PROJECT REPORT ON

i-TRUST

iLEARN TRAINING SESSION

By
RAJESH PANDEY

Under the guidance of

Mr. NARESH NARULA

PGDM(BM)
Entrepreneurship and Management Processes International
New Delhi -110074
 ACKNOWLEDGEMENT

This Session has been a great learning experience for me and I would
like to express my gratitude towards all the people who guided me
throughout, and without whose guidance and support, this project would
not have been completed successfully.

I express my sincere gratitude to MR.VIKRANT PANDE and Mr.

NARESH NARULA, for his able and continuous support and
cooperation throughout session.

I also thankful to the Honorable Col. Arun Dhongde (RETD.), Dean and
Mentor for giving me the opportunity to go for iLearn training and
guiding me throughout.

WITH REGARDS
RAJESH PANDEY

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 TABLE OF CONTENTS

1. Acknowledgement 2

2. Executive Summary 4

3. About ITrust 5

4. Life insurance 6

5. Health insurance 8

6. Retirement planning 11

7. Financial planning 13

8. Sales process 15

9. Personality Development Session 17

10.Visit to corporate office 18

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 EXECUTIVE SUMMARY

iTrust –financial Advisor, has conducted training Session in my college-

EMPI B school, where students got the knowledge about various
financial products and services like- Life insurance, Health insurance,
financial planning, Retirement planning etc.

We have also gone through the personality grooming session, which

conveys importance of behavior and etiquettes in corporate world.

These sessions with Mr. Naresh became very fruitful for every one of us.
During these sessions, I not only learned about financial products and
services but also gained the importance of these in one’s life.

iLEARN was a program which will help the students to get a good
understanding of the financial service industry and also learn the
necessary skills required to be a successful professional.

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 ABOUT iTRUST
iTrust is an independent financial advisor and a financial supermarket.
Headquartered in the National Capital Region of Delhi (NCR), iTrust has
been founded by alumni of Harvard Business School, IIT and IIM who
have global experience in financial services.

We have a specialist team of over 150 members across Delhi, Mumbai,

Bangalore and Chennai comprising MBAs, Chartered Accountants,
Chartered Financial Planners and Lawyers.

Mission: “To help Indian families get rich”.

iTrust offers services in:

 Real Estate
 Home Loans
 Mutual Funds
 Financial Planning
 Tax Planning
 Wills

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 Life Insurance

Life Insurance Industry was liberalized in the year 1999-2000.There are

Currently 23 players in the Life Insurance Industry. Out of which 20
Insurance companies have JV’s with foreign partners and
LIC, Reliance Life Insurance and Sahara Life Insurance company are the
three companies who do not have JV’s.

A high capital intensive industry-Rs.28,929 Cr(=10000000) deployed

Foreign partners have brought in capital of around Rs.5000 Cr as FDI (as
on 31st March 2010)

India has the largest in-force policies in the world.

The top five insurance companies in Indian market are

In terms of premium collections

1 LIC
2 ICICI PRUDENTIAL
3 HDFC STANDARD
4 RELIANCE LIFE
5.SBI LIFE

In Terms of policies sold

1 LIC
2 RELIANCE LIFE
3 BIRLA SUN LIFE
4 ICICI PRUDENTIAL
5 BAJAJ ALLIANZ

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Opportunity

 After opening up of the sector the life insurance industry has grown
leaps and bounds. The industry has earned $ 55 billion total premium
income during the F.Y 2009-10.
 The life insurance companies are the largest institutional investors in
India.
 One of the key drivers of the Indian economy has been the dramatic
increase of the urban population.

 Urban India today is already more populace than the entire United
States. By 2025, it will exceed the current population of the European
Union.

Challenges and buying behavior

 You are never going to die.

