GRAND PROJECT

OF
“PRODUCT STRATAGY OF PRIVATE LIFE
INSURANCE COMPANY’’

SESSION: 2009-2011

SUBMITTED BY
Prof. POONAM ARORA
Prof. KIRAN.R.K
 ACKNOWLEDGEMENT
This project would have been incomplete without the guidance of my Professors in the

institute. I am grateful to them for their guidance. My colleagues and other senior people

in ICICI Prudential have also played a major role in the completion of this project. I am

also obliged to the librarian in the institute who has provided me with the support. I

needed for the purpose of this project. Last but not the least I am also thankful to all those

people who have been supportive and patiently answered all my queries during a small

survey which I conducted for studying in depth and collecting all the details required for

making this project.

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 CONTENTS

 Executive Summary

 Objective of study

 Overview of Insurance Industry

 Company Profile-ICICI Prudential Life Insurance Company

 Research Methodology

 Analysis of Data

 Comparative Analysis between ICICI Prudential and Other Private

Players

 Market Share of ICICI Prudential Vis-à-vis other Private Players

 Findings

 Conclusion

 Suggestions

 Bibliography

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 EXECUTIVE SUMMARY

In this project I have done the comparison of popular plans of my company with other
selected private Insurance Companies. Comparisons have been done on the basis of some
valuable parameters like Unit Fund Value which is from investment point of view,
savings, protection and many others. On the other hand, I have explained how the
company is running at a great pace and occupying the highest market share in the market.
Main emphasis has been laid on child plan, endowment plan which have been explained
with respect to unit linked insurance or in other words ULIPs.

Now at present insurance scenario has been changed, now more emphasis is on
investment along with protection and saving benefits. For the analysis part of my project
have gone through exploratory research which includes expert opinion which I have done
through discussion with executives and mangers of other competitors companies and for
that I have prepared a list of questions related to my project title.

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 OBJECTIVE OF STUDY

• To know the difference as well as the competitive edge of ICICI PRUDENTIAL

over other companies.
• To know how Unit Linked Insurance plan are increasing the market share of the
company.
• To know why insurance’s scenario is now changing.

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Overview Of Insurance Industry
With largest number of life insurance policies in force in the world, Insurance happens to
be a mega opportunity in India. It’s a business growing at the rate of 15-20 per cent
annually and presently is of the order of Rs 450 billion. Together with banking services,
it adds about 7 per cent to the country’s GDP. Gross premium collection is nearly 2 per
cent of GDP and funds available with LIC for investments are 8 per cent of GDP.

Yet, nearly 80 per cent of Indian population is without life insurance cover, health
insurance and non-life insurance continue to be below international standards. And this
part of the population is also subject to weak social security and pension systems with
hardly any old age income security. This itself is an indicator that growth potential for the
insurance sector is immense.

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

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

With a large capital outlay and long gestation periods, infrastructure projects are fraught
with a multitude of risks throughout the development, construction and operation stages.
These include risks associated with project implementation, including geological risks,
maintenance, commercial and political risks. Without covering these risks the financial
institutions are not willing to commit funds to the sector, especially because the financing
of most private projects is on a limited or non- recourse basis.

Insurance companies not only provide risk cover to infrastructure projects, they also
contribute long-term funds. In fact, insurance companies are an ideal source of long-term
debt and equity for infrastructure projects. With long-term liability, they get a good asset-
liability match by investing their funds in such projects.

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IRDA regulations require insurance companies to invest not less than 15 percent of their
funds in infrastructure and social sectors. International Insurance companies also invest
their funds in such projects.

Insurance is a federal subject in India. There are two legislations that govern the sector-
The Insurance Act- 1938 and the IRDA Act- 1999.

Life Insurance Market

The Life Insurance market in India is an underdeveloped market that was only tapped by
the state owned LIC till the entry of private insurers. The penetration of life insurance
products was 19 percent of the total 400 million of the insurable population. The state
owned LIC sold insurance as a tax instrument, not as a product giving protection. Most
customers were under- insured with no flexibility or transparency in the products. With
the entry of the private insurers the rules of the game have changed.

The 12 private insurers in the life insurance market have already grabbed nearly 9 percent
of the market in terms of premium income. The new business premiums of the 12 private
players have tripled to Rs 1000 crore in 2002- 03 over last year. Meanwhile, state owned
LIC's new premium business has fallen.

Innovative products, smart marketing and aggressive distribution. That's the triple
whammy combination that has enabled fledgling private insurance companies to sign up
Indian customers faster than anyone ever expected. Indians, who have always seen life
insurance as a tax saving device, are now suddenly turning to the private sector and
snapping up the new innovative products on offer.

The growing popularity of the private insurers shows in other ways. They are coining
money in new niches that they have introduced. The state owned companies still
dominate segments like endowments and money back policies. But in the annuity or
pension products business, the private insurers have already wrested over 33 percent of
the market. And in the popular unit-linked insurance schemes they have a virtual
monopoly, with over 90 percent of the customers.

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The private insurers also seem to be scoring big in other ways- they are persuading
people to take out bigger policies. For instance, the avaerage size of a life insurance
policy before privatisation was around Rs 50,000. That has risen to about Rs 80,000. But
the private insurers are ahead in this game and the average size of their policies is around
Rs 1.1 lakh to Rs 1.2 lakh- way bigger than the industry average.

Few of the Life insurance policies are:

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

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

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

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

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

 Pension schemes - are policies that provide benefits to the insured only upon
retirement. If the insured dies during the term of the policy, his nominee would
receive the benefits either as a lump sum or as a pension every month.

Since a single policy cannot meet all the insurance objectives, one should have a
portfolio of policies covering all the needs.

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 Unit Linked Insurance Plans
The transparency makes the product more competitive. So if you are willing to bear
the investment risks in order to generate a higher return on your retirement funds,
ULIPs are for you.

Traditional ‘with profits’ policies too invest in the market and generate the same
returns prevailing in the market. But here the insurance company evens out returns to
ensure that policyholders do not lose money in a bad year. In that sense they are safer.

ULIPs also offer flexibility. For instance, a policyholder can ask the insurance
company to liquidate units in his account to meet the mortality charges if he is unable
to pay any premium installment.

This eats into his savings, but ensures that the policy will continue to cover his life.

Are ULIPs Similar To Mutual Funds?

In structure, yes; in objective, no. Because of the high first-year charges, mutual
funds are a better option if you have a five-year horizon.

But if you have a horizon of 10 years or more, then ULIPs have an edge. To explain
this further a ULIP has high first-year charges towards acquisition

As a result, they find it difficult to outperform mutual funds in the first five years. But
in the long-term, ULIP managers have several advantages over mutual fund
managers.

Since policyholder premiums come at regular intervals, investments can be planned

out more evenly.

Mutual fund managers cannot take a similar long-term view because they have bulk
investors who can move money in and out of schemes at short notice.

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Why do insurers prefer ULIPs?
Insurers love ULIPs for several reasons. Most important of all, insurers can sell these
policies with less capital of their own than what would be required if they sold traditional
policies.

In traditional ‘with profits’ policies, the insurance company bears the investment risk to
the extent of the assured amount. In ULIPs, the policyholder bears most of the investment
risk.

Since ULIPs are devised to mobilize savings, they give insurance companies an
opportunity to get a large chunk of the asset management business, which has been
traditionally dominated by mutual funds.

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 ICICI Prudential Life Insurance

Vision

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a
premier financial powerhouse and Prudentialdential plc, a leading international financial
services group headquartered in the United Kingdom. ICICI Prudentialdential was
amongst the first private sector insurance companies to begin operations in December
2000 after receiving approval from IRDA.

ICICI Prudential's equity base stands at Rs. 9.25 billion with ICICI Bank and Prudential
policie holding 74% and 26% stake respectively. The company has a network of about
56,000 advisors (Approx); as well as 7 banc assurance and 150 corporate agent tie-ups.
For the past four years, ICICI Prudentialdential has retained its position as the No. 1
private life insurer in the country, with a wide range of flexible products that meet the
needs of the Indian customer at every step in life.

Promoters:

ICICI and Prudentialdential came together in 1993 to form Prudentialdential ICICI Asset
Management Company, which has today emerged as one of the leading mutual funds in
India. The two companies bring together two of the strongest financial service brands in
Asia, known for their professionalism, excellent quality of service and long term
commitment to YOU. Riding on the success of this relationship, the two companies
joined hands once more in 2000, to form ICICI Prudentialdential Life Insurance, with a
commitment to provide leading-edge life insurance solutions.

ICICI Bank has 74% stake in the company, and Prudentialdential plc has 26%.

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Prudential PLC

Established in 1848, Prudentialdential plc is a leading international financial services

company in the UK, with around US$250 billion funds under management and more than
16 million customers worldwide. Prudentialdential has brought to market an integrated
range of financial services products that now includes life assurance, pensions, mutual
funds, banking, investment management and general insurance. In Asia, Prudentialdential
is UK''s largest life insurance company with a vast network of 22 life and mutual fund
operations in twelve countries - China, Hong Kong, India, Indonesia, Japan, Korea,
Malaysia, the Philippines, Singapore, Taiwan, Thailand and Vietnam. Since 1923,
Prudentialdential has championed customer-centric products and services, supported by
over 60,000 staff and agents across the region.

Distribution in India

ICICI Prudentialdential has one of the largest distribution networks amongst private
life insurers in India, having commenced operations in 69 cities and towns in India. These
are: Agra, Ahmedabad, Ajmer, Allahabad, Amritsar, Aurangabad, Bangalore, Bareilly,
Bhatinda, Bhopal, Bhubhaneshwar, Calicut, Chandigarh, Chennai, Coimbatore,
Dehradun, Durgapur, Faridabad, Goa, Guntur, Gurgaon, Guwahati, Gwalior, Hyderabad,
Hubli, Indore, Jaipur, Jalandhar, Jamnagar, Jamshedpur, Jodhpur, Kanpur, Karnal, Kochi,
Kolkata, Kolhapur, Kota, Kottayam, Lucknow, Ludhiana, Madurai, Mangalore, Meerut,
Mumbai, Mysore, Nagpur, Nasik, Noida, New Delhi, Patiala, Pune, Raipur, Rajkot,
Ranchi, Rourkela, Salem, Siliguri, Surat, Thane, Thrissur, Trichy, Trivandrum, Udaipur,
Vadodara, Vapi, Varanasi, Vashi, Vijayawada and Vizag.

The company has seven bancassurance tie-ups, having agreements with ICICI Bank,
Federal Bank, South Indian Bank, Bank of India, Lord Krishna Bank and some co-
operative banks, as well as over 160 corporate agents and brokers. It has also tied up with
organisations like Dhan for distribution of Salaam Zindagi, a policy for the socially and
economically underprivileged sections of society.

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ICICI Prudentialdential has recruited and trained about 50,000 insurance advisors to
interface with and advise customers. Further, it leverages its state-of-the-art IT
infrastructure to provide superior quality of service to customers.

