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HDFC STANDARD LIFE INSURANCE

HDFC STANDARD LIFE INSURANCE

HDFC STANDARD LIFE INSURANCE

CHAPTER ONE: INTRODUCTION

HDFC STANDARD LIFE INSURANCE

1) INTRODUCTION:
HDFC Standard Life Insurance Company Limited is one of India's leading private insurance companies, which offers a range of individual and group insurance solutions. It is a joint venture between Housing Development Finance Corporation Limited (HDFC Limited), India's leading housing finance institution and a Group Company of the Standard Life Plc, UK. As on February 28, 2009 HDFC Ltd. holds 72.43% and Standard Life (Mauritius Holding) 2006, Ltd. holds 26.00% of equity in the joint venture, while the rest is held by others. The company launched national operations in December 2001. Today, we have over 8000 employees across over 12 states in the country and a national footprint of distributors trained to provide quality financial advice and insurance solutions to the large Indian customer base.

As we further expand our presence across the country with a large network of distributors, we continue to provide innovative product and service offerings to cater to specific insurance and wealth management needs of customers. Whatever your plans in life, you can be confident that HDFC Standard life will offer the right financial solutions to help you achieve them.

HDFC STANDARD LIFE INSURANCE

1.1 Meaning and Definition of Life Insurance

1.1.1 Meaning
Life insurance covers the risk that exists in ones life. These risks may arise due to accident, illness or natural causes like fire, flood, earthquake. Life insurance aims to protect the family of the life insured so that they may not suffer from financial consequences on the death or disability of the insured person. Life insurance needs to be a mandatory part of every persons life. Life insurance is a contract that pledges payment of an amount to the person assured (or his nominee) on the happening of the event insured against. Life insurance is a very popular form of insurance. It ensures the life of an individual and gives financial protection to the members of the family of the policyholder. It is different from other types of insurance in various ways. It not only gives protection but it is a method of compulsory saving. This insurance provides protection to the family at the premature death or gives adequate amount at the old age when the earning capacities are reduced. The contract is valid for payment of the insured amount during:

The date of maturity, or Specified dates at periodic intervals, or


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HDFC STANDARD LIFE INSURANCE

Unfortunate death, if it occurs earlier.

Life insurance covers the risk that exists in ones life. These risks may arise due to accident, illness or natural causes like fire, flood, earthquake. Life insurance aims to protect the family of the life insured so that they may not suffer from financial consequences on the death or disability of the insured person. Life insurance needs to be a mandatory part of every persons life. Life insurance is a contract that pledges payment of an amount to the person assured (or his nominee) on the happening of the event insured against.

Life insurance is a very popular form of insurance. It ensures the life of an individual and gives financial protection to the members of the family of the policyholder.

HDFC STANDARD LIFE INSURANCE

1.1.2 Definition

Life Insurance may be defined as a type of Insurance Contract whereby the insurer, in consideration of the premium paid in periodical instalments undertakes to pay an annuity or a certain sum of money either on the death of the insured or on the expiry of a certain number of years. Life insurance or life assurance is a contract between the policy owner and the insurer, where the insurer agrees to pay a designated beneficiary a sum of money upon the occurrence of the insured individual's or individuals' death or other event, such as terminal illness or critical illness. In return, the policy owner agrees to pay a stipulated amount called a premium at regular intervals or in lump sums.

HDFC STANDARD LIFE INSURANCE

1.2 Features of Life Insurance Contract

(1) Nature of General Contract


Since life insurance contract is a sort of contract it is governed by the Indian Contract Act. According to Section 10 of Indian Contract Act, 1872 a valid contract must have the following essentialities: (a) Offer and acceptance. (b) Legal considerations. (c) Competent to make contract. (d) Free consent. (e) Legal object.

(2) Insurable Interest


The insured must have an insurable interest in the life to be insured for a valid contract. Insurable Interest in life insurance may be divided into two categories: (a) Insurable interest in own life, and (b) Insurable Interest in others life.
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HDFC STANDARD LIFE INSURANCE The latter can be sub-divided into two classes: Where proof is not required, and

Where proof is required. Again this insurable interest can be divided into two classes insurable interest arising due to business relationship, and insurable interest in family relation.

(3) Utmost Good Faith


The life insurance requires that the principle of utmost good faith should be preserved by both the parties. The principle of utmost good faith says that both the parties, proposer (insured) and insurer must be of the same mind at the time of contract because only then the risk may be correctly ascertained. They must make full and true disclosure of the facts material to risk.

(4) Warranties
Warranties are integral part of contract.i.e. they form the bases of the contract between the proposer and the insurer and if any statement whether material or non material, is untrue the contract shall be null and void and the premium paid by him may be forfeited by the insurer.

HDFC STANDARD LIFE INSURANCE

(5) Proximate Cause


The efficient or effective cause that causes loss is called PROXIMATE CAUSE. It is the real and actual cause of loss. If the cause of loss is insured, the insurer will pay. In LIFE INSURANCE the doctrine of CAUSA PROXIMA is not applied because the insurer is bound to pay the amount of insurance whatever may be the reason of death. It may be natural or unnatural. Hence this principle is not of much practical importance with life insurance.

