third party company instead of surrendering it back to their default life insurance company. For those who are not terminally ill, selling the life insurance might be a good idea for a number of reasons. As a Life Insurance person, I always try to put myself in a position to win.

Not the same way you would commit to a life insurance policy premium. Also referred to as second-to-die life insurance, common abbreviations are SWL for survivor whole life and SUL for survivor universal life. These jobs

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fall under Civil Service and, as such, offer excellent benefits, including generous health plans, thrift savings plans, life insurance, annual leave, sick leave, and a student loan repayment plan.

In a guaranteed or non-profit endowment policy, the life insurance company agrees to pay the amount of money you borrowed at the end of the term (or on your death, if you die before then) and does no more than that. Im in Hardware Im a Plumber I sell life insurance and used cars, thinking about a Joint Life Insurance Policy.

Come and type in life insurance quote, notify your husbands employer and file for any benefits owed you, such as pension income, life insurance and health insurance coverage. Well, there is a reason you are interested in purchasing a term life insurance policy in the first place

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CHAPTER-2

Company Profile
Established in 2000, Birla Sun Life Insurance Company Limited (BSLI) is a joint venture between the Aditya Birla Group, a well known and trusted name globally amongst Indian conglomerates and Sun Life Financial Inc, leading international financial services organization from Canada. The local knowledge of the Aditya Birla Group combined with the domain expertise of Sun Life Financial Inc., offers a formidable protection for its customers future. With an experience of over 9 years, BSLI has contributed significantly to the growth and development of the life insurance industry in India and currently ranks amongst the top 5 private life insurance companies in the country. Known for its innovation and creating industry benchmarks, BSLI has several firsts to its credit. It was the first Indian Insurance Company to introduce Free Look Period and the same was made mandatory by IRDA for all other life insurance companies. Additionally, BSLI pioneered the launch of Unit Linked Life Insurance plans amongst the private players in India. To establish credibility and further transparency, BSLI also enjoys the prestige to be the originator of practice to disclose portfolio on monthly basis. These category development initiatives have helped BSLI be closer to its policy holders expectations, which gets further accentuated by the complete bouquet of insurance products (viz. pure term plan, life stage products, health plan and retirement plan) that the company offers. Add to this, the extensive reach through its network of 600 branches and 1,75,000 empanelled advisors. This impressive combination of domain expertise, product range, reach and ears on ground, helped BSLI cover more than 2 million lives since it commenced operations and establish a customer base spread across than 1500 towns and cities in India. To ensure that our customers have an impeccable experience, BSLI has ensured that it has lowest outstanding claims ratio of 0.00% for FY 2008-09. Additionally, BSLI has the best Turn Around Time according to LOMA on all claims Parameters. Such services are well supported by sound financials that the Company has.

30

The AUM of BSLI stood at Rs. 8165 crs as on February 28, 2009, while as on March 31, 2009, the company has a robust capital base of Rs. 2000 crs.

Vision
To be a leader and role model in a broad based and integrated financial services business.

Mission
To help people mitigate risks of life, accident, health, and money at all stages and under all circumstancEnhance the financial future of our customers including enterprises

Values
Integrity Commitment Passion Seamlessness Speed

A US $28 billion corporation, the Aditya Birla Group is in the league of Fortune 500 worldwide. It is anchored by an extraordinary force of 100,000 employees, belonging to 25 different nationalities. The group operates in 25 countries across six continents truly India's first multinational corporation. Aditya Birla Group through Aditya Birla Financial Services Group (ABFSG), has a strong presence across various financial services verticals that include life insurance, fund management, distribution & wealth management, security based lending, insurance broking, private equity and retail broking. The seven companies representing ABFSG are Birla Sun Life Insurance Company, Birla Sun Life Asset Management Company, Birla Sun Life Distribution Company, Birla Global Finance Company, Birla Insurance Advisory & Broking Services, Aditya Birla Capital Advisors and Apollo Sindhoori Capital Investment. In FY 2008-09, the consolidated revenues of ABFSG from these businesses crossed Rs. 4763 crores, registering a growth rate of 36%.Sun Life Financial is a leading international financial services organisation providing a diverse range of protection and wealth accumulation

31

products and services to individuals and corporate customers. Chartered in 1865, Sun Life Financial and its partners today have operations in key markets worldwide, including Canada, the United States, the UnitedKingdom, Ireland, Hong Kong, the Philippines, Japan, Indonesia, India, China and Bermuda. As of December 31, 2008, the Sun Life Financial group of companies had total assets under management of $381 billion.

