A PROJECT REPORT ON STUDY ON RECRUITMENT PROCESS OF AGENT/ADVISORS AND A COMPARITIVE STUDY OF TWO PRODUCTS IN LIFE INSURANCE INDUSTRY AT

Submitted to Jiwaji University Gwalior

For the partial fulfillment of the award of Master of Business Administration (2009-2011)

Submitted by Ms. Rinky Dewani MBA-III SEM

MAHARANA PRATAP COLLEGE OF TECHNOLOGY GWALIOR(M.P)

DECLARATION

I Rinky Dewani, student of Master in Business Administration of Maharana Pratap college of Technology Gwalior here by declare that all the information, facts & figures furnished in this project report is based on my intensive learning conducted at Max New York Life Insurance Gwalior are the first hand and original in nature.

Date: Place:

Rinky Dewani MBA III SEM

CERTIFICATE

This is to certify that Ms Rinky Dewani student of MBA Programme has completed her summer training of six weeks (from 15th June to 31st July 2010) at Max New York Life Insurance Gwalior and prepared this report on the topic Recruitment of agent/ advisors and a Comparative Study of Two Products under my direct supervision and guidance.

Date: Place:

Prof. Mansi Garg (Faculty Guide)

ACKNOWLEDGEMENT

It gives me immense pleasure to express my deep sense of gratitude to Miss.Namrata Gupta, Head of the Department, Maharana Pratap College of Technology Gwalior (M.P.) for his valuable guidance and consistent supervision through out the course. I am also thankful to Mr. Manish Sharma,sales manager, my Company Guide of Max New York Life Insurance Company, Gwalior, for his valuable guidance for preparing the Final Report and also for providing the necessary facilities. I am extremely thankful to Ms. Mansi Garg, MAHARANA PRATAP COLLEGE OF TECHNOLOGY, GWALIOR for his timely guidance and support through out the work, in the course of carrying out the project work. Finally I am indebted to our other faculty members, my friends and my parents who gave their full-fledged co-operation for successful completion of my project. It was indeed a great learning experience for me.

Date: Place:

Rinky Dewani (MBA III Sem)

TABLE OF CONTENTS

S.NO 1 2 3 4 5

TOPIC INTRODUCTION OF THE COMPANY INTRODUCTION OF INSURANCE PROCESS OF RECRUITMENT OF AGENT/ADVISORS COMPARITIVE STUDY OF TWO PRODUCTS RESULTS REFERENCE ANNEXURE .

PAGE NO 6-9 10 - 14 15 - 29 30 - 35 36 37 39

INTRODUCTION

ABOUT MAX NEW YORK LIFE (COMPANY PROFILE) Max New York Life Insurance Company Ltd. is a joint venture between New York Life and Max India Limited.
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 New York Life is a Fortune 100 company and Max India Limited is one of India's leading multi-business corporations. The company has positioned itself on the quality platform. It has developed a strong corporate governance model based on the core values of excellence, honesty, knowledge, caring, integrity and teamwork. The strategy is to establish itself as a trusted life insurance specialist through a quality approach to business. In line with its values of financial responsibility, Max New York Life has adopted prudent financial practices to ensure safety of policyholder's funds. The Company's paid up capital is Rs. 657 crore, which is more than the norm laid down by IRDA. Max New York Life has identified individual agents as its primary channel of distribution. The Company places a lot of emphasis on its selection process, which comprises four stages Screening, Psychometric test, Career seminar Final interview The agent advisors are trained in-house to ensure optimal control on quality of training. Max New York Life invests significantly in its training programme. Each agent is trained for 152 hours as opposed to the mandatory 100 hours stipulated by the IRDA before beginning to sell in the marketplace. Training is a continuous process for agents at Max New York Life and ensures development of skills and knowledge through a structured programme spread over 500 hours in two years. This focus on continuous quality training has resulted in the company having amongst the highest agent pass rate in IRDA examinations and the agents have the highest productivity among private life insurers. It now has 26 life insurance products and 8 riders that can be customized to have more than 400 products.