Unit Value

Unit Values of different Plan options as on 30-04-2005

Plan Unit Value (Rs./unit)

Protector (Income) Plan* 13.7494
Balancer (Balanced) Plan* 17.35
Maximiser (Growth) Plan* 23.4
Pension Maximiser (Growth) Plan # 23.09
Pension Balancer (Balanced) Plan # 16.18
Pension Protector (Income) Plan # 12.3344
Group Gratuity/Superannuation Balanced Fund 12.65
Group Gratuity/Superannuation Income Fund 11.1562
Group Gratuity/Superannuation Short Term Debt Fund 11.013
Group Superannuation Growth Fund 12.29
Group Gratuity Capital Guarantee Fund 10.4905
Maximiser (Growth) Fund II ^ 12.43
Preserver (Short Term) Fund * ^ 10.4767
Balancer (Balanced) Fund II ^ 10.93
Protector (Income) Fund II ^ 10.0831
Pension Preserver (Short Term) Fund # ~ 10.4303
Pension Maximiser (Growth) Fund II ~ 12.83
Pension Protector (Income) Fund II ~ 10.088
Pension Balancer (Balanced) Fund II ~ 11.12
Invest Shield Life 9.99
Invest Shield Cash 10.1191
Invest Shield Pension 9.99

Insurance Plans
Life is unpredictable. But in face of adversity, our responsibilities towards our parents,
children and loved ones need not be compromised. Insurance planning equips you to
smooth out the uncertainties and adversities that life might send your way, so that the best

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that life has to offer, secure in the knowledge that your beloved ones are well provided
for.
ICICI Prudential offers a complete range of insurance products:

1. Protection Plans
2. Savings Plans
3. Child Plans
4. Investment Plans
5. Retirement Plans
6. Group Plans
7. Keyman Plans
8. Riders

Protection Plans

Life Guard

ICICI Prudentialdential Life Insurance offers LifeGuard - a set of pure protection plans.
Choose from amongst three different product structures to insure your life and provide
total security to your family, at a very affordable cost.

Level Term Assurance with return of premium

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 • On death the entire sum assured will be paid.
• On maturity, all the premiums paid will be returned.

Savings Plans

ICICI Prudentialdential offers a variety of policies that give you the benefits of protection
and the opportunity to save for important assets or events, like a home, a car or a
wedding.

 InvestShieldLife

A regular premium unit-linked insurance plan with an assurance of Capital Guarantee

and the facility of extended insurance cover.

 Invest Shield Gold

A unit-linked insurance plan with an assurance of Capital Guarantee*, which offers you
the benefit of a limited premium payment and coverage term.

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  Cash Plus

An insurance plan that gives added protection savings, multiple options, plus the power
of liquidity.

Retirement Plans

Life Expectancy has been rising rapidly and today you can expect to live longer than
your earlier generations. For you, this increase will mean a longer retirement life,
stretching into a couple of decades. ICICI Prudentialdential presents Retirement
Solutions that combine the best of insurance and investment. These solutions are
developed to ensure your peace of mind.

Choose from amongst 5 retirement plans:

 Invest Shield Pension

A regular premium unit-linked pension plan with an assurance of Capital Guarantee

 Life Time Pension II

A regular premium linked pension plan that gives you the freedom to choose the amount
of premium, and invest in market-linked funds, to generate potentially higher returns.

 Life Link Pension II

A single premium linked pension plan that gives you the freedom to choose the amount
of premium, and invest in market-linked funds, to generate potentially higher returns.

 Secure Plus Pension

A regular premium pension plan that gives you the flexibility to choose between 3 levels
of sum assured for the same level of total annual contribution.

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  Forever Life

A regular premium pension plan that helps you save for your retirement while providing
you with life insurance protection.

The capital guarantee is applicable only on the invested premium and the declared bonus
interests.
Choose from 5 Annuity options at the time of investing

1)Life Annuity

2)Life Annuity with return of purchase price

3)Life Annuity guaranteed for 5, 10, 15 years

4)Joint Life, Last Survivor without return of purchase price

5)Joint Life, Last Survivor with return of purchase price

Child Plans

 SmartKid Education Plans

As a responsible parent, you will always strive to ensure a hassle-free, successful life for
your child. However, life is full of uncertainties and even the best-laid plans can go
wrong. Here’s how you can give your child a 100% safe and assured tomorrow,
whatever the uncertainties. SmartKid is especially designed to provide flexibility and
safeguard your child’s future education and lifestyle, taking all possibilities into account.
Choose from amongst a basket of 4 plans:

1. Smartkid Regular Premium

2. Smartkid unit-linked regular premium
3. Smartkid unit-linked regular premium II
4. Smartkid unit-linked regular premium III

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All these plans offer you:

• Financial Benefits: Regular payments at critical stages in your child’s

life, like Board examinations, Graduation and Post-graduation.
• Total peace of mind, even if you are not around
 Sum Assured is paid immediately: Ensures that your loved ones
stay financially secure, even in your absence.
 All future premiums are waived: Ensuring that your family is
not financially burdened in your absence.
 Policy benefits continue: The educational benefits of the policy
continue, ensuring that your child can realize his or her dreams
without any hassles.

• Development Allowance: SmartKid guarantees regular income to secure your

child’s educational career and also ensures his or her all-round development, for a
nominal additional amount. The Income Benefit Rider takes care of this through
an annual payment of 10% of the sum assured, to your child, till the maturity of
the policy, in the unfortunate event of the death of the parent.
• All SmartKid plans can be enhanced with the Accident & Disability Benefit Rider
and Income Benefit Rider.You can also an Accident Benefit Rider to a SmartKid
Regular Premium policy,and a Waiver of Premium Rider (WOP) to SmartKid
unit-linked regular premium policy.

Investment Plans

LifeLink II is a unique plan that combines the security of a life insurance policy with the
opportunity of enjoying high returns on your investments, without the market risks
compromising on the protection of your family!

Death Benefit: The Sum Assured under the product has 2 options, either 500% of the
initial premium or 105% of the initial premium. In the event of an unfortunate death, the
beneficiary will receive higher of the value of units or the initial death benefit, less any

18
withdrawals.

Withdrawal Benefit: One can make partial withdrawals from the accumulated value of
the policy after completion of one policy year.

Flexibility: Choose from four fund options, based on your investment objective and risk
appetite. If at a later stage your financial priorities change, you can switch between the
various fund options, absolutely free, 4 times a year.

Keyman Insurance Plans

A keyman is an individual who directly affects the profitability and the continuity of a
business and whose absence may have an adverse effect on the health and continuity of
the business. Keyman insurance is a life insurance policy taken by the company on the
life of such a key person.

The objective of the keyman insurance is to provide the company with money so that the
financial losses to the company can be protected, in absence of the keyman. The aim is to
indemnify the company of these losses and to allow business continuity.

All premiums paid for securing a keyman life insurance policy are treated as business
expenditure u/s 37 (1).

Group Solutions

In an era of competitive parity, the only asset that makes a decisive difference between
corporate success and failure is the quality of human capital. Employee benefits have
proven to be an excellent tool to optimize the retention of talent and improve an
organisation’s bottomline. The quality of an organisation’s employee benefits
establishes and maintains a company's image as a caring employer. Optimum care of
employees is a long-term investment that results in a sustained competitive advantage
for an organisation in the times to come.

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Group Term Assurance: Helps provide affordable cover to members of a group.

Group Gratuity Plan: Helps employers fund their statutory gratuity obligation in a
flexible and hassle-free manner

Group Superannuation Plan: A flexible scheme (defined benefit and defined

contribution) to provide a retirement kitty for each member of the group.

Group Term Assurance

ICICI Prudential's flexible group term solution helps provide affordable cover to
members of a group. The cover could be uniform or based on designation/rank or a
multiple of salary, and can be extended to all employees between the ages of 18 and 65
years. The benefit under the policy is paid on the event of the member’s death to the
beneficiary nominated by the member. It is a one-year renewable policy where one
master policy covers all proposed employees comprising the group, with a minimum
group size of 25 persons. New members can join the group and outgoing members can
leave the group at any point during the policy term.

Group Grauity Plan

ICICI Prudential's group gratuity plan helps employers fund their gratuity obligation in a
scientific manner. Employers can avail of the tax benefits as applicable to approved
gratuity funds. The plan can also be customized to structure schemes that can provide
benefits beyond the statutory obligations.

Group Superannuation Plan

ICICI Prudential’s Superannuation Scheme (for both Defined Benefit and Defined
Contribution funds) offers substantial benefits to both employers and employees. The
employer and employee can avail of tax benefits applicable to an approved
superannuation trust. The scheme will provide for a retirement fund for each

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participating employee. An employee would be able to choose from various annuity
options or opt for partial commutation of corpus at retirement.

Investment Plans

You can hedge your investments with investment like LifeLink II vehicles that provide
you with a diversified portfolio.

Savings Plans
Endowment policies are a good way of putting aside your savings today for a future goal
- whether it's to buy a house in India or fund your entrepreneurial vision. Our savings-
oriented policies are designed to make your savings grow and have them available to you
at the end of a fixed number of years or through the term of the plan.
Retirement Plans

Many of us picture ourselves enjoying the fruits of our labour after retirement - going on
a dream vacation, or helping our child's career take wing. Financing all this will depend
on our personal savings and investments, so its important to save for the future from
today. Our retirement plans are designed to help you systematically save, so that you can
enjoy all the things you have dreamed of when you retire.

Riders

ICICI Prudentialdential gives you the freedom to form your very own comprehensive
insurance policy by adding the rider benefits to the basic life insurance policy. Add from
the following list of benefits to increase the scope of your policy, at a nominal cost.

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  Critical Illness Benefit Rider
This rider provides protection against 9 critical illnesses, namely: Major organ
transplants, Complete renal failure, Stroke, Paralysis, Heart attack, Valve replacement
surgery, Major surgery of the aorta, CAGS (Bypass) and Cancer .

 Major Surgical Assistance Rider

This rider provides assistance to the policyholder against 43 surgical procedures. These
surgical procedures are divided into 3 categories and the extent of assistance provided
depends on the type of procedure.

 Accident & Disability Benefit Rider

Benefits payable on death due to an accident

Accident & Disability Benefit rider is available with Save n’ Protect, Cashbak, SmartKid
Child Plans, Premier Life, LifeTime, LifeTime II, LifeTime Pension II, ForeverLife,
SecurePlus, CashPlus, SecurePlus Pension, LifeGuard ROP, LifeGuard WROP, Group
Term Plan, InvestShield Life, InvestShield Cash, InvestShield Gold and InvestShield
Pension . In case of Lifetime II, Lifetime Pension II, SecurePlus, CashPlus, LifeGuard
ROP and LifeGuard WROP, the waiver of premium benefit is not available.

 Accident Benefit Rider

If the policyholder dies due to an accident, 100% of the rider sum assured is paid in
addition to the basic sum assured.

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 RESEARCH METHODOLOGY

EXPLORATORY RESEARCH

• Expert Opinion (Primary data)…….. Had a direct talk with executives and HR
persons (Training department) of the competitor’s companies and for that I have
prepared a list of questions which helped me in knowing the details of their
policies as well as their investment structure. This method was direct and was
more beneficial from my project’s point of view.

• Secondary data: Through various books, magazines, newspapers, journals and

websites.