 Nobody is going to care when you die.
 You don't want to talk about death.
 I am going to be old when I die.
 You don't love your kids.
 Life Insurance agent is very annoying.
 You enjoy your cigarettes and drinks too much

Reason for buying Life insurance

 To protect your wealth

 Show your love to your family
 Show that you are responsible person
 Our health is deteriorating everyday
 To practice the habit of forced savings
 For funding the Trust
 Funding a business operation
 Funding the Partnership in Business
 For Charity purpose

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 HEALTH INSURANCE

Health insurance, like other forms of insurance, is a form of collectivism

by means of which people collectively pool their risk, in this case the risk
of incurring medical expenses. The collective is usually publicly owned
or else is organized on a non-profit basis for the members of the pool,
though in some countries health insurance pools may also be managed by
for-profit companies. It is sometimes used more broadly to include
insurance covering disability or long-term nursing or custodial care
needs. It may be provided through a government-sponsored social
insurance program, or from private insurance companies. It may be
purchased on a group basis (e.g., by a firm to cover its employees) or
purchased by an individual. In each case, the covered groups or
individuals pay a fee, premium, or tax---to help protect themselves from
unexpected healthcare expenses. Similar benefits paying for medical
expenses may also be provided through social welfare programs funded
by the government.
The concept of health insurance was proposed in 1694 by Hugh the Elder
Chamberlen from the Peter Chamberlen family.

Reason For Buying Health Insurance

 The health care costs are rising and all the more there is no
standardization of health care costs.
 It is not just the costs, but there is also a lack of standardization and
accreditation in health care facilities leading to difficulty in judging the
authenticity of procedures.
 A study shows that a growing number of people are estimated to
suffer
from lifestyle diseases such as heart diseases, diabetes, stroke and this
will have a negative impact on the economic growth and the chances of
the IT sector being hit by lifestyle diseases is the highest.
 According to the World Bank report, 85 % of the working populations
in India do not have Rs. 5,00,000 as instant cash.
 l14 % has Rs. 5,00,000 instantly, but will subsequently face a
financial
crunch.

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Reason For not Buying Health Insurance

 Lack of Awareness

 Lack of Good Advisors

 The first and the foremost thing people think, before buying a health
insurance is that they think it is a waste of money.

 I don’t get my money back, they why should I buy health insurance?”
Many people think that they will get the money back if they don’t
make any claims.

 I have Company Insurance

 I can Afford it, I am Fit

 People bear wrong notion that claims are not paid when you take a
health insurance.

Types of health insurance

A) Family Floater

Family Floater is a policy which covers more than one family member
for a fixed cover. Here
the fixed cover is shared by all the family members, i.e. if Shah Family
of four take a cover of
4 lakh, the entire family can claim up to Rs. 4 lakh together. Generally
two adults and two
children are covered in a general floater policy.

BENEFITS
 It is less expensive than Individual Policy.
 It is great for younger families with members having low health
risk.
 You can add your immediate family members like your spouse and
kids.
 Another benefit is that in case of only one claim in a year, the
family member gets a greater claim amount compared to
what he might have on an individual cover.

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B)Individual Health Insurance

Individual Health Policy is a policy where each of the insured members

is entitled to the
entire amount separately.
BENEFITS:
 The policy extends to family members like Parents, in-Laws.
 The Individual Policy is great for older families and when the
health risk is more.
 There are no age restrictions on the maximum age for the
members for renewable.
 You can avail the benefits of Loading and Discounts until the
policy lapses.

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 RETIREMENT PLANNING
Retirement is one of the most important life events many of us will ever
experience. From both a personal and financial perspective, realizing a
comfortable retirement is an incredibly extensive process that takes
sensible planning and years of persistence. Even once it is reached,
managing your retirement is an ongoing responsibility that carries well
into one's golden years.

While all of us would like to retire comfortably, the complexity and time
required in building a successful retirement plan could make the whole
process seem nothing short of daunting. However, it can often be done
with fewer headaches (and financial pain) than you might think - all it
takes is a little homework, an attainable savings and investment plan, and
a long-term commitment.

Inflation is a big threat to retirement planning. It decreases the purchasing

power of money. So, while preparing retirement planning, one has to
consider inflation also.

