Shrish Pratap Singh

RESEARCH REPORT
ON
Comparative Study of ULIP Products

Of
TATA-AIG LIFE INSURANCE
Submitted in Partial Fulfillment of the Requirement for

Master of Business Administration
PREFACE
There are number forces that make marketing an endlessly changing

activity. The constantly activity sociological, psychological and political
environment may represent the uncontrollable marketing factors. To
understanding these factors in better way marketing research is of most
importance.
This Project Report has been completed in Partial fulfillment of my

Management Program, Master of Business Administration (MBA) in
the company Tata-AIG Life Insurance. The objective of my project was
“Comparative Study of ULIP Products of Tata-AIG Life Insurance
is the name which is working as one of the best private insurance
company in insurance sector. With such large population and the
untapped market of populations insurance happens to be very big
opportunity in India. Today it stands as a business growing at the rate of
15-20 percent annually. Together with banking services, It adds about 7
percent to the country’s GDP. In spite of all this growth the statistics of
the penetration of the insurance in the country is very poor. Nearly 70%
of Indian populations are without Life Insurance cover and the Health
Insurance. This is an indicator that growth potential for the insurance
sector is immense in India.
ACKNOWLEDGEMENT
On the successful completion of this project I would like to express my

gratitude to all the people who have helped me throughout the project
work.
At first, I owe my debt of thanks to Tata-AIG Life, which gave me an

opportunity to do this project work.
I wish to extend my deep and sincere gratitude to KRISHAN MURARI

who provided me with their guidance from day one and also helped me
whole heartedly to achieve the ultimate goal of the project.
I am also indebted to the Institute, EXCEL SCHOOL OF BUSINESS

CHHTA MATHURAand its staff members for providing me with this
learning opportunity.
- INDEX -
CHAPTER Page
NO. CONTENTS No.
Chapter 1. Introduction 01
1.1 Object of the Project 02
1.2 Objective of the Study 03
1.3 Scope of the Study 04
1.4 Limitation of the Study 05
Chapter 2. Industry Profile 06
2.1 Insurance Sector 07-16
2.2 Important Milestone In Life Insurance in INDIA) 17-18
2.3 Current Scenario of Insurance Industry 19-20
2.4 Swot analysis of Insurance industry 21-23
2.5 Knowledge Management 24-27
2.6 Unit Linked Insurance Plans (ULIPs) 28-33

How Does ULIP wWork? (Chart) 34
Chapter 3 Company Profile 35

3.1 About the Company 36-38
3.2 Company Mission 39-40
3.3 Organisation Chart 41
3.4 Products of Organisation 42
3.5 ULIP Products 43-44
3.6 Competitors of Tata-AIG Life Insurance 45-55
Chapter 4 Comparative Study of ULIP Produt Of Tata-AIG 56

4.1 Detail of ULIP Products of Other Companies 57-66
4.2 Comparative chart 67-68
Chapter 5 Research Methodology 69-70

5.1 Data Collection 71-73
5.2 Data analyzing 72-78
5.3 Interpretation 79
5.4 Limitation of Research Methodology 80
Chapter 6 Annexure 81
6.1 Conclusion 82-84
6.2 Recommendation 85-88
6.3 Executive Summary 89
6.4 Glossary 90-97
6.5
Bibliography 98
Questionnaire 99-
6.6
101
EXECUTIVE SUMMARY
Overall, the life insurance and pension sector is set for rapid changes and
growth in the years ahead. Delivering service, building trust and being
innovative are key areas in which any company will have to excel in order
to do well in the long road ahead. Different companies will take different
approaches and it would be myriad of solutions that will be found to
delight the Indian customer.
During the first part, I was given complete classroom training about the
various unit linked as well as the traditional plans and solutions which the
company offers.
Later, Market Research was done through various activities and tele-
calling which are discussed further in the report. Activities led to practical
exposure and taught me the aspects of customer dealing.
Finally, interesting conclusions were drawn out of the data collected

regarding the Awareness of Financial Planning among the people in
today’s environment.
It was great experience because selling an insurance product

demands a great deal of confidence and product knowledge.
OBJECTIVE OF STUDY
Every study has certain objective there is no study without the objective,
because objective are the purpose of study. No study serves any existence
without its significant thus; they are the backbone on which the body
study stands.
 To find out the awareness of TALIC product among the

customers.
 To find out the factors affecting the purchase of TALIC products.
 To find out from where the customer prefer to buy the TALIC
products.
 To find out which bank is being preferred by the customer.
 To find out the purpose of taking TALIC products.
 To find out the better funds (ULIP) available in the market

through comparative study of the funds ( NAV ) of HDFC SLIC,
Bajaj Allianz, Birla Sunlife, ICICI Prudential etc
.
 To be one of the top private life insurers in terms of new business
premium& profitability.
 To provide products with maximum values to customers in

accordance & consistent with Govt rules/ policies.
 To create strong position in field of insurance sector &
development of new products.
 Ensure to retain staffs that are key resource.
 To further enhance the distribution network for provide the

service to customers throughout the country through the
expansion of network.
Scope of the Project
 This project gives interesting and challenging task to acquire the
knowledge of Mutual Funds and ULIP product with the help of
different plans and schemes of TATA AIG.
 This project gives information to the individual investor about the
ULIP product and guides them while taking any product of TATA AIG.
 This report provides the sufficient knowledge about the product
portfolio and its asset allocation.
 Analyzing various funds and their growth.

INDUSTRY PROFILE
Overview
With largest number of life insurance policies in force in the world, Insurance
happens to be a mega opportunity in India. It’s a business growing at the rate
of 15-20 per cent annually.
Together with banking services, it adds about 7 percent to the country’s

GDP .In spite of all this growth the statistics of the penetration of the
insurance in the country is very poor. Nearly 80 per cent of Indian population
is without life insurance cover while health insurance and non-life insurance
continues to be below international standards. And this part of the population
is also subject to weak social security and pension systems with hardly any
old age income security. This it-self is an indicator that growth potential for
the insurance sector is immense.
Historical Perspective
The insurance came to India from UK; with the establishment of the Oriental
Life insurance Corporation in 1818.The Indian life insurance company act
1912 was the first statutory body that started to regulate the life insurance
business in India. By 1956 about 154 Indian, 16 foreign and 75 provident
firms were been established in India. Then the central government took over
these companies and as a result the LIC was formed. Since then LIC has
worked towards spreading life insurance and building a wide network across
the length and the breath of the country.
Important milestones in the life insurance business in India:
1912: The Indian Life Assurance Companies Act enacted as the first statute
to regulate the life insurance business.
1956: 245 Indian and foreign insurers and provident societies were taken
over by the central government and nationalized. LIC formed by an Act of
Parliament- LIC Act 1956- with a capital contribution of Rs.5 cr. from the
Government of India.
Important milestones in the general insurance business in India
1907: The Indian Mercantile Insurance Ltd. set up- the first company to
transact all classes of general insurance business.
1957: General Insurance Council, a wing of the Insurance Association of

India, frames a code of conduct for ensuring fair conduct and sound business
practices.
1972: The general insurance business in India nationalized through The

General Insurance Business (Nationalization) Act, 1972 with effect from 1st
January 1973. 107 insurers amalgamated and grouped into four companies-
the National Insurance Company Limited, the New India Assurance Company
Limited, the Oriental Insurance Company Ltd. and the United India Insurance
Company Ltd. GIC incorporated as a company.
Insurance Sector Reforms
Prior to liberalization of Insurance industry, Life insurance was

monopoly of LIC.
In 1993, Malhotra Committee headed by former Finance Secretary and RBI

Governor R.N. Malhotra was formed to evaluate the Indian insurance industry
and recommend its future direction. The Malhotra committee was set up with
the objective of complementing the reforms initiated in the financial sector.
The reforms were aimed at creating a more efficient and competitive financial
system suitable for the requirements of the economy keeping in mind the
structural changes currently underway and recognizing that insurance is an
important part of the overall financial system where it was necessary to
address the need for similar reforms. In 1994, the committee submitted the
report and some of the key recommendations included:
Structure
Government stake in the insurance Companies to be brought down to 50%.
Government should take over the holdings of GIC and its subsidiaries so that
these subsidiaries can act as independent corporations.
Competition
Private Companies with a minimum paid up capital of Rs.1 billion should be
allowed to enter the sector. No Company should deal in both Life and General
Insurance through a single entity. Foreign companies may be allowed to enter
the industry in collaboration with the domestic companies.
Regulatory Body
The Insurance Act should be changed. An Insurance Regulatory body should
be set up. Controller of Insurance- a part of the Finance Ministry- should be
made independent
Investments
Mandatory Investments of LIC Life Fund in government securities to be
reduced from 75% to 50%. GIC and its subsidiaries are not to hold more than
5% in any company (there current holdings to be brought down to this level
over a period of time)
Customer Service
LIC should pay interest on delays in payments beyond 30 days. Insurance
companies must be encouraged to set up unit linked pension plans.
Computerization of operations and updating of technology is to be carried out
in the insurance industry
NATURE OF INDUSTRY
The insurance industry provides protection against financial losses resulting

from a variety of perils. By purchasing insurance policies, individuals and
businesses can receive reimbursement for losses due to car accidents, theft of
property, and fire and storm damage; medical expenses; and loss of income
due to disability or death. The insurance industry consists mainly of
insurance carriers (or insurers) and insurance agencies and
brokerages. In general, insurance carriers are large companies that provide
insurance and assume the risks covered by the policy. Insurance agencies
and brokerages sell insurance policies for the carriers.
Insurance companies assume the risk associated with annuities and insurance
policies and assign premiums to be paid for the policies. In the policy, the
companies states the length and conditions of the agreement, exactly which
losses it will provide compensation for, and how much will be awarded.
The premium charged for the policy is based primarily on the amount to be
awarded in case of loss, as well as the likelihood that the insurance carrier
will actually have to pay. In order to be able to compensate policyholders for
their losses, insurance companies invest the money they receive in
premiums, building up a portfolio of financial assets and income-producing
real estate which can then be used to pay off any future claims that may be
brought.
There are two basic types of insurance carriers: Direct and Reinsurance.
Direct carriers are responsible for the initial underwriting of insurance

policies and annuities, while Reinsurance carriers assume all or part of the
risk associated with the existing insurance policies originally underwritten by
other insurance carriers.
Direct insurance carriers offer a variety of insurance policies.
Life insurance provides financial protection to beneficiaries—usually spouses

and dependent children—upon the death of the insured.
Disability insurance supplies a preset income to an insured person who is

unable to work due to injury or illness
Health insurance pays the expenses resulting from accidents and illness.
An Annuity (a contract or a group of contracts that furnishes a periodic

income at regular intervals for a specified period) provides a steady income
during retirement for the remainder of one’s life.
Property-casualty insurance protects against loss or damage to property
resulting from hazards such as fire, theft, and natural disasters.
Liability insurance shields policyholders from financial responsibility for

injuries to others or for damage to other people’s property. Most policies,
such as automobile and homeowner’s insurance, combine both property-
casualty and liability coverage. Companies that underwrite this kind of
insurance are called property-casualty carriers.
What is Life Insurance?
Human life is subject to risks of death and disability due to natural and
accidental causes. When human life is lost or a person is disabled
permanently or temporarily, there is a loss of income to the household. The
family is put to hardship. Risks are unpredictable. Death/disability may occur
when one least expects it. There are a number of life insurance products
which offer protection and also coupled with savings.
A Term insurance product provides a fixed amount of money on death

during the period of contract.
A Whole Life insurance product provides a fixed amount of money on

death.
An Endowment Assurance product provided a fixed amount of money

either on death during the period of contract or at the expiry of contract if life
assured is alive.
A Money Back Assurance product provides not only fixed amounts which
are payable on specified dates during the period of contract, but also the full
amount of money assured on death during the period of contract.
An Annuity product provides a series of monthly payments on stipulated

dates provided that the life assured is alive on the stipulated dates.
A Linked product provides not only a fixed amount of money on death but
also sums of money which are linked with the underlying value of assets on
the desired dates.
There are a variety of life insurance products to suit to the needs of various
categories of people—children, youth, women, middle-aged persons, old
people; and also rural people, film actors and unorganized laborers.
Life insurance products could be purchased from registered life insurers

notified by the IRDA. Insurers appoint insurance agents to sell their products.
As per regulations, insurers have to give the various features of the products
at the point of sale. The insured should also go through the various terms and
conditions of the products and understand what they have bought and met
their insurance needs. They ought to understand the claim procedures so that
they know what to do in the event of a loss.
KNOWLEDGE MANAGEMENT
When Should One Go For Insurance?
Your insurance need will change as your life does, from starting to work to
enjoying your golden years and all the stages in between. Each one of these
stages may pose a different insurance need/cover for you. In this section, we
have drawn up the basic life stages and help you analyze various insurance
needs accordingly.
Stage 1 : Young and Single

