A COMPARATIVE STUDY ABOUT LIFE INSURANCE

1.1 INTRODUCTION TO THE STUDY

Everyone is exposed to various risks. Future is very uncertain, but there is way to protect
one’s family and make one’s children’s future safe. Life Insurance companies help us to
ensure that our family’s future is not just secure but also prosperous.

Life Insurance is particularly important if you are the sole breadwinner for your family.
The loss of you and your income could devastate your family. Life insurance will ensure
that if anything happens to you, your loved ones will be able to manage financially.

This study titled “Study of Consumers Perception about Life Insurance Policies” enables
the Life Insurance Companies to understand how consumer’s perception differs from
person to person. How a consumer selects, organizes and interprets the service quality
and the product quality of different Life Insurance Policies, offered by various Life
Insurance Companies.

Insurance is a tool by which fatalities of a small number are compensated out of

funds (premium payment) collected from plenteous. Insurance companies pay back for
financial losses arising out of occurrence of insured events e.g. in personal accident
policy death due to accident, in fire policy the insured events are fire and other allied
perils like riot and strike, explosion etc. hence insurance safeguard against uncertainties.
It provides financial recompense for losses suffered due to incident of unanticipated
events, insured with in policy of insurance. Moreover, through a number of acts of
parliament, specific types of insurance are legally enforced in our country e.g. third party
insurance under motor vehicles Act, public liability insurance for handlers of hazardous
substances under environment protection Act. Etc.
WHAT IS INSURANCE

It is a commonly acknowledged phenomenon that there are countless risks in every

sphere of life .for property, there are fire risk; for shipment of goods. There are perils of
sea; for human life there are risk of death or disability; and so on .the chances of
occurrences of the events causing losses are quite uncertain because these may or may
not take place. Therefore, with this view in mind, people facing common risks come
together and make their small contribution to the common fund. While it may not be
possible to tell in advance, which person will suffer the losses, it is possible to work out
how many persons on an average out of the group, may suffer losses. When risk occurs,
the loss is made good out of the common fund .in this way each and every one shares the
risk .in fact they share the loss by payment of premium, which is calculated on the
likelihood of loss .in olden time, the contribution make the above-stated notion of
insurance
DEFINITION OF INSURANCE
Insurance has been defined to be that in, which a sum of money as a premium is
paid by the insured in consideration of the insurer’s bearings the risk of paying a large
sum upon a given contingency. The insurance thus is a contract whereby:

a. Certain sum, termed as premium, is charged in consideration,

b. Against the said consideration, a large amount is guaranteed to be paid by
the insurer who received the premium,
c. The compensation will be made in certain definite sum, i.e., the loss or the
policy amount which ever may be, and
d. The payment is made only upon a contingency

More specifically, insurance may be defined as a contact between two parties, wherein
one party (the insurer) agrees to pay to the other party (the insured) or the beneficiary, a
certain sum upon a given contingency (the risk) against which insurance is required.
TYPES OF INSURANCE

Insurance occupies an important place in the modern world because of the risk, which
can be insured, in number and extent owing to the growing complexity of present day
economic system. The different type of insurance have come about by practice within
insurance companies, and by the influence of legislation controlling the transacting of
insurance business, broadly, insurance may be classified into the following categories:

1. Classification from business point of view

a) Life insurance, and
b) General insurance
2. Classification on the basis of nature of insurance

a) Life insurance
b) Fire insurance
c) Marine insurance
d) Social insurance, and
e) Miscellaneous insurance

3. Classification from risk point of view

a) Personal insurance
b) Property insurance
c) Liability insurance
d) Fidelity general insurance
THE IMPORTANCE OF INSURANCE

Insurance benefits society by allowing individuals to share the risks faced by many
people. But it also serves many other important economic and societal functions. Because
insurance is available and affordable, banks can make loans with the assurance that the
loan’s collateral (property that can be taken as payment if a loan goes unpaid) is covered
against damage. This increased availability of credit helps people buy homes and cars.
Insurance also provides the capital that communities need to quickly rebuild and recover
economically from natural disasters, such as tornadoes or hurricanes.

Insurance itself has become a significant economic force in most industrialized

countries. Employers buy insurance to cover their employees against work-related
injuries and health problems. Businesses also insure their property, including technology
used in production, against damage and theft. Because it makes business operations safer,
insurance encourages businesses to make economic transactions, which benefits the
economies of countries. In addition, millions of people work for insurance companies and
related businesses. In 1996 more than 2.4 million people worked in the insurance industry
in the United States and Canada. Insurance as an investment that offers a lot more in
terms of returns, risk cover & as also that tax concessions & added bonuses

Not all effects of insurance are positive ones. The possibility of earning insurance
payments motivates some people to attempt to cause damage or losses. Without the
possibility of collecting insurance benefits, for instance, no one would think of arson, the
willful destruction of property by fire, as a potential source of money.
THE INSURANCE INDUSTRY TODAY

Since the 1970s, the insurance business has grown dramatically and undergone
tremendous changes. As a result of the deregulation of financial services businesses—
including insurance, banking, and securities trading—the roles, products, and services of
these formerly distinct businesses have become blurred. For instance, citizens in the U.S.
state of California voted in 1988 to allow banks to sell insurance in that state. In Canada,
banks may also soon be allowed to sell insurance.

Advances in communications technology have also allowed traditionally

distinct financial businesses to keep instantaneous track of developments in other
businesses and compete for some of the same customers. Some insurance companies now
offer deposit accounts and mortgages. In the United States, life insurance companies now
sell more pension plans and other asset management services than they do conventional
life insurance.

Developments in computer technology that have given insurance providers

the ability to quickly access and process information have allowed them to custom-design
policies to fit the needs of individual customers. But the increasing complexity of policies
has also made some aspects of buying and selling insurance more difficult.