 201 agent advisors have qualified for the Million Dollar Round Table (MDRT) membership in 2005. MDRT is an exclusive congregation of the worlds top selling insurance agents and is internationally recognized as the standard of excellence in the life insurance business.

Changing face of Indian insurance industry: Ind ian life-insurance market is the target market of all the companies who either want to extend or diversify their business. To tap the Indian market there has been tie-ups between the major Indian companies with other International insurance companies to start up their business. The government of India has set up rules that no foreign insurance company can set up their business individually here and they have to tie up with an Indian company and this foreign insurance company can have an investment of only 24% of the total start-up investment. Indian insurance industry can be featured by: Low market penetration Ever growing middle class component in population. Growth of customers interest with an increasing demand for better insurance products. Application of information technology for business. Rebate from government in the form of tax incentives to be insured.

Today, the Indian life insurance industry has a dozen private players, each of which are making strides in raising awareness levels, introducing innovative products and increasing the penetration of life insurance in the vastly underinsured country. Several of private insurers have introduced attractive products to meet the needs of their target customers and in line with their business objectives. The success of their effort is that they have captured over 28% of premium income in five years.

The biggest beneficiary of the competition among life insurers has been the customer. A wide range of products, customer focused service and professional advice has become the mainstay of the industry, and the Indian customers forms the pivot of each companys strategy. Penetration of life insurance is beginning to cut across socio-economic classes and attract people who have never purchased insurance before.

1841: Nautilus Insurance Company is chartered to sell fire and 1849: A product shift is marked by name change to New-York 1868: The Company opens its first international office. 1892: A branch office system is implemented by company 1905: New York state investigation of insurance industry 1929: The company moves to Madison Avenue corporate 1951: The first group insurance policies are issued. 1969: A separate entity is created to manage growing 1984: The Company enters the financial services market. 1987: The Company purchases one of the largest healthcare 1996: The Company sells its healthcare operations. 2000: The Company brings all asset management businesses under

VISION: To become the most admired life Insurance Company in India.

MISSION: To become one of the top quartile life Insurance companies in India.
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 Be a national player.

Be the brand of the first Choice. Be the Employer of the Choice. Become principal of choice for agents.

MEMBERS OF MAX NEW YORK

Life Insurance

New York Life Insurance, USA

Health Insurance

Bupa Ltd., UK

PERSONNEL POLICY

RECRUITMENT PROCESS:

Recruitment process specifies the objectives of recruit and provides a framework for the implementation of the recruitment programmed. The main objective of Recruitment process is to find qualified executives.

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Recruitment process of max new York involves the employers commitment to such general principles as To find and employ the best qualified person for each job To retain the most premising of those hired To offer lifetime working career through premising opportunities To offer facilities and opportunities for personal growth on the job. TRAINING & DEVELOPMENT: Training is the process of increasing the knowledge and skills for during a particular job. Max new York provides better training to their trainees. Here, there is no restriction for the trainees. Trainees can also work as executive of max new york. Branch Manager of max also provides knowledge and skills for the development of trainees. There are the following programmes for training and development at max new York.

To provides the identification about company and working process. To provides separate lecture on every Saturday in training period. To give opportunity for each trainee for asking question. To solve the problem of trainees client by anybody.

COMPETITORS

Bajaj Allianz Life Insurance Co. Limited Birla Sun Life Insurance Co. Ltd 11

 HDFC Standard Life Insurance Co. Ltd

ICICI Prudential Life Insurance Co. Ltd ING Vysya Life Insurance Co. Ltd. Life Insurance Corporation of India Max New York Life Insurance Co. Ltd Met Life India Insurance Co. Pvt. Ltd. Kotak Mahindra Old Mutual Life Insurance Ltd. SBI Life Insurance Co. Ltd. Tata AIG Life Insurance Co. Ltd.

