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SUMMER TRAINING PROJECT REPORT ON

STUDY OF PRODUCT PORTFOLIO OF
BIRLA SUN LIFE INSURANCE CO. LTD

Submitted To

Sahibzada Ajit Singh Institute of Information Technology & Research

Session
2008-11

On partial fulfilment of the requirement for the degree
Bachelor of Business Administration (BBA)

Project Guide:
Ms. Monika Sharma
Internal Project Guide

Submitted By:
Aazam Abdal
SAS IIT&R MOHALI
Roll no. 81010320001

ACKNOWLEDGEMENT

I would like to express our sincere gratitude and thanks to Mr.
Ayaaz Akhtar, Agency Manager, Birla sun life insurance ltd,
Malerkotla for giving me the guidance. I owe everything i have
gained from the project in terms of knowledge and experience to
them, as without their timely support and encouragement the
project would not have been as fruitful as it has been.

I

also

thank

Ms.

Monika

Sharma

for

their

constant

encouragement and guidance at every stage of this project, acting
as my faculty guide. She has been kind enough to spare his
valuable time and share his corporate experiences, which helped
me to approach the project in the right way.

I am grateful also to the entire staff of Birla sun life insurance ltd
who helped me to collect the relevant data and get the real gist of
current scenario.

I would also like to extend sincere thanks to few people who were
not part of our project but without their help things would not have
been as easy as they were.

THANK YOU ALL
Aazam Abdal (BBA 5th)

CONTENTS
1. Introduction to insurance

2. Objectives
3. Fundamental principles of insurance
4. Reasons for taking a life insurance policy
5. Vision, Mission, Values
6. Company Profile
7. Sales Procedure
8. Company’s Products
8.1 Flexi Plans
8.2Classic Life Premier
8.3 Gold plus II Plan
8.4 Supreme Life Plan
8.5 Platinum plus Plan
9. Funds by BSLI
10. Conclusion
11. Recommendation
12. Bibliography
13. Annexure

“Insurance,

in law and economics, is a form of risk

management primarily used to hedge against the risk of a
contingent loss. Insurance is defined as the equitable
transfer of the risk of a loss, from one entity to another, in
exchange for a premium. An insurer is a company selling
the insurance. The insurance rate is a factor used to
determine the amount, called the premium, to be charged
for a certain amount of insurance coverage. Risk
management, the practice of appraising and controlling
risk, has evolved as a discrete field of study and practice.”
The evolution of human beings from the primordial ‘wild’
stage to the ‘cave dwelling’ stage is nothing but their saga
of search for security. Their quest for security is eternal.
Life insurance is a device invented by them to seek security
against the most important hazards against which they
found themselves quite helpless. It will not be an
exaggeration to say that progress of civilization is due to
human beings’ unending pursuit for security.
Life insurance in its modern form is a western concept.
Although it started taking shape since last 300 years, it
came to India with the arrival of the Europeans .the first life
insurance company was established in India in 1818 as
oriental life insurance company mainly by Europeans to
provide for widows of Europeans. The companies that
followed mainly catered to Europeans and charge extra
premium on Indians lives. The first Indian company,
insuring Indian lives at standard rates, was Bombay mutual
life insurance company, which was formed in 1870.this was

. To compare the return of various plans.the year also when the first Insurance Act was passed by the British parliament. To study the different types of plan of birla sun life insurance.the government of India effectively ended LIC’s monopoly and opened the doors for private insurance companies Objectives:1.By enacting the IRDA Act 2000. 3. 2. The years subsequent to the Swedishi Movement saw the emerging of several insurance companies. These companies were nationalized in 1956 and brought under one umbrella – the life insurance corporation of India. till almost up to the end of year 2000. To know about the most preferable plans for consumer. The end of the year 1955. there were 245 insurance companies and provident societies out of which 16 were non-Indian companies. which enjoyed monopoly of life insurance business.

which goes to the root of the contract of insurance and has a bearing on the risk involved. Any fact is material. In a contract of insurance the insured knows more about the subject matter of the contract than the insurer. This means that the insured. Consequently. as if his loss had not taken place at all. B) UTMOST GOOD FAITH Since insurance shifts risk from one party to another. after the loss. he shall be fully indemnified.e. burglary or any other policy excepting life assurance and personal accident and sickness insurance) is a contract of indemnity. he is duty bound to disclose accurately all material facts and nothing should be withheld or concealed.FUNDAMENTAL PRINCIPLES OF INSURANCE Some useful terms in Insurance: A) INDEMNITY A contract of insurance contained in a fire. It would be against public policy to allow an insured to make a profit out of his loss or damage. It is . it is essential that there must be utmost good faith and mutual confidence between the insured and the insurer. The object of every contract of insurance is to place the insured in the same financial position. in case of loss against which the policy has been issued. marine. shall be paid the actual amount of loss not exceeding the amount of the policy. i. as nearly as possible.

