“ICICI PRUDENTIAL LIFE INSURANCE COMPANY LIMITED.

TRADITIONAL PLAN VS ULIP.”

A PROJECT REPORT
SUBMITTED TO THE
SCHOOL OF MANAGEMENT
IN PARTIAL FULFILMENT OF THE REQUIREMENTS
FOR THE AWARD OF THE DEGREE
OF
MASTER OF BUSINESS ADMINSTRATION
BY
(KAMAL SINGH 3510910313)
UNDER THE GUIDANCE OF
(R. ANANTH KUMAR
ASSISTANT PROFESSOR)
SRM SCHOOL OF MANAGEMENT
SRM UNIVERSITY
KATTANKULATHUR 603203
JULY 2010
BONAFIDE CERTIFICATE
Certified that this project report titled “Traditional Plan Vs ULIP.” is the bonafid
e work of Mr/Ms KAMAL SINGH who carried out the research under my supervision. C
ertified further, that to the best of my knowledge the work reported herein does
not from part of any other project report or dissertation on the basis of which
a degree or award was conferred on an earlier occasion on this or any other can
didate.

Signature of the supervisor Signature of the HOD

ACKNOWLEDGEMENT
It was delightful learning experience to be associated with ICICI PRUDENTIAL LIF
E INNSURANCE COMPANY LIMITED. The 7 weeks spend at ICICI PRUDENTIAL LIFE INNSUR
ANCE COMPANY LIMITED, Mumbai, taught me many things which will be with me throug
hout my life.
It is the greatest pleasure and pride that I present the report before you. At t
his moment triumph it would be unfair to neglect all those who help me in the su
ccessful completion of this project.
First of all I would like to thank the Dean of SRM School of Management Dr Jaysh
ree Suresh(Dean) and my faculty guide Mr. R.Anath kumar (assistant professor) fo
r the help and guidance rendered for the completion of the project.
It is beyond words to express our immense gratitude to our project guide Manisha
Raja (agency manager) for the guidance and inspiration throughout this work. I
am also very much thankful to the employees of operation department for there c
o-operation .
Last but not the least I thank my family members & friends for there encourageme
nt and support.

TABLE OF CONTENTS
Sl. No Topic Page No.
1 Company Profile 1
2 EXCUTIVE SUMMARY 4
3 INTRODUCTION TO INSURANCE 8
4 INTRODUCTION TO ULIP 14
5 Research Methodology 18
6 PRODUCT POFILE 20
TRADITIONAL VS ULIP 42
DATA ANALYSIS & INTERPRATION 44
7 RESULTS AND FINDINGS 64
8 CONCLUSIONS 66
9 LIMITATIONS OF THE STUDY 67
10 SUGGESTIONS AND RECOMMENDATIONS 68
11 BIBLIOGRAPHY 70
12 APPENDIX 73

LIST OF TABLE
Sl. No. Table Page No.
1 Table 1 45
2 Table 2 47
3 Table 3 48
4 Table 4 49
5 Table 5 50
6 Table 6 51
7 Table 7 52
8 Table 8 53
9 Table 9 54
10 Table 10 55
11 Table 11 56
12 Table 12 57
13 Table 13 58

LIST OF PIE CHART AND GRAPH

Sl. No Name Page No.
1 Graph 1 45
2 Graph 2 46
3 Graph 3 47
4 Graph 4 48
5 Graph 5 49
6 Graph 6 50
7 Graph 7 51
8 Graph 8 52
9 Graph 9 53
10 Graph 10 54
11 Graph 11 55
12 Graph 12 56
13 Graph 13 57
14 Graph 14 58

ICICI Prudential is a joint venture between ICICI Bank and PRUDENTIAL PLC engage
d in the business of life insurance in India. ICICI Prudential is the largest pr
ivate insurance company and second largest insurance in India after LIC. ICICI P
rudential Life Insurance Company is a joint venture between ICICI BANK, a premie
r financial powerhouse, and PRUDENTIAL PLC, a leading international financial se
rvices group headquartered in the United Kingdom. ICICI Prudential was amongst t
he first private sector insurance companies to begin operations in December 2000
 after receiving approval from Insurance Regulatory Development Authority (IRDA)
.ICICI Prudential Life's capital stands at Rs. 37.72 billion (as on March, 2008)
with ICICI Bank and Prudential plc holding 74% and 26% stake respectively. For
the year ended March 31, 2008, the company garnered Retail New Business Weighted
premium of Rs. 6,684 crores, registering a growth of 68% over the last year and
has underwritten nearly 3 million retail policies during the period. The compan
y has assets held over Rs. 30,000 crore as on April 30; 2008.ICICI Prudential Li
fe is also the only private life insurer in India to receive a National Insurer
Financial Strength rating of AAA (Ind) from Fitch ratings. The AAA (Ind) rating
is the highest rating, and is a clear assurance of ICICI Prudential's ability to
meet its obligations to customers at the time of maturity or claims. For the pa
st seven years, ICICI Prudential Life has retained its leadership position in th
e life insurance industry with a wide range of flexible products that meet the n
eeds of the Indian customer at every step in life.
Since the liberalization of Indian Insurance sector, ICICI Prudential Life Insur
ance has been one of the earliest private players. Since the time, ICICI Pru Lif
e has been the leader in terms of market share as indicated by the IRDA (Insuran
ce Regulatory and Development Authority, the regulator for Indian Insurance Indu
stry) at its website.
Arguably the most innovative Indian Life insurer in terms of customer services a
nd products, ICICI Prudential has one of the largest distribution and servicing
network with over 2,000 proprietary offices & customer touch points across India
. The 30,000 employee strong organization has one of the largest agency distribu
tions in the industry.
With a growing product range to match the complex needs of the demanding custome
rs in a growing economy, the organization also has a history of successful.
During 2007-08, the organization's focus on rural business has proved its comple
x project execution capability and strong partnerships for customer servicing.
In June, 2009 ICICI Prudential Life Insurance has decided to snap its tie up wit
h TTK Healthcare to settle insurance claims of its users.
VISION & VALUES
VISION
To be the dominant Life, Health and Pensions player built on trust by world-clas
s people and service.
This we hope to achieve by:
• Understanding the needs of customers and offering them superior products and ser
vice
• Leveraging technology to service customers quickly, efficiently and conveniently
• Developing and implementing superior risk management and investment strategies t
o offer sustainable and stable returns to our policyholders
• Providing an enabling environment to foster growth and learning for our employee
s
• And above all, building transparency in all our dealings
The success of the company will be founded in its unflinching commitment to 5 co
re values -- Integrity, Customer First, Boundaryless, Ownership and Passion. Eac
h of the values describe what the company stands for, the qualities of our peopl
e and the way we work.
We do believe that we are on the threshold of an exciting new opportunity, where
we can play a significant role in redefining and reshaping the sector. Given th
e quality of our parentage and the commitment of our team, there are no limits t
o our growth
VALUES
Every member of the ICICI Prudential team is committed to 5 core values: Integri
ty, Customer First, Boundaryless, Ownership, and Passion. These values shine for
th in all we do, and have become the keystones of our success.
EXECUTIVE SUMMARY
Title of the project: Study ULIP in current market scenario/ study customer resp
onse towards ULIP.
Objectives:
• Working of the unit linked insurance plans
• Study tax planning solutions available in the market
• SWOT analysis of the product
Organization to be studied:
• Life insurance corporation
• Bajaj Allianz
• HDFC Stan Life
• ICICI Prudential Life Insurance
Research methodology: Primary data collected by personally visiting these leadin
g insurance players. Example: LIC, Max New York Life Insurance, HDFC Standard l
ife.
Data Collection:
• Primary data collected through Survey
• Sample size 50
• Secondary data collected through literature study.
OBJECTIVE OF THE STUDY
The project undertaken by me as a part of my MASTER OF BUSINESS ADMINISTRATION c
ourse is an effort made to study the ULIP policies and activities in BAJAJ ALLIA
NZ with special emphasis on unit linked products of the company.
The main objectives of this study are:
1. Working of Unit linked Insurance Plans
2. Study tax planning solutions available in the market
3. SWOT analysis of the product sold
4. To get an exposure in the real working environment in the insurance and
corporate sector.
5. To have a better understanding of the investment options available.
6. Meet the various life insurance needs of the community that would arise
in the changing social and economic environment.
SCOPE OF THE STUDY