This is an important stage where one lays down the foundation of a successful
life ahead. Take advantage of the time and power of compounding to ensure
that you build up your dreams, so start saving early.
Your needs:
o Save for a home and wedding

o Tax Planning
o Save for Golden years
Stage 2 - Just Married
Marriage brings about a significant change. New dreams and new

opportunities also bring in additional responsibilities. While both of you look
forward to a happy and secure life , it is equally important to ensure that
eventualities don’t come in the way of shaping your dreams.
Your needs:
o Planning for home / securing your home loan

liability
o Save for vacation
o Save for your first child
Stage 3 - Proud Parents

Once you have children, your need for life insurance is even more. You need
to protect your family from an untoward incident. Ensure your protection
umbrella takes into account the future cost of securing your child’s dream.
You will want life to go on for your loved ones, and having enough life
insurance is a way to help ensure that.
Your needs:
o Provide for children’s education

o Safeguarding family against loan liabilities
o Savings for post-retirement
Stage 4 - Planning for Retirement
While you are busy climbing the ladder of success today, it is important for
you to take time and plan for your life after retirement. Having an early start
for retirement planning can make a significant difference to your savings.
Think about your golden years even before you have reached them. The key
is to think ahead and plan well using your time and money.
Your needs:
o Provide for regular income post retirement

o Immediate Tax benefits
o Lead a secure, independent and comfortable
life style after retirement
Unit Linked Insurance Plans (ULIPs)
For the generation of insurance seekers who thrived on insurance policies

with assured returns issued by a single public sector enterprise, unit-linked
insurance plans are a revelation.
The subsequent softening of interest rates introduced a degree a much-
needed rationality to insurance products like endowment plans; attractive
returns at low risk became a thing of the past. The same period also
coincided with an upturn in equity markets and the emergence of a new
breed of market-linked insurance products like ULIPs. While in conventional
insurance products the insurance component takes precedence over the
savings component, the opposite holds true for ULIPs.
More importantly ULIPs (powered by the presence of a large number of
variants) offer investors the opportunity to select a product which matches
their risk profile; for example an individual with a high risk appetite can shun
traditional endowment plans (which invest about 85% of their funds in the
debt instruments) in favour of a ULIP which invests most of its corpus in
equities.
In traditional insurance products, the sum assured is the corner stone; in
ULIPs premium payments is the key component. ULIPs are remarkably alike
to mutual funds in terms of their structure and functioning; premium
payments made are converted into units and a net asset value (NAV) is
declared for the same.
Investors have the choice of enhancing their insurance cover, modifying
premium payments and even opting for a distinct asset allocation than the
one they originally opted for. This calls for enhanced flexibility in ULIPs. Also
if an unforeseen eventuality were to occur, in case of traditional products, the
sum assured is paid along with accumulated bonuses; conversely in ULIPs,
the insured is paid either the sum assured or corpus amount whichever is
higher.
Insurance seekers have never been exposed to this kind of flexibility in
traditional insurance products and it would be fair to say that ULIPs represent
the new face of insurance. While few would dispute the value-add that ULIPs
can provide to one's insurance portfolio and financial planning; the same is
not without its flipside.
For the uninitiated, understanding the functioning of ULIPs can be quite a
handful! The presence of what seem to be relatively higher expenses, rigidly
defined insurance and investment components and the impact of markets on
the corpus clearly make ULIPs a complex proposition. Traditionally the
insurance seeker's role was a passive one restricted to making premium
payments; ULIPs require greater participation from the insured.
Charges and Expenses

ULIPs work very similar to a mutual fund with an added benefit of life cover
and tax deduction. 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 upto 100% in equities), ‘balanced’ ULIPs (which invest 40-
60% in equities) and ‘debt’ ULIPs (which invest only in debt and money
market instruments).
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. The sum-at-risk is the
difference between the sum assured and the investment value the individual’s
corpus as on a specified date. Usually, the mortality charges are levied on the
per thousand sum assured.
2) Sales and Fund Administration expenses

Insurance companies incur these expenses for operational purposes on a
regular basis. The expenses are recovered from the premiums that individuals
pay towards their 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 (FMC)

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, g-secs 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.
a) 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.
b) 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
usually 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.
c) Cancellation charges
Life insurance companies levy cancellation charges if individuals decide to

surrender their policies before the mandated lock-in period which is usually
three years. These charges are levied as a percentage of the fund value on a
particular date
REASON FOR POPULARITY OF ULIPs
ULIPs offer a twin benefit: – ULIPs serve the purpose of providing life
insurance combined with savings at market-linked returns. This is more
beneficial to the investor as compared to his investment in a mutual fund
which does not offer a life cover. Moreover, they offer transparent disclosure,
monthly portfolios and daily NAVs (net asset values). ULIP became popular
mostly on account of Sensex northward journey.
ULIPs have multiple investment options:
The individuals have an option of investing based on his market analysis and
his risk profile. Generally there are three categories of ULIPs.
• Aggressive ULIPs (which can typically invest 80%-100% in equities, balance

in debt)
• Balanced ULIPs (can typically invest around 40%-60% in equities)
• Conservative ULIPs (can typically invest upto 20% in equities)
ULIPS are Flexible:
The individuals are allowed to switch between the ULIP variants outlined
above to capitalize on investment opportunities across the equity and debt
markets. Free switches are an important feature that allows the informed
individual/investor to benefit from the vagaries of stock/debt markets. For
instance, when stock markets were on the brink of 7,000 points (Sensex), the
prudent investor would prefer to shift his assets from an Aggressive ULIP to a
low-risk Conservative ULIP.
INDIAN INSURANCE SECTOR

REGULATORY BODY
Insurance is a federal subject in India. The primary legislation that deals with
insurance business in India is: Insurance Act, 1938, and Insurance Regulatory
& Development Authority Act, 1999.
The Insurance Regulatory and Development

Authority (IRDA)
Reforms in the Insurance sector were initiated with the passage of the IRDA
Bill in Parliament in December 1999. The IRDA since its incorporation as a
statutory body in April 2000 has fastidiously stuck to its schedule of framing
regulations and registering the private sector insurance companies.
The other decision taken simultaneously to provide the supporting systems to

the insurance sector and in particular the life insurance companies was the
launch of the IRDA’s online service for issue and renewal of licenses to
agents. Since being set up as an independent statutory body the IRDA has
put in a framework of globally compatible regulations.
MISSION-IRDA
“To protect the interests of the policyholders, to regulate, promote
and ensure orderly growth of the insurance industry and for matters
connected therewith or incidental thereto.”
CURRENT SCENARIO OF THE INDUSTRY
INSURANCE MARKET IN INDIA
India with about 200 million middle class household shows a huge untapped
potential for players in the insurance industry. Saturation of markets in many
developed economies has made the Indian market even more attractive for
global insurance majors. The insurance sector in India has come to a position
of very high potential and competitiveness in the market.
Innovative products and aggressive distribution have become the say of the
day. Indians, have always seen life insurance as a tax saving device, are now
suddenly turning to the private sector that are providing them new products
and variety for their choice. Life insurance industry is waiting for a big growth
as many Indian and foreign companies are waiting in the line for the green
signal to start their operations. The Indian consumer should be ready now
because the market is going to give them an array of products, different in
price, features and benefits. How the customer is going to make his choice
will determine the future of the industry.
CUSTOMER SERVICE
Consumers remain the most important centre of the insurance sector. After
the entry of the foreign players the industry is seeing a lot of competition and
thus improvement of the customer service in the industry. Computerization of
operations and updating of technology has become imperative in the current
scenario. Foreign players are bringing in international best practices in service
through use of latest technologies. The one time monopoly of the LIC and its
agents are now going through a through revision and training programs to
catch up with the other private players. Though lot is being done for the
increased customer service and adding technology to it but there is a long
way to go and various customer surveys indicate that the standards are still
below customer expectation levels.
DISTRIBUTION CHANNELS
Till date insurance agents still remain the main source through which
insurance products are sold. The concept is very well established in the
country like India but still the increasing use of other sources is imperative. It
therefore makes sense to look at well- balanced, alternative channels of
distribution.
LIC has already well established and have an extensive distribution channel
and presence. New players may find it expensive and time consuming to
bring up a distribution network to such standards. Therefore they are looking
to the diverse areas of distribution channel to have an advantage. At present
the distribution channels that are available in the market are:
• Direct selling/Retail
• Corporate agents
• Group selling
• Brokers and cooperative societies
• Bancassurance
DIRECT SELLING/RETAIL
Direct selling or retail business is carried out by Agents of the company. This
is the main distribution channel due to the complexity of most
insurance products (Endowment, Whole of Life, Unit Linked). This tends to be
the focus of most companies due to its past success as well as its ability to
deliver the right advice. However, this channel can be expensive and it is a
time consuming sales process. An agent is the public face of an Insurance
company. Hence it is important that this face is always smiling and
presentable and the facts and figures at his/ her command are updated and
correct.
An agent should be a pleasing personality with complete knowledge about the

various plans and solutions which the company has to offer and must also
understand the customer’s psychology well to deal in an efficient manner.
BANCASSURANCE
Bancassurance is the distribution of insurance products through the bank's
distribution channel. It is a phenomenon wherein insurance products are
offered through the distribution channels of the banking services along with a
complete range of banking and investment products and services. To put it
simply, Bancassurance, tries to exploit synergies between both the insurance
companies and banks.
Advantages to banks
• Productivity of the employees increases.
• By providing customers with both the services under one roof, they can
improve overall customer satisfaction resulting in higher customer retention
levels.
• Increase in return on assets by building fee income through the sale of
insurance products.
• Can leverage on face-to-face contacts and awareness about the
financial
conditions of customers to sell insurance products.
• Banks can cross sell insurance products e.g.: Term insurance products
with
loans.
Advantages to insurers
• Insurers can exploit the banks' wide network of branches for
distribution of products. The penetration of banks' branches into the
rural areas can be utilized to sell products in those areas.
• Customer database like customers' financial standing, spending habits,
investment and purchase capability can be used to customize products
and sell accordingly.
• Since banks have already established relationship with customers,
conversion ratio of leads to sales is likely to be high. Further service
aspect can also be tackled easily.
Advantages to consumers
• Comprehensive financial advisory services under one roof. i.e.,
insurance services along with other financial services such as banking,
mutual funds, personal loans etc.
• Enhanced convenience on the part of the insured
• Easy accesses for claims, as banks are a regular go.
SWOT ANALYSIS OF INSURANCE INDUSTRY
STRENGTH:
1. Best returns with the added advantage of 100% life insurance coverage.
2. Good option for new investors into the market as all the money is invested
by best fund managers so with less knowledge also they can earn good
returns.
3. Best commission charges paid to the agents which vary from 12% to 35%
which is much higher as compared to mutual funds i.e. , only 2-2.5%.
WEAKNESS
1. TALIC could not able to match LIC in remote areas services.

