You are on page 1of 43

Unit Linked Insurance Policy

TABLE OF CONTENTS
SUMMARY .................................................................................................. Error! Bookmark not defined. INTRODUCTION .......................................................................................... Error! Bookmark not defined. What is ULIP ? .......................................................................................... Error! Bookmark not defined. Working of ULIP....................................................................................................................................... 3 Charges Under ULIP ................................................................................................................................. 3 Policy administration charges .............................................................................................................. 4 Premium allocation charges ................................................................................................................. 4 Mortality charges................................................................................................................................. 4 Fund management charges .................................................................................................................. 4 Rider CHARGES .................................................................................................................................... 5 Switching charges ................................................................................................................................ 5 Top Up charges .................................................................................................................................... 4 Surrender charges................................................................................................................................ 4 Types of ULIP ........................................................................................................................................... 4 Relevance of the study ............................................................................................................................ 5 Research Objective ..................................................................................... Error! Bookmark not defined. Research Methodology ............................................................................... Error! Bookmark not defined. RESULTS ..................................................................................................... Error! Bookmark not defined. Limitation of Study ..................................................................................... Error! Bookmark not defined. RECOMMENDATIONS ................................................................................. Error! Bookmark not defined. Conclusion .................................................................................................. Error! Bookmark not defined. APPENDIX ................................................................................................... Error! Bookmark not defined. Exhibit 1............................................................................................................................................. 15 Exhibit 2............................................................................................................................................. 20 Exhibit 3............................................................................................................................................. 32

Page | 1

Unit Linked Insurance Policy

SUMMARY
The project aims at analysis of awareness among the people about Unit linked investment plans. Analyze insurance as an investment option/avenue. The project has a detailed study of various insurance plans offered by major players in insurance industry. People perception about them and comparison of various plans offered. The project aims to help understand the consumer behavior towards unit linked insurance policy (ULIP). The report enhances the knowledge on how various concepts learned in the classroom are implemented in real life environment. It also deals with inter functional linkages. The project assigned entitles to understand ULIP as an innovative investment avenue and to analyze perception among the people about it.

Page | 2

Unit Linked Insurance Policy

INTRODUCTION
In last two decades, after liberalization in India, GDP (Appendix1) of India has seen noteworthy surge indicating escalation in income level of common people. This amplified level has enthused people to quest for diverse sources of investment options. ULIP has originated as a virtuous option for venture beside with other choices like bonds, debentures, mutual funds etc. ULIP has its benefits and downsides as any other possibility of investment bearing in mind which individuals forms perception and make choice regarding investment. This project targets at ascertaining perception of ULIPs consumers and potential market in India. This project will try to walk around the awareness level amongst corporate folks and attempts to examine the conjectural factors for investing decision selection midst masses.

WHAT IS ULIP
ULIPs are a category of goal-based financial solutions that combine the safety of insurance protection with wealth creation opportunities. In ULIPs, a part of the investment goes towards providing you life cover. The residual portion of the ULIP is invested in a fund which in turn invests in stocks or bonds; the value of investments alters with the performance of the underlying fund opted by an individual. The main benefit of ULIP is transparency. Unit linked insurance plan (ULIP) is a life insurance solution that provides the client with the benefits of protection and flexibility in investment. It is a solution which provides for life insurance where the policy value at any time varies according to the value of the underlying assets at the time. The investment is denoted as unit and is represented by the value that it has attained called as Net Asset Value (NAV).

Unit Linked Insurance Policies

Units in Funds

Underlying Investment

As time progressed the plans were also successfully mapped along with life insurance needs to retirement planning. In todays times ULIP provides solution for all the needs of a client like insurance planning, financial needs, financial planning for childrens future and retirement planning.

Page | 3

Unit Linked Insurance Policy

Premium

Less Charge

Investment represented as units

Life Cover

WORKING OF ULIP
When an individual decides the amount of premium to be paid and the amount of life cover he wants from the ULIP, the insurer deducts some portion of the ULIP premium upfront. This portion is known as the Premium Allocation charge, and varies from product to product. The rest of the premium is invested in the fund or mixture of funds depending upon the company portfolio and fund plan chosen by the individual. The fund of an individual is invested either in equity or debt or a combination of the two in various ratios. The fund value will reflect the performance of the underlying asset classes. At the time of maturity of the plan, the individual is entitled to receive the fund value as at the time of maturity.

CHARGES UNDER ULIP


There are numerous charges which are imposed by the issuing company. Some charges are periodic (e.g. mortality and administrative charges), some are user dependent (e.g. fund switching charges) and some are one time charges (e.g. surrender charges). Following is the extensive classification of charges levied by the insurance corporations in India:

Policy administration charges These charges are deducted on a monthly basis to recover
the expenses incurred by the insurer on servicing and maintaining the life insurance policy like paperwork , work force etc.

Page | 4

Unit Linked Insurance Policy

Premium allocation charges These charges are deducted upfront from the premium paid
by the client. These charges account for the initial expenses incurred by the company in issuing the policy- eg. Cost of underwriting, medicals & expenses related to distributor fees. After these charges are deducted the money gets invested in the chosen fund.