The rule of causa proxima means that the cause of the loss must be proximate or immediate and not remote. So. all these persons have something at stake and all of them have insurable interest. It is the existence of insurable interest in a contract of insurance. D) Causa Proxima . the charterer of the ship runs a risk of losing his freight and the owner of the cargo incurs the risk of losing his goods and profit. If that were so.only when the insurer knows the whole truth that he is in a position to judge (a) Whether he should accept the risk and (b) What premium he should charge. the insured might be tempted to bring about the event insured against in order to get money. If the proximate cause of the loss is a peril . It means that the insured must have an actual pecuniary interest and not a mere anxiety or sentimental interest in the subject matter of the insurance. C) Insurable Interest .A contract of insurance affected without insurable interest is void. The insured must be so situated with regard to the thing insured that he would have benefit by its existence and loss from its destruction. which distinguishes it from a mere watering agreement. The owner of a ship run a risk of losing his ship.

the question arises as to which is the causa proxima. E) Risk .In the event of some mishap to the insured property. not bound to do so at the risk of his life. risk must attach to a policy. F) Mitigation of Loss .In a contract of insurance the insurer undertakes to protect the insured from a specified loss and the insurer receive a premium for running the risk of such loss. Thus. all rights and remedies which he has against . although the result could not have happened without the remote cause. the insured must take all necessary steps to mitigate or minimize the loss. the insurer can avoid the payment of loss attributable to his negligence. When a loss has been brought about by two or more causes. If he does not do so.The doctrine of subrogation is a corollary to the principle of indemnity and applies only to fire and marine insurance.insured against. when an insured has received full indemnity in respect of his loss. But it must be remembered that though the insured is bound to do his best for his insurer. the insured can recover. G) Subrogation . According to it. the insurer is not liable. But if the loss is brought about by any cause attributable to the misconduct of the insured. he is. just as any prudent person would do in those circumstances.

the principle of contribution comes into play. Any one insurer may pay to the insured the full amount of the loss covered by the policy and then become entitled to contribution from his co-insurers in proportion to the amount which each has undertaken to pay in case of loss of the same subject-matter. the right of contribution arises when 1) There are different policies. In other words.Third person will pass on to the insurer and will be exercised for his benefit until he (the insurer) recoups the amount he has paid under the policy. and . which relate to the same subject matter 2) The policies cover the same peril which caused the loss. H) Contribution . The aim of contribution is to distribute the actual amount of loss among the different insurers who are liable for the same risk under different policies in respect of the same subject matter.Where there are two or more insurance on one risk. and 3) All the policies are in force at the time of the loss. It must be clarified here that the Insurer’s right of subrogation arises only when he has paid for the loss for which he is liable under the policy and this right extends only to the rights and remedies available to the insured in respect of the thing to which the contract of insurance relates.

However it is also important to note that the age at which People die is also ever decreasing. and some natural calamities.4) One of the insurers has paid to the insured more than his share of the loss. This necessitates people to make adequate measures to yield income for their family and dependents. The following reasons substantiate why a life insurance policy should be taken: A) Early Deaths The mortality rate is experiencing a declining trend in many parts of the world. pollution. stress. It has generated lots of job opportunities. Some individuals see this as an option to plan their retirement. It is looked upon as a lucrative career option. Life insurance companies have also entered the international business scenario. This could be a serious concern if the insured happens to be the sole breadwinner. Life insurance policies have helped trade and other economic activities to flourish in a great manner. Life Insurance Policy is a form of security for the person who insures his life and his family. Some reasons for this include unhealthy living style. .

This results in an increased spending at an old age. Insurance option is more or less an interest free loan. It also Makes sure that an individual is able to meticulously plan his finances. C) Increase in the Cost of Living and Spending Power The purchasing power of the consumers and the standard of living has experienced a steep rise over the years. An individual can cancel his insurance policy and obtain a . The increase in National Income and gross domestic product are Partly responsible for this. Insurance comes in handy to meet such an unexpected expense. This increased spending is also due to increase in the costs of living apart from paying expensive medical bills. Unless they invest in Life insurance or other forms of insurance like health insurance it becomes next only too impossible to meet the financial demands especially during the old days. This is mainly due to the advancement in healthcare and the awareness on medical facilities. Individuals incur many unexpected expenses due to the growing needs.B) Advancements in Health Care The mortality rate has declined rapidly even though the fact remains that the number of people who die at an early age is on the increase.

. VISION To be a world class provider of financial security to individuals and corporates and to be amongst the top three private sectors life insurance companies in India. Since the investments increases the economic activities in the country automatically increases. D) Tax Concessions Income tax concessions are available to individuals and corporate houses that adopt insurance policies. Life insurance companies therefore do the needful to consumers. Many have been making investments in Insurance with the sole aim of enjoying tax benefits. This naturally increases spending power.huge amount if it is imperative in meeting an urgent expenses and he does not have alternative sources for finance.

within the regulatory framework. We will provide career development opportunities to our employees and The highest possible returns to our shareholders.MISSION To be the first preference of our customers by providing innovative. VALUES  Integrity: Honesty in every action. Our endeavor will be to provide constant value addition to customers throughout their relationship with us. These solutions will be made available by well-trained professionals through a multi channel distribution network and Superior technology. need based life insurance and retirement solutions to individuals as well as corporates.  Commitment: Deliver on the promise .