Board of Directors
Mr. Kumar Mangalam Birla Chairman, The Aditya Birla Group
Mr. Birla is a Chartered Accountant and has also earned an MBA (Masters in Business Administration) from the London Business School,London. He is the Chairman of the Aditya Birla Group, which is among India's largest business houses. Among its major companies in India are Grasim, Hindalco, UltraTech Cement, Aditya Birla Nuvo and Idea Cellular and globally Novelis, Minacs, Aditya Birla Minerals, Aditya Birla Chemicals. Its JV operations include Birla Sun Life Asset Management Company, Birla Sun Life Distribution Co. Ltd and Birla Sun Life Insurance Co. Ltd. The media has showered various accolades on him. Between 1997 to-date, India Today has named him among the top 5 in their "High and Mighty" Power List and The Economic Times among the top 10 most influential Leaders. The NDTV, Star Plus "India Business Week" designated him as "The Businessman of the Year". Global Finance has cited him among the 10 Super Stars of Corporate Finance. Business World ranked him among the top 10 of India's most admired and respected CEOs and the top CEO of the coming millennium, and Hindustan Times named him as "The Businessman of the Year" as well. He is also on the Board of various companies.

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Mr. Ajay Srinivasan Chief Executive Financial Services Aditya Birla Group
Mr. Srinivasan holds a Bachelor of Arts degree with Honours in Economics from St. Stephens College, University of Delhi and an MBA from the Indian Institute of Management, Ahmedabad. He is the Chief Executive, Financial Services and Director, Corporate Strategy and Business Development at the Aditya Birla Group since July 2007. In his role as Chief Executive, Financial Services, Aditya Birla Group, he sets the strategic direction and vision and provides operational leadership for the Groups Financial Services business. In his role as Director, Corporate Strategy and Business Development, he Directs and strategies on business portfolio issues for the Aditya Birla Group focusing on the long-term sustainability, profitability and value creation of the Groups businesses. Prior to joining the Aditya Birla Group, Mr. Ajay Srinivasan was associated with Prudential Corporation Asia, Threadneedle Asset Management, etc. at senior levels. With a proven track record for building successful businesses, his experience in the financial services industry spans almost two decades.

Mr. Bishwanath Puranmalka Director Financial Services Aditya Birla Group

Mr. Puranmalka is a commerce and law graduate and also a Fellow member of the Institute of Chartered Accountants of India and Institute of Company Secretaries of India. He is the Director of Aditya Birla Groups Financial Services and has a total working experience of more than 45 years. He has been associated with the Aditya Birla Group in various capacities since the inception of his career. He has a rich experience in implementation and running of several manufacturing, training, service industry business and setting up Greenfield manufacturing operations. He is on the Board of various companies.

33

Mr. Donald Stewart Chief Executive Officer Sun Life Financial

Mr. Donald A. Stewart graduated from the University of Glasgow in 1968 with first class honours in Natural Philosophy. He joined Sun Life Financial in 1969 in London, England, and qualified as a Fellow of the Institute of Actuaries in 1972. In 1974, he left the Company to pursue a career in benefits consulting, ultimately joining William M. Mercer in Toronto.Mr. Stewart rejoined Sun Life Financial in 1980 with overall responsibility for the Canadian pension division, where he led six years of rapid growth. In 1986, Mr. Stewart led the project team to launch the Companys Canadian mutual fund operation. From 1987 to 1992, Mr. Stewart held overall responsibility for information Technology at Sun Life Financial. During this period, he completed the Advanced Management Program at Harvard Business School. As Chief Executive Officer of Sun LifeFinancials trust operations from 1992 through 1995, Mr. Stewart restored profitability via re-structuring and re-engineering. In May 1995, Mr. Stewart was appointed Senior VicePresident & Chief Actuary. His appointment as President & Chief Operating Officer followed in 1996.Mr. Stewart was appointed Chief Executive Officer of the Company in April 1998. Then, in March 2000, he led the demutualization of Sun Life Assurance Company of Canada with the successful IPO of Sun Life Financial on the Toronto, New York and Philippine stock exchanges. He is a member of the Board of MFS Investment Management and Sun Life Assurance Company of Canada (U.S.).

