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Undertaken at

Submitted in the Partial Fulfillment of the requirements For the degree of


Under the supervision of: Dr.BHARAT BHUSHAN

Submitted by AMIT KUMAR

SESSION 2006-2008

(Approved by A.I.C.T.E., Govt. of India & Affiliated to M.D. University, Rohtak) 5. K.m. Stone, Sonepat Road, ROHTAK-124023

(Approved by A.I.C.T.E., Govt. of India & Affiliated to M.D. University, Rohtak) 5. K.m. Stone, Sonepat Road, ROHTAK-124023 ________________________________________________________________ Ref No……………… Dated……………

I AMIT KUMAR Roll No. ______________Class M.B.A of the MR DAV Institute of Management Studies, Rohtak here by declares that the Summer Training Report entitled “ANALYSIS OF CUSTOMER PERCEPTION ABOUT PENSION PLANSMETLIFE” is an original work and the same has not been submitted to any other Institute for the award of any other degree. A Seminar presentation of the Training Report was made on _______________and the suggestion as approved by the faculty were duly incorporated.

Signature of supervisor (Dr .BHARAT BHUSHAN)

Signature of the student (AMIT KUMAR)

Counter Signed Principal of the Institute


I am grateful to Mr. AKASH DAHIYA, Agency manger, MetLife India Insurance Pvt Ltd. (Gurgaon), for providing me with valuable opportunity to apply the theoretical concepts of marketing of the financial services to practice at Gurgaon Branch. I express my wholehearted thanks to Mr.Abhinav Sharma, S.M., at Gurgaon Branch for helping me shoulder the responsibility of a valuable marketing exercise at this Branch. I feel highly obliged for her effort in guiding me and for her patience in answering my queries during the course of the project. I also extend my sincere thanks to my faculty guide, Dr. Bharat Bhushan, Co-ordinator MRDAV, ROHTAK for the encouragement, guidance and hours they invested with me to make the project a success. My sense of gratitude extends to the complete METLIFE INDIA INSURANCE PVT LTD. family at Gurgaon, and my clients without whose indulgence the project wouldn’t have seen the light of the day.


It thus enables the students to undergo those experiences. I consider myself lucky to get my summer training in India’s largest INSURANCE COMPANY ‘METLIFE INDIA INSURANCE CO. Classroom lectures make the fundamental concept of management clear but not their application in actual practice. .PREFACE Practical training constitutes an integral part of the management studies. Industrial activity in India has become a thing to watch and I really wanted to be a part of it and it is essential for me being a finance student. I underwent seven weeks of training at gurgaon branch of METLIFE. It really helped me to get a practical insight into the actual business environment and provide me an opportunity to make my financial management concepts more clear. which is quite different from the classroom teachings. It has to be coupled with practical for it to be fruitful. Positive and correct results of the classroom learning need realities of the practical situation. The practical knowledge is an important suffix to the theoretical knowledge. It is in this sense that practical training in company has a significant role to play in the subject of financial management for developing managerial and administrative skills in the future finance managers and to enhance their analytical skills. One cannot rely merely upon theoretical knowledge. PVT. Training gives an opportunity to the students to expose themselves to the industrial environment. LTD’. After liberalization the Indian economic sense is changed because of Multi National Companies continuously coming with their technical expertise and proven management concepts. which will help them later when they join any organization.

1 Life Insurance. c) Data Collection.1 Objectives of report. b) Sample Size.CONTENTS Page No.  CERTIFICATE  DECLARATION  ACKNOWLEDGEMENT  PREFACE CHAPTER-1 CONCEPTUAL FRAMEWORK & COMPANY PROFILE 1.2 Research methodology. 2. a) Research Design.2 Company product 1.4 Company Profile. CHAPTER-2 OBJECTIVE AND RESEARCH METHODOLOGY 2. 1. d) Limitation of study CHAPTER-3 CHAPTER-4 ANALYSIS AND INTERPRETATION IMPLICATION & CONCLUTION BIBLIOGRAPHY 40-41 42-43 6-12 13-15 16-31 32-39 1 2 3 4 44-52 53-55 56-57 58-60   APPENDICES Questionnaire .3 Pension Plans. 1.


retirement etc. Bombay Mutual Life Assurance Society in 1871. As life insurance became more established.. Life Office Management Inc. covering temporary risk situations. History of Life Insurance Life insurance made its first appearance in England in 16th century. investment. it was realized what a useful tool it was for a number of situations that includes temporary needs/threats." Life insurance has come a long way from the earlier days when it was originally conceived as a risk-covering medium for short periods of time. Life Insurance in India In India some Europeans started the first life insurance company in Bengal Presidency. viz. Life insurance did not prosper in the United States during the 18th century. . The first registered life office in England was the hand in hand society in 1696.Introduction to Life Insurance According to the U. The Orient Life Insurance in 1818. "Life Insurance provides a sum of money if the person who is insured dies whilst the policy is in effect. because of serious fluctuations in death-rate. savings. such as sea voyages. viz. (LOMC).S. The famous 'Amicable Society' for a perpetual assurance office started its operation since 1706.. The Year 1870 was a year of land mark in the history of Indian Insurance separating the early period of pioneering attempts at life insurance from the subsequent period of steady development at the establishment of Indian life office.