In addition, improvements in geological and meteorological technology have the

potential to change the way property insurers calculate risks of damage. For example, as
scientists improve their abilities to predict severe weather patterns, such as hurricanes,
and geological disturbances, such as earthquakes, insurers may change how they provide
protection against losses from such events
EVOLUTION OF INSURANCE IN INDIA

The marine insurance is the oldest form of insurance. If we trace Indian history
there are evidence that marine insurance was practiced here about three thousand years
ago. The code of Manu indicates that there was the practice of marine insurance carried
out by the traders in India with those of Srilanka, Egypt and Greece .it is wonderful to see
that Indians had even anticipated the doctrine of average and contribution. Fright was
fixed according to season and was then very much at the mercy of the wind and other
elements. Travelers by sea and land were very much exposed to the risk of losing their
vessels and merchandise because of piracy on open seas and highway robbery of
caravans was very common. The practice of insurance was very common during the rule
of Akbar to Aurangzeb, but the nature and coverage of the insurance in this period is not
well known. It was the British insurer who introduced general insurance in India in the
modern form. The Britishers opened general insurance in India around the year 1700 .the
first company known as the sun insurance office was set up in Calcutta in the year 1710.
This was followed by several insurance companies like London assurance and royal
exchange assurance (1720), Phoenix Assurance Company (1782). Etc. General insurance
business in the country was nationalized with effect from 1st January 1973 by the
General Insurance Business (Nationalization) Act, 1972. More than 100 non-life
insurance companies including branches of foreign companies operating within the
country were amalgamated and grouped into four companies, viz., the National Insurance
Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company
Ltd., and the United India Insurance Company Ltd. with head offices at Calcutta,
Bombay, New Delhi and Madras, respectively.
 Life insurance in the current form came in India from united kingdom
with the establishment of a British firm, oriental life assurance company in 1818 followed
by Bombay life assurance company in 1823, the madras equitable life insurance society
in 1829 and oriental life assurance company in 1874.prior to 1871, Indian lives were
treated as sub standard and charged an extra premium of 15% to 20%. Bombay mutual
life assurance society, an Indian insurer that came in to existence in 1871, was the first to
cover Indian lives at normal rates. The Indian insurance company Act 1923 was enacted
inter alia, to enable the government to collect statistical information about life and non-
life insurance business transacted in India by Indian and foreign insurer, including the
provident insurance societies.

The first half of the 20th century marked by two world war, the adverse affects
of the World War I and World War II on the economy of India, and in between them the
period of world wide economic crises triggered by the Great depression. The first half of
the 20th century was also marked by struggles for India’s independence. The aggregate
effect of these events led to a high rate of bankruptcies and liquidation of life insurance
companies in India. This had adversely affected the faith of the general public in the
utility of obtaining life cover

In this background, the Parliament of India passed the Life Insurance of India Act on
19th June 1956, and the Life Insurance Corporation of India was created on 1st
September, 1956, by consolidating the life insurance business of 245 private life insurers
and other entities offering life insurance services.
 Since 1972, the insurance sector has been totally under the control of
government of India through LIC and GIC and its subsidiaries. As a result, revenue of
both of them increased in the last years .the amount of savings pooled by LIC increased
from Rs.2704 crores in 1974 to Rs .57670 in 1994 with an annual growth rate of 16.53%
.similarly premium underwritten by GIC rose from 280 crores in 193 to 7647 crores in
1998 showing an annual growth rate of 25.18%.

Despite increase in premium collected by both LIC and GIC their were inefficiency
and red tapeisum creeped in to the insurance sector. Apart from that a major policy shift
by the Narasimha Rau government during 1990’s.the Indian economy opened for foreign
competition .In this background The government of India in 1993 had set-up a high
powered committee by R.N Malhothra ,former governor reserve bank of India, to
examine the structure of Indian insurance sector and recommended changes to make it
more efficient and competitive keeping in view structural changes in other part of the
financial system of the country.

Insurance sector has been opened up for competition from Indian private insurance
companies with the enactment of Insurance Regulatory and Development Authority Act,
1999 (IRDA Act). As per the provisions of IRDA Act, 1999, Insurance Regulatory and
Development Authority (IRDA) was established on 19th April 2000 to protect the
interests of holder of insurance policy and to regulate, promote and ensure orderly growth
of the insurance industry. IRDA Act 1999 paved the way for the entry of private players
into the insurance market, which was hitherto the exclusive privilege of public sector
insurance companies/ corporations.
EVOLUTION OF INSURANCE ORGANIZATION

With a view to serve the society, the insurance organizations have been developed
in different forms with innovation of insurance practice for social welfare and
development; some of these forms are outlined here.

a) Self-insurance
The arrangement in which an individual or concern sets up a private fund to meet
the future risk. If some losses happened in the future the firm meets the loss out of the
fund. While it may be called ‘self insurance’ it is not a single matter of fact, insurance at
all because there is no hedge, no shifting, or distributing the burden of risk among larger
Persons. It is merely a provision to meeting the unforeseen event. Here the insured
become the insurer for the particular risk. But it can be effectively worked only when
there is wide distribution of risks subjected the same hazard.

b) Partnership
A partnership firm may also carry on the insurance business for the sake of profit. Since it
is not an entity distinct from the persons comprising it, the personal liability of partners in
respect to the partnership debts is unlimited. In case of huge loss the partners may have to
pay from their own personal funds and it will not be profitable to them to starts insurance
business .in the early period before the advent of joint stock companies many insurance
undertakings were partnership firms or unincorporated companies

c) Joint stock companies

The joint stock companies are those, which are organized by the shareholders who
subscribe the necessary capital to start the business. These are formed for earning profits
for the stockholders who are the real owners of the companies. The management of a
company is entrusted to a board of directors who is elected by the shareholders from
amongst themselves. The company can operate insurance business and policyholders
have nothing to do with the management of the concern. But in life insurance it is the
practice to share certain portion of profit among the certain policyholders.
d) Mutual fund companies
The mutual fund companies are co- operative association formed for the
purpose of effecting insurance on the property of its members. The policyholders are
themselves the shareholders of the companies each member is insured as well as insured.
They have power to participate in management and in the profit sharing to the full extent.
Whenever the income is more than the expenses and claims, it is accumulated I the form
of saving and is entitled in reducing the rate of premium. Since the insured are insurers
also, they always try to reduce the management expenses and to keep the business at
sound level.

