Executive Summary

Indias insurance sector is expected to grow even faster than the countrys overall economic growth, opening up new business avenues across the industry Growth Factors in Indian Insurance Industry Low life insurance penetration rate

Rising awareness of the need of insurance

Favourable foreign investment policies

Increased capital raising options

Life Insurance Industry Overview

Industry growing at 19-20% Penetration in Urban Area 65% Total Market Premium - $80 billion Key Challenges GDP contribution 4% Rural Area 40% Opportunities

Low interest rates

Rising income levels

Less training for agents

Strengthening core product proposition

Tax challenges

Opportunity in health and pensions

Product Types
Term
- Provides life insurance coverage for a specified term - Does not accumulate cash value - 3 key factors 1. Face Amount 2.Premium to be paid 3. Length of coverage - Common types 1. Annual Renewable term 2. Level Term 3. Decreasing Term

Whole Life
- Provides guaranteed insurance protection for the entire life - Higher premiums than term insurance - Carry tax deferred cash value component - Advantages 1. Guaranteed death benefits and cash value 2. Fixed, predictable annual premiums 3. Mortality expense charges - Disadvantages

Universal
- Greater flexibility in premium payment then Whole Life - Potential for greater growth of cash value -

Endowment
- Lump sum is paid after a specified sum or on death - More expensive than whole life and universal - Cumulative cash value of policy equals death benefit - Common Types 1. Traditional with profits 2. Unit-linked 3.Full 4. Low-Cost

1. Inflexibility of premiums
2. Not competitive IRR