The share of life insurance premium to GDP of India was 1. with the nationalization of insurance industry. Foreign Direct Investment (FDI) Policy in Insurance Sector As per the current (Mar 06) FDI norms.0%. LIC's 1996 insurance survey reveals that more than 40 percent of insurance-buyers look at insurance products as a means of savings. Therefore there is risk in going in for private insurance players. Currently India and China are the most lucrative insurance markets in the world. This is because. Only 18 percent of insurance policies are sold on death risk considerations. Risk coverage is only a secondary objective for them and nearly 26 percent of the insurance policies sold are on considerations of old age security. All life insurance companies have to comply with the strict regulations laid out by IRDA. The Union Budget for fiscal 2005 had Recommended that the ceiling on foreign holding be increased to 49. However. Despite these opportunities. foreign participation in an Indian insurance company is restricted to 26. Privatization and Globalization) that paved entry of Private and Foreign Life Insurance players in India during the late 90's and earlier 2000's. Since 1956.Up to end of 19th century. unlike in the West. the state – run Life Insurance Corporation of India (LIC) has held the monopoly in India. the matter is still under discussions. which is abysmal in the global standard. They constitute the home of half of the population of the world and their recent rapid economic development makes them attractive for foreign investment. however.0% of its equity / ordinary share capital. insurance is sold more as an instrument of savings in India than as a product offering for protection and security. . there is also a rough ride ahead for the new players in India. Then comes the LPG (Liberalization. the insurance was in the incept ional stage. considerations. Therefore no legislation was required till that usually the Indian Company Acts 1883 was applicable.29 percent.

comparison of such products with mutual funds would be erroneous. these type of plans are subject to a minimum lock-in period of three years to prevent misuse of the significant tax benefits offered to such plans under the Income Tax Act.5% to 60% on the premium paid.Even if Life Insurance Corporation of India (LIC). which are more beneficial to the customer. • The maximum commission limits as per statutory provisions are: Agency commission for retail life insurance business:  35 .30% for 1st year premium if the premium paying term is more than 15 years 10 . the private companies are coming out with better products. Further. o Agency commission for retail pension policies:  7.30% . Among such products are the ULIPs or the Unit Linked Investment Plans which offer both life cover as well as scope for savings or investment options as the customer desires.5% thereafter • Maximum broker commission .Unit linked policies it varies between 1.    In case of Mutual fund related .yr 2 and 3rd year and 5% .5% .5% for 1st year premium and 2.40% for 1st year premium if the premium paying term is more than 20 years 25 . the state owned behemoth is the largest player in the market.thereafter for all premium paying terms. Hence.15% for 1st year premium if the premium paying term is less than 10 years 7.

• However. the above commission may be further subject to the product wise limits specified by IRDA while approving the product. in the form of tax incentives to the insured . However in any case this fee cannot be more than the agency commission as filed under the product. • Growth of consumer movement with an increasing demand for better insurance products.• Referral fees to banks – Max 55% for regular premium and 10% for single premium. the leading user-contributed encyclopedia. It may not have been reviewed by professional editors (see full disclaimer) Features of Indian insurance industry: • Low market penetration • Ever-growing middle class component in population. • Inadequate application of information technology for business Adequate fillip from the Govt. This entry is from Wikipedia.

1. to regulate." Market Potential For Private Life Insurance Companies In India It has been found out that: * 85 percent of the Indians prefer LIC than any other insurance companies. * Most of the Indians are of the opinion that private insurance companies would be able to perform well in the long run. 'Assured Returns' and 'Long term Investment' are the important factors influencing Indians in opting for Life Insurance * Only few of the Indians are aware of private life insurance companies.Insurance Regulatory and Development Authority (IRDA) The regulatory body for insurance IRDA has been established with the following mission: "To protect the interests of the policy holders. shares etc. promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental thereto. • Agents are mostly responsible for selling insurance products in India . insurance. Indians prefer to their investment needs like bank deposit. post office schemes.2 lakhs * There is significant relationship existing between monthly household income and amount insured * Based on the monthly household income. chit funds. * Most of the Indians are interested in 'Money back' policies than others * Most of them are interested in insuring for an amount of Rs. gold. * 'Prevention of Loss'. real estate.

. Ltd..... * ICICI Prudential Life Insurance Company Ltd...Private Players in Indian Life Insurance The major players in Indian life insurance sector include: * Allianz Bajaj Life Insurance Company Ltd. * Life Insurance Corporation of India * Max New York Life Insurance Co. Ltd. * ING Vysya Life Insurance Company Private Ltd... Ltd. * Aviva Life Insurance Co. * HDFC Standard Life Insurance Company Ltd. * Sahara India Insurance Company Ltd. * Tata AIG Life Insurance Company Ltd.. .. * Birla Sun Life Insurance Company Ltd.. * AMP SANMAR Assurance Company Ltd. * SBI Life Insurance Company Ltd. Ltd. India Pvt. * MetLife India Insurance Company Pvt.. * Om Kotak Mahindra Life Insurance Co.