e) Co-operative insurance organizations

Cooperative insurance organizations are those concerns, which are
incorporated and registered under Indian cooperative societies Act. The concerns are also
called ‘co operative insurance societies’ these societies like mutual fund companies are
non profit organization .the aim is to provide insurance protection to its members at the
lowest reasonable net cost .the Indian insurance Act. 1938, has provided special
provisions for the co-operative insurance societies, but after nationalization the societies
have ceased to exist.

f) Lloyd’s Association

Lloyd’s association is one of the greatest insurance institutions in the world.

Taking its name from the coffee house Lloyd where underwriters assembled to transact
business and pick-up news. The organization traces its origins to the latter part of the
seventeenth century .so it is the oldest insurance organization in existing form in the
world. In 1871,Lloyds Act was passed incorporating the members of the association into
a single corporate body with perpetual succession and a corporate seal .the powers of
Lloyds corporation were extended from the business of marine insurance to the other
insurance and guarantee business. The Lloyds Association also publishes, Lloyds list and
register of shipping for the information of insuring public and the insurers
g) State Insurance

The government of a nation, some times, owns the insurance and runs the
business for the benefit of the public. The sate insurance is defined as that insurance
which is under public sector. In Brazil, Japan and Mexico, the insurance are largely
nationalized. Previously, the state undertook only those insurances, which were regarded
as vital for the national interest.

INSURANCE SECTOR REFORMS

Having looked at the insurance sector, the efforts made by the government to
make the industry more dynamic and customer friendly. To begin with, the Malhotra
committee was set up with the objective of suggesting changes that would achieve the
much required dynamism.

The Malhotra Committee Report

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. In 1994, the committee submitted the report and gave the
following recommendations:

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
All the insurance companies should be given greater freedom to operate
Competition
Private Companies with a minimum paid up capital of Rs.1bn should be allowed to enter
the industry
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.
Postal Life Insurance should be allowed to operate in the rural market.
Only one State Level Life Insurance Company should be allowed to operate in each stat
Regulatory Body
The Insurance Act should be changed.
An Insurance Regulatory body should be set up.
Controller of Insurance (Currently a part from the Finance Ministry)
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 to be carried out in the
insurance industry.
Overall, the committee strongly felt that in order to improve the customer services and
increase the coverage of the insurance industry should be opened up to competition.
But at the same time, the committee felt the need to exercise caution as any failure on the
part of new players could ruin the public confidence in the industry
Few Life Insurance policies are:

Whole life policies - Cover the insured for life. The insured does not receive money
while he is alive; the nominee receives the sum assured plus bonus upon death of the
insured.

Endowment policies - Cover the insured for a specific period. The insured receives
money on survival of the term and is not covered thereafter.

Money back policies - The nominee receives money immediately on death of the
insured. On survival the insured receives money at regular intervals during the term.
These policies cost more than endowment with profit policies.

Annuities / Children's policies - The nominee receives a guaranteed amount of money

at a pre-determined time and not immediately on death of the insured. On survival the
insured receives money at the same pre-determined time. These policies are best suited
for planning children's future education and marriage costs.

Pension schemes - are policies that provide benefits to the insured only upon retirement.
If the insured dies during the term of the policy, his nominee would receive the benefits
either as a lump sum or as a pension every month. Since a single policy cannot meet all
the insurance objectives, one should have a portfolio of policies covering all the needs
1.2 BACKGROUND OF THE STUDY
“Life Insurance is a contract for payment of a sum of money to the person assured on the
happening of the event insured against”. Usually the insurance contract provides for the
payment of an amount on the date of maturity or at specified dates at periodic intervals or
at unfortunate death if it occurs earlier. Obviously, there is a price to be paid for this
benefit. Among other things the contracts also provides for the payment of premiums, by
the assured.
Life Insurance is universally acknowledged as a tool to eliminate risk, substitute certainty
for uncertainty and ensure timely aid for the family in the unfortunate event of the death
of the breadwinner. In other words, it is the civilized world’s partial solution to the
problems caused by death. Life insurance helps in two ways dealing with premature
death, which leaves dependent families to fend for themselves and old age without visible
means of support.
The most common types of life insurance are whole life insurance and term life
insurance. Whole life insurance provides a lifetime of protection as long as you pay the
premiums to keep the policy active. They also accrue a cash value and thus offer a
savings component. Term life insurance provides protection only during the term of the
policy and the policies are usually renewable at the end of the term
 There are many Life Insurance Companies like

LIFE INSURANCE CORPORATION OF INDIA

BAJAJ ALLIANZ LIFE INSURANCE COMPANY

ICICI PRUDENTIAL LIFE INSURANCE COMPANY

HDFC STANDARD LIFE INSURANCE COMPANY

BIRLA SUN-LIFE INSURANCE COMPANY

ING VYSYA LIFE INSURANCE COMPANY

METLIFE INSURANCE COMPANY

TATA AIG LIFE INSURANCE COMPANY

MAX NEW YORK LIFE INSURANCE COMPANY

OM KOTAK MAHINDRA LIFE INSURANCE COMPANY

2.1 STATEMENT OF THE PROBLEM

This Study will help us to understand the consumer’s perception about life
insurance companies. This study will help the companies to understand, how a
consumer selects, organizes and interprets the Quality of service and product
offered by life insurance companies.

2.2 SCOPE OF THE STUDY

The study will be able to reveal the preferences, needs, perception of the
customers regarding the life insurance products, It also help the insurance
companies to know whether the existing products are really satisfying the
customers needs .