The local knowledge of the Aditya Birla Group combined with the expertise of Sun Life Financial Inc. a leading International Financial Services Organization. Some of the key organizations with the group are Hindalco.. The group is India's leading business house with a number of key organizations. Passion: Energized action  Seamlessness: Boundary less in letter & spirit  Speed: One step ahead always COMPANY PROFILE Birla Sun Life – A Coming Together Of Values Birla Sun Life is a joint venture between The Aditya Birla Group. Kumar Manglam Birla. The Aditya Birla Group is led by its chairman. Grasim.Mr. offers a formidable protection for our future. Aditya Birla Nuvo. The Group has over 88000 employees across all its units worldwide. These are as follows: . etc. one of the largest business house in India and Sun Life Financial Inc.

Ltd 8. Birla Sun Life Insurance Co. 12. Birla Sun Life Asset Mgmt.1. Indonesia. the United Kingdom. Hindalco 4. Birla Sun Life Distribution Co. Aditya Birla Nuvo 6. Japan. China and Bermuda. Co. Wealth Management . Sun Life Financial Inc. Grasim 2. Idea Cellular Ltd. Ltd 10. including Canada. The group has 3 businesses: 1. India. 7. UltraTech Cement Ltd 3. Mutual Funds 2.Ltd 9. Indian Aluminium Company Ltd 5. Hong Kong. Share Holding Pattern: In Birla-Sun Life. Indo Gulf Fertilizers Ltd. is a leading player in the life insurance market in Canada. the Philippines. the United States. Birla Global Finance Ltd Sun Life Financial Inc. and its partners today have operations in key markets worldwide. the two companies are having shareholding pattern as follows: 74 %--> Aditya Birla Group 26 %--> Sun Life Financial Inc. PSI Data Systems 11.

is the Life-Insurance arm of Birla-Sun Life Birla Sun Life Insurance in its 7 successful years of operations has contributed significantly to the growth and development of life insurance industry in India. Being a customer centric company. It was the first player in the industry to sell its policies through the Bancassurance route and through the Internet. which brought a degree of transparency that was entirely new to the market. It was the first private sector player to introduce a Pure Term plan in the Indian market. which are now industry standards were introduced by BSLI.672 crores. offering a free look period on all policies. The process of getting sales illustrations signed by customers.3. The company has a capital base of more than Rs. BSLI has covered more than a million lives since inception and its customer base is spread across more than 1000 towns and cities in India. Many ONEs with Birla Sun Life Insurance: . This was supported by sales practices. It pioneered the launch of Unit Linked Life Insurance plans amongst the private players in India. All this has assisted the company in cementing its place amongst the leaders in the industry in terms of new business premium income. Life Insurance Birla Sun Life Insurance co ltd.

he can also return the policy. If he finds policy not worth opting for. Free Look Period: BSLI offers its policyholders with a free look period of 15 days. Bancassurance means to include Banks as one of the distribution channels with the company. A ULIP is an auspicious coming together of security from life 4. but at BSLI. Which means. 2. Bancassurance: BSLI pioneered Bancassurance in India. co. These plans provide the customer with a certain number of units. Unit Linked Life Insurance Plans: BSLI was the first in India to introduce Unit Linked Plans. The company not only has varying plans and funds. with their huge customer base and strong customer loyalty. rather also is a pioneer in many aspects. BSLI is the first company. people ensures this not to happen. 3. are a readymade platform to acquire new business on a more cost effective and sustainable basis. apart from securing the future they offer efficient returns. Client gets freedom to have an in-depth look over all the terms and conditions regarding his/her life-insurance policy. which realized that banks. insurance and earnings from investment.BSLI is a company that has a very unique contribution in the history of Insurance sector. These pioneering features of BSLI are as follows: 1. in the same way as a .

on 6% and 10%. Performance on two points of projections i. The cover is hassle free.mutual-fund holder gets units. 5. The life insurance cover comes at no extra cost to the investor.e. . ULIPs offer marketlinked returns to policyholders. Sales people of BSLI give demonstrations of fund 6. Now IRDA has also made it mandatory to have sales illustrations. Sales Illustrations: BSLI is the first company to introduce Sales Illustrations in the Insurance Industry. This plan comes along with free term insurance for an individual up to 55 years of age. a unique systematic investment plan offering an opportunity to create wealth with as little as Rs 1000 per month plus a life insurance cover of up to 100 times the monthly installment. All an investor needs to do is enroll for CSIP & sign a “Declaration of Good Health”. The investor need not go thru any medial test to avail of the life cover. In case of unfortunate demise of investor the insurance claim will be directly paid to the nominee by the insurance company (Birla Sun Life Insurance Company). BSLI’s has launched Century SIP.