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COMPARATIVE ANALYSIS OF
DATA

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 Comparative Study Between Various Policies of ICICI Pudential Life
Insurance with Other Private Market Players, namely:

1. HDFC Standard Life Insurance

2. Birla Sun Life
3. Aviva Life Insurance

ICICI Prudential Vs. HDFC Standard Life Insurance

ICICI Prudential CashBak (ICICI Money Back Policy (HDFC - Standard

PRUDENTIAL Life) Life)
Objective Objective

• Policy is suitable for people who wish to have
combined benefit of savings and liquidity all
the while having an insurance protections.
Policy provides for the periodic financial
requirements of an individual with the added
benefit of insurance protection.
Salient Features
• The policy is suitable for people who
wish to receive amounts at regular
intervals during one's career to meet
contingencies or for re-investment,
all the while having life insurance
protection.
Salient Features

• It a money back plan where in the lump sum • A policy where lump sum amounts
amounts are payable to life assured at regular are paid to the life assured at periodic
periodic intervals. intervals on survival
• Premiums are payable through out the term of • In case of death of the life assured
the policy or till earlier death within the term, the total sum insured
• Guaranteed additions and bonus are payable is paid to the nominee, irrespective of
under the policy earlier survival benefits
• In case of death of the life assured within the
term, the total sum insured along with • Bonus is payable under this scheme.
guaranteed additions and bonus are paid to the
nominee, irrespective of earlier survival
benefits
• Period of the policy can be 15 or 20 years.
• Policyholder can opt for the rider at the time
of taking the policy at a marginally additional
premium. Riders available are
a. Accident & Disability benefit
b. Critical Illness Benefit
c. Major Surgical Assistance and

d. Level Term Insurance

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Benefits Benefits

On Survival On Survival
Policy Survival Payment as a % of
At the end of • Basic sum assured plus any bonus
Term basic sum assured
additions less the previous cash lump
3 10%
sums is provided.
6 15%
9 20% Schedule of cash lump sum (as a %
15 years 12 25% of basic sum assured)
Total No of years from policy
50% plus guaranteed policy date
15(Maturity) additions plus vested term
5 10 15 20 25
bonuses.
10 40%
4 10% of sum assured 15 30% 30%
8 15% 20 25% 25% 25%
12 20% 25 20% 20% 20% 20%
20 years 16 25% 30 15% 15% 15% 15% 15%
50% plus guaranteed On Death
20 (Maturity) additions plus vested
bonuses. • Basic sum assured plus any bonus
additions is provided irrespective of
earlier survival benefits.
On Death: • Apart from the basic benefit of
receiving insurance benefits at
• In case of death of the life assured within the
regular intervals within the term of
term, the total sum insured along with
the policy, benefits depend on the
guaranteed additions and bonus is paid to the
type of the plan chosen. However
nominee, irrespective of earlier survival
premiums are accordingly charged
benefits
for availing these benefits. The plans
available are:
Riders available
Plan Benefits available
• Accident & disability benefit
a. Waiver of future premiums Classic Basic Benefits
b. 10% of SA each year for 10 years. Value Basic Benefits + Double Sum
c. Additional SA, if death is due to an Plan A Assured (DSA)
accident while traveling as a passenger Value Basic Benefits + Accidental
in train or bus Plan B Death Benefit (ADB)
• Critical illness benefit Value Basic Benefits + Waiver of
Plan C Premium (WOP)
9 medical conditions are covered. On
admission of a claim, full SA + GA + VB is Value Basic Benefits + Waiver of
paid and policy contract terminates with all Plan D Premium (WOP)+ Double
Sum Assured (DSA)

26
 Basic Benefits+ Waiver of
riders ceased. Claim under this rider is not Value Premium (WOP)+ Critical
admissible during first six months of the Plan E Illness (CI)
policy.

• Major Surgical Assistance

 43 surgical procedures are covered

1. Major Surgical Procedure -
50% of SA
2. Intermediate Surgical
Procedure - 30% of SA
3. Minor Surgical Procedure -
20% of SA

Claims can be made for more than one

surgical procedure, subject to a
maximum of 50% of SA, claim under
this rider is not allowed during first 6
months of the policy

 Level Term Insurance

Additional cover in the event of death

happening within the term.
Other Conditions Other Conditions

• Minimum amount of Sum Insured - Rs. Value Value

Value Plan
50,000 Classic Plan Plan
C,D and E
• Minimum age at entry 16 years A B
Min.age at
• Maximum age at entry 55 years 12 18 18 18
entry
Max.age at
60 60 55 50
entry
Max.age at
75 75 65 60
expiry

• Minimum term: 10 years

• Maximum term: 30 years

Save 'n' Protect (ICICI Endowment Assurance Plan (HDFC

27
 PRUDENTIAL Life) Standard Life)
Objective Objective

• It is an ideal plan for persons who • The policy provides for family
wish to accumulate savings on a protection as well as old age
regular basis, while having provision. This policy is suitable for
insurance protection. all categories of people
Salient Features Salient Features

• It is basically an Endowment • Lump sum amount is payable on

Assurance Plan with deferred
participation in profits and extended
life cover.
• Premiums are payable till the end of
• It is a fixed term plan - combination
of both savings & life cover.
survival to maturity or on death,
whichever is earlier.
payment term chosen or death which
ever is earlier. However in case of
plans where Waiver of Premium
benefit has been availed, premiums
are not payable during the period of
disablement.

• Premiums paid under the policy are

eligible for tax rebate under section
88 of Income Tax Act 1961.
• Benefits under the policy can be
enhanced by opting for riders. Riders
are the additional benefits that can be
availed by paying marginal
additional premium. Riders available
under the plan are:

1. Double Sum Assured

2. Accidental Death Benefit

3. Waiver of Premium

4. Critical Illness
Benefits Benefits

• On death occurring within the term. On Death

1. Full SA plus GA & vested

28
 bonuses are payable
• On survival
1. Full SA plus GA plus vested
bonuses during the full term
2. Additionally, one gets a free
life cover for 5 years, from date of
maturity, for 50% of original sum
assured. No Evidence of health is
required and no premium needs to
be paid for this.
Riders available
• Accident & disability benefit
a. Waiver of future premiums
b. 10% of SA each year for 10
years.
c. Additional SA, if death is
due to an accident while travelling
as a passenger in train or bus
• Critical illness benefit
9 medical conditions are covered. On
admission of a claim, full SA + GA + VB is
paid and policy contract terminates with all
riders ceased. Claim under this rider is not
admissible during first six months of the
policy.
• Major Surgical Assistance
 43 surgical procedures are
covered
1. Major Surgical
Procedure - 50% of SA
2. Intermediate Surgical
Procedure - 30% of SA
3. Minor Surgical
Procedure - 20% of SA
Claims can be made for more than one
surgical procedure, subject to a maximum
of 50% of SA, claim under this rider is not
allowed during first 6 months of the policy
29
• Basic Sum Assured + Bonus is
payable
On Survival
• Basic Sum Assured + Bonus is
payable
Riders
• Double Sum Assured (DSA): This
benefit provides for an additional
amount equivalent to the basic sum
assured in case of unfortunate death.
• Accidental Death Benefit (ADB):
This benefit provides for an
additional amount equivalent to the
basic sum assured in case of death
due to accident.
• Waiver of Premium (WOP): By the
virtue of this benefit all future
premiums stand waived in case of
total disablement of the life assured.
The waiver applies during the period
of total disability.
• Critical Illness (CI): This benefit will
provide for an additional amount
equivalent to the basic sum assured
on insured contracting to any of the
six specified critical illnesses.
Critical illness benefit will be paid
on insured surviving 30 days from
the date of claim. This benefit comes
to an end once the claim is paid,
  Level Term Insurance however basic policy continues.

Additional cover in the event of death

happening within the term.

• When one avails extend life cover,

no riders are available.
Other Conditions Other Conditions

• Minimum age 15 • Minimum term: 10 years

• Maximum age 60 • Maximum term: 30 years
• Maximum Maturity age 70 • The minimum and maximum ages at
• Minimum SA Rs.20, 000/- entry under the plan are as follows:
• Minimum Term 10 years
Basic Min.age at entry
• Loans can be availed under the Plan CI DSA ADB WOP
policy and loan interest is
Min.age at
chargeable. 12 18 18 18 18
entry
Max.age at
60 55 60 55 50
entry
Max. age at
75 70 75 65 60
maturity

ICICI Prudential Life Time (ICICI PRUDENTIAL Flexible Bond - HDFC

Life) Standard Life

Single Premium Whole of

Life
Objective Objective

• This policy is a long-term market linked total • It is a single

protection plan. The plans offer protections for life at the premium policy providing
same time allows the policyholder to get market linked risk cover, liquidity and
returns. It is a single product combining the benefits of returns.

30
 both an investment product and insurance plan. This
apart, the product offers a lot of flexibility.
Salient Features Salient Features

• Death benefit will be a multiple of premium paid. • It is a single

• Premium paid will be invested in the fund premium policy.
chosen(Maximiser, Balancer or Protector fund)* after Premiums paid under the
deducting mortality charges and administrative expenses. policy are invested in the
• Policyholder has the option to vary the amount of company's(HDFC
insurance protection vis-à-vis investment while Standard Life) With Profit
maintaining the same premium. Fund
• The returns depend on the plan chosen- growth, • Policy holder has the
balanced and income and one can switch from one fund option to receive sum
to another depending on the financial priorities. Once in assured + bonus on 10th,
a year switching is done free of cost. 15th, 20th and subsequent
• Benefits can be enhanced by adding Accident & five-yearly anniversaries.
Disability Benefit, Major Surgical Assistance, Critical Once the money has been
Illness benefits at a nominal extra premium. taken policy ceases.
• Entry into the plan will be based on the Unit Value • The company will
applicable on the date of policy issue. The amount of declare a compound
premium towards death benefit decreases with the reversionary bonus every
increase in the value of the units. year which will be added
• One has the flexibility to increase the death benefit to the policy on its
by 25% subject to a maximum of Rs.100,000, every third anniversary.
year upto 3 times, without any underwriting. Death • In additions to the
benefit can be increased beyond this limit with bonus, the company,
underwriting. based on its performance
• Apart from the above the policy holder can increase may pay terminal bonus
the death benefit at different stages of life such as on surrender or death or
Marriage, birth of first child and birth of second child. on guaranteed dates.
This is irrespective of when the last increase was done. • Policyholder can
• One can decrease the death benefit in the multiple of surrender the policy
Rs.100,000. However a minimum death benefit of anytime after it has been
Rs.100,000 has to be maintained. in force for a period of 6
• Policy holder has the option to increase the months.
investment by the way of top ups with a lump sum
payment at any time • No medical
• If after at least 3 years premium payments are made examination is required to
and then one is unable to pay the subsequent premiums, take this policy
the cover under the policy will continue and the
premiums towards the life cover and riders will be
debited from the unit fund.

Unit value is calculated bi-weekly on a forward pricing

31
basis every Tuesday and Friday
Unit value =
Market/ Fair Value of the relevant Plan's Investments plus
Current Assets less Current Liabilities and Provisions
------------------------------------------------------------------------
Number of Units outstanding under the relevant Plan

*The returns depend on the plan chosen.

Maximiser (Growth) Plan

• If high growth is your priority this is the plan for

you. You can enjoy long-term capital appreciation from a
portfolio that is invested primarily in equity and equity-
related securities.

Protector (Income) Plan

• If on the other hand your priority is steady returns,

you can opt for the Income Plan. Here you can
accumulate a steady income at a low risk across a
medium to long term period.

Balancer (Balanced) Plan

• If you prefer a balance of growth and steady returns

choose our Balanced Plan. This would ensure that your
portfolio is invested in equity and equity-linked securities
as well as in fixed income securities.
Benefits Benefits

On Death On survival

• In the event of death of the policyholder, • There is no maturity

beneficiaries will be paid the higher of death benefit and period and policy holder
value of the units. has the option to receive
sum assured + bonus on
On survival 10th, 15th, 20th and
subsequent five-yearly
• There is no maturity period and policy holder has anniversaries. Once the
the option to withdraw units under the plan at anytime money has been taken
after the policy has been in force for three years.

32
Riders policy ceases.

Accident & disability benefit On Death

• 10% of SA each year for 10 years in case of • Provided that

permanent total disability the policy is in force,
• Additional SA, if death is due to an accident while sum assured secured by
travelling as a passenger in train or bus the premium plus
attached bonus is
Critical illness benefit payable.

• 9 medical conditions are covered. On admission of a

claim, sum assured under the rider is paid and the rider
comes to an end. Claim under this rider is not admissible
during first six months of the policy.