The market share for LIC is 60 percent and other players share only the remaining 40 percent. COMPANY PRODUCT .

TA Met-Mortgage Protector SP/Limited pay (MRTA) . But we can certainly equip you to deal with life better.Single Pay Met Smart Premier .TROP • • Met Suraksha . Please find below the various products offered by MetLife to suit your specific need: • Accumulation • Whole Life Policy • • • Met 100.Product Details No one can give you all the answers when it comes to dealing with life's ups and downs.Participating Met 100.Single Pay • Protection • Met Suraksha .Limited Pay Whole life Participating MET Suvidha Met Sukh Money Back Non Participating Met Bhavishya Endowment Policy • • Money Back Policy • • • Multi Purpose • Met Smart Plus • • • Met Smart Premier Met Smart Plus .Limited Pay Whole life Non .

• Retirement • • MET Pension .Participating Deferred Annuity MET Advantage Plus • Add Ons • Accidental Death Benefit (ADB) • • Term Rider Waiver Of Premium .


Pension plan details Maturity Maturity amt amt Annual (@6%) (@10%) premium (Rs) (Rs) (Rs) 13. For.000 30 .590. Apart from the tax benefits. On maturity this corpus is invested for generating a regular income stream.000. However. investments in such plans have been somewhat subdued. What are pension plans? Simply put.500 960. which are taken to cover risk in case of an unfortunate event. Pension plans are distinct from life insurance plans. This article takes a closer look at pension plans and the role they play in the individual's retirement planning exercise.PENSION PLAN Pension plans offered by life insurance companies help individuals plan effectively for their retirement. since the tax benefit on such plans is limited to Rs 10.500 Sum assured Tenure Age (Yrs) (Rs) (Yrs) 30 500. it is important that individuals evaluate pension plans from a retirement planning perspective. which is referred to as pension or annuity. it is pension plans that provide individuals with a regular income in their golden years. pension plans (also referred to as retirement plans) are offered by insurance companies to help individuals build a retirement corpus.000 1.

90.10% (for the 6% figure) or 7.80% (for the 10% figure). if any.000 for a 30-year tenure. In case of an eventuality.500 The example given above is illustrative. .500). However.10 Annuity amt (Rs) 71. .500 (on Rs 15. the returns shown at 6% and 10% are not calculated on the premium paid. Let us take an individual aged 30 years who wants to buy a pension plan with a sum assured of Rs 500.500. The option of receiving monthly/quarterly/half-yearly pension is available with most life insurance companies. the beneficiary will stand to get the sum assured of Rs 500. the annual amount he would get as pension would be approximately Rs 71.500 7.000) or Rs 118. It will differ across insurance companies.80 118.000 plus the bonuses/additions. he will stand to benefit to the tune of the maturity amount as indicated in the table below. Assuming that he buys an annuity for life. In case the individual survives the tenure. They are calculated after deducting expenses from the premium.500 (on Rs 960. The actual compounded annual growth rate (CAGR) on the premium works out to approximately 5.Actual rate of return (%) 5. The premium to be paid for the same is approximately Rs 13.

The difference in objectives is the main reason for the differences in the features of life insurance and pension plans. Nominees/ beneficiaries have the option of receiving either the entire maturity amt or Full maturity amount received by investing up to 2/3rd of the amt in an the nominees/ beneficiaries annuity. Life insurance plans aim at covering the risk from an unfortunate event. Spot the difference Conventional insurance plans Pension plans Maturity payouts Only up to one-third of the maturity amt can be withdrawn.000 available under available under Section 80C Section 80CCC. Remaining 2/3rd amt Full maturity amount received by has to be compulsorily invested in an the individual annuity. being the most important. with the objective behind both of them. Deduction up to Rs 100. Pension plans on the other hand work on the opposite scenario that if an individual survives beyond an age (retirement age). he will need to provide for himself.000 Deduction up to Rs 10. Death benefits Tax benefits .Difference between conventional life insurance plans and pension plans There are some fundamental differences between life insurance plans and pension plans.