2. Misleading facts given by life advisors about the returns of ULIPs.
3. Hidden charges taken by the companies.
4. Less Promotional Campaigns.
OPPORTUNITY
1. 80 percent of Indian population is still under insured. So

there is a big opportunity for insurance companies.
2. As the stock market can be under the mark any time so it can bring
loss to the investors but as in ULIPs there is proper mixture of debt securities
and equity so the loss is incurred during dark trading days also.
3. Unit-linked products are exempted from tax and they provide life
insurance.
4. Increasing consumer awareness about Insurance and its use.
THREAT
1. Cannibalism within the industry by providing misleading figures to the

investors.
2. Govt.’s instability has a long term repercussions affecting company’s
policies and its growth
COMPANY’S PROFILE
About Company
Tata-AIG Life Insurance Company Limited (Tata-AIG Life) is a joint venture

company, formed by the Tata Group and
American International Group, Inc. (AIG). Tata AIG Life combines the
Tata Group’s pre-eminent leadership position in India and AIG’s global
presence as the world’s leading international insurance and financial services
organization. The Tata Group holds 74 per cent stake in the insurance
venture with AIG holding the balance 26 percent. Tata AIG Life provides
insurance solutions to individuals and corporates. Tata AIG Life Insurance
Company was licensed to operate in India on February 12, 2001 and started
operations on
April 1, 2001.
THE TATA GROUP
The Tata Group is one of India's largest and most respected business
conglomerates, with revenues in 2004-05 of $17.8 billion (Rs. 799,118
million), the equivalent of about 2.8 per cent of the country's GDP. Tata
companies together employ some 215,000 people. The Group's 32 publicly
listed enterprises - among them standout names such as Tata Steel, Tata
Consultancy Services, Tata Motors and Tata Tea - have a combined market
capitalisation that is the highest among Indian business houses in the private
sector, and a shareholder base of over 2 million. The Tata Group has
operations in more than 40 countries across six continents, and its companies
export products and services to 140 nations.
AIG
American International Group, Inc. (AIG), world leaders in insurance and

financial services, is the leading international insurance organization with
operations in more than 130 countries and jurisdictions. AIG companies serve
commercial, institutional and individual customers through the most extensive
worldwide property-casualty and life insurance networks of any insurer. In
addition, AIG companies are leading providers of retirement services,
financial services and asset management around the world. AIG's common
stock is listed on the New York Stock Exchange as well as the stock
exchanges in London, Paris, Switzerland and Tokyo
Management
TrevorBull – Managing Director
Mr. Trevor Bull joined Tata-AIG Life as Managing Director in January 2006.
Prior to this, Trevor was Senior Vice President and General Manager at
American International Assurance in Korea.
Trevor has over 28 years of experience in the life insurance industry and has
spent considerable time working in Japan and Britain. His experience covers
an array of skills at various authority levels including Director, Regional
Executive, Senior Line Management and Project Management. Additionally,
Trevor has acquired keen insights into Unit Linked, conventional life and
health insurance/ reinsurance and all major products & distribution channels.
A proud father of two boys and one girl, he aligns his hobbies with theirs and
connects with them through a game of tennis or football regularly
.
ORGANISATION STRUCTURE
Mr. Trever Bull - MD

Mr.Fhill Heman - CEO
Ms. Vijay Singha – VP
Mr. Anurag Shrivastava- ZM
Mr.Sanjiva Gorihatta – RM
Mr. Ashwani khosa - Area Manager
Mr. Mudit Mathur - Branch Manager
Mr. Jitendra Dhiman –sales manager
Mr.Deepak Sharma - SBDM
Mr. Ashawani Sharma – BDM
Mr. Vivek Singh - ABDM
Mr. Saurabh Gupta -MBA
Ms. Deepika -SBA
TATA-AIG LIFE has a staff strength of 1029, which includes professionals from
the fields of finance, law, accountancy, engineering and marketing.
COMPANY’S MISSION:
To be the top life insurance company in the market.
This not only means being the largest or the most productive company in the
market, but a combination of several things like-
• Customer service of the highest order

• Value for money for customers
• Professionalism in carrying out business
• Innovative products to cater to different needs of different customers
• Use of technology to improve service standards
• Increasing market share
COMPANY’S VALUES:
• SECURITY: Providing long term financial security to our policy holders

will be our constant endeavor. This is done by offering life insurance
and pension products.
• TRUST: Company appreciates the trust placed by our policy holders in
us. Hence, company will aim to manage their investments very carefully
and live up to this trust.
• INNOVATION: Recognizing the different needs of our customers,
company will be offering a range of innovative products to meet these
needs.
Competitors of Tata-AIG life insurance

ICICI prudential:
ICICI prudential insurance is a joint
venture of ICICI bank and prudential plc a leading financial service group in
the UK. Total capital stands for Rs. 37.72 billion, with ICICI Bank holding a
stake of 74% and Prudential plc holding 26%. ICICI begin their operations in
December 2000 after receiving approval from IRDA. Now ICICI prudential is
having over 1000 offices, over 270000 advisors and 21bancassurance
partners. ICICI Prudential was the first life insurer in India to receive a
National Insurer Financial Strength rating of AAA from Fitch ratings. ICICI
prudential is working on the base of five core values-
1 Integrity
2 Customer first
3 Boundary less
4 Ownership
5 Passion
Key features:
1 Understanding the needs of customers and offering them superior
products and service.
2 Leveraging technology to service customers quickly, efficiently and

conveniently.
3 Developing and implementing superior risk management and
4 investment strategies to offer sustainable and stable returns to

policyholders.
5 Providing an enabling environment to foster growth and learning for
employees.
HDFC standard life insurance:

HDFC Standard Life Insurance Company Ltd. is one of India's leading private
insurance companies. It is a joint venture of Housing Development Finance
Corporation Limited, India's leading housing finance institution and a Group
Company of the Standard Life in UK. HDFC as on March 31, 2007 holds 81.9
per cent of equity venture. Gross premium income of the HDFC for the year
ending March 31, 2007 was Rs. 2, 856 crores and new business premium
income was Rs. 1,624 crores. The company has covered over 8, 77,000 lives
year ending March 31, 2007. HDFC standard is having 1000 advisors in 11
towns.
Key features:
1 Creating corporate agents through HDFC bank in India.
2 Creating agents to provide total financial consultancy.
3 Introducing low cost group schemes for companies and NGOs.
Reliance life
insurance Reliance Life Insurance Company Limited is a part of Reliance
Capital Ltd. of the Reliance - Anil Dhirubhai Ambani Group. Reliance Capital is
one of India’s leading private sector financial services companies, and ranks
among the top 3 private sector financial services and banking companies, in
terms of net worth. Reliance Capital has interests in asset management and
mutual funds, stock broking, life and general insurance, proprietary
investments, private equity and other activities in financial services. Reliance
Capital Limited (RCL) is a Non-Banking Financial Company (NBFC) registered
with the Reserve Bank of India under section 45-IA of the Reserve Bank of
India Act, 1934 .
Aviva life insurance

Aviva is UK’s largest and the world’s fifth largest insurance Group. It is one
of the leading providers of life and pensions products to Europe and has
substantial businesses elsewhere around the world. Aviva has a joint venture
of Dabur, one of India's oldest, and largest Group of companies. And
country's leading producer of traditional healthcare products. In accordance
with the government regulations Aviva holds a 26 per cent stake in the joint
venture and the Dabur group holds the balance 74 per cent share. Aviva
has 193 Branches in India (including rural branches) supporting its
distribution network. Through its Banc assurance partner locations, Aviva
products are available in more than 2,795 locations across India. Aviva has a
sales force of over 30000 financial planning advisors.
Key features:
1 Through the “Financial Health Check” (FHC) Aviva’s sales force has
been able to establish its credibility in the market. The FHC is a free
service administered by the FPAs for a need-based analysis of the
customer’s long-term savings and insurance needs. Depending on the
life stage and earnings of the customer, the FHC assesses and
recommends the right insurance product for them.
2 Introduced the concept of Banc assurance in India.
3 Products to provide customers flexibility, transparency and value for

money.
4 Differentiation in fund management operations.
MetLife insurance:
MetLife India Insurance Company Limited is an affiliate of MetLife, Inc. and
was incorporated as a joint venture between MetLife International Holdings,
Inc.and The Jammu and Kashmir Bank, M. Pallonji and Co. Private Limited
and other private investors. MetLife is one of the fastest growing life
insurance companies in the country. It offers a range of innovative products
to individuals and group customers at more than 600 locations through its
bank partners and company-owned offices. MetLife has more than 32,000
Financial Advisors. It has approximately 70 million customers all over world.
MetLife is working on the base of six core values-
1 Innovation
2 Long term relationship
3 Customer centered and result focused vision
4 Creating high performance organization
5 Working with integrity, fairness and financial prudence
6 Partnering with internal and external customers

Max New York life insurance:
Max New York Life Insurance Company Ltd. is a joint venture between New
York Life, a Fortune 100 company and Max India Limited, one of India's
leading multi-business corporations The Company's paid up capital is Rs.
907.4 crore. Max New York life is working on the base of six core values-
1 Excellence,
2 Honesty,
3 Knowledge,
4 Caring,
5 Integrity
The Company practices a lot of importance on its selection process of

insurance advisors which comprises four stages - screening, psychometric
test, career seminar and final interview. 337 agent advisors have
qualified for the Million Dollar Round Table (MDRT) membership in 2007 and
Max New York Life has moved up to 21st rank in MDRT global list.
Key features:
1 Max New York Life has adopted prudent financial practices to ensure
safety of policyholder's funds.
2 Investing significantly in its training programme and each agent is

trained for 152 hours as opposed to the mandatory 100 hours
stipulated by the IRDA before beginning to sell in the marketplace.
3 Using a five-pronged strategy to pursue alternative channels of
distribution which include the franchisee model, rural business, direct
sales force involving group insurance and telemarketing opportunities,
banc assurance and corporate alliances.
Bharti Axa life insurance:
Bharti Axa life insurance is a joint venture between Bharti, one of India’s
leading business groups with interests in telecom, agri business and retail,
and Axa world leader in financial protection and wealth management. The
joint venture company has a 74% stake from Bharti and 26% stake of Axa.
The company started its operations in December 2006. Now company is
having over 5200 employees across over 12 states in the country. Company
is working on the base of five core values-
1 Professionalism
2 Innovation
3 Team Spirit
4 Pragmatism
5 Integrity
Key features:
1 Using multi-distribution, multi product platform techniques.
2 Adapting AXA's best practices as a sound platform for profitable

growth.
3 Leveraging Bharti's local knowledge, infrastructure and customer
base.
4 Delivering high levels of shareholder return.
5 Building long term value with business partners by enhancing the

proposition to their customers.
6 Retaining the best talent in India.
Bajaj Allianz life insurance:

Bajaj Allianz life insurance company ltd. Is a joint venture of Allianz AG,
one of the world’s largest insurance companies and Bajaj auto, one of the
biggest two and three wheeler manufacturing companies in the world.
Company is having over 440000 satisfied customers in India. Company is
having 550 branches across the country and over 60000 advisors.
Key features:
1 Tying up with seven regional rural banks sponsored by Syndicate Bank

to tap the rural market.
2 Introducing micro-insurance products and coming out with a new

capital guarantee product.
3 Expanding its agency force from 1.60 lakh to 2 lakh and the branch
network will also be increased from 900 to 1400.
ING
Vysya Life Insurance Company Limited a part of the ING group the world’s
largest financial services provider entered in the private life insurance
industry in India in September 2001.ING Vysya Life is currently present in
246 cities and has a network of over 300 branches, staffed by 7,000
employees and over 51,000 advisors, serving over 5.5 lakh customers.
ING Vysya Life has a diversified distribution channels,. While Tied Agency
remains the strongest channel, the Alternate Channels business within ING
Vysya Life is one of the fastest growing distribution channels. ING Vysya
Life has strengthened its position as the unparallel leader in the life
insurance industry in cooperative banks tie ups. The company currently
has tie ups with 130 cooperative banks across the country. The Alternate
Channels division has Banc assurance, ING Vysya Bank, Corporate Agents
and SMINCE. ING Vysya is working on the base of five core values-
1 Professionalism
2 Entrepreneurial
3 Trustworthy
4 Approachable
5 Caring
Birla sun life insurance
Birla Sun Life Insurance Company Limited (BSLI) is a joint venture between
the Aditya Birla Group and the Sun Life Financial Services of Canada. It
started operations in March 2001 after receiving its registration license from
IRDA in January 2001. Company is having more than 45 branches across
India.
Key features:
1 Focus on unit linked insurance products supported with protection

products to maintain leadership in product innovation.
2 Use of multi distribution channels- Direct Sales Force, Alternate

