LOVELY PROFESSIONAL UNIVERSITY DEPARTMENT OF MANAGEMENT Report on Summer Training

Insurance as an investment tool with regards to ULIPS Submitted to Lovely Professional University In partial fulfillment of the Requirements for the award of Degree of Masters in Business Administration DEPARTMENT OF MANAGEMENT LOVELY PROFESSIONAL UNIVERSITY JALANDHAR NEW DELHI GT ROAD PHAGWARA PUNJAB

1|Page

CERTIFICATE BY THE PROJECT INCHARGE I hereby declare that the project work entitledInsurance as an investment tool with regards to ULIPS is an authentic record of my own work carried out at ICICI Prudential Life Insurance Company Ltd, Phagwara as requirements of Summer Internship Project for the award of degree of MBA, Lovely Professional University, Phagwara, under the guidance of Ms Gurpreet kaur during the period of 28th May, 2013 13th July, 2013.

Date: 3 August, 2013 I certified that the above statements made by the student are correct to the best of our knowledge and belief

Ms Gurpreet kaur (Faculty Coordinator)

2|Page

ACKNOWLEDGEMENT

This report is the result of continuous effort made and extended by many people. This report would not have been successful without the kind support from many people. I would first like to thank Lovely Professional University, Department of Management for designing a platform where we can gain not only theoretical knowledge but also practical knowledge. I would like to express my deep gratitude to Mr.Jaswinder Singh Sandhu, Area Sales Manager, for providing me with the opportunity to undergo my internship in ICICI Prudential Life Insurance Company Ltd, Phagwara. I would also like to thank Ms. Gurpreet Kaur, Lecturer, LPU for guiding and helping me in each and every stage of the Project, whose help, suggestions and encouragement helped me in writing this Project Report. I specifically would like to express my heartiest thank to all the staff members of ICICI Prudential Life Insurance Company Ltd, Phagwara for their cooperation and their help during the internship as well as in the project. This project would not have been possible without their patience, time and support.

3|Page

Table of contents
Titles 1. Chapter I - Executive summary - Introduction to the topic - Introduction of the company Page No

6 7-19 20-24

2.

Chapter 2 - Literature review

26-29

3.

4.

Chapter 3 - Purpose of the study - Scope of the study - Objective of the project Chapter 4

31 31 31 33-34 35-49

Research methodology Data analysis and Interpretation

5.

Chapter -5

Observations Recommendations Conclusion Questionnaire Bibliography

51-52 52-52 53 55-58 59-60

Chapter - 6

4|Page

EXECUTIVE SUMMARY INTRODUCTION TO THE TOPIC INTRODUCTION OF THE COMPANY

5|Page

EXECUTIVE SUMMARY This summer training report has been prepared as a partial fulfillment of the Masters in Business Administration of Lovely Professional University, Department of Management. The training was undertaken in the Insurance sector so as to get an insight and understanding into the same industry and also to pursue the prospect of a career. ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premier financial powerhouse and prudential plc, a leading international financial services group headquartered in the United Kingdom. ICICI Prudential was amongst the first private sector insurance companies to begin operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA). As the people are becoming more and more and aware of their Life Style and Income level. They need a plan, which has an optimum balance between their Investment and Savings. They require an integrated financial plan for investment. The customer requires those investment options, which provide them with flexibility and Liquidity and tax benefit. I found out tools relates to investment in ULIP at ICICI Prudential life insurance. This project emphasis on Insurance as an investment tool with regards to ULIP at ICICI Prudential Life Insurance Company Ltd Phagwara.

6|Page

PART ONE: INTRODUCTION Insurance: Definition and Meaning

Functional definition: In the words of R.S.Sharma Insurance is a Co-operative devices to spread the loss caused by particular risk over a number of persons who were exposed to it and who agree top insure themselves against the risk Contractual Definition: According to E.W.Patterson, Insurance is a contract by which one party, for a consideration called a premium, assures a particular risk of other party ad promises to pay to him or his nominee a certain or ascertainable sum of money on a specified contingency. According to the U.S Life Office Management Association Inc (LOMA), Life Insurance is defined as follows: Life insurance provides a sum of money if the person who is insured dies whilst the policy is in effect. Other terms used in relation to insurance and their meaning: Agent: The authorized representative of the insurer, licensed by the concerned authorities like IRDA to canvass insurance. Bonus: The yearly share of policy holders profit declared by the company based on its profits which gets added to the policy amount and is payable upon its maturity. Claim: The amount entitled to the policy holder or his nominee/assignee under a policy contract in the event of the happening of the contingency insured against. Insurable Interest: Evidence suggesting financial losses due to the occurrence of the event insured against. Policy: The evidence of contract between the insurer and the insured. A stamped sealed and signed document issued by the insurer to the insured in proof of insuring his life.

7|Page

Premium: The amount mentioned in the policy contract to be paid by the insurer periodically to the insure to keep the policy in full force. INTRODUCTION ABOUT ULIP: The concept of ULIP came in to existence in 1960s to provide an optimum balance between protection and investment. ULIP distinguishes itself through the multiple benefits it provides to the policyholders. These plans are designed with a view to help the customers to utilize the market opportunities by investing in the share market, capital market and at the same time have the facility of Death Benefit and Maturity Benefit. Unit-linked life insurance products are those where the benefits are expressed in terms of number of units and unit price. They can be viewed as a combination of insurance and mutual funds. The number of units that a customer would get would depend on the unit price when he pays his premium. The daily unit price is based on the market value of the underlying assets (equities, bonds, government securities, etc) and computed from the net asset value. The advantage of unit-linked plans is that they are simple, clear, and easy to understand. Being transparent the policyholder gets the entire upside on the performance of his fund. Besides all the advantages they offer to the customers, unit-linked plans also lead to an efficient utilization of capital. Unit-linked products are exempted from tax and they provide life insurance. Investors welcome these products as they provide capital appreciation even as the yields on government securities have fallen below 6 per cent, which has made the insurers slash payouts. According to the IRDA, a company offering unit-linked plans must give the investor an option to choose among debt, balanced and equity funds. If you choose a debt plan, the majority of your premiums will get invested in debt securities majority of your premiums will get invested in debt securities like gilts and bonds. If you choose equity, then a major portion of your premiums will be invested in the equity market. The plan you choose would depend on your risk profile and your investment need. The ideal time to buy a unit-linked plan is when one can expect long-term growth ahead. This is especially so if one also believes that current market values (stock valuations) are relatively low. So if you are opting for a plan that invests primarily in equity, the buzzing market could lead to windfall returns. If one invests in a unit-linked
8|Page