Major Surgical Assistance

• 43 surgical procedures are covered

1. Major Surgical Procedure - 50% of SA
2. Intermediate Surgical Procedure - 30% of
SA
3. Minor Surgical Procedure - 20% of SA

• Claims can be made for more than one surgical

procedure, subject to a maximum of 50% of SA, claim
under this rider is not allowed during first 6 months of
the policy
Other Conditions Other Conditions

• Minimum age at entry: 0 years • Minimum sum

• Maximum age at entry: 60 years (completed years) assured :Rs. 25,000
• Minimum premium : Rs.18,000 per annum • Maximum sum
• Minimum sum assured under riders : Rs.100,000 assured:Rs. 5,00,000
• Maximum Sum assured under riders : Rs.10,00,000 • Minimum age at
entry : 18 years
Following are the charges applicable under the policy:
• Maximum age at
• The initial administrative charges in the 1st year entry : 70 years
would be 20% of the premium, for premium amounts
less than Rs.50,000/-. For premiums equal to or more
than Rs.50,000/-, it is 18% of the premium.
• Other Charges: Annual administrative charges of
1.00% p.a. of net assets for protector (Income) and

33
 1.25% p.a. for Maximiser (Growth) and Balancer
(Balanced) options. Annual investment charge of 0.5%
p.a. of the net assets for Protector and 1% p.a. of the net
assets for Maximiser and Balanced.
• Mortality charge towards death benefit
• Initial charges of 1% on Top-ups
• One free switch every year after which a switching
fee of 1% of the switching amount will be levied. Any
unutilized free switch cannot be carried forward.

Note: In case the unit value is inadequate to cover

charges, the policy will terminate.

ICICI Prudential Smart Kid Children's Plan (HDFC)

Objective Objective

• It is a plan that provides guaranteed • The plan is suitable for people who
educational benefits to the child wish to provide for their children's
along with life insurance cover and higher education/marriage.
hence is suitable for parents
(between 20-60 years) with children
in the age group of 0-12 years.
Salient Features Salient Features

• It is a money back plan where in • This is a flexible endowment plan

sum assured is paid at regular
intervals. The policy can be so
designed that it provides money at
important milestones of the child's
education like secondary education,
higher secondary, and graduation
and post graduation.
• On death of the life assured with in
the term, full sum assured is paid
immediately and all future
premiums are waived. Death
benefits are in additions to the
benefits that child is likely to get in
the normal course of the policy i.e.,
child will be eligible for amounts at
important milestones of education,
taken on the life of the parent for the
benefit of the child.
• Policy is offered in three variants.
Options available are o
1. Maturity Benefit Plan
2. Accelerated Benefit Plan
3. Double Benefit Plan
• The policy provides financial
security to the child in the future, by
providing lumpsum amounts either
on maturity or on unfortunate death
of the parent (life assured) during the
policy term, which ever is earlier.
However benefits vary depending
upon the option chosen.
• Bonus is paid under the policy.

34
 irrespective of death of the life
assured.
• One has the flexibility to choose the
exact age of the child (between 22 to
25 years), at which the policy is to
mature. The term of the policy is
determined by Age of the child on
maturity - Age of the child on the
date of proposal.
• Policyholder has the option to avail
additional benefits such as Income
benefit rider, Accident Disability
benefit rider by paying additional
premium
Benefits
• Premiums are payable till death or
till maturity which ever is earlier.
• The premiums paid will be eligible
for tax relief under Section 88 of the
Income Tax Act, 1961. The benefits
received under the policy are eligible
for tax relief under Section 10(10D)
of the Income Tax Act, 1961.
• Premium can be paid either in
yearly, half-yearly or quarterly
modes, depending on your
convenience.
Benefits

On Survival On the death

of the insured
Option On maturity
• Lump sum amounts are payable at parent during
regular interval to meet the child's the policy term
educational expenses. Future
premiums are
On Death during the term Sum assured
Maturity waived and the
+ bonuses are
Benefit Plan policy
• Full sum assured is paid and future paid.
continues till
premiums are waived. Death maturity.
benefits are in additions to the On the
benefits that child is likely to get in survival of
the normal course of the policy i.e., Sum assured + the insured
child will be eligible for amounts at Accelerated bonuses are parent to the
important milestones of education, Benefit Plan paid and the maturity date,
irrespective of death of the life policy stops. sum assured +
assured. bonuses are
paid.
Riders Sum assured is
paid, future
• Income Benefit Rider premiums are Sum assured
Double
waived, and + bonuses are
Income Benefit Rider pays 10% of Benefit Plan the policy paid.
sum assured annually to the child on continues till
each policy anniversary following maturity
an unfortunate demise, till maturity
of the Rider.

35
 • Accident and Disability Benefit
Rider

This provides cover against an

unfortunate death due to an
accident. If the individual gets
permanently disabled due to an
accident, it will also provide a
regular income for the next 10 years
or till maturity of the policy. All
future premiums, in respect of Sum
Assured under the basic plan equal
to accident cover, will be waived.
Other Conditions Other Conditions

• Minimum age of the Parent : 20 • Minimum Age at Entry: 18 years

years. • Maximum Age at Entry: 60 years
• Maximum age of the Parent : 60 • Minimum Age at Maturity : 75 years
years. • Maximum Term : 10 years
• Minimum premium: Rs. 8,000 per
year. • Maximum Term : 25 years
• Minimum Sum
Assured:Rs.1,00,000.
• Maximum Sum assured:
Rs.30,00,000.
• Maximum limit under Income
Benefit Rider: Rs.10,00,000.

• Maximum limit under Accident and

Disability Benefit Rider:
Rs.10,00,000.

36
 ICICI Prudential Vs. Birla Sunlife Insurance
ICICI Prudential Smart Kid
Objective
• It is a plan that provides guaranteed
educational benefits to the child
along with life insurance cover and
hence is suitable for parents
(between 20-60 years) with children
in the age group of 0-12 years.
Salient Features
• It is a money back plan where in
sum assured is paid at regular
intervals. The policy can be so
designed that it provides money at
important milestones of the child's
education like secondary education,
higher secondary, and graduation
and post graduation.
• On death of the life assured with in
the term, full sum assured is paid
immediately and all future
premiums are waived. Death
benefits are in additions to the
benefits that child is likely to get in
the normal course of the policy i.e.,
child will be eligible for amounts at
important milestones of education,
37
Young Scholar - Birla sunlife
Objective
• The plan is suitable for people who
wish to provide for their children's
higher education, since benefits
under the policy are payable in last
five years of term.
Salient Features
• This is a money back policy where in
benefits are payable in the last five
years of the term.
• In the event of death of the life
assured with in the term, double the
sum assured + any amount in the
holding account will be paid. In
addition to the above, the child will
be eligible for scheduled benefits
during the last five years of the term.
• Policy can be taken by parents
having children aged below 8 years.
Policy is offered in two variants one
being for the parents having children
aged between 1-3 years(both
inclusive) and other for parents
having children between 4 and 8
 irrespective of death of the life
assured.
• One has the flexibility to choose the
exact age of the child (between 22 to
25 years), at which the policy is to
mature. The term of the policy is
determined by Age of the child on
maturity - Age of the child on the
date of proposal.
• Policyholder has the option to avail
additional benefits such as Income
benefit rider, Accident Disability
benefit rider by paying additional
premium
Benefits
On Survival
• Lump sum amounts are payable at
regular interval to meet the child's
educational expenses.
On Death during the term
• Full sum assured is paid and future
premiums are waived. Death
benefits are in additions to the
benefits that child is likely to get in
the normal course of the policy i.e.,
child will be eligible for amounts at
important milestones of education,
irrespective of death of the life
assured.
Riders
38
years.
• Investment option: Part of the
premium is invested through an
investment fund. One can select his
investment option based on his risk
appetite. The insured has the
flexibility to chose between three
investment options viz: Protector,
Builder and Enhancer. The
policyholder is also given the option
to change the investment option
during the currency of the policy.
• Riders: Riders are additional benefits
that can be added to the policy by
paying additional premium. Critical
illness riders and Term rider are
available along with the plan.
• Favourable terms : Favourable
premium rates for female lives
• Tax benefits : As per Sec 88 and
Sec 10(10D) of the Income Tax Act.
Benefits
On Survival
• If the age of the child is between 0
and 3 years on inception, then 30 %
of sum assured is payable at the end
of 16th, 17th, 18th and 19th policy
year and at the end of 20th policy
year amount in the holding account
will be paid.
• If the age of the child is between 4
and 8 years on inception, then 20 %
of sum assured is payable at the end
of 11th, 12th, 13th and 14th policy
year and at the end of 15th
policyyear, amount in the holding
account will be paid.
On Death during the term
• On death of the parent during the
term of the policy, double the sum
• Income Benefit Rider assured is paid to the nominees. If
the cause of death is an accident then
Income Benefit Rider pays 10% of triple the sum assured is paid. In case
sum assured annually to the child on of total disablement sum assured is
each policy anniversary following payable. These benefits are in
an unfortunate demise, till maturity addition to the scheduled benefits the
of the Rider. child is likely to get during the last
five years of the term
• Accident and Disability Benefit • In the event of death of the child,
Rider parent can continue the policy to
receive the benefits or surrender the
This provides cover against an policy and receive the surrender
unfortunate death due to an value.
accident. If the individual gets
permanently disabled due to an Riders
accident, it will also provide a
regular income for the next 10 years Riders are additional benefits that can be
or till maturity of the policy. All added to the policy by paying additional
future premiums, in respect of Sum premium.
Assured under the basic plan equal
to accident cover, will be waived.

• Critical Illness Rider : Amount

specified under this rider is paid in
the event of the life assured
contracting to any of the four critical
illnesses specified under this rider.
Critical illnesses covered under this
rider are Heart Attack, Stroke,
Cancer and Surgery to Coronary
Arteries. However the rider amount
is paid provided the life insured
survives the specified illness for a
period of at least 30days from the
date of diagnosis
• Term Rider : By the virtue of this
rider an additional amount equivalent
to the amount specified under this
rider paid on death with the term.

• Waiver of Premium Rider :This rider

waives all the future premiums under
the base policy and attached riders
on the happening of the insured
event, prior to the premium payer's

39
 65th birthday. However the policy
will remain active. Insured events
include some illnesses or accident
due to which the life insured/policy
owner becomes completely disabled
or; The policy owner/life insured is
diagnosed to be suffering from any
of the specified critical illnesses; The
policy owner's death, in case of the
life insured being the child and the
policy owner being parent/guardian.
Premiums for this rider are payable
throughout the benefit period of the
base policy or rider but not beyond
the policy owner attaining age 65.
For the benefits to be payable under
this rider there will be a waiting
period of 26 weeks and 30 days for
Total Permanent Disability and
Critical illness respectively.
Other Conditions Other Conditions

• Minimum age of the Parent : 20 • Minimum age at entry : 21 years.

years. • Maximum age at entry: 65 years.
• Maximum age of the Parent : 60
years. • Maximum age at maturity: 75 years
• Minimum premium: Rs. 8,000 per
year.
• Minimum Sum
Assured:Rs.1,00,000.
• Maximum Sum assured:
Rs.30,00,000.
• Maximum limit under Income
Benefit Rider: Rs.10,00,000.

• Maximum limit under Accident and

Disability Benefit Rider:
Rs.10,00,000.