Channels and offering convenient channels of purchase to customers.
3 Web-enabled IT systems for superior customer services and issuing

policies on the internet.
4 High degree of transparency in all business practices and procedures.
Working on operational Bus

A unit linked
the b
Power
New ULIP
NAME OF THE INSURANCE
COMPANY Tata-AIG Life
POLICY NAME INVEST ASSURE FLEXI
MINIMUM PREMIUM 15,000(annually)
FUND ALLOCATION 1)WL MID CAP EQUITY FUND
2)LARGE CAP EQUITY FUND
3)CAPITAL GUARANTEE FUND
4) WL STABLE FUND
5)WL AGGRESSIVE FUND
6)WL SHORT TERM FIXED INCOME FUND
7) WL INCOME FUND
PREMIUM MODE Annual/Semi-annual/Quartely/Monthly
MINIMUM TERM(yrs) 5 yrs
MAXIMUM TERM(yrs) 40 yrs
NO. OF FREE SWITCES PER YR 12
MINIMUM LOCK IN PERIOD(yrs) 3yrs
CHARGES
PREMIUM ALLOCATION
CHARGE
( in %age) 15000-24999 16%(1st&2nd yr) 3%(3yrs)
25000-4,99,999 15%(1st&2nd yr) 3%(3yrs)
5,00,000-9,99,999 13%(1st&2nd yr) 3%(3yrs)
10,00,000-99,99,999 9%(1st&2nd yr) 3%(3yrs)
10,000,000 & Above 1.5%(1st&2nd yr) 1.5%(3yrs)
MORTALITY & NA
OTHER BENEFITS RISK
CHARGES
FUND MANAGEMENT CHARGE

WL MID CAP EQUITY FUND 1.20%
LARGE CAP EQUITY FUND 1.20%
CAPITAL GUARANTEE FUND 1.50%

COMPANY BAJAJ ALLIANZ
POLICY NAME CAPITAL UNIT GAIN

1000(monthly)
FUND ALLOCATION 1)LIQUID FUND(low risk profile)

100% in bank deposits
2)BOND FUND(moderate risk profile)
20% in money market instruments, 80%in G-sec bonds
3)EQUITY GROWTH FUND(very high risk profile)

20% in bank deposits and money market instruments, 80%
in equity
4)EQUITY INDEX FUND-II (high risk profile)

15% in bank deposits and money market instruments ,
85% in equity
5) ACCELERATOR MID-CAP FUND(very high)

20% in bank deposits and money market instruments, 80%
in equity
CHARGES
PREMIUM ALLOCATION
CHARGE( in %age) Rs 10,000-Rs1999,999 5%
Rs 2000,000-Rs999,999 4%
Rs 1,000,0000 3%
POLICY ADMINISTRATION Rs 600 per annum per policy

CHARGE
MORTALITY & AGE(yrs) amount(Rs)

OTHER BENEFITS RISK
CHARGES <7yrs 0
20 1.12
30 1.29
40 2.37
50 6.08
FUND MANAGEMENT CHARGE 1.75% p a of NAV for equity growth fund

COMPANY ICICI PRUDENTIAL
POLICY NAME INVEST SHIELD LIFE
FUND ALLOCATION INVEST SHIELD LIFE(moderate risk profile)

60% debt, 40% equity
NO. OF FREE SWITCES PER YR NONE
MINIMUM LOCK IN
PERIOD(yrs) 3yrs
CHARGES
PREMIUM ALLOCATION
CHARGE( in %age) year 1 35%
year 2 15%
year 3 3%
POLICY ADMINISTRATION Rs 40 per month

CHARGE
MORTALITY & AGE(yrs) amount(Rs)

OTHER BENEFITS RISK
CHARGES <7 0
20 1.33
30 1.46
40 2.48
50 5.91
FUND MANAGEMENT CHARGE 1.25 p a of NAV
PARTIAL WITHDRWAL NA
SWITCHING CHARGE no switches per year
SURRENDER CHARGE no, of yrs of policy surrender value

as a % of fund value
3 yrs 50%
4 yrs 60%
5 yrs 70%
6 yrs 80%
7 yrs 85%
8 yrs 90%
9 yrs 95%
10 yrs and above 100%
surrender value is available

after deducting surrender charges
MISCELLANEOUS CHARGE NA
COMPANY KOTAK LIFE
POLICY NAME SAFE INVESTMENT PLAN II
FUND ALLOCATION AGGRESSIVE GROWTH

60-100 IN EQUITY,0-40 IN DEBT
2)DYNAMIC GROWTH
3)DYNAMIC BALANCED GROWTH

MINIMUM TERM(yrs) 10 YRS
MINIMUM LOCK IN PERIOD(yrs) 3 YRS
CHARGES
PREMIUM ALLOCATION
CHARGE( in %age) year 1 14%
year 2 onwards 3.5%
POLICY ADMINISTRATION
CHARGE Rs 40 per month
there are charges for any alteration in policy

MORTALITY & contract
OTHER RISK BENEFIT CHARGE revival charge is Rs 500
preminum redirection is Rs 100
FUND MANAGEMENT CHARGE 1.6% for aggressive growth

3% in yr 4,2% in yr 5,1% in yr 6 and 0% from yr 7
PARTIAL WITHDRWAL onwards
SWITCHING CHARGE Rs 500 after 4 free switches
3% in yr 4,2% in yr 5,1% in yr 6 and 0% from yr 7

SURRENDER CHARGE onwards
MISCELLANEOUS CHARGE annual fund management charges would

not increase 40% of the initial level
policy administration charges would
not increase 5% from the original level
COMPANY HDFC STANDARD LIFE
POLICY NAME UNIT LINKED ENDOWMENT
FUND ALLOCATION 1)LIQUID FUND(low risk profile)

100% in bank deposits
2)SECURE MANAGED FUNDS(low moderate)
100% in govt. securities and bonds
3)DEFENSIVE MANAGED FUND(moderate)

70-85% in govt securities and bonds,15-30% in equity
4)BALANCED MANAGED FUND(high risk profile)

40-70% in govt securities and bonds, 30-60% in equity
5)EQUITY MANAGED FUND(very high risk profile)

0-40% in govt securities and bonds, 60-100% in equity
6)GROWTH FUND(very high risk profile)

100% in equity
CHARGES
PREMIUM ALLOCATION
CHARGE
( in %age) upto 1,99,999 30%(1st&2nd yr) 1%(>3yrs)
2,00,000-4,99,999 20%(1st&2nd yr) 1%
(>3yrs)
5,00,000-9,99,999 15%(1st&2nd yr) 1%
(>3yrs)
10,00,000-19,99,999 10%(1st&2nd yr) 1%
(>3yrs)
>20,00,000 5%(1st&2nd yr) 1%
(>3yr)
POLICY ADMINISTRATION Rs 20 per month

CHARGE
MORTALITY & NA
OTHER BENEFITS RISK
CHARGES
FUND MANAGEMENT CHARGE 0.80% of fund value
PARTIAL WITHDRWAL 6 partial withdrawls free and

additional will cost Rs250per request
SWITCHING CHARGE after the 24 free charges additional

charges will cost Rs100 per switch
SURRENDER CHARGE 30% of the difference between regular

premiums expctd& received in the first 2 yrs
MISCELLANEOUS CHARGE after 12 free premium redirection requests

additional will be charged Rs 250 per request
after 6 free policy serving requests
additional will be charged Rs 250 per requests
COMPARISON OF TALIC WITH OTHERS
PENSION PLAN (SINGLE PREMIUM)

PENSION PLAN (REGULAR PREMIUM)
Arou
REGULAR P
Part I-Pru LIC

Life time Super
Plan Name pension(RP) Market Plus (RP
Issue Age Min - 11 years Max - Min Age - 11

6 6 years - 6 6 (with life c
Term Min 66 years Min 6 years

Bajaj Allianz New UnitGain
Min Prem Rs. 66 ,666 /- annually; Annual - 6 , 6 6 6
1111 half yearly; 11 1
monthly/-
 Everything changes with time. At Bajaj Allianz Life Insurance, it’s no
different. Keeping in line with changing trends and new horizons, Bajaj
Allianz Life Insurance presents ‘Bajaj Allianz New UnitGain Plan’.
 Presenting an investment plan that provides the best returns possible
for every rupee you invest.
 The plan is structured to provide a secure life cover and extraordinary
benefits aligned with our commitment to give you ‘the ultimate
investment plan.’
Key highlight of Bajaj Allianz New UnitGain
 Your investment, apart from normal allocation, receives Loyalty Units

equivalent to 51% of First Year’s Annualized Premium over a period of
10 years.
 Seven investment funds to choose from with unmatched flexibility to
manage your investments better.
 You policy continues to participate in investment performance of the
fund(s). Even if you are not able to pay 3 full years premium
 Maximum flexibility
 Option to increase premium.
 Partial withdrawals anytime after three years from the commencement
of policy, provided three full years premiums are paid.
 Three free switches every year.
 Option to pay unlimited top up premiums anytime during the tenure of
your policy to further enhance your savings.
 You have three simple terms to choose from – 15, 20 and 25 yrs.
 Guaranteed Life Cover, with a flexibility to choose insurance cover
according to your changing needs.
How does the plan work?
 Premiums paid by you, net of premium allocation charge, are invested

in fund(s) of your choice and units are allocated depending on the unit
price of the fund(s). The value of your policy is the total value of units
that you hold in the fund(s). The insurance cover charges, policy
administration charges and the additional rider benefit charges (if any)
are deducted through monthly cancellation of units. Fund Management
Charge is priced in the unit value.
Death Benefit
 On death occurring before the age of 7 years: The death benefit will be
the fund value as on date of receipt of intimation of death at the office.
 On death after the age of 7 years and before the age of 60 years: The
benefit payable would be the sum assured less value of partial
withdrawals made in the last 24 months prior to the date of death or
the fund value as on date of receipt of intimation of death at the
Company’s office, whichever is higher. The death benefit payable would
be calculated separately for regular premiums and top up premiums.
 On death of the life assured on or after attaining the age of 60 years:
The benefit payable would be the sum assured less value of partial
withdrawals made, within 24 months before attaining age 60 years and
all partial withdrawals made after attaining age 60 years or the fund
value as
 on the date of receipt of intimation of death at the office, whichever is
higher. The death benefit would be calculated separately for regular
premiums and top up premiums.
 If three years regular premium has not been paid and the policy has
lapsed, fund value as on date of receipt of intimation of death at the
Company’s office will be paid on death of the life assured.
 The policy will terminate upon payment of death benefit.
Maturity Benefit
 On Maturity, the Fund Value in respect of regular premium and top up

premium, if any, will be paid and the policy will terminate.
Surrender Benefit
 The surrender value of the policy will be equal to the fund value less
surrender charge, if any.
 Anytime after three years from the date of commencement of the
policy, you have the option to avail of surrender benefit by complete
surrender of units.
 The policy will terminate upon payment of surrender value.
Additional Rider Benefits available
 The following additional rider benefits in the form of rider can be availed
at the option of the policyholder.
 UL Accidental Death Benefit Rider (UL ADB)
 UL Accidental Permanent Total/ Partial Disability Benefit Rider (UL
APT/PDB)
 UL Critical Illness Benefit Rider (UL CI)
 UL Hospital Cash Benefit Rider (UL HCB)
 UL Waiver of Premium Benefit (UL WOP)
 UL Family Income Benefit (UL FIB)
 (Please refer to the additional rider benefits brochure for more details.)
 You have the flexibility to add or remove the riders at any policy
anniversary subject to rider terms and conditions.
Fund Value:
 The fund value is equal to the number of units under this policy
multiplied by the respective unit price on the relevant valuation date
Unit Price:
 The unit price of each fund is arrived at by dividing the Net Asset Value
(NAV) of the fund by the number of units existing in the fund at the
valuation date (before any new unit is allocated or cancelled)
Valuation Date:
 The Company aims to value the Funds on each day the financial
markets are open. However, the Company reserves the right to value
less frequently in extreme circumstances, where the value of the assets
may be too uncertain. In such circumstances, the Company may defer
valuation of assets until a certainty on the value of assets is resumed.
The deferment of valuation of assets will be subject to prior consultation
with IRDA.
 Currently, the cut-off time is 3.00 p.m. for applicability of Unit Price of a
particular day for switches, redemptions and publication of Unit Price.
Computation of NAV:
When Appropriation price is Applied:
 The NAV of a fund shall be computed as Market value of investment
held by the fund plus the expenses incurred in the purchase of the
assets plus the value of any current assets plus any accrued income net
of fund management charges less the value of any current liabilities less
provision, if any. This gives the net asset value of the fund.
 Dividing by the number of units existing at the valuation date (before
any new units are allocated), gives the unit price of the fund under
consideration. This is applicable when the company is required to
purchase assets to allocate units at the valuation date.
When Expropriation price is applied:
 The NAV of a fund shall be computed as Market value of investment