1 The main scope is to aware the investors about the various Bajaj Allianz
ULIPs and help them to select the best plan as per their requirement
2 To study the consumer need according his portfolio and to analyze the ne
ed of ULIPs consumer.
3 To find out the best selling insurance products of this company.
4 To find out which product (if any) is not getting good response from cli
ents and why?
5 To find out the risks in investing a unit link insurance plan.

INSURANCE
Meaning of Insurance: -
Insurance in which the risk insured against is the death of a particular person,
the insured, upon whose death while the policy is in force, the insurance compa
ny agrees to pay a stated sum or income to the beneficiary.
Insurance on human lives including endowment benefits, additional benefits in ev
ent of death or dismemberment by accident or accidental means, additional benefi
ts for disability, and annuities.
Why Life Insurance?
Buying Insurance cannot be compared with any other form of investment. Insurance
gives one a life long benefit and the returns will definitely come but only whe
n one needs it the most i.e. at the right time.
Insurance is not about how much more it can offer you when the stock market is a
t its peak. It may not be an attractive investment option. But weigh the pros an
d cons and consider how much more it offers at a small price.
Most important of all it provides you with that unique sense of security that no
other form of investment provides. It gives you a sense of financial support es
pecially during that time of crisis irrespective of the fluctuations in the stoc
k market. Insurance provides for career goals right from childhood years.
If the earning member of the family is no more children’s educational needs will n
ot suffer. In fact his higher education too will be provided for. One need not s
pend sleepless nights thinking about how to save for his child s marriage. Life
Insurance will take care of that typical once-in-a-life-time spending on marriag
es.
An accident or a disability may be devastating but an insurance policy can be of
utmost support for the family during such times too. Besides it provides for ad
ditional benefits such as bonuses. One need not worry about your retirement year
s. The rising prices, taxes, and your lifestyle will be taken care of easily. An
d you can relax and spend your old age in comfort and peace.
People invest in life insurance owing to a few key reasons, mainly
• Insurance creates financial provisions for the deceased s dependants.
• Insurance provides for the policyholder s old age after his earning power dimini
shes. After all, interest rates may fall and invested holdings may lose value an
d stop gaining dividends, but the value of an insurance policy once set, never r
educes.
• Insurance also provide a legally authorized way to reduce the incidence of Incom
e Tax.
Insurance as an Investment
Agreed, insurance may not be the best place to invest your hard-earned money. Bu
t there are sufficient reasons for one to believe that it can be a highly lucrat
ive avenue to facilitate savings. People often talk about yield on investment an
d tend to compare their values with those available on various insurance schemes
. This is particularly typical within the Indian sub-continent where one conveni
ently forgets the element of risk covered by life insurance.
It is extremely unfair to compare the performance of insurance against other inv
estments without considering the core features of insurance. The very essence of
insurance is to protect your family from the uncertainty of your life. Hence it
proves very logical to evaluate the costs involved towards this feature.
One must accept that out of the total amount paid by one for his life insurance,
a certain amount is used for providing the risk cover and only the balance can
be utilized as savings. In other words, the total premium one pays minus the amo
unt evaluated, as the cost of insurance must be considered as the amount investe
d to get the maturity amount.
What does life insurance have to offer?
Life insurance is many different things to many different people. For some, it i
s a premium to be paid on time. For others it offers liquidity since cash can be
borrowed when needed. For the investment-minded, it denotes a constantly growin
g capital account and numerous other benefits.
Life insurance is nothing but the creation of capital funds on an installment ba
sis. Only here, the results are guaranteed. Life insurance is basically a proper
ty that is bought under a contract, accompanied by contractual guarantees that e
nsure large sums of money at the death of the insured.
The contractual guarantee is the promise to pay, backed by one of the oldest and
most stably regulated financial industry operating in the Indian sub-continent
today.
Insurance Buys Time and Money: People like to refer to life insurance as time in
surance, the reason being that life insurance proceeds are paid to the insured s
beneficiaries in case of death. The money proffered by life insurance helps buy
time to adjust to the change of circumstances. Insurance provides large amounts
of cash that will keep the lifestyle for the survivors the way it was before th
e insured s death.
Insurance Offers Peace of Mind: For the person who buys an insurance policy, it
offers absolute and complete peace of mind. He or she knows that the decision ma
de by him will provide sound benefits in the future, whether or not the individu
al may live to see it. The life insurance policy will subsequently prove this in
the future if and when funds are needed. This is the guarantee of the insurance
contract.
Multiple Applications: The future is uncertain for each and every one. No one kn
ows how long he or she will live. The investment benefit is paid to the insured
s beneficiaries after his death or it can be used during the life as well. Life
insurance policy owners can turn to the cash value of the policy in case of a fi
nancial emergency when all avenues are either blocked or denied. They know that
they can avail of loans based on their insurance policies.
Insurance policy owners can use the cash value of their policies to meet their l
ong-term financial needs as well. They may have purposefully invested in insuran
ce to use the cash in the policy for their children s future marriage expenses o
r higher education fees.
Enduring Elasticity: Since life insurance is flexible enough to serve several n
eeds, the insured can keep several long-term goals in mind once he or she invest
s in the insurance plan. The cash value of the policy can be allocated towards a
ugmenting the monthly income during the retirement years. Leisure years should b
e turned into pleasure years. Permanent life insurance is designed on the concep
ts of long-term flexibility.
Financial Security: The insurance policy offers contractual guarantees to people
looking for peace of mind when they buy life insurance. Life insurance offers c
omplete financial security. The purchase of life insurance demonstrates concern
for a family s future financial well being.
Regard for Family: The purchase of life insurance clearly displays care and conc
ern for the people the policy owner loves.
Insurance is Safer: No financial institution can do what life insurance does. No
industry can back its products with reserves and surplus as sound as those of t
he insurance industry.
The proof of strength and safety that insurance companies have ensured even unde
r the most adverse of conditions is a matter of pride for the entire insurance i
ndustry. For generation after generation, life insurance has been acclaimed as t
he very benchmark of security against which the other industries are measured.