(6) Assignment and Nomination


Life insurance policy can be assigned freely for a legal consideration or love and affection. Notice of assignment must be given to the insurer who will acknowledge the assignment. The holder of life insurance policy on his own may either at the time of affecting the policy or at any subsequent time before the policy matures, nominate person or persons to whom the money secured by the policy shall be paid in event of his death. Nomination can be cancelled before the maturity, but a notice should be served to this effect.
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HDFC STANDARD LIFE INSURANCE

(7) Return of Premium

In the ordinary course premium once paid cannot be refunded. But in the following cases the premium paid are returnable. On account of misrepresentation or breach of warranty, the insured, in the absence of any express condition to the contrary, can claim the return of premium paid. But where the insured is guilty of fraud in obtaining a policy, he will fail in his claim to the sum assured.

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HDFC STANDARD LIFE INSURANCE

1.3

HISTORY

OF

HDFC

STANDARD

LIFE

INSURANCE COMPANY LTD.

HDFC Standard Life Insurance Company Ltd. is a, one of India's leading multi-business corporations and HDFC Life International, the international arm of HDFC Life, a Fortune 100 company. The company has positioned itself on the quality platform. In line with its vision to be the most admired life insurance company in India, it has developed a strong corporate governance model based on the core values of excellence, honesty, knowledge, caring, integrity and teamwork.

Incorporated in 2000, HDFC Standard Life started commercial operation in April 2001. In line with its values of financial responsibility, HDFC Standard Life has adopted prudent financial practices to ensure safety of policyholder's funds. The Company's paid up capital as on 30th April, 2009 Is Rs 1782 core HDFC Standard Life has multi-channel distribution spread across the country. Agency distribution is the primary channel complemented by partnership distribution, bancassurance, alliance

marketing and dedicated distribution for emerging markets. The Company places a lot of emphasis on its selection process for agent advisors, which comprises four stages - screening, psychometric test, career seminar and
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HDFC STANDARD LIFE INSURANCE final interview. The agent advisors are trained in-house to ensure optimal control on quality of training. The company currently has around 75,832

agent advisors at 715 offices across 389 cities. The company also has 36 referral tie-ups with banks, 24 partnership distribution and alliance marketing relationships each. HDFC Standard Life has put in place a unique hub and spoke model of distribution to deepen our rural penetration. This is the first time such a model has been put in place for rural marketing of insurance. The company has 139 offices dedicated to rural areas.

HDFC Standard Life offers a suite of flexible products. It now has 39 products covering both life and health insurance and 8 riders that can be customized to over 800 combinations enabling customers to choose the policy that best fits their need. Besides this, the company offers 6 products and 7 riders in group insurance business.

HDFC Life Insurance Company is one of the largest insurance companies in the United States and the world. Ranked as a Fortune 100 company, HDFC Life has provided its policyholders with financial security and investment opportunities since 1841. As a mutual company, HDFC Life is owned solely by its policyholders, to whom it pays annual dividends and provides longterm coverage on a wide range of insurance products. The company prospered during its first 100 years of operations, as the growth of the nation's population and economy created an expanding market for life

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HDFC STANDARD LIFE INSURANCE insurance. Since World War II HDFC Life has maintained its competitive edge by diversification.

1.4 VISION AND MISSION

1) Financial Expertise
As a joint venture of leading financial services groups, HDFC Standard Life has the financial expertise required to manage your long-term investments safely and efficiently.

2) Range of Solutions
We have a range of individual and group solutions, which can be easily customized to specific needs. Our group solutions have been designed to offer you complete flexibility combined with a low charging structure.

3) Track Record So Far


Our gross premium income, for the year ending March 31, 2009 stood at Rs. 5,564.69 cores.
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HDFC STANDARD LIFE INSURANCE As on March 31, 2009, the company has more than 27 lakh polices in force.

3) Strong promoter
HDFC Standard Life is a strong, financially secure business supported by two strong and secure promoters HDFC Ltd and Standard Life. HDFC Ltds excellent brand strength emerges from its unrelenting focus on corporate governance, high Standards of ethics and clarity of vision.

Standard Life is a strong, financially secure business and a market leader in the UK Life & Pensions sector.

4) Investment Philosophy
We follow a conservative investment management philosophy to ensure that our customers money is looked after well. The investment policies and actions are regularly monitored by a formal Investment Committee comprising non-executive directors and the Principal Officer & Executive Director. As a life insurance company, we understand that customers have invested their savings with us for the long term, with specific objectives in mind. Thus, our investment focus is based on the primary objective of protecting and generating good, consistent, and stable investment returns to match the investors long-term objective and return expectations, irrespective of the market condition.

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HDFC STANDARD LIFE INSURANCE

1.5 INDUSTRY GROWTH PROSPECTS:

THE YOUTHFUL AGE PYRAMID 2005

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HDFC STANDARD LIFE INSURANCE

THE EXPECTED AGE PYRAMID - 2030

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HDFC STANDARD LIFE INSURANCE

CHAPTER TWO:
TYPES OF INSURANCE PLANS IN HDFC STANDARD LIFE
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HDFC STANDARD LIFE INSURANCE

INSURANCE COMPANY LTD.

2. TYPES OF LIFE INSURANCE PLAN

WHY DO WE NEED PROTECTION PLANS?