pension plan early on, say when one is 25, one can afford to take the risk associated with equities, at least in the plan's initial stages. However, as one approaches retirement the quantum of returns should be subordinated to capital preservation. At this stage, investing in a plan that has an equity tilt may not be a good idea. Considering that unit-linked plans are relatively new launches, their short history does not permit an assessment of how they will perform in different phases of the stock market. Even if one views insurance as a long-term commitment, investments based on performance over such a short time span may not be appropriate. Simply put ULIPs work very similar to a mutual fund with a life cover thrown in. They have a mandate to invest the premiums in varying proportions in gsecs (government securities), bonds, the money markets (call money) and equities. The primary difference between conventional savings-based insurance plans like endowment and ULIPs is the investment mandate- while ULIPs can invest up to 100% of the premium in equities, the percentage is much lower (usually not more than 15%) in case of conventional insurance plans. ULIPs are also available in multiple options like `aggressive' ULIPs (which can invest up to 100% in equities), `balanced' ULIPs (which invest 40-60% in equities) and `debt' ULIPs (which invest only in debt and money market instruments). The exact expense structure/ break-up for ULIPs is as transparent as one would have liked. Broadly speaking, ULIP expenses are classified into three major categories: 1. Mortality charges: Mortality expenses are charged by life insurance companies for providing a life cover to the individual. The expenses vary with the age, sum assured and sum-at-risk for the individual. There is a direct relation between the mortality expenses and the above mentioned factors. In a ULIP, the sum-at-risk is an important reference point for the insurance company. Put simply, the sum-at-risk is the difference between the sum assured and the investment value the individual's corpus as on a specified date. 2. Sales and administration charges: Insurance companies incur these expenses for operational purposes on a regular basis. The expenses are recovered from the premiums that individuals pay towards their

9|Page

insurance policies. Agent commissions, sales and marketing expenses and the overhead costs incurred to run the insurance business on a day-to-day basis are examples of such expenses. 3. Fund Management Charges: These charges are levied by the insurance company to meet the expenses incurred on managing the ULIP investments. A portion of ULIP premiums are invested in equities, bonds, gsecs and money market instruments. Managing these investments incurs a fund management charge, similar to what mutual funds incur on their investments. FMCs differ across investment options like aggressive, balanced and debt ULIPs; usually a higher equity option translates into higher FMC. Apart from the three expense categories mentioned above, individuals may also have to incur certain expenses, which are primarily `optional' in nature- the expenses will be incurred if certain choices that are made available to individuals are exercised. 4. Switching Charges: Individuals are allowed to switch their ULIP options. For example, an individual can switch his fund money from 100% equities to a balanced portfolio, which has say, 60% equities and 40% debt. However, the company may charge him a fee for `switching'. While most life insurance companies allow a certain number of free switches annually, a switch made over and above this number is charged. 5. Top Up Charges: ULIPs allow individuals to invest a top-up amount. Top-up amount is paid in addition to the premium amount for a particular year. Insurance companies deduct a certain percentage from the top-up amount as charges. These charges are usually lower than the regular charges that are deducted from the annual premium. 6. Cancellation Charges: Life insurance companies levy cancellation charges if individuals decide to surrender their policies (usually) before three years. These charges are levied as a percentage of the fund value on a particular date.

10 | P a g e

Investment tools of unit linked insurance plans: FUND NAME ASSEET AND ITS ALLOCATION OBJECTIVES MIN. MAX. POTENTIAL RISKREWARD

R.I.C.H: Returns Equity and equity 80% from equity related securities investment in four money types of industries, Debt, 0% viz, resources, market, and cash. investment/capital goods, consumption and human capital leveraged. Flexi growth II: Equity and equity 80% Long term returns related securities from an equity money portfolio of large, Debt, 0% market, and cash. mid and small capital companies. Multiplier II: Long Equity and equity 80% term capital related securities appreciation from Debt, money equity portfolio. 0% market, and cash

100% High 20%

100% High 20%

100% High 20%

Flexi Balanced II: Equity and equity 0% Balance of capital related securities appreciation and money stable returns from Debt, 40% an equity (large, market, and cash mid and small capital) and debt portfolio.

60% Moderate 100%

11 | P a g e

Balancer II: Equity and equity 0% Balance growth related securities and steady returns money from an equity and Debt, 60% market, and cash debt portfolio. Protector II: Debt insurance, Accumulate steady money market, and 100% income at a lower cash risk

40% Moderate 100%

100%

Low

Types of ULIPS
One of the big advantages that a ULIP offers is that whatever be your specific financial objective, chances are that there is a ULIP which is just right for you. The figure below gives a general guide to the different goals that people have at various age-groups and thus, various lifestages. Depending on your specific life-stage and the corresponding goal, there is a ULIP which can help you plan for it. ULIPs for retirement planning Retirement is the end of active employment and brings with it the cessation of regular income. Today an increasing number of people have stated planning for their retirement for below mentioned reasons:

Almost 96% of the working population has no formal provisions for retirement With the growing nuclearisation of family structure, traditional support system of the younger earning members is no longer available

Developments in the healthcare space has lead to an increase in life expectancy Cost of living is increasing at an alarming rate Pension plans can accumulate over a period of time to provide a steady income post-retirement. Usually all retirement plans have two distinctive phases

The accumulation phase when you are saving and investing during your earning years to build up a retirement corpus and

12 | P a g e

The withdrawal phase when you actually reap the benefits of your investment as your annuity payouts begin In a typical pension plan you have the flexibility to make a lump sum payment or a regular contribution every year during your earning years. Your money is then invested in funds of your choice. You can opt to receive the annuity at any time after vesting age (age at which you become eligible for pension chosen by you at the inception of the plan).

Most of the Unit linked pension plans also come with a wide range of annuity options which gives you choice in structuring the post-retirement benefit pay-outs. Also at the time of vesting you can make a lump sum tax-exempted withdrawal of up to 33 per cent of the accumulated corpus. In a Retirement plan, the earlier you begin the greater you gain post retirement due to the power of compounding. Let us take an example of Gaurav&Hari. Both of them want to retire at the age of 60. Gaurav starts investing Rs. 10,000 every year from the age of 25 till the time that he retires. In all, he would have invested Rs. 350,000. If his investments were to earn 7% return every year, at the time of his retirement, Gaurav will have a retirement corpus of Rs. 13, 82,368. Now, Hari starts investing 10 years later (i.e. at the age of 35) and in order to make up for the lost time, invests Rs.15,000 every year (which is 50% more than Gaurav's annual investment). So, by the time of his retirement, he would have invested Rs. 3,75,000. And assuming the same annual return of 7%, he will end up with a retirement corpus of Rs 9, 48,735.