INTRODUCTION OF UNIT LINKED INSURANCE PLAN

The introduction of unit-linked insurance plans (ULIPs) has been, possibly, the
single-largest innovation in the field of life insurance in the past several dec
ades.
MEANING
A policy, which provides for life insurance where the policy value at any time v
aries according to the value of the underlying assets at the time. ULIP is life
insurance solution that provides for the benefits of protection and flexibility
in investment. The investment is denoted as units and is represented by the valu
e that it has attained called as Net Asset Value (NAV).
ULIP came into play in the 1960s and became very popular in Western Europe and A
mericas. The reason that is attributed to the wide spread popularity of ULIP is
because of the transparency and the flexibility which it offers.
As times progressed the plans were also successfully mapped along with life insu
rance need to retirement planning. In today’s times, ULIP provides solutions for i
nsurance planning, financial needs, financial planning for children’s future and r
etirement planning.
FEATURES OF ULIP:
ULIP distinguishes itself through the multiple benefits that it provides to the
consumer. The plan is a one-stop solution providing:
• Life protection
• Investment and Savings
• Flexibility
• Adjustable Life Cover

• Investment Options
• Transparency
• Liquidity
• Tax planning
• Options to take additional cover against death due to accident
• Critical Illness
• Surgeries
Options to take additional cover against:
1. Death due to accident
2. Disability
3. Critical Illness
Fund of ULIP
Equity based funds
Money Market based funds
Debt Funds
Balanced Funds
Special Funds
UNIT-LINKED LIFE INSURANCE PRODUCTS
Unit-linked life insurance products are those where the benefits are expressed i
n terms of number of units and unit price. They can be viewed as a combination o
f insurance and mutual funds. The number of units, which the customer would get,
would depend on the unit price when he pays his premium. The daily unit price i
s based on the market value of the underlying assets (equities, bonds, governmen
t securities etc.) and computed from the net asset value
MERITS
1) Flexibility to choose your own level of protection (the sum assured)
2) Option to choose from a wide variety of investment fund to invest in (from
high risk to low risk fund depending on your risk profile). The investment part
of Traditional Insurance is control by insurer
DEMERITS
The premium is not guaranteed. In Malaysia, the annual premium we pay for invest
ment-linked insurance is call annual targeted premium . For example, if you pay
an annual premium Ringgit Malaysia 1,800 over the last few years, it does not m
ean you are paying the same amount from next year onwards.
b) The insurance charges is not guaranteed, for example, insurance charges for d
eath benefit, total & permanent disability benefit, etc. The insurance company h
as the right to increase the insurance charges.

RESEARCH METHODOLOGY
As the title of the project suggests the project is about the study of unit link
ed insurance plan in current market scenario so my objective in the market inter
face is to find the awareness about the Bajaj Allianz’s products in the current ma
rket.
MARKET RESEARCH DESIGN
Research Type: Descriptive research
Sources of data: Primary Data
Research method: Survey Method
Research instrument: Questionnaire
Sample size: 50.
SOURCES OF DATA
PRIMARY SOURCES
Data collected from the primary sources are personally interviewed.
Study Conducted.
SAMPLING PROCEDURE
The process employed for the sample was Random sampling. Random sampling is the
sampling in which every unit in the population has an equal opportunity of being
selected in the sample. The method is more representative of the population as
there are no personal biases.
METHODOLOGY
The survey is conducted among 50 respondents. The methodology is quite simple. T
he primary data collected through survey. The people are personally interviewed.
Then their responses are analyzed and interpreted and the final report is prepa
red.
Simple statistical tools have been used to in the study to analyze and interpret
the data collected from the field. The study has used percentile method and the
results are presented in the form of the Pie charts and Bar diagrams.

Insurance Plans
ICICI Prudential has a wide array of insurance plans that have been designed wit
h the philosophy that different individuals are bound to have differing insuranc
e needs.
The ideal insurance plan is one that addresses the exact insurance needs of the
individual that will depend on the age and life stage of the individual apart fr
om a host of other factors.
Life Insurance Plans:
Under Life insurance plans, ICICI Prudential offers plans under the following ma
jor need categories:
• Education Insurance Plans
• Wealth Creation Plans
• Protection Plans
Pension & Retirement Solutions:
The primary objective of a pension plan is to help you provide for your financia
l needs in your post retirement years. You will find a Pension Planning Calculat
or on the site, meant to make your pension plan review as simple as possible. Th
e calculator is the first step in your Pension Plan scheme, there are othe steps
towards getting the Indian pension policy you need.
Click here to know more about our pension plan solutions.

