A Project Report On

SARAL SHIELD TERM PLAN IN LIFE INSURANCE"

Submitted in Partial Fulfilment for the Award of the Degree of MASTER OF COMMERCE (BANKING & INSURANCE) By KANTUVARI SUMALATHA H.T.No:12009C-2026 Under the guidance of Dr.G.Shashidar Rao

CHANDA KANTHAIAH MEMORIAL ARTS AND SCIENCE COLLEGE

(Affiliated to Kakatiya University, Govt. Aided, Accredited B++ by NAAC)

Deshaipet, Warangal - 506006

CERTIFICATE This is to certify that the project report entitled SARAL SHIELD IN TERM PLAN IN LIFE INSURANCE name is a record of bonafide work carried out by the student: KANTUVARI SUMALATHA bearing ROLL NO: 12009C-2026 during the academic year 2011-12 in partial fulfillment for the award of the degree Master of Commerce (Specialization with banking and insurance) by the Kakatiya University , Warangal. Project Guide .. Head Of the Department .. External Examiner Date:. WHOM SO EVER IT MAY CONCERN This is to certify that KANTUVARI SUMALATHA student of CKM College, Warangal bearing HT.NO.12009C-2026 has successfully completed his ll year M.com (Banking & Insurance) project titled SARAL SHIELD IN TERM PLAN IN LIFE INSURANCE IN SBI LIFE INSURANCE from our center UNIT MANAGER ACKNOWLEDGEMENT

It is privilege for us to have under takers the project SARAL SHIELD IN TERM PLAN IN LIFE INSURANCE Sbi Life Insurance Co. Ltd We are thankful to our principal DR.G.MOHAN GARU Principal. CKM Arts & Science College for encouraging doing this project. We are deeply indebted to DR.T.SHOBA KUMARI GARU Head of the department, whose motivation in the field of project development was they made us overcome all the hardships during the course of study. We are heartly thankful to our internal guide MR.MALLIKARJUN GARU for his moral support who was always there to conforming and solacing me at the times of frustration. Our philosophical debates ,exchanges of knowledge ,skills and venting of infrastructure and her insightful comments during our project work program helped us to enrich our experience. Although a leaflet title Acknowledgements cannot represents my true feelings for all these persons. I feel very much thankful to all of them and also to our all the people who helped me in making this endeavor a reality. DECLARATION We hereby declare that the project entitled SARAL SHIELD IN TERM PLAN IN LIFE INSURANCE submitted to the department of Master of Computer Applications; CKM College afflicted to the Kakathiya University, Warangal for partial fulfillment of the requirement for the award of Master of Commerce (Banking & Insurance) is a result of original work carried out by us. This work in original has not been submitted so far in part or full for any other institute or University. KANTUVARI SUMALATHA

(12009C-2026) CHAPTER-I INTRODUCTION INTRODUCTION OF INSURANCE: Insurance is the equitable transfer of the risk of a loss, from one entity to another in exchange against the risk of a contingent, uncertain loss.An insurer, or insurance carrier, is a company selling the insurance; the insured, or policyholder, is the person or entity buying the insurance policy. The amount to be insurance coverage is called the premium. appraising and controlling risk, has evolved as a discrete field of study and practice. The transaction involves the insured assuming a guaranteed and known relatively small loss in the form of payment to the insurer in exchange for the insurer's promise to compensate (indemnify) the insured in the case of a financial (personal) The insured receives a contract, called the insurance policy, which details the conditions and circumstances under which the insured will be financially compensated.In India, insurance has a deep-rooted history. It finds mention in the writings of Manu ( Manusmrithi ), Yagnavalkya ( Dharmasastra ) and Kautilya ( Arthasastra ). for payment. It is a form of risk management primarily used to hedge charged for a certain amount of Risk management, the practice of loss. The writings talk in terms of pooling of resources that could be re-

distributed in times of calamities such as fire, floods, epidemics and famine. This was probably a pre-cursor to modern day insurance. Ancient Indian history has preserved the earliest traces of insurance in the form of marine trade loans and carriers contracts. Insurance in India has evolved over time heavily drawing from England in particular. 1818 saw the advent of life insurance business in India with the establishment of the Oriental Life Insurance Company in Calcutta. This Company however failed in 1834. In 1829, the Madras Equitable had begun transacting life insurance business in the Madras Presidency. 1870 saw the enactment of the British Insurance Act and in the last three decades of the nineteenth century, the Bombay Mutual (1871), Oriental (1874) and Empire of India (1897) were started in the Bombay Residency. This era, however, was dominated by foreign insurance offices which did other countries, good business in India, namely Albert Life Assurance, Royal Insurance, Liverpool and London Globe Insurance and the Indian offices were up for hard competition from the foreign companies. Insurance Companies in India. The Indian Life Assurance Companies Act, 1912 was the first Companies Act was enacted to enable the Government to collect statistical information about both life and non-life business transacted in India by Indian and foreign insurers including provident insurance societies. In 1938, with a view to protecting the interest of the Insurance public, the earlier legislation was consolidated and amended by the Insurance Act, 1938 with comprehensive provisions for effective control over the activities of insurers.

The Insurance Amendment Act of 1950 abolished Principal Agencies. However, there were a large number of insurance companies and the level of competition was high. There were also allegations of unfair trade practices. The Government of India, therefore, decided to nationalize insurance business. on 19th January, 1956 nationalising the Life Insurance sector and Life Insurance Corporation came into existence in the same year. The LIC absorbed 154 Indian, 16 non-Indian insurers as also 75 provident societies245 Indian and foreign insurers in all. The LIC had monopoly till the late 90s when the Insurance sector was reopened to the private sector. In 1914, the Government of India started publishing returns of statutory measure to regulate life business. In 1928, the Indian Insurance An Ordinance was issued The history of general insurance dates back to the Industrial Revolution in the west and the consequent growth of sea-faring trade and commerce in the 17th century. It came to India as a legacy of British occupation. General Insurance in India has its roots in the establishment of Triton Insurance Company Ltd., in the year 1850 in Calcutta by the British. In 1907, the Indian Mercantile Insurance Ltd was set up. This was the first company to transact all classes of general insurance business. 1957 saw the formation of the General Insurance Council, a wing of the Insurance Associaton of India. The General Insurance Council framed a code of conduct for conduct and sound business practices. regulate investments and set Committee was also set up then. Business (Nationalisation) Act, general insurance business was nationalized with effect