2.3 NEED FOR THE STUDY

1) The deeper the understanding of consumer’s needs and perception, the earlier
the product is introduced ahead of competitors, the expected contribution
margin will be greater. Hence the study is very important.
2) Consumer markets and consumer buying behavior can be understood before
sound product and marketing plans are developed
3) This study will help companies to customize the service and product,
according to the consumer’s need.
4) This study will also help the companies to understand the experience and
expectations of the existing customers.
5) Apart from creating, manufacturing and distribution capabilities for life
insurance products, an in depth study of the consumers, their preferences and
demand for their product is very necessary for setting up an efficient
marketing network.
2.4 OBJECTIVE OF THE STUDY
o Ascertain the profile and characteristics of potential buyers.

o To have an insight into the attitudes and behaviors of customers.

o To find out the differences among perceived service and expected service
.
o To produce an executive service report to upgrade service characteristics of
life insurance companies.

o To access the degree of satisfaction of the consumers with their current brand
of Insurance products.
PROFILE OF THE INDUSTRY
3.1 INDUSTRY PROFILE

History and Development of Life Insurance

Life Insurance, in its present form, came to India from the United Kingdom with
establishment of a British firm, Oriental Life Insurance Company in Calcutta in 1818,
followed by Bombay Life Assurance Company in 1823, the Madras Equitable Life
Insurance society in 1829 and Oriental Government security Assurance Company in
1874. Prior to 1871, Indian Lives were treated as sub-standard and charged an extra
premium of 15% to 20%. Bombay Mutual Life Assurance Society, a Indian insurer which
came into existence in 1871 was the first to cover Indian lives at normal rates.

The Indian life Assurance Companies Act, 1912 was the first statutory measure to
regulate life insurance business. Later, in 1928, the Indian Insurance Companies Act was
enacted, to enable the government to collect statistical information about both life and
non-life insurance business transacted in India by Indian and foreign insurers, including
the provident insurance societies. Comprehensive arrangements were, however, brought
into effect with the enactment of the Insurance Act, 1938.

By 1956, 154 Indian insurers, 16 non-Indian insurers and 15 provident societies were
carrying online insurance business in India. On 19th January 1956, the management of the
entire life insurance business of 229 Indian insurers and provident insurance societies and
the Indian life insurance business of 16 non-Indian Life insurance companies then
operating in India, was taken over by the central Government and then nationalized on 1 st
September 1956 when the Life Insurance Corporation came into existence.

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 and presently is of the order of Rs 450 billion. Together with banking services,
it adds about 7 per cent to the country’s GDP. Gross premium collection is nearly 2 per
cent of GDP and funds available with LIC for investments are 8 per cent of GDP.
 Yet, 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 itself is an indicator that growth
potential for the insurance sector is immense.

A well-developed and evolved insurance sector is needed for economic

development as it provides long-term funds for infrastructure development and at the
same time strengthens the risk taking ability. It is estimated that over the next ten years
India would require investments of the order of one trillion US dollar. The Insurance
sector, to some extent, can enable investments in infrastructure development to sustain
economic growth of the country.

INSURANCE AND BUSINESS ENVIRONMENT

Insurance is considered as one of the important segment of the economy for its growth
and development. This industry provides long term funds which are essential for the
growth and development of the nation .so the growth of insurance industry largely
depends up on the environment in which they exists. Here I would like to mention about
Indian business environment and their impact on insurance sector. There are two type of
environment which affect the business one is environment which is internal to the
organization (internal environment) and the other one which is external to the
organization (external environment). Internal environment includes management,
technology, competitors, employees, shareholders, policyholders, marketing intermediary
etc. The external environment of insurance business has been classified in four parts,
namely legal, economic, financial, and commercial. let us discus them in detail by taking
one by one.
THE INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY
(IRDA)
The Malhotra Committee felt the need to provide greater autonomy to insurance
companies in order to improve their performance and enable them to act as independent
companies with economic motives. For this purpose, it had proposed setting up an
independent regulatory body- The Insurance Regulatory and Development Authority.
Based on the Malhotra committee report in April 2000 IRDA was incorporated. Since
being set up as an independent statutory body the IRDA has put in a framework of
globally compatible regulations. Section 14 of the IRDA Act 1999, lays the duties, power
and functions of the authority .the authority shall have the duty to regulate, promote and
ensure orderly growth of the insurance business and reinsurance business.

Reforms and Implications

The liberalizations of the Indian insurance sector has been the subject of much heated
debate for some years. The sector is finally set to open up to private competition. The
Insurance Regulatory and Development Authority bill will clear the way for private entry
into insurance, as the government is keen to invite private sector participation into
insurance. To address those concerns, the bill requires direct insurers to have a minimum
paid-up capital of Rest. 1 billion, to invest policyholder’s funds only in India; and to
restrict international companies to a minority equity holding of 26 percent in any new
company. Indian Promoters will also have to dilute their equity holding to 26 percent
over a 10-year period.
Over the past three year, around 30 companies have expressed interest in entering the
sector and many foreign and Indian companies have arranged alliances. Whether the
insurer is old or new, private or public, expanding the market will present challenges. A
number of foreign Insurance Companies have set up representative offices in India and
have also tied up with various asset management companies. Some of the Indian
companies, which have tied up with International partners, are.
 Indian Partners International Partners
Bombay Dyeing General Accident, UK
Tata American Int. Group, US
Dabur Group Liberty Mutual Fund, US
ICICI Prudential, UK
Sundaram Finance Winterthur Insurance, Switzerland
Hindustan Times Commercial Union, UK
Ranbaxy Cigna, US
HDFC Standard Life, UK
CK Birla Group Zurich Insurance, Switzerland
DCM Shriram Royal Sun Alliance, UK
Godrej J Rothschild , UK
M A Chidambaram Met Life
Cholamandalam Guardian Royal Exchange, UK
SK Modi Group Legal and General, Australia
20th Century Finance Canada Life
Alpic Finance Allianz Holding, Germany
Vysya Bank ING
Kotak Mahindra Chubb, US

The likely impact of opening up of India’s insurance sector is that private players
may swamp the market. International insurers often derive a significant part of
their business from multinational operations. Multinational insurers are indeed
keenly interested as; perhaps there home markets are saturated while emerging
countries have low insurance penetration and high growth rates
Type of life insurance policies

Whole life insurance

Whole life is a form of permanent insurance, with guaranteed rates and guaranteed cash
values. It is the least flexible form of permanent insurance.