Mr. Venkatesh Mysor Country Head India Sun Life Financial, Asia
Mr. Mysore holds a BA with Honours in Economics and an MBA from University of Madras. He also holds the professional designation of Chartered Life Underwriter (CLU) American College, Philadelphia, PA. He is the Vice-President and Country Head, India of Sun Life Financial-Asia since January, 2007. Prior to this, Mr. Mysore was the CEO & Managing Director of MetLife India. He was responsible for the start-up of the India

34

venture. Mr. Mysore spent over 21 years with MetLife. He immigrated to the U.S.A. in 1985 and joined MetLife as a sales representative. Since then, he held several positions of increasing responsibility within MetLife.

Mr. Mysore was the Chairman of The American Chamber of Commerce (AMCHAM) Bangalore Chapter for the year 2002 2003.
Several new members were inducted during his tenure. The AMCHAM invitational Golf Tournament was one of the many well-appreciated events rolled-out under his leadership. Other noteworthy contributions included arranging interactive sessions with key industry leaders and academicians as well as community and social drives. He was also a member of the Executive Committee of AMCHAM Bangalore. He is currently a member of the Young Presidents Organisation Mumbai Chapter.

Mr. Gian Gupta Mr. Gupta holds a Masters in Commerce from University of Delhi.
He is a director on the Board of the Company and is the independent director on the Board of Aditya Birla Nuvo Limited (holding company of BSLI). He is also a member of the Audit Committee, Finance Committee and Share Allotment Committee of the Company. Mr. Gian Prakash Gupta has been the former Chairman and Managing Director of Industrial Development Bank of India & Chairman of Unit Trust of India. He has wide and rich experience in Project Financing including Infrastructure projects, Capital Market, Financial Management and General Management. He is on the Board of various companies.

35

Mr. Stephan Rajotte President Sun Life Financial, Asia

Mr. Stephan Rajotte graduated (Actuarial Science) from University Laval, Quebec, Canada in the year 1982. He is a fellow member of the Society of Actuaries and the Canadian Institute of Actuaries. He has been in employment with various multinational companies at senior levels like ING, American International Assurance (AIG), Met Life International etc. He is associated as President with Sun Life Financial Asia since September 2006. He is responsible for the Asian Operations of Sun Life in the countries like India, Hong Kong, China, Philippines and Indonesia. He is on the Board of various companies.

Mr. Suresh Talwar

Mr. Talwar is a commerce graduate and has done his L.L.B. He practices as a solicitor. He is apartner of M/s Talwar, Thakore & Associates, alaw firm he has founded in partnership with Shobhan Thakore. He was also associated withM/s. Crawford Bayley & Company prior to hisforming his firm of Advocates. He also acts as alegal counsel to numerous Indian companies,multinational corporations, Indian & foreignbanks. His professional specialisation is incorporate law, corporate tax, foreign exchange laws, Monopolies & Restrictive Trade Practiceslaws, & international issue of securities byIndian companies. He also holds the directorship in several eminent public & private limited

36

PRODUCTS OF BIRLA SUN RIES LIFE INSURANCE

PRODUCTS
At Birla sun rise life Insurance, we offer a bouquet of insurance solutions to meet every need. We cater to both, individuals as well as to companies looking to provide benefits to their employees. This section gives you details of all our products. We have incorporated various downloadable forms and product details so that you can make an informed choice about buying a policy. For individuals, we have a range of protection, investment, pension and savings plans that assist and nurture dreams apart from providing protection. You can choose from a range of products to suit your life-stage and needs. For organisations we have a host of customised solutions that range from Group Term Insurance, Gratuity, Leave Encashment and Superannuation Products. These affordable plans apart from providing long term value to the employees help in enhancing goodwill of the company.

INDIVIDUAL PRODUCTS
We at Aviva Life realise that not everyone has the same kind of needs. Keeping this in mind, we have a varied range of Products that you can choose from to suit all your needs. These will help secure your future as well as the future of your family.