• ICICI Pru LifeTime Pension Maxima

• ICICI Pru LifeStage Pension Advantage
• ICICI Pru Elite Pension II
• ICICI Pru Assure Pension
• ICICI Pru ForeverLife
• ICICI Pru Immediate Annuity
Health Product Suite:
Under Health Product Suite, ICICI Prudential offers plans under the following ma
jor need categories:
Hospitalisation Plans
• MediAssure
• Hospital Care II
Critical Illnessl Pans
• Crisis Cover
Education Insurance Plans
One of your most important responsibilities as a parent is to ensure that your c
hild gets the best possible education that can be provided.
•
• ICICI Prudential offers a wide portfolio of education insurance plans that are d
esigned to provide peace of mind to you, as a parent, that your child s educatio
n will be secure. These plans ensure that money is made available at the crucial
junctures in a child s education - Class X, Class XII, graduation and post-grad
uation - to fund crucial commitments for the child s future.
•
• Importantly, education insurance plans ensure that in the unfortunate event of t
he death of a parent, the child s education continues unhampered.
•
• Under the education insurance plans platform, ICICI Prudential brings the follow
ing products to you. Please click on the product name to know more about the pla
ns.
•
Plan Name
Plan Type
ICICI Pru SmartKid Assure
ICICI Pru SmartKid Maxima
ICICI Pru SmartKid Regular Premium
Unit Linked
Unit Linked
Traditional

Wealth Creation Plans

Wealth Creation Plans give the customer the dual benefit of protection along wit
h the potentially higher returns of market-linked instruments. The most importan
t benefit of ULIPs is the flexibility they give the customer in choosing the pre
mium amount and also choosing the underlying fund in which this money is to be i
nvested. Wealth creation plans also offer the customer more liquidity options as
compared to traditional plans. As such, ULIPs are ideal for customers who want
the protection of a life cover to be allied to the returns of market linked inst
rument – giving them an unmatched combination of benefits.
Under the wealth creation platform, ICICI Prudential brings the following produc
ts to you. Please click on the product name to know more about the plans.

Plan Name
Plan Type
ICICI Pru Pinnacle
ICICI Pru LifeStage Wealth
ICICI Pru ACE

ICICI Pru Premier Wealth

ICICI Pru Assure Wealth
ICICI Pru LifeTime Maxima

Unit Linked
Unit Linked
Unit Linked
Unit Linked
Unit Linked
Unit Linked
Protection Plans
The sole objective of these plans, as their name indicates, is to serve the prot
ection needs of the customer and by doing so, safeguard one’s family from the fina
ncial implications of unfortunate circumstances than one cannot foresee.

Under the Protection Plans platform, ICICI Prudential brings to you the followin
g products:

Plan Name
Plan Type
Pure Protect
LifeGuard
Save n Protect
CashBak
Home Assure
Traditional
Traditional
Traditional
Traditional
Traditional

ICICI Pru LifeTime Pension Maxima

In the prime of your life and at the peak of your career, you enjoy all the comf
orts of life. A happy family, your own home and car, frequent dining out, holida
ys in India and abroad... these are pleasures you are used to today. Wouldn t yo
u wish to continue enjoying them even after you stop working? You can, if you pl
an for it now. All you need is a good retirement plan.
At ICICI Prudential Life Insurance, we understand your needs and help you plan f
or a better future. We bring to you ICICI Pru LifeTime Pension Maxima, a regular
premium, unit-linked pension product. This product offers you the flexibility t
o invest in unit-linked funds that generate potentially higher returns over the
long term.
This product also offers you a unique strategy that allows you to protect gains
made through your funds invested in the equity markets from any future equity ma
rket volatility.
So, start investing today to realize your retirement dreams.
ICICI Pru LifeStage Pension Advantage
The word retirement brings to mind beautiful images of a comfortable and relaxed
life. A life spent in the company of your loved ones and free of the worries an
d tensions of work. To ensure that this dream is realized, you need to build an
adequate retirement corpus, which will allow you to be free from any financial w
orries. To help you achieve this goal, ICICI Prudential presents ICICI Pru LifeS
tage Pension Advantage.
The distinguishing feature of this policy is that it has no premium allocation c
harge for any regular premiums, which means 100% of your money is invested at pr
emium payment. This policy also provides you with a unique lifecycle-based inves
tment strategy that continuously re-distributes your money across various asset
classes based on your life stage and risk tolerance, eventually providing you wi
th a customized retirement solution. So, start investing today to realize your r
etirement dreams.
ICICI Pru Elite Pension II
For an exclusive customer like you, who likes to be in complete control, we pres
ent ICICI Pru Elite Pension II.
It is a regular premium paying, unit-linked pension product that offers potentia
lly higher returns over the long term. This product comes with the unique Trigge
r Portfolio Strategy which automatically protects your gains made in equity mark
ets from any future market volatility. And once you arrive at your retirement ag
e, you are assured of regular income (pension) for life.
ICICI Pru Elite Pension II
For an exclusive customer like you, who likes to be in complete control, we pres
ent ICICI Pru Elite Pension II.
It is a regular premium paying, unit-linked pension product that offers potentia
lly higher returns over the long term. This product comes with the unique Trigge
r Portfolio Strategy which automatically protects your gains made in equity mark
ets from any future market volatility. And once you arrive at your retirement ag
e, you are assured of regular income (pension) for life
So that… you call the shots all your life.
ICICI Pru Assure Pension
A retirement plan provides you an income to enjoy a comfortable lifestyle even a
fter you stop working.
Presenting ICICI Pru Assure Pension, an innovative pension product especially de
signed to help you systematically save towards a joyful and carefree retirement.
Moreover, this product provides you with a unique LifeCycle based Portfolio Stra
tegy that regularly re-distributes your money across various asset classes based
on your life stage, eventually providing you with a customized retirement solut
ion.
ForeverLife
ICICI Prudential s ForeverLife is a complete insurance cum pension plan that per
forms two crucial roles: it acts as a protective cover while you earn for your r
etirement, and provides you with regular pensions once you retire.
Health Assure Plus
Illnesses have a way of sneaking up on us, weakening our financial stability and
stealing our family s peace of mind. It is best to keep oneself insured at all
times against the most critical illnesses that are also the most common: Cancer,
Coronary Artery Bypass Graft or Surgery, Heart Attack, Kidney Failure, Major Or
gan Transplant, and Stroke.
ICICI Prudential s HealthAssure Plus financially insures you against these six c
ritical illnesses. Should you ever be diagnosed with one or more of these, Healt
hAssure Plus provides you with a fixed sum, irrespective of your actual medical
expenses. The health plan thus shoulders the heavy costs of your treatment and e
nsures you stay financially stable, come what may.
This financial guarantee during illness is not all that HealthAssure Plus delive
rs. HealthAssure Plus comes with an added benefit: it insures your life, as well
. So should an unexpected accident or disability claim your life, your family wi
ll receive the entire Sum Assured-an amount large enough to ensure they live sec
urely, even in your absence.