STRENGTHS AND WEAKNESS OF THE ORGANISATION STRENGTHS Strong corporate governance model Quality product Adaptability to change Strong brand name Large networks Leading company in insurance sector Diversification of funds Well efficient management

WEAKNESS Less awareness about all of life insurance in market Low advertising Focus only on urban areas

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SUGGESTIONS TO THE COMPANY

MNYL is doing well in rib segment but they are based in only one brand MNYL,so

MNYL should try to aware to increase of other brands. Price Quality Relationship needs to improve in premium rib and lug Insurance segment Keep eye to reduce the cost of manufacturing, so price will further reduce and competition will increase. The company should look after its trade erosion/braking problem.

SPECIAL POINTS OBSERVED BY ME:

Before this summer training project my knowledge about the insurance industry was

quite bleak. This internship in MNYL has immensely helped me in categorizing the different financial products.

Another of my crucial learning has been in the area of communication with the outside world. Finding a possible prospect and then giving them information about the opportunities available was a really tough challenge.

Majority of the population in Chennai have a negative perception about the insurance industry. Giving them appropriate information about the opportunity to earn in this field was a challenging task.

Along with the information on the job, the staff of MNYL also gave many inputs that

would definitely help in the management field.

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THE NAME OF CEO/MD/DEPARMENT HEAD

CEO & MD: GARY BENEET HR HEAD:- MANISH SHARMA CONTACT NO:-07379079531 EMAIL ID-

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SPECIAL PROJECT UNDERTAKEN

INTRODUCTION The main objective of this project is To Recruit Quality Agent/advisors (AA) for the Company for providing life Insurance solutions to the customers. Agent/Advisor plays a vital role in the growth of company with respect of companys earnings as well as they create value for the organization after achieving some milestones. Agent/Advisors are integral part of the team and sales manager assigned to them help them to groom them in terms of personality development, selling skills and handling objections of customers. Benefits of Becoming Agent/Advisor for MNYL:
Rewarding career - Help others to realize their financial goals. Changing life is more

rewarding and satisfying.

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 A Successful Team - Countries finest Agent Advisor Team. Maximum MDRT

insurance Agents.
Attractive Remuneration - Best Remuneration System in the industry. Independence - Be Your Entrepreneur. World-class Training - In House Training session from Professional Trainers. Commitment to Career Agency system - Commitment to grow your career from AA

to top Management.
Infrastructure Support - Easy access to IT tools and use of Technology in order to

support stakeholders.
Full Range of Products & Services - Customized product and flexible option for

choosing product.
Sales & Marketing Support - The Sales, Promotions & Marketing collaterals which

provide you to take your business to new heights.

Financial Strength - Higher Paid up Capital of 587 Crores more than the IRDA norms.

Companys Expectation from Agent/Advisors: Regular input activity. Follow the sales process. Achieve sales targets.
Attend training program.

Participate in weekly reviews. Follow the MNYL ethics and business standards policy. JOB DESCRIPTION

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I was placed in the recruitment section of channel development at MNYL. I had to recruit agent advisors for the organization by following the steps involved in the channel development process. I was paid a commission for every agent advisor who undergoes the screening process and clears the agent advisor examination. It was a pleasant job as it had no work pressure and extremely flexible working hours. I had a great sales manger to assist me all throughout. Following are the steps undergone in my job: Making a list of known capable people and giving them a call over phone and fixing an appointment with a senior officer. Taking further contacts from the call-list in the form of references. Identification of potential candidates to be contracted as agent advisors. Calling upon the potential candidates and explaining the business opportunity to them. Enable the candidates to talk to a higher authority and undergo initial screening. Get necessary forms filled by the candidates and collect supplementary documents like education proof, identity proof, date of birth proof etc.