Universal life insurance

Universal life is similar to whole life, except that you can change the death benefit (the
money paid to the beneficiary when the insured person dies), the amount of premiums
and how often you pay the premiums.

Variable life insurance

Variable life insurance is the riskiest form of permanent insurance, but it can also give
you the best return for your money. Essentially, the life insurance company will invest
your insurance premiums for you. If the investments do well, the death benefit and cash
value of the policy go up. If they do poorly, they go down. It's a little like putting your
savings into the stock market.

Group life insurance

Many companies allow their employees to buy group life insurance through the company.
Usually, you can get very good rates for this insurance but you have to give the insurance
up when you stop working there. For that reason, group insurance can be a good way to
buy a little extra life insurance, but it does not make sense to make it your main policy.
There are a number of policies for specific insurance needs. Some of these include:

1. Family income life insurance.

This is a decreasing term policy that provides a stated income for a fixed period of
time, if the insured person dies during the term of coverage. These payments
continue until the end of a time period specified when the policy is purchased.

2. Family insurance.
A whole life policy that insures all the members of an immediate family --
husband, wife and children. Usually the coverage is sold in units per person, with
the primary wage-earner insured for the greatest amount.

3. Senior life insurance.

Also known as graded death benefit plans, they provide for a graded amount to be
paid to the beneficiary. For example, in each of the first three to five years after
the insured dies, the death benefit slowly increases. After that period, the entire
death benefit is paid to the beneficiary. This might be appropriate if the
beneficiary is not able to handle a large amount of money soon after the death, but
would be in a better position to handle it a few years later.

4. Juvenile insurance.
This is life insurance on a child. Coverage is paid for by an adult, usually the
parents or guardians. Such policies are not considered traditional life insurance
because the child is not producing an income that needs to be protected. However,
by buying the policy when the child is young, the parents are able to lock in an
extremely low premium rate and allow many more years of tax-deferred cash
value buildup
.
5. Credit life insurance.
This insurance is designed to pay off the balance of a loan if you die
before you have repaid it. Credit life insurance is available for many
kinds of loans including student loans, auto loans, farm equipment loans,
furniture and other personal loans including credit cards. Credit life
insurance can be purchased by an individual. Usually it is sold by
financial institutions making loans, like banks, to borrowers at the time
they take out the loan. If a borrower dies, the proceeds of the policy
repay the loan directly to the lender or creditor.

6. Mortgage insurance

This decreasing term coverage is designed to pay off the unpaid balance
of a mortgage if you die before the mortgage is paid off. Premiums are
generally level throughout the term of the policy. The policy is usually
independent of the mortgage, meaning that the financial institution
granting the mortgage is separate from the insurance company issuing the
policy. The proceeds of the policy are paid to the beneficiaries of the
policy, not the mortgage company. The beneficiary is not required to use
the proceeds to pay off the mortgage

7. Annuity
An annuity is a form of insurance that enables you to save for your
retirement. Basically, you give the insurance company money for a
certain period of time, and then after you retire they will pay you a
certain amount of money every year until you die. There are many
different forms of annuities. Most people who buy annuities are 55 or
older
 Profile of the organization

ICICI Prudential Life Insurance

ICICI Prudential Life Insurance Company Limited (ICICI Prudential Life) is promoted by ICICI
Bank Limited and Prudential Corporation Holdings Limited.
ICICI Prudential Life began its operations in fiscal year 2001 and has consistently been amongst
the top players* in the Indian life insurance sector. Our Assets Under Management (AUM) as on
31st March 2019 were `1,604.10 billion. 
At ICICI Prudential Life, we operate on the core philosophy of customer centricity. We offer
long term savings and protection products to meet different life stage requirements of our
customers. We have developed and implemented various initiatives to provide cost-effective
products, superior quality services, consistent fund performance and a hassle-free claim
settlement experience to our customers.
In FY2015 ICICI Prudential Life became the first private life insurer to attain assets under
management of `1 trillion. ICICI Prudential Life is also the first insurance company in India to
be listed on NSE and BSE.

Vision

To build an enduring institution that serves the protection and long-term saving needs of
customers with sensitivity.

Values: The way we do things

The success of the company will be founded in its unflinching commitment to 5 core values -
Integrity, Customer First, Boundaryless, Humility and Passion. Each of the values describes what
the company stands for, the qualities of our people and the way we work. Every member of the
ICICI Prudential team is committed to the 5 core values and these values shine forth in all that
we do.

 Customer First: Keep customers at the center of everything we do

 Humility: Openness to learn and change

 Passion: Demonstrate infectious energy to win and excel

 Integrity: Do the right thing

 Boundaryless: Treat organization agenda as paramount

 Why Choose our Top selling Term Plan – ICICI Pru iProtect Smart?

 It fits in your tight budget: After paying your monthly rent, phone and light bills, a term
insurance premium can be difficult. ICICI Pru iProtect Smart’s affordable premiums make sure it
isn’t.

 It gives you longer cover: The best time to buy life insurance is now. Buying now will
ensure that you get life cover at low premiums for the desired term. ICICI Pru iProtect Smart can
cover you till the age of 85 and you also have option to get whole life insurance till age 99.

 It gives you option to cover 34 critical illnesses: ICICI Pru iProtect Smart pays on the
diagnosis of any one of 34 critical illnesses. No hospital bills are required.