So, you see how despite setting aside more than 50% of Gaurav's annual contribution, Hari ends up with a retirement corpus which is almost a third lesser than Gaurav's. That is the power of compounding. Which is why, it is never too early to invest in a ULIP for retirement planning.
13 | P a g e

ULIPs for long term wealth creation ULIPs are the right insurance solutions for you if you are looking for a strong wealth creation proposition allied to a core insurance benefit. Such plans are ideal for people who are in their late 20s and early 30s and by investing in such a plan get the flexibility of using it to fund any of their long-term financial goals such as purchase of a house or funding their children's education. The added element of life cover serves to make these plans a wholesome financial investment option. Wealth Creation ULIPs can be primarily classified as:

Single premium - Regular premium plan: Depending upon you needs & premium paying capacity you can either opt for a single premium plan where you need to pay premium only once during the term of entire policy or regular premium plans where you can premium at a frequency chosen by you depending upon your convenience

Guarantee plans - Non guarantee plans: Today there is wealth creation ULIPS which also offer guaranteed benefit. These plans are ideal insurance-cum-investment option for customers who want to enjoy the potentially higher returns (over the long term) of a market linked instrument, but without taking any market risk. On the other hand non guarantee plans comes with an in - built range of fund options to choose from ranging from aggressive funds (Primarily invested in equities with the general aim of capital appreciation) to conservative funds (invested in cash, bank deposits and money market instruments with aim of capital preservation) so that you can decide to invest your money in line with your market outlook, time horizon and your investment preferences and needs. ULIPs for child education One of the most important responsibilities you have as a parent is to ensure that your child gets the best possible education that can be provided. Apart from conventional schooling, it becomes important to expose your child to different activities such as dance, painting and sports training for holistic development. As a parent, you want to ensure that their development is not hampered either due to rising costs or unforeseen circumstances.

Today there are ULIPs that offer money at key milestones of your child's education thus ensuring
14 | P a g e

that your child's education continues unhampered even if something unfortunate happens to you. While, the death of a parent is an irreparable emotional loss, child education plans safeguard the child against the financial ramifications of the death of a parent.

Apart from above mentioned benefit, child plans also offers below mentioned features.

Flexibility of adding on various riders like Income benefit rider, disability rider etc to get additional benefits .For e.g. In case of income benefit rider, In the event of the death of the parent, the child will receive a regular pre-determined amount every year to meet the educational expenses.

In case of unfortunate incidence of the death of a parent, not only will the child receive the sum assured immediately but will also continue to receive money at the key educational milestones.

ULIPs for health solutions When you are young and working you save for various goals like marriage, education, retirement etc. but saving for health care is never considered or left for later. During these years we have various sources of income or savings on which we can rely for health emergencies. But with increasing cost of healthcare, proportion of this spend is increasing at an alarming pace. This is forcing families to borrow or sell assets to meet expenses during medical emergencies. And during old age health care expenses increase due to health deterioration because of age and higher incidence of chronic illness. Thus it is important for you to invest in health insurance today so that tomorrow you are fully prepared to meet rising healthcare expenses, which would be incurred during old age, with the right health insurance plan.

Health ULIP is a recent innovation from the health insurance industry. In a health ULIP part of your premiums are allocated for investment designed specifically to build a health fund to meet future health related expenses. It aims to create a health savings kitty by investing in a long term flexible savings plan with multiple fund options. The health fund thus created allows you to claim for health related expenses of any kind and also fund your future health insurance charges. You can also avail of tax benefit on premium paid u/s 80D. One of the big advantages that a ULIP offers is that whatever be your specific financial objective, chances are that there is a ULIP which is just right for you. The figure below gives a
15 | P a g e

general guide to the different goals that people have at various age-groups and thus, various lifestages.

The ULIP edge ULIPs are dynamic plans and are flexible by nature and hence allow for changes and high degree of customization in the plan as opposed to most of the financial plans which once purchased cannot be modified. It is because of embedded characteristics of transparency, flexibility, liquidity & goal based savings that ULIPs have emerged as preferred investment option today. The following subsections will not only help you to understand various attributes of ULIPs but also guide you to use these features to manage your policy. Flexibility

Flexibility to change your life cover: ULIPs give you the flexibility to choose your sum assured (insurance cover) at the time of policy inception. Moreover, some ULIPs allow you to increase your sum assured over the term of the plan. This is crucial as your protection needs keep on changing with time .Typically, greater the financial liabilities you have such as repayment of a home loan, greater will be your need for protection.

Flexibility to change premium amount: With ULIPs you can easily change premium amount as most ULIPs provide you the option to increase or reduce premiums after a certain period of time to match your premium paying capability. Another distinguishing feature of ULIP is Top up which is an additional contribution over & above regular premium so that if you receive extra money today you can invest the amount in your policy & maximize your investment gains.

Flexibility to opt for a rider: ULIPs also enable you to customize the policy with optional riders to enjoy additional protection. Riders are additional or supplementary benefits that are bought along with the main insurance policy. Some of the commonly offered riders by most insurance companies are critical illness benefit rider, accident & disability benefit rider, waiver of premium rider etc. For ex. a critical illness rider cover major critical illnesses like heart attack etc. In case of contracting any of the above illness, the insurance company pays the insured amount.

16 | P a g e

Flexibility to choose your fund option : Most of the ULIPs come with an in - built range of fund options to choose from -ranging from aggressive funds to conservative funds so that you can decide to invest your money in line with your investment preferences and needs. What's more, ULIPs even come with the option of switching between different fund options so that you are able to reap maximum benefits from your investments.

Transparency One of the key advantages that ULIPs offer is complete transparency which makes the working of a ULIP abundantly clear to the investor. Thus, you are empowered to make informed decisions on how to best use your ULIP.

Benefit Illustration: As a customer it is your right to ask for a sales benefit illustration. Sales benefit illustration will help you understand how premium paid by you is utilized & what are the charges deducted year by year, by the insurance company for the term of the plan . It will also illustrate how your policy will grow in accordance with the chosen sum assured & premium. In fact IRDA has mandated that all insurance companies use two scenarios with 6 % & 10 % return rate to depict future returns.

Brochures and key feature documents: While benefit Illustrations play a significant role in explaining the quantitative aspects of ULIPs, it is also important for you to know the other features and benefits which the ULIP offers. All insurance companies come out with brochures for prospective customers to go through & understand the plan thoroughly. You should ask your insurance advisor to provide brochure of the ULIP you intend to purchase. Once a policy gets issued, your insurer will send you a key feature document capturing all the essential features of the plan. This is to ensure complete comprehension of the plan purchased.

Free-look period: ULIPs also offer you a distinct feature that no other financial product offers as of now. It is called Free-look period which is a 15 day window during which you can close the policy & get paid back the entire premium less charge borne by company in issuing the policy in case you are unhappy with the product.