ELIGIBILTY MODEL From this eligibility model company judge prospective person. The company follows unique eligibility criteria for Agent Advisor selection by which company is able is to always justify its mission. The basic objective of having an eligibility model for recruitment is to have good retention and greater effectiveness in the delivery of service. Four criterias for Agent Advisor selection 1. 25 plus years of age: This age shows attainment of maturity and responsibility. People are more consistent in this age.
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2. Married: Married people have more eager to earn money. Family pressures increase responsibility and secondly customers are convinced more by the stability of a married Agent Advisor. 3. Staying in the same city for more than 5 years: Person who stays more than 5 year has huge natural market which helps him to get more business in short period. 4. Graduate: Graduate people have basic skills like communication skills, numerical ability, I.P relation, convincing abilities etc. so it is easy to teach them further.

Other criteria for Agent Advisor selection:

1. Financial stability: MNYL is focuses on classes and not on masses thus they select strong agent advisors. 2. To have a rich and active social circle: It helps to get higher case rate and case size. Also the chances of policy lapsing can be less and renewals can be more.

3. Greed for money: Firm selects advisors who understand the language of commission. Because people who want fix amount as their earnings are not suitable for this business. 4. Independent: MNYL select people who want to be entrepreneur. Housewives or brokers who want flexible hours for work are prospective person for this business. 5. Persuasion: He should be persuasive in nature because the Agent Advisor needs to follow up on regular basis with prospective and new clients without being a nuisance value.
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6. Excellent interpersonal skills: Because developing and maintaining good relations can get policies. Secondly since most of the insurance companies provide a plethora of similar products, sales depend on the convincing ability of the Agent Advisor and the rapport the Agent Advisor is bale to build. Also results in C of Is.

Work Profile This is an entrepreneurial opportunity with flexible working hours and the potential to earn unlimited income without any capital investment. As an agent with Max New York Life, you are a financial advisor, businessperson and your own boss. The only limit to your growth is your own imagination and drive. The Role:

Identify prospects and conduct need analysis Provide customized solutions for long term financial protection and wealth creation Close sales Deliver the policy Provide after sales service and build references for future sales

BENEFITS A career at Max New York Life has innumerable advantages. With low start up investment you can become a part of a world-class organization and make a positive difference to peoples lives. Our agents sell more policies and make more money than agents of any other life insurance company. The financial rewards are in the form of

Commissions on new sales Ongoing renewal commissions Performance linked bonus

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Referral commissions Training reimbursement

STRATEGIES Management team has developed certain strategies in order to expand channel distribution network. These models are followed across the country uniformly and top management feels that these rules are the building block of MNYLs success in India as well as across the world. There are 2 basic principles that are required in order to execute these strategies such as

Prospecting: Identify the right person who fits in the eligibility model. Selection: Select them for further plan of actions.

RULE OF 31 Rule of 31 is associated with the daily activities which are followed to recruit quality advisors. It says that everyday collect at least 3 names of the prospective AA and do 1 screening every day.

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Start Name Gathering in P200

Ways of Name Gathering listing Short There are several ways for gathering names in order to follow rule of 31.
Contacting Natural Market

Personal ObservationIntereste
d? Nominator Call Centre of Influence (CoI) Call Initial Screening NAT

End

Career Seminar & P200

Intereste d?

End

Career interview FCS NOT CLEARED FLOW BASED APPROACH TO RECRUITMENT & SELECTION PROCESS

IC-33 ? CLEARED Contract with MNYL

Reappear

End

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NO

YES

NO

YES

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 NAME GATHERING IN P200 Name gathering in P200 consists of people whom you know from natural market and references you get from their sources. As a management trainee were given a task to gather 200 names. Figure shows the P200 format in which the database is created. Name of the prospective Agent
Name of the prospective Agent

Address of Contact Age Marital Status Qualification No. of years in the City Financial Status Profession Annual Income Natural Market Comments

SHORT LISTING Candidates are shortlisted from the P200 as per the eligibility criteria laid down by the company. Only eligible candidates are considered for the next process. CONTACTING Candidates are called either as nominator, CoI, Prospective Agents and a meeting is fixed with them according to the convenience of both the party. Here script plays very important role in fixing appointment with the prospect.