37

PROTECTION PLANS
You can protect your family against the loss of your income or the burden of a loan in the event of your unfortunate demise, disability or sickness. These plans offer valuable peace of mind at a small price. Our Protection range includes Term Assurance Plan Loan Cover Term Assurance Plan

INVESTMENT PLANS
Our investment products are well suited to meet your long-term needs. Our Investment range includes Single Premium Whole Of Life plan

RETIREMENT PLANS
Our Pension Plans help you secure your financial independence even after retirement. Our Pension range includes Personal Pension Plan Unit Linked Pension, Unit Linked Pension Plus Our Immediate Annuity plan will aid you in receiving income post retirement and securing you financial independence.

SAVINGS PLANS
Our Savings Plans offer you flexible options to build savings for your future needs such as buying a dream home or fulfilling your childrens immediate and future needs. Our Savings range includes Endowment Assurance Plan 38

Assurance Plan Savings Assurance Plan Childrens Plan Money Back Unit Linked Endowment Unit Linked Endowment Plus Unit Linked Endowment Suvidha

HEALTH PLANS
Our health plans provides you with timely support in case of any health related emergencies and helps you and your family to remain financially independent in difficult times.

GROUP PRODUCTS
One-stop shop for employee-benefit solutions
Birla sun rise Life has the most comprehensive list of products for progressive employers who wish to provide the best and most innovative employee benefit solutions to their employees. We offer different products for different needs of employers ranging from term insurance plans for pure protection to voluntary plans such as superannuation and leave encashment. We now offer the following group products to our esteemed corporate clients: Group Term Insurance Group Variable Term Insurance Group Unit-Linked Plan

An investment solution that provides funding vehicle to manage corpuses with Gratuity, Defined Benefit or Defined Contribution Superannuation or Leave Encashment schemes of your company

39

Also suitable for other employee benefit schemes such as salary saving schemes and wealth management schemes

SOCIAL PRODUCT Development Insurance Plan

Development Insurance plan is an insurance plan which provides life cover to members of a Development Agency for a term of one year. On the death of any member of the group insured during the year of cover, a lump sum is paid to that members beneficiaries to help meet some of the immediate financial needs following their loss.

Eligibility
Members of the development agency and their spouses with: Minimum age at the start of the policy 18 years last birthday Maximum age at the start of policy 50 years last birthday

Employees of the Development Agency are not eligible to join the group. The group to be covered is only eligible if it contains more than 500 members.

Premium Payments
The premium to be paid will be quoted per member in the group and will be the same for all members of the group. This section gives you all the details that you may require to pay your premium and make it a hassle free experience. Along with various premium payment options currently available to you, we have also drawn up a checklist of details that you will need in case you are paying through cheque or demand draft

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CHAPTER-3 RESEARCH METHODOLOGY

a. TYPE OF RESEARCH A research design is the specification of methods and procedures for acquiring the information needed to structure as to solve the problems. In this project research has taken research design as

Exploratory Research Method.

The following three methods in context of research design for such studies are talked about : The survey of concerning literature The experience survey It is the overall pattern / framework of the project that stimulates what information to be collected from which sources and what proceedings.

b.

SAMPLE SIZE STUDY

Based on the objective posed earlier, the resented selected area in Chennai in a purposive sampling proceeding method and the sample were selected based on Convenience Sampling Procedures. It is rather a colourful procedure in which the initial respondents are selected conveniently and additional respondents obtained from referral or by other information provided by initial respondents.

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c.

SAMPLE SIZE AND JUSTIFICATION

150 samples are selected from Kurukshetra, all respondents were contacted personally by the researcher and all the respondents have given all the details correctly and adequate for his project. It represents have given all the details correctly and adequate for his project. It represents the universe because the products which researcher has chosen for study. FMCG goods we have choose more samples for study to represent the universe so research sample sizes represent the universe.

d.

CONSTRUCTION OF QUESTIONNAIRE
Before constructing the research instrument the researcher being in the field and inevlance products also had discussion with the project guide and BRANCH Manager and other executive from Kotak Life Insurance Company to understand the problem Concerned. Apart from these personal discussions the researcher collected secondary data Pertaining for clarity and understanding. Based on this interaction the researcher formulated questionnaire and the same has been appended at the end.

e.

DATE COLLECTION PROCEDURE

The date collected has been coded in a meaningful manner. In the

questionnaire, there were areas in which qualitative responses asked for hence the researcher coded and analysed only the quantitative data and the quantitative data has been consolidated in a meaningful manner. The nature of the data collection is both. i. ii. i. Primary Secondary

Primary data : The primary data are those that are collected

through questionnaire and direct personal interview. The questionnaire was framed in such a manner to obtain correct information, graded suitably for the

42

study. All the questionnaire were collected through personal contact from the respondents. ii.