 It provides you option of lump sum or income:  ICICI Pru iProtect Smart allows your
family to get their life insurance payout as a lump sum, income or a combination of both. A lump
sum payment is a single payment made to the nominee on the death of the insured person. An
income payment is a series of annual or monthly payments, made to the nominee on the insured
person’s death. The latter option can save your family from the hassle of managing and investing
a large sum of money.

 It gives you accelerated pay out in case of terminal illness: ICICI Pru iProtect Smart
pays out your insurance cover even before death, if you are affected by a terminal illness.

 It provides you Protection against other claims: You can buy the insurance policy
under the Married Woman’s Property Act. This protects the money paid under the policy from
other claims. It thus provides an additional layer of protection to your family.

Aegon Life Insurance

Aegon Life is not exactly everywhere you turn. So, what makes us a very special kind of Life
Insurance company?

As Aegon, we are present in more than 20 countries in the Americas, Europe and Asia. In the
US, we are market leaders, and well known for our iconic skyscraper that is a landmark of the
San Francisco skyline. We began operations 173 years ago, and today, we have 30 million
customers, more than 29,000 employees and manage investments worth 743 billion Euros.

In India, our partner is a very respected group who know the country like the back of their
hand. Times Group, the Company whose flagship newspaper, the Times of India, has been
touching the life of almost every Indian in one way or the other.

With a 179 year legacy, TOI today enjoys the support of 25,000 advertisers and millions of
readers across the continents.
Today, Aegon Life is a new-age digital service company with our own company-employed
service team that is fully geared to provide you the highest levels of service. Because we have
done away with external Agents, our premiums are usually lower, and our direct dialogue with
our customers make for greater clarity and transparency.

WHY AEGON LIFE FOR TERM INSURANCE PLANS

01. TRUST ON BRAND

Established more than 170 years ago, Aegon - world's leading financial services, today operates
in over 20 countries. Launched in 2008 with pan-India operations, Aegon Life Insurance
Company Limited in India partnered with the reputed Bennett Coleman & Company Limited,
i.e., The Times Group to offer insurance plans. Aegon Life Insurance leverages digital platforms
to bring transparent solutions with a direct to customer approach. Aegon offers a wide range of
insurance products such as term life insurance plan, pension plans, unit-linked insurance plans
(ULIPs), health insurance plans, child education plans, and more.

 02. E-BUSINESS LEADER

We have garnered awards in various fields, making us a well-known, reputed and recognisable
brand. In 2013, Aegon Life won the 'Best Product & Distribution Award' at the Indian Life
Insurance Award 2013 presented by EDGE Advisory Services. In 2013, 2014, 2015 and 2016,
we consistently won the 'E-Business Leader Award' at the Indian Insurance Awards. In 2016,
Aegon Life received the 'Best Service Quality Program' award by the Service Quality Awards.

 
03. CLAIMS HONOURED

We at Aegon Life offer easy claim settlements. We consistently pay out all genuine claims with
our standard claim process. In 2018-2019, our claim settlement ratio was 96.45%.

We understand the need of having financial security during troubled times. Our primary
objective is to ensure smooth claim settlement for you and your family, from the beginning until
the last step.

04. ON THAT ACCOUNT

Arguably one of the best decisions you will make is opting for a term plan, but it is perplexing as
well. The key to electing the right policy is planning, planning and more planning, plus cherry-
picking a policy which meets your requirements and budget!

HDFC Life Insurance Life

HDFC Life Insurance Company Limited (Formerly HDFC Standard Life Insurance Company
Limited) ('HDFC Life' / ‘Company’) is a joint venture between HDFC Ltd., one of India’s
leading housing finance institution and Standard Life Aberdeen, a global investment company.
Established in 2000, HDFC Life is a leading long-term life insurance solutions provider in India,
offering a range of individual and group insurance solutions that meet various customer needs
such as Protection, Pension, Savings, Investment and Health. As on March 31, 2019 the
Company had 38 individual and 11 group products in its portfolio, along with 8 optional rider
benefits, catering to a diverse range of customer needs.
HDFC Life continues to benefit from its presence across the country with 412 branches and
additional distribution touchpoints through several partnerships.  The partnerships comprise 265
bancassurance partners including NBFCs (Non-Banking Financial Companies), MFIs (Micro
Finance Institutions), SFBs (Small Finance Banks), etc. and 39 partnerships within non-
traditional ecosystems. The Company is also strengthened by a strong base of financial
consultants.
In Fiscal 2012, The Company established a wholly-owned subsidiary, HDFC Pension
Management Company Ltd., to operate its pension fund business under the National Pension
Scheme (NPS). And in Fiscal 2016, the Company established its first international wholly-owned
subsidiary in the UAE, HDFC International Life and Re Company Ltd., to operate its reinsurance
business.
How Term Insurance Plan from HDFC Life helps you?
Term Insurance Plan by HDFC Life provides you with the advantage of large life insurance
cover for an affordable premium.
Riders covering other risks such as accident are available and can be attached to term plans and
provide a much wider protection to your family.

Max Life Insurance

Max Life Insurance Company Limited (formerly known as Max New York Life Insurance
Company Limited) is a life insurance company in India. The company is a subsidiary of the
publicly listed Max Financial Services Limited and is the largest non-bank private-sector life
insurer in India. It was founded in 2000 after the liberalization of the insurance sector in India
and its operations began in 2001. Analjit Singh, founder of Max Healthcare, is the chairman of
Max Life Insurance.[1] The company is headquartered at New Delhi.

Max Life Insurance is a part of the Max India Ltd. Group. It is a joint venture between Max
Financial Services and Mitsui Sumitomo Insurance Company. The former owns 68% of the
company while the latter owns 26%.[2] After forming the joint venture partnership with Mitsui
Sumitomo, Max Life changed its name from Max New York Life in 2012. In February
2016, Axis Bank held a 6% share in Max Life.
Max Life has approximately 2,00,000 life insurance customers in India. Its distribution channel
includes banks, individual agents, brokers, and corporate agents, among others. It provides
linked, participating and non-participating products. Apart from life coverage, it also covers
health, pension, and annuity. It offers child, protection, retirement, savings, and growth plans to
individuals and to groups.