Mortality charges Mortality expenses are charged by life insurance companies for providing
a life cover to the individual. The expenses vary with the age and either the sum assured or the sum-at-risk which is the difference between sum assured and fund value of the insurance policy of an individual. Mortality charges are deducted on a monthly basis.

Fund management charges A portion of the ULIP premium, depending on the fund
chosen, is invested either in equities, bonds, g-secs or money market instruments. Sometimes it is a combination of these. Managing these investments incurs a fund management charge (FMC). The FMC varies from fund to fund even within the same insurance company depending on the underlying assets in the fund. Usually a fund with higher equity component will have a higher FMC.

Rider CHARGES Insurance companies levy rider charges in case you opt for riders Switching charges Insurance companies charge fee for switching funds. Top Up charges Insurance companies deduct a certain percentage from the top-up amount as
charges. These charges are usually lower than the regular charges that are deducted from the annual premium. Surrender charges Surrender charge may be deducted for premature partial or full encashment of units wherever applicable, as mentioned in the policy conditions. These charges are levied as a percentage of the fund value or as a percentage of the premium. One can gain knowledge about these charges through Sales benefit illustration, brochure and advisor.

TYPES OF ULIP
Depending upon the purport of investment of the populaces, ULIP can be broadly assorted as follows: y y Retirement Wealth

Page | 5

Unit Linked Insurance Policy

y y

Children Education Health

Wealth Creation ULIPs can be further primarily classified as: y Single premium - Regular premium plan y Guarantee plans Non guarantee plans y Life Stage based Non life Stage based Child's education ULIP ensures that ones childs education continues unhampered even if something unfortunate happens to the individual. Under Health ULIPs and Retirement pension ULIP tax benefits are also provided on premium under section 80D and 80CCC respectively in India. On the basis of the nature of return the ULIPs can be classified as: y y Type I ULIP (On death you get: Higher of sum assured OR fund value) Type II ULIP (On death you get : Sum assured PLUS fund value)

RELEVANCE OF THE STUDY


This study offers an acumen of what is the rational of Indian customers when they venture in ULIPs, reasons behind their selection of investment (tax saving, retirement plans etc.), to what extend they want to take risk, what all things they contemplate , what the level of information they have , their frequency of buying and their demographics. This study can contribute in finding what services and amenities are relevant in eyes of Indian consumer and what is not. This study can substantiate as a countless advantage in development of further ULIP by providing valuable input regarding the Indian consumer thinking.

Page | 6

Unit Linked Insurance Policy

PROBLEM STATEMENT
With the growth in last two decades, after the liberalization in India, GDP of India has seen a significant growth and hence, the increase in income level. This increased level has motivated people to search for diverse sources of investment options. ULIP has come up as a good option for investment along with other options like bonds, debentures, mutual funds etc. ULIP has its benefits and drawbacks as any other option of investment considering which people forms perception and take decision of investment. This project aims at identifying perception of ULIPs buyers in India. This project will try to explore the awareness level among cooperate people and tries to test the theoretical parameters for selection among the masses.

RESEARCH OBJECTIVE
In order to find an answer to the research problem following research objective has been identified which will help us in gathering information which in turn will help us getting better insight of the real situation prevailing in mind of Indian customers: y y y y y y y y y y Level of satisfaction with currently available ULIPs. Criteria for selecting a ULIP. Demographic characteristics of ULIP buyers. Analysis of customer sentiments on various services provided by insurance companies for ULIP. Reasons for satisfaction or dissatisfaction. Level of awareness about ULIP. Determining the types of services the customers need. Level of customer knowledge about ULIP charges. Attitude towards charging policies. Likelihood of purchase of plan when and why.

SAMPLING PLAN
Sample Profile: People with age group of 25-35, working in Cooperate world, in India. Sample Size: 150 Survey Method: Online surveys hosted on create survey and Google.

Page | 7

Unit Linked Insurance Policy

RESEARCH METHODOLOGY
Majority of the above mentioned identified objectives can be analysed by using descriptive research methods that through by building up questionnaires and surveys. We propose to do Mail survey and webhosted survey using Google and Create survey to capture a sample of around 150 people from the population defined in the limitation of the study. We propose to use Snowball sampling method to achieve this number. We will also try to capture response of IMT student managers who have work ex and invested ULIP. Following is the outline which describes the research methodology planned by us in order to analyze the identified problem:
y

Research objective To determine Demographic characteristics of ULIP buyers. Research method- For capturing demographic characteristic we can put questions to capture personal information like name, age, occupation, sex, income level, etc. at the end of the questionnaire. Measurement/ scale- For capturing age and income level broader categories can be created (nominal scale), for sex two options can be given (nominal scale) Name can be optional

Research objective- Analysis of customer sentiments on various services provided by insurance companies for ULIP. Research method- Various common services provided by insurance companies can be identified by doing exhaustive secondary data study of various ULIP plans offered in India. Once the services are identified the question can posed to customers to rate the quality of various services in the questionnaire designed for survey. Measurement/ scaleContinuous ratings scale can be used to identify the ranking of the services for various ULIP providers.

Research objective- Reasons for satisfaction or dissatisfaction. Research method- The main reasons for satisfaction and dissatisfaction can be identified by IDIs with customers and insurance agents. Once the major issues are identified then it can be further tested by adding another question to the questionnaire.