from 1st January, ensuring fair In 1968, the Insurance Act was amended to minimum solvency margins. The Tariff Advisory In 1972 with the passing of the General Insurance 1973. 107 insurers were amalgamated and grouped into four companies, namely Company Ltd., the Oriental Insurance Company Ltd and the United India Insurance Company Ltd. company in 1971 and it commence business on January 1sst 1973. has seen insurance come a full circle in a journey extending to nearly 200 years. The process of re-opening of the sector had begun in the early 1990s and the last decade and more has seen it been opened up substantially. In 1993, the Government set up a committee under the chairmanship of RN Malhotra, former Governor of RBI, to propose recommendations for reforms in the insurance sector.The objective was to complement the reforms initiated in the financial sector. The committee submitted its report in 1994 wherein , among other things, it recommended that the private sector be permitted to enter the insurance industry. National Insurance Company Ltd., the New India Assurance The General Insurance Corporation of India was incorporated as a This millennium They stated that foreign companies be allowed to enter by floating Indian preferably companies,

recommendations of the Malhotra Committee report, in 1999, the ] Insurance Regulatory and Development Authority (IRDA) was constituted as an autonomous body to regulate and develop the insurance industry. The IRDA was incorporated as a statutory body in April, 2000. The key objectives of the IRDA include promotion of competition so as to enhance customer satisfaction through premiums, while ensuring the financial security of the insurance market. opened up the market in August 2000 with the invitation for application for registrations. Foreign companies were allowed ownership of up to 26%. The Authority has the power to frame regulations under Section 114A of the Insurance Act, 1938 and has from 2000 onwards framed various regulations ranging from registration of companies for carrying on insurance business to protection of policyholders interests. the subsidiaries of the General Insurance Corporation of India were restructured as independent companies and at the same time GIC was converted into a national reinsurer. Parliament passed a bill de-linking the four subsidiaries from GIC in July, 2002. Today there are 24 general insurance companies including the ECGC and Agriculture Insurance Corporation of India and 23 life insurance companies country. The insurance sector is a colossal one and is growing at a speedy rate of 1520%. Together with banking services, insurance services add about 7% to the countrys GDP. A well-developed and evolved insurance sector is a boon for a

joint venture with Indian partners. Following the increased consumer choice and lower The IRDA In December, 2000, operating in the economic development as it provides long- term funds for infrastructure development at the same time strengthening the risk taking ability of the country. RE-OPENING OF THE SECTOR The process of re-opening of the sector had begun in the early 1990s and the last decade and more has seen it been opened up substantially. In 1993, the Government set up a committee under the chairmanship of RN Malhotra, former Governor of RBI, to propose recommendations for reforms in the insurance sector. The objective was to complement the reforms initiated in the financial sector. The committee submitted its report in 1994 wherein , among other things, it recommended that the private sector be permitted to enter the insurance industry. They stated

that foreign companies be allowed to enter by floating Indian companies, preferably a joint venture with Indian partners. Following the recommendations of the Malhotra Committee report, in 1999, the ] Insurance Regulatory and Development Authority (IRDA) was constituted as an autonomous body to regulate and develop the insurance industry. The IRDA was incorporated as a statutory body in April, 2000. The key objectives of the IRDA include promotion of competition so as to enhance customer satisfaction through increased consumer choice and lower premiums, while ensuring the financial security of the insurance market. The IRDA opened up the market in August 2000 with the invitation for application for registrations. Foreign companies were allowed ownership of up to 26%. The Authority has the power to frame regulations under Section 114A of the Insurance Act, 1938 and has from 2000 onwards framed various regulations ranging from registration of companies for carrying on insurance business to protection of policyholders interests. In December, 2000, the subsidiaries of the General Insurance CIndia were restructured as independent companies and at the same time GIC was converted into a national re-insurer. Parliament passed a bill de-linking the four subsidiaries from GIC in July, 2002. Today there are 24 general insurance companies including the ECGC and Agriculture Insurance Corporation of India and 23 life insurance companies operating in the country.

The insurance sector is a colossal one and is growing at a speedy rate of15- 20%. Together with banking services, insurance services add about 7% to the countrys GDP. A well-developed and evolved insurance sector is a boon for economic development as it provides long- term funds for infrastructure development at the same time strengthening the risk taking ability of the country. SBI Life - Smart Shield is a traditional non-participating pure term plan, which is a one stop solution that meets all your insurance needs. With Options and benefits specially tailored for those who want best financial protection at an affordable cost, this is the perfect plan from your preferred insurance provider. Now your family stays protected, even when you are not around. TYPES OF INSURANCE: The commonly know insurance covers can be categories of two types: Life insurance Non-life insurance 1. LIFE INSURANCE a) Money back b) Pension c) Women, girl child and couple d) Endowment e) Whole life f) Child insurance policy (a) Money back: jeevan sanchary

money back with profits policy jeevan surabhi b) Pension: 1.new jeevan dhara 2.jeevan suraksha without life-cover plan 3. jeevan suraksha with life-cover 4. jeevan suraksha endowment plan C.WOMEN ,GIRL CHILD AND COUPLE: 1.jeevan saathi-for married couples 2.jeevan saritha-for married couples 3.jeevan sneha-for woman only 4.jeevan sukanya-for the girl child d) Endowment: 1. jeevan shree 2.endowment policy without profits 3. endowment policy with profits 4. limited payment endowment with profit 5.jeevan mitra 6. jeevan mitra-triple cover 7.bima kiran 8. jeevan ariha e) Whole Life: 1.whole life policy with profits 2.limited payment whole life 3.convertible whole life f) CHILD INSURANCE POLICY:

1. jeevan kishore childrens deferred assurance plan 2. new childrens deferred assurance plans 3.bal vidya 2. NON-LIFE INSURANCE: a) Property b) Liability c) Health d) Business e) Fire insurance f) Travel g) General insurance A.Property: personal and business property insurance that covers risks against fire, marine, theft and burglary, the types of insurance under this category are: 1. Home insurance/domestic cover 2. Business insurance 3. Commercial insurance Liability: the protects the against injury or damage made by a third party. The types of insurance under this category are: 1.Automatically insurance 2. Works compensation 3. Liability insurance 4. Aviation insurance a) Health : Medi cliam policy