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HDFC STANDARD LIFE INSURANCE

Protection Plans help you shield your family from uncertainties in life due to financial losses in terms of loss of income that may dawn upon them incase of your untimely demise or critical illness. Securing the future of ones family is one of the most important goals of life. Protection Plans go a long way in ensuring your familys financial independence in the event of your unfortunate demise or critical illness. They are all the more important if you are the chief wage earner in your family. No matter how much you have saved or invested over the years, sudden eventualities, such as death or critical illness, always tend to affect your family financially apart from the huge emotional loss. For instance, consider the example of Amit who is a healthy 25 year old guy with a income of Rs. 1,00,000/- per annum. Let's assume his income increases at a rate of 10% per annum, while the inflation rate is around 4%; this is how his income chart will look like, until he retires at the age of 60 years. At 50 years of age, Amits real income would have been around Rs. 10, 00,000/- per annum. However, in case of Amits unfortunate demise at an early age of 42 years, the loss of income to his family would be nearly Rs. 5,00,000/- per annum.

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HDFC STANDARD LIFE INSURANCE

However, with a Protection Plan, a mere sum of Rs. 2,280/- annually (exclusive of service tax & educational cess) can help Amit provide a financial cushion of up to Rs. 10, 00,000/- for his family over a period of 25 years.

1. HDFC Term Assurance Plan


This plan is designed to help secure your familys financial needs in case of uncertainties. The plan does this by providing a lump sum to the family of the life assured in case of death or critical illness (if option is chosen) of the life assured during the term of the contract. One can choose the lump sum that would replace the income lost to ones family in the unfortunate event of ones death. This helps your family to maintain their financial independence, even when you are not around.

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HDFC STANDARD LIFE INSURANCE

Features

Advantages

High cover at a very nominal cost. Flexibility to choose the Sum Assured. Additional benefit options can be availed at marginal costs.

Premium amount remains the same over the term of the policy in case of regular premium

Option of paying single premium or regular premium. Tax benefits under sections 80C, 80D and 10(10D) of Income Tax Act, 1961.

2. HDFC Loan Cover Term Assurance Plan

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HDFC STANDARD LIFE INSURANCE This plan aims to protect your family from your loan liabilities in case of your unfortunate demise within the policy term. It provides the beneficiary with a lump sum amount, which is a decreasing percentage of the initial Sum Assured. This means that as the outstanding loan decreases as per the loan schedule, the cover under the policy also decreases as per the policy schedule.

Features

Advantages

Flexibility to choose the Sum Assured. Decreasing Sum Assurance as the outstanding loan decreases ensures that you do not pay for the protection you dont need.

Additional Optional Benefit is available at a nominal cost. Option of paying single premium or regular premium. Tax benefits are offered under section 80C, 80 D and 10(10D) of the Income Tax Act, 1961.
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HDFC STANDARD LIFE INSURANCE

3. HDFC Home Loan Protection Plan


This plan aims to protect your family from your loan liabilities in case of your unfortunate demise within the policy term. It ensures that your family does not lose the dream house that you have purchased for them, in case you are not around to repay the outstanding monthly installments on your housing loan. This provides you with the comfort of knowing that in your absence, a sum of money will be available towards repaying your housing loan, making sure that your family will be secure in your family home.

Features

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HDFC STANDARD LIFE INSURANCE

Advantages

A decreasing Sum Assured payable if you die during the term of the contract. This sum assured is intended to help pay-off your outstanding home loan

Policy can be availed by paying a single premium in advance The premium amount can be included in the housing loan and repaid as part of the loan repayment installments

Decreasing Sum Assured makes sure that you do not pay for protection you dont need

1. HDFC Childrens Plan

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HDFC STANDARD LIFE INSURANCE As a parent, your priority is your childs future and being able to meet your childs dreams and aspirations. With our HDFC Childrens Plan, you can start building your savings today and ensure a bright future for your child. This With Profits plan is designed to secure your childs future by giving your child (Beneficiary) a guaranteed lump sum on maturity or in case of your unfortunate demise, early into the policy term.

Features

Advantages

Lets you customize an ideal plan for your child and provide invaluable financial support The Double Benefit Plan Option helps you secure your childs immediate and future needs. In case of your unfortunate demise, we will pay the Sum Assured to your child (Beneficiary). Your family need not pay any further premiums and the policy continues. And on
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HDFC STANDARD LIFE INSURANCE maturity of the plan, we will pay you the Sum Assured plus Bonuses Declared

You can choose to pay your premium as either Annually, Half-Yearly or Quarterly depending on your convenience. You also have a range of convenient auto premium payment options

Tax benefits are offered under section 80C and 10(10D) of the Income Tax Act, 1961

2. HDFC YoungStar Super


As a parent, your priority is to meet your childrens future and being able to meet your childs dreams and aspirations. With our HDFC YoungStar Super, you can start building your savings today and ensure a bright future for your child. This Plan provides valuable protection to your child in case you are not around and gives you an outstanding investment opportunity to HDFC imise your savings by providing you a choice of thoroughly researched and
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HDFC STANDARD LIFE INSURANCE selected investments. This plan also gives Bumper Addition to the fund value at Maturity.

Features

Advantages

You can customize the ideal plan for your child by choosing the premium you wish to invest along with the Sum Assured, depending on the level of protection required.

On Maturity, your fund value will be augmented by addition of Bumper Addition , which is a percentage of your original annualised premium and depends on the policy term chosen.
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HDFC STANDARD LIFE INSURANCE

The Triple Insurance Benefit helps you secure your childs immediate and future needs. In case of your unfortunate demise or critical illness, we will pay the Sum Assured to your child (Beneficiary). Your family need not pay any further premiums. We will pay 50% of all the original regular premiums towards your policy and 50% of the premiums will be paid to the Beneficiary as and when due, on an annual basis. Any Death Benefit or Critical Illness cover terminates immediately.