TATA AIG
Tata AIG General Insurance Company Limited is an Indian general insurance company and
a joint venture between the Tata Group and American International Group (AIG).[2] Tata AIG
General Insurance Company Limited was incorporated on 24th August 2000 and commenced
operations on 22nd January 2001 on obtaining license from IRDAI. The company has made a
mark in the industry by launching several innovative products and services over the years. Tata
AIG 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 percent stake in this venture with AIG holding the balance 26 percent.
Under its two main business verticals i.e. Consumer Lines and Commercial Lines, Tata AIG
General Insurance Company Limited offers an extensive range of General Insurance covers that
cater to various individual and business insurance needs. The products range from Home
Insurance, Motor Insurance, Travel Insurance, Health Insurance, Rural-Agriculture Insurance,
etc., for individuals under the Consumer Line vertical, and Property & Business Interruption
insurance; D&O, Professional and General  Liability Insurance; and special products like Reps &
Warranties and Environmental Insurance under the Commercial Lines vertical. Each product
offering is backed by professional expertise to help the customer along the entire relationship
period.
Today Tata AIG General Insurance Company Limited’s core strength lies in 3 product
categories, i.e., Travel Insurance, Marine Insurance and Liability and the company aims to be the
most preferred General Insurance Company in the industry. In order to achieve objective, the
company is increasing its general insurance penetration in India with various significant
partnerships with leading business names from varied industries. The Bancassurance & Affinity
team is responsible for initiating and tapping partnerships with Banks, NBFCs, HFCs and other
fintech & affinity partners.
To help its distributors significantly increase their insurance knowledge, the company had
established the ‘Tata AIG Academy’ in May 2014 with a vision to be a centre of excellence in
learning in the General Insurance domain. Its mission is to align the training programmes with
the strategic business and developmental needs of Tata AIG General Insurance Company
Limited as well as to empower employees and partners to succeed in a fast-changing competitive
environment.

Aditya Birla Life Insurance

About Aditya Birla Sun Life Insurance, an Aditya Birla Capital Company

Aditya Birla Sun Life Insurance Company Limited (ABSLI), is a life insurance subsidiary of
Aditya Birla Capital Ltd (ABCL). ABSLI was incorporated on August 4th, 2000 and commenced
operations on January 17th, 2001. ABSLI is a 51:49 a joint venture between the Aditya Birla
Group and Sun Life Financial Inc., a leading international financial services organization in
Canada.

Formerly known as Birla Sun Life Insurance Company Limited, ABSLI is one of India’s leading
life insurance companies offering a range of products across the customer’s life cycle, including
children future plans, wealth protection plans, retirement and pension solutions, health plans,
traditional term plans and Unit Linked Insurance Plans (“ULIPs”).

As of September 30th September 2019 , total AUM of ABSLI Stood at Rs. 431,875 million.
ABSLI recorded a gross premium income of Rs. 18,248 million in Q2 FY 2019-20 and
registering a y-o-y growth of 1% in Individual First Year Premium and currently ranked 7th in
Individual Business (Individual FYP adjusted for 10% single premium) (Source: IRDAI reported
Financials). ABSLI has a nation-wide distribution presence through 397 branches, 8
bancassurance partners, 6 distribution channels, over 82,000 direct selling agents, other
Corporate Agents and Brokers and through its website. The company has over 10000 employees
and more than 16 lac active customers.

ABSLI DigiShield Plan

Life can take sudden turns, faster than you can think. Your family should be ready to deal with
such unforeseen situations. With the new Aditya Birla Sun Life Insurance DigiShield Plan,
choose to shield them with greater certainty, depending on their future needs. You can customise
the plan as per your requirements at every stage of life at an affordable cost.

Key features of the plan

 Complete financial protection at an affordable cost

 Two plan options to suit your protection needs
 Option to enhance coverage at key milestones of your life
 Option to cover your spouse under the same policy
 Inbuilt terminal illness benefit
 Multiple options to receive death benefit to meet your needs
 Flexible premium paying terms
 Enhance your insurance with appropriate rider options

ABSLI UltimaTerm
A non-linked non – participating term insurance plan

To protect your family against future uncertainties and to ensure that their dreams are secured
even when you are not around, we have introduced Aditya Birla Sun Life Insurance UltimaTerm,
an affordable term plan. This plan protects you and your family’s needs and gives them the
protection they truly deserve. It offers inbuilt terminal illness, enhanced protection at all key
milestones of your life and is also easy on your pocket.

Key features

 Option to enhance coverage at key milestones of your life

 Inbuilt Terminal Illness Benefit
 Long term insurance protection cover of up to 50 years
 Multiple options to receive death benefit to meet your changing needs
 Flexible premium paying terms
 Enhance your insurance with appropriate riders

PNB Met Life

PNB MetLife India Insurance Company Limited (PNB MetLife) is one of the leading life
insurance companies in India. PNB MetLife  has as its shareholders MetLife International
Holdings LLC (MIHL), Punjab National Bank Limited (PNB), Jammu & Kashmir Bank Limited
(JKB), M. Pallonji and Company Private Limited and other private investors, MIHL and PNB
being the majority shareholders. PNB MetLife has been present in India since 2001.

PNB MetLife brings together the financial strength of a leading global life insurance provider,
MetLife, Inc., and the credibility and reliability of PNB, one of India's oldest and leading
nationalised banks. The vast distribution reach of PNB together with the global insurance
expertise and product range of MetLife makes PNB MetLife a strong and trusted insurance
provider.