Personal accdent-individual Personal accident-family Group accident insurance Jan arogya bima policy Taffic accident policy PRINCIPLES OF INSURANCE These principles are the essentials or requirements of insurance irrespective of the type of insurance concerned. There are seven fundamental principles of Insurance : Principle of Utmost good faith : Principle of Utmost Good Faith, is the primary principle of insurance. According to this principle, the insurance contract must be signed by both parties ( insurer and insured) in an absolute good faith or belief or trust. Both parties in the contract must disclose all material facts for the benefit of each other. False information or nondisclosure of any important fact makes the contract avoidable. Principle Of Indemnity : The principle of indemnity is applicable to all types of insurance policies except life insurance. Indemnity means security, protection and compensation given against damage, loss or injury. The insurer promise to help the insured in restoring the position before loss. Whenever there is a loss of property, the loss is compensated. The compensation payable and the loss suffered should be measurable in term of money. The insured will be compensated only up to the amount of loss suffered by him. He will not earn profit from the contractor. The

maximum amount of compensation will be upto the value of the policy which is fixed at the time of contract. Principle of Insurable Interest : The person getting an insurance policy must have an insurable interest in the property or life insured. A person is said to have an insurable interest in the property if he is benefited by its existence and be prejudiced by its destruction. The presence of insurable interest is a legal requirement. So an insurance contract without the existence of insurable interest is not legally valid and cannot be claimed in a Court. The object of this principle is to prevent insurance from becoming a gambling contract. Principle of Subrogation : According to the principle of subrogation, when the insured is compensated for the losses due to damage to his insured property, then the ownership right of such property shifts to the insurer. The principle of subrogation is applicable to all insurances other than the life insurance. If the insured party gets a compensation for the loss suffered by him, he cannot claim the same amount of loss from any other party. It prevents the insured being indemnified from two sources in respect of the sameloss. Principle Of Contribution : Sometimes a property is insured with more than one company. The insured cannot claim more than total loss from all the companies put together. He cannot claim the same loss from different companies. If one insurer pays full compensation then that insurer can claim proportionate claim from the other insurers. A person cannot be

restored to a better position than before the loss occurred. The total loss suffered by the insured will be contributed by different companies in proportion to the value of policies issued by them. Principle Of Proximate Cause : Principle of Proximate Cause means when a loss is caused by more than one causes, the proximate or the nearest or the closest cause should be taken into consideration to decide the liability of the insurer. This principle is found very useful when the loss occurred due to series of events. However, in case of life insurance, the principle of Proximate Cause does not apply. Whatever may be the reason of death the insurer is liable to pay the amount of insurance. Principle of Loss minimization : According to the Principle of Loss Minimization, insured must always try his level best to minimize the loss of his insured property, in case of sudden events like fire etc. The insured must take all necessary steps to control and reduce the losses and to save what is left. This principle makes the insured more careful in respect of this Limitations of insurance If you are in the market for a life insurance policy, there are some limitations that you should keep in mind before committing yourself to a policy or otherwise making a final decision. Generally, if you are only purchasing a policy that pays out $5000-$10,000, the limitations are minuscule. You will normally not have to undergo a physical exam or any other in person examination in order to be covered. And coverage can generally be purchased for pennies per

day. In fact, if you are employed, many larger employers may provide you with a life insurance benefit of up to $10,000 as part of your employment benefits that you do not even have to pay for. Among the most common limitations with regard to life insurance is known as a suicide limitation. Simply put, if you purchase a life's insurance policy and then commit suicide, many companies are released from their obligation to pay out on your policy. Depending on the policy, this limitation may be in effect for only the first couple of year or may be imposed for the life of the policy. It is very important to fully understand this limitation. Another common limitation regarding life insurance has to do with preexisting conditions. Generally, once you are approved for a policy, you preexisting medical conditions have already been determined acceptable and your policy will be honored even if your condition(s) contribute to your death. However, if you are dishonest during the application process with regard to your actual medical condition and the insurance company determines that you attempted to defraud them as such, they are generally within their rights to deny payment on your policy. Another thing to keep in mind when considering any limitations on your life insurance policy is the fact that, if you are the primary bread winner in your household, they are probably counting on you for support. Most life insurance policies only pay out in the event of your actual demise, but what happens to your family if you are grievously injured or otherwise unable to

work due to illness or injury? Because standard life insurance policies are not designed to pay out under these kinds of circumstances, it is generally advisable to purchase supplemental coverage that is intended to pay out in the event that you are no longer able to work. The bottom line is that financial security is imperative, and purchasing a life insurance policy that you understand and which will provide for your family when you are unable to is one step that you can take to ensure that your loved ones will be protected after you are gone. I have done some research for you and found these Life Insurance Experts [http:/ /lifeinsurance4u.info] can get you the very best deals on a policy that fits your individual needs.You can be insured with the best policy as early as this Life Insurance provides the dual benefits of savings and security. The following benefits explain why this investment tool should be an integral part of your financial plans. OBJECTTIVS OF INSURANCE To understand marketing policies. And practices being followed by the various insurance companies. To examine the regulatory framework and environment of insurance business. To find out different types of pricing and product management strategies adopted by insurance companies. To examine the various promotional and distribution channel/intermediaries used by insurance companies for marketing their products. To find the effectiveness of marketing strategies being adopted by insurance companies under study. To measure the satisfaction level of customer of insurance companies. To study the policy perspective of the government as to the insurance business.

 ADVANTAGES OF INSURANCE Risk Cover - Life today is full of uncertainties; in this scenario Life Insurance ensures that your loved ones continue to enjoy a good quality of life against any unforeseen event. Planning for life stage needs - Life Insurance not only provides for financial support in the event of untimely death but also acts as a long term investment. You can meet your goals, be it your children's education, their marriage, building your dream home or planning a relaxed retired life, according to your life stage and risk appetite. Traditional life insurance policies i.e. traditional endowment plans, offer in-built guarantees and defined maturity benefits through variety of product options such as Money Back, Guaranteed Cash Values, Guaranteed Maturity Values. Protection against rising health expenses - Life Insurers through riders or stand alone health insurance plans offer the benefits of protection against critical diseases and hospitalization expenses. This benefit has assumed critical importance given the increasing incidence of lifestyle diseases and escalating medical costs. Builds the habit of thrift - Life Insurance is a long-term contract where as policyholder, you have to pay a fixed amount at a defined periodicity. This builds the habit of longterm

savings. Regular savings over a long period ensures that a decent corpus is built to meet financial needs at various life stages. Safe and profitable long-term investment - Life Insurance is a highly regulated sector. IRDA, the regulatory body, through various rules and regulations ensures that the safety of the policyholder's money is the primary responsibility of all stakeholders. Life Insurance being a long-term savings instrument, also ensures that the life insurers focus on returns over a longterm and do not take risky investment decisions for short term gains. Assured income through annuities - Life Insurance is one of the best instruments for retirement planning. The money saved during the earning life span is utilized to provide a steady source of income during the retired phase of life. Protection plus savings over a long term - Since traditional policies are viewed both by the distributors as well as the customers as a long term commitment; these policies help the policyholders meet the dual need of protection and long term wealth creation efficiently. Growth through dividends - Traditional policies offer an opportunity to participate in the economic growth without taking the investment risk. The investment income is distributed among the policyholders through annual announcement of dividends/bonus. Facility of loans without affecting the policy benefits - Policyholders have the option of taking loan against the policy. This helps you meet your unplanned life stage needs without adversely affecting the benefits of the policy they have bought. Tax Benefits-Insurance plans provide attractive tax-benefits for both at the time of entry and exit