In the long term, the key to building great maturity values is a low Fund Management Charge (FMC). We have a low FMC of only 1.25% per annum of the funds value.

You can choose to pay your premium as either Annually, Half-Yearly or Monthly depending on your convenience. You also have a range of convenient auto premium payment options.

You can change your investment fund choices in two ways:


o

Switching: You can move your accumulated funds from one fund to another anytime

Premium Redirection: You can pay your future premiums into a different selection of funds, as per your need

Tax benefits are offered under section 80C and 10(10D) of the Income Tax Act, 1961

3. HDFC YoungStar Super Suvidha


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HDFC STANDARD LIFE INSURANCE As a parent, your priority is your childs future and being able to meet your childs dreams and aspirations. With our HDFC YoungStar Super Suvidha, you can start building your savings today and ensure a bright future for your child. It is a convenient plan, which saves you from the need of going for Medicals. This Unit Linked Plan provides valuable protection to your child in case you are not around and gives you with an outstanding investment opportunity to HDFC imise your savings by providing you a choice of thoroughly researched and selected investments. This plan also gives Bumper Addition to the fund value at Maturity.

Features

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HDFC STANDARD LIFE INSURANCE

Advantages

No need to go for medicals. Just filling a Short Medical Questionnaire will do

This plan gives you Bumper Addition to the fund value at Maturity. Your fund value will be augmented by addition of Bumper Addition, which is a percentage of your original annualised premium and depends on the policy term chosen.

In case of your unfortunate demise, we will pay the Sum Assured to your child (Beneficiary). Your family need not pay any further premiums.

In the long term, the key to building great maturity values is a low Fund Management Charge (FMC). We have a low FMC of only 1.25% per annum (of the funds value)

You can choose to pay your premium as either Half Yearly or Yearly. You also have a range of convenient auto premium payment options
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HDFC STANDARD LIFE INSURANCE

You can change your investment fund choices in two ways:


o

Switching: You can move your accumulated funds from one fund to another anytime

Premium Redirection: You can pay your future premiums into a different selection of funds, as per your need

Tax benefits are offered under section 80C and 10(10D) of the Income Tax Act, 1961

4. HDFC YoungStar Supreme Suvidha


There is no bigger joy than being able to fulfill your child's dream. With HDFC YoungStar Supreme Suvidha you can fulfill your childs immediate and future needs. So tomorrow when you child needs your support you dont have to depend on anyone else. This Plan provides valuable protection to your child in case you are not around and gives you an outstanding investment opportunity to HDFC imise your savings by providing you a choice of thoroughly researched and selected investments. This plan also gives Bumper Addition to the fund value at Maturity.

Features

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HDFC STANDARD LIFE INSURANCE

Advantages

No need to go for medicals. Just filling a Short Medical Questionnaire will do

This plan gives you Bumper Addition to the fund value at Maturity. Your fund value will be augmented by addition of Bumper Addition, which is a percentage of your original annualised premium and depends on the policy term chosen.

In case of your unfortunate demise, we will pay the Sum Assured to your child (Beneficiary). Your family need not pay any further premiums. At end of the term, your beneficiary would receive the fund value.

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HDFC STANDARD LIFE INSURANCE

In the long term, the key to building great maturity values is a low Fund Management Charge (FMC). We have a low FMC of only 1.25% per annum (of the funds value).

You can choose to pay your premium as either Half Yearly or Yearly. You also have a range of convenient auto premium payment options.

You can change your investment fund choices in two ways:


o

Switching: You can move your accumulated funds from one fund to another anytime

5. HDFC SL YoungStar Champion Suvidha


There is no bigger joy than being able to fulfill your child's dream; that too on your own. With HDFC SL YoungStar Champion Suvidha you can fulfill your childs immediate and future needs. So tomorrow when you child needs your support you dont have to depend on anyone else. This is a convenient plan, which saves you from the need of going for Medicals. This Unit Linked Plan gives you with an outstanding investment opportunity to HDFC imise your savings by providing you a choice of thoroughly researched and selected investments. This plan also gives Bumper Addition to the fund value at Maturity.

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HDFC STANDARD LIFE INSURANCE

Features

Advantages

No need to go for medicals. Just filling a Short Medical Questionnaire will do

This plan gives you Bumper Addition to the fund value at Maturity. Your fund value will be augmented by addition of Bumper Addition, which is a percentage of your original annualised premium and depends on the policy term chosen.

In case of your unfortunate demise, we will pay the Sum Assured to your child (Beneficiary). Your family need not pay any further premiums.

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HDFC STANDARD LIFE INSURANCE

In the long term, the key to building great maturity values is a low Fund Management Charge (FMC). We have a low FMC of only 1.25% per annum (of the funds value)

You can choose to pay your premium as either Half Yearly or Yearly. You also have a range of convenient auto premium payment options

You can change your investment fund choices in two ways:


o

Switching: You can move your accumulated funds from one fund to another anytime

Premium Redirection: You can pay your future premiums into a different selection of funds, as per your need

Tax benefits are offered under section 80C and 10(10D) of the Income Tax Act, 1961

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HDFC STANDARD LIFE INSURANCE

1. HDFC Personal Pension Plan


Today, you are busy climbing the ladder of success and realizing your dreams. Today, time is with you. Just take a moment and think. Will you be able to continue at the same pace? Will your income be the same forever? Will you be able to live life on your own terms even after you retire? The HDFC Personal Pension Plan is a With Profits insurance policy that is designed to provide a post-retirement income for life with the freedom to choose your retirement date.