17 | P a g e

Net Asset Value: It is critical that you monitor the performance of your policy on a regular basis. This will help you ascertain whether you are on right financial track or not. To help you do so all life insurance companies publish the NAV of different fund options on their website on a daily basis so that you can track the performance of your policy on a regular basis. This will also help you make informed decisions when it comes to comparing fund performances.

Goal Based Savings Everyone needs to save for their important life goals. One of the prudent ways to do so is by investing in ULIPs which are long-term systematic investment options designed to address key financial goals. ULIPs help you cultivate a disciplined savings pattern which ensures that the money being set aside will go towards the fulfillment of the specific objective. In the absence of such a focused approach, there is a high possibility of savings towards one objective getting utilized for an immediate short-term requirement, thus jeopardizing the long-term goal.

Tax Benefits ULIPs are an efficient tax saving instrument too .The tax benefits that you can avail in case you invest in ULIPs are described below:

Life insurance plans are eligible for deduction under Sec. 80C Health insurance plans are eligible for deduction under Sec. 80C Life insurance plans and critical illness riders are eligible for deduction under Sec. 80D The maturity proceeds or withdrawals of life insurance policies are exempt under Sec 10(10D), subject to norms prescribed in that section.

18 | P a g e

ULIP BENEFITS

APPLICABLE CHARGES

RIDERS: Riders are additional or supplementary benefits that are bought along with a main life insurance plan. Some of the commonly offered Insurance companies levy rider charges in case riders are critical illness benefit rider, accident & you opt for riders. disability benefit rider, waiver of premium rider etc. For ex. In case you opt for a Critical illness rider you get additional protection from 9 critical illnesses. SWITCH: ULIPs not only allow you to invest your money in fund options with various debt equity exposure but also give you the option to switch between different funds. For example, you can switch money from a fund with 100% equity to a balanced portfolio, which has 60 per cent equity and 40 per cent debt. Your insurance company may charge you a fee for switching your funds Generally only a limited number of fund switches are recommended in a year as a ULIP is a long-term investment tool therefore most of the companies allow a certain number of switches each year free of charge, with subsequent switches, subject to a minimal charge.

Insurance companies deduct a certain percentage TOP UP: One of the unique feature offered by ULIP from the top-up amount as charges. These is Top Up where you can make additional charges are usually lower than the regular charges that are deducted from the annual contribution over & above the regular premium. premium. Surrender charge may be deducted for premature partial or full encashment of units SURRENDER: You may decide to surrender wherever applicable, as mentioned in the policy (premature partial or full encashment of units) your conditions. These charges are levied as a policy before the term of the plan. percentage of the fund value or as a percentage of the premium.

19 | P a g e

1.2 Company Profile:

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premier financial powerhouse and prudential plc, a leading international financial services group headquartered in the United Kingdom. ICICI Prudential was amongst the first private sector insurance companies to begin operations in December 2000 after receiving approval from Insurance Vision: To be the dominant Life and Pension player built on trust by world class people and service. This they hope to achieve by: Understanding the needs of customers and offering them superior products and service Leveraging technology service customers quickly, efficiently and conveniently Developing and implementing super risk management and investment strategies to offer sustainable and stable returns to their policyholders Providing an enabling environment to foster growth and learning for their employees And above all, building transparency in all their dealings. Regulatory Development Authority (IRDA).

Values: Customer First: Own Customer; deliver the promise o Keep customer interest in the centre of all decisions. o Promise what you can, deliver it to finish. o Proactively seek Voice of Customer and act on it. Boundary less: Never say Its not my job o Offer help and support across functions to ensure business success. o Seek and share ideas freely o Recognize and respect internal customers. o Understand and value contributions from colleagues. Ownership: If it is to be, it is up to me o Take responsibility and see tasks through to completion.
20 | P a g e

o Own mistakes, learn from mistakes. o Pursue goals relentlessly, never give up. o Be a team player, take ownership for team performance. Passion: Boundless energy and enthusiasm o Exhibit Winning Instinct. o Demonstrate speed and urgency for achieving results. o Challenge status quo and do things differently. o Nurture and motivate team members to reach full potential. Integrity: Be honest and fair in what you say and do o Practice what you preach o Stand up honestly and fearlessly for what is right o Act in a consistent and equitable manner o Think and act for long term impact.

ICICI Prudential Life Insurance ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, which is one of India's foremost financial services companies, and Prudential plc, which is a leading international financial services group headquartered in the United Kingdom. ICICI Prudential began the operations in December 2000. Today, this company has over 2100 branches, which include 1,116 micro-offices, over 290,000 advisors and 18 banc assurance partners. ICICI Prudential Life Insurance Company is the first life insurer in India that received a National Insurer Financial Strength rating of AAA (Ind) from Fitch ratings. ICICI Prudential has been voted as India's Most Trusted Private Life Insurer for three consecutive years. ICICI Prudential Life Insurance Company has various insurance plans that have been designed for different individuals, as every individual has different insurance needs.

21 | P a g e

Management Profile:
Directors K. V. Kamath, Chairman Mark Norbom Lalita D. Gupte KalpanaMorparia ChandaKochhar H. T. Phong M. P. Modi SandeepBatra R. Narayanan KekiDadiseth Shikha Sharma, Managing Director N. S. Kannan, Executive Director Governance Committee Puneet Nanda Investment Committee Lalita D. Gupte, Chairperson H. T. Phong Shikha Sharma N. S. Kannan V. Rajagopalan

SandeepBatra, Chief Financial Officer & Company Lalita D. Gupte Secretary H. T. Phong Shikha Sharma

22 | P a g e

Risk Management & Audit Committee M. P. Modi, Chairman H. T. Phong KalpanaMorparia

Executive Committee Shikha Sharma N. S. Kannan V. Rajagopalan

PROMOTERS
ICICI Bank Limited (NYSE:IBN) is India's largest private sector bank and the second largest bank in the country with consolidated total assets of about US$ 95 billion as of March 31, 2009. ICICI Banks subsidiaries include Indias leading private sector insurance companies and among its largest securities brokerage firms, mutual funds and private equity firms. ICICI Banks presence currently spans 19 countries, including India.

Prudential Established in London in 1848, prudential plc is a leading internal retail financial services group with significant operations in Asia, the US and the UK. Prudential has been writing protection and savings insurance for over 160 years, and today has more than 21 million customers worldwide and over 249 billion in assets under management (as of December 31, 2008). In Asia, Prudential is the leading Europe-based life insurer with operations in China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand, and Vietnam. Prudential is one of the largest asset management companies in terms of overall assets sourced in Asia ex-Japan, with 36.8 billion funds under management (as of December 31, 2008) and operations in ten markets including China, Hong Kong, India, Japan, Korea, Malaysia, Singapore, Taiwan, Vietnam and United Arab Emirates.