under most of the plans. Mortgage Redemption- Insurance acts as an effective tool to cover mortgages and loans taken by the policyholders so that, in case of any unforeseen event, the burden of repayment does not fall on the bereaved family. MEANING AND DEFINITION OF LIFE INSURANCE Life insurance usually referred as life assurance the insured against the happaining of certain event i.e death through the time when it may happen is uncertain. Section 2 of the Indian insurance Act, 1938 has defined life insurance as life insurance business is the business of effecting contract upon human life. The life insurance contract embodies an agreement, in which, broadly stated, the insurer, the insurer undertakes to pay a stipulated sum upon the death of the insured, or at some designated time to a designated beneficiary. J.H. MAGGEE WHY TO BUY LIFE INSURANCE :To protect and support your beneficiaries home and livelihood. To replace your income and minimite the debt load for your heirs. To provide beneficiaries with income tax free proceeds. To provide heirs with benefits to pay the tax on your estate. To help protect the value of your estate. Life insurance helps protect the financial security of your family in the event of your on timely death. This is especially important when your are the primary wage earner. The owner of the

policy pays the insurer premiums in exchange for a promise to pay the beneficiaries a death benefit upon the death of the insured. Pension plan = Investment + Death Benefit + Survival Benefit + Regular Income + Tax Benefits Today I am 25 yrs old and earning 100000 p.m but will I be able to work with same energy even after 60. I need to plan my future with financial stability when I will not have my regular income pension/retirement plans are the solutions to it. It is necessary to ensure regular income for life after retirement, so that you can live with pride and enjoy your twilight years. The amount of investment in a pension plan shall depend on how much monthly income do you need post retirement years. Use retirement calculator to calculate your investment to get the desired pension amount CHAPTER-ll COMPANY PROFILE SBI LIFE INSURANCE COMPANY PROFILE: Formed in 2001, SBI life Insurance is a joint venture between SBI- Indias largest bank and BNP Paribas Assurance Frances banking and financial services provider. SBI owns 74% of the total capital and BNP Paribas Assurance the remaining 26%. PRODUCT PROFILO: RETIREMENT PLAN: The cost of living is experiencing fast steady rise which makes retirement plan an important financial decision. Better known as Pension plan, this plan takes care financial needs

after retirement by investing a part of your savings for limited period. Pension plan provides fixed income after retirement and takes care of daily needs. The pension plan offered by SBI Life is Lifelong Pension Plus. CHILD PLAN: Parenthood brings responsibilities which you cherish each day. Child Plan is a plan specifically designed to take care of financial needs of your child. Child plan provides with necessary funds that will take care of childs education, marriage etc. By investing small portion of your savings you make sure your childs financial aspirations are met. Child plans of SBI Life are called Smart Scholar and Scholar II. TERM PLAN: A risk plan which provides comprehensive cover for your family in the unfortunate event of untimely demise. A term life insurance plan provides good cover at relatively nominal cost and has no survival benefits. SBI Life term plans are Smart Shield, Saral Shield and Swadhan. INVESTMENT PLAN: Popularly known as ULIP, an investment plan invests part of your savings in equity or debt market as per your preference. The purpose of investment plan is to give you returns which easily beat the rising costs since the usual returns in a bank are extremely low. ULIPs offered by SBI Life are Smart Performer,Uni Plus Super Saral Maha Anand, Smart Elite, Money Back, Shubh Nivesh,Smart Horizon and Saral Life.

HEALTH PLAN: Slightly different from health insurance, health plan provides cover for surgery costs, critical illness. A lump sum is paid irrespective of actual hospital bill. Hospital Cash is SBIs health plan. DISTRIBUTION PRODUCT: SBI Life extensively leverages the State Bank Group relationship as a platform for cross-selling insurance products and has over 65,000 Insurance advisors. FINANCIAL INFROMATION: The total premium earned for the half year ended September 30, 2010 was Rs 48,298 million. The profit after tax for the same period is Rs 2,167 million. A total of 6,614 claims were made during the period out of which 4,983 claims were settled and 946 cases were rejected. MARKETING COMPAIGNS: SBI relies on bancassurance channel for insurance sales so the campaign was designed to reach the people who are not customers of the bank. SBI Life campaigns have always focused on the optimism side of the table, the feel good factor. SBI life television commercial has been revolving around this very thought of Celebrate life. Be it elderly people playing cricket, husband wife chatting and being fully confident or the elderly sisters paying surprise visit to her brother on his 70th birthday, the theme has been always been of enjoying life. DISTINCTIONS: 1. Ranked No.1, in New Business Premium, amongst private life insurance companies.

2. Bagged the coveted personal finance award-Outlook Money NDTV Profit "Best Life Insurer 2008". 3. CRISIL, countrys leading rating agency, reaffirmed its highest financial rating AAA/Stable to SBI Life. In 2007, SBI Life became the first life insurer in India to receive this rating from CRISIL. 4. Retained ISO 9001:2000 certificate for superior claim settlement process. 5. Rated as the The Most Trusted Private Life Insurer according to a survey conducted by Brand Equity in association with AC Nielsen ORG-MARG and the Economic Times Intelligence Bureau. MANAGEMENT: Mahadev N Rao is the MD & CEO of SBI Life. Sangramjit Sarangi is the Head of Finace of SBI Life. Sanjeev Pujari is the Appointed Actuary of SBI Life. REACH SBI LIFE: Email: info@sbilife.co.in Telephone: 1800 22 9090 SMS CELEBRATE to 56161 SBI LIFE PRODUCT TABLE: Retirement/Pension Plan SBI Life- Lifelong Pension Plus Child Plan SBI Life - Smart Scholar Child Plan SBI Life - Scholar II

Term Plan SBI Life- Smart Shield Term Plan SBI Life Saral Shield Term Plan SBI Life - Swadhan Savings & Investment Plan SBI Life Smart Performer Savings & Investment Plan SBI Life Unit Plus Super Savings & Investment Plan SBI Life Saral Maha Anand Savings & Investment Plan SBI Life Smart Elite Savings & Investment Plan SBI Life Money Back Savings & Investment Plan SBI Life Sanjeevan Supreme Savings & Investment Plan Savings & Investment Plan Savings & Investment Plan SBI Life Shubh Nivesh SBI Life- Smart Horizon SBI Life Saral Life Health Plan