Features

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HDFC STANDARD LIFE INSURANCE

Advantages

This plan is designed to provide you a post retirement income for life You can choose your premium, the Sum Assured and your retirement date. At the end of the policy term, you will receive the Sum Assured plus any attaching bonuses, which will provide you a post retirement income in your golden years

On your chosen retirement (Vesting) date, you will get the lump sum comprising the Sum Assured plus any attaching bonus.
o

You can take up to 1/3rd of your Sum Assured as a tax free cash lump sum

o o

The rest must be converted to annuity You can buy the annuity from us or any other insurer

For Regular Premium Policy, you can choose to pay your premium as either Annually, Half-Yearly or Quarterly depending on your convenience. You also have a range of convenient auto premium payment options

Tax benefits under sections 80CCC of the Income Tax Act, 1961 subject to the provisions contained therein

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HDFC STANDARD LIFE INSURANCE

2. HDFC Pension Super


Today, you are busy climbing the ladder of success and realizing your dreams. Today, time is with you. Just take a moment and think. Will your income be the same forever? Will you be able to live life on your own terms even after you retire? The HDFC Pension Super is Unit Linked plan, designed to provide a post-retirement income for life with the freedom to choose your retirement date. This plan gives you with an outstanding investment opportunity to HDFC imise your savings by providing you a choice of thoroughly researched and selected investments. This plan also gives Bumper Addition to the fund value at vesting.

Features

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HDFC STANDARD LIFE INSURANCE

Advantages

This plan is designed to provide you a post retirement income for life You can choose your premium and your retirement date. You will receive the accumulated value of your funds, which will be used to provide you with the pension income in your golden years

On Maturity (Vesting) your fund value will be augmented by Bumper Addition. Bumper addition is a percentage of your original annualized premium and depends on your policy term chosen at inception

On your chosen retirement (Vesting) date, you will get the value of the units in your policy. As per prevailing Government regulations;
o

You can take up to 1/3rd of the total benefit at Vesting (fund value + Bumper Addition) as a tax-free cash lump sum

o o

The rest must be converted to annuity You can buy the annuity from us or any other insurer

In the long term, the key to building great maturity values is a low Fund Management Charge (FMC). We have a low FMC of only 1.25% per annum (of the funds value)

If you have not opted for AAO (Asset Allocation Option), you can change your investment fund choices in two ways:
o

Switching: You can move your accumulated funds from one fund to another anytime

Premium Redirection: You can pay your future premiums into a different selection of funds, as per your need

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HDFC STANDARD LIFE INSURANCE

You can choose to pay your premium as either Monthly (through Standing Instructions or ECS Mandate), Half yearly or Annually. You also have a range of convenient auto premium payment options

Tax benefits under sections 80CCC of the Income Tax Act, 1961 subject to the provisions contained therein

3. HDFC Pension Supreme


Today, you are busy climbing the ladder of success and realizing your dreams. Today, time is with you. Just take a moment and think. Will your income be the same forever? Will you be able to live life on your own terms even after you retire? The HDFC Pension Supreme is Unit Linked plan, designed to provide a post-retirement income for life with the freedom to choose your retirement date. This plan gives you with an outstanding investment opportunity to HDFC imise your savings by providing you a choice of thoroughly researched and selected investments. This plan also gives Bumper Addition to the fund value at vesting.

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HDFC STANDARD LIFE INSURANCE

Features

Advantages

This plan is designed to provide you a post retirement income for life You can choose your premium and your retirement date. You will receive the accumulated value of your funds, which will be used to provide you with the pension income in your golden years

On Maturity (Vesting) your fund value will be augmented by Bumper Addition. Bumper addition is a percentage of your average annualized premium and depends on your policy term chosen at inception

On your chosen retirement (Vesting) date, you will get the value of the units in your policy. As per prevailing Government regulations;

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HDFC STANDARD LIFE INSURANCE


o

You can take up to 1/3rd of the total benefit at Vesting (fund value + Bumper Addition) as a tax-free cash lump sum

o o

The rest must be converted to annuity You can buy the annuity from us or any other insurer

In the long term, the key to building great maturity values is a low Fund Management Charge (FMC). We have a low FMC of only 1.25% per annum (of the funds value)

If you have not opted for AAO (Asset Allocation Option), you can change your investment fund choices in two ways:
o

Switching: You can move your accumulated funds from one fund to another anytime

Premium Redirection: You can pay your future premiums into a different selection of funds, as per your need

You can choose to pay your premium as either Monthly (through Standing Instructions or ECS Mandate), Half yearly or Annually. You also have a range of convenient auto premium payment options

Tax benefits under sections 80CCC of the Income Tax Act, 1961 subject to the provisions contained therein

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HDFC STANDARD LIFE INSURANCE

4. HDFC SL Pension Champion


Today, you are busy climbing the ladder of success and realizing your dreams. Today, time is with you. Just take a moment and think. Will your income be the same forever? Will you be able to live life on your own terms even after you retire? The HDFC SL Pension Champion is Unit Linked plan, designed to provide a post-retirement income for life with the freedom to choose your retirement date. This plan gives you with an outstanding investment opportunity to HDFC imise your savings by providing you a choice of thoroughly researched and selected investments. This plan also gives Bumper Addition to the fund value at vesting.