ICICI Pru MediAssure?

Health problems, in most cases, strike us unexpectedly, resulting in a sudden fi
nancial burden. Despite this, only around one in every fifty Indians, is covered
through some form of individual medical insurance. Further, it has been observe
d that 2 out of every 5 individuals hospitalised in India end up either borrowin
g money or selling assets to cover healthcare costs. This situation is set to es
calate further as private health care spends in India are estimated to increase
by 2 to 3 times over the next 12 years.
Hence you need a solution that gives you peace of mind by providing financial co
ver to both you and your family against unforeseen hospitalisation events.
So what should you look for when buying a medical/hospitalisation cover:
• Does the plan guarantee you insurability at renewal irrespective of your health
status?
• Does the plan ensure that no new exclusions are added or no increase in premiums
occurs just because a claim is made?
• Does the plan clearly state exclusions at the time of taking the policy and also
offer you cover against pre-existing conditions?
ICICI Prudential Life Insurance presents MediAssure, a health insurance plan wit
h a AAA guarantee for the family
• Assured cover till age 75 years
• Assured coverage for accepted pre-existing illnesses after 2 years
• Assured price for 3 years
Moreover, this policy covers all your hospitalisation needs with the flexibility
to choose your location and quality of treatment.
ICICI Pru Hospital Care II
Presenting ICICI Pru Hospital Care II – a family floater plan covering your spouse
and children.
ICICI Pru Hospital Care II - this fixed benefit hospitalisation and surgical pla
n complements your existing coverage by offering payouts over and above any heal
th plan you have, thus availing best possible medical treatment, without having
to bother about the cost of the treatment or quality of care.
Give your family the protection they deserve - take home ICICI Pru Hospital Care
II, today.
Why should you buy Hospital Care II?
Hospital Care II offers the following key benefits:
• Fixed benefits to cover hospitalisation, ICU admission, surgical procedure and a
lso recuperating benefit
• Benefit amount in addition to other medical insurance plans, irrespective of act
ual billing
• Additional benefits for prolonged stay & non surgical hospitalisation
• Guaranteed insurability at renewal for whole life
• Tax benefits under section 80D
• Cashless claim settlement
• A family floater option
Health check-up
Health Assure Plus
Illnesses have a way of sneaking up on us, weakening our financial stability and
stealing our family s peace of mind. It is best to keep oneself insured at all
times against the most critical illnesses that are also the most common: Cancer,
Coronary Artery Bypass Graft or Surgery, Heart Attack, Kidney Failure, Major Or
gan Transplant, and Stroke.
ICICI Prudential s HealthAssure Plus financially insures you against these six c
ritical illnesses. Should you ever be diagnosed with one or more of these, Healt
hAssure Plus provides you with a fixed sum, irrespective of your actual medical
expenses. The health plan thus shoulders the heavy costs of your treatment and e
nsures you stay financially stable, come what may.
This financial guarantee during illness is not all that HealthAssure Plus delive
rs. HealthAssure Plus comes with an added benefit: it insures your life, as well
. So should an unexpected accident or disability claim your life, your family wi
ll receive the entire Sum Assured-an amount large enough to ensure they live sec
urely, even in your absence.

Crisis Cover
Life is hectic in today s fast paced world. Along with the rapid pace and progre
ss comes the bane of modern life such as increased stress, poor diet and lack of
exercise. The alarming aspect is that, owing to these factors, more and more In
dians are becoming vulnerable to critical illnesses every year. These illnesses,
coupled with increasing costs of treatment, have made recovery a long and expen
sive process.
It goes without saying that securing your family s financial future is a part of
prudent financial planning. However, no less important is your health and well-
being, for which you need a comprehensive health coverage. And, given our lifest
yles, it should ideally be a plan that provides complete protection against Dise
ase, Disability and Death.

Keeping this need in mind, ICICI Prudential Life Insurance presents Crisis Cover
. This all-inclusive long term insurance policy provides coverage against 35 cri
tical illnesses, total and permanent disability, and also death.
So, get the right protection tailored to suit your lifestyle, with this plan whi
ch is
• Comprehensive
• Affordable
• Long Term