Page | 8

Unit Linked Insurance Policy

Measurement/ ScalingPreference ranking (interval scale) y Research objective - Criteria for selecting a ULIP. Research method- Various options for selecting can be gathered through a mixture of IDI and secondary sources which can be further evaluated by adding another question to questionnaire. Measurement/ Scaling- Continuous ratings scale can be implemented to rate each identified parameter in order to suffice our understanding regarding what goes inside the customer mind when he goes for selecting the ULIP.
y

Research objective- Level of satisfaction with currently available ULIPs. Research method- This information can only extracted from the satisfied current/ old ULIP customers. This can be easily captured by augmenting another question in questionnaire. Measurement/ Scaling- Continuous ratings scale can be implemented to identify the satisfaction level of customers.

Research objective- Level of awareness about ULIP. Research method- This can be easily captured by augmenting another question in questionnaire. Measurement/ Scaling- Continuous ratings scale can be implemented to identify the awareness level of customers.

Research objective - Determining types of service customer needed Research method - What services a customer looking for can be figured out again by conducting IDIs and later on putting the recognized option in the questionnaire for further validating those points. Measurement/ Scaling- Preference ranking can be used to find types of services they need.

Research objective - Level of customer knowledge about ULIP charges Research method Information regarding the various charges augment in ULIP can be elicit from the secondary sources and to judge the knowledge of customer question can be added in the questionnaire.

Page | 9

Unit Linked Insurance Policy

Measurement/ Scaling- Preference ranking scale can be proved as a good tool for judging whether they knew about the charges or not and further they can be asked to continuously rank the various charges they know about. y Research objective- Attitude towards charging policies. Research method what is the attitude towards charging policies of ULIP can be known by asking question regarding this, and this can be done by IDI of customers as well as policy sellers. After this we can also know about the attitude of policy sellers by adding questions in questionnaire to be filled by customers to understand it in better way. Measurement/ ScalingContinuous ratings scale can be implemented to identify the satisfaction level of customers by the attitudes of policy sellers. y Research objective- Likelihood of purchase of plan when and why. Research method For generating the options for finding answer to why we can again go for IDIs. We can introduce question regarding timing of new plans purchasing plus one question for getting views of customers on IDI generated and one question for probable investment amount. Measurement/ Scaling- for fetching information on tenure, likely amount and validating reasons Preference ranking (interval scale) as well as continuous rating scale can be implemented.

Page | 10

Unit Linked Insurance Policy

RESULTS
After conducting the research with the questionnaire exhibit1, the data collected as shown in exhibit2 and the analysis as shown in exhibit3 these are the findings: y In our research we mainly included young and middle age professionals, who are working and we found that just 52% are aware about Ulip Now people mainly prefer ULIP for saving, then bank then Post-Office and after that prefer P.P.F. and other. The main reason behind the insurance plan or ULIP preference is switching facility or option to choose fund.

High inclination is towards considering Ulip as tax saving and creating wealth investment tool. Also, 8% of people, out of those 52% who are aware about Ulip, consider it as waste of money as it involve high risk

Mainly people prefer low growth safe return as compare to high growth some risky return. Maximum number of people look for tax amenities while choosing a Ulip rather than transparency process

People mainly purchase life insurance policy for investment and then for tax-saving they give 2nd preference to protection. Approximately 20% people do not know what is insurance

y y

We found maximum people like to invest in regular premium plan Non guarantee plan, which is considered to be risky, is found to be second most popular option, after regular premium plan, among the category of Ulip

Page | 11

Unit Linked Insurance Policy

A very mixed opinion we got about frequency of premium paid, maximum percentage of people was found interesting in paying premium monthly, quarterly and once in two year. Maximum people usually opt for either for auto payment option or through authorized agents Around 42% of people were found to be satisfied with the investment in Ulip In research it was found that maximum percentage of people are not satisfied with the awareness programs the management conduct. Maximum people suggested that management should introduce Flexibility in deciding fund allocation to equity and debt. Second service, which people like to see after flexibility in future, which got maximum votes, is E-mobile payment option. Around 40% of people invest money in Ulip in the range of 45,000 to 1 lakh

y y

Page | 12

Unit Linked Insurance Policy

LIMITATION OF THE STUDY


y y y y y Sample size taken is small and may not be sufficient to predict the result with 100% accuracy. The result is based on primary and secondary data that has its own limitation Reluctance and lack of awareness of respondents to disclose data reduced the accuracy Few respondents could have been biased in their opinion The study only covers Nagpur area that may not be applicable to other areas

Page | 13

Unit Linked Insurance Policy

Recommendations
1. Emphasis on advertisement: Companies should emphasis on insurance plan advertisement, because at present Companies main focus on conventional product advertisement. 2. Increase in commission: Companies should also change the commission structure of F.C., because in initial year commission is very high as compare to remaining year. So F.C. does not focus on remaining year and many policies lapsed. 3. Making more accessible: Here I mean that as 80% of the population of India is rural therefore institutions must have their branches in important towns so it not only this will increase the awareness among people more over it will help the institutions to acquire local market and cater to their needs effectively. 4. There should be a product with similar features and low initial premium: A product like Life Time super is suitable for all but the initial premium which cannot be less than 20000 Rs. is on the higher side, therefore the Companies should derive a product with similar features but with low initial premium so that it is affordable to normal service class. 5. Administration charges should be low as in comparison with mutual funds, national saving certificate (N.S.C), etc.: The Companies should lessen down the administration charges so that this product can have an edge over other investment modules like N.S.C, P.P.F etc. 6. Market surveys should be conducted regularly so that to know about customer demands and changing needs: The Companies should know about the customers changing needs and demands by conducting market surveys which are helpful in improving a product which suits the customers requirements. 7. There should be Training batches on weekends: It is advised that the institution should have training batches for the already serving class on weekends, so that the willing candidates can opt it as a part time business opportunity.