Factors to consider for retirement planning:

 One's projected everyday living expenses

 One's life expectancy
 One's projected costs
 One's resources, other than one's retirement savings, that covers
unplanned expenses
 One's property
 One's intended lifestyle during retirement

Steps to retirement planning:

 Start early
 Seek the Assistance of a Financial Planner
 Implementing the Plan
 Tracking / Reviewing the Plan
 Don't dip into One's Retirement Savings

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Estimating retirement need:

Major factors to be taken into consideration for retirement planning:

 Estimation of expense
 Replacement of income
 Importance of planning expenses:
 Sources of income are well defined
 India being a cash economy, a lot of money is spent in cash
 Expenses can be used to understand the financial position of an
individual
 Retirement planning is quintessential for ensuring that our future
expenses can be provided for
 Every individual thus needs to undertake the exercise of retirement
planning

The most common needs:

 Provide a Regular Income during Retired Life

 Meet Lump Sum Needs Immediately on Retirement
 Take Care of Inflation
 Take Care of Medical Emergencies
 Two parameters to estimate retirement expenses:
 The desired standards of living
 Resources available

Retirement Planning: Benefits

 Avoiding a dramatic hit to your lifestyle post retirement.

 Providing financial protection to your dependents.
 Most retirement accounts offer you significant tax benefits

Retirement Planning: Disadvantages

 Here are the disadvantages of retirement planning:

Curbing current consumption.

May lock in funds for a period of time.

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 FINANCIAL PLANNING

Financial Planning is the important part of life.

Need For Financial Planning.

 Gives you a goal to achieve and increases your chances of

achieving it.

 Makes sure you make the right investments, at the right time and
minimizes your risk.

 Gives you backup plan, in case you can’t work due to a disability,
long-term illness, or loss of job.

 Protects your family, in case of your unforeseen death.

 Better prepared. Therefore, it reduces your stress, worries and

helps you feel more secure for the future.

Steps for financial planning process:

 Conducting needs analysis

 Evaluating existing resources

 Conducting risk assessment

 Developing the financial plan

 Implementing the financial plan

 Monitoring the financial plan.

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Life Stages and requirements

Stage 1: Young and Single

Needs are: -
Saving for a home and wedding
Tax planning
Saving for old age

Stage 2: Just married -

Needs are
Planning for home
Securing your home loan liability
Saving for vacations
Saving for the first child

Stage 3: Proud Parents -

Needs are
Provide for children's education
Safeguarding family against loan liabilities
Savings for post-retirement

Stage 4: Planning for Retirement

Needs are
Provide for regular income post retirement
Immediate tax benefits

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 SALES PROCESS
In this session i learnt that sales is most important part of every
organization. Without sales no company or industry can survive in the
market, so to achieve the sales target each and every company has
implement through the sales process.

A sales process is a systematic approach to selling a product or service.

There are specific steps or stages in a sales process vary from company to
company but generally include the following elements:

 Initial Contact
 Application of initial fit criteria
 Sales lead
 Need identification
 Qualified prospect
 Proposal
 Negotiation
 Closing
 Deal transaction.

. Ten qualities of a good sales people

 Willingness and ability to argue on behalf of buyer within the

supplier firm.

 Thoroughness and follow-through.

 Knowledge about company’s product line.

 Market knowledge.

 Imagination of applying his product and services to buyer’s needs.

 Knowledge about buyer’s product line.

 Preparation for the sales calls.

 Regularity of sales calls.

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  Diplomacy in dealing with operating department, and finally

 Perseverance and not taking ‘no’ as an answer.

Personality profile of an effective salesperson

 Dominance

 Achiever

 Affiliation

 Creativity

 Problem solving

 Exhibitionism

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 PERSONALITY DEVELOPMENT SESSION

In today’s world, a professional must be well trained in soft skills.

Soft skills are one area that people tend to neglect. However, soft skill in
today’s business environment is a must if one wishes to be successful in
his professional career. Mr. Naresh Narula took a session for soft skill.
He gave us useful tips, which are very helpful to us.

 How to do a hand shake

 How to give a business card

 How to dress properly in formal dress

 How to make a good first impression

 How to build a positive attitude

 How to meet a client

 How to behave in a corporate party.

He told us various things, which help us to improve our personality. It

was the important session of this training.

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 OFFICE VISIT
As per the training program schedule we were invited to the office of
iTrust in Gurgaon. On reaching the office, we were given a brief
lecture by Mr. Vikrant Pande. He explained us about the working.

Mr. Naresh Narula gave us a task of calling. The objective of the task
was to know the process of calling. For this we were divided in two
groups and each student has to do this task.

It was a very nice experience for me.

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