23 | P a g e

Organizational Structure

CHAIRM AN CEO & MD

ZONAL MANAGER

TERRITORY MANAGERS

BRANCH MANAGER

SALES MANAGER

UNIT MANAGERS

AGENCY MANAGER

S. AGENCY MANAGER

24 | P a g e

25 | P a g e

LITERATURE REVIEW

Mihir Dash along with Lalremtluangic C, Snimer Atwal and Supriya Thapar in their paper titled, A study on risk-return characteristics of life insurance policies observe that endowment plans have higher rate of return with mortality incorporated, while for unitlinked investment plans, the rate of return is higher when it is treated purely as an investment instrument. Achintya Mandal (2008-09) in his paper, Overview of Indian Insurance market in postliberalization era growing challenges and opportunities and the Fight for FDI. The opening up of insurance sector in 2000 allowed private players into the market. The foreign players could also enter the market with limit of 26% on direct ownership. The aggressive marketing strategies adopted by the private and foreign players have expanded the market for insurance. As a result of this even though the share of PSUs is larger than their private counterparts, the percentage of market share is coming down.

News release by Swiss Re Sigma study (2003) on Unit linked life insurance in Western
Europe regaining momentum said that the surge in equity market helped to provide good returns as a result of which ULIP became popular investment tools during 1990s. The share of unit linked business grew from 21% to 36% between 1997 and 2001. Falling markets reduced the demand for ULIP in 2002 but the introduction of capital protection features helped them to the path of recovery. Karuna K (2009) in her article appearing in Insurance Chronicle titled Relevance of ULIPs as a good investment tool observes that traditional life insurance plans offered by LIC took care of only the insurance needs of people. However, with the ever changing demands of customers a new product called ULIP was launched which combines the benefits of insurance, investment and tax benefits. It observed that ULIPs are better suited to investors who have 15-20 years as their time horizon. This helps to spread the expense over the longer period and reap the benefit.

26 | P a g e

 Prabakar (2010) in his article Govt's ULIP ruling to hit MFs hard has remarked that Government's decision to treat unit-linked insurance products (ULIPs) as insurance instruments and allow them to be regulated by Insurance Regulatory and Development Authority of India (IRDA) will boost the growth of ULIPs. But, equity-oriented mutual funds, which are governed by the Securities and Exchange board of India (Sebi), will be affected adversely because of the stiff regulation on the payment of commission to sales agents.

Subramanyam (2010) in his article NFOs make hay after Sebi bars insurers from launching Ulips has remarked that New fund offers, or NFOs, by mutual funds have seen a resurgence after the capital market regulator banned life insurance companies from launching new unit-linked insurance plans (Ulips).

Shah (2010) in his article Finance ministry to call the shots on turf wars has remarked that the finance ministry made it clear that it will call the shots on turf wars between financial sector regulators through a Bill introduced in Parliament on Tuesday. But fresh doubts have arisen about what the law ministry had earlier said on which regulator should be in charge of Ulips (unit-linked insurance plans) The Securities and Insurance Laws (Amendment and Validation) Bill, 2010, moved by finance minister Pranab Mukherjee in the LokSabha, includes a couple of changes to the 18 June ordinance settling the turf war over Ulips. The Bill also stuck to the ordinances line that Ulips would be supervised by the insurance regulator, the Insurance Regulatory and Development Authority (Irda).

Khurana (2009) conducted a survey on An Empirical Study on ULIPs of Selected Private Sector Life Insurance Companies has remarked thatin his study he concluded that the pension plans of ICICI Prudential are most reasonable as far as charges in different ULIPs are concerned. The performance of HDFC SL Unit Linked Plans is better

27 | P a g e

than other plans. The difference between the performances of pension plans of selected companies is not much significant. Also, the performance of pension funds does not differ significantly from their benchmarks. Prasad (2009) in his study on ULIP- The Tasters Perception on the Mixed Bag of Fruits concluded that Majority of investors prefer insurance as an investment for mitigating the future risk. They are interested in ULIPs as they offer fund o options and flexibility. The variables affecting the choice for ULIP products are correlated and they are fund management charges, reliability of insurer, insurance coverage charges. Demographic factors also have significant impact over the level of investment in ULIPs. Also, agents are the most preferred channels of distribution of insurance policies. Ohio (2009) explore in his article Indian Insurance Industry has remarked that Insurance is the subject matter of solicitation has little relevance to non life insurance products, primarily because, customers have no ambiguity about the product being insurance, and hence scope for misleading information by solicitors. These disclosure regulations may not be construed as detrimental to marketability of insurance products or to be taking the tone of disclaimers. It is in the best interest of insurers and intermediaries to follow these norms voluntarily rather than under compulsion of regulations Soni(2009) in his article ULIP and investment instruments has analyzed that All investment instruments have their unique set of advantages to offer. It is vital for respondents to be aware of the nuances in a particular offering and make informed decisions. When investing in a Unit Linked Insurance Plan, popularly called ULIP, it is to be borne in mind that ULIPs being a market linked instrument will fetch good returns on a long term basis. The basic advantage of a ULIP over other investment instruments is that it offers the twin benefits of life insurance as well as an investment. Kumar (2008) in his article Bancassurance in India: Issues & Implications has remarked that With the opening up of insurance sector and so many players entering in the insurance industry it is required by the insurance company to come up with well established infrastructure facilities with good call centre service to attract and provide
28 | P a g e

information to customers regarding different good policies and their premium pay scheme. The size of country, a diverse set of people combined with problems of connectivity in the rural areas, Makes insurance selling in India is a very difficult task. Life insurance companies require good distribution strength and tremendous man power to reach out such a huge customer base. Nagpal (2000) in his paper titled Psychology of Investments and Investors Preferences founded that every individual investor must follow three principles of investing. Using a long-term investing approach, following the right strategy to maximize the return on investment and proper allocation of investible funds. While applying these three principles, an individual investor has to confront his/her demographics, lifestyle and investment psychology. The knowledge of all these aspects is imperative academicians,

for all progressive investors, researchers, financial students and the marketer of the financial products.

consultants,

Sung & Hanna (1996) in their study titled Factors Related to Risk Tolerance, analyzed that Education is also a factor that is thought to increase a persons capacity to evaluate risks inherent to the Investment Process & therefore endow them with a higher financial risk tolerance. However, he derives a model that suggests an element of circularity in this argument, as the relative risk aversion of an Individual is shown to determine the rate of human capital acquisition.

Babu, Chiranjeevi, Prasad &Rao in their research Unit linked Insurance Plans The Tasters perception on the mixed bag of fruits has finded that Most of the investors prefer insurance for mitigating the future risk, agents are most preferred channels of distribution of insurance policy, variables affecting the investors choice of ULIPs product arecorrelated. Fund management charges, reliability of insurer, insurance coverage are most affecting variables in the selection of ULIPs product by investors.