He will have to buy an annuity with (at least) the remaining two thirds amounts from any life insurer of his choice. Also. In case of an eventuality. pension. provides for a regular stream for a stream of income by way of of income. Not all pension plans offer a life cover (as already covered above). the individual receives the entire corpus on maturity. Tax benefits . However. the individual has the option of withdrawing up to one third of the maturity amount in cash. 3. Pension Taxation of Entire maturity amt treated as tax received on the remaining 2/3rd amt is maturity payouts free in the hands of the receiver taxed as per the individual's tax slab Entire maturity amt/ death benefit received in one go. in case of a pension plan.Up to 1/3rd of the maturity amt. if withdrawn. the nominee has the option of receiving the entire amount on maturity in cash and buying an annuity with the same. Maturity payouts In case of conventional insurance plans. option of pension benefits available Stream of income 1. the nominees receive the sum assured plus the bonuses/ additions if any. is treated as tax-free. No provision On maturity. in case of pension plans. 2. Death benefits In case of an eventuality under life insurance plans.

premium payments towards pension plans are eligible for deduction under Section 80CCC. In case of conventional plans. For example.Premium paid up to Rs 100. it is slightly different in case of pension plans. The pension.000 for a pension plan.000 only. the individual receives the entire maturity amount in lump sum. However. Income stream On maturity.000 less Rs 10.000. which can be withdrawn. Rs 100. Taxation of maturity payouts The maturity amount in case of conventional insurance plans is treated as tax free in the hands of the individual. is treated as tax free in the hands of the individual. the limit being set at Rs 10.000).000 (i. .000 per annum is eligible for deduction under Section 80C in case of insurance plans. 5. then the tax benefit of Rs 10.000. is taxed according to the marginal rate of tax. However. Also.e. the deduction under Section 80CCC falls under the overall limit of Rs 100. if an individual pays a premium of Rs 15. pension plans provide a regular source of income by way of annuities. from the remaining two-thirds amount. Up to one third of the maturity amount. his overall tax benefit will stand reduced to Rs 90. 4. However.

Take some time to think about your lifestyle and how you're going to adapt. Like most things in life. Start by thinking about how you will replace your work routine with a retirement routine. No longer confined to the rigors of the professional world. MetLife has comprehensive plans that allow you to build a fund to enjoy financial security on retirement Enjoying Retirement THERE MAY BE SOME GLORIOUS DAYS AHEAD . You don't want to start this new phase of your life wondering what you'll do. you can spend your time doing what you want to do. however. Before the last day on your job. A time when you want to be sure that you are financially independent and secure.Retirement Planning There's a day in all our lives that we look forward to with anticipation and some anxiety too the first day of retirement. expect everything to fall magically into place.THE DAYS OF YOUR RETIREMENT. A time when finances are crucial. have an idea of how that first day of retirement will be filled. Don't. you'll get the most from retirement by planning. If getting up early for work has .

Now you have the time to indulge your wanderlust.always been drudgery. you may have longed to spend more time outdoors. enjoy it. schooling involves acquiring skills. Go to the library and develop a list of books you've always wanted to read. Whatever your interest in the outdoors. now is the time to let your active self take over. and make vacation planning your hobby when you're not roaming. factory or other building all day. . Turn your garden into the show place you know it can be. If sitting at a desk all day was against your nature. so maybe you've never had the opportunity to study something just for the sheer joy of learning. Early in life. In a way. • Outdoor activities. Here are just a few ideas to get you started: • Education. plan for a leisurely beginning to your day. and then dig in. • Hit the road. you don't have to rush like you did to catch the train or beat the traffic! The goal is to get the most out of a precious resource . Cooped up in an office. New Choices Ask yourself some important questions: What do you like to do? Were there things you longed to do but didn't have time for when you were working? These are the activities you should begin building your retirement days around. Go fishing or take up bird watching.your time. Make a list of the places you want to go. Just remember. these new activities may now be your job and can provide you with the most satisfaction.

cat. It may seem strange to think about reentering the work force just as you're leaving it. the knowledge that you're contributing .but this time on your terms. perhaps as a consultant or a part-time employee with valuable knowledge gained over the years. caring for a pet can be a rewarding experience. If you have the space and the desire. To do them well takes time. Others find that they're able to take a job they've always wanted. Perhaps you're someone who enjoys pets. give it first place now. find a way to get involved. something you had little of when you were working. Woodworking. You may even be able to continue with your previous employer. even though the pay isn't so great. but many people find that. Pets can be loyal companions and have positive effects on your well being. • Speak out. work can actually be enjoyable. Now you can perfect your craft. you could provide a good home for a dog. Some take jobs that don’t pay at all. Work has its own rewards-the regular contact with people.and you may find that there's still a place in your life for work. If an interest in politics and government has always played second fiddle to your career. Make a place at home where you can work with your hands to your heart's content. bird or fish. • Pet pleasure. work on someone else's pre-election campaign or keep tabs on legislations that affect you. and now that you have more time on your hands. To Work or Not to Work You may find that you want to go back to work . deciding volunteer work is the best way to use their retirement hours. Whether you run for elections. without the pressure to earn a paycheck.• Handwork. the feeling of being needed. . needlework and painting are just a few hands-on hobbies.