held by the fund less the expenses incurred in the sale of the assets
plus the value of any current assets plus any accrued income net of
fund management charges less the value of any current liabilities less
provision, if any. This gives the net asset value of the fund. Dividing by
the number of units existing at the valuation date (before any units are
redeemed), gives the unit price of the fund under consideration. This is
applicable when the company is required to sell assets to redeem units
at the valuation date.
Investment Options:
 Bajaj Allianz offers you a choice of seven (7) investment funds as given
below
• Asset Allocation Fund– Risk Profile – High
• Liquid Fund - Risk profile – Low
• Bond Fund - Risk profile – Moderate
• Equity Growth Fund - Risk profile - Very High
• Equity Index Fund II - Risk profile – High
• Accelerator Mid-Cap Fund - Risk profile - Very High

• Pure Stock Fund - Risk profile - Very High
Bajaj Allianz New UnitGain Easy Pension Plus RP’ Plan
 With Bajaj Allianz New UnitGain Easy Pension Plus RP you can take
control of your future and ensure a retirement you can look forward to.
 Early retirement from work is every ones dream; you want your saving
and investment to grow fast so you don’t have to work for money
anymore and enjoy every moment of being with your loved one’s.
 The New UnitGain Easy Pension Plus RP is a retirement plan that helps
you retire with laughter lines. This unitlinked pension plan gives you the
advantage of investing in securities making your savings grow faster so
you can retire earlier.
What are the benefits available?
 The plan works in two parts – the deferment period and the annuity
period. During the deferment period, the plan builds up the funds. The
deferment period ends at the vesting date. You are free to choose your
age of retirement (vesting date) between 45 and 70 years. After the
vesting date, the annuity payments begin.
 The benefits on Vesting Date (the date you choose to retire)
 The Fund Value as on the vesting date will be used to purchase an
immediate
 annuity, at rates prevailing at that point of time.
 Option to take lump sum: You have the option to take up to 1/3rd of
the Fund
 Value as a lump sum. This amount would be tax free in your hand, as
per current
 tax laws. The balance amount will be used to purchase an immediate
annuity.
 Open Market Option: You have the option to purchase an immediate

annuity
 from Bajaj Allianz or from any other life insurer as recognised by IRDA.
If the
 immediate annuity is purchased from Bajaj Allianz, the amount
available for
 purchase of the annuity will be marked up as applicable in the
immediate
 annuity product available on that time.
 There will be a minimum instalment of annuity from Bajaj Allianz
depending on
 the immediate annuity product available on that time. The annuity
frequency
 may be changed to make each instalment more than the minimum
requirement.
 If it still below the minimum, the Fund Value may be paid in a lump
sum, if
 permissible, subject to applicable tax laws.
Assurance – for your family
 In the unfortunate event of death during the deferment period, your

spouse will have the option to take the Fund Value as a lump sum or
purchase an annuity to get regular income for life. For the immediate
annuity, your spouse will have the Open Market Option as well. The
immediate annuity from Bajaj Allianz will be available only if the spouse
is above 45. If age were below 45, the Fund Value would be paid out.
 Annuity options:
 You will be able to choose from all immediate annuity products offered
by Bajaj Allianz Life insurance at the vesting date. The annuity products
currently available are:
 Annuity for Life
 Annuity for Life with 5, 10, 15 or 20 years certain payout
 Annuity for Life with Return of Capital
 You also have the open market option to purchase immediate annuity.
How does the ‘Bajaj Allianz New UnitGain Easy Pension Plus RP’
Plan work?
 The premiums paid are invested in a fund(s) of your choice (depending

on the allocation rate) & units are allocated depending on the price of
units for the fund(s). The value of your policy is the total value of units
that you hold in the fund(s). The policy administration charges are
deducted through cancellation of units. The Fund Management Charge
is priced in the unit value.
Fund Value :
 The Fund Value is equal to the number of units under this policy
multiplied by the unit price of the units on the relevant valuation date.
Unit Price:
 The unit price of each fund is arrived at by dividing the Net Asset Value
(NAV) of the fund by the number of units existing in the fund at the
valuation date (before any new unit is allocated or cancelled)
Valuation Date:
 The Company aims to value the Funds on each day the financial
 markets are open. However, the Company reserves the right to value
less frequently in extreme circumstances, where the value of the assets
may be too uncertain. In such circumstances, the Company may defer
valuation of assets until a certainty on the value of assets is resumed.
The deferment of valuation of assets will be subject to prior consultation
with IRDA.
 Currently, the cut-off time is 3 p.m. for applicability of Unit Price of a
particular day for switches, redemptions and publication of Unit Price.
Computation of NAV:
 The NAV of a Unit Linked Life Insurance Product shall be computed as:
Market value of investment held by the fund plus the expenses incurred
in the purchase of the assets plus the value of any current assets plus
any accrued income net of fund management charges less the value of any
current liabilities less provision, if any. This gives the net asset value of the
fund. Dividing by the number of units existing at the valuation date (before
any new units are allocated), gives the unit price of the fund under
consideration.
 This is applicable when the company is required to purchase assets to
allocate units at the valuation date.
When Expropriation price is Applied:
 The NAV of a Unit Linked Life Insurance Product shall be computed as:
Market value of investment held by the fund less the expenses incurred
in the sale of the assets plus the value of any current assets plus any
accrued income net of fund management charges less the value of any
current liabilities less provision, if any. This gives the net asset value of
the fund. Dividing by the number of units existing at the valuation date
(before any units are redeemed), gives the unit price of the fund under
consideration.
 This is applicable when the company is required to sell assets to redeem
units at the valuation date.
Investment Options:
 Bajaj Allianz offers you a choice of 6 funds. You can choose to invest
fully in any one fund or allocate your premiums into the various funds in
a proportion that suits your investment needs. All the funds will be
managed by asset managers of Bajaj Allianz, backed with the rich
experience of Allianz SE, one of the largest asset managers in the world
today, managing assets worth over a Trillion Euros (over Rs. 55,00,000
crores).
The six funds offered are as under:
• Liquid Pension Fund- Risk Profile – Low :

• Bond Pension Fund- Risk Profile – Moderate :
• Equity Growth Pension Fund- Risk Profile – Very High
• Equity Index Pension Fund II- Risk Profile –High
• Pure Stock Pension Fund – Risk Profile – Very High :
Flexibility - to pay top ups:

 You may have received a bonus or some lump sum money. You can use
that to
 increase your investments in your policy provided you have paid all due
regular
 premiums.. 98% of any amount paid as top-up is allocated to your
funds.
Flexibility – to increase the level of Regular Premium Payment:
 Your earnings grow over time, and so does your savings potential. With
Bajaj Allianz, you have the flexibility to increase your regular premium
amount
 Fund Management Charge will be 1.75% p.a. of NAV for Equity Growth
Pension Fund, Accelerator Mid-Cap Pension Fund and Pure Stock
Pension Fund, 1.25% p.a. of the NAV for Equity Index Pension Fund II,
0.95% p.a. of the NAV for Bond Pension Fund and 0.95% p.a. of NAV
for Liquid Pension Fund.
 • Switching Charges: Three free switches would be allowed every year.

Subsequent switches would be charged @ 5% of switch amount or Rs.
100, whichever is lower
 • Allocation: A portion of the premium paid will be charged towards

expenses in
 the initial years. Accordingly, the allocation to your fund will be will be
as follows:
 Annual Premium size
 Premium Payment due in
 Policy Year 1 Policy Year 2 onwards
 10,000 – 24,999 84% 98%
 25,000 – 49,999 86% 98%
 50,000 – 99,999 88% 98%
 100,000 – 499,999 90% 98%
 500,000 and above 92% 98%
 The allocation of top ups would be 98%.
 Surrender Charge If first three years regular premiums are not paid
and the policy is lapsed, the Surrender Charge on regular premium unit
value would be 100% of the first years annualised Allocated Premium.
 If first three years regular premiums have been paid in full, the scale of
Surrender
 Charge applicable on regular premium unit value would be as follows:
 Policy Year Surrender Charge
 4 5%
 5 2%
 6 and above No Charge
 The Surrender Value would be payable after three policy years. Further,
if first three years regular premiums have not been paid and the policy
is lapsed, the Surrender Value, if any, would be payable at the expiry of
the revival period or three policy years, whichever is later.
 No surrender charge will be applied in case of complete surrender of
units in respect of Top Up Premium.
IN THIS POLICY, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO IS

BORNE BY THE POLICY HOLDER”
“Bajaj Allianz YoungCare Plus’’
Bajaj Allianz Life Insurance presents a plan that takes care of you and the ’
financial requirements’ of your loved ones after you. ’Bajaj Allianz YoungCare
Plus’ offers you a unique way to reassure yourself that you have
taken care of the ones you cherish. With this unique policy that allows your
loved ones to live comfortably, even if something were to happen to you. ….
‘’Bajaj Allianz YoungCare Plus’’ insures a safe financial future with prospects
of attractive returns and guaranteed life cover. Only to make sure that when
your life changes, your plans can still stay the same as always.
A plan that’s made ‘Just for you’
• Gift of a lifetime to your loved one, who has been nominated by you to
receive the benefits under the policy.
• Loyalty Units to enhance your fund value every year from the sixth policy
year.
• Get a guaranteed Sum Assured plus we will continue to pay premium on
your behalf, in case of your unfortunate death or on being diagnosed to be
suffering from specified Critical Illnesses, whichever occurs first
• Your policy continues to participate in investment performance of the
fund(s) till maturity even after the payment of Sum Assured as part of death
or critical illness benefit.
• An ‘Asset Allocation Fund’ looks after your investments even when the
market conditions change. Our experienced fund managers monitor the mix
of assets in the fund and manage the mix in such situations to maximize your
returns.
• Also if you want to manage the mix of assets for your policy on your own,
you have a choice of 5 other investment funds, with complete flexibility to
switch money from one fund to the other to manage your investments better.
• Your policy continues to participate in investment performance of the
fund(s) even if you are not able to pay the premium for first 3 full years.
• Flexibility of partial withdrawals at any time after three years from
commencement of the policy provided first three full years’ premiums are
paid.
• Option to pay top up premiums anytime during the tenure of your policy to
further enhance your savings
• Option to choose UL Accidental Permanent Total/Partial Disability Benefit as
an additional rider benefit to provide assurance to your family.
How does the plan work?
Premium paid by you, net of the premium allocation charge, if any, are
invested in fund(s) of your choice and units are allocated depending on the
unit price of the fund(s). The fund value of your policy is the total value of
units that you hold in the fund(s). The insurance cover charges, policy
administration charges and the additional rider benefit charges (if any) are
deducted through monthly cancellation of units. Fund Management Charge is
priced in the unit value.
“Bajaj Allianz YoungCare Plus’ offers you the following cover:
Your Sum Assured is always equal to Half of the Policy Term times Annualized
Premium
Death / Critical Illness Benefit