CEO.  1st to disclose portfolio on a monthly basis. Others: Some other ONEs with BSLI are:  1st to issue daily NAVs of funds for better transparency.” Insurance cover to the investor would continue even after the SIP’s minimum maturity tenor of 3 years.Announcing the launch of Century SIP. Investment in this plan may be made through Electronic clearing system (ECS). Any individual between 18 to 46 years of age may invest in this plan. We wish to encourage the investment habit among investors by providing them life insurance cover. they can be accessed from BSLI website using your unique password. . 7.  Policyholders can view their policy details online. “This offering touches all aspects of an investor’s financial planning needs.  1st to have a distinct CRISIL benchmark. and Birla Sun Life MF said. direct debits or post dated cheques. Anil Kumar.

BSLI follows a set procedure of selling Insurance to the clients.28 stands cleared. For this. Sales Procedure of Insurance in BSLI: BSLI ensures that its policyholders get the best out of the policy offered to them by their Advisors. The sales procedure can be diagrammatically presented as follows: . Out of every 100 claims intimated to BSLI 98.  Also the average Turn Around Time (TAT) : (i) From the receipt of the last requirement till dispatch of cheque is 5 days and (ii) From intimation of claim till its decision & dispatch of cheque is 36 days.

at BSLI. Pitching the customer: The first and foremost thing is that. has to be very vigilant. Insurance is a Relationship oriented business. Insurance is not a very preferable product yet in India. co. Keeping this in mind BSLI also initiated Bancassurance. maintain relationships and make the most of their Goodwill. plays . Advisors. And. client should be ready to purchase the Insurance plan. where Banks’ image of being loyal to the customers.SUSPECTING PROSPECTING APPOINTMENT FIRST SALES CALL FOLLOW UPS SALES CLOSED OFFICE WORK This procedure can be stepped down as follows: 1. thus.

3. BSLI uses following routes for distributing their Product to general public: a. Direct Personal Contacts (through Advisors) b. Proposal Form: Now as client is ready to get insured. Bancassurance (through Banks) c. Existing Policyholders. Fund performance is shown on 6% and 10% projections. how a certain policy will perform or will give returns. Proposal form is a 4 page document that contains all the necessary information related to the Insured and the Owner of the policy. 2. If client find these projected returns suitable to his/her risk profile. he go for purchasing the policy. Personal Relations (through co.a major role in pitching the customer to buy Insurance. advisor gives him the proposal form and asks for all the documents required. Documents required along with the proposal form are:  Date-Of-Birth Proof  Address & ID Proof  Income Certificate  Medical Certificates (only if Insurer is a senior citizen) . Sales Illustration: BSLI is the first company to give demonstration of the fund performance i. BSLI Advisors give sales illustration. employees) d.e.

This assists the policyholders to manage their policy according to their risk profile. existing policyholders are satisfied with the services being provided by the advisor of the co. Flexi Plans Flexi Plans have three variants. BSLI provides the policyholders with monthly updates of the fund performance and also discloses the asset portfolio of the fund. Insurance co.4. change their fund allocation as well as the asset allocation in any fund. Flexi Lifeline (Whole of Life Plan) Features: . can Generate further business. only if. chosen by them. These variants are: 1. COMPANY PRODUCTS / PLANS All the plans associated with BSLI are Unit Linked Plans. Thus. Flexi Save Plus (Endowment Plan) 2. They can. BSLI keeps this in mind and Business Development Executives continuously track the needs of the policyholders. After Sales Service: Now after the Insurance is sold. Flexi Cash Flow (Money Back Plan) 3. follow-ups are required. Advisor needs to maintain good relations with the policyholder. thus.

3% on premium) or the Total Fund value. semi-annually.  Premium can be paid annually.  Three Investment Fund options are available with the policy and policyholder is free to switch between funds anytime during the tenure of the policy. This is a Unit Linked Plan with guaranteed returns.5000. 2.  For Quarterly modal premium less than Rs. Builder 3.  Policyholder can attach riders to the plan according to his/her needs. starting from the 6th policy year. quarterly and monthly Premium Invested: Collected Premium is invested in three Investment Fund Options.  The Sum Assured may be increased once in every 5 policy years.  Liquidity in the form of Partial withdrawals. Policyholder gets the higher of the guaranteed fund value (min.  Provides flexibility with Top-Up Facility. Enhancer Benefits: 1. Protector 2. payment can be made through ECS. Survival Benefits: . Maturity Benefits: At maturity. These funds are: 1.

where(a) Guaranteed Fund Value (b) Sum Assured % as stated below:  30% if the Coverage Benefit Period is 10 years.(i) At the end of every 5th Coverage Benefit Period and the remainder on maturity. they will continue to be a part of the Fund Value. an amount equals to the minimum of (a) or (b) mentioned below will be reduced from the guaranteed fund value and transferred to the holding account for the purpose of partial withdrawals. If survival benefits are not withdrawn. (ii) If the life insured is a minor. 3.  25% if the Coverage Benefit Period is 15 years. Death Benefits: .  20% if the Coverage Benefit Period is 20 years.  15% if the Coverage Benefit Period is 25 years. policyholder can withdraw the survival benefit payout within one month from the scheduled payout date from the fund value.