Page | 14

Unit Linked Insurance Policy

Conclusion
In India, insurance is generally considered as a tax-saving device instead of its other implied long-term financial benefits. Indian people are prone to investing in properties and gold followed by banks deposits. They selectively invest in shares also but the percentage is very small4.5%. Even to this day, Life insurance market has become more vibrant. Smashing all doubts over the decision to liberalize the industry, the overwhelming first year performance of the Indian insurance sector is test case of a massive success story of private players entering into the erstwhile state monopoly. The top three insurance companies-ICICI Prudential Life Insurance Company, HDFC Standard Life and Max New York Life- combined managed to sell over two lakh policies in a single year.

Page | 15

Unit Linked Insurance Policy

APPENDIX
Exhibit 1: Questionnaire 1) Have you ever invested in ULIP (please choose one)? a) Yes b) No Note: - If No, please move to Q3. 2) For how many years are you investing in ULIP (please choose one) a) b) c) d) e) Doesnt invest anymore, invested in past. Investing for last 5 years. Investing for last 10 years. Investing for last 15 years. Investing for more than 15 years.

3) What is your perception regarding the ULIP (choose which ever option(s) applies) a) b) c) d) ULIPs are waste of money, too risky for investment. ULIPs are for good option for Tax saving purpose. ULIPs are good option for Health insurance. ULIPs are safe and good option for wealth management.

4) Please tick the purpose with which you might/you have selected ULIP as investment option (multiple options can be selected). a) b) c) d) e) Tax saving Purpose Health insurance Purpose Retirement Planning Purpose Wealth growth Purpose Children Education

5) Which of these factors you have/ might consider while choosing the ULIP as investment option? (multiple options can be selected) a) Transparency of processes. b) Liquidity of funds. c) Flexibility of fund switching.

Page | 16

Unit Linked Insurance Policy

d) e) f) g) h) i) j) k) l)

Tax benefits from investment. Low risk in comparison to mutual fund. Returned earned. Performance of past schemes. Rating of ULIP by agencies. Recommendations of friends and relatives. Company brand value. Recommendation of agents. Others _______________________________________________________________

6) Please rate the knowledge level with respect to ULIP services provided by Insurance companies in India. Very Low-----------------------------------------------------------------------------------Very High 00 01 02 03 04 05 06 07 08 09 10 7) Please mark the what types of ULIPs you are aware of (multiple options can be selected) a) b) c) d) e) f) g) h) Type I Type II Single premium Regular premium plan Guarantee plans Non guarantee plans Life Stage based Non-life Stage based

8) Please tick against the type of charges charged by companies associated with the ULIP that you are aware of (multiple options can be selected) a) b) c) d) e) f) g) h) Policy administration charges Premium allocation charges Mortality charges Fund management charges Rider charges Switching charges Top Up charges Surrender charges

If Q1 answer is no, please ignore Q9, Q10 , Q11 , Q12 and Q13 and continue with Q14

Page | 17

Unit Linked Insurance Policy

9) What is/are frequency of premium payment you prefer for currently available ULIP which suits you? (multiple options can be selected) a) b) c) d) e) f) g) h) One time Monthly Quarterly Half yearly Yearly Once in 2 year Once in 3 year More than 3 year

10) Which mode of payment would you prefer? (multiple options can be selected) a) b) c) d) e) f) g) h) i) Insurance offices. Credit card. Net banking. Cheques deposits. Office collection. Banks. Auto pay facility. Authorized agents. Authorized internet sites.

11) Please rate your satisfaction level with the current ULIP Very dissatisfied-----------------------------------------------------------------------Very satisfied 00 01 02 03 04 05 06 07 08 09 10 12) Please rate your satisfaction level with the ULIP plans based on following services provided by the insurance companies.(alerts and updates are through SMS, email and phone calls) Very dissatisfa ctory dissatisf actory Neither Satisfact satisfacto ory ry nor dissatisfa ctory Very satisfact ory

Flexibility of fund switching Providing fund switching alerts Portfolio management

Page | 18

Unit Linked Insurance Policy

Flexibility in modes of premium payment Providing premium payment alerts Customer service at insurance offices Customer call center services Fund value updates

13) What are the factors you consider for ULIP to be to be satisfactory. (multiple options can be selected) a) b) c) d) e) f) Rate of return. Flexibility of fund switching. Proper guidance for management of funds. Various modes for payments of premium. Customer service. Transparency in various processes.

14) Which of the following services would you like to see in future ULIPs? (multiple options

can be selected) a) b) c) d) e) f) g) Flexible premium amount payment option. E-mobile payment option. Daily funds value alerts. Flexibility in deciding fund allocation to equity and debt. Allow more number of fund switching. 24x7 customer support. 15 days premium option.