TAX PLANNING SOLUTIONS

TAXATION
TAX BENEFITS ON INSURANCE AND PENSION.
Life insurance and retirement plans are effective ways of saving taxes. The tax
breaks that are available under various insurance and pension policies are descr
ibed below:
1. Life insurance plans are eligible for deduction under Sec. 80C.
2. Pension plans are eligible for a deduction under Sec. 80CCC.
3. Health riders are eligible for deduction under Sec. 80D.
4. The proceeds or withdrawals of life insurance policies are exempt under
Sec 10(10D), subject to norms prescribed in that section.
Surcharge on Income Tax: In case where the Total Income exceeds Rs 10,00,000, th
ere would be a surcharge @ 10%.
Education Cess on Income Tax: Education Cess @2% will be payable on the amount o
f income tax (including surcharge).
TAX SAVING INVESTMENT AVENUES:
National Saving Certificate (N.S.C): Invest in National Savings Certificates on
which an individual can earn 8 per cent.
Along with it, Section 80L allowed deduction of interest earned on, say, a Natio
nal Savings Certificate or a bank deposit up to a limit of Rs 12,000.
Public Provident Fund (PPF): For all individuals working people, contribution to
provident fund (12 per cent of your basic salary) is mandatory and that s a goo
d thing because your employer makes an equal contribution and you earn 9.5 per c
ent on the total.
For the totally risk averse, there s the good old Public Provident Fund (it has
a lock-in period of 15 years but you can borrow against your deposits after seve
n years) which earns you 8 per cent.
This is a great scheme to give one’s kids a head start in life, so keep putting aw
ay small amounts for them. Till the government decides to tax the interest on PP
F
Will PPF be taxed on maturity?
Under the new Budget, you will be taxed when you withdraw your PPF on maturity.
PPF will be taxed under the Exempt-Exempt-Tax Rule. EET is nothing but a name fo
r the tax system, where investment in certain savings plans is deductible from i
ncome.
Now, one will get the deduction from his income, thus lowering the tax liability
. The interest amount is also exempt under Section 10. But when the amount matu
res or is withdrawn, it will be taxable in that year of maturity/withdrawal. It
will be taxed even if one goes in for a premature withdrawal.
Accordingly, the principal amount at the time of maturity will be taxable as per
your slab rate.
Let s say you invest Rs 10,000 every year in PPF. After 15 years, you receive a
lumpsum of approximately Rs 215,000. Every year, you are eligible for a deducti
on of Rs 10,000 from your income and thus save tax on it.
Now, it has been proposed that whatever amount you receive on maturity, your dep
osits of Rs 150,000 (Rs 10,000 x 15 years), will be taxable out of the total amo
unt. This can be termed as Deferment of Tax and not saving of tax. In other wor
ds, you will defer (postpone) the payment of tax, depending on the lock-in perio
d of your tax saving investment. Some time or the other, though, the investment
will mature. And tax will be levied then.
Housing loan principal repayment: Under Section 88, one gets a rebate on the pri
ncipal of a home loan only up to Rs 20,000. Under 80C, one can use up the entire
Rs 100,000 to repay your home loan principal
For those who have no money to save but have a home loan, use the tax break for
a higher principal amount. Typically, the equated monthly installment would have
a higher share of interest in the initial stages and a higher principal compone
nt towards the latter half of the loan tenure. The trick, therefore, would be to
 claim the tax break on as high a principal amount as possible.
Equity Linked Savings schemes: For punters, things couldn t get better. You can
put Rs 100,000 in an equity linked savings scheme and end up getting a 30 per ce
nt return upfront (in the form of a tax break in the highest slab).
Next, you must insure yourself to some extent -- so buy a pure term policy. The
trick here is not to opt for a unit-linked insurance plan but to pick up the che
apest term policy in the market and top it up with an ELSS.
A combination of a pure term policy and an ELSS is a sure-fire winner for two re
asons.
First, the upfront charges for ULIPs are prohibitive -- between 20 and 40 per ce
nt, depending on the nature of the schemes - -and sometimes this offset the tax
benefit that you get.
The second is the 30 per cent upfront gain (tax break).
Therefore, assuming that the fund managers of both schemes are equally competent
(and there is no reason to assume differently), the returns on an ELSS are like
ly to be far better -- they have returned around 40 per cent in the last few yea
rs. What s more, the dividends from ELSS, if any, would be tax-free too. But rem
ember that there s a three-year lock-in period for ELSS and ULIP plans.
Life insurance: If one is keen to save for the future, another option is the an
nuity plan, which you can pick up from any life insurer.
Earlier, one could only invest Rs 10,000 every year, but now there s no cap. A U
LIP annuity scheme could give you an upside in the form of higher investment ret
urns from either debt or equity. If one is below 40 you could perhaps plump for
an equity scheme, but if one is older, debt schemes are a better bet.
Pension: If one can live with some risk buy into a pension fund set up by a mutu
al fund. These funds invest in both debt and equity schemes though there s not t
oo much of a choice right now with only Templeton and UTI offering these product
s.
Benefits under Section 80CCC for contributions made to pension plans remain unch
anged. It is expected to be amended and brought in line with the Rs 100,000 limi
t as offered by Section 80C. Till date, pension investments were mostly driven b
y Section
80CCC benefits. After this budget, we should see retirement planning take a fron
t seat, as pension will play a more important role in your insurance portfolio.
Section 10(10D) has not been tampered with. The benefits under this section are
still available so individuals need not worry about death or maturity benefits w
hile buying life insurance.
Mediclaim.
Donations.
Infrastructure bonds
Repayment of loan for higher education.

ULIPS (UNIT LINKED INSURANCE PLANS)

ULIPs, or Unit Linked Insurance Plans, have gained high acceptance due to the at
tractive features they offer. Benefits include flexibility, Transparency, Liquid
ity, and Fund Options.
Flexibility
A ULIP offers the customer an acute degree of flexibility: the flexibility to ch
oose the Sum Assured, and to choose the desired premium amount. ULIPs give the c
ustomer the option of changing the level of Premium/Sum Assured even after the p
lan has started, and the flexibility to change asset allocation by switching bet
ween funds with ease.
Transparency
ULIPS offer a high degree of transparency, where all charges in the plan as well
as the entire net amount invested is made known to the customer. ULIPs also off
er the convenience of tracking your investment performance on a day to day basis
, so you can decide instantly where you want your assets allocated.
Liquidity
A ULIP offers you the option of withdrawing money a few years into the plan, all
owing for the exigencies of life. Alternatively, a ULIP will also allow for part
ial/systematic withdrawal should the need arise.
Fund Options
A ULIP will offer you a wide choice of funds, ranging through equity, debt, cash
, or a combination of the three. The customer is also afforded the option of cho
osing your fund mix based on your desired asset allocation.
TRADITIONAL PLANS
These are the oldest types of insurance plans available. These plans cater to cu
stomers with a low risk appetite. Some of the common features of traditional pla
ns are:
1. Steady Investment
1. Major chunk of investible funds are in debt instruments.
2. Steady and almost assured returns over the long term.
2. Features
1. Death benefit is Sum Assured + guaranteed & vested bonus.
2. Helps in asset creation as they are for a long tenure.
3. Premium to Sum Assured ratios are fixed for each plan and age.
Generally withdrawals are not allowed before maturity.