ED MONEY SBI Life Hospital Cash SBI LIFE INSURANCE COMPANY LIMMITED RATING: ICRA has assigned an iAAA (pronounced I triple A) rating, indicating highest claims paying ability, to SBI Life Insurance Company Limited. The rating points to the fundamentally strong position of SBI Life and underscores that the prospects of the company meeting its policyholder obligations are very high. (Refer Annexure for Rating History) CLAIMS PAYING ABILITY RATINGS ICRAs Claim Paying Ability Ratings (CPRs) are its views on the ability of life insurance companies to pay claims and policyholder obligations in a timely manner. These ratings take into account the financial strength of the insurance company. As well as the ability and the strength of the promoting entities to support the venture or the insurance compa ICRAs methodology of rating life insurance companies involves a comprehensive analysis of industry dynamics, the regulatory environment, the companys franchise and competitive position, and its financial position. A key element of ICRAs evaluation is the financial strength of the promoting entity and its ability to infuse capital to fund the growth and regulatory solvency requirements of the life insurance company and support its financial profile. The rating methodology is a combination of qualitative and quantitative

analyses and includes an interactive process with management to understand and assess its strategy and key aspects of its business, which qualitatively drive its operating position and financial policy. ICRAs CPRs are essentially forward looking and attempt to assess the companys ability to withst STRENGTHS 1. Strong parent support from SBI and BNP Paribas Assurance, ensuring deep penetration, infrastructure support and robust risk management systems 2.Demonstrated ability of promoters to infuse capital at regular intervals to fund growth 3.Strong brand recognition of SBI 4.Third largest private sector player with a market share of 6.2% in 2008 (based on NBAPE1) and the first private sector player to report accounting profits in FY06 5.Favorable cost structure and control over multiple distribution channels, which is a source of sustainable competitive advantage 6.Industry growth supported by favourable demographic profile and economic buoyancy 7. Strong regulatory framework for the industry, with guidelines for investments, capital adequacy and accounting treatments. CHANGES 1. As in the case of other major private sector life players in India, the business is in the initial growth phase 2. Low persistency ratio could result in losses and hamper growth prospects 3. Large dependence of the industry on unit-linked products, which are vulnerable to equity market downturns

4. Prolonged slowdown in the growth of life insurance industry can hamper profitability 5 Competitive pressures are likely to remain high, with the entry of a large number of new entrants in tress and meet policyholder liabilities .recent years. SUMMARY RATIONALE The rating takes into account strong parent support from SBI & BNP Paribas Assurance. SBI Life has achieved a compounded annual growth rate (CAGR) of 123% in the period from 2004 to 2008, reflecting its strong brand franchise and distribution reach, outperforming the market to achieve a market share of 6.2%. SBI Life derives significant synergies from its major shareholder, SBI, in the form of steady revenues through bancassurance channel including cross-selling with loan products, extensive distribution reach and low expense structure. Its other parent, BNP Paribas Assurancebrings strong operational and risk management expertise, thereby assisting SBI Life in building robust systems and procedures. The channel productivity of SBI is among the best, which contributes to its low-cost structure as compared to peers. SBI Life was the first private life insurer to achieve breakeven and reported net profits for the last three years. SBI Life is adequately capitalised and its parents are well-poised to infuse capital at regular intervals to support its future growth. However, ICRA notes that low persistency rates for unit-linked policies and prolonged slowdown in the growth of life insurance industry can hamper profitability and the ability to meet future liabilitie

Life insurance is a capital-intensive business, requiring significant upfront investments with a long gestation period. While business growth and market share are vital for life insurance companies to allow better utilisation of distribution infrastructure and other overheads, these investments are incurred upfront and involve significant capital. During this initial start-up phase, all players require additional capital to fund growth and the ability and willingness of promoters to infuse capital remains critical to meet solvency requirements. At the same time, the business growth needs to be backed by sustainable attributes like brand name, cost structure and distribution reach, which enable insurance companies to offer reliable services to its customers and establish their franchise in the long run, while ensuring adequate risk-based pricing. Aligning the interests of the sales force to the long term-goal of the insurance company is also critical to avoid mis-selling to customers, which can lead to brand erosion in the long term. In an evolving market like India, product development and pricing are critical attributes although product differentiation, being easily replicable, is not a sustainable attribute in the insurance business . COMPANY PROFILE : SBI Life is a joint venture between State Bank of India (SBI) and BNP Paribas Assurance of France, with SBI holding 74% stake and BNP Paribas Assurance holding the remainder. In

the current financial year (April-November 2008), SBI Life is the second largest private sector company in India next only to ICICI Prudential with a 7.3% market share of New Business Premium and a 9.7% market share of NBAPE. SBI is the largest bank in India and has around 14,500 branches across India together with its affiliates. BNP Paribas Assurance is the fourth largest life insurance company in France and is a worldwide leader in Creditor insurance products, offering protection to over 50 million clients. BNP Paribas Assurance operates in 42 countries mainly through the bank assurance and partnership model. BNP Paribas Assurance is the insurance arm of BNP Paribas Bank. BUSINES RISK PROFILE : Market Position & Brand SBI Life has recorded strong growth over the last three years to attain a market share of 6.2% in 2007-08 (based on NBAPE). SBI Life is the fourth largest life insurance company in India, the top three being LIC (48.1%), ICICI Prudential (13.7%) and Bajaj Allianz (10.3%) based on NBAPE. . SBI Life grew at a CAGR of 123in the period from 2004 to 2008 to become the third largest private life insurance company in India. SBI Life increased its market share to 6.2% in 2007-08 from 1.1% in 2004-05 based on NBAPE. SBI Life enjoys one of the strongest brand names in the industry due to its strong parent franchise. Its other partner, BNP Paribas Assurance, is the fourth largest life insurance company in France

and is a worldwide leader in Creditor insurance products, offering protection to over 50 million clients. The joint venture also benefits from the experience of BNP Paribas Assurance in other markets, particularly in areas like product development, systems, risk management and distribution. DISTRIBUTION: SBI Life has a multi-distribution model encompassing Bancassurance, Agency and Group corporate. SBI Life extensively leverages the SBI group as a platform for crossselling insurance products along with its numerous banking product packages such as housing loan and personal loan. SBIs access to over 100 million accounts across the country through approximately 14,500 branches (including regional rural banks) provides an established platform for insurance penetration across urban, semi-urban and rural towns in the country. SBI Life deploys the traditional Bancassurance model whereby the life insurance agents are existing employees of SBI who are trained as per IRDA norms. This results in substantial cost reduction for SBI Life. Agency Channel, which comprises more than 55,000 insurance advisors, offers door-to-door insurance solutions to customers. The number of Sales Offices has increased to around 462 in December 2008 from 187 in 2008. While Bancassurance generated 38.4% of the total business in 2007-08, agency business contributed 48.3% during the same period. The contribution of Agency business