15) Please mark the probable time period in future when you would like to go for the ULIP as investment option (please choose one, if already invested, ignore). a) b) c) d) e) f) Not decided. Within 1 month. 1 - 6 months. 6 - 12 months. 12 - 18 months. More than 18 months.

Page | 19

Unit Linked Insurance Policy

g) Wont invest in future. If (a) or (g) is chosen, Please ignore Q16 and Q17, proceed with Q18. 16) Please mark the tenure (in years) for which you would like to invest in ULIPs. a) b) c) d) e) f) 3 3-6 6 - 9. 9 - 12 12 - 15 15 20

17) Please mark the probable amount you would like to invest in ULIP in coming future (all figures are in INR and annually) (Please choose one) a) b) c) d) e) f) 20,000 20,000-50,000 50,000-100,000 100,000-200,000 200,000-500,000 More than 500,000

Please let us know a little more about you. 18) Your age group (please choose one) a) b) c) d) e) f) g) h) Less than 20 years 21-25 26-30 30-35 36-40 41-45 45-50 Over 51

19) Your monthly household income (rupees/month) (please choose one) a) Less than 10,000 b) 10,001 to 20,000 c) 20,001 to 30,000

Page | 20

Unit Linked Insurance Policy

d) e) f) g) h) i) j) k)

30,001 to 40,000 40,001 to 50,000 50,001 to 60,000 60,001 to 70,000 70,001 to 80,000 80,001 to 90,000 90,001 to 100,000 Over 100,000

20) Your Gender (please choose one) a) Male b) Female 21) Your Name (optional) _______________________________________________________________________

Exhibit 2: Data collected Code book: Column Variable Question Label Number Number Q1 1 Have you ever invested in ULIP (please choose one)? Values 1=Yes 2=No 9=Missing Value 1=Doesnt invest anymore, invested in past. 2=Investing for last 5 years 3=Investing for last 10 years 4=Investing for last 15 years 5=Investing for more than 15 years

Q2

For how many years are you investing in ULIP(please choose one)

Page | 21

Unit Linked Insurance Policy

Q3

What is your perception regarding the ULIP (choose which ever option(s) applies)

9=Missing Value 1=ULIPs are waste of money, too risky for investment 2=ULIPs are for good option for Tax saving purpose 3=ULIPs are good option for Health insurance 4=ULIPs are safe and good option for wealth management 5=Both (b) and (c) 6=Both (b) and (d) 7=Both (c) and (d) 8=Options (b), (c) and(d) 10=Missing Value

Q4

4) Please tick the purpose with which you might/you have selected ULIP as investment option (multiple options can be selected). 4 Tax saving Purpose 1=Yes 2=No 9=Missing Value 1=Yes 2=No 9=Missing Value 1=Yes 2=No 9=Missing Value 1=Yes 2=No 9=Missing Value 1=Yes 2=No 9=Missing Value

Health insurance Purpose

Retirement Planning Purpose

Wealth growth Purpose

Children Education

Page | 22

Unit Linked Insurance Policy

Q5

5) Which of these factors you have/ might consider while choosing the ULIP as investment option? (multiple options can be selected) 9 Transparency of processes 1=Yes 2=No 9=Missing Value 1=Yes 2=No 9=Missing Value 1=Yes 2=No 9=Missing Value 1=Yes 2=No 9=Missing Value 1=Yes 2=No 9=Missing Value 1=Yes 2=No 9=Missing Value 1=Yes 2=No 9=Missing Value 1=Yes 2=No 9=Missing Value 1=Yes 2=No 9=Missing Value 1=Yes 2=No 9=Missing Value 1=Yes 2=No 9=Missing Value 1=Yes

10

Liquidity of funds

11

Flexibility of fund switching

12

Tax benefits from investment.

13

Low risk in comparison to mutual fund

14

Returned earned

15

Performance of past schemes

16

Rating of ULIP by agencies

17

Recommendations of friends and relatives

18

Company brand value

19

Recommendation of agents

20

Others

Page | 23

Unit Linked Insurance Policy

Q6

21

Please rate the knowledge level with respect to ULIP services provided by Insurance companies in India

2=No 9=Missing Value 0=very low

10=very high 20=Missing Value Q7 Please mark the what types of ULIPs you are aware of (multiple options can be selected) 22 Type I 1=Yes 2=No 9=Missing Value 1=Yes 2=No 9=Missing Value 1=Yes 2=No 9=Missing Value 1=Yes 2=No 9=Missing Value 1=Yes 2=No 9=Missing Value 1=Yes 2=No 9=Missing Value 1=Yes 2=No 9=Missing Value 1=Yes 2=No 9=Missing Value

23

Type II

24

Single premium

25

Regular premium plan

26

Guarantee plans

27

Non guarantee plans

28

Life Stage based

29

Non-life Stage based

Q8

Please tick against the type of charges charged by companies associated with the ULIP that you are aware of (multiple options can be selected) 30 Policy administration charges 1=Yes