29 | P a g e

30 | P a g e

Purpose of the Study

The main purpose of the study is to find out the factors which are influencing the investment tools regards with ULIP and to suggest some strategies which will help the organization and to understand the perception and satisfaction level of customers who have invested in ULIPS.

Scope of the study: The scope of the study will helps to the peoples for their choice of investment. The study will help to know the expectations of the ULIP in future. The company can find out the satisfaction level of the ULIP of their product plans. The scope of the study will help the company will find the problems of peoples investing
in ULIP.

Objectives
To know the importance and awareness of investment in ULIP To know the risk perception of investors. To know the elements of risk and returns in ULIP

To examine the performance of the plan

31 | P a g e

 RESEARCH METHODOLOGY DATA ANALYSIS INTREPRETATION

32 | P a g e

RESEARCH METHODOLOGY

SAMPLING: Sample size Sampling Method Data collection method Sample Unit : 50 respondents : Random sampling : Personal Interview : Respondents in Phagwara

The study was conducted as descriptive method to collect primary and secondary data.

DATA SOURCE:
PRIMARY SOURCE OF DATA: Primary data are those collected by the investigator himself for the first time and thus they are original in character, they are collected for a particular purpose. A well-structured questionnaire was personally administrated to the selected sample to collect the primary data.

SECONDARY SOURCE OF DATA: Secondary data are those, which have already been collected by some other persons for their purpose and published. Secondary data are usually in the shape of finished products. Data collected for the preparation of the project work was generated companys brochures, internet (websites) etc.

33 | P a g e

SAMPLE SIZE Sample size denotes the number of elements selected for the study. For the present study, 50 respondents were selected at random.

Instrumentation Technique:
To know the response, I used questionnaire method. It has been designed as a primary research instrument. Questionnaires were distributed to respondents and they were asked to answer the questions given in the questionnaire. The questionnaires were used as an instrumentation technique, because it is an important method of data collection. The success of the questionnaire method in collecting the information depends largely on proper drafting. So in the present study questions were arranged and interconnected logically.

Learning experience
The environment in which the company operates is that of a highly competitive energetic atmosphere. And as a fresher that is an excellent start to begin ones corporate experience especially in the service sector (life insurance) with. This training has provided a vital learning element in the career of freshers. As it has enabled us to realize most of the classroom training obtained so far in a real life corporate environment. And so there has been a link developed between theory and practices. Through this implant training students can experience the kind of break that awaits us in the corporate world. This exercise also gets us to understand the amount of dedication and determination that professionals would have to put in, in their every days work because the decisions they take is a matter of loss or profit for the company. And mistakes are generally not entertained in the quality circles. The study alsoenlightened us with the amount of togetherness the staff of ICICI

Prudential have as an expandable family in their working culture. This is enumerated with all the employees taking mentioning interest in sharing their colleagues problems either physical or mental in comforting them, as would normally happen in a family set.
34 | P a g e

Data Analysis
Q. From which company you have taken Unit Linked Plan? Names LIC ICICI PRU HDFC MET LIFE TATA AIG BAJAJ ALLIANCE OTHERS 17 12 8 4 3 5 1 Frequency 34 24 16 8 6 10 2 Percentage

PERCENTAGE
40 35 30 25 20 15 10 5 0 PERCENTAGE

Interpretation: According to my project survey out of 50 respondent 34% invest in LIC, 12% invest in ICICI Prudential life insurance, 16% invest in HDFC STAN, 10% invest in Bajaj Allianzs, 8% invest in Met life, 6% in Tata AIG and 2% of respondent other companies.

35 | P a g e

Q. Which factor do you consider before investing in ULIPS? Reasons Safety of principle Low risk High returns Maturity period Frequency 15 8 25 2 Percentage 30 16 50 4

Percentage
60 50 40 30 percentage 20 10 0 safety of principle low risk high returns maturity period

Interpretation: According to my project survey out of 50 respondent 50% considers high returns before investing in Ulips, 30% consider safety of principle, 16% consider low risk and 4% consider maturity period before investing in Ulips

36 | P a g e

Q. How long have you been investing in ULIPs? Frequency 32 For the last 1-5 years For the last 5-10 years For the last 10-15 years 15 3 30 6 Percentage 64

Percentage
70 60 50 40 30 20 10 0 From last 1-5 years From last 5-10 From last 10-15 years years Percentage

Interpretation: According to my project survey out of 50 respondent 64% has been investing since last 1-5 years, 30% from last 5-10 years and 6% from last 10-15 years.

37 | P a g e

Q. In the past you have invested mostly in (choose one): Frequency Saving a/c and PO schemes Mutual funds ULIPS 22 9 2 Percentage 44 18 4 34

Other in instruments like real 17 estate, gold

Percentage
50 45 40 35 30 25 20 15 10 5 0 Savings a/c Mutual funds and PO schemes ULIPS Real estate, gold etc Percentage

Interpretation: According to my project survey out of 50 respondents 44% said that they had invested in savings a/c and PO schemes, 18% in Mutual funds, 4% in ULIPS and 34% had invested in real estates, gold etc.

38 | P a g e

Q. What is your purpose to invest in ULIPS? Frequency Risk cover High Returns Tax savings 10 35 5 20 70 10 Percentage

Percentage
80 70 60 50 40 30 20 10 0 Risk cover High Returns Tax savings

Percentage

Interpretation: According to my project survey out of 50 respondents 20% invests in ULIPS for risk cover against uncertainties, 70% invested for High returns and 10% invested for tax savings.

39 | P a g e

Q. Which type of ULIP product you have? Frequency Child plan Pension Plan Savings Plan 8 28 14 Percentage 16 56 28

Percentage
60 50 40 30 20 10 0 Child Plan Pension Plan Savings Plan

Percentage

Interpretation: According to my project survey out of 50 respondents 16% has taken Child Plan, 56% has taken Pension Plan and 28% has taken Savings Plan.

40 | P a g e

Q. What do you feel after investing in Unit Linked Plans? Frequency Good Averagely satisfied Percentage 25 with 19 50% 38%

investment decision Cheated 6 12%

Percentage
60% 50% 40% 30% 20% 10% 0% Good Averagely satisfied Cheated

Percentage

Interpretation: According to my project survey out of 50 respondents 50% of them felt well about their investment decision, 38% were averagely satisfied and 6% felt cheated after investing in ULIPS. And if we talk about ICICI PRUDENTIAL customers out of 12, 7 felt good after investing in ULIPS and 5 were averagely satisfied which was a good respond.