INITIAL SCREENING

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Initial screening is taken if candidate is found eligible using 4 point model. In initial screening, a sales manager first gives the introduction about the company. Then several questions such as his family background, his natural market, traits for a sales person, and his present and past experiences of his jobs are questioned. Every candidate is required to get at least 3 points in eligibility model the company. The eligibility standards for AA selection are as follows. In case of score less than 3, special zonal head approval is required. FIVE POINT SYSTEM: Age 25 and over Graduate Married 1 point 1 point 1 point

Lived in city more than 5 1 point years NAT score 1 point (if passed)

NAT Numerical Ability test is taken. Passing Score is 50%.

CAREER SEMINAR AND P200 All the prospects are required to attend career seminar at MNYL which provides broader aspects of growth as an Agent Advisor. P200 is a worksheet which is given to each prospect to judge his natural market. The prospects are required to mention at least 100 contacts from their natural market.

CAREER INTERVIEW P200 is evaluated in Career Interview. If candidates market is found worth, he is selected to attend training and Development programme. FCS
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All the selected candidates are required to attend 15 day training session for receiving the license from IRDA to become an Agent Advisor. CONTRACT All the successful candidates having legal license of IRDA are contracted with MNYL. In this firm has its own statistic. That means if we will contact 60 person in a month. Then we can convert 2 people for a batch as a AA.

60

Cold prospects.

20

Initial screening.

16

Test.

08

Seminar.

04

Career Interview.

02

FCS Batch.

ACTIVITY CHART Particulars 1) Initial Screening 2) NAT 3) Career Seminar Status 30 6 8

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4) P200 5) Career Interview 6) FCS 7) Total Recruitment 8) Contracted

8 5 2 1 -

The above activity chart represents the work done by me in accordance with the channel development process. The P200 sheet will be attached with this project where name and contact numbers are stored in format prescribed by the MNYL.

REWARDS AND RECOGNITION

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C e e e o MDR E T Ex. Council Centurion Paul Colgan Trophy Agent of the Year Paid Cases, FYC, Persistency, Rider, Referral and CEIP Leader Career Foundation Club Career Producer Award Career Success Award Hi-Flier Ten-A-Monther Premium Leader

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PRODUCTS OF MNYL

Endowment policies: This type of policy covers risk for a specified period, and at the

end of the maturity sum assured is paid back to policyholder with the bonuses during the term of the policy.
Money back policies: This type of policy is for periodic payments of partial survival

benefits during the term of the policy as long as the policy holder is alive.
Group insurance: This type of insurance offers life insurance protection under group

policies to various groups such as employers-employees, professionals, co-operatives etc it also provides insurance coverage for people in certain approved occupations at the lowest possible premium cost.
Term life insurance policies:

This type of insurance covers risk only during the

selected term period. If the policy holder survives the term, risk cover comes to an end. These types of policies are for those people who are unable to pay larger premium required for endowment and whole life policies. No surrender, loan or paid up values are in such policies.

Whole life insurance policies: This type of policy runs as long as the policyholder is

alive and is covered for the entire life of the policyholder. In this policy the insured amount and the bonus is payable only to nominee on the death of policy holder.

Joint life insurance policies: These policies are similar to endowment policies in

maturity benefits and risk cover, but joint life policies cover two lives simultaneously such as married couples. Sum assured is payable on the first death and again on the death of survival during the term of the policy.
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 Pension plan: a pension plan or annuity is an investment over a certain number of

years but does not provide any life insurance cover. It offers a guaranteed income either for a life or certain period.
Unit linked insurance plan: ULIP is a kind of insurance plan which provides life

cover as well as return on premium paid over a certain period of time. The investment is denoted as units and represented by the value called as net asset value (NAV).