Data Analysis and Interpretation

What is your annual income?

Income Level No. Of Respondents Percent
LESS THAN 150000 2 4%
150001 – 300000 10 20%
300001 – 1000000 30 60%
ABOVE 1000000 8 16%
Total 50 100%
Table No. 1 Respondent Income Group

Graph No 1
Graph no 1
Interpretations
Do you make investments?
Investment No. Of Respondents Percent
Yes 40 80%
No 10 20%
Table No. 2 Investment

Graph 2
If yes, where do you make investment?

Investment No. Of Respondents Percent

Bank Deposits 30
Mutual Fund 30
Shares 10
Life Insurance 20
Postal Deposit Schemes 5
Real estate 2
Table No. 3
Graph 2
What are the reasons to make investments?
Investment No. Of Respondents
Tax Saving 30
Return 5
Capital Appreciation
Secure investment 2
Life cover 15
Other
Table No. 4
Graph 3
Are you satisfied with your Investment?
Investment No. Of Respondents
Yes 28
No 12
Table No. 5
Graph 3
Have you heard about private insurance company ICICI prudential life?
Investment No. Of Respondents Percent
Yes 45 90
No 5 10
Table No. 6
Graph 4
From where did you come to know about ICICI prudential life insurance?
Investment No. Of Respondents
Electronic Media 30
Print Media 30
Seminar 2
Workshops 5
Advisor 18
Table No. 7
Graph 5
Do u have Insurance policy?
Investment No. Of Respondents Percent
Yes 45 90
No 5 10
Table No. 8
Graph 6
Which Plan is it
Investment No. Of Respondents
ULIP 18
Traditional Plan 2
Table No. 9
Graph 7
what are the reasons for investment in ULIP
Reasons for ULIP No. Of Respondents
Life Protection 15
Investment and Savings 18
Flexibility 18
Transparency 18
Liquidity 18
Tax Planning 18
Table No. 10
Graph 8
Do you think ULIP is a risky investment?
Investment No. Of Respondents
Very Risky 12
Less risky 3
Safe 3
Very Safe 0
Table No. 11
Graph No. 9
Do you have any plan to buy ULIP plans in near future?
Buy ULIP No. Of Respondents Percent
Yes 40 80
No 10 20
Table No. 12
Graph 9

What steps do you suggested to the companies to make their ULIP plans more popul
ar?
Suggestion No. Of Respondents Percent
More Advertisements 10 20
Arrange more workshops 10 20
Arrange more seminars 15 30
Reduce charges 40 80
Create awareness through advisors 30 60
Table No. 13
Graph 11
SWOT ANALYSIS OF ULIP
 STRENGTHS
1. Liquidity Benefit: There is no maturity date. Anytime after 3 premium-paying
years you can make partial or complete withdrawals at no charges.
2. Choosing investment portfolio
• Maximiser.
• Protector
• Balancer
• Preserver
3. Switching: Choice to switch between the various investment plan options, abso
lutely free, 4 times every year.
4. Top – Up: Invest surplus amounts. Top-ups will not have effect on the sum assur
ed.
5. Increase/Decrease sum assured.
6. Premium holiday: If premiums have been paid for at least 3 years and because
of some reason, premium cannot be paid, then the policy does not lapse; the cove
rage will be continued via adjusting the unit fund for the mortality premiums.
7. Flexible contribution: Contribution can be increased without any limits.
8. Additional allocation of units: As a policyholder one is provided with additi
onal allocation of units on periodic basis. These will depend upon the total val
ue of units of the policy
9. Loan against the policy: After the policy has acquired a surrender value one
can avail loan against the policy.
10. Rides: Choice of riders along with death benefits to give total protection – a
ll at a marginal cost
• Accident and Disability rider
• Critical Illness Rider
• Major Surgical Assistance Benefit Rider

WEAKNESSES

1. Policy does not acquire a surrender option before the end of third year of po
licy.
2. It has evolved a solution for policyholders, as most ULIP investors are not r
eally financially savvy.
3. High premium allocation charges: The premium allocation will be based on the
contribution limits. The yearly allocation would be as follows.
Contribution Range 1st year 2nd year 3rd year onwards
18,000 – 49,999 80% 92.5% 96%
50,000 and above 82% 92.5% 96%
4. Mortality charges are deducted based on um assured and age of life assured.
5. Plan do not offer any guarantee or assured return.
6. In case of partial withdrawals, one needs to maintain a minimum balance of Rs
. 10000 across all funds. In case the unit value is 9inadequate to cover charges
, the policy will terminate.
OPPORTUNITIES
1. Life insurance plans are eligible for tax deduction under Sec. 80C.
2. The proceeds or withdrawals of life insurance policies are exempted under Sec
10(10D), subject to norms prescribed in that section.
3. Large majority of Indian population still are not insured.
4. Equity markets have shown a good performance due to the strong inflow from FI
I and domestic funds through IPO’S in first quarter of year.
5. Finance minister unveiled a budget-favoring consumer spending, boosting deman
d and therefore higher economic growth.
6. Preserver fund looks good due to comfortable liquidity in the economy and the
re is little chance of any hike in short-term rates by RBI.
THREATS
1. The Unit value of the Units of this plan can go up or down depending on the f
actors and forces affecting the financial and debt markets from time to time and
may also be affected by changes in the general level of interest rates.
2. The investments in the Units are subject to market and other risks and there
can be no assurance that the objectives of the plan will be achieved.
3. Past performance of this plan is not indicative of the future performance of
the plan.
4. All benefits payable under the policy are subject to the tax laws and other f
inancial enactment, as they exist from time to time.