Again. Scheduling these visits while you're still employed allows you to take advantage of your health insurance. If you have to get new or supplemental health insurance. While you were working. vegetables and grains. and there are a variety of illnesses you're more prone to with age. your rates and coverage will be affected by your current health situation. To Your Health While you're planning your new lifestyle. you may find your eating habits relaxing a little.Volunteering allows you to use your life experiences. particularly for blood pressure and cholesterol level checks. After you retire. Have your eyes examined and your teeth cleaned and checked. schools or religious organizations. Just being aware this can happen may help you avoid it: Make a point of eating right by taking time to prepare healthful meals that are low in fat and high in nutritious foods such as fruits. get a thorough checkup from your doctor. There are numerous organizations that need help. Don't have one? Design one that's right for you! Moderate exercise is necessary to help maintain your health. Now those sources of motivation are gone and you may need to find a way to make sure you don't become a "couch potato. too. be sure to consider your health." Just as important is your diet. choose something you enjoy and are familiar with. Other possibilities include local hospitals. If you had a regular exercise routine. your three square meals a day may have revolved around your work schedule. With a relaxed schedule. Start by thinking about your exercise routine. you may have less coverage. If you decide to volunteer. the demands of your job may have helped to keep you physically fit. too. Your health is likely to change over time. Think of the long term. that way. skills and talents to help others in your community. your work schedule probably helped keep you on track. So. don't forgo regular preventive health visits. you'll be volunteering some time while dealing with people who have interests similar to yours. Talk to your doctor about your . Before you retire. too.

with the changing times and the career-oriented focus of the younger society. Ask about the symptoms you should watch out for. Start by asking yourself how well your current home works for you. for example. you will have to decide on your own whether you will be able to handle a joint family. Remember. your life is going to change with retirement. What’s more. and. shop around and don't allow yourself to be pressured into a quick decision. take a close look at your insurance situation and decide whether you need extra insurance. Most retirement experts advise staying close to loved ones. Look ahead and consider how well this home will meet your future needs. think about the size of the house and property and the amount of upkeep required. it is quite probable that you are from that generation where the joint family system was held at high esteem. Also. Many folks have paid off their loans by the time they retire. Joint family vs. if you could work out a joint family with your children nothing like it. Choosing a supplemental health policy can be complicated. If you own your home. Do your homework. If. so think about the expense of maintaining your home. Home Sweet Home At some point you may want to evaluate housing alternatives for your retirement. if not under the same roof. Here are some pros and cons: .family's health history and the likelihood that you'll develop a problem. However. so keeping your relationships in place gives you a good support system to help you deal with the change. you're finding it difficult to climb stairs in your two-story. But before heading off for a change of scenery. get medical help whenever necessary. but others have not. think about how far you would be from family and friends. of course. Nuclear If you are reading this now. it may be time for a move.

health insurance if your retirement plan doesn't provide it. To get a complete picture of your financial resources. if you're expecting a lump-sum payment from your provident fund or gratuity. as elders you do not have to worry about your security or ill-health your children will be there to take care of you You could alternate as a life guide to your grandchildren . pensions.• In a joint family. be prepared to make the choice as to how you will handle it Evaluate the costs of the retirement lifestyle you envision. Think of this . And be sure to figure in taxes . savings and any other investments in your equation. Then talk to a professional about how best to allocate those resources and get an idea of how much income your investments will generate. Also. So before you finalize retirement plans. you may want to consider professional assistance. the only con might be your state of mind .in turn they will shower you with love and affection all the way • • You could cut down on the expenses otherwise far can you adjust to your new role Get Your Financial House in Order Without adequate financing. many of your retirement dreams may remain just that .dreams. Think about added expenses-for example. they don't stop just because you stopped working.unfortunately. if you choose to live away from your children • Of course.

Happy days ahead! .Participating Deferred Annuity Suitability The plan is suitable for those who want • • • Financial security after retirement Tax benefit throughout the premium paying term Multiple premium paying option Salient Features • MET Pension is structured as a participating endowment and a participating immediate annuity. . MET Pension .exercise as a reality check. You're sure to feel more comfortable with the retirement decisions you make after doing the math.

Reversionary Bonus: It is an insurance amount in addition to the face amount. Benefits . limited (3 year and 5 years) and regular pay. • Choose from various premiums paying term namely single.Life annuity. Terminal Bonus: if any. the reversionary bonus is payable. A one-time lump sum addition equal to 10% of the face amount is payable along with the maturity proceeds. Quarterly. The bonus will be credited at rates as declared by the company. would be a % of accrued reversionary bonus. Semi-Annual. mortality. together with the face amount. Both Reversionary and Terminal Bonus are not guaranteed as they are based on the company's actual investment returns. which becomes payable on maturity or on death.  • • • • No Bonus is payable for first two policy years. 10 lakhs). MetLife gives you only one annuity option namely . on the policy anniversary. Thereafter a bonus as declared by the company will be credited as reversionary bonus on the policy anniversary. The plan is a Participating one.660 in tax for every year of premium payment subject to conditions given under income tax 1961 (* For person having a taxable income of above Rs. on death of the insured person or maturity of the policy. If declared and vested. Withdraw up to 33% of the annuity amount tax-free and chose to buy an annuity with the balance amount from not only MetLife but also any other insurance company. Monthly and Payroll Savings Program (PSP). persistency and expense experience    • The Premium modes available are: Annual.• Save up to Rs 33. if it occurs after the 10th policy anniversary. Company may also declare terminal bonus.