Features

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HDFC STANDARD LIFE INSURANCE

Advantages

This plan is designed to provide you a post retirement income for life You can choose your premium and your retirement date. You will receive the accumulated value of your funds, which will be used to provide you with the pension income in your golden years

On Maturity (Vesting) your fund value will be augmented by Bumper Addition. Bumper addition is a percentage of your average annualised premium and depends on your policy term chosen at inception

On your chosen retirement (Vesting) date, you will get the value of the units in your policy. As per prevailing Government regulations;
o

You can take up to 1/3rd of the total benefit at Vesting (fund value + Bumper Addition) as a tax-free cash lump sum

o o

The rest must be converted to annuity You can buy the annuity from us or any other insurer

In the long term, the key to building great maturity values is a low Fund Management Charge (FMC). We have a low FMC of only 1.25% per annum (of the funds value)

If you have not opted for AAO (Asset Allocation Option), you can change your investment fund choices in two ways:
o

Switching: You can move your accumulated funds from one fund to another anytime

Premium Redirection: You can pay your future premiums into a different selection of funds, as per your need

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HDFC STANDARD LIFE INSURANCE

You can choose to pay your premium as either Half yearly or Annually. You also have a range of convenient auto premium payment options

Tax benefits under sections 80CCC of the Income Tax Act, 1961 subject to the provisions contained therein

5. HDFC SL Unit Linked Pension HDFC imiser II


Ideally, just how spending comes to you, so must saving and investing. You are able to finance your expenses and take care of your expenses in present times. However, to ensure that you are able to maintain the same Standard of living post retirement, you need to make the right kind of investment today. HDFC SL Unit Linked Pension HDFC imiser II is a unique Single Premium unit linked plan, designed to provide a post-retirement income for life with the freedom to HDFC imise your investment returns. This plan also gives Bumper Addition* of 5% of initial single premium at vesting.

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HDFC STANDARD LIFE INSURANCE

Features

Advantages

This plan is designed to provide you a post retirement income for life You can choose your initial single premium, the investment strategy and retirement date. At the end of the policy term, you will receive the accumulated value of your funds including Bumper Additions, which will be used to provide your pension income in your golden years.

This plan gives you Bumper Addition (*for policies with term equal or greater than 15 years) to the fund value on Vesting. Your fund value will be augmented by addition of Bumper Addition to the extent of 5% of the initial single premium chosen at inception.

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HDFC STANDARD LIFE INSURANCE

On your chosen retirement (Vesting) date, you will get the value of the units in your policy. As per prevailing Government regulations; 1. You can take up to 1/3rd of the total benefit at Vesting (fund value + Bumper Addition if any) as a tax-free cash lump sum 2. The rest must be converted to annuity 3. You can buy the annuity from us or any other insurer

In the long term, the key to building great maturity values is a low Fund Management Charge (FMC). We have a low FMC of only 1.25% per annum (of the funds value)

You can change your investment fund choices through switching where you can move your accumulated funds from one fund to another anytime

Tax benefits under sections 80CCC of the Income Tax Act, 1961 subject to the provisions contained therein

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HDFC STANDARD LIFE INSURANCE

1. HDFC Endowment Super


You have always given your family the very best. And there is no reason why they should not get the best in future too. With rising costs, ensuring the best got your family will need some financial planning. With our HDFC Endowment Super, you can start building your savings today and ensure that your family remains financially independent, even when you are not around. This Unit Linked Plan also gives you with an outstanding investment opportunity to HDFC imise your savings by providing you a choice of thoroughly researched and selected investments.

Features

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HDFC STANDARD LIFE INSURANCE

Advantages

This plan provides valuable protection to your family in case you are not around. In case of your unfortunate demise during the policy term, we will pay the greater of your Sum Assured (less any withdrawals you have made in the two years before your claim) and your total fund value to your family.

You can choose any one of 4 Additional Plan Benefit options depending on your requirement:
o o o o

Life Option = Death Benefit Extra Life Option = Death Benefit + Accidental Death Benefit Life & Health Option = Death Benefit + Critical Illness Benefit Extra Life & Health Option = Death Benefit + Critical Illness Benefit + Accidental Death Benefit

This plan gives you Bumper Addition to the fund value at Maturity. Your fund value will be augmented by addition of Bumper Addition, which is a percentage of your original annualised premium and depends on the policy term chosen.

In the long term, the key to building great maturity values is a low Fund Management Charge (FMC). We have a low FMC of only 1.25% per annum (of the funds value)

You can choose to pay your premium as either Annually, Half-Yearly or Monthly depending on your convenience. You also have a range of convenient auto premium payment options

You can change your investment fund choices in two ways:


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HDFC STANDARD LIFE INSURANCE


o

Switching: You can move your accumulated funds from one fund to another anytime

Premium Redirection: You can pay your future premiums into a different selection of funds, as per your need

Tax benefits are offered under section 80C and 10(10D) of the Income Tax Act, 1961

2. HDFC Endowment Super


You have always given your family the very best. And there is no reason why they should not get the best in future too. With rising costs, ensuring the best got your family will need some financial planning. With our HDFC Endowment Super, you can start building your savings today and ensure that your family remains financially independent, even when you are not around. This Unit Linked Plan also gives you with an outstanding investment opportunity to HDFC imise your savings by providing you a choice of thoroughly researched and selected investments.