has increased to 48.3% in 2007-08 from 34.3% in 2005-06 since agency force has grown at a much faster rate than other channels. thefirst Indian company to be included in the top 10 global insurance companies. Overall, the channel productivity of SBI Life is amongst the best in the industry with average ticket size2 of around Rs. 40,000, further contributing to its lower operating costs . All of these factors have enabled SBI to have one of the lowest cost structures in the industry. SBI Lifes total expense structure3 as percent to premium stood at 15.2% in 2007-08 and was much lower than many other private sector companies. Unlike product features, which can be easily replicated by competition, thereby eroding any competitive advantage, the favourable cost structure of SBI Life is a sustainable competitive advantage. Agency force is considered to be a more reliable channel in the long term since the company has direct control over its agents. ICRA notes that SBI Life has a low risk of losing control over bancassurance channel and revenues since its parent is a bank. PRODUCT PROFILE : SBI Life maintains a relatively diversified product mix as compared to its close peers even though the contribution from ULIPs has increased substantially over the past few years. SBI Life is also shifting its focus from single premium policies to regular premium policies, with regular premium contribution having risen to 74% in 2007-08 from44% in 200405. (Note:

regular premium = FYP+FYFP+Regular) The group business has seen its contribution decline in recent years; nevertheless, it remains significant with a 22% contribution in terms of total premium in 2007-08. The companys group business exposure has always been the highest amongst its close peers, driven primarily by policies offered to SBIs employees and group credit business. The growth of the company was mainly driven by ULIPs. Although non-existent in 2005, ULIPs contributed to 73% of the total premiums in 2008. This has been in line with the overall market trend. In ULIPs, the investment risk is borne by the policyholder and SBI Life has no exposure to linked policies with capital guarantees. However, any prolonged downturn in the equity markets can have a serious impact on ULIP sales and hence overall growth. This in turn could affect the profitability of all insurance companies including SBI Life in the future. SBI Lifes persistency ratio4 stood at 50% in 2007-08, mainly contributed by linked policies. As per IRDA, linked policies issued after June 2006 have a minimum term of five years and lockin period of three years. If the premium is discontinued within the first three years, the life cover ceases to exist with immediate effect; and SBI Lifes policy liabilities are reduced to that extent. ICRA notes that surrender on such policies may start after the end of lock-in period of three years (if the policy is revived within the period) or at the end of the period allowed for revival

(if the policy is not revived). Thus, the effective renewal/ persistency of these policies would be known only a few years hence. However, SBI Lifes management is proactively working on steps to improve its persistency. and renewal rates through close monitoring and training of its distribution network and product portfolio. FINANCIAL RISK PROFILE: PROBABILITY : Life Insurance industry is capital-intensive and insurers are required to inject capital during initial growth periods at frequent intervals to achieve growth in premium income. A life insurer typically requires minimum of 5-7 years to break even or even more depending on the growth in premiums. Among Indian private life insurers during the period from 2003 to 2007, all of them have incurred underwriting losses with the exception of Bajaj Allianz in 2006-07. These losses are, however, expected, the business being still in its initial growth phase and hence incurring corresponding business costs. SBI Life has also been incurring underwriting losses, although it has reported net profits since 2006 and is the first private life insurance company to do so. Despite high growth, its underwriting losses have come down in the last three years primarily due to favorable expense structure. In 2008, linked policies and group credit business recorded underwriting profits as well. Asset Quality For a life insurer, it is very important to generate high returns while maintaining asset quality to avoid credit risk. SBI Life has adequate systems and processes in

place to ensure investments are made keeping in mind the ALM needs and return requirements in each product category. The investment risk is borne by the policyholder for linked business and by the insurance company in a non-linked portfolio. As on March 2008, approximately 52% of the assets are held in Government securities with high safety for non-linked business while approximately 17% of the assets are invested in infrastructure and social sector. At the same time, the exposure of SBI Life to equity is low at 6% of the total assets, reflecting a conservative investment policy. SBI Life has also invested approximately 9% of the assets in AAA and AA rated bonds and has 1% in high quality liquid mutual funds. Overall, the investments are invested in safe and liquid assets with low exposure to equity and other risky assets. Persistency defined as current year renewal premium divided by sum of last year, first year and renewal premium. Non-participating group retirement policy premiums are excluded from persistency calculations as premiums may be inflated for a particular yearduetoadditioofnew corporate account. New account premium will include current year premium plus past accumulated funds/corpus that are one-time in nature. Asset Liability Management & Liquidity ALM holds paramount importance for non-linked portfolio, wherein the risk is borne by the company. SBI Life has set up a committee to review any duration (interest rate) or cash flow mismatch for its non-

linked portfolio. SBI Life is also investing on strengthening its ALM systems in line with its future requirements as it scales up its operations further. SBI Life also enjoys strong liquidity due to parent support for funding requirements. It also holds approximately 23% of the total nonlinked policyholder investments as short term investments with a maturity profile of less than 12 months to meet short-term liquid needs. Life Insurance Industry in India is regulated by IRDA with guidelines for key areas like product approvals under file and use system, accounting treatment, Investment management and importantly reserving and solvency. assumptions into the future for various parameters such as morbidity, expense, mortality, interest rate etc. In estimating reserve, the insurer has to make These estimates are based on the insurers best estimate expectations, which is based on their own portfolio or industry or similar other experience and are vetted by an Actuary and submitted to IRDA. IRDA further stipulates that the best estimate assumptions shall be adjusted by an appropriate Margin for Adverse Deviation (MAD), the level of MAD being dependent on the degree of confidence in the expected level. The purpose of MAD is to build a safeguard against mis-estimation of the best estimate or adverse fluctuations around the best estimate. However MAD does not cover for volatility and catastrophe risks. Therefore, insurers

have to set aside separate excess assets, known as required solvency margin, to protect the policyholders financial interests should such situation arise. IRDA specified existing method for calculating Required solvency margin5 (RSM) is based on the factors related to mathematical reserves and sum at risk, specified for different lines of business. The method has simplicity as its advantage; however it does not specifically recognize the size of portfolio, type of business, operational risk, and risk management practices such as reinsurance, underwriting, asset and liability management etc. Available Solvency margin (ASM) is excess of total assets over liabilities. Solvency ratio of insurer is defined as the ratio of ASM over RSM. As per IRDA norms, insurers have to maintain solvency ratio of at least 1.50. IRDA approves products introduced by life insurance players under file and use system after ascertaining the feasibility of various estimates including underwriting norms, expense loadings, tenure and profitability. IRDA has also put in place various checks and disclosure norms to be made to policyholders to prevent misuse and mis-selling. While for policyholder investments for non-linked business, IRDA has specified various categories of investments with focus on maintaining low credit risk for the portfolio. ICRA believes, since Life Insurance industry in India is in nascent stages of growth, strong regulatory framework and oversight

provide cushion in protecting the interest of policyholder and enhance transparency & corporate governance. NOTE ON LIFE INSURANCE: The Indian life insurance business was dominated by the Life Insurance Corporation of India limited for quite a long period of time. With the deregulation of the insurance sector in 2000, a number of private companies entered into the life insurance business. Most of the new entrants were essentially alliances between established Indian business houses and global insurance companies with proven life insurance experience. As of 2008, there are 18 private life insurers operating in India. Indias life penetration rate measured by life premiums as a percentage of GDP -- was 4.0% in 2008. This is much higher than other emerging economies like China but lower than industrialized and developed peers in Asia Pac like Japan and Taiwan. In 2007, Indias life insurance total premium equaled US$ 47 bn and it accounted for around 16.1% of the total Asia pacific life market excluding Japan. Also, Indias global market share increased to 1.7% in 2007 from 0.7% in 1997. At present, the Indian life insurance industry is the fourth largest in Asia Pacific excluding Japan. Life Insurance market (New Business Premium) in India has grown at a healthy rate of 36% during 2003-08. During 2006-07, a very favorable period for life insurance business, growth peaked to 95% due to strong performance of ULIP products before moderating to 31% in 2007-