SOME OF THE OTHER PLANS ARE: SAVINGS PLANS: W hole Life Participating 20 Year Endowment (Par) Endowment to Age 60 (Par) Life Gain Plus 20 (Par) Life Gain Plus 25 (Par) Life Pay Money Back Life Gain Endowment Life Partner

RURAL PLANS: Max Suraksha Easy Term Policy

STRATEGIC PRODUCTS PLANS:

1. Bancassurance Super Saver Bond Capital Builder

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2. Additional Distribution Max Mangal Max Vriksha Capital Builder

3. Max Amsure Future Builder Family Money Back Bonus Builder Business Builder Secure Returns builders

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COMPARATIVE STUDY OF TWO PRODUCTS

SHIKSHA PLUS CHILDREN PLAN (MNYL)

YOUNG STAR PRODUCT (HDFC Standard Life Insurance)

INTRODUCTION

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Shiksha plus children plan

A few decades back, it was all about focusing on education and ensuring that the children get the best opportunities for their education. Now it goes beyond that. Its more about having a multi-faceted personality, being an all-rounder and excelling in various fields.

We understand this desire that every parent has for their child. Therefore, our child plan are designed specifically to ensure that your child not only gets the best of education but also can explore and develop his/her hidden talent. Max New York Life Shiksha Plus is a 360 degree child plan that provides for over all development of your child in all the circumstances. Along with addressing the increasing cost of education, the plan also provides an option to secure the future of your second child also once he/she is born.

Eligibility Criteria Criteria Eligibility Life Insured Minimum: 21 years Entry Age Maximum: 55 years Child Minimum: 0 days Maturity Age Policy Term Premium Payment Options Minimum Annual Target Premium Maximum: 18 years Maximum age for Life Insured: 70 years 10 years (only available as 5 pay) or 15 to 25 years, pick a term, Regular Pay 5 Pay or Regular pay Minimum: Rs. 24,000 (for terms 15 through 25 years, pick a term) Minimum: Rs. 50,000 (for 5 pay/10 years variant) Maturity Benefit:
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33

HDFC STANDARD LIFE INSURANCE Plan today to ensure a bright future for your child.Start saving today with HDFC UNIT LINKED YOUNG STAR PLUS II, so that your child is able to lead a life of respect and dignity with a secured financial future. Use HDFC Standard Lifes excellent investment options to maximize your savings and maximize your childs achievements.We will provide security for your child and make those savings on your behalf, in your absence.

FEATURES An outstanding investment opportunity by providing a choice of thoroughly reasearched and selected investments. Valuable protection in case of the insured parents unfortunate demise Flexible benefit combinations and payment options. Flexible additional benefit options such as critical illness cover.

ADVANTAGES In case of unfortunate demise of the parent during the policy term,HDFC Standard Life will: Pay the sum assured you had chosen for your child
Continue the policy and continue the original premiums you had chosen.

At the time of maturity,your child will receive the accumulated value of your funds.

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COMPARISON BETWEEN SHIKSHA PLUS AND YOUNG STAR PRODUCT

These two Products are Unit Link Products. Unit Link Insurance Policy (ULIP) covers the concept of Insurance. It is the one in which the customer is provided with a life insurance cover and the premium paid is invested in either debt or equity products or a combination of the two. ULIP attempts to fulfill investment needs of an investor with protection/insurance needs of an insurance seeker. It saves the investor/insuranceseeker the hassles of managing and tracking a portfolio or products. Unit Linked Insurance Plans offer a tax rebate under Section 88 with a tax-free dividend and the benefit of long-term capital gains after maturity. The yield is fairly high if the age at entry is young and it descends slowly along with the age of the holder. ULIP is available in two term periods, one for 10 years and the other for 15 years. It provides numerous benefits for its investors such as life insurance cover at a nominal premium, accident cover, decent rate of returns and concessions.

OBJECTIVE HDFC Standard Lifes excellent investment options to maximise your savings and maximise your childs achievements.It provides security for your child and make those savings on your behalf,in your absence whereas Shiksha Plus Plan Product ensures to make investments in unit link funds which allows withdrawing money,to meet the educational expenses of child.