163 1. Classic Life Premier This is the plan that not only helps to save for the future but also helps to get rich benefits from the investments. The annual mortality charges per 1000 sum assured for sample ages are as follows: Age 20 30 40 50 60 Male 1. especially at a time when the need for family protection reduces significantly. Mortality Charges: These charges are deducted by canceling units on a monthly basis at the prevailing NAV.532 13.150 5. Higher of Sum Assured less all partial withdrawals made since attainment of 60 the life insured attained the age 58 or the fund value or the Years guaranteed fund value. .030 10.657 4. Charges: 1.660 2.732 Female 0.016 1.Age at time of Death 30 days to 1 year Age 1 Year to 60 Year Death Benefits Fund Value Only Higher of Sum Assured less all partial withdrawals made in 24 months preceeding the death of life insured or the fund value or On or After the guaranteed fund value.896 1. Rs100 for every additional partial withdrawal are charged.171 2. Partial Withdrawal Charges: 2 withdrawals in a policy year are free of charge.

which will be added to the Fund value at the end of the 10th policy year. reduced by the applicable partial withdrawals. non-participating plan. Eligibility:  Entry Age: Minimum: 30 days for 20 & 30 term 8 years for 10 terms 30 years for whole life Maximum: For 10 years term.  Death Benefits.50 years For 30 years term.60 years  Duration: Minimum: 10 years Maximum: 70 years (assuming whole life to be 100 years)  Maturity Age: 70 years for the term.60 years For 20 years term.  This plan has the option of seven-investment fund with the flexibility to allocate the premiums in varying proportions into the different Fund Option.  The plan offers further benefits in the form of additional units. which will be higher of the Fund value or Sum Assured.  There is high liquidity in the form of Partial Withdrawals and Surrender Benefits.  Top up facility is there.20.30 years .10.40 years For Whole Life. The minimum amount of top ups is 10000.Features:  The plan is a unit linked.

10 yrs or regular coverage paying period. Partial Withdrawal Options: Partial Withdrawals can be made after 3 policy years or when the life insured attains maturity. Guaranteed Addition: It is in the form of additional units. 30yrs term and Whole Life. while policy is in effect. Premium Investment: Premium collected is invested in Seven Investment Fund Options: 1. which is added to the fund value on the 10 th policy anniversary and on every 5th policy anniversary thereafter. The minimum partial withdrawal amount is Rs. Protector 3. 2. Maximiser Benefits: 1. Enhancer 5. whichever is later. 5yrs or regular coverage paying period. Magnifier 7. Creator 6.100 years for whole life  Premium Payment Term: For 10 years term. Builder 4.10000 . Assure 2. For 20 yrs.5yrs.3.

the surrender value is paid after the completion of the third policy anniversary. if the policy is surrendered within 3 years from inception. There is no surrender charge after 6 completed policy years. . However.3. when the life insured attains the age of 100. on maturity of the policy. 5. only the fund value shall be payable to the policy owner. the fund value is payable. Surrender Benefits: Policy offers the flexibility of surrendering the policy.  Between 5 to 60 years: Higher of the fund value or the sum assured less all applicable partial withdrawals made in the last 24 months preceding the death of the life insured. 4. Under the whole life option. if the need arises. Maturity Benefits: On maturity of the policy. Death Benefits:  Below 5 years: If the death of the life insured take place before 5 years.  60 years and Above: Higher of the fund value or the sum assured less all applicable partial withdrawals made since the life insured attained the age of 58. then fund value is payable and the policy will be terminated.

Premium Allocation Charges: These charges during the premium paying term are as under: Policy Year 1 2 or 3 Thereafter Charge 13% 4% 2% This charge on Top-up and underwriting extra is 2%. Critical Illness Women Rider 6. Critical Illness Plus Rider 5. The Annual Mortality charge per 1000 of the Sum at risk for sample ages are as follows: . Waiver of Premium Rider Charges: 1. Addition of Riders: Policy holder can customize the plan by adding any of the following 6 riders: 1. Critical Illness Rider 4. 7. 2. Accidental Death & Dismemberment Rider 2. Tax Benefits: Tax benefits on premium payment are governed by section 80C of the Income Tax Act 1961. Mortality Charge: This charge will be deducted by cancellation of units on a monthly basis at the prevailing NAV.6. Term Rider 3. Tax Exemptions on the amount received on maturity in the unfortunate event of death and the withdrawals are governed by section 10(10D).