08. ULIPs have gained popularity in recent years driven by the boom in capital markets. Approximately 60% of new business premiums in 2006-07 came from ULIPs, with some private sector companies deriving more than 90% of their premium income from this highgrowth product segment. However, the downturn in equity markets in recent periods has begun to affect ULIP sales and the overall new business premium growth rate. For the period from March to November 2008, the new business premium for the life insurance industry grew marginally by 1.4% over the corresponding period previous year. The decline in growth was entirely contributed by LIC, which witnessed a negative growth of 14.2% while private sector companies maintained a growth of 31.5% during the same period. With the minimum three-year lock-in period imposed on ULIPs, massive surrenders are unlikely but bear markets (and lower NAVs) would lead to lower new sales. LIC continues to dictate the Indian life market with a 37.7% market share based on NBAPE April-November 2008. However, private sector companies are continuously gaining market share on the back of innovative products, creative marketing and aggressive distribution. Among private sector companies, ICICI Prudential is the market leader (NBAPE) with a 13.5% market share while SBI Life and Bajaj Allianz follow with 9.7% and 8.4%, respectively. SBI Life has shown much stronger growth than ICICI Prudential and Bajaj Allianz in

recent years to achieve the second position. The top three players account for approximately 50% of the total private sector new business premium. The long-term prospects for the Indian life insurance industry remain robust owing to Indias growing middle class and an increasing insurance awareness in the country. In ICRAs view, the key long-term drivers of growth in the Indian life insurance industry are: Robust economic growth driven by structural factors Changing demographics like growing young population, rising disposable incomes and trends towards nuclear families Micro growth drivers like expanding distribution, emergence of alternate distribution channels and a wide product basket serving customer needs CHAPTER-lll RESEARCH METHODOLOGY The core concept underlying research is its methodology. The methodology controls the study, dictates the acquisition of the data, and arranges them in logical relationships, sets up a means of refining the raw data, contrives an approach so that the meanings that lie below the surface of those data become manifest, and finally issue a conclusion or series of conclusions that lead to an expansion of knowledge. The entire process is a unified effort as well as an appreciation of its component parts. According to J.W.B. est, Research is considered to be formal, systematic, intensive process of carrying on the scientific method of analysis. It involves a more systematic structure of investigation usually resulting in some sort of formal record of procedures and report of result

or conclusions. According to P.M.Cook, Research is an honest, exhaustive, intelligent searching for facts and their meanings or implications with reference to a given problem. It is the process of arriving at dependable solutions to problem through planned and systematic collection, analysis and interpretation of data. The best research is that which is reliable, verifiable and exhaustive so that it provides information in which we have confidence. RESEARCH STATEMENT : The research statement studied is entitled, A comparative study of Life Insurance Corporation of India and Private Life Insurance Companies in India. The present study focuses on the analysis of the performance of public 52 and all private life insurance companies in India with the help of mean, percentage, ratios, ANOVA, Data Envelopment Analysis and linear trend. RESEARCH DESIGN : A Research design is a plan of action to be carried out in connection with a research project. It is the conceptual structure within which research is conducted and it constitutes the blue print for the collection, measurement and analysis of data. It is the specification of methods and procedures for acquiring the information needed for solving the problem. Decisions regarding what, where, when, how much, by what means concerning an inquiry or a research study constitute a research design. OBJECTIVES OF THE STUDY:

The following are the objectives of the study: To know the pension plan concept in SBI Life insurance To know the techniques involved in the transaction of pension plan in the SBI Life Insurance. To know the mechanisms involved in the transaction of pension plan in SBI Life insurance . To know the annuity options of pension plan in SBI Life insurance . To evaluate the pension sector in SBI Life insurance. To draw suitable conclusions wherever necessary. SCOPE OF THE STUDY:The following are the scope of the study: 1. It revels only the pension plan of life insurance. 2. The study is restricted to the SBI Life insurance only. LIMITATIONS OF THE STUDY:1. This study has been conducted to understand only pension plan of insurance 2. Data collection was strictly confined to secondary data. 3. Detailed study of topic was not possible due to limited size of the 4. Study is limited to project duration. 5. As the bank insurance maintains some secrecy, the accurate interpretations

drawn. SBI Life project were not SOURCE OF DATA COLLECTION The methodology adopted in this study is mostly on secondary data collection 1. Information from internet. 2. By referring the text book, stock market related book (journals & magazines). 3. Information provided by the office of SBI life . I,e. COLLECTION OF THE DATA The collection of information done by two sources they are as follows: PRIMARY DATA SECONDARY DATA PRIMARY DATA: Primary data is the information collected directly without any reference in this study it has mainly through interviews with concerned managers and staff either individually or collectively some of the information had been verified or supplemented with personal observation. 1. the data collected from personal observation 2. the data collected through interviews with concerened managers SECONADARY DATA: Secondary data collected from already published books secondary data helps researchers

to save time while primary researchers takes a considerable amount of the time in the form of collecting and analyzing the data secondary data offers ready made solutions. The required information collected from insurance management text books. The data required for the study was mainly based on the secondary data. The required information was collected from the annual report of the SBI. The related data was obtained from he printed and published financial statement of the company. The data was collection web site (www.sbi life.co.in). CHAPTER-IV DATA ANALYSIS SBI Life Saral Shield Plan Review DATA ANALYSIS Saral Shield SBI Life Saral Shield Plan is a term life insurance plan which offers financial protection to the dependents in case of untimely demise. You pay relatively small premium to the insurer for the comprehensive cover and get your family secured. If policyholder passes away, Sum Assured will be given to the nominee. Since SBI Life Saral Shield is a pure risk plan, there are no survival benefits.