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HDFC STANDARD LIFE INSURANCE

Features

Advantages

This plan provides valuable protection to your family in case you are not around. In case of your unfortunate demise during the policy term, we will pay the greater of your Sum Assured (less any withdrawals you have made in the two years before your claim) and your total fund value to your family.

You can choose any one of 4 Additional Plan Benefit options depending on your requirement:
o o o

Life Option = Death Benefit Extra Life Option = Death Benefit + Accidental Death Benefit Life & Health Option = Death Benefit + Critical Illness Benefit

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HDFC STANDARD LIFE INSURANCE


o

Extra Life & Health Option = Death Benefit + Critical Illness Benefit + Accidental Death Benefit

This plan gives you Bumper Addition to the fund value at Maturity. Your fund value will be augmented by addition of Bumper Addition, which is a percentage of your original annualised premium and depends on the policy term chosen.

In the long term, the key to building great maturity values is a low Fund Management Charge (FMC). We have a low FMC of only 1.25% per annum (of the funds value)

You can choose to pay your premium as either Annually, Half-Yearly or Monthly depending on your convenience. You also have a range of convenient auto premium payment options

You can change your investment fund choices in two ways:


o

Switching: You can move your accumulated funds from one fund to another anytime

Premium Redirection: You can pay your future premiums into a different selection of funds, as per your need

Tax benefits are offered under section 80C and 10(10D) of the Income Tax Act, 1961

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HDFC STANDARD LIFE INSURANCE

3. HDFC SIMPILIFE
You have always believed in living life on your own terms. So why let the changing realities of everyday life overwhelm you and make your aspirations take a back seat? With our HDFC SimpliLife Plan, you can plan now to HDFC imise your savings and secure your and your familys future. It is a convenient plan, which saves you from the need of going for Medicals. This Unit Linked Plan gives you with an outstanding investment opportunity to HDFC imise your savings by providing you a choice of thoroughly researched and selected investments.

Features

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HDFC STANDARD LIFE INSURANCE

Advantages

This plan provides valuable protection to your family in case you are not around. In case of your unfortunate demise during the policy term, we will pay the Unit Fund Value plus Sum Assured to your family.

This plan gives you Bumper Addition to the fund value at Maturity. Your fund value will be augmented by addition of Bumper Addition, which is a percentage of your original annualised premium

In the long term, the key to building great maturity values is a low Fund Management Charge (FMC). We have a low FMC of only 1.25% per annum (of the funds value)

You can choose to pay your premium as either Annually or HalfYearly depending on your convenience. You also have a range of convenient auto premium payment options

You can change your investment fund choices in two ways:


o

Switching: You can move your accumulated funds from one fund to another anytime

Premium Redirection: You can pay your future premiums into a different selection of funds, as per your need

Tax benefits are offered under section 80C and 10(10D) of the Income Tax Act, 1961

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HDFC STANDARD LIFE INSURANCE

4. HDFC Wealth Builder


HDFC Wealth Builder is an exclusive plan crafted for elite achievers like you. An investment cum insurance plan that will actively help in building your wealth and give you twin advantage of exclusive funds (actively managed for you) along with choice of limited premium payment term. This plan provides the financial protection to your loved ones and builds up your wealth effortlessly. This plan also gives Bumper Addition to the fund value at Maturity.

Features

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HDFC STANDARD LIFE INSURANCE

Advantages

This plan gives you Bumper Addition to the fund value at Maturity. Your fund value will be augmented by addition of Bumper Addition, which is a percentage of your average annualised premium.

This plan offers an excellent investment opportunity through choice of exclusive funds

In the long term, the key to building great maturity values is a low Fund Management Charge (FMC). We have a low FMC of only 1.35% per annum (of the funds value)

You can choose to pay your premium as either Half Yearly or Annually. You also have a range of convenient auto premium payment options

You can change your investment fund choices in two ways:


o

Switching: You can move your accumulated funds from one fund to another anytime

Premium Redirection: You can pay your future premiums into a different selection of funds, as per your need

Tax benefits are offered under section 80C and 10(10D) of the Income Tax Act, 1961

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HDFC STANDARD LIFE INSURANCE

5. HDFC Money Back Plan


You have always believed in living life on your own terms. So why let the changing realities of everyday life overwhelm you and make your aspirations take a back seat? With our HDFC Money Back Plan, you can plan now to ensure that you have the necessary funds to have the necessary funds to secure your long-term as well as short-term financial goals. This With Profits plan gives you a proportion of the basis Sum Assured as Cash lump sums at regular 5-year intervals within the policy term.

Features

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HDFC STANDARD LIFE INSURANCE

Advantages

This plan gives you a proportion of the basic Sum Assured as Cash lump sums at regular 5-year intervals within the policy term and a lump sum payment on survival up to maturity date. An ideal way to secure your long-term as well as short-term financial goals

Provides invaluable protection to your family by way of lump sum payment in case of unfortunate demise within policy term, over and above any earlier payouts

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HDFC STANDARD LIFE INSURANCE

Gives you the flexibility to customise your policy according to your needs by adding any one of the 4 benefit options available

You can choose to pay your premium as either Annually, Half-Yearly or Quarterly depending on your convenience. You also have a range of convenient auto premium payment options

Tax benefits under sections 80C, 80D and 10(10D) of Income Tax Act, 1961

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HDFC STANDARD LIFE INSURANCE

1. HDFC Critical Care Plan


Critical Illness can strike anyone. Today with advancement in medical science it is possible to survive a critical illness. Expenses on survival with a critical illness can be very high. HDFC Critical care plan provides for a lump sum payment on survival post diagnosis of a critical illness, so that in the event a critical illness strikes, you dont have to dig into those precious savings of yours.