Secondary data : Secondary data has been collected through

oral communication. Secondary data about the company profile and other details were collected from the company website.

f.

FIELD WORK
The field work was about 45 days in the potential area as considered. The period was spread over with intervals from 15th June to 10th August depending upon certain external factors. g. OBJECTIVE OF THE STUDY

To know the limitation of BIRLA SUN RISE life insurance. To know the expectation of clients from BIRLA SUN RISE Life

Insurance. To know the awareness regarding BIRLA SUN RISE Life Insurance of

HNW clients. To get a chance to interact with clients by means of interviews

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CHAPTER-4 DATA ANALYSIS AND INTERPRETATION:

GRAPHS & TABLES

NO. OF PEOPLE HAVING LIFE INSURACE POLICY

44

NO. OF PEOPLE HAVING LIFE INSURANCE POLICY

250 200 NO. OF PERSON 150 100 50 0 having ins. no ins.

INS./NO INS. HAVING POLICY NO.OF PERSONS YES 220 NO 80

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NO OF PEOPLE HAVING LIFE INSURANCE POLICY OF BIRLA SUN RISE LIFE INSURANCE COMPANY

NO. OF PEOPLE HAVING LIFE INSURANCE POLICY OF AVIVA LIFE INSURANCE

COMPANY LIC HDFC AVIVA OTHERS

COMPANY PERCENTAGE

LIC 80%

HDFC 6%

BIRLA SUN RISE 10%

OTHERS 4%

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KNOWLEDGE ABOUT BIRLA SUN RISE LIFE INSURANCE COMPANY

KNOLEDGE ABOUT AVIVA LIFE INSURANCE

300 250 NO. OF PERSONS 200 150 100 50 0 YES/NO

KNOW ABOUT BIRLA SUN RISE LIFE INS. NO.OF PERSONS

YES 280

NO 20

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EXPLAINATION OF GRAPHS (A) TITLE:- LIFE INSURANCE POLICY This graph shows the number of person having the life insurance policy. (B) TITLE:- MARKET SHARE OF COMPANIES This graph shows the number of existing customers of different life insurance companies. (C) TITLE:- KNOWLEDGE OF BIRLA SUN RISE LIFE INSURANCE This graph shows the number of person having knowledge of BIRLA SUN RISE Life Insurance Company.

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CHAPTER-5 FINDINGS, LIMITATION AND SUGGESTION FINDINGS

1) Priority is given to insurance as an Investment as compared to Insurance as a career 2) Difficulty for people to get training in case they want to become the advisor and adopt insurance as a part time business specially in case of service class. 3) Lack of knowledge among the customers regarding the allocation of funds.

LIMITATIONS
The findings of this study are based on the subjective opinion of the respondents. Although utmost care was taken to get accurate results from the respondents, yet because of ambiguities and misinterpretations on the part of respondents, some element of inaccuracy might have crept in. Therefore, most of the studies based on the opinion survey from the studies limitations of possibility of what is recorded and what is truth. Apart form these; there are some other limitations also. 1 2 3 There were certain people who were not interested in providing any kind of information. Area of study was limited to Kurukshetra. The time span was less to conduct the study on a large scale.

49

SUGGESTIONS
1 Increasing the number of branches in rural and semi-urban areas. The co. should open its more and more branches in rural and semi-urban areas as these areas also cover the major chunk of population. 2 A plan with the lesser amount of premium should be introduced having features of lifetime or the minimum premium requirement of lifetime should be decreased. 3 Week end batches for training: As many people face difficulty in attending the 15 days training regularly, so there should be provision of attending the training at week ends and for that separate batches should be started. 4 Regular market surveys should be conducted so that the changing the needs of the customer can be known and changes can be made accordingly. 5 They should allocate more funds to the EQUITIES.(>78%).that help to increase in return in funds 6 Allocation charges to be decreased so that big investors can be tap. 7 Withdrawal charges should be decreased. So that investor can withdraw their money and got more fund value. 8 9 They should increase frequency of switching. Fund management charges should be decreased so that more funds can

be allocate.