SBI Life Saral Shield Plan: SBI Life Saral Shield term life insurance plan is for any individual who is at least 18 years or below 60 years. Saral Shield policy term is minimum of 5 years and maximum of 30 years. If you are 50 years old the maximum term you can opt for is 15 years. That is because Saral Shield plan maturity age cannot exceed 65 years. How Much Cover: The minimum Sum Assured is Rs 7.5 lacs. Saral Shield allows you to take cover as high as Rs 24 lacs. However you have to meet underwriters requirement to get the cover you want, which depends on your annual salary, age etc. So how much cover should you get? Rule of Thumb: The typical cover should be ten times your annual income. Summarized Table Entry Age Maturity Age Sum Assured Policy Term Premium Pay Term Premium Mode 18 Years-60 Years Maximum 65 years Rs 750,000underwriting) 5 Years- 30 years

Same as policy term, Single Premium Yearly, Half-yearly, Quarterly, Monthly Rs 2,400,000( subject to Death Benefit: There are three options for the customer Level Term Assurance The predetermined Sum Assured is paid to the beneficiary who could be your parents, wife, son or daughter. Decreasing Term Assurance (Loan Protection) This option can be taken if you have taken any loan. The Sum Assured will be equivalent to the outstanding loan amount. As you keep paying the loan amount, the Sum Assured will keep decreasing as well. Decreasing Term Assurance (Family Income Protection) On demise of life insured, monthly payout will be paid to the family members till the end of the policy term. The monthly amount will be equal to Sum Assured divided by policy term (in months). Riders: Accidental death benefit and Accidental total & permanent disability are the riders available with Saral Shield.

Sum Assured Rebate: A discount on premium will be provided if the Sum Assured is equal or more than INR 1,500,000. Tax Benefits: Section 80C, 10 (10D) of the Income Tax Act, 1961 are applicable. Under Section 80C you can avail tax benefit, yearly premium (not more than 1lac) will be deducted from taxable income. Under Section 10(10D) death claim is completely tax free. Consider these Scenarios: Scenario1: If he opts for Level term Assurance with Sum Assured equal to Rs 20 lacs, he would have to pay premium of Rs 12,096. If anything happens to him during the policy term, Sum Assured will be paid to the nominees. Scenario 2: Mr. Verma takes home loan with interest rate of 12%. He opts for Sum Assured of Rs 20 lacs. The single premium amount would be Rs 106,789. If anything happens to him during the policy term, the outsanding loan amount will be covered. Scenario 3: Mr. Verma takes family income protection option with Sum Assured of 20 lacs; the single premium amount would be Rs 56,335. On death of Mr. Verma, monthly payouts will be paid to the beneficiary for the remaining term. Scenario 4: Policy is in grace period and Mr. Verma dies, Sum Assured minus renewal premium will be paid.

Scenario 5: Policy lapses on the 22nd year, Mr. Verma dies, nothing will be paid. If policy lapses, there is option to revive it within 30 days from date of renewal. What Else? How to buy: Policybazaar representatives will help you through the purchase process. Free Look Period: Saral Shield plan can be cancelled within 15 days of receiving the policy contract. A written application can be submitted to any branch for the same. The premium will be paid back minus some charges like stamp duty, medical reports. Grace period: Saral Shield can be paid within 30 days from the date of renewal and 15 days for monthly mode. Policy terms will remain unchanged during grace period. However in case of death during grace period, renewal premium will be deducted from Sum Assured payable. After 30 days, if the renewal premium is not paid the policy will cease to exist. Sum Assured: The policyholder cannot change the sum assured of Saral Shield once taken. However he can opt for another term plan as per his needs. Reinstatement: Saral Shield can be revived within 3 years from the premium due date. However all outstanding premiums are to be paid. Maturity: There are no maturity benefits in SBI Saral Shield plan as its a pure term life insurance plan. Payment Method: Credit/debit card, cheque are accepted by IDBI Federal. Exclusion: During the first policy year or the year of reinstatement of policy, if policyholder commits suicide then Sum Assured will not be paid.

Death Claim: The nominee can request for the death claim (Sum Assured) after filling claim forms along with submitting list of documents which will prove authenticity of the claim. Key Features of SBI Life Saral Shield: Hassle-free, suitable and easy issuance. Complete Financial Security at truly lower costs. Wide varieties of plan options to give you complete freedom from your liabilities. Attractive large sum assured rebates. Enhance your protection by availing two riders- Accidental Death Benefit Rider and Accidental Total and Permanent Disability Rider. Tax benefits as per prevailing norms under the Income Tax Act, 1961 Product Snapshot: Age at Entry Age at Maturity Plan Options Sum Assured(x 50,000/-) Policy Term Min: 18 years Max: 65 years Level Term Assurance Decreasing Term Assurance (Loan Protection) Decreasing Term Assurance (Family Income Protection) Min: Rs. 7,50,000 Max: Rs. 24,00,000 Min: 5 years Max:

For Level Term Assurance and Decreasing Term Assurance (Family Income Protection) 30 years For Decreasing Term Assurance (Loan Protection) Equal to the Max: 60 years Premium Paying Term Premium Modes Min Premium Amounts outstanding loan term subject to maximum of 30 years Same as policy term For Level Term Assurance: Single Premium (SP), or Regular Premium(RP) (Yearly / Half-yearly / Quarterly / Monthly#) For Decreasing Term Insurance (Loan Protection) & Decreasing Term Insurance (Family Income Protection) : Single Premium Regular Premium: Yearly Half-yearly Rs. 1,100/Quarterly Monthly Rs. 10,000/Rs. 2,000/Rs. Rs. 600/250/-Single Premium:

All the references to age are age as on last birthday. #For convenience, monthly mode of premium, is payable through Electronic Clearing System (ECS), Salary Savings Scheme or Standing Instructions (where payment is made either by direct debit of bank account or credit card). Instant Premium Reckoner Age of For SA - Rs. 10 Lakhs Life Policy Term (in years)/ Premium (in Policy Term (in years)/ Premium (in Assured Rs) (years) 10 25 2,052 30 2,197 35 2,778 40 3,726 45 5,421 For SA - Rs. 20 Lakhs 15

20 2,052 2,188 2,409 2,711 3,204 3,775 4,483 5,350 6,556 7,866 Rs) 25 10 2,413 3,442 3,132 3,731 4,459 4,893 6,379 6,791 NA 10,179 15

3,442 4,157 5,745 8,304 12,449 20 25 3,713 4,163 4,759 5,602 6,888 8,255 10,038 12,096 15,070 NA Note: he above annual level term assurance premiums are for a standard, healthy male life and are inclusive of service tax as well as high sum assured rebate, wherever applicable. PROJECT ANALYSIS SARAL SHIELD Introduction: SBI Life - Saral Shield is a traditional non-participating pure term plan, At a affordable cost, Saral Shield provides cover for your family and ensures that a

proper safety net is created. Thus, it guarantees that there will be absolutely no compromise on your dreams and ambitions for your loved ones, at all times. Isnt it great? So, get the Shield advantage now!! KEY FEATURES Hassle-free, convenient and easy issuance. Financial Security. Wide varieties of plan options to give you freedom from your liabilities. Large sum assured rebates. Enhance your protection by availing two riders- Accidental Death Benefit Rider