• In case of death or diagnosis of critical illness of the life assured, whichever
occurs first, the following benefit shall be payable:
– Sum Assured payable immediately.
– All future regular premium falling due from the date of death or date of
diagnosis of critical illness, whichever occurs first, till the end of the policy
term shall be allocated by the company to the various funds, as had been
chosen by you, on the premium due dates.
The policy will continue with nil Sum Assured till maturity after the death or
earlier occurrence of critical illness of the life assured or till early surrender of
the Policy. After the death of the life assured, the nominee or appointee, if
nominee is minor, shall have right only to receive policy proceeds by way of
partial withdrawal, surrender or whole fund value at maturity date.
• If the company has already paid the above benefits on critical illness, then
nothing is payable on death of the life assured.
• If first three years regular premium has not been paid and the policy has
lapsed, then the benefit payable on death or critical illness of the life assured,
whichever occurs first, will be the fund value and in such case, the policy will
terminate
Critical Illness means First Heart Attack, Coronary Artery Disease (requiring
Surgery), Stroke, Cancer, Kidney Failure, Major Organ Transplant, Multiple
Sclerosis, Aorta Graft Surgery, Primary Pulmonary Hypertension, Alzheimer’s
Disease and Paralysis.
Maturity Benefit
On maturity, the fund value will be paid to the policyholder, or in case of

death of life assured to the nominee.
Surrender Benefit
• The surrender value of the policy will be equal to the fund value less
surrender charge, if any.
• Anytime after three years from the date of commencement of the policy,
provided due premiums for first three policy years have been paid, you have
the option to avail surrender benefit by complete surrender of units.
• Further, if first three years regular premiums have not been paid and the
policy has lapsed, the surrender value, if any, would be payable at the expiry
of the revival period or at the end of third policy year, whichever is later.
Computation of NAV:
The NAV of a fund shall be computed as the market value of investment held
by the fund plus the expenses incurred in the purchase of the assets plus the
value of any current assets plus any accrued income net of fund management
charges less the value of any current liabilities less provision, if any. This
gives the net asset value of the fund.
Dividing by the number of units existing at the valuation date (before any
new units are allocated), gives the unit price of the fund under consideration.
This is applicable when the company is required to purchase assets to allocate
units at the valuation date.
When Expropriation price is applied:
The NAV of a fund shall be computed as the market value of investment held
by the fund less the expenses incurred in the sale of the assets plus the value
of any current assets plus any accrued income net of fund management
charges less the value of any current liabilities less provision, if any. This
gives the net asset value of the fund. Dividing by the number of units existing
at the valuation date (before any units are redeemed), gives the unit price of
the fund under consideration. This is applicable when the company is required
to sell assets to redeem units at the valuation date.
Investment Options:
We offer you a choice of six (6) investment funds as given below.
• Asset Allocation Fund– Risk Profile – High
• Liquid Fund - Risk profile – Low
• Bond Fund - Risk profile – Moderate
• Equity Growth Fund - Risk profile - Very High
• Equity Index Fund II - Risk profile – High

Assurance for you
Even if you forget to pay your premium, after three years’ regular premiums
are paid, you have an option to continue the policy for full insurance cover.
Under this option, the policy will be kept in force by cancellation of units at
the prevailing unit price to meet all the charges, provided the value of the
units in respect of regular premium less surrender charges does not fall to an
amount equivalent to one annual premium under the policy.
Partial withdrawal option
Anytime after three years from the date of commencement of the policy
provided regular premiums for three full years’ have been paid, you / your
nominee have the option to partially withdraw units from fund(s) subject to
following conditions:
• The minimum amount of withdrawal is Rs.5,000.
• Maximum partial withdrawal allowed shall be equal to fund value minus two
annual premiums which means a minimum fund value of two annual
premiums needs to be maintained at any given time.
• All partial withdrawals will be first made from eligible top up premium units,
if any. Once the top up premium units are exhausted, further partial
withdrawals will be made from regular premiums units.
• For the purpose of partial withdrawals, each payment of top up premium
shall have a lock-in period of three years, unless the payment of top up
premium is made in the last 3 policy years.
• No charge is applicable on partial withdrawals either from top up premium
units or from regular premium units
• We may vary the minimum value of units at NAV to be withdrawn and/or
the minimum balance of value of units to be maintained after such partial
withdrawals subject to prior approval from IRDA.
• After the death of life assured, the nominee or appointee if nominee is
minor shall be allowedto make one partial withdrawal only during a policy
year up to maximum of 25% of the existing fund value.
Important Details of the Bajaj Allianz YoungCare Plan
Parameter Details
Minimum Age at Entry 18
Maximum Age at Entry Age attained 60 / In case UL APTPDB rider has been
chosen, maximum entry age is 50 years attained
Maximum Maturity Age 70 years
Additional Rider Benefit Ceasing Age 65 years for UL APTPDB
Minimum Term 10 years.
Maximum Term 30 years or Age at entry less Maximum Maturity
Age of 70, whichever is less
Minimum Premium Rs 20,000 per yearly installment,
Rs 10,000 per half-yearly installment,
Rs. 5,000 per quarterly installment
Rs 2,000 per monthly mode
(Monthly mode is available through ECS and
• Salary Saving Scheme only).
Minimum Top Up Premium is Rs. 5,000.
*You can change the premium payment mode on any policy anniversary.
Free Look Period
Within 15 days from the date of receipt of the policy, you have the option to
review the terms and conditions and return the policy, if you disagree to any
of the terms & conditions, stating the reasons for your objections. You will be
entitled to a refund of the premium paid, subject only to a deduction of a
proportionate risk premium for the period on cover and the expenses incurred
on medical examination and stamp duty charges. The refund paid to you will
also be reduced or increased (as applicable) by the amount of any reduction
or increase in the fund value, if any, due to a fall or rise in the unit price
between the date of allocation and redemption of units (without reference to
any premium allocation rate or charges).
Days of Grace
A grace period of 30 days for the yearly, half yearly and quarterly modes and
of 15 days for the monthly mode is allowed under the policy. Your policy
remains in force for all insurance covers, if any, even if the due premiums are
not paid during this period.
Revival of the Policy
It is possible to revive a policy that has lapsed due to non-payment of

premiums within 2 years from such date of lapse. You have to give a written
application to the company to revive the policy with all due unpaid regular
premiums. The revival will be effected subject to underwriting. We may
disallow the revival of the policy on the original terms and conditions
Termination Conditions
This policy shall automatically terminate on the earlier occurrence of either of

the following events:
• The units in the policy are fully surrendered;
• The fund value in respect of regular premium less surrender charge falls to
an amount equivalent to one annual premium provided regular premiums
have been paid for first 3 full years;
• Upon the policy remaining lapsed for two years or remaining lapsed till the
end of the third policy anniversary, whichever is later;
• On death of the life assured provided the policy has lapsed;
• On the maturity date.
Fund Access – Loan
Loan is not available under this plan.
Tax Benefits
Premiums paid and benefits received will be eligible for tax benefits as per
applicable tax laws.
As per the current tax laws:
• Premiums payable are eligible for tax benefits as per Section 80C of the
Income Tax Act.
• Partial Withdrawals, Surrender Value, Death Benefit and Maturity Benefit
are eligible for tax benefits as per Section 10(10D) of the Income Tax Act.
• The charge paid for UL APTPDB rider benefit is eligible for tax benefits as
per Section 80(D) of the Income Tax Act.
• In case of change in any tax laws relevant to you or the fund performance,
the same will be applied as per regulations prevailing at that point of time
Death Benefit Exclusion

In case the life assured commits suicide within one year of the date of
commencement/revival of the policy, the amount payable would be the value
of the units in your account.
Charges Under the Plan
• Policy Administration Charge:
Rs. 630 per annum inflating at 5% every 1st of April will be deducted at each
monthly anniversary by cancellation of units.
• Fund Management Charge
1.75% p. a. of the NAV for Equity Growth Fund and Accelerator Mid-Cap
Fund, 1.25% p.a. of the NAV for Equity Index Fund II and Asset Allocation
Fund, 0.95% p.a. of the NAV for Bond Fund and Liquid Fund. The Fund
Management Charge is charged on a daily basis and adjusted in the unit
price.
• Premium Allocation Charge:
Annual Premium size Premium Allocation Charge for Premium Payment due in
(Rs.) Policy Year 1 Policy Year 2 to 10 Policy Year 11 and above
20,000 – 99,999 60% 3% Nil
100,000 – 1,99,999 55% 3% Nil
2,00,000 – 4,99,000 50% 3% Nil
5,00,000 – 9,99,999 35% 3% Nil
10,00,000 and above 25% 3% Nil
All Top up premiums have a premium allocation charge of 2%.
• Fund Switching Charges:

Three free switches would be allowed every year. Subsequent switches would
be charged @ 5% of switch amount or Rs. 100, whichever is lower, on each
such occasion.
• Miscellaneous Charge:
The miscellaneous charge would be Rs.100/- per transaction in respect of

reinstatement, alteration of premium frequency or mode, decrease in regular
premium or issuance of copy of policy document
• Surrender Charge:
– If any due regular premium is not paid within the grace period in the first
three policy years, the surrender charge will be 60% of the first years’
Annualized Premium.
– If first three years regular premiums have been paid in full, the surrender
charge will be as follows:
[1 – (1/1.10)^N ] * First Years’ Annualized Premium.
where N is 10 years less the elapsed policy duration in years and fraction
thereof. This surrender charge is applied during the first 10 policy years only.
– No Surrender Charge will be applied on units in respect of Top Up
Premium.
• Mortality Charges:
– The mortality charge would vary according to the gender and attained age
of the life assured at the time of deduction of the charge.
– This charge would be recovered through cancellation of units on a monthly
basis and would be applied on sum at risk which is equal to the sum assured
plus 0.86364 * sum of future regular premiums falling due till outstanding
premium term
– Sample standard mortality charges per annum per thousand of sum at risk
for male lives are given in the table below:
Age 20 30 40 50
Mortality Charge per annum per thousand of
sum at risk for male lives 1.12 1.29 2.37 6.08
• Rider Premium Charges:

– The rider premium charge will be deducted for UL Accidental Permanent
Total / Partial Disability Benefit Rider (if opted for by you)
– This charge would be recovered through cancellation of units on a
monthly basis
–
Revision of charges
After taking due approval from the IRDA, we reserve the right to change the
following charges:
• Fund Management Charge up to a maximum of 2.75% p.a. of the NAV for
the Equity Growth Fund and Accelerator Mid-Cap Fund, 2.25% p.a. for the
Equity Index Fund II and Asset Allocation Fund, 1.75% p.a. for the Bond Fund
and Liquid Fund.
• Switching charge upto a maximum of Rs.200 per switch or 5% of the
switching amount, whichever is lower.
• Miscellaneous charge upto a maximum of Rs.200/- per transaction
If you disagree with the charges, you will be allowed to exit the plan at the
prevailing unit price after applying surrender charge, if any.
the policy according to your requirements.
BIRLA SUNLIFE INSURANCE PRODUCTS

Birla Sun Life Insurance Simply Life
In This Policy, The Investment Risk In Investment Portfolio Is Borne

By The Policy holder
Highlights
 Contribution guarantee
 Market related returns
 Increasing death benefit
 Tax benefits under section 80 C and sec 10(10D)
 Your dreams are as special as you are. If only an instrument would take
care of both, you and your dreams. Helps you increase your savings
and at the same time be a safe investment. Also secure your family's
future and ensure their well-being. Our “Birla Sun Life Insurance Simply
Life” plan does precisely that and more. It goes a long way in helping
you realize your dreams besides being very convenient to buy. It
ensures a lifetime of Tax free savings and also offers a life insurance
cover that takes care of your near and dear ones.
About BSLI
 Birla Sun Life Insurance Company Limited is a joint venture between