Page | 24

Unit Linked Insurance Policy

31

Premium allocation charges

32

Mortality charges

33

Fund management charges

34

Rider charges

35

Switching charges

36

Top Up charges

37

Surrender charges

2=No 9=Missing Value 1=Yes 2=No 9=Missing Value 1=Yes 2=No 9=Missing Value 1=Yes 2=No 9=Missing Value 1=Yes 2=No 9=Missing Value 1=Yes 2=No 9=Missing Value 1=Yes 2=No 9=Missing Value 1=Yes 2=No 9=Missing Value

Q9

What is/are frequency of premium payment you prefer for currently available ULIP which suits you? (multiple options can be selected) 38 One time 1=Yes 0=No 9=Missing Value 1=Yes 2=No 9=Missing Value 1=Yes 2=No 9=Missing Value 1=Yes 2=No 9=Missing Value

39

Monthly

40

Quarterly

41

Half yearly

Page | 25

Unit Linked Insurance Policy

42

Yearly

43

Once in 2 year

44

Once in 3 year

45

More than 3 year

1=Yes 2=No 9=Missing Value 1=Yes 2=No 9=Missing Value 1=Yes 2=No 9=Missing Value 1=Yes 2=No 9=Missing Value

Q10

10) Which mode of payment would you prefer? (multiple options can be selected) 46 Insurance offices 1=Yes 2=No 9=Missing Value 1=Yes 2=No 9=Missing Value 1=Yes 2=No 9=Missing Value 1=Yes 2=No 9=Missing Value 1=Yes 2=No 9=Missing Value 1=Yes 2=No 9=Missing Value 1=Yes 2=No 9=Missing Value 1=Yes 2=No 9=Missing Value

47

Credit card

48

Net banking

49

Cheques deposits

50

Office collection

51

Banks.

52

Auto pay facility

53

Authorized agents

Page | 26

Unit Linked Insurance Policy

54

Authorized internet sites.

Q11

55

Please rate your satisfaction level with the current ULIP

1=Yes 2=No 9=Missing Value 0=Very dissatisfied 10=Very satisfied 20=Missing Value

Q12

Please rate your satisfaction level with the ULIP plans based on following services provided by the insurance companies.(alerts and updates are through SMS, email and phone calls) 56 Flexibility of fund switching 1=very dissatisfactory 5=very satisfactory 9=missing value 1=very dissatisfactory 5=very satisfactory 9=missing value 1=very dissatisfactory 5=very satisfactory 9=missing value 1=very dissatisfactory 5=very satisfactory 9=missing value 1=very dissatisfactory 5=very satisfactory 9=missing value 1=very dissatisfactory 5=very satisfactory 9=missing value 1=very dissatisfactory 5=very satisfactory

Q12a

Q12b

57

Providing fund switching alerts

Q12c

58

Portfolio management

Q12d

59

Flexibility in modes of premium payment

Q12e

60

Providing premium payment alerts

Q12f

61

Customer service at insurance offices

Q12g

62

Customer call center services

Page | 27

Unit Linked Insurance Policy

Q12h

63

Fund value updates

9=missing value 1=very dissatisfactory 5=very satisfactory 9=missing value

Q13

What are the factors you consider for ULIP to be to be satisfactory. (multiple options can be selected) 64 Rate of return. 1=Yes 2=No 9=missing value 1=Yes 2=No 9=missing value 1=Yes 2=No 9=missing value 1=Yes 2=No 9=missing value 1=Yes 2=No 9=missing value 1=Yes 2=No 9=missing value

65

Flexibility of fund switching.

66

Proper guidance for management of funds.

67

Various modes for payments of premium.

68

Customer service.

69

Transparency in various processes.

Q14

70

Which of the following services would you like to see in future ULIPs? (multiple options can be selected) Flexible premium amount payment option.

1=Yes 2=No 9=missing value 1=Yes 2=No 9=missing value 1=Yes

71

E-mobile payment option.

72

Daily funds value alerts.

Page | 28

Unit Linked Insurance Policy

73

74

75

76

Q15

77

Q16

78

2=No 9=missing value Flexibility in deciding fund allocation to equity and 1=Yes debt. 2=No 9=missing value Allow more number of fund switching. 1=Yes 2=No 9=missing value 24x7 customer support. 1=Yes 2=No 9=missing value 15 days premium option. 1=Yes 2=No 9=missing value Please mark the probable time period in future 1=Not decided. when you would like to go for the ULIP as investment option. 2=Within 1 month. 3=1 - 6 months. 4=6 - 12 months. 5=12 - 18 months. 6=More than 18 months. 7=Wont invest in future. 9=missing value Please mark the tenure (in years) for which you 1=3 would like to invest in ULIPs. 2=3 to 6 3=6 to 9 4=9 to 12 5=12 to 15 6=15 to 20 9= Missing Value

Page | 29

Unit Linked Insurance Policy

Q17

79

Please mark the probable amount you would like to investment in ULIP in coming future (all figures are in INR and annually)

1=Less than 20,000

Q18

80

Your age group

Q19

81

Your monthly household income (rupees/month)

2=20,000-50,000 3=50,000-100,000 4=100,000-200,000 5=200,000-500,000 6=More than 500,000 9=Missing Value 1=Less than 20 years 2=21-25 3=26-30 4=30-35 5=36-40 6=41-45 7=45-50 8=Over 51 9=Missing Value 1=Less than 10,000 2=10,001 to 20,000 3=20,001 to 30,000 4=30,001 to 40,000 5=40,001 to 50,000 6=50,001 to 60,000 7=60,001 to 70,000 8=70,001 to 80,000 9=80,001 to 90,000 10=90,001 to 100,000 11=Over 100,000 13=Missing Value 1=Male 2=Female 9=Missing Value