Save 'n' Protect (ICICI PRUDENTIAL Life) FLEXI Save Plus - Birla Sun

40
 Life Endowment Plan
Objective Objective

• It is an ideal plan for persons who wish to
accumulate savings on a regular basis, while
having insurance protection.
Salient Features
• This plan offers insurance
cover while giving scope to
improve return on savings
for the policyholder. The
duration of the plan can be
structured to meet specific
needs like children's higher
education or to meet
marriage expenses while
providing risk cover for the
said duration.
Salient Features

• It is basically an Endowment Assurance Plan • Flexi Save Plus is an

with deferred participation in profits and endowment plan.
extended life cover. • Duration of the Policy: The
policyholder has the option
• It is a fixed term plan - combination of both to chose the term between
savings & life cover. 5 and 50 years.
• Payments: Premium
payment can be made as
single payment, uniform
annual payment, semi-
annual or in easy quarterly
installments
• Investment option: Part of
the premium is invested
through an investment
fund. One can select his
investment option based on
ones risk appetite. The
insured has the flexibility
to chose between three
investment options viz:
Protector, Builder and
Enhancer. The
policyholder is also given
the option to change the
investment option during
the currency of the policy.
• Automatic Premium

41
 Payment: Policy does not
lapse due to non-payment
of any Premium Plan
deploys funds from earlier
premium payments. This is
based on certain
conditions.
• Free look period:
Policyholder has option to
review his decision to have
the policy for 15 days from
the date of the receipt of
the policy document by the
policyholder.
• Transparency in Surrender
Values: On deciding to
terminate the contract, the
exact amount payable to
you as surrender value is
indicated.
• Favourable terms :
Favourable premium rates
for female lives

• Tax benefits : As per Sec

88 and Sec 10(10D) of the
Income Tax Act.
Benefits Benefits

• On death occurring within the term. On Survival

1. Full SA plus GA & vested bonuses are
payable • Policy value is payable.
• On survival
1. Full SA plus GA plus vested bonuses On Death
during the full term
2. Additionally, one gets a free life cover • Full Sum Assured along
for 5 years, from date of maturity, for with policy value is
50% of original sum assured. No payable.
Evidence of health is required and no
premium need to be paid for this. Riders

Riders available Riders are additional benefits that

can be added to the policy by
• Accident & disability benefit paying additional premium.
a. Waiver of future premiums

42
 b. 10% of SA each year for 10 years.
c. Additional SA, if death is due to an
accident while travelling as a
passenger in train or bus
• Critical illness benefit
9 medical conditions are covered. On
admission of a claim, full SA + GA + VB is
paid and policy contract terminates with all
riders ceased. Claim under this rider is not
admissible during first six months of the
policy.
• Major Surgical Assistance
 43 surgical procedures are covered
1. Major Surgical Procedure -
50% of SA
2. Intermediate Surgical
Procedure - 30% of SA
3. Minor Surgical Procedure -
20% of SA
Claims can be made for more than one
surgical procedure, subject to a
maximum of 50% of SA, claim under
this rider is not allowed during first 6
months of the policy
 Level Term Insurance
Additional cover in the event of death
happening within the term.
• When one avails extend life cover, no riders
are available.
43
• Accidental Death and
Dismemberment Rider :
This rider pays for an
additional amount
equivalent to the amount
specified under this rider in
the event of death or
permanent total
disablement due to an
accident. Permanent total
disablement includes loss
of more than one limb or
sight in both eyes or loss of
one limb and sight in one
eye. This apart, 50% of the
amount specified under
this rider is paid in case of
loss of one limb or sight in
one eye
• Critical Illness Rider :
Amount specified under
this rider is paid in the
event of the life assured
contracting to any of the
four critical illnesses
specified under this rider.
Critical illnesses covered
under this rider are Heart
Attack, Stroke, Cancer and
Surgery to Coronary
Arteries. However the rider
amount is paid provided
the life insured survives the
specified illness for a
period of at least 30 days
from the date of diagnosis
• Term Rider : By the virtue
of this rider an additional
amount equivalent to the
amount specified under
this rider is paid on death
within the term
• Waiver of Premium
 Rider :This rider waives all
the future premiums under
the base policy and
attached riders on the
happening of the insured
event, prior to the premium
payer's 65th birthday.
However the policy will
remain active. Insured
events include some
illnesses or accident due to
which the life
insured/policy owner
becomes completely
disabled or; The policy
owner/life insured is
diagnosed to be suffering
from any of the specified
critical illnesses; The
policy owner's death, in
case of the life insured
being the child and the
policy owner being
parent/guardian. Premiums
for this rider are payable
throughout the benefit
period of the base policy or
rider but not beyond the
policy owner attaining age
65. For the benefits to be
payable under this rider
there will be a waiting
period of 26 weeks and 30
days for Total Permanent
Disability and Critical
illness respectively.
Other Conditions

• Minimum age 15
• Maximum age 60
• Maximum Maturity age 70
• Minimum SA Rs.20,000/-
• Minimum Term 10 years

44
 • Loans can be availed under the policy and
loan interest is chargeable.

ICICI Prudential Life Time (ICICI PRUDENTIAL FLEXI LIFE LINE -

Life) Birla Sun Life Whole
Life Plan
Objective Objective

• This policy is a long-term market linked total • This plan is suitable

protection plan. The plans offer protections for life to any one who
at the same time allows the policyholder to get wishes to ensure
market linked returns. It is a single product security to his loved
combining the benefits of both an investment ones and earn higher
product and insurance plan. This apart, the product returns on the hard
offers a lot of flexibility. earned income by
regular savings. This
will ensure that one's
legal heirs/
beneficiaries enjoy
the same life style
even on one's
demise.
Salient Features Salient Features

• Death benefit will be a multiple of premium paid. • Flexi Life Line is a

• Premium paid will be invested in the fund Whole Life plan.
chosen(Maximiser, Balancer or Protector fund)* • Duration of the plan
after deducting mortality charges and administrative is for entire life or till
expenses. 100 years of age.
• Policy holder has the option to vary the amount of • Payments: either as
insurance protection vis-à-vis investment while single payment,
maintaining the same premium. uniform annual
• The returns depend on the plan chosen- growth, payment, semi
balanced and income and one can switch from one annual or quarterly.
fund to another depending on the financial • Investment option:
priorities.Once in a year switching is done free of Part of the premium
cost. is invested through
• Benefits can be enhanced by adding Accident & an investment fund.
Disability Benefit, Major Surgical Assistance, One can select his

45
 Critical Illness benefits at a nominal extra premium. investment option
• Entry into the plan will be based on the Unit Value based on ones risk
applicable on the date of policy issue. The amount appetite. The insured
of premium towards death benefit decreases with has the flexibility to
the increase in the value of the units. chose between three
• One has the flexibility to increase the death benefit investment options
by 25% subject to a maximum of Rs.100,000, every viz: Protector,
third year upto 3 times, without any underwriting. Builder and
Death benefit can be increased beyond this limit Enhancer. The
with underwriting. policyholder is also
• Apart from the above the policy holder can increase given the option to
the death benefit at different stages of life such as change the
Marriage, birth of first child and birth of second investment option
child. This is irrespective of when the last increase during the currency
was done. of the policy.
• One can decrease the death benefit in the multiple of • Automatic Premium
Rs.100,000. However a minimum death benefit of Payment: Policy
Rs.100,000 has to be maintained. does not lapse due to
• Policy holder has the option to increase the non-payment of
investment by the way of top ups with a lump sum Premium. Plan
payment at any time deploys funds from
• If after at least 3 years premium payments are made earlier premium
and then one is unable to pay the subsequent payments. This is
premiums, the cover under the policy will continue based on certain
and the premiums towards the life cover and riders conditions.
will be debited from the unit fund. • Free look period:
Policyholder has
Unit value is calculated bi-weekly on a forward pricing option to review his
basis every Tuesday and Friday decision to have the
Unit value = policy for 15 days
Market/ Fair Value of the relevant Plan's Investments plus from the date of the
Current Assets less Current Liabilities and Provisions receipt of the policy
------------------------------------------------------------------------ document by the
Number of Units outstanding under the relevant Plan policyholder.
• Transparency in
Surrender Values:
On deciding to
*The returns depend on the plan chosen. terminate the
contract, the exact
Maximiser(Growth) Plan amount payable to
you as surrender
• If high growth is your priority this is the plan for value is indicated.
you. You can enjoy long-term capital appreciation • Favourable terms :
from a portfolio that is invested primarily in equity Favourable premium
and equity-related securities. rates for female lives

46
Protector(Income) Plan • Tax benefits : As
per Sec 88 and Sec
• If on the other hand your priority is steady returns, 10(10D) of the
you can opt for the Income Plan. Here you can Income Tax Act.
accumulate a steady income at a low risk across a
medium to long term period.

Balancer(Balanced) Plan

• If you prefer a balance of growth and steady returns

choose our Balanced Plan. This would ensure that
your portfolio is invested in equity and equity-
linked securities as well as in fixed income
securities.
Benefits Benefits

On Death On Survival

• In the event of death of the policyholder, • Surrender value in

beneficiaries will be paid the higher of death benefit the maturity year +
and value of the units. the balance in the
Additional Holding
On survival Account(Non-
Guaranteed) will be
• There is no maturity period and policy holder has paid.
the option to withdraw units under the plan at
anytime after the policy has been in force for three On Death
years.
• The Death
Riders benefit(Face amount
+accumulated value
Accident & disability benefit in Holding account)
+ the balance in the
• 10% of SA each year for 10 years in case of Additional Holding
permanent total disability Account(Non-
• Additional SA, if death is due to an accident while Guaranteed).
travelling as a passenger in train or bus
Riders
Critical illness benefit

• 9 medical conditions are covered. On admission of a

claim, sum assured under the rider is paid and the Riders are additional
rider comes to an end. Claim under this rider is not benefits that can be added to
admissible during first six months of the policy. the policy by paying

47
Major Surgical Assistance additional premium.

• 43 surgical procedures are covered

1. Major Surgical Procedure - 50% of SA
2. Intermediate Surgical Procedure - 30% of • Accidental Death
SA and Dismemberment
3. Minor Surgical Procedure - 20% of SA Rider : This rider
pays for an
• Claims can be made for more than one surgical additional amount
procedure, subject to a maximum of 50% of SA, equivalent to the
claim under this rider is not allowed during first 6 amount specified
months of the policy under this rider in the
event of death or
permanent total
disablement due to
an accident.
Permanent total
disablement includes
loss of more than one
limb or sight in both
eyes or loss of one
limb and sight in one
eye. This apart, 50%
of the amount
specified under this
rider is paid in case
of loss of one limb or
sight in one eye
• Critical Illness
Rider : Amount
specified under this
rider is paid in the
event of the life
assured contracting
to any of the four
critical illnesses
specified under this
rider. Critical
illnesses covered
under this rider are
Heart Attack, Stroke,
Cancer and Surgery
to Coronary Arteries.
However the rider
amount is paid

48
 provided the life
insured survives the
specified illness for a
period of at least 30
days from the date of
diagnosis
• Term Rider : By the
virtue of this rider an
additional amount
equivalent to the
amount specified
under this rider is
paid on death within
the term

• Waiver of Premium
Rider :This rider
waives all the future
premiums under the
base policy and
attached riders on the
happening of the
insured event, prior
to the premium
payer's 65th birthday.
However the policy
will remain active.
Insured events
include some
illnesses or accident
due to which the life
insured/policy owner
becomes completely
disabled or; The
policy owner/life
insured is diagnosed
to be suffering from
any of the specified
critical illnesses; The
policy owner's death,
in case of the life
insured being the
child and the policy
owner being
parent/guardian.
Premiums for this

49
 rider are payable
throughout the
benefit period of the
base policy or rider
but not beyond the
policy owner
attaining age 65. For
the benefits to be
payable under this
rider there will be a
waiting period of 26
weeks and 30 days
for Total Permanent
Disability and
Critical illness
respectively.
Other Conditions

• Minimum age at entry: 0 years

• Maximum age at entry: 60 years (completed years)
• Minimum premium : Rs.18,000 per annum
• Minimum sum assured under riders : Rs.100,000
• Maximum Sum assured under riders : Rs.10,00,000

Following are the charges applicable under the policy:

• The initial administrative charges in the 1st year

would be 20% of the premium, for premium
amounts less than Rs.50,000/-. For premiums equal
to or more than Rs.50,000/-, it is 18% of the
premium.
• Other Charges: Annual administrative charges of
1.00% p.a. of net assets for protector (Income) and
1.25% p.a. for Maximiser (Growth) and Balancer
(Balanced) options. Annual investment charge of
0.5% p.a. of the net assets for Protector and 1% p.a.
of the net assets for Maximiser and Balanced.
• Mortality charge towards death benefit
• Initial charges of 1% on Top-ups
• One free switch every year after which a switching
fee of 1% of the switching amount will be levied.
Any unutilized free switch cannot be carried
forward.