Policy administration Charge: The charge is deducted by canceling units on a monthly basis at the prevailing NAV.10 and the minimum charge is 0.06 3.Age 25 35 45 55 65 Female 1. for Assure.363 3.25% p. Protector. The annual charge differs according to the Life Insurance Coverage Sum Assured and Life Insurance Coverage Paying Period.162 2. Surrender Charge: These charges are levied as the percentage of the annual life insurance coverage Premium payable. Magnifier and Maximiser Fund.  1.441 15.00 5. Charges are as follows: Policy Year Surrender Charge 1 2 3 4 5 6 7+ 30% 20% 15% 10% 8% 6% NIL .110 8. The charge is:  1% p.023 1.a.083 1. Fund Management Charge: This is charged by adjustment of the daily NAVs.92 Male 1. The maximum charge is 6.a.385 6.571 21. Builder and Enhancer Fund. 4. for Creator.

10000 from the second policy year.  Plan also has Top-up facility.  Plan has 7 fund options. It is worth more than Gold. Rider Premium Charge: If the riders are attached.  Premium paying term of 3 years with the flexibility to reduce premium up to Rs. Insurance plan. when rider coverage payment period equals the rider coverage benefit period.  Duration of plan is 8 years. Features:  It is a Unit Linked.  Free unlimited fund switching and premium redirection .6. an opportunity to grow investment for the medium term. Non-Participating. Gold Plus II Plan The plan gives much more than a good insurance cover.  Liquidity in the form of Partial Withdrawals and Surrender Benefits. this charge will be realized by cancellation of units on a monthly basis based on the equivalent monthly rider coverage premium payable.

Death Benefits: In the Unfortunate event of the Death of the Life Insured prior to the maturity date of the policy. Builder 4. the nominee gets the greater of (a) Fund Value (b) Sum Assured reduced for partial withdrawal as follows: . Magnifier 7.Eligibility:  Entry Age: 18 to 70 years. Maximiser Benefits: 1.50000  Minimum sum Assured: 5 x Annual Premium Premium Investment: Premium collected is allocated in varying proportions in seven investment fund options. Maturity Benefits: On maturity fund value will be paid to the policyholder. Enhancer 5. The seven Investment Funds available are: 1. Policyholder can switch between the fund options anytime during the tenure of the policy. Protector 3. Assure 2. Creator 6.  Minimum Premium: Rs. 2.

Tax Benefits: Policyholder is eligible for tax benefits U/S 80C and U/S 10(10D) of the Income Tax Act 1961.  U/S 80C.100000 is allowed as deduction from taxable income each year.Premium up to Rs. Policy Charges On Policy Policy Years 1 8% 2 4% 3 4% 4+ .  Once the Life Insured attains the age of 60. Premium Allocation Charges: It is deducted from premium when received and before allocation of units.  U/S 10(10D) . the Sum Assured payable on death is reduced by all partial withdrawals made from age 58 onwards. Charges: 1. 3. the sum assured payable on death is reduced by partial withdrawals made in the preceeding years. Before the life insured attains the age of 60.The Benefits received under plan are exempted from tax.

50000 . Builder and Enhancer  1..4 19.Assure. Protector.a. Policy Administration Charges: These charges are recovered by canceling units on a monthly basis proportionately from each investment fund.a. The charge is  1% p.4 19. Magnifier and Maximiser 3.Premium On top-up Premium 2% 2% 2% 2% 2.25% p.5% per annum of the fund value will be charged by adjustments of the daily unit price. – Creator. Fund Management Charges: Fund Management charge not exceeding 1. The annual Rate per 1000 of Sum Assured is: Policy Policy Years Charges Policy 1 2 3 4+ Administration 19.4 14.4 Charge * * An additional 5 per 1000 will be charged in the first 3 policy years only on any excess Sum Assured over Rs.

023 1.162 2. . The annual rate per 1000 of Sum Assured less fund value for sample ages are: Age 25 35 45 55 65 Female 1.4.441 15. These charges are taken by canceling units proportionately from each of the investment funds at that time.571 21.083 1. Mortality Charges: These charges are deducted on a monthly basis.385 6.92 Male 1.  The plan offers more protection of money at supremely low cost. Surrender Charges: These charges are applied when the policyholder surrender their policy in the first 3 policy years. The surrender charge as a percentage of the annual policy premium chosen at issue is Policy Charges Surrender Charges Policy Years 1 2 3 4+ 15% 12.  It provides the nominee with an increased sum assured and builds savings faster.363 3.110 8.06 5.5% 10% nil Supreme Life Plan Features:  The plan is a Unit Linked Insurance Plan.

 Provides with Supreme Accidental TPD (Total Permanent Disability).25000  The plan provides with 6 Investment Fund Options. Death Benefits: . Assure 2. Builder 4. 20.  Policyholder gets freedom to choose premium amount as low as Rs. are allowed. 25. 40 Years. Creator 6.  Partial Withdrawals. 35. Magnifier Benefits: 1. Premium Investment: Premium Collected is investment in six investment fund options. 30.  The plan is flexible as it provides the policyholder with Top-Up Premium facility to ensure faster growth in the Fund Value. Protector 3. after 3 years to meet liquidity needs of the policyholder Duration:  Policy Term: 10. These funds are: 1. 15.  Premium Payment Term: Policyholder can choose to pay premium at short or regular intervals. Enhancer 5.