Q20

82

Your Gender

Page | 30

Unit Linked Insurance Policy

Data :
Question Number Variable Number COUNT 1's 1's 1's 78 21 11 2's 2's 2's 72 21 27 9's 10's 72 13 3's 3's 15 6 4's 4's 6 12 5's 5's 15 18 6's 33 7's 0 8's 30 1's 123 2's 18 9's 9 1's 105 2's 39 9's 6 1's 30 2's 105 9's 15 1's 1's 1's 1's 1's 21 75 81 63 84 2's 2's 2's 2's 2's 111 72 69 87 63 9's 9's 9's 9's 9's 18 3 0 0 3 1's 1's 1's 1's 1's 1's 1's 1's 123 84 87 72 63 69 72 57 2's 2's 2's 2's 2's 2's 2's 2's 27 66 63 72 81 78 69 90 9's 9's 9's 9's 9's 9's 9's 9's 0 0 0 6 6 3 9 3 1's 6 2's 3 9's 141
1 1 2 2 3 3 4 5 4 6 7 8 9 10 11 12 13 5 14 15 16 17 18 19 20

Page | 31

Unit Linked Insurance Policy

10

21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 1's 1's 1's 1's 1's 1's 1's 1's 1's 1's 1's 1's 1's 1's 1's 1's 1's 1's 1's 1's 1's 1's 1's 1's 1's 1's 1's 1's 1's 1's 1's 1's 1's 1's 18 81 78 93 111 72 87 66 66 129 123 111 120 99 90 87 96 36 48 45 33 15 48 39 36 45 39 30 21 42 33 66 69 51 2's 2's 2's 2's 2's 2's 2's 2's 2's 2's 2's 2's 2's 2's 2's 2's 2's 2's 2's 2's 2's 2's 2's 2's 2's 2's 2's 2's 2's 2's 2's 2's 2's 2's 0 69 72 57 39 75 60 81 81 9 15 36 24 45 36 36 24 45 33 36 45 66 27 36 39 36 42 51 60 33 42 15 9 24 9's 9's 9's 9's 9's 9's 9's 9's 9's 9's 9's 9's 9's 9's 9's 9's 9's 9's 9's 9's 9's 9's 9's 9's 9's 9's 9's 9's 9's 9's 9's 9's 9's 9's 0 0 0 0 0 3 3 3 3 12 12 3 6 6 24 27 30 69 69 69 72 69 75 75 75 69 69 69 69 75 75 69 72 75 3's 15 4's 12 5's 12 6's 27 7's 60 8's 0 10's 3 20's 3

Page | 32

Unit Linked Insurance Policy

11 55 56 57 58

12 59 60 61 62 63 64 65 66

13 67 68 69 70 71 72

14 73 74 75 76

15 77

16 78

17 79

18 80

19 81

20 82

1's 0 2's 0 9's 6 3's 21 4's 24 5's 6 6's 0 7's 18 8's 6 10's 0 20's 69

1's 1's 3 0 2's 2's 18 0 9's 9's 69 69 3's 3's 24 36 4's 4's 36 45 5's 5's 0 0

1's 1's 1's 0 0 0 2's 2's 2's 24 0 0 9's 9's 9's 72 69 75 3's 3's 3's 36 30 24 4's 4's 4's 18 33 48 5's 5's 5's 0 18 3

1's 1's 0 0 2's 2's 6 0 9's 9's 72 78 3's 3's 33 27 4's 4's 39 45 5's 5's 0 0

1's 1's 1's 1's 1's 1's 1's 1's 1's 1's 1's 1's 1's 1's 1's 1's 1's 1's 3 36 27 57 0 9 45 63 93 72 117 69 117 94 33 12 15 0 2's 2's 2's 2's 2's 2's 2's 2's 2's 2's 2's 2's 2's 2's 2's 2's 2's 2's 3 45 54 24 78 66 27 81 51 69 27 72 21 44 9 12 18 90 9's 9's 9's 9's 9's 9's 9's 9's 9's 9's 9's 9's 9's 9's 9's 9's 9's 9's 72 69 69 69 72 75 78 6 6 9 6 9 12 12 0 51 51 0 3's 3's 3's 3's 3's 36 0 51 60 15 4's 4's 4's 4's 4's 33 15 0 0 24 5's 5's 5's 5's 5's 3 27 9 0 15 6's 6's 6's 6's 36 15 6 6 7's 7's 30 0 8's 0

1's 1's 36 99 2's 2's 6 51 9's 9's 3 0 3's 24 4's 6 5's 9 6's 0 7's 42 8's 6 10's 0 11's 18 13's 0

Page | 33

Unit Linked Insurance Policy

Exhibit 3: Analysis of data and graphs:

Have you ever invested in ULIP?


Q1 Yes Q1 No

48% 52%

Graph 1 : Have you ever invested in ULIP?