50
 Note: In case the unit value is inadequate to cover
charges, the policy will terminate.

ICICI Prudential CashBak (ICICI Flexi Cash Flow

PRUDENTIAL Life)
Birla Sun Life Money Back
Plan
Objective Objective

• Policy is suitable for people who wish to have • In addition to securing

combined benefit of savings and liquidity all
the while having an insurance protections.
Policy provides for the periodic financial
requirements of an individual with the added
benefit of insurance protection.
Salient Features
protection by way of life
insurance, those who wish
be to use their savings at
regular intervals can have
this flexi cash flow.
Salient Features

• It a money back plan where in the lumpsum • Flexi cash flow is a Money
amounts are payable to life assured at regular back plan.
periodic intervals. • Duration of the plan: The
• Premiums are payable through out the term of proposer has the option to
the policy or till earlier death choose the duration of the
• Guaranteed additions and bonus are payable plan depending on his
under the policy perceived financial needs.
• In case of death of the life assured within the The duration can be 10, 15,
term, the total sum insured along with 20 or 25 years.
guaranteed additions and bonus are paid to the • Payments: either as single
nominee, irrespective of earlier survival payment, uniform annual
benefits payment, semi annual or
• Period of the policy can be 15 or 20 years. quarterly.
• Policy holder can opt for the rider at the time • Investment option: Part of
of taking the policy at a marginally additional the premium is invested
premium. Riders available are through an investment
a. Accident & Disability benefit fund. One can select his
b. Critical Illness Benefit investment option based on
c. Major Surgical Assistance and ones risk appetite. The
insured has the flexibility
d. Level Term Insurance to chose between three
investment options viz:
Protector, Builder and
Enhancer. The

51
 policyholder is also given
the option to change the
investment option during
the currency of the policy.
• Automatic Premium
Payment: Policy does not
lapse due to non-payment
of Premium. Plan deploys
funds from earlier
premium payments. This is
based on certain
conditions.
• Free look period:
Policyholder has option to
review his decision to have
the policy for 15 days from
the date of the receipt of
the policy document by the
policyholder.
• Transparency in Surrender
Values: On deciding to
terminate the contract, the
exact amount payable to
you as surrender value is
indicated.
• Favourable terms :
Favourable premium rates
for female lives

• Tax benefits : As per Sec

88 and Sec 10(10D) of the
Income Tax Act.
Benefits Benefits

On Survival

On Survival • Payment of fixed

Policy Survival Payment as a % of percentage of amount of
At the end of
Term basic sum assured the face value at specified
15 years 3 10% interval.
6 15% On Death
9 20%
12 25% • Sum Assured in addition to

52
 50% plus guaranteed
15(Maturity) additions plus vested the policy value.
bonuses.
Riders
4 10% of sum assured
8 15% Riders are additional benefits that
12 20% can be added to the policy by
20 years 16 25% paying additional premium.

50% plus guaranteed

20 (Maturity) additions plus vested
bonuses. • Accidental Death and
Dismemberment Rider :
This rider pays for an
On Death: additional amount
equivalent to the amount
• In case of death of the life assured within the specified under this rider in
term, the total sum insured along with the event of death or
guaranteed additions and bonus is paid to the permanent total
nominee, irrespective of earlier survival disablement due to an
benefits accident. Permanent total
disablement includes loss
Riders available of more than one limb or
sight in both eyes or loss of
• Accident & disability benefit one limb and sight in one
a. Waiver of future premiums eye. This apart, 50% of the
b. 10% of SA each year for 10 years. amount specified under
c. Additional SA, if death is due to an this rider is paid in case of
accident while travelling as a loss of one limb or sight in
passenger in train or bus one eye
• Critical illness benefit • Critical Illness Rider :
Amount specified under
9 medical conditions are covered. On this rider is paid in the
admission of a claim, full SA + GA + VB is event of the life assured
paid and policy contract terminates with all contracting to any of the
riders ceased. Claim under this rider is not four critical illnesses
admissible during first six months of the specified under this rider.
policy. Critical illnesses covered
under this rider are Heart
• Major Surgical Assistance Attack, Stroke, Cancer and
Surgery to Coronary
 43 surgical procedures are covered Arteries. However the rider
1. Major Surgical Procedure - amount is paid provided
50% of SA the life insured survives the
2. Intermediate Surgical specified illness for a
Procedure - 30% of SA period of at least 30 days

53
 3. Minor Surgical Procedure -
20% of SA
Claims can be made for more than one
surgical procedure, subject to a
maximum of 50% of SA, claim under
this rider is not allowed during first 6
months of the policy
 Level Term Insurance
Additional cover in the event of death
happening within the term.
54
from the date of diagnosis
• Term Rider : By the virtue
of this rider an additional
amount equivalent to the
amount specified under
this rider is paid on death
within the term
• Waiver of Premium
Rider :This rider waives all
the future premiums under
the base policy and
attached riders on the
happening of the insured
event, prior to the premium
payer's 65th birthday.
However the policy will
remain active. Insured
events include some
illnesses or accident due to
which the life
insured/policy owner
becomes completely
disabled or; The policy
owner/life insured is
diagnosed to be suffering
from any of the specified
critical illnesses; The
policy owner's death, in
case of the life insured
being the child and the
policy owner being
parent/guardian. Premiums
for this rider are payable
throughout the benefit
period of the base policy or
rider but not beyond the
policy owner attaining age
65. For the benefits to be
payable under this rider
there will be a waiting
period of 26 weeks and 30
days for Total Permanent
Disability and Critical
illness respectively.
Other Conditions

• Minimum amount of Sum Insured - Rs.

50,000
• Minimum age at entry 16 years

• Maximum age at entry 55 years

55
ICICI Prudential Vs. Aviva Life Insurance
ICICI Prudential Smart Young Achievers - Aviva Life
Kid
Objective Objective
• It is a plan that
provides guaranteed
educational benefits
to the child along
with life insurance
cover and hence is
suitable for parents
(between 20-60
years) with children
in the age group of 0-
12 years.
Salient Features Salient Features
• It is a money back
plan where in sum
assured is paid at
regular intervals. The
policy can be so
designed that it
provides money at
important milestones
of the child's
education like
secondary education,
higher secondary, and
graduation and post
graduation.
• On death of the life
assured with in the
term, full sum assured
is paid immediately
and all future
premiums are waived.
Death benefits are in
additions to the
benefits that child is
likely to get in the
• The plan is suitable for people who wish to provide
for their children's higher education/marriage.
• Young Achiever is a regular premium fixed term,
protection cum savings plan for your child.
• The policy can be purchased on the life of any one
of the parents with the child as the nominee. i.e. the
parent is the insured.
• Premiums can be paid in yearly, half-yearly,
quarterly or monthly (direct debit or ECS only)
intervals.
• The premiums (including additional single
premiums) paid are eligible for tax rebate under
Section 88 of the Income Tax Act, 1961 only up to
20% of the sum insured in a financial year. The
policy proceeds are tax free under Section 10(10D)
of the Income Tax Act, 1961 as long as the total
premium paid in any of the policy years does not
exceed 20% of the capital sum insured.
• The policy offers two investment fund options: a
With Profits Fund and a Unit Linked Fund.
• The flexibility to make lump sum investments
through additional single premiums, apart from the
regular premiums, as often as required over the
duration of the policy is also available. The
minimum additional single premium is Rs. 10,000
presently but may vary subject to reviews by the
56
 normal course of the Company. The fund is maintained separately and
policy i.e., child will can be withdrawn and surrendered at any time
be eligible for subject to surrender penalty, if any.
amounts at important • The company gives the option to maintain the real
milestones of value of the policy by way of indexation.
education, Indexation protects the purchasing power of the
irrespective of death maturity value or death benefit. If the policyholder
of the life assured. opts for indexation, his regular premium and the
• One has the flexibility sum insured will be increased by an inflation which
to choose the exact is determined by the company at the starting of the
age of the child each calendar year.
(between 22 to 25 • The sum insured is determined, for the given
years), at which the amount of regular annual premium, by selecting
policy is to mature. one of the cover levels and multiplying it by the
The term of the annual premium:
policy is determined • Higher Cover Level i.e. higher protection
by Age of the child and lower savings, or
on maturity - Age of • Lower Cover Level i.e. higher savings and
the child on the date lower protection
of proposal.
The following table highlights the cover levels for
• Policyholder has the different policy terms:
option to avail
additional benefits
such as Income
benefit rider, Policy
Accident Disability Term 8 9 10 11 12 13 14 15 16 17 18 19 20 21
benefit rider by years
paying additional Low
premium Cover 6 6 6 8 8 8 8 8 10 10 10 10 10 10
Level*
High
Cover 8 9 10 11 12 13 14 15 16 17 18 19 20 21
Level*

*Cover level means a multiple of premium to

determine the sum insured.