Death Benefit • Endowment phase: In case of the death of the policy holder during the endowment phase. there will be return of premium plus reversionary bonus if any Immediate annuity phase: There will be no death benefit during the annuity phase for the beneficiary of the policy • Maturity Benefit • The amount of maturity benefit at the end of the endowment phase is equal to the face amount plus guaranteed addition plus attached reversionary bonuses. 00. 3 year limited pay. • 1/3 of the maturity benefit will be paid out to you as a lump sum. tax-free. Ajay is a 27-year-old man working in an IT company in Pune having annual Taxable Income 6 lakhs. 5 year limited pay. The balance must be used to convert into a life annuity either with MetLife India Insurance or with any other insurance company offering annuities. if any plus terminal bonus. The following options are available for MET Pension: • • • • Single Pay. Regular Pay. if any. He .000. He buys a Met Pension policy with a sum assured of Rs 5. Illustration Mr.

deduction under Sec 80 C. Other Conditions • Minimum Entry age: Age 18 years last birthday .874 * The Annuities calculations shown in the table below are based on the current annuity rates and the assumptions taken in the benefit illustration.127 What You Pay Annually Annual Premium Paid on Basic Policy (Rs.920 41.000. Illustrated (Returns Illustrated (Returns at 3%) 519.000 550. 80 CCC and 80 CCD cannot exceed Rs.60% /20.000 1.040 at 6%) 519.550 5.) 519.40% /10.000 18.676 Net Annual Premium if tax savings are considered (Rs.) Total Maturity amount at vesting (Rs.66% of the amount eligible under Section 80CCC. The Annuity shown in the table are indicative and are not guaranteed.) Annual Tax Savings u/c 80CCC (Rs.07. The total premiums paid would be Rs 18.00.20% Note : From the assessment year 2006 . ** If the Annual Taxable Income is more than Rs.000 2.590.797 89. 10.a.215.1.550/-.00.000 then the tax savings will be 33.)** 18.chooses a vesting age (retirement) of 55 years. else 30. p.) Amount receivable under Life Annuity *(Rs.) 12.895 Guaranteed Total Premium Paid (Rs. This vesting age would be the age when the annuity would start.

less any expenses incurred by us. . 4. the benefit is restricted to the extent of refunding the premium(s) received without interest. if any. 50. within one year from the effective date of insurance cover or the date of the Policy or the date of the last reinstatement whichever is later.000 Minimum premium Amount: Annualized premium of Rs.000 (not inclusive of the Rider Premium) Minimum policy term of 10 years • Exclusions • In the event the Insured committing suicide.• • • • Minimum age for vesting age (retirement): Age 45 years last birthday Maximum age for vesting age (retirement): Age 70 years last birthday Minimum Face amount: Rs. whether sane or insane at that time.

In India. to tread its path to build financial freedom for everyone. with approximately US $2.8 trillion of life insuranceinforce. The MetLife companies are also ranked #1 in-group life and #1 in commercial dental in the U. and technology-backed service experience. The MetLife companies are a leader in-group benefits that serve 88 of the top one hundred FORTUNE 500®* companies. and aims to differentiate itself through customized need based selling.Company Profile MetLife With over 137 years of experience. the MetLife companies serve millions of customers in the Americas and Asia with one goal in mind – to build financial freedom for everyone. The MetLife companies are the number one life insurer in the U.S.S. MetLife was incorporated in 2001.S. simple and innovative products. and provide benefits to 37 million employees and family members through its plans sponsors in the U. .

For instance. but also act as wealth accumulation or investment avenues. Since each one of us. which. And the insurance industry is constantly evolving. the returns of which you can enjoy at the most critical phases of your life – for instance. during our lives are faced with numerous risks – failing health. you have a variety of risk coverage options. We have attempted to cover this site with some comprehensive information on life insurance. However. at the time of your child’s admission into one of those dream institutes. it softens the economic crisis that usually accompanies these losses. products in the market range from whole life insurance to covering risks associated with home loans. support from the extended family cannot be counted upon. Though an insurance cover can’t protect you against the emotional losses arising out of these risks. you now have a wider option of insurers – presenting you with products that not only cover those risks. now you could choose life insurance as an investment option. financial losses. now.Why I need Insurance Life Insurance is a contract by which you can protect yourself against specific losses by paying a premium over a period of time. What’s more. or an informed customer. With the Insurance Industry going through positive changes in the last few decades. you could always get valuable information from us. So it is vital that you have an insurance cover as the protective shield against unfortunate losses. in a nuclear family. Unlike in the traditional joint family system. So. And it’s not only your life you could insure against those risks. you should definitely avail of. our instinct drives us to cover ourselves against those risks. Life Insurance gains much more value if you are a nuclear family. accidents and even fatalities. do not hesitate to leave a note for our Financial . Whether you are new to insurance.