PNB MetLife is present in 107 locations across the country with access to over 100 million
customers in more than 11,000 locations through its strong bank partnerships with PNB, JKB,
KBL and other bank partners.
PNB MetLife partners with the customers for their entire ‘Circle of Life’ covering their 4
different stages of life – Child Education, Family Protection, Long Term Savings and
Retirement. Our comprehensive product portfolio comprises of 16 Savings Products, 13
Protection Products, 5 pension products, and 8 optional riders.
PNB MetLife wide range of protection and retirement products through its Agency sales of over
7,338 financial advisors and multiple bank partners, and provides access to Employee Benefit
plans for over 659 corporate clients in India. The company continues to be consistently profitable
and has declared profits for last five Financial Years.

Fast Facts
MD & CEO: Ashish Kumar Srivastava
Established in India:  2001
Regional Headquarters:  Hong Kong
Employees:  10,444
Offices:  107 locations
Products:  Life Insurance, Retirement Solutions and Employee Benefit Programs

Highlights
 History : PNB MetLife incorporates in India in 2001 and establishes a pan-Indian
footprint within 16 years of operations
 Robust Distribution: Multi-channel distribution with strong Agency, Bancassurance and
Direct channels; with a presence in more than 700 distinct cities through a bank branch
network of over 11,588 branches and access to over 105 million customers. 
 Building of brand through Badminton: PNB MetLife believes in nurturing talent from
grass root level with an aim to reach out to young talent across the country. To promote
badminton on-ground, the company has successfully launched its fifth season of the annual
property - Junior Badminton Championship (JBC 5) in June this year.

2019:
 PNB MetLife ties-up with Esaf Small Finance Bank

 PNB MetLife on-boards PV Sindhu at its Brand ambassador

 The Economic Times lists PNB MetLife among ‘Top 10 trusted Life Insurers of India’
and recognizes among the Best Brands of 2019

MetLife Foundation
MetLife Foundation is the charitable arm of MetLife, Inc. and was created in 1976 as one
important way to reflect the commitment to corporate social responsibility, MetLife has always
demonstrated. Since it was founded, the Foundation has made contributions of over $600 million
to help people in need and improve communities. MetLife Foundation has been working with
organisations like Sesame Street, Trickle Up, Ujjiva (via Woman World Banking), Parinaam
Foundation, among others to promote Financial Inclusion. These projects are focused on low
cost credit, women empowerment and financial literacy.

PNB MetLife Mera Term Plan is a simple and easy to buy solution that helps you
1. Safeguard your family’s financial independence even in your absence
2. Joint life benefit to cover your spouse in the same policy
3. Freedom for your children to pursue their dream career and goals without any financial
worries
4. Coverage of up to 99 years
5. Choose to either pay premiums for the chosen coverage period or to pay premiums for 10
years

Bajaj Allianz Life Insurance Company Limited

Bajaj Allianz Life is one of the leading private life insurance companies in India. The Company
is a partnership between two powerful and successful entities in their own right – Bajaj Finserv
Limited, one of India’s most diversified non-banking financial institution and Allianz SE, one of
world’s leading asset manager and insurer.
Commencing its operations in 2001, Bajaj Allianz Life has in less than two decades expanded its
presence across the country. It serves millions of customers through its 582 branches, 80,000+
agents (as on 31 December 2019), comprehensive set of trusted partners and via its online sales
channel. The Company’s brand promise of Life Goals.Done. drives it to launch innovative
insurance solutions, including the revolutionary RoMC (Return of Mortality Charges), a feature
in some of its new-age ULIPs, and thereby becoming the first company to do so. Bajaj Allianz
Life has constantly transformed to offer tech-enabled state-of-the-art services to enhance
customer delight. The Company continues to engage with customers through several unique
platforms, and has secured a place in the Guinness Book of World Records with the Bajaj
Allianz Life Plankathon 2018.

Why Bajaj Allianz Term Insurance Plan

The financial security of your family hinges on the timely payment of the sum assured promised
by the insurer. Bajaj Allianz Life stands committed to this promise as can be seen through its
claim settlement ratio of over 90%, over the last five years. This proves that it is a trustworthy
partner to ensure the financial stability and security of your loved ones in case life takes an
untoward turn. Besides, it has a bouquet of innovative term insurance plans to suit all needs of
policyholders.

Analysis

  ICICI PRUDENTIAL
Premium 811
Max Coverage Upto 99YRS
Claim Settlement Ratio 98.60%
Average Claim Trend 97.73%
Issuance Time 7 DAYS

Medical Required Mandatory

Premium:Limited Pay 2,164 monthly

Return of Premium
Plan 1608 monthly 1881monthly
free Lock Period 30 days
Tax Benefit Yes
   
Riders Details  
Waiver of Premium Free
Death Due to Accident Yes
Disability Due to
Accident No
Terminal illness Free
Enhanced Critical
illness Yes
Cover For Spouse No

HDFC
  Life MAX LIFE
Premium 716 561
Max Coverage Upto 85 73
Claim Settlement
Ratio 99% 98.70%
Average Claim Trend 98.13% 98.27%
Issuance Time 8 DAYS 8 DAYS
Mandator
Medical Required No y
Premium:Limited Pay 1516 1900
Return of Premium
Plan 1337 1012
free Lock Period 30 30
Tax Benefit Yes Yes
     
Riders Details    
Waiver of Premium Yes Yes
Death Due to
Accident Yes Yes
Disability Due to
Accident Yes Yes
Terminal illness Free No
Enhanced Critical
illness No No
Cover For Spouse No No

Aditya PNB Met

  Birla Life
Premium 745 669
Max Coverage Upto 73 99
Claim Settlement Ratio 97.10% 96.20%
Average Claim Trend 96.07% 91.47%
Issuance Time 11 11
Medical Required Mandator Tele
 y
Premium:Limited Pay 2621 1725
Return of Premium
Plan NA 1185
free Lock Period 30 30
Tax Benefit Yes Yes
     
Riders Details    
Waiver of Premium No No
Death Due to Accident No Yes
Disability Due to
Accident Yes Yes
Terminal illness Free No
Enhanced Critical
illness No No
Cover For Spouse No Yes