41 | P a g e

Q. How do you rate the Premium Amount to be paid in Unit Linked Plans? Frequency High Medium Low 8 26 16 16 52 32 Percentage

Percentage
60 50 40 30 20 10 0 High Medium Low

Percentage

Interpretation: According to my project survey out of 50 respondents 16% says that the rate of premium paid by them is high, 52% says that the rate of premium said by them is medium and 32% says that the rate of premium paid for ULIPS is low. And if we talk about ICICI PRUDENTIAL 6 out of 12 respondents says that the rate of premium paid by them is low, 5 says that the rate of premium is moderate and 1 of the respondent feels that the premium paid by him is high.

42 | P a g e

Q. How do you rate the returns in Unit Linked Plans? Frequency Good Average Poor 32 14 4 64 28 8 Percentage

Percentage
70% 60% 50% 40% 30% 20% 10% 0% Good Average Poor

Percentage

Interpretation: According to my project survey out of 50 respondents64% says that the rate of return is good, 28% says that the rate of return is average and 8% says the rate of return is poor. And if we talk about ICICI PRUDENTIAL 8 out of 12 feels that the rate of return in ULIPS is good and 4 says that the rate of return is average.

43 | P a g e

Q. How do you rate the risk associated with Unit Linked Plans?

Frequency High Average Low 19 21 10

Percentage 38% 42% 20%

Percentage
45 40 35 30 25 20 15 10 5 0 High Average Low

Percentage

Interpretation: According to my project survey out of 50 respondents 38% says that the rate of risk associated is high, 42% says that the rate of risk associated is average and 20% says the risk is low. And if I talk about ICICI PRUDENTIAL 7 out of 12 says that the rate of risk associated is high, 3 say that the rate of risk is average & 2 says it is low.

44 | P a g e

Q. How do you rate the schemes with Unit Linked Plans? Frequency Good Average Poor Percentage 31 16 3 62 32 6

Percentage
70 60 50 40 30 20 10 0 Good Average Poor

Percentage

Interpretation: According to my project survey out of 50 respondents 62% says that schemes in ULIPS are good, 32% says the schemes offered are average and 6% says that they are poor. And if I talk about ICICI PRUDENTIAL 6 out of 12 says that the schemes offered by ICICI pru are good, 5 says that the schemes are average and 1 say that schemes are poor.

45 | P a g e

Q. How do you rate the flexibility with Unit Linked Plans?

Frequency Highly Flexible Averagely Flexible Not at all flexible 36 13 1

Percentage 72 26 2

Percentage
80 70 60 50 40 30 20 10 0 High Average Not at all

Percentage

Interpretation: According to my project survey out of 50 respondents 72% says that the rate of flexibility with ULIPS is high, 26% says that the flexibility is average and 2 % says that it is not at all flexible. And if I talk about ICICI PRUDENTIAL 11 out of 12 says that the Ulips are highly flexible and 1 says that it is moderately flexible.

46 | P a g e

Q. How do you rate the transparency with Unit Linked Plans? Frequency Highly transparent Averagely transparent Not at all transparent 32 16 2 Percentage 64 32 4

Percentage
70 60 50 40 30 20 10 0 High Average Not at all transparent

Percentage

Interpretation: According to my project survey out of 50 respondents 64% says that the rate of transparency in ULIPS is high, 32% says the rate of transparency is average and 4% says that it is not at all transparent. And if I talk about the customers ICICI PRUDENTIAL 9 out of 12 says that there is high rate of transparency in ULIPs, 2 feels that the rate of transparency is average and I say that there is not at all transparency.

47 | P a g e

Q. How do you rate different charges like mortality charges, premium allocation, fund management fees, administration charges and surrender charges? Frequency High Average Low 28 18 4 Percentage 56 36 8

Percentage
60 50 40 30 20 10 0 High Average Low

Percentage

Interpretation: According to my project survey out of 50 respondents 56% says that the rate of charges paid by them is high, 36% says that the charges are average and 8% says that the charges are low. And if I talk about the customers of ICICI PRU 4 out of 12 says that the charges of ULIPS are high, 6 say they are average and 2 says that the charges are low.

48 | P a g e

Q. Are you satisfied with Unit Linked Plans? Frequency Yes No 48 2 Percentage 96 4

Percentage
120 100 80 60 40 20 0 yes no

Percentage

Interpretation: According to my project survey out of 50 respondents 96% are satisfied with ULIPS and 4% are not satisfied. And if I talk about the customers of ICICI PRU all the customers were satisfied with the unit linked plans.

49 | P a g e

 OBSERVATIONS RECOMMENDATIONS CONCLUSION

50 | P a g e

Observations
It was found 34% of the respondents had invested in LIC and 24% has invested in ICICI prudential which shows that LIC is the first name that comes to the mind of people when they think of insurance. It was found that 50% of the respondents consider high returns before investing in ULIPS, 30% considers safety of principle, and 16% considers low risk and 4% maturity period. It was found in the survey I conducted that 64% has been investing since last 1-5 years, 30% from last 5-10 years and 6% from last 10-15 years. It was found that 44% of the respondents had invested in savings a/c and PO schemes in the past, 18% in Mutual funds, 4% in ULIPS and 34% had invested in real estates, gold etc. It was found out of 50 respondents 20% invests in ULIPS for risk cover against uncertainties, 70% invested for High returns and 10% invested for tax savings. It was found that 16% has taken Child Plan, 56% has taken Pension Plan and 28% has taken Savings Plan. It was found that 50% of them felt well about their investment decision, 38% were averagely satisfied and 6% felt cheated after investing in ULIPS. It was found that 16% of respondents felt that the rate of premium paid by them is high, 52% felt that the rate of premium paid by them is medium and 32% said that the rate of premium paid for ULIPS is low. It was found that 64% said that the rate of return is good, 28% said that the rate of return is average and 8% said the rate of return is poor. It was found that 38% said that the rate of risk associated is high, 42% said that the rate of risk associated is average and 20% said the risk is low.

51 | P a g e

It was found that 62% said that schemes in ULIPS are good, 32% said the schemes offered are average and 6% said that they are poor. It was found that 72% said that the rate of flexibility with ULIPS is high, 26% said that the flexibility is average and 2 % said that it is not at all flexible. It was observed that 64% felt that the rate of transparency in ULIPS is high, 32% said the rate of transparency is average and 4% said that it is not at all transparent.

It was found that 56% said that the rate of charges paid by them is high, 36% said that the charges are average and 8% said that the charges are low. It was found that almost every respondent was satisfied by their ULIP policy.