00 20+ 3.3. 3.60 per 1000 Sum Assured p. The annual charge is Rs.25 4.25 3. pays the future premiums up to age 60. 720 on the first 1000 Sum Assured in all years i.e.50 lac  Co. Policy Administration Charges: These charges are deducted monthly by canceling units from the investment fund. The additional charges for years 1-5 are as follows: Term Band 1 Band 2 Band 3 10/15 4.a. The charge is 95% 2. . Death Benefits= Sum Assured + Savings  Increasing Death benefits i. Rs. Premium Allocation Charges: These charges are 5% for the 1st policy year and 2% for subsequent policy years.e. Two switches are free per annum.75 3.e. Switches & Redirection:  Policyholder gets flexibility to switch between the fund options. Accidental TPD Benefit:  Policyholder immediately gets the original sum assured up to Rs. Charges: 1. Mortality Charges: Charges are deducted monthly by canceling units from the associated fund option. Double Death Benefits i.00 3. Death Benefit= Sum Assured + 25% every 5th year 2.75 4.

Fund Management Charges: These charges are 1 – 1.  One Innovative Investment fund. .00.000  Minimum Sum Assured: 5xAnnual Premium.25% p. 2015.  Full Liquidity after three policy years to meet any cash needs.a. Premium Collected is invested in the Equity & Debt Market according to the preset Asset Allocation of the Platinum Plus Fund I. Eligibility:  Entry Age of Life Insured: 18 to 70 Years. for all associated funds.  Minimum Annual Premium: Rs. Platinum Plus Plan Features:  This plan is a Unit Linked. Insurance plan.  A policy term of 10 years.  Unique Guaranteed Maturity Unit Price representing the highest unit plus price of Platinum Plus Fund I recorded on 88 reset dates starting on March 17. 1. namely Platinum Plus Fund I.4.  A premium paying term of 3 years. Non-Participating. 2008 and ending on June 15.

Premium Allocation Charges: 10% of premium in the first year and 4% of premium in subsequent years.Benefits: 1.100000 is allowed as deduction from taxable income each year.Premium up to Rs. Surrender Benefits  Full liquidity after 3 policy years –100% Fund Value* 4. Charges: 1. 10 on the first Reset Date  At maturity. is the highest Unit Price recorded on 88 Reset Dates 2. Guaranteed Maturity Unit Price  Minimum of Rs. Maturity Benefits  Number of units multiplied by higher of Guaranteed Maturity Unit Price or prevailing Unit Price at maturity 3.  U/S 10(10D) .Benefits from the plan are exempted from tax. . Death Benefits  Higher of Fund Value (as per the then prevailing unit price) or Sum Assured (less applicable partial withdrawals) 5. Tax Benefits  U/S 80C.

385 6.162 2.363 3. 2 and 3 respectively. .060 5. for Platinum Plus Fund I. is 16%.110 8.571 21.6 per 1000 Sum Assured in years 1 to 3 only. from Platinum Plus I.2. Mortality Charges: Charges are deducted monthly by canceling units from the associated investment funds.083 1. Fund Management Charges: 1.50% p.00% p. if required.a. The annual charge is Rs.441 15. 13% and 10% for policy year 1. 4. 720 on the first 1000 Sum Assured in all years plus Rs.50%-2.023 1. The Annual Charges for sample ages are as follows: Attained Age 25 35 45 55 65 Female 1. Surrender Charges: This charge. Policy Administration Charges: These charges are deducted monthly by canceling units from the investment fund Assure first and then.00%-1.a.920 Male 1. as a percentage of the annual premium at issue. 3. for Assure & 1.

Individual Enhancer 7. Individual Multiplier 10. These funds are designed to cater to a variety of needs of people who are from different life stages. Revival Charge: The charge for policy revival is Rs. Individual Protector 2. Individual Life Maximiser 8.6. BSLI offers a broad range of 12 funds. Individual Magnifier 9. Individual Balancer 4. 100-1000 per revival FUNDS BY BSLI Birla Sun Life Insurance. Pension Nourish 11. . each having differing asset allocations. Pension Growth A new fund named Platinum Plus Fund I is also added in this list of funds. Pension Enrich 12. a leading Life Insurance company. Individual Assure 3. 12 funds offered are: 1. Individual Builder 5. Individual Creator 6. offers its clients with a long range of Funds.

at a high level of safety and liquidity . The most important thing to be noticed here is that this portfolio is decided. vary according to the needs and fund requirements of policyholders.Asset Allocation is decided by the Fund Managers of the company. These fund managers continuously tracks the movements of volatile market and combine this volatility with the fund requirements of the policyholders. Individual Assure Objective: The primary objective of this fund is to provide Capital Protection. based on the regulations of IRDA. Performances of these funds are rated by the rating agency-CRISIL. All the 12 funds by BSLI are described below along with their respective Asset Allocations. Accordingly he decides allocation of assets in 5 major investment options:  Government Securities  Corporate Debt  Securitized Debt  Equity  Money Market Instruments Proportion of allocating the fund in these options.