FINDINGS

1. Customers prefer public sector insurance company that is Life Insurance

Cooperation as compared to the private insurance companies.
2. Nearly 68% of the people have opted for one policy or other and about 80
% of them have opted for LIC.
3. Lifetime is the most popular product among the people who are aware abou
t ICICI PUR products.
4. People invest in insurance mainly because of Tax rebate concern.
5. Among the companies offering Insurance in India LIC is most popular, ICI
CI PUR comes at second place.
6. Most of the people are unaware about the working of Unit Linked Insuranc
e Plans.
7. Only 10% of the people feel that investing in ULIP is not risky.
8. People are now showing more interest in ULIP as compared to some of the
traditional plans.
9. Nearly about 50% of the people feel that Insurance companies should be m
ore transparent.

CONCLUSION
1. LIC enjoys credibility over other private players in the industry
2. People look for tax rebate over security in market linked plans
3. Lifetime is the most popular product among the people who are aware abou
t ICICI PRU products.
4. People are now showing more interest in ULIP as compared to some of the
traditional plans.
5. ICICI PRU has to counter the distribution network of LIC
6. The product profile of ICICI PRU is not very comprehensive
LIMITATIONS
The results are not comprehensive and representative of entire Indian population
because of: -
1. The geographical area was very much limited to residential area & so the
results are not particularly reflection of the current behavior.
2. Biases and non-cooperation of the respondents.
3. Due to limited time period and constrained working hours for most of the
respondents, the answers at times were vague enough to be ignored.
4. Most of the people in India take their policies in the period preceding
March(for tax saving purposes) & so the response to initial contacts were not al
l encouraging and that has been the primary reason in the inability to quantify
the results large enough so as to deduce any relevant outcomes.
5. Most of the results that are spelt out have been of qualitative aspects.

RECOMMENDATIONS
1. The company should spend more on the promotional activities like adverti
sement in television, newspapers etc. to create more awareness of the products a
s they have more recall value.
2. Company needs greater awareness of its product among target audiences.
3. More business opportunity seminars should be conducted to make people aw
are of the offer.
4. Company should regularly send its advisors to customers so that they sho
uld be aware of latest offer.
5. Total financial awareness and advice should be given to every customer.
6. Company should open more of its branches so as to promote its product an
d increase its agency force.
7. Some guarantee should be given on its most popular product LifeTime.
8. Short-term capital guaranteed products should be introduced.
9. More emphasis should be given on Smart Kid, PremierLife and Capital guar
anteed products by the advisors.

BIBLIOGRAPHY
1) Kothari C.R (1998), Research Methodology, Method and Technique, Wishwa P
arkashan New Delhi.
2) Gupta M.P, Khanna R.B (2004), Quantitative Technique for Decision Making
, Prentice Hall of India Pvt. Ltd. New Delhi.
3) Kotler Philip (2000), Marketing Management, Prentice Hall of India Pvt.
Ltd. New Delhi.
4) ‘Marketing and Sales Management’ Business Management Club (2003), http://www
.bestbusinessinfo.com
5) Still, Cundiff, Govoni, Sales Management, Prentice Hall of India Pvt. Lt
d. New Delhi.
6) Business Associates Manual
7) World Wide Web Sites:- www.ICICIPRULIFE.COMM

APPENDIX
QUESTIONNAIRE
NAME____________________________ AGE_____
QUALIFICATION____________________ OCCUPATION________________
Q 1. What is your annual income?
a. Less than 150000 [ ]
b. 150001 – 300000 [ ]
c. 300001 – 1000000 [ ]
d. Above 1000001 [ ]
Q 2. Do you make investments?
a. Yes [ ]
b. No [ ]
Q 3. If yes, where do you make investment?
a. Bank deposits [ ]
b. Mutual Funds [ ]
c. Shares [ ]
d. Life insurance [ ]
e. Postal deposit schemes [ ]
f. Real estate [ ]
g. Precious metal [ ]
Q 4. What are the reasons to make investments?
a. Tax Saving [ ]
b. Return [ ]
c. Capital Appreciation [ ]
d. Secure investment [ ]
e. Life cover [ ]
f. Other [ ]
Q 5. Are you satisfied with your Investment?
a. Yes [ ]
b. No [ ]
Q 6. Have you heard about private insurance company ICICI prudential life?
a. Yes [ ]
b. No [ ]
Q 7. From where did you come to know about ICICI prudential life insurance?
a. Electronic media [ ]
b. print media [ ]
c. Seminar [ ]
d. Workshops [ ]
e. Advisor [ ]
f. Others [ ]
Q 8. Do u have Insurance policy?
a. Yes [ ]
b. No [ ]
Q 9. If yes, which company policy do you have?
a. ICICI Prudential [ ]
b. HDFC Standard [ ]
c. Bajaj Allianz [ ]
d. Birla Sun Life [ ]
e. LIC [ ]
f. Other ………………………………...
Q 10. If Yes, please specify: -
PLAN NAME: _______________________
a. Saving plan [ ]
b. Protection plan [ ]
c. Pension plan [ ]
d. Children’ s plan [ ]
Q 11. Which Plan is it
a. ULIP [ ]
b. Traditional Plan [ ]
Q 12. What are the reason for investment in ULIP
a. Life protection [ ]
b. Investment and Savings [ ]
c. Flexibility [ ]
d. Transparency [ ]
e. Liquidity [ ]
f. Tax planning [ ]
Q 13. How much return you are expecting from your ULIP?
a. 15-25% [ ]
b. 25-35% [ ]
c. 35-45% [ ]
d. ABOVE THAN [ ]
Q 14. Do you think ULIP is a risky investment?
a. Very risky [ ]
b. Less risky [ ]
c. Safe [ ]
d. Very safe [ ]
Q 15. Do you have any plan to buy ULIP plans in near future?
a. Yes [ ]
b. No [ ]
Q 16. If you are not taking any ULIP plans, please tell us the reasons why?
a. We couldn’t afford [ ]
b. We don’t see any benefit with the system. [ ]
c. We don’t want insurance. [ ]
d. We don’t understand how ULIP works. [ ]
e. We are not too much aware of ULIP plans. [ ]
Q 17. What do u think Which Plan Gives u Max Benefits?
a. Traditional Plan [ ]
b. ULIP [ ]
Q 18. What steps do you suggested to the companies to make their ULIP plans mo
re popular?
a. Give more advertisements. [ ]
b. Arrange more workshops. [ ]
c. Arrange more seminars [ ]
d. Reduce charges [ ]
e. Create awareness through advisors [ ]
f. Others_______________________.