Hence for a policy of 10 years and a premium of

Rs. 20,000 per annum, you can opt for a sum
insured of Rs. 120,000 or Rs.200,000.
Benefits Benefits

57
 On Survival On Survival

• Lump sum amounts • On maturity, the policy value is payable. Policy

are payable at regular value is the total number of initial and
interval to meet the accumulation units held in the unit account
child's educational multiplied by the selling price of the units.
expenses. • In case the policyholder does not wish to take the
policy value on maturity, he has the option of
On Death during continue the unit account for a maximum of five
the term years after the maturity date. The monthly
administration charge will be reduced to 60% of
• Full sum assured is those charged on policies before maturity
paid and future • The policyholder has the option to make partial
premiums are waived. withdrawals during the last four years of the policy
Death benefits are in (i.e. from four years before the maturity date),
additions to the subject to minimum policy value after the
benefits that child is withdrawal as prescribed by the company (currently
likely to get in the Rs. 20,000). The limits of partial withdrawals
normal course of the prescribed by the company are:
policy i.e., child will
be eligible for
amounts at important
milestones of 4th policy year
education, before the Up to 25% of the sum insured
irrespective of death maturity
of the life assured. 3rd policy year Up to 50% of the sum insured
before the (including amounts withdrawn
Riders maturity earlier).
2nd policy year Up to 75% of the sum insured
• Income Benefit
before the (including amounts withdrawn
Rider
maturity earlier).
Income Benefit Rider Up to 100% of the sum insured
In the year of
pays 10% of sum (including amounts withdrawn
maturity
assured annually to earlier)
the child on each
policy anniversary On Death during the term
following an
unfortunate demise, • Two options are available:
till maturity of the i. Sum insured plus the policy value is paid to
Rider. the nominee and the policy is terminated.
ii. The units can be held till the maturity date
• Accident and and these continue to earn investment
Disability Benefit returns. In this case, units are purchased for
Rider an amount equal to the sum insured. These

58
 are then added to the policy value and
This provides cover returns accrue on this higher sum.
against an unfortunate
death due to an • If the nominee is a minor, the beneficiary or the
accident. If the appointee has the option of making partial
individual gets withdrawals as per the terms and conditions of the
permanently disabled policy (subject to a minimum policy value).
due to an accident, it
will also provide a
regular income for the
next 10 years or till
maturity of the
policy. All future
premiums, in respect
of Sum Assured
under the basic plan
equal to accident
cover, will be waived.
Other Conditions Other Conditions

• Minimum age of the • The minimum age of the insured (parent): 21 years
Parent : 20 years. • The maximum age of the insured (parent): 55 years
• Maximum age of the • The minimum age of the Child: 0 years
Parent : 60 years. • The maximum age of the Child: 17 years
• Minimum premium: • The maximum age of the insured (parent) at
Rs. 8,000 per year. maturity of the policy: 65 years
• Minimum Sum • The minimum age of the child at maturity: 21 years
Assured:Rs.1,00,000. or 25 years).
• Maximum Sum • Minimum sum assured: Rs. 36,000 (subject to a
assured: minimum annual premium of Rs. 6,000)
Rs.30,00,000. • Maximum sum insured: Rs. 10,000,000.
• Maximum limit under • The minimum policy term is 8 years. However,
Income Benefit policy term depends on the present age of the child.
Rider: Rs.10,00,000. It is determined as follows.
• If the child's age is between 0-13 years on
• Maximum limit under last birthday, the policy term will be: 21
Accident and minus age of child at entry.
Disability Benefit
Rider: Rs.10,00,000. • If the child age is between 14-17 years on
last birthday, policy term will be: 25 minus
age of child at entry.

Save 'n' Protect (ICICI PRUDENTIAL Life) LifeSaver - Aviva Life

59
Objective
• It is an ideal plan for persons who wish to
accumulate savings on a regular basis, while
having insurance protection.
Salient Features
• It is basically an Endowment Assurance Plan
with deferred participation in profits and
extended life cover.
• It is a fixed term plan - combination of both
savings & life cover.
60
Objective
• LifeSaver is a flexible
endowment plan suitable for
people who wish to provide
insurance protection for their
family during the term of the
plan and at the same time
wish to plan for specific long-
term savings needs such as
childrens' education and
wedding expenses.
Salient Features
• LifeSaver is a unitised fixed
term, protection cum savings
endowment plan.
• Policy can be purchased on a
single life or joint life (spouse
only) on first death basis.
• The premiums are payable for
the whole term of the policy.
One can pay the premiums in
yearly, half-yearly, quarterly
or at monthly (direct debit
only) intervals.
• Premiums paid under the
policy are used to purchase
units. Policyholder can
purchase units of either a
With Profits Fund or a Unit
Linked Fund.
• Policyholder is provided with
various investment options
wherein he can invest 100%
of investible funds either in a
With Profits Fund or a Unit
Linked Fund or he has the
option to invest 50% into a
With Profits fund and 50%
into a Unit Linked fund.
• The With Profits Fund
provides a guarantee that the
unit price will never fall. The
unit value of this fund is
 increased by crediting
bonuses at regular intervals. A
final bonus, if any, may also
be payable at maturity, death,
or at the time of full or partial
surrender.
• The unit value in the Unit
Linked Fund can fluctuate
depending upon the
performance of the assets
held.
• The policy offers flexibility of
making lump sum
investments through
additional single premiums,
apart from the regular
premiums. This will increase
the savings value (investment)
of the policy and do not
change the risk cover. This
fund is maintained separately
and can be withdrawn or
surrendered subject to
surrender penalty.
• Policyholder can increase the
sum assured and rider benefits
under the policy to protect the
real value of the policy and
guard against the inflation
without any underwriting.
However this is done based
on the company determined
indexation. This can be done
can upto three years prior to
expiry of the policy term or at
the 27th policy anniversary,
whichever is earlier.
• If policyholder is unable to
pay premiums, he can opt to
cash-in policy or make it
paid-up, provided at least two
years premium have been
paid and the policy has
accumulated sufficient policy
value.
• In case of paid-up policy, one

61
 can reduce the level of sum
insured to zero or keep the
sum insured at the same level.
Also, rider coverage will
continue provided that the
sum insured under the base
plan is not reduced to zero. A
lapsed or paid-up policy can
be reinstated to premium
paying status within six
months by paying all the due
premiums, subject to
prevailing underwriting
requirements.
• Full withdrawal of the policy
is permitted after two policy
years and partial withdrawal
is permitted after three policy
years. Policyholder will get
back the number of units
surrendered multiplied by
their selling price, less early
redemption charges, if any
• The minimum amount one
can withdraw at any one time
in case of partial cash-in of
units is Rs. 5000/-, increasing
from time to time (as
stipulated by the Company).
The minimum balance (value
of units) in the account at any
time should not be less than
Rs. 10,000.
• The units held in respect of
lump sum investments
through additional single
premiums can be cashed-in at
any time, subject to surrender
charges, if any.
• Benefits under the policy can
be enhanced by opting for
rider. Riders available under
the policy are :
a. Accidental Death &
Dismemberment
(AD&D)

62
 b. Critical Illness &
Permanent Total
Disability (CI&PTD)
• Charges applicable under the
policy are made by the way of
deductions. Charges
applicable are:
a. Initial management
charge of 5% per
annum on the initial
units (units purchased
with the first two
years' regular
premium or two years'
incremental regular
premium) of the
policy.
b. An administration
charge of Rs.55 per
month (this shall be
adjusted annually for
inflation).
c. A regular management
charge of 1% per
annum on both initial
and accumulation
units.
d. Risk charges based on
age, sex, level of life
cover and the rider(s)
opted.
• Premiums paid are eligible for
a tax rebate as per Section 88
of the Income Tax Act. Policy
proceeds are tax free under
Section 10 (10D) of the
Income Tax Act. Any
investment return earned on
the policy value will generally
be subject to tax at a lower
effective tax rate.

• A free temporary accidental

death cover equal to the
proposed sum insured of all
the proposals under

63

Benefits Benefits
• On death occurring within the term.
1. Full SA plus GA & vested bonuses are
payable
• On survival
1. Full SA plus GA plus vested bonuses
during the full term
2. Additionally, one gets a free life cover
for 5 years, from date of maturity, for
50% of original sum assured. No
Evidence of health is required and no
premium need to be paid for this.
Riders available
• Accident & disability benefit
a. Waiver of future premiums
b. 10% of SA each year for 10 years.
c. Additional SA, if death is due to an
accident while travelling as a
passenger in train or bus
• Critical illness benefit
9 medical conditions are covered. On
admission of a claim, full SA + GA + VB is
paid and policy contract terminates with all
riders ceased. Claim under this rider is not
admissible during first six months of the
policy.
• Major Surgical Assistance
 43 surgical procedures are covered
1. Major Surgical Procedure -
50% of SA
2. Intermediate Surgical
Procedure - 30% of SA
64
consideration or Rs. 5 lakhs,
whichever is lower, is
provided from the date of the
first premium payment to the
issuance of policy subject to a
maximum of three months.
On Maturity
• On survival to maturity Policy
value is payable. Instead of
withdrawing the amount
policyholder can hold the
units after the expiry of the
policy term and continue to
get benefits from investment
returns from the fund.
On death
• Lump sum equivalent to the
higher of the value of units in
respect of regular premiums
or the sum insured is paid.
This apart, the value of units
in respect of lump sum
investments through
additional single premiums
will be paid.
• A final bonus, if any, may
also be payable in case of a
With Profits policy.
• In the case of joint life
insurance, death benefit is
paid on the first death only
and thereafter the policy will
terminate.
• If AD&D has been selected
and death occurs from an
accident, an additional sum
equal to the sum insured is
paid.
 3. Minor Surgical Procedure -
20% of SA Riders

Claims can be made for more than one Riders can be attached to the base
surgical procedure, subject to a coverage at inception only and rider
maximum of 50% of SA, claim under cover expires at 60 years of age.
this rider is not allowed during first 6
months of the policy

 Level Term Insurance Accidental Death &

Dismemberment (AD&D)
Additional cover in the event of death
happening within the term. • This rider pays an additional
100% sum assured or 50%
• When one avails extend life cover, no riders sum assured in case
are available. policyholder or his/her spouse
(if insured jointly) meets with
an accident leading to
complete dismemberment or
partial dismemberment
respectively. Maximum
amount payable is limited to
Rs.50 lacs (subject to
indexation increases).
• The benefit under this rider is
paid if death or
dismemberment happens
within 90 days of the date of
accident.
• If the total benefit payment
since inception has not
reached 100% of the sum
insured, the rider coverage
will remain in force for the
balance amount. The risk
cover under the base policy
will remain unaffected.

Critical Illness & Permanent Total

Disability (CI&PTD)

• In the event of policyholder or

his/his spouse (if insured
jointly), contract any of the
covered critical illnesses or
become permanently and

65

Other Conditions
• Minimum age 15
• Maximum age 60
• Maximum Maturity age 70
• Minimum SA Rs.20,000/-
• Minimum Term 10 years
• Loans can be availed under the policy and
loan interest is chargeable.
66
totally disabled, a lump sum
equivalent to the higher of the
value of units in respect of
regular premium or the sum
insured (subject to a
maximum of Rs. 20 lacs), is
paid and policy comes to an
end.
• The value of units in respect
of additional single premium
will be paid in addition to the
above benefit without any
deductions.
• Maximum benefit under this
rider is subject to Rs. 20 lacs
(subject to indexation
increases).
• A final bonus, if any, may
also be payable in case of a
With Profits policy.
• The illnesses covered are:
Heart attack, Cancer, Stroke,
Major organ transplant,
Kidney failure, Coronary
artery bypass surgery,
Blindness, Deafness, Benign
brain tumor, Terminal iIlness,
permanent total disability.
Other Conditions
• Minimum entry Age: 18 years
• Maximum entry Age 65 years
• Maximum Maturity Age 70
years
• Maximum entry age for rider
cover: 55 years.
• Minimum term : 5 years
 ICICI Prudential Life Guard
Objective
• Maximum thrust is on family
protection. This policy is suitable
for people who wish to provide
large sums for the benefit of their
family at an economical cost.
Salient Features
• Its is a pure risk or term insurance
plan.
• The policy is offered in three
variants:
1. ICICI Prudential LifeGuard
Level Term Assurance
2. ICICI Prudential LifeGuard
Level Term Assurance with
Return of Premium
3. ICICI Prudential LifeGuard
Single Premium
• Under each of the above variants,
full sum assured is payable on death.
• On survival to maturity nothing is
payable except under ICICI
Prudential LifeGuard Level Term
Assurance with Return of Premium,
where in premiums paid are returned
without any interest.
• Riders enhance the benefits under
the policy, which can be availed by
paying marginal additional
premium. One can avail Accident
and Disability rider under all the
above variants except ICICI
Prudential LifeGuard Single
Premium
• All the premiums paid under the
policy are eligible for tax rebate
under section 88 of IT Act.
67
Life Shield - Aviva Life
Objective
• Life Shield is an ideal life insurance
plan suitable for people who want to
have insurance protection for their
family or business, for a limited
period, at low cost.
Salient Features
• Life Shield is a low cost life
insurance plan, which guarantees to
pay a lump sum amount in case of
death during the term of the policy.
• Policy holder has the option to
increase the sum assured (only upto
40 years of age) by 50% (subject to
maximum increase of Rs.1,000,000)
during the term of the policy,
without submitting any evidence of
good health, if:
• He/she decides to increase
the sum insured within three
months of his/her marriage.
• He/she decides to increase
the sum insured within three
months of the birth of his/her
child.
• This option to increase the
sum insured is available only
if the policy has been
accepted on standard rates,
outstanding term of the
policy is at least 5 years and
the policy is in force for full
sum insured.
• Premiums can be paid in yearly,
half-yearly, quarterly or at monthly
intervals.
• Premiums paid are eligible for tax
rebate under Section 88 of the
Income Tax Act.
• Preferred rates are available for

