TOPIC LIFE INSURANCE SUBMITTED BY POONAM SHARMA T.Y.B.C.B.I (VI SEMESTER) PROJECT GUIDE Prof.

AMRITA DEODHAR SUBMITTED TO UNIVERSITY OF MUMBAI RAJASTHANI SAMMELANS

Ghanshyamdas saraf college Affiliated to university of Mumbai ACCREDITED BY NAAC WITH A GRADE & Durgadevi saraf junior college (ARTS & COMMERCE) S.V. Road, Malad (W) Mumbai: 400064 Year: 2011-2012

RAJASTHANI SAMMELANS Ghanshyamdas saraf college Affiliated to university of Mumbai ACCREDITED BY NAAC WITH A GRADE & Durgadevi saraf junior college (ARTS & COMMERCE) S.V. Road, Malad (W) Mumbai: 400064

CERTIFICATE
I prof. Amrita deodhar here by certify that Ms. Poonam sharma a student of Ghanshyamdas Sarf College of T.Y.B.C.B.I(SemesterVI) has completed project on life insurance in the academic year 2011-2012. This information submitted is true and original to the best of my knowledge.

External examiner: Date:

Principal:

Project co-ordinator: Date:

College seal:

ACKNOWLEDGEMENT
I take this opportunity to thank the UNIVERSITY OF MUMBAI for giving me chance to do this project. I express my sincere gratitude to the principal, chief course coordinator Mrs. Bhanukrishnan madam, guide Prof. Amrita deodhar and our librarian and other teachers of their constant support and helping for completing the project. I am also grateful to my friends for giving support in my project. Lastly, I would like to thank each and every person who helped me in completing the project especially MY PARENTS.

DECLARATION
I Miss Poonam sharma a student of ghanshyamdas saraf College of arts and commerce, malad (w) T.Y.B.C.B.I. (SEMESTER VI) hereby declare that I have completed project on LIFE INSURANCEin the academic year 2011-2012.This information submitted is true and original of my knowledge.

Date:

Signature of student

Index Sr. No.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19

Topic

Page no.

Executive summary 01 Introduction of life insurance 02-04 History of life insurance 05-06 Principles of life insurance 07-08 Advantage of life insurance 09-10 Role/ importance of life insurance 11-15 Kinds of life insurance policies 16-20 Overview of life insurance sector in India 21-22 IRDA 23-26 Players in Indian life insurance market 27 Market share 28-29 Marketing mix 30-40 The other competitors in the market 41-50 Insurance marketing 51-53 New strategy of life insurance company 54-55 Some of the important milestones in the life insurance business in I 56-57 Case study 58 Conclusion 59 Research/findings 60

Life insurance

The New strategy of Life Insurance Company

Life insurance business strategy is to be a clear leader in helping our customers grows their assets and health. This will be achieved by offering a superior range of long term savings, investment and protection products in markets that offer significant opportunities growth. With this strategy, life insurance will continue delivering growth and value, leveraging the benefits from its composite model. This should enable the group to achieve its ambition to be a market leader for its customer and shareholders and to become the worlds most trusted insurance company. Understanding and meeting the evolving needs of our customers. Across life, we are investing to gain superior understanding of our customer as a key differentiator. In additional to the specific work done by business units, the group undertakes every year a survey across many countries to track customers changing needs and attitude. This provides valuable insights to support our products. Working closely with business partners to deliver efficient and effective distribution channels. Life continues with its proven multi distribution capabilities in long term savings. This notably includes bancassurance where life has built a leading position throughout the world. To meet this objectives, the strategic focus is on: 1) understanding and meeting the evolving needs of our customers; 2) working closely with business partners to deliver efficient and effective distribution channels; 3) building profitable business in selected areas where we have, or can achieve, market leading positions;

4) using brands to widen our leading position; 5) delivering growth organically and through carefully selected acquisitions designed to increase shareholder value; 6) using our scale to deliver benefits, including cost-competitions;
7) attracting, motivating and retaining talented people who are

committed to lifes values and ambitions. 8) Life aims at maximizing and leveraging synergies, size and skill across the group to reduce costs strategically and to improve efficiency across business. Life has been able to rapidly establish its presence in thee Indian marketing and product strategy.

Conclusion
Life insurance is not merely an investment or a saving device much more than that. In any other investment or mutual fund or shares and stock etc. amount of funds available at any time will not be more than the amount saved. But in life insurance, the amount available is the one that wished to have at the end of the savings periods period which may range up to 30 or more even more years. Life and property is subject to risks and uncertainties. Certain risks can be minimized through systematic planning and timely provision to the family members and fulfill all their dreams.

Case study
Scenario Sarah, a healthy non-tobacco user, is the 75-year old grandmother of four. She has $50,000 in a bank certificate of deposit (CD), earmarked for her grandchildren. She does not anticipate needing access to these funds during her lifetime. Issue Sarah better off buying a single premium life insurance policy or leaving the money in the CD? Solution Lets compare these two alternatives: If she transfers the $50,000 CD to a life insurance policy with a minimum guarantee death benefit of $74,166 and names the 4 grandchildren as equal beneficiaries. Each grandchild now receives a minimum guaranteed death benefit of $18,541 if no loans, withdrawals or changes to the policy are made. How long would it takes the $50,000 bank CD to grow to provide $74,166 after taxes assuming a 4% interest and an income tax rate of 28%? Over 13 years! This assumes sarah paid income taxes on the interest earned out of her CD account.

Insurance marketing Insurance agents As life insurance is a personalized service, personal selling plays an important role in promoting the same. Place and promotion are being highlighted here since the agent and development officer who form the pillars of life insurance market structure discharge these two important functions. Agents are PR men of insurance companies at the grassroots level. The role in building up good customer relation