Not only they could provide you with the additional information you might be looking for. Mission / Vision / Values Our Vision and Mission Build financial freedom for all through leadership in providing financial advice and building long-term relationships through innovative protection.Advisors. Our Core Values . associates and society. We want to provide customers in India with world-class solutions for financial security. The insurance is also defined as a social device to accumulate funds to meet the uncertain losses arising through a certain risk to a person injured against the risk. and in the process add significant value to our shareholders. Risk is uncertainty of a financial loss. accumulation and retirement products. they can also help you assess your life insurance needs and invest wisely Insurance is defined as a cooperative device to spread the loss caused by a particular risk over a number of persons who are exposed to it and who agree to ensure themselves against that risk. robust underwriting processes and creating world-class customer service experience for our customers.

Fairness and Financial Prudence in all our dealings keeping the interests of our Shareholders. And update our products with features that form the cornerstones of financial freedom. J&K Bank UTI Bank Dhanlakshmi Bank . Customers and Associates paramount • Corporate Partners As the vital channel for MetLife’s products. we have chosen some exemplary banks and financial institutions. As a result we will also be recognized as an Employer of Choice • • We are committed to Partnering with our internal and external Customers for mutual success We work with Integrity. These will serve as the interface between our customers and us to aid us understand the unique needs and aspirations of every Indian.• We lead through Innovation to offer world class and competitive products to our customers We build Long Term Relationships with our customers by creating a world class service experience through operational excellence and the innovative use of technology • • We create a Customer Centered and Result Focused Vision that inspires each one of our Associates and has their buy-in We are committed to creating a High Performance Organization by creating an environment that allows each one of our Associates to perform at their peak.

Boundaries.Integrity. Each of the values describe what the company stands for. there are no limits to our growth. This we hope to achieve by: • Understanding the needs of customers and offering them superior products and service Leveraging technology to service customers quickly. where we can play a significant role in redefining and reshaping the sector. Ownership and Passion. the qualities of our people and the way we work.Karnataka Bank Vision: To make METLIFE the dominant Life and Pensions player built on trust by world-class people and service. building transparency in all our dealings. efficiently and conveniently Developing and implementing superior risk management and investment strategies to offer sustainable and stable returns to our policyholders Providing an enabling environment to foster growth and learning for our employees And above all. We do believe that we are on the threshold of an exciting new opportunity. Given the quality of our parentage and the commitment of our team. • • • • The success of the company will be founded in its unflinching commitment to 5 core values -. . Customer First.

Bancassurance & Business Partnership P Sankaran Deputy Director. Business Support . Agency Sales KP Sharma Appointed Actuary Sameer Bansal Deputy Director.Management Rajesh Relan Managing Director Chandar Chellani Officer.

MS Suresh General Manager, Employee Benefits KR Anil Kumar Chief-Planning and Financial Controller KS Raghavan Director, Information Technology Pankaj Raj Deputy Director, Marketing Vijay Raghavan Deputy Director, Strategic Initiatives & Business Transformation

GROWTH RATE IN INSURANCE INDUSTRY 2005 Pvt. Sector insurance growth rate (Premium) LIC growth rate (Premium) Industry growth rate (Premium) MetLife India growth rate (Premium) 84% -2% 17% 128 % 2006 98% 121% 113% 136 %

MetLife Presence Branches Cities

2006 42 30

2007 161 112

2008 191 135

J& K H P U L ’CH HA A Delhi R UP RA J


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1. To examine the costumer awareness and perception about pension plan provided by insurance company. 2. To evaluate marketing practices adopted by METLIFE about pension plan policy.

b) SAMPLE SIZE AND TECHNIQUES: The sample size is . as formulative research. compelled to follow certain scientific rules or steps and stipulation.RESEARCH METHODOLOGY RESEARCH METHODOLOGY Research Methodology means the procedure for conducting a systematic and planned approach to carry out research project for the purpose of achieving the objectives. The design of research is exploratory also termed. planning and executive the research. A useful research is. The major emphasis was a discovery of ideas and insights. The content of research methodology are stated below: a) RESEARCH DESIGN: The research is exploratory in nature. therefore.

journals. .50 policyholders on the basis of Convenience sampling. and magazines. SECONDARY DATA: Secondary data is collected through websites. • • PRIMARY DATA: The primary data is collected through survey method. c) DATA COLLECTION: To get required information data collected is primary and secondary. By the instruments structured questionnaire and personal interviews. • Another limitation was lack of professional knowledge. Another limitation was that some staff members were either reducing or hesitated to provide the required information. The trainee being a student may not be able to analyses the data as a professional could do. Sometime respondents don’t want to disclose some relevant information. LIMITATION OF STUDY • • • Time is very limited.


Question 1: Are you satisfied with the plan being provided to you by METLIFE? 1) Satisfied 2) Not satisfied -46 -4 8% satisfied unsatisfied 92% INTERPRETATION In this question 46 respondents are satisfied with the plan provided by METLIFE while 4 of the respondent are unsatisfied by the services. .