For how many years are you investing in ULIP


Doesn t invest anymore, invested in past. 19% 27% 8% last 5 yrs last 10 yrs last 15 yrs 27% more than 15 yrs

19%

Graph 2: For how many years are you investing in ULIP

Page | 34

Unit Linked Insurance Policy

What is your perception regarding the ULIP


8% 22% 20% c) ULIPs are good option for Health insurance 4% 24% 9% 13% d) ULIPs are safe and good option for wealth management Both (b) and (c) a) ULIPs are waste of money, too risky for investment b) ULIPs are for good option for Tax saving purpose

Graph 3: What is your perception regarding the ULIP

purpose with which you might/you have selected ULIP as investment option
160 140 120 100 80 60 40 20 0 Tax saving Health insurance Retirement Planning Wealth growth Children Education No response No Yes

Graph 4: purpose with which you might/you have selected ULIP as investment option

Page | 35

Unit Linked Insurance Policy

Factors you have/ might consider while choosing the ULIP as investment option
160 140 120 100 80 60 40 20 0

No response No Yes

Graph 5: Factors you have/ might consider while choosing the ULIP as investment option

knowledge level with respect to ULIP services provided by Insurance companies in India
70 60 50 40 30 20 10 0

No. of Responses

Graph 6: knowledge level with respect to ULIP services provided by Insurance companies in India

Page | 36

Unit Linked Insurance Policy

Types of ULIPs respondents are aware of


160 140 120 100 80 60 40 20 0 Type I Type II Single Regular Guarantee Non Life Stage Non-life premium premium plans guarantee based Stage plan plans based Missing Value No Yes

Graph 7: Types of ULIPs respondents are aware of

Type of charges associated with the ULIP that respondents are aware of
160 140 120 100 80 60 40 20 0

Missing Value No Yes

Graph 8: Type of charges associated with the ULIP that respondents are aware of.

Page | 37

Unit Linked Insurance Policy

Frequency of premium payment you prefer


160 140 120 100 80 60 40 20 0 One time Monthly Quarterly Half yearly Yearly Once in 2 Once in 3 year year More than 3 year Missing Value No Yes

Graph 9: Frequency of premium payment you prefer

Mode of payment respondents prefer


160 140 120 100 80 60 40 20 0

Missing Value No Yes

Graph 10: Mode of payment respondents prefer

Page | 38

Unit Linked Insurance Policy

Satisfaction level with the current ULIP


80 70 60

Responces

50 40 30 20 10 0 1 2 3 4 5 6 7 8 9 10 Missing Value

Rating
Graph 11: Satisfaction level with the current ULIP

Satisfaction level with the ULIP plans based on following services provided by the insurance companies.
160 140 120 100 80 60 40 20 0

No response 5 4 3 2 1

Graph 12: Satisfaction level with ULIP plans based on services provided by insurance companies.

Page | 39

Unit Linked Insurance Policy

Factors you consider for ULIP to be to be satisfactory


160 140 120 100 80 60 40 20 0 Rate of return. Flexibility of Proper Various fund guidance for modes for switching. management payments of of funds. premium. Customer service. Transparency in various processes. Missing Value No Yes

Graph 13: Factors you consider for ULIP to be to be satisfactory

Which of the following services would you like to see in future ULIPs?
160 140 120 100 80 60 40 20 0 Flexible premium amount payment option. E-mobile Daily funds Flexibility in Allow more 24x7 payment value alerts. deciding number of customer option. fund fund support. allocation to switching. equity and debt. 15 days premium option.

No response No Yes

Graph 14: Which of the following services would you like to see in future ULIPs?

Page | 40

Unit Linked Insurance Policy

Probable time period in future when you would like to go for the ULIP as investment option.
40 35 30 25 20 15 10 5 0 Not Within 1 1-6 6 - 12 12 - 18 More than wont t No decided. month. months. months. months. 18 invest in response months. future.

No. of responses

Graph 15: Probable time period in future when you would like to go for the ULIP as investment option.

Tenure (in years) for which you would like to invest in ULIPs.
60 50 40 30 20 10 0 3 3 to 6 6 to 9 4=9 to 12 12 to 15 15 to 20 No response No. of responses

Graph 16: Tenure (in years) for which you would like to invest in ULIPs.

Page | 41

Unit Linked Insurance Policy

Please mark the probable amount you would like to investment in ULIP in coming future (all figures are in INR and annually)
10% 34% 12% Less than 20,000 20,000-50,000 50,000-100,000 100,000-200,000 200,000-500,000 More than 500,000 4% 0% 40% 0% Missing Value

Graph 17: Please mark the probable amount you would like to investment in ULIP in coming future (all figures are in INR and annually)

Age Group of respondents (in yrs)


4% 10% 21-25 26-30 16% 60% 10% 30-35 36-40 41-45

Graph 18: Age Group of respondents (in yrs)

Page | 42

Unit Linked Insurance Policy

Monthly income of respondents ( in Rs)


2% 3% 5% Less than 10,000 7% 3% 24% 10,001 to 20,000 20,001 to 30,000 30,001 to 40,000 40,001 to 50,000 50,001 to 60,000 28% 16% 6% 1% 5% 60,001 to 70,000 70,001 to 80,000 80,001 to 90,000 90,001 to 100,000

Graph 19: Monthly income of respondents ( in Rs)

Gender of respondents

Female 34% Male 66%

Graph 20: Gender of respondents

Page | 43