Benefits
On Survival
• On survival to maturity nothing is
payable except under ICICI
Prudential LifeGuard Level Term
Assurance with Return of Premium,
where in premiums paid are returned
without any interest.
On Death
68
customers opting for higher sum
insured and to PensionPlus
policyholders of Aviva.
• A discount of Rs. 0.50 per
thousand of sum insured on
standard premium rates if
he/she opts for a sum insured
of Rs. 1,000,000 and above.
• An additional discount of
7.5% on the premium rate
stated in the Premium Rate
Table of Life Shield,
provided he/she is a Life
Shield policyholder and it has
been accepted on standard
rates.
• If the premium is not paid within the
grace period, then the policy will
lapse without any value. However, a
lapsed policy can be reinstated
within two years from the date of
first unpaid premium subject to
underwriting requirements of the
company and payment of all the
unpaid premiums with interest.
• Policy offers a free look period of 15
days, were in policy holder can
cancel the policy within 15 days
from the date of receipt of the policy
document and premiums are
refunded after deducting stamp duty
and medical expenses.
Benefits
On Death:
• Sum assured is paid on event of
death during the term of the policy.
On survival
• This is a pure term insurance plan
and nothing is paid on survival to
maturity.
 • Under each of the above variants,
full sum assured is payable on death.
Other Conditions Other Conditions

• Age at entry: 18 years • Minimum age: 18 years

• Maximum age at entry: 50 years. • Maximum age: 55 years
• Maximum age at exit : 65 • Maximum age at expiry: 65 years.
• Minimum term: 5 years • The minimum policy term 5 years
• Maximum term : 25 years( For • Maximum policy term 40 years.
ICICI Prudential LifeGuard Level • Minimum annual premium: Rs.2,000
Term Assurance & ICICI Prudential
LifeGuard Level Term Assurance • Minimum sum insured: Rs.500
with Return of Premium)
• Maximum term : 15 years(For ICICI
Prudential LifeGuard Single
Premium)
• Minimum premium - Rs. 2400 per
annum. ( For ICICI Prudential
LifeGuard Level Term Assurance &
ICICI Prudential LifeGuard Level
Term Assurance with Return of
Premium)

• Minimum Sum assured : Rs.

2,00,000(For ICICI Prudential
LifeGuard Single Premium)

INSURERS FIND IT TOUGH TO GET NEW BUSINESS

The falling interest rate regime has pulled down the overall new business premium of the
Indian life insurance industry by a significant 18 per cent over the previous fiscal, despite
the tremendous growth recorded by the private sector life insurance players in adding
new business to their portfolio during the fiscal ended March 2004.

This trend is due to slow withdrawal of policies with guaranteed returns by the insurers
while responding to the interest rates moving southwards.

69
Against a total premium underwritten of Rs 15,139.93 crore during 2001-02, the Indian
life insurance industry recorded a low premium of Rs 12,324.83 crore for the fiscal ended
March 31, 2004.

Announcing the analysis of new business underwritten by life insurers for the year 2003-
04, the Insurance Regulatory and Development Authority (IRDA) has pointed out that the
individual business of Life Insurance Corporation of India (LIC) was impacted the most
with a decline of around 24 per cent as against the industry.

Despite this, the public sector life insurance major continued to hold sway. Of course, the
private sector made steady inroads during the fiscal under review, which was more than
expected given the experience in other markets, IRDA has pointed out.

While LIC led the chart in terms of market share in new business with a 92 per cent share
in entire industry, down from 98 per cent in the previous fiscal, the private sector
improved its overall market share to eight per cent from two per cent in the previous
fiscal.

The analysis of the new business figures furnished by the private life insurers reveals that
the overall business captured by the 12 players rose to Rs 981.24 crore during 2003-04
from Rs 296.61 crore in the previous fiscal, a growth of 231 per cent.

It was ICICI Prudentialdential that topped the private sector new business market
with a share of 38 per cent. While Birla Sun Life followed it with a market share of 15
per cent, HDFC Standard garnered a share of 14 per cent, Max New York 8 per cent, SBI
Life 7 per cent, Tata AIG 6 per cent, Allianz Bajaj 5 per cent, Om Kotak 3 per cent, ING
Vysya 2 per cent and Met Life and Aviva 1 per cent each. AMP Sanmar registered no
market share.

In terms of total market, the share of ICICI Prudentialdential stood at nearly three
per cent, followed by Birla Sun Life and HDFC Standard at 1.21 per cent and 1.08 per
cent of the premium underwritten.

70
In terms of number of policies, while ICICI Prudentialdential issued around 2.45-
lakh policies, while HDFC Standard and Allianz Bajaj followed with 1.25-lakh and 1.16-
lakh policies, respectively.

In terms of number of policies underwritten in rural sector, ICICI Prudentialdential

led the chart with 29,376 policies.

71
 MARKET SHARE OF ICICI PRUDENTIAL VIS-A-VIS OTHER PRIVATE PLAYERS
(2003-04)

40
ICICI PRU
35 BIRLA SUNLIFE
30 HDFC STANDARS
25 MAX NEW YORK
SBI LIFE
20
TATA AIG
15 ALLIANZ BAJAJ
10 OM KOTAK
5 ING VYSYA
MET LIFE
0
2003-04 AVIVA

INSURANCE COMPANY MARKET SHARE (%)

ICICI PRUDENTIAL 38
HDFC 14
MAX NEW YORK 8
SBI LIFE 7
TATA AIG 6
ALLIANZ BAJAJ 5
OM KOTAK 3
ING VYSYA 2
MET LIFE 1
AVIVA 1

72
ICICI PRUDENTIAL WITH OTHER PRIVATE PLAYERS
INDIVIDUALLY

ICICI PRUDENTIAL VS HDFC

40

30
ICICI PRU
20
HDFC
10

ICICI PRU VS BIRLA SUNLIFE

28%

ICICI PRU
BIRLA SUNLIFE

72%

73
 ICICI PRUDENTIAL VS MAX NEWYORK

17%

ICICI PRU
MAX NEWYORK

83%

ICICI PRU VS SBI LIFE

40 ICICI PRU
30 SBI LIFE
SBI LIFE
20
10 ICICI PRU
0

74
 ICICI PRU VS TATA AIG
14%

ICICI PRU
TATA AIG

86%

ICICI PRU VS ALLIANZ BAJAJ

40

30

ICICI PRU
20
ALLIANZ BAJAJ

10

75
 ICICI PRU VS OM KOTAK

7%

ICICI PRU
OM KOTAK

93%

ICICI PRU VS ING VYSYA

40
35
30
25
ICICI PRU
20
ING VYSYA
15
10
5
0

76
 ICICI PRU VS METLIFE

97% 3% 3% ICICI PRU

MET LIFE

ICICI PRU VS AVIVA

40

30

ICICI PRU
20
AVIVA

10

77
FINDINGS

1. ICICI PRUDENTIAL’s ULIPs are more then beneficial in terms of returns as

they are managing people’s funds in four different ways. So in this way people
get enough choice for allocation of funds , so they can invest according to their
own requirement keeping their money in secured and safe manner.
2. Unit Linked Insurance plan has been attached to all categories of insurance like
for children, for retirement, for adults as well as plans for whole life. So now we
can say that innovation has been taken place which is beneficial both for the
company as well as for the individuals.
3. Through discussion which has taken place in exploratory research with other
companies hierarchy level, this analysis gave fruitful response for the comparison
of different category of plans of my company as well as other companies to know
how ICICI PRUDENTIAL is doing good in the market.

78
 CONCLUSION
ICICI Prudentialdential Life Insurance has crossed yet another landmark by
emerging as the first private life player to underwrite a total sum assured of Rs
20,000 crore. This achievement is the latest testament of ICICI Prudentialdential’s
tremendous growth and position as the leading private life insurer in the country.

ICICI Prudentialdential had witnessed yet another period of triple-digit growth

with its new business premium income growing to Rs 242 crore, an increase of 244
per cent over the corresponding period last year (Q1 ’04). Over 100,000 new policies
were added in that same period. The company’s retail market share in the April-June
2004 quarter stood at 35 per cent amongst all private companies and 6 per cent of the
total market.

The company also witnessed a huge growth in its group business, adding Rs 30 crore
through group gratuity, superannuation and term policies. The company’s combined
market share stands at 34 per cent amongst private players, says a company release.

Ramping up distribution - through advisors, bank relationships, corporate agents and

brokers - has been integral to ICICI Prudentialdential’s success. Over the past year the
company has doubled its branch network to 78 branches across 62 locations.

Thus, it is very much clear that ICICI Prudential has emerged as one of the leading
players in the private life insurance sector as it topped the private sector new
business market with a share of 38 per cent.

In terms of total market, the share of ICICI Prudentialdential stood at nearly three
per cent. In terms of number of policies, while ICICI Prudentialdential issued
around 2.45-lakh policies.

In terms of number of policies underwritten in rural sector, ICICI Prudentialdential

led the chart with 29,376 policies.

79
 SUGGESTIONS

Icici PRUDENTIAL is already having the top position in the private insurance market so
their is a need to maintain or to sustain in the market at the same level. But on the other
hand I would like to give following suggestions……

• Proper awareness of insurance should be done as the penetration of life insurance

in our country is very low.
• Till now only target for urban area has been fixed and over achieved but nothing
has been done for rural areas. So it should be taken care of.
• More plans of capital guarantee should be launched in the market for the customer
requirements.
• Instead of capital guarantee returns and bonuses should be increased to keep the
company at the same level or to surpass other companies.

80
LIST OF INDIVIDUALS

ICICI PRUDENTIAL…….

• ANUPMA VERMA (Training Dept.)

• PUJA JUNEJA (Training Dept)
• ASHISH SHARMA (Training Dept)
• GAURAV MAHAJAN (Assistant Sales Manger)
• AJAY KAUL (Sales Manger)
• SHEETL ARORA (Unit manager)
• RISHAB MALHOTRA (Sales manager)

HDFC STANDARD LIFE…..

• ARVIND SINGH (Sales Manager)

• VISWAS JUNEJA (Training Dept)
• VIVEK KHATTAR (Senior Sales Executive)
• PANKAJ SINGH (Business Development manger)
• RUPALI GARG (HR)

BIRLA SUNLIFE

• KIRTI SAXENA (HR Head)

• PARAG MALVIA (Training Dept.)
• AMIT SAXENA (Sales Head)
• VISHAL KOCHAR (Zonal Sales Manger)

AVIVA

• MANOJ MALIK (Training Manager)

• SACHIN AGGARAL (Sales Head)
• SACHIN SHRIVASTAV (Team Leader)

81
 • ABHI CHAWLA (Team Leader)

BIBLIOGRAPHY

 BUSINESS WORLD
 INDIA TODAY
 www.iciciPrudentiallife.com
 www.asianinsurancereview.com
 www.bimaonline.com
 www.businessline.com
 Discussion with various employees of ICICI Prudentialdential Life Insurance
Company

82