Question 2: Do you feel the timings to avail this plan is right. RESULT: Ample number of plan holders is satisfied. .RESULT: Greater number of plan holder is satisfied. 1) Satisfied -47 2) Unsatisfied -3 50 40 30 20 10 0 satisfied unsatisfied Series1 INTERPRETATION In this question 47 respondents are satisfied with the timings for availing the plan while 3 are unsatisfied.

RESULT: Mostly plan holders are satisfied. .Question 3: Are you satisfied with the METLIFE agents dealing with this pension plan? 1) Satisfied -44 2) Unsatisfied -6 12% satisfied unsatisfied 88% INTERPRETATION In this question 44 respondents are satisfied with the dealings of the agents of METLIFE While 6 of the respondents are unsatisfied with the dealings and behavior of agents.

Question 4: Do you feel that this service of plan is really beneficial for you? 1) Beneficial -44 2) Not beneficial -6 50 40 30 20 10 0 benificial not benificial Series1 INTERPRETATION In this question 44 of the respondents have responded that this services is really beneficial while 6 of the respondents are unsatisfied with this services. RESULT: Majority has responded that the services are really beneficial. .

. RESULT: Mostly plan holders don’t require it. 1) Required 2) Not required -23 -27 27 26 25 24 23 22 21 required not required Series1 INTERPRETATION In this question 23 of the respondents required updates of plan while 27 of the respondent don’t require.Question 5: Do you require any constant updates or guidance related to this Pension plan.

1 of them had no knowledge and 40 are not commented upon. .Question 6: Are you being provided any extra facility with this plan? 1) Having full knowledge –1 2) Having part knowledge –8 3) Having no knowledge-1 4) Not commented -40 40 35 30 25 20 15 10 5 0 Having full knowledge Series1 Not commented IERPRETATION In this question only 1 respondent had full knowledge about the extra facilities while 8 are having part knowledge only. RESULT: Ample number of respondents has not commented.

RESULT: Majority of the plan holders has replied in positive. .Question 7: Is the METLIFE providing any security on this plan? 1) Yes 2) No -38 -2 3) Not commented -10 20% 4% Yes No Not commented 76% INTERPRETATION In this question 38 respondents are stated that security is provided by METLIFE while 2 have replied in negative and 10 have not commented.

Question 8: Have you applied other plan for your family? 1) Yes 2) No 3) Not disclosed -15 -34 -1 2% 30% yes no not disclosed 68% INTERPRETATION In this question 15 have applied. . RESULT: Maximum number of plan holders hasn’t applied. while 34 haven’t applied and 1 hasn’t commented.


68% say that they applied other plan for there family and 30% say no.FINDINGS After the thorough research program some findings are there which I found and these are. 88% are satisfied with the dealing of the agents of METLIFE. 94% are satisfied with the timing. 88% think that plan provided to them is beneficial. • • • • 92% are satisfied with the plan of METLIFE. 46% say that they require updates and guidance and 54% don’t require any updates and guidance. . • • 76% says that MetLife provide security for their service and 4% says no.

Agents should have sufficient knowledge about plan while dealing with customer. Proper advertisement should be made to aware the people about the plans.IMPLICATION The following are some of the suggestion and recommendation that have evolved out after analysis of the study entitled” ANALYSIS OF CUSTOMER PERCEPTION ABOUT PENSION PLAN” METLIFE. • • • • • • • Better services should be provided to the customer. Most of the people are satisfied and happy with the future security of the plan and more of the people are also applying for other plan for their families. CONCLUSION Most of the people are satisfied with the services provided by the company and the timings of the services. Proper information should be provided on their forms monthly. . Online premium facility should be provided to customer. Many people think that the services provide many benefit to them but few people say that they are not provided proper guidance’s and updates and expect the company to provide them. Constant updates or guidance should be provided to customer on time. Grace period should be given to customer while paying premium. Clients are also satisfied the dealings of the agents done with them.


Marketing Research. WEBSITES • • www. Millennium Economics Times. New . New Delhi. 1990.BIBLIOGRAPHY BOOKS • • www. MAGAZINES AND NEWSPAPER • • • • Annual Report of METLIFE. METLIFE Circular and Instruction. Vishwas Tata Mc Graw Hill. CR Research methodology. Beri.2000. Times of India.


.QUESTIONNAIRE PLAN HOLDERS Name…………………………… Occupation……………………. Age……………………………… Question 1): Are you satisfied with the plan being provided to you by METLIFE? Yes No Question 2): Do you feel the timings to avail this plan is right? Yes No Question 3): Are you satisfied with the MetLife agents dealing with this plan? Yes No Question 4): Do you feel that this service of plan is really beneficial for you? Yes No .

Yes No Question 6): Are you being provided any extra facility with this plan? Yes No Question 7): Is the METLIFE providing any security on this plan? Yes No Question 8): Have you applied other plan for your family? Yes No .Question 5): Do you require any constant updates or guidance related to this plan.