Features

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HDFC STANDARD LIFE INSURANCE

Advantages

Provides valuable protection on survival post diagnosis of a critical illnesses

Covers as many as 30 critical illnesses Lump sum benefit payment paid irrespective of medical expenses The policy continues even after the benefit payment paid on selected illness

Choice of the level of health cover and premium payment Convenient and hassle free claims Tax benefits are available under section 80D under Income Tax Act, 1961

2. HDFC SurgiCare Plan


In the fast paced lives that we lead, medical contingencies may arrive at our doorstep uninvited.Surgery costs form a substantial portion of health care expenditure and needs to be provided for. Health issues can get compounded if left unattended and may require a surgery. Plus, the ever increasing costs of surgical procedures are sure to burn a hole in our pockets.
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HDFC STANDARD LIFE INSURANCE HDFC SurgiCare Plan provides you with timely support in case you have to undergo a major surgery and hospitalisation, as the case maybe, ensuring your financial independence at all times.

Features

Advantages

82 major surgical procedures are covered. Option to include hospital cash benefit Automatic increase in the level of health cover (subject to terms and conditions) ensures that the increasing medical costs are taken care of.

Lump sum benefits are paid regardless of the actual medical expenses.

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HDFC STANDARD LIFE INSURANCE

Flexibility to tailor-make the policy by choosing level of health cover, benefit options level and premium payment as per your needs.

Convenient and hassle free claims with cashless benefits on surgeries and hospitalization in any of the network hospitals. To know more click here.

Tax benefits can be availed under section 80D of the Income Tax Act, 1961

- To educate people about the different product & facilitates provided by HDFC Standard life insurance

- To study the feature of HDFC Standard life insurance

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HDFC STANDARD LIFE INSURANCE

CHAPTER THREE: RESEARCH AND DESIGN

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HDFC STANDARD LIFE INSURANCE

3) METHODS OF DATA COLLECTION

3.1 Primary Method

Primary data are those which are collected fresh and for the first time and thus happen to be original in character. It is always advised to use primary data whenever possible. They are also known as first handed data. Following are the methods of collecting Primary Data:

(1) Interview

(2) Telephone Interview

(3) Mail Survey

(4) Questionnaire Questionnaire is a set of questions to find out the data about the Insurance Companys performance, which is circulated among the people or customers of the same Company. The customers may regard to different branches. The customer or people based on their personal experience give answers to the
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HDFC STANDARD LIFE INSURANCE

sets of questions presented to them on the basis of which we find out the status of the company.

I have considered 50 samples to get a feedback that how many customers have taken which kind of policies which I have mentioned in Finding.

3.2 Secondary Data

Secondary data means data that are already available. i.e. they refer to data which have already been collected and analyzed by someone else. Such information has not been gathered afresh specifically for any research project.

(1) Books

Books were used to refer to the subject matter and to get extra knowledge on the topic. Books of various authors were referred for the same purpose.

I have referred topics like Meaning, Definition and Features of Life Insurance from Innovations in Banking and Insurance.

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HDFC STANDARD LIFE INSURANCE

(2) Newspaper

(3) Website

Websites are used to get the general view about the HDFC STANDARD Life Insurance Companys product and its history, on the net.

Websites are also used to attract the customers as per the knowledge that I have. Websites were used to take general information. www.hdfcinsurance.com

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HDFC STANDARD LIFE INSURANCE

CHAPTER FOUR FINDING

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HDFC STANDARD LIFE INSURANCE

4. FINDING
1. As per survey 35% of sample are having HDFC STANDARD Life Insurance Company Term Policy , 30% are having Pension Plan , 25% are having Childrens Policy and 10% has UILP Plan of HDFC STANDARD Life Insurance Company Ltd.

2. As per survey 20% of sample are taking

HDFC STANDARD Life

Insurance Company for Tax Saving and Investment , 30% are taking Retirement and pension , 30% are taking Childrens Education &Future Plan and 20% are taking Insurance for Family Life Security.

3. As per survey 40% of sample prefers to have Mediclaim for their family, 15% sample prefers to have Life Plan for their family, 30% sample prefers to have Whole Life Plan for their family and 15% sample prefers to the Pension plan.

4. As per survey 30% of sample prefers to pay their premium through Cash, 40% sample prefers to pay their premium through Cheque, 15% sample prefers to pay their premium through Online and 15% sample prefers to pay their premium through ECS.
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HDFC STANDARD LIFE INSURANCE

5. As per survey 45% of samples prefer to pay their premium through monthly, 40% of sample prefers to pay their premium through half-yearly premium, and 15% of sample prefers to pay their premium through halfyearly premium.

6. As per survey 40% of sample prefers to invest their money in growth Fund, 30% of sample prefers to invest their money in balance Fund and 30% sample prefers to invest their money in Traditional Fund.

As per survey 80% sample are satisfied with HDFC STANDARD Life Insurance Company Ltd.

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