WORKING OF POLICY With Shiksha Plus Plan Product there are several points:Age of the insured:- 29 years Age of the child:- 2 years Premium:- Rs.50000 annually Term:- 20 years Police opted for:-Dynamic fund allocation,with a cover multiple of 20 Thus corpus on maturity:35

 Rs.22,42,723(assuming 10% return on investment) Rs.14,58,726(assuming 6% return on investment) With Young Star Product there are several steps need to be taken. Step1:- Choose the premium you wish to invest. Step2:- Choose the amount of protection (Sum Assured) which desired. Step3:- Choose the additional plan benefits desired. Step4:- Choose the investment funds.

BENEFITS:Shiksha plus plan has several benefits: A 360 degree coverage to ensure a bright future for your child. Guaranteed pay out of University Education Pool. Dynamic Fund Allocation ensures life stage based allocation of funds. Systematic Transfer Plan to protect from market volatilities and get the benefir of rupee cost averaging. Option to include Dread Disease Rider and Personal Accident benefit rider.

Young Star Product has several benefits like: Death Benefit: - In case of unfortunate demise during the policy term the sum assured

will be paid and the policy will be continued to pay the original regular premiums which has been chosen. Any Critical illness covers terminates immediately.
Maturity Benefit:-The entire amount will be received at the time of maturity. However

there is one more option to take the funds in periodical installments over the period which may be extended to 5 yrs. This is called Settlement Option. During such period, the charges will be deducted constantly other than the risk benefit charges such as the mortality charges. The policy will be terminating the moment of balance of the units in all the funds reaches zero.

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 Choice of Investment Funds: - Young Star Product offers five investment funds where

all the units in a particular fund are identical.

SURRENDER POLICY In case of Shiksha Plus Plan policy can be surrendered:Cash value as built in the policy will be paid at the time of surrender of policy.There is no cash value till two years premiums have been paid in full. Bonus options:Bonus is not confirmed for the first 3 years of the policy.

Whereas in Young Star Product Policy can be surrendered at any time and the surrender value will be the value of the units in the fund. Following are the surrender values applicable after payment of 3 full yrs premium. No. of completed Policy years 3 Policy Years 4 Policy Onwards Surrender Value as a % of Fund Value 30% 30%

TAX BENEFITS Under Young Star Product the person is eligible for tax benefits under Section 80C and Section 10 (10D) of the Income Tax Act, 1961. Under Section 80C, the amount can save up to Rs 33,660 from the tax each year as premium up to Rs 100,000 are allowed as a deduction from the taxable income. Under Section 10(10D), the benefits which are received from the policy are completely tax- free subject to the exclusions. Whereas Under Shiksha Plus Plan Premiums paid for the policy will be eligible for tax benefits under Section 80C.Any benefit amount received under this policy will be eligible for the tax benefit under Section 10(10)D,as per prevailing Income tax laws.

RESULT

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By making comparison between Shiksha Plus Plan of MNYL and Young Star Product of HDFC Standard Life Insurance,it has been observed that Young Star Product is better than the Shiksha Plus Plan it is because:Firstly,its objective has been focused not only on the educational expenses of the child but also to enhance the bright future of the child.Secondly,under the surrender value is always constant during all the years;there are no variations at all.Lastly, there are so many beneficial options provided to buy the product by the child maturity age of eighteen to sixty five or to eighteen to fifty five. Thus thats why the parents go for Young Star Product rather than of Shiksha Plus Product.

REFRENCES
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NAME OF THE BOOK

DR.GUPTA C B (2008) Human Resource And Management .Sultan Chand &Sons

Publication.6(6).253-266 KOTLER PHILIP (2009) Human Resource Management. Himalaya publication .7(1) 39
RAO A B (2003) Research Methodology. Himalaya Publishing House.5(4)10-22

WEBOLOGY
www.wikipedia.com www.google.com www.hdfcinsurance.com www.maxnewyorklife.com www.cnn.com

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ANNEXURE

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