Recommendations
For ICICI to have a larger market share it has to widen the customer base, so it should come up with intensive market strategy and aggressive publicity stunts such as: Deployment of addition sales force for proper marketing. Continuous bombardment of Advertisement by ICICI Prudential as a Life Insurance Company for a common man as well as for well educated and good salaried people. Hoardings in and around the important areas(public concentrated areas) The company should concentrate on the people aged between 18-25 for individual and also the age category 35-55 for family. Since individuals are interested in insuring their family members the company should concentrate on insuring the individuals family members. ICICI Prudential should concentrate on geographical areas for its expansion and to penetrate through rural areas it should tie-up with rural banks such as M.G.Bank etc. Top of mind insurance company is LIC, because of its trust what people keep in it and its awareness. So ICICI Prudential should emphasis heavy advertisement. 31% respondents would like to invest money in insurance for financial future need. So ICICI to provide different financial future satisfaction plans to the people.
52 | P a g e

Conclusion

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, which is one of India's foremost financial services companies, and prudential plc, which is a leading international financial services group. Today, this company has over 2100 branches, which include 1,116 micro-offices, over 290,000 advisors and 18 banc assurance partners.

ICICI Prudential Life Insurance Company is the first life insurer in India that received a National Insurer Financial Strength rating of AAA (Ind) from Fitch ratings. ICICI Prudential has been voted as India's Most Trusted Private Life Insurer for three consecutive years. ICICI Prudential Life Insurance Company has various insurance plans that have been designed for different individuals, as every individual has different insurance needs. From the study I did I came to an conclusion that ULIPs have an edge as they are dynamic plans and are flexible by nature and hence allow for changes and high degree of customization in the plan as opposed to most of the financial plans which once purchased cannot be modified. It is because of embedded characteristics of transparency, flexibility, liquidity & goal based savings that ULIPs have emerged as preferred investment option. The survey results highlight some important facts, though ICICI Prudential may be comparatively competitive with other companies ULIP. The choice of people investing in insurance is more and awareness of ICICI Prudential ULIP is more, People get information from company advisors and satisfaction level of ULIP is more and it will shows that ULIP will grow more in future days.

53 | P a g e

QUESTIONNAIRE BIBLIOGRAPHY

54 | P a g e

SURVEY OF UNIT LINKED INSURANCE PLANS Dear Sir/Madam, I request you to spare some time to fill the following information. I assure you that all this information will be kept confidential and it is required for academic purpose only. Name Contact No Occupation Q. Do you invest in ULIPs? a. Yes b. No If not, then what other option(s) do you prefer to invest? a. Fixed deposit b. Post office Schemes c. Recurring deposit Q. In which sectors do you prefer to buy ULIP? a. Public b.Private

Q. Which factor do you consider before investing in ULIPS? a. b. c. d. Safety of principle Low risk High returns Maturity period

Q. Do you have any other investment/ insurance policy? a. Yes b. No Q. How long have you been investing in ULIPs?
55 | P a g e

a. For the last 1-5 years b. For the last 5-10 years c. For the last 10-15 years Q. In the past you have invested mostly in (choose one): a. b. c. d. Savings a/c and PO Schemes Mutual funds ULIPS other instruments like real estate, gold

Q. What is your purpose to invest in ULIPS? a. Risk cover b. High returns c. Tax savings Q. From which company you have taken Unit Linked Plan? a. LIC b. ICICI PRU c.HDFC STAN d. MetLife e. TATA AIG f. BAJAJ ALLIANCE g. IF OTHERS (please specify)

Q. Which type of ULIP product you have? a. Child Plan b. Pension Plan c. Savings Plan Q. When you have taken Unit Linked Plan? a. 1 Year before b. 2 Years before c. More than three years before
56 | P a g e

Q. What do you feel after investing in Unit Linked Plans? a. Good b. Averagely Satisfied with the investment decision c. Cheated

Q. Reasons for investing in Unit Linked Plans? a. Returns b. Schemes are good c. Recommended by Family & Friends d. Needs to save tax e. Offers Multiple benefits like investment+insurance +Tax Saving

Q. How do you rate the Premium Amount to be paid in Unit Linked Plans? a. High b. Medium c. Low Q. How do you rate the returns in Unit Linked Plans? a. Good b. Average c. Poor Q. How do you rate the risk associated with Unit Linked Plans? a. Good b. Average c. Poor Q. How do you rate the schemes with Unit Linked Plans? a. Good b. Average c. Poor Q. How do you rate the flexibility with Unit Linked Plans? a. Highly Flexible b. Averagely Flexible c. Not at all flexible
57 | P a g e

Q. How do you rate the transparency with Unit Linked Plans? a. Highly Transparent b. Averagely Transparent c. Not at All transparent Q. How do you rate the Mortality Charges in Unit Linked Plans? a. High b. Average c. Low Q. How do you rate the Premium Allocation Charges in Unit Linked Plans? a. High b. Average c. Low Q. How do you rate the Fund Management Fees in Unit Linked Plans? a. High b. Average c. Low Q. How do you rate the Administration Charges in Unit Linked Plans? a. High b. Average c. Low Q. How do you rate the Surrender Charges in Unit Linked Plans? a. High b. Average c. Low Q. Are you satisfied with Unit Linked Plans? a. Yes b. No

58 | P a g e

Bibliography

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1303350

https://www.insuranceinstituteofindia.com/web/guest/home?p_p_auth=0fZW2zT 1&p_p_id=3&p_p_lifecycle=0&p_p_state=maximized&p_p_mode=view&_3_str uts_action=%2Fsearch%2Fsearch

https://www.insuranceinstituteofindia.com/web/guest/home?p_p_auth=0fZW2zT 1&p_p_id=3&p_p_lifecycle=0&p_p_state=maximized&p_p_mode=view&_3_str uts_action=%2Fsearch%2Fsearch

http://www.swissre.com/media/news_releases/new_swiss_re_sigma_study_unit_li
nked_life_insurance_in_western_europe_regaining_momentum.html

http://www.iupindia.in/509/IC_Relevance_of_ULIPs_43.html
http://timesofindia.indiatimes.com/business/india-business/Govts-ULIP-ruling-tohit-MFs-hard/articleshow/6076539.cms http://www.livemint.com/Home-Page/vQjtGwiub6fazEABYRACeO/Financeministry-to-call-the-shots-on-turf-wars.html http://www.rupeetalk.com/articles/general-articles/irda-regulates-ulip-a-relief-forinvestors.php http://www.indianjournaloffinance.co.in/archives/2009/november2009.html http://articles.economictimes.indiatimes.com/201307/news/37531996_1_infrastru cture-bonds-irda-ulip

59 | P a g e

http://www.indianmba.com/Faculty_Column/FC814/fc814.html http://www.afcpe.org/assets/pdf/vol-72.pdf https://www.insuranceinstituteofindia.com/downloads/Forms/III/Journal-2009-1011/The%20Journal.pdf

www.iciciprulife.com

www.insurance.com

60 | P a g e

61 | P a g e