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To obtain general awareness about the insurance sector To compare ULIP of ICICI with its competitors To do a study on customer perception about the various Insurance Companies

Descriptive Research is used for the study as it helps fact finding through surveys and enquiries. The data is collected through the primary source, which include questionnaires. Secondary data has been collected from internet web page, magazines, insurance related books, journals newspapers etc


The sources of data are primary and secondary data. PRIMARY DATA The primary data was collected through the questionnaire. SECONDARY DATA Secondary data was collected by: Browsing different website Referring various articles, reports, journals, magazines on insurance. Referring different books and previous project reports in college library.


A policy, which provides for life insurance where the policy value at any time varies according to the value of the underlying assets at the time. ULIP is life insurance solution that provides for the benefits of protection and flexibility in investment. The investment is denoted as units and is represented by the value that it has attained called as Net Asset Value (NAV).

Unit linked insurance plans

Units in funds

Underlying investment


ULIP distinguishes itself through the multiple benefits that it provides to the consumer. The plan is a one-stop solution providing:

Life protection Investment and Savings Flexibility - Adjustable Life Cover - Investment Options Transparency Options to take additional cover against - Death due to accident - Disability - Critical Illness

- Surgeries Liquidity Tax planning

The two strong arguments in favour of unit-linked plans are: Firstly, the investor knows exactly what is happening to his money Secondly it allows the investor to choose the assets into which he wants his funds invested. An investor in a ULIP knows how much he is paying towards mortality, management and administration charges. He also knows where the insurance company has invested his money. The investor gets exactly the same returns that the fund earns but he also bears the investment risk. The transparency makes the product more competitive. So if you are willing to bear the investment risks in order to generate a higher return on your retirement funds ULIPs are for you. Traditional with profits policies too invest in the market and generate the same returns prevailing in the market. But here the insurance company evens out returns to ensure that policyholders do not hold money in a bad year. In that sense they are safer. ULIPs also offer flexibility. For instance a policyholder can ask the insurance company to liquidate units in his account to meet to mortality charges if he is unable to pay any premium installment. This eats into savings but ensures that the policy will continue to cover his life. ULIP came into play in the 1960s and became very popular in Western Europe and Americas. The reason that is attributed to the wide spread popularity of ULIP is because of the transparency and the flexibility which it offers. Unit- linked plans are a contemporary product: transparent and flexible. Individuals have greater control over their investments. The popularity of ULIPS stems from the fact that they offer customers integrated financial solutions with a transparent charge structure. In todays times, ULIP provides solutions for insurance planning, financial needs, financial planning for childrens future and retirement planning. Unit-linked insurance plans (ULIPs) have become something of a rage with their 'promise' of market-linked returns combined with the dual benefit of insuring your life from eventualities.

Why do insurers prefer ULIPs?

Insurers love ULIPs for several reasons. Most important of all, insurers can sell these policies with lesser capital of their own than what would be required if they sold traditional policies. In traditional with profits policies the insurance company bears the investment risk to the extent of insured amount. In ULIPs the policyholder bears most of the investment risk. Since ULIPs are designed to mobilize savings, they give insurance companies an opportunity to get a large chunk of asset management business which has been traditionally dominated by mutual funds. ULIPs are suitable for individuals who are already adequately insured and are reasonably well-informed and savvy to take active investment decisions by using the `switch option' that is provided to a ULIP policyholder. Also policyholders with regular endowment plans who are not satisfied with the 4-6% returns can consider taking a ULIP with a lower equity component. It is best if insurance-seekers tread the middle path and choose balanced plans (with about 50-60% equity component). Ideally they need to avoid taking the aggressive 100% equity ULIP, which could needlessly expose their assets to market volatility. So if insurances-seekers/investors play their cards right, they can make this marriage work.

Unit Linked Insurance Plans of ICICI Prudential and its Competitors ICICI PRUDENTIAL Offering insurance plans with flexibility and tax benefits. The various options for the customers to invest in ULIP. ICICI Pru Life Stage RP : Offers a wide range opf benefits to policyholders , many of them are still not market savvy ICICI Pru Lifestage Assure: Offers a clear advantage by providing guaranteed returns (maturity additions) on the 1st year premiums. ICICI Pru LifeLink Super: Single premium unit linked investment cum Insurance plan. ICICI Pru LifeTime Gold :Regular premium unit linked plan & offers attractive additional allocation units at regular intervals ICICI Pru PremierLife Gold:Offers short term premium payment terms and policyholder with flexible investment options. provides

ULIPS OF BAJAJ ALLIANZ Market linked insurance plans invest the premium in to the equity, debt and cash markets by the way of allocating units, which like any other mutual fund have a NAV and the customer is free to switch between one fund class to another depending on the risk factor he wishes to be in. Bajaj Allianz Life Insurance has developed a number of ULIP products which range from single premium to a regular premium. Various plans are :

UNITGAIN PLUS GOLD A Unique plan with the combination of protection and prospects of earning attractive returns with investments in various mix of securities that makes a perfect plan to last you a lifetime of prosperity and happiness. High Allocation upto 85%.Guaranteed Life Cover with a choice of 7 Investment Funds. New Unit Gain Super New Unit Gain Plus New Unit Gain Single Premium New Unit Gain Premier Sp New Unit Gain Plus SP ULIPS OF LIC Unit plans are investment plans for those who realize the worth of hard-earned money. These plans help you see your savings yield rich benefits and help you save tax even if you dont have consistent income .Various plans are: Market Plus 1: This is a unit linked pension plan wherein the pension is payable after a specified period. Though primarily a pension product, the plan has many attractive features and options which make it an ideal retirement solution for the future. Profit Plus Fortune Plus Money Plus ULIPS OF RELIANCE LIFE INSURANCE The plan allows you to experience the joys of life and provide for your familys needs. Various plans are: Reliance Premier Life Under this plan the investment risk in the investment portfolio is borne by the policyholder. This is a regular premium, unit linked savings plan. The plan offers the twin benefit of insurance cover along with savings, by investing in market linked securities. Reliance Super Invest assure Plan Reliance Wealth + Health Plan

Reliance Cash Flow Plan