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CHAPTER-6 LIMITATION OF THE STUDY

LIMITED TIME
The foremost limitation was time. Time was not sufficient for an in depth study of the given topic.

LIMITED SCOPE
The scope of the study was limited to Kurukshetra and near by areas only because of limited time and financial resources. So results of the study may not be generalized for India as a whole.

BIASNESS
Biasness on the parts of respondents cannot be ignored.

DIFFICULTY IN FETCHING DATA

It was not an easy task to fetch information from the respondents, as some of the respondents were not as open and forthcoming as the others.

51

CONCLUSION
After studying the insurance market, I realized following facts regarding lack of interest of Kotak life policies by HNW clients and these are:

Return is less as compare to other investments schemes: (Like FD's,

NSC's, KVP's, ULIP, etc.)

Lack of knowledge: (The agents that what the policy is actually do not
properly guide People? What are the benefits of particular policies? Which particular policy will suite to what particular customer? And so on, so, people afraid to invest in LIC's and simply invest their earnings into banks or Po's). Lack of time: (in this competitive era everybody is scheduled to no.

Of tasks so nobody has time to listen a single word from others due to which people ignore to know about these policies and as usual investing their maximum number of amount / earnings in banks or Po's). Trust: (people invest mostly in banks, post offices or even in LIC's

because they trust more in government instead of private sector). So these were the major facts why people are not adopting Kotak life policies. And I had concluded that approximately all of the HNW clients

to Invest where they will get maximum benefit or returns and it can be given by Kotak life if and only if they guide each and every HNW clients properly i.e. which policy is suitable for which client among the various plans/ policies I had discussed earlier so that they can invest in that particulars

52

policy or plan and can avail the maximum benefit they can .at last I just want to conclude that Kotak life insurance can also attract most of the HNW clients by guiding them properly and by assuring them properly that they are only & only for the customers here and not the customers are here for the company means they provide the maximum benefits to the customers what they can and will totally satisfy the customers as customer satisfaction is at the top for any organization . Lastly I had concluded that if HNW clients are being provided by the same benefits by government insurance policies or what they want from private insurance companies they will definitely adopt Kotak life insurance policies.

53

BIBLIOGRAPHY
Marketing Management by Philip Kotler (eleventh edition)

Published by Pearson education (Singapore) Pte. Ltd.

Research Methodology (methods and techniques) by C.R Kothari

Published by new age international(P) Ltd.

Business research methods by William G. Zikmund

Published by Thomson Pte. Ltd.

www.BIRLA SUN RISE life insurance.com www.google.com (search engine)

54

QUESTIONNAIRE
Personal Information

Name : Address : Phone no. : Age : Date of Birth : Education : Occupation :

__________________________ __________________________ __________________________ __________________________ __________________________ __________________________ __________________________

1.

What is your monthly family income? Rs.5000-10000 Rs.15000-25000 Rs.10000-15000 Rs.25000 to above

2. What are your near future liabilities? Child marriage Education any other please specify.

55

3. What is your most preferable investment area? Mutual funds FDs life insurance plan 4. Are you covered under Life Insurance? Yes No NSC/Post office schemes Share Market

5. Who influence you to go for policy? Friends Advertisement 6. Are you aware of Kotak life insurance co. ltd ? Yes No Family

7.

If yes, what are the sources? Electronic media Print media Agents Other

8.

Life insurance should be made compulsory for every individual? Agree Disagree

56

9.

Who is your insurer? LIC Private Company

10. Are you satisfied with the services of your insurance company (if you are insured )?

Satisfied

Neutral

Dissatisfied

11.

Do you perceive that government life insurance policies are much

more secured than their private counter parts? Yes No

12.

Are you in favor of privatization of insurance companies in India? Yes No

57

13. LIC?

How would you rate private insurance companies in comparison to

a.

Excellent

Good

Fair

Poor

14.

What factors will you consider while taking an insurance policy ? Trust of insurer Various obligations Convenience Bonus Tax benefits Premium Service Service Maturity Period

Cover

Returns

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15.

How do you consider KOTAK among its competitors if aware?

O A

D V E R A P G O E O R

16.

If you are being provided services by Private Sector at same rate like

government would you prefer to change? Yes No

17. Would you like to go with Insurance as a Financial Advisor or as an Investment Solution? As a Financial Advisor

As an Investment

59