The Aditya Birla Group, one of the largest business houses in India and
Sun Life Financial Inc., a leading international financial services
organisation. The local knowledge of the Aditya Birla Group combined
with the expertise of Sun Life Financial Inc., offers a formidable
protection for your future.
The Aditya Birla Group has a turnover close to Rs. 33000 crores with a
market capitalisation of Rs. 53400 crores (as on 31st March 2006). It
has over 72000 employees across all its units worldwide. It is led by its
Chairman - Mr. Kumar Mangalam Birla. Some of the key organisations
within the group are Hindalco, Grasim, Aditya Birla Nuvo etc.
Sun Life Financial Inc. and its partners today have operations in key
markets worldwide, including Canada, the United States, the United
Kingdom, Hong Kong, the Philippines, Japan, Indonesia, India, China
and Bermuda. Sun Life Financial Inc. had assets under management of
over US$343 billion, as on 31st March,2006. Sun Life Financial Inc. is a
leading performer in the life insurance market in Canada.
The Plan
Birla Sun Life Insurance SimplyLife
8 years - 50 years age as on last birthday

Entry Ages
60 years
Maximum Maturity Age
10 years
Duration of the Plan
Minimum Annual Rs. 10,000

Premium
Maximum Annual Rs. 1,00,000
Premium
Monthly (ECS), Quarterly, Semi Annually & Annually
Payment Frequency
Maturity Benefit The higher of the Fund Value or the aggregate of all the
premiums paid subject to following conditions
• All Premiums are paid; and
• Each premium is paid on or before the expiry of a
period of 60 days from the due date
5 times the annual premium amount

Face Amount
Investment Fund Choice of two investment funds – Balancer and Enhancer
Death Benefit Upon the death of the Life Insured we will pay to the
Nominee or the Policy Owner as the case may be an
amount equal to the total of the Sum Assured and the
Fund Value
Surrender option Any time during the tenure of the policy. There are no
surrender charges from the 7th policy year onwards.
However if the policy is surrendered in the first 3 years
the surrender value will be paid out after the third policy
year
You will have the right to return your policy to us within

15 days from the date of receipt of the policy. We will
pay the Fund Value plus all charges levied till date
(excluding the Fund Management Charge) once we
Free Look Period
receive your written notice of cancellation (along with
reasons thereof) together with the original policy
documents.
Tax Benefit Under Sec 80(C) and Sec 10(10D) of the Income Tax act
How to buy the plan?
 The process to buy this plan is very simple and convenient. All you need
to do is fill out the application form and submit it to your Insurance
advisor along with your age proof and cheque for the first premium. If
you are opting for the monthly premium payment mode (compulsorily
through ECS or Salary deductions or debit or credit card) then you need
to enclose a cheque for the first 2 months premium amount.
Premium Discontinuance
 In case the premium is discontinued within first three Policy Years:

If the premium is not received on the premium due date, a grace period
of 30 days is given. Even at the end of the grace period if the premium
is not received, then the Policy will lapse and all Coverages will
terminate immediately.
If the Policy is not revived within two years from the lapse date, the
Surrender Value as at lapse date will be paid out at the end of the third
Policy Year or at the end of the revival period whichever is later. In case
the Policy is surrendered during the Revival Period, then the Surrender
Value as at lapse date will be paid out at the end of the third Policy Year
or the date of Surrender whichever is later. The Surrender Value will be
calculated by deducting the Surrender Charges applicable on the lapse
date. The Surrender Value will not be affected by the market
fluctuations and will remain constant till the time it is paid out. There
will be no deduction of the Policy Charges (as set out in the Policy
Charges section) thereafter, from the Surrender Value.
If the life insured dies while the policy is not yet revived, we will pay
the Fund Value as of the lapse date immediately and terminate the
contract.
 In case the premium is discontinued after the first three Policy Years:
If all due premiums have been received for the first three Policy Years
and subsequent due premium is not received on the premium due date,
a grace period of 30 days is given. At the end of the grace period if the
premium is not received, you will be given a period of two years to pay
all due and unpaid Policy Premiums. During these two years all
Coverages will continue to be in force and all applicable charges will
continue to be deducted from the Fund Value till the Surrender Value
falls to one Annual Premium. At this time the Policy will be terminated
and the Surrender Value will be paid out.
At the end of the two-year period we will give you an option to continue
the Policy. If you do not opt to continue the Policy, the Policy will be
terminated and the Surrender Value will be paid out.
Risk Factors / Disclaimers
 This is a non-participating unit linked plan.

 This policy is underwritten by Birla Sun Life Insurance Company Limited
(BSLI).
 Birla Sun Life Insurance, SimplyLife, Balancer and Enhancer are only
the names of the Company, Policy and Investment Fund respectively
and do not in any way indicate the quality of the Policy, Investment
Funds or their future prospects or returns.
 The charges mentioned above are applicable to the Investment Fund
Option offered at present.
 All the policy Charges (except Premium Allocation, Surrender Charges
and Mortality Charge) can be modified by the company subject to
approval of the IRDA
 The company reserves the right to introduce new Investment Funds
with different charges subject to approval of the IRDA.
 The value of the Investment Fund Option reflects the value of the
underlying investment.
 These investments are subject to market risks and change in
fundamentals such as tax rates etc affecting the investment portfolio.
 The premium paid in Unit Linked Life Insurance policies are subject to
investment risk associated with capital markets and the NAV of the
units may go up or down based on the performance of Investment Fund
Option and factors influencing the capital market and the insured is
responsible for his/her decisions.
 There is no guarantee or assurance of returns from the Investment
Funds except for the guarantee on return of premiums paid on maturity
subject to fulfillment of conditions mentioned in maturity benefit.
 BSLI reserves the right to recover levies such as the Service Tax levied
by the authorities on insurance transactions
 If there be any additional levies, they too will be recovered from you.
 This brochure contains the salient features of the plan.
 For further details please refer to the policy contract
 Insurance is the subject matter of the solicitation
 For more details and clarification call your BSLI Insurance Advisor or
visit our website and see how we can help in making your dreams come
true.
RESEARCH MEHODOLOGY
Research is a careful critical enquiry or examination in seeking facts or
principles, diligent investigation in order to ascertain something. It is
essentially a systematic enquiry seeking facts through objective verifiable
methods. The methodology which is used to do research is known as the
research methodology.
Research design is arrangement of condition for collection and
analysis of data in a manner that aims to combine relevance to the research
purpose with economy in procedure.
In my summer training I have done exploratory research. I
have explored the subject with the information provided. The basic objective
of my topic was to understand the complete working of the banks. The data
which I have presented in this report is of very relevant nature.
Type of research:
EXPLORATORY:
Type of research carried out was EXPLORATORY in nature; the objective of
such research is to determine the approximate area where the drawback of
the company lies and also to identify the course of action to solve it. For this
purpose the information proved useful for giving right suggestion to the
company.
Data Collection
(A) Primary data
(B) Secondary data
Data used for the research work was primary in nature.
Sample unit: -
The research process was done by interacting with number of customers
during the activities performed, which included, markets, cold calling,
canopies, etc. Sample Design consists of Random Sampling.
Sample size: - 50 people
Method of collection: -
Field procedure for gathering primary data included observation and interview
schedule in which the questionnaires were filed by the interviewer.
Personal interviews through self administered survey was done to collect the
data, market research was undertaken, that was accomplished by performing
various activities designed.
Research Instrument:
Questionnaire
The questionnaire was formulated by keep in mind the following
Points: -
• Giving the respondents clear comprehension of the question.

• Inducing the respondents to co-operate.
• Giving instructions as to what is wanted.
• Identifying the needs to be known.
Limitations:
The following were the limitations that were there during the course of the
study:
1. Limited time period.
2. Less number of respondents.
3. Biasness of the respond
AGE DISTRIBUTION
AGE DIST
33 %
 Highest number of Respondents (41%) from Age group 31 to 45
yrs.
 35% respondents are of age below 30 yrs, small percentage of
which is unemployed.
MARITAL STATUS
33 %
MARITAL STATU
666%
66%
66%
11
 Total number of single respondents – 23
66%
 Total number of married respondents – 77
66%
66%
66% INCOME DISTRIBUTION
66
66%
INCOME DISTR
> 4lacs 6 11
INCOME
 Highest, 16 respondents in income bracket below 1.5 lacs, which
1 - 1 lacs
mainly comprises of age group below 30 years.
6
 Respondents of the age group 31-45 yrs, lie in all the income
slabs.
 Minimum, 6 respondents in income bracket of above 5 lacs,
which are in age group of above 45 years.
6 .6 - 6 lacs
ARE YOU AWARE ABOUT FINANCIAL PLANNING? 11
DO YO
FINAN
 98% of the respondents were aware about Financial Planning.
100
F PEOPLE
90
80
11
70
INVESTMENT PREFERENCE
60
50
INVESTMENT PREFER

6%
21% respondents prefer banks and post office schemes as an
investment tool preference.
66 %
 Respondents of age group below 30 years prefer Mutual
Funds, as they provide higher returns than banking investment
tools.
 Insurance ranks 2nd as an investment tool choice, which
itself includes various protection, saving and pension plans.
 Govt. Bonds & securities are mostly preferred by people of
higher age group rather than young generation.
 Property as an investment option is most lucrative choice.
However it is important to mention that majority of respondents
66 %
are in age group of above 30 years and people with high income
bracket prefers to invest in Real Estate.
NAV ANALYSIS 11 %
DESCRIPTION ABOUT THE FUNDS ( NAV ) OF BIRLA SUNLIFE
INSURANCE:-
NAME CURRENT NAV 1 YEAR AGO NAV
Balancer* 12.83 11.89
Grp FF- | |* 12.81 11.79
Grp F|- |* 13.13 12.42
Grp stable- |* 28.62 27.08
Grp stable- | |* 29.64 27.75
Indv Builder* 20.75 19.40
Indv PP Growth* 16.19 15.89
Indv PP Nourish* 14.23 13.38
Indv Protector* 17.41 16.38
Pletinum Plus 1* 09.89 ……..
Bond Plan | |* 12.39 11.31

NAME CURRENT NAV 1 YEAR AGO NAV
Gratuity+ Bal 10.50 10.50
Health Plus 09.88 …….
Jevan+ Bal 11.83 11.64
Market+ Bal | 10.02 ……..
Market+ Bond | 10.01 ……..
Market+ Secure | 10.01 ……..
Market+ Secure 11.28 11.12
Money+ Growth 09.93 10.11
Money+| Bal 10.05 ……..
Money+| Bond 10.07 ……..
Money+ | Growth 10.19 ……..
Profit+ Bal 09.12 ……...
Profit+ Growth 09.05 ……...
Profit+ Secure 08.73 ………

CONCLUSION
The various conclusions drawn from the project are:

 There has been a tremendous change in the insurance industry. And
with it there has been continuous growth in this sector both in Indian as
well as world context.
 The opening up of the insurance sector has changed the whole look of
the industry.New private player TALIC is leading the sector due to their
strategic management and tailored made project.
 The demand for insurance is likely to increase with rising per-capita
income, rising literacy rates, and growth of service sector. In-fact
opening up of the insurance sector is an integral part of the
liberalization process being persued by many developing countries.
 Life insurance as a form of protection is the single-most important
financial product any earning member of a family must have. Having
said this, a well-diversified portfolio is one of the first rules of financial
planning, and as such one should consider different instruments as the
ability to save increases.
 Possible investment options range from bank deposits and government
small saving schemes to mutual funds, stocks and property.
 Certainly ULIPs successfully combine the first and most important need
of protection, with savings, and hence are an excellent addition to your
portfolio.
 All financial products have a certain amount of risk and charges, be it a
mutual fund, property, or even a bank deposit. It would be unrealistic
to assume that the features and benefits of a ULIP come at no cost,
though the charges are considerably lower than that of a traditional
product.
 In fact, the very reason the product is transparent is because the
customer knows the charges and risks.
 As i have made comparative study of the ULIP funds (NAV ) of different
insurance company, I fund the growth rate of HDFC SLIC is better than
other companies , so investment in these ULIP funds or ULIP plans of
TALIC can give maximum growth to the customer.
During my training, I improved my knowledge about the marketing

techniques, which is beneficial for my future. I got the experience from
different type of customer.
I hope after the study with the help of the
recommendations and the suggestion, this project will not only highlight the
negative areas of the bank but also help it to satisfy the customers. I hope
that this project is complete and satisfactory for my as well as my institution.