through judicious investments in high quality short-term debt.97% TOTAL 100.97% Individual Balancer Corporate Debt . Asset Allocation: SECURITIES HOLDING Corporate Debt 59.00% HOLDING 59.00% TOTAL 17. Strategy: Generate better return with low level of risk through investment into fixed interest securities having short-term maturity profile.57% Money Market Instruments 100.57% Money Market Instruments 17.

maintaining medium term duration profile of the portfolio.Objective: The objective of this fund is to achieve value creation of the policyholder at an average risk level over medium to long-term period. Strategy: The strategy is to invest predominantly in debt securities with an additional exposure to equity. Asset Allocation: SECURITIES HOLDINGS Government Securities 10.67% Corporate Debt 39.85% TOTAL 100.04% Equity 23.44% Money Market Instruments 26.00% Pension Growth .

00% .Objective: This fund option is designed to build the capital and to generate better returns at moderate level of risk.41% Equity 18. over a medium or long-term period through a balance of investment in equity and debt. Asset Allocation: SECURITIES HOLDINGS Government Securities 13.63% Money Market Instruments TOTAL 22.06% 100.90% Corporate Debt 45. Strategy: Generate better return with moderate level of risk through active management of fixed income portfolio and focus on creating long term equity portfolio which will enhance yield of composite portfolio with low level of risk appetite.

57% TOTAL 100. Asset Allocation: SECURITIES HOLDINGS Government Securities 14.35% Corporate Debt 39.40% Equity 32. Strategy: To earn capital appreciation by maintaining diversified equity portfolio and seek to earn regular return on fixed income portfolio by active management resulting in wealth creation for policyholders.00% .69% Money Market Instruments 13. thereby providing a good balance between risk and return.Pension Enrich Objective: Helps to grow the capital through enhanced returns over a medium to long-term period through investments in equity and debt instruments.

I have learnt so many things. which provides extra benefits to the customers. I have studied various insurance plans covered under BSLI. BSLI also gives various Riders. Insurance sector today playing a major role in everyone’s life lot more than ever before life currently there is a comprehensive range of products covering each type of policy available in the market. and i got insight into the insurance world. And i came to know about . and their features.CONCLUSION My training was a very enriching experience for me.

i made them aware about various plans. Birla Sun Life Insurance (BSLI). etc. RECOMMENDATIONS . While most insurance plans block money for certain period of time. like sales procedure. BSLI has painstakingly built its rural infrastructure to create a cost-effective distribution network across the country. My training gave me corporate exposure.the pioneering features of BSLI. and their respective features. a BSLI plan gives the double benefit of life insurance along with easy liquidity through lump sum cash. I learnt to deal with customers. one of the largest private life insurers. even helped them to select the best plan as per their requirements. Over the last four years. and helped in improving my communication skills. is gearing itself to take advantage of the vast rural opportunity that has opened up as a result of the revised definition of rural areas by the IRDA. SIP.

com 7.google. 2.PLUSII PLAN/ Ver 01/04/10 5. and more help line plans 6. www.com . 5. Competition from public sector and foreign banks remains a key challenge for private sector banks. Company brochure 4. Birla Sun Life Insurance Ltd should have proper division of departments under heads. www.com/LifeInsurance Dated 13/7/10 Time 4:00 3. They should provide more information to the customer so that they become more aware about insurance BIBLIOGRAPHY 1. www. Company brochure/ Classic Life Premier/ Ver 1/6/10 6. Company brochure/ GOLD.birlasunlife. They need to reorient their staff and effectively utilize technology platforms to retain customers. 4.com Dated 13/7/10 Time 3:30 2. www.1. Birla Sun Life Insurance Ltd should have more pension plans. They have to update their portfolio timely.wikipedia. Birla Sun Life Insurance Ltd should have more children plans. 3.Paisawaisa.

ANNEXURE 1. 50.000-100. Yes B.000 D. Below 50. No 4. How much you earn annually? A. 50. Above 150000 3. Do you know about BSLI? A. 000-1.No 2.Yes B.000 C. Do you make investments? A. Do you know about insurance? A.No . Yes B.100.000 B.

Real estate D.5. Where would you like to invest? A.Stocks C. Online C.Credit card 7.Insurance . Personal house B. Other 6. What assets do you own? A. Personal Reference D. How did you came to know about it? A Newspapers B. Mutual Fund B.Car C.

Excellent . What would u like to insure? A. Average B.8.Life insurance 9.Classic Life Premier 10. How do you rate our plans? A.Saral Jeevan B.Gold Plus II C. Which insurance plan of BSLI are you interested in? A. Good C. Vehicle B.Platinum Plus D.