RECOMMENDATION
 Positioning insurance as a means to fulfilling one’s duties during one’s

lifetime.
 Fears relating to thefts, ailments, death could be addressed through
‘sensitive’ communication
 Fears relating to claims: Need to promote “trust”. Demonstrating
claim testimonials, positioning as “worry free”.
 Low returns: Reposition insurance as a risk cover, security instrument
rather than a financial investment.
 Lack of understanding: Training of Channels
 To provide quality advice on products best suited
o Lack of Knowledge: Ease of Process, simplifying the product
and the procedure
o Need to promote the quality of awareness
 Need for Branding in Insurance: Branding is more relevant in the
Insurance market which not only faces the problem of securing and
retaining customers in an increasingly competitive marketplace but also
experiences the need for heightened relevance of the brand proposition
in a world where brand has been termed the new religion.
 In rural India, the LIC is especially synonymous with insurance. But in
the
 wake of competition insurance companies have to do a considerable
brand
 building exercise at least in urban India. Adequate time, investment and
 longer-term management of the brand are essential, not only for
success but also
 survival. All brands need to be built around well-differentiated and
 credible positioning that springs from the organization’s history. The
brand must not only be believed but lived by management and
employees.
 Focus on different segments to survive and thrive in a competitive

environment. Each company has to choose its own unique positioning
based on its unique strengths. Below-mentioned positioning alternatives
can be worth considering.
VARIETY-BASED POSITIONING
This type of positioning is based on varieties in products and services
rather than customer segments. It is a sensible strategy for those
companies who have distinctive advantages or strengths in offering certain
products and services. In the insurance industry too, it is possible to
achieve a unique position by focusing on certain category of products.
NEEDS-BASED POSITIONING
This is the most commonly understood positioning and is based on the
differing needs of different groups of consumers. This can be done
successfully if a company has unique strengths to service a group of
customer needs better than others.
The insurance needs of customers vary significantly for different groups of

customers. The insurance needs of young family with small children will be
quite different from that of a family in which the income-earner is close
to retirement. However, in India most of the life insurance companies
have a wide variety of products tailored for different customer needs and
there is no company focusing on a particular customer need.
ACCESS-BASED POSITIONING
Positioning of customers can also be done by the way they are accessible.
That is different groups of customers may be accessible in different ways
even though they may have similar needs. Access is typically a function of
customer geography or customer scale. There is excellent opportunity in
the insurance industry to employ access-based positioning by targeting the
rural insurance sector.
The rural market for life insurance is very different from the urban market
in terms of needs, income levels and distribution (seasonality, for
example), penetration of media and so on. Rural market can be a highly
profitable position if one is able to carefully plan and tailor an entire set of
low-cost activities of advertising, distribution, and product design etc. to
successfully exploit the potential.
GLOSSARY
Accident Benefit
An add-on with a life policy. It compensates a policyholder in the event of
death or injury by accident
Annuity
An investment option that makes a series of regular payments to an
individual in exchange for a premium or a series of premium.
Asset allocation
How your investments are spread across various asset classes
Bonus
The amount paid as return in a ‘with-profit’ policy. The bonus, expressed as a
percentage of the sum assured, is generally declared every year. The amount
is linked to the profits earned by the insurer. Depending on the time of
withdrawal, there are two kinds of bonuses – reversionary and cash. A
reversionary bonus can be encashed only on maturity of the policy; a cash
bonus can be withdrawn when declared
Capital gains
Profit earned from the sale of stocks, mutual fund units and real estate. Long-
term capital gains arise from assets owned for more than a year while short-
term capital gains are made from assets owned for less than a year.
Corpus
The amount of money available with a scheme for investing. If already
invested, the corpus is the current value of the scheme’s portfolio.
Cover
Another word for insurance; it also refers to the amount of insurance.
Critical illness rider

A rider that provides a policyholder financial protection in the event of a
critical illness
Death benefit
The amount payable to the nominee on death of the policyholder. The amount
paid is the sum assured plus benefits applicable (if any) less outstanding
loans.
Endowment plans
An insurance plan that provides a policyholder risk cover and some return on
investment. Usually suitable for the risk-averse
ELSS (equity-linked savings schemes)

Diversified equity funds that additionally offer a tax deduction under Section
80C on investments up to Rs.1 lakh.
Financial planning
It covers the essential elements of a person’s financial affairs and is aimed at
achieving a person’s financial goals.
Group Insurance
An insurance policy taken out by employers to provide life cover to their
employees. Usually the cheapest form of insurance.
Insured
The policyholder: The person who buys an insurance policy
Insurer
The insurance company
Investments
Assets like fixed deposits, post office savings, bonds and stocks that are
acquired for the purpose of earning a return
Liquidity
The quality of assets that can be easily and quickly converted into cash
without any, or significant, loss in value.
Lock-in period
The period of time for which investments made in an investment option
cannot be withdrawn.
Maturity date
The date on which a policy term or fixed-income investment like fixed deposit
or bond comes to an end.
Money-back plans
A variant of endowment plans in which survival benefits are disbursed
through the policy term, rather than in a lump sum at the end.
Net asset value (NAV)

The simplest measure of how a scheme is performing, it tells how much each
unit of it is worth at any point in time. A scheme’s NAV is its net assets (the
market value of the financial securities it owns minus whatever it owes)
divided by the number of units it has issued.
Nominee
The person(s) nominated by the policyholder to receive the policy benefits in
the event of his death.
Pension Plan
Investment products offered by insurance companies and mutual funds that
required the investor to make defined contributions over regular periods,
mostly every year. The contributions are invested according to a pre-decided
investment plan. At retirement, the accumulation is paid out through regular
pay-out options.
Policy
The legal document issued by an insurance company to a policyholder that
states the terms and conditions of an insurance contract.
Policy term
The period for which an insurance policy provides cover
Post office schemes

Also known as Small Savings schemes, they are offered at post offices and
carry the highest returns among fixed income instruments. Government
backing makes these instruments like Public Provident Fund (PPF), National
Savings Certificate (NSC), Kisan Vikas Patra (KVP) and Post Office Monthly
Income Scheme (POMIS) risk-free
Premium
The amount paid by the insured to the insurer to buy cover
Riders
Additional covers that can be added to a life policy, for a cost
Sum assured
The amount of cover taken under a life insurance policy, it is the minimum
amount that will be paid on death of the policyholder during the policy term.
Surrender value
The amount payable by the insurer to the owner of an investment-based plan
in case he opts to terminate the policy after three years (the mandatory lock-
in period) but before its maturity date. The surrender value will be the premia
paid till date minus surrender charges and any outstanding loans due.
Term plans
A plan that provides life cover for a specified period of time, but no return on
the premium paid
Vesting date
In pension plans, it is the date from which the policyholder starts receiving
pension. In children’s plans, it is the date from which a child becomes the
owner of a policy taken out in his name (generally, around his 18th birthday).
Waiver of premium rider

A rider that waives the premia payable on the base policy and other riders in
certain circumstances mostly related to death, disability or injury. An
important feature especially for investment products such as children’s
policies.
Will
A document that designates the assets of a person-both financial and
physical- to various family members and other heirs.
Whole-life plans
Class of life insurance policies that provide cover through your lifetime.
QUESTIONNAIRE
We are conducting a survey on the Unit Linked Insurance Plan (ULIP). We request the
Respondents to provide their valuable views on the same by answering to this
Questionnaire .The information provided by you will be used solely for Academic purpose
and to study the present Market Potential of ULIP.
NAME:…………………… PLACE:…………………………
AGE:
a) 15-20 yrs b) 21-30 yrs
c) 31- 40 yrs d) 41-50 yrs
e) >50 yrs
GENDER:
a) Male b) Female
OCCUPATION:
a) Government Service b) Private Service
c) Business d) Student
e) Others
ANNUAL INCOME:
a) Up to 2lacs b) Between 2-5 lacs
c) 5-7 lacs d) 7-10 lacs
e) Above 10 lacs
1. Are you aware about Unit Linked Insurance Plan (ULIP)?
a) Yes b) No
2. Have you invested in the ULIP of any company; (i) if yes then
please tick the following?
a) ICICI Prudential life insurance b) HDFC Standard Life

c) Bajaj Allianz Life Insurance d) Kotak Life Insurance
e) LIC f) Any other (please specify)
(ii) If No, then would you like to invest in ULIP?
a) Yes b) No
3. What is the reason for investment in the ULIP?
a) Child Education b) Child Marriage

c) Pension d) Income Growth
e) Tax Rebate f) 2 in 1 benefits
4. What is your time horizon when investing in ULIP?
a) Up to 3 yrs b) Between 4 – 7 yrs

c) 7-10 yrs d) 10-15 yrs
e) Over 15 yrs
5. When investing in a ULIP, what would be your preference?
a) Low Risk, Low Gain b) Moderate Risk, Moderate Gain

c) High Risk, High Gain d) No Risk
BIBLIOGRAPHY
Websites:
www.tata-aig.com
www.bimadeals.com
www.bajajallianzinsurance.com
www.irdaindia.org
www.birlasunlifeinsurance.com
www.hdfcinsurance.com
www.businessworldonline.com
www.google.com (search engine)
Other References:
Brochures of various plans

Shrish Pratap Singh

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RESEARCH REPORT

Comparative Study of ULIP Products

TATA-AIG LIFE INSURANCE

Submitted in Partial Fulfillment of the Requirement for

There are number forces that make marketing an endlessly changing

This Project Report has been completed in Partial fulfillment of my

On the successful completion of this project I would like to express my

At first, I owe my debt of thanks to Tata-AIG Life, which gave me an

I wish to extend my deep and sincere gratitude to KRISHAN MURARI

I am also indebted to the Institute, EXCEL SCHOOL OF BUSINESS

Chapter 2. Industry Profile 06

2.1 Insurance Sector 07-16

2.2 Important Milestone In Life Insurance in INDIA) 17-18

2.3 Current Scenario of Insurance Industry 19-20

2.4 Swot analysis of Insurance industry 21-23

2.5 Knowledge Management 24-27

2.6 Unit Linked Insurance Plans (ULIPs) 28-33

Chapter 3 Company Profile 35

Chapter 4 Comparative Study of ULIP Produt Of Tata-AIG 56

Chapter 5 Research Methodology 69-70

Finally, interesting conclusions were drawn out of the data collected

It was great experience because selling an insurance product

 To find out the awareness of TALIC product among the

 To find out the factors affecting the purchase of TALIC products.

 To find out which bank is being preferred by the customer.

 To find out the purpose of taking TALIC products.

 To find out the better funds (ULIP) available in the market

 To provide products with maximum values to customers in

 Ensure to retain staffs that are key resource.

 To further enhance the distribution network for provide the

Scope of the Project

 This project gives interesting and challenging task to acquire the

knowledge of Mutual Funds and ULIP product with the help of

different plans and schemes of TATA AIG.

 This project gives information to the individual investor about the

 This report provides the sufficient knowledge about the product

portfolio and its asset allocation.

 Analyzing various funds and their growth.

Together with banking services, it adds about 7 percent to the country’s

Important milestones in the general insurance business in India

1957: General Insurance Council, a wing of the Insurance Association of

1972: The general insurance business in India nationalized through The

Prior to liberalization of Insurance industry, Life insurance was

In 1993, Malhotra Committee headed by former Finance Secretary and RBI

The insurance industry provides protection against financial losses resulting

Direct carriers are responsible for the initial underwriting of insurance

Direct insurance carriers offer a variety of insurance policies.

Life insurance provides financial protection to beneficiaries—usually spouses

Disability insurance supplies a preset income to an insured person who is

An Annuity (a contract or a group of contracts that furnishes a periodic

Liability insurance shields policyholders from financial responsibility for

What is Life Insurance?

A Term insurance product provides a fixed amount of money on death

A Whole Life insurance product provides a fixed amount of money on

An Endowment Assurance product provided a fixed amount of money

An Annuity product provides a series of monthly payments on stipulated

Life insurance products could be purchased from registered life insurers

Stage 1 : Young and Single

o Save for a home and wedding

Stage 2 - Just Married

Marriage brings about a significant change. New dreams and new